Knorr-bremse Ag · XETR:KBX
Knorr-bremse — Q1 2020 Earnings Presentation
22 slides from Knorr-bremse's earnings presentation, May 28, 2020
Slide 1: Financial Results Q1/20
FINANCIAL RESULTS Q1/20 BERND EULITZ I CEO DR. PETER LAIER I HEAD OF CVS DR. JÜRGEN WILDER I HEAD OF RVS MAY 28, 2020 1
Slide 2: Highlights Q1/20
HIGHLIGHTS Q1/20 Q1/20: Solid financial results despite impact from COVID-19 Early & fast reaction to COVID-19 already end of January with related actions Growing AM supported development in Q1/20 RVS: No project cancellations; customer plants impacted; growing AM share CVS: Revenue developments bet
Slide 3: Q1/20 - Margin Resilience in a Challenging Environment
Q1/20 - MARGIN RESILIENCE IN A CHALLENGING ENVIRONMENT ORDER INTAKE € 892m -2.1% yoy € 736m EBITDA € 1.59bn -13.0% yoy MARGIN -16.1% yoy 17.8% PY: 19.0% REVENUE ORDER BOOK € 1.63bn -7.3% yoy 14.6% € 4.65bn 20.9% EBITDA -1.0% yoy MARGIN EBITDA MARGIN Knorr-Bremse AG 3
Slide 4: Q1/20: Firm Order Book, but COVID-19 Impact on Order Intake
Q1/20: FIRM ORDER BOOK, BUT COVID-19 IMPACT ON ORDER INTAKE Order intake Order book €m By type €m 1.08 0.98 -1,0% -16.1% 4.700,5 4.652,5 1,893.2 0.9 +31.0 1,588.0 -337.1 M&A impact -17.8% Hitachi Steering Business € +20m (Q1/20) Org. Powertech decrease € -19m (Q1/19) Q1/19 Organic M&A net FX Q1/20 3
Slide 5: Only Moderate Revenue Decline and Fast Recovery in China
ONLY MODERATE REVENUE DECLINE AND FAST RECOVERY IN CHINA Revenue €m By type By region -7.3% 1,755.3 28.0 -13.6% -0,1 +9,0 1,627.5 24.2 SA M&A impact 477.4 -136.7 -7.9% -0.1% Asia/ 476.9 Org. decrease Hitachi Steering Business Pacific € +22m (Q1/20) Powertech 406.5 -13.2% 352.9 NA € -22m (Q1/19) 843.
Slide 6: Limited Decrease of Margin Underpins Resilience of KB
LIMITED DECREASE OF MARGIN UNDERPINS RESILIENCE OF KB EBITDA €m Margin Development of EBITDA margin in Q1/20 19.0% ▪ Operating leverage burdened by lower revenue and 17.8% mitigation costs ▪ Early and fast measures taken to mitigate COVID-19 impact on employees, customers and KB results 333.7 ▪ Reve
Slide 7: FCF Impacted by COVID-19 Induced Slowdown
FCF IMPACTED BY COVID-19 INDUCED SLOWDOWN FCF1 & OCF CapEx1 NWC Op. ROCE (annualized) €m FCF OCF €m % of sales €m Scope of days % 58.7 58.5 5.0% 32.2% 89.1 1,144.1 3.5% 26.7% 32.1 81.0 1,058.6 3.5 62.2 -60.8 Q1/19 Q1/20 Q1/19 Q1/20 31.3.19 31.3.20 31.3.19 31.3.20 ▪ FCF decrease driven by ▪ Mgt. prog
Slide 8: RVS: Resilient Order Book Despite COVID-19
RVS: RESILIENT ORDER BOOK DESPITE COVID-19 Order intake Order book €m By type Order book increased by 6.6%yoy 1.14 0.98 6.6% ▪ Order book increase yoy by end of March, 3,555.1 overcompensating the Powertech divestment -15.5% 3,336.1 1,035.0 ▪ NA: Freight, locomotives and AM decreased due to lower tr
Slide 9: RVS: Solid Margin in Difficult Business Environment
RVS: SOLID MARGIN IN DIFFICULT BUSINESS ENVIRONMENT Revenue EBITDA / EBITDA margin €m By type Organic revenue flat yoy in Q1/20 ▪ EU: generally higher, strongly driven by AM ▪ APAC: lower due to OE and AM, partially 21.9% compensated by increase in pass cars (mainly India) 20.9% and Metro. China: ov
Slide 10: CVS: OI Decrease in Line with Truck Market Development
CVS: OI DECREASE IN LINE WITH TRUCK MARKET DEVELOPMENT Order intake Order book €m By type Good Book to Bill rate despite COVID-19 1.02 0.97 ▪ EU/ NA: Pre-COVID-19 normalization of market demand after years of strong growth in line with expectations; First impact of COVID-19 in March 2020 -16.8% 859.
Slide 11: CVS: Revenue Development in All Regions Better than TPR
CVS: REVENUE DEVELOPMENT IN ALL REGIONS BETTER THAN TPR Revenue EBITDA / EBITDA margin €m By type Revenue impacted by weaker economy and COVID-19, but AM increase and better than TPR (-27% yoy) in Q1/20 Development yoy in Q1/20 NA EU APAC 16.6% TPR (Class 8) -31% -33% -25% 14.6% -13.0% CVS (Revenue)
Slide 12: Impact by COVID-19
IMPACT BY COVID-19 Knorr-Bremse AG 12
Slide 13: RVS - Positive Long Term Trend in Rail is Unchanged
RVS - POSITIVE LONG TERM TREND IN RAIL IS UNCHANGED Strong order book with more than € 1.2bn in manufacturing projects that provide OE business long-term revenue visibility and ensure industrial activity for the period 2020-2024. Customer commitment to the continuity of ongoing manufacturing project
Slide 14: RVS - Impact by COVID-19
RVS - IMPACT BY COVID-19 OWN OPERATIONS COUNTER MEASURES • Early and strong health measures implemented globally • >250 cost and cash measures defined and partly to safeguard employees implemented • All plants are open again after selective short term • China: limited efficiency measures necessary c
Slide 15: CVS – Content per Vehicle and AM Mitigated COVID-19 Impact
CVS – CONTENT PER VEHICLE AND AM MITIGATED COVID-19 IMPACT 1) Cautious regarding the demand recovery even after the end of production OE business lockdowns 2) U.S. and Europe demand would not recover similar to China 3) The new normal in the U.S. and Europe could be 20% below previous levels. ▪ Near
Slide 16: CVS – High Availability of Delivery for Customers Ensured
CVS – HIGH AVAILABILITY OF DELIVERY FOR CUSTOMERS ENSURED OWN OPERATIONS COUNTER MEASURES • Early and strong health measures implemented globally to • Large global cost adaption and cash program started safeguard employees early • Only a few plants closed for some days, mandated by • China: early me
Slide 17: COVID-19 Measures – Early Start and Fast Implementation
COVID-19 MEASURES – EARLY START AND FAST IMPLEMENTATION High flexibility of cost and cash structure ▪ Cost adaption and cash measures close to € 200m in implementation ▪ Proven track record driving efficiency and cost adaption in the past Gross cash ▪ Potential in NWC and capex, if needed ▪ Gross ca
Slide 18: Outlook - 2020 Will Prove Our Resilient Business Model
OUTLOOK1 - 2020 WILL PROVE OUR RESILIENT BUSINESS MODEL ▪ Measures implemented to secure employees’ health ▪ Cost adaption and cash measures defined and in implementation ▪ € 2.5bn cash provide enough financial stability and flexibility ▪ Strong order book is a positive indication for the coming mon
Slide 19: Q&A / Backup
Q&A / BACKUP Knorr-Bremse AG 19
Slide 20: Financial Calendar
FINANCIAL CALENDAR Upcoming events Event Date Location Investor meetings (conference calls) 29.05.20 Munich dbAccess Berlin Conference 2020 (virtual) 03./04.06.20 Berlin Annual General Meeting 2020 (virtual) 30.06.20 Munich Release Half Year/Second Quarter 2020 Report 10.09.20 Munich Release Nine Mo
Slide 21: Investor Relations Contact
INVESTOR RELATIONS CONTACT Andreas Spitzauer Phone: +49 89 3547 182310 Mobile: +49 175 5281320 Email: Andreas.Spitzauer@knorr-bremse.com Sophia Kursawe Phone: +49 89 3547 187311 Mobile: +49 151 62330709 Email: Sophia.Kursawe@knorr-bremse.com … Knorr-Bremse AG 21
Slide 22: Disclaimer
DISCLAIMER IMPORTANT NOTICE This presentation has been prepared for information and background purposes only. It does not constitute or form part of, and should not be construed as, an offer of, a solicitation of an offer to buy, or an invitation to subscribe for, underwrite or otherwise acquire, an