Renk Group Ag · XETR:R3NK
Renk — Q1 2024 Earnings Presentation
29 slides from Renk's earnings presentation, May 15, 2024
Slide 1: Trusted Partner – Q1 2024 Investor & Analyst Presentation
Trusted Partner Q1 2024 Investor & Analyst Presentation 15 May 2024
Slide 2: Disclaimer
Disclaimer By accessing this presentation, you agree to be bound by the following limitations. 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
Slide 3: Experienced management team with strong track record
Introduction Experienced management team with strong track record Today’s speakers Susanne Christian Dr. Alexander Wiegand Schulz Sagel CEO CFO Board Member 2 Trusted Partner
Slide 4: 1. RENK introduction
1. RENK introduction 2. Update on Q1-24 performance 3. Summary and outlook Trusted Partner
Slide 5: RENK – Leading provider of drive technologies with high aftermarket share
RENK introduction RENK – Leading provider of drive technologies with high aftermarket share Growth markets Global leader Strong financials ~10% #1 Player €926m 2022A-2027E in mission-critical 2023A Total addressable market CAGR(1) drive technologies(4) Revenue ~€4.6bn ~75% 16.2% Dec-2023 Global mark
Slide 6: 2. Update on Q1-24 performance
1. RENK introduction 2. Update on Q1-24 performance 3. Summary and outlook Trusted Partner
Slide 7: Executive summary Q1 2024
Update on Q1-24 performance Total order backlog at a high level (€4.7bn), Order intake strong pipeline Marine & Conversion of improved order intake accelerates Industry (M&I) revenue growth, higher Navy-share margin accretive Executive summary Q1 2024 Vehicle Mobility Operational improvement measure
Slide 8: Total order backlog stands at 4.8x annual revenues
Update on Q1-24 performance Total order backlog stands at 4.8x annual revenues Total order backlog (Mar-24), €bn Commentary LTM revenue 1 Fixed order backlog: Stable despite 1.8x 0.8x 2.2x 4.8x fewer large order wins in VMS. coverage(1) Encouraging order pipeline, including a large contract win in
Slide 9: Strong revenue growth in defense and aftermarket-related areas
Update on Q1-24 performance Strong revenue growth in defense and aftermarket-related areas YoY growth Book-to-bill ratio(1) Order intake, €m Revenue, €m Fixed order backlog(2), €m Commentary 2.4x 0.9x Temporarily lower order intake and book-to- bill below 1.0x due to fewer large order wins in VMS
Slide 10: Gross margin improvement drives EBIT margin expansion
Update on Q1-24 performance YoY growth Adj. gross profit margin Gross margin improvement drives EBIT margin expansion Adj. EBIT margin Net debt / LTM Adj. EBITDA(3) Adj. gross profit, €m Adj. EBIT(1), €m Net debt(2), €m Commentary 24.8% 25.7% 9.9% 11.7% 2.4x 2.3x Translation of strong revenue grow
Slide 11: VMS: Accelerating revenue growth on operational improvement
Update on Q1-24 performance VMS: Accelerating revenue growth on operational improvement YoY growth Adj. EBIT margin Segment financials, €m Commentary Order intake Revenue Adj. EBIT(1) Order Intake in VMS significantly lower compared to previous year due to two large 15.4% 14.5% order wins in Q1-20
Slide 12: M&I: Buoyant Navy market drives growth and margin improvement
Update on Q1-24 performance M&I: Buoyant Navy market drives growth and margin improvement YoY growth Adj. EBIT margin Segment financials, €m Commentary Order intake Revenue Adj. EBIT(1) Book-to-bill remains at a high level of 1.24x driven by continued strong order intake in -6.3% 6.1% our Navy bus
Slide 13: Slide Bearings: Aftermarket growth and further EBIT margin expansion
Update on Q1-24 performance Slide Bearings: Aftermarket growth and further EBIT margin expansion YoY growth Adj. EBIT margin Segment financials, €m Commentary Order intake Revenue Adj. EBIT(1) Significant growth in order intake of 21.5% YoY due to marine bearings & aftermarket 13.1% 16.9% Book-t
Slide 14: Minor adjustments mainly relating to capital market readiness and refinancing
Update on Q1-24 performance Minor adjustments mainly relating to capital market readiness and refinancing For the period, €m Commentary Q1-23 Q1-24 1 Cost incurred in the context of achieving capital market readiness as listing on Operating profit 6.7 11.9 Frankfurt Stock Exchange was completed duri
Slide 15: Reduction of NWC ratio to 25.4%
Update on Q1-24 performance Reduction of NWC ratio to 25.4% Customer receivables(1) Inventories Net working capital, €m Trade payables Prepayments received(2) Commentary NWC as a percentage of sales reduced by % of LTM revenue 26.0% 26.8% 25.4% 140bps, contrary to normal seasonal patterns Custom
Slide 16: Solid operating cash flow and positive FCF despite refinancing costs
Update on Q1-24 performance Solid operating cash flow and positive FCF despite refinancing costs Key cash flow items, €m Commentary Q1-23 Q1-24 1 Q1 2023 tax payments include an Adj. EBITDA(1) 26.7 35.5 aperiodic real estate tax payment (€2.8m) Adjustments(2) (1.2) (5.0) 2 Slight reduction of net
Slide 17: 3. Summary and outlook
1. RENK introduction 2. Update on Q1-24 performance 3. Summary and outlook Trusted Partner
Slide 18: Guidance for 2024 confirmed
Guidance Guidance for 2024 confirmed 2023A 2024 Guidance Medium-term target Guidance confirmed! Revenue / €926m €1,000-1,100m ~10% CAGR growth Guidance confirmed! Adj. EBIT(1) 16.2% 16-18% ~19-20% margin (adj. EBIT) (€150m) (~€160-190m) (~€250m) 17 Source: Company information Further footnotes summa
Slide 19: Priorities and key challenges for 2024
Update on Q1-24 performance Output Accelerate execution of five-year order backlog and increase VMS revenue growth, especially in Augsburg Operational Develop RENK America to the next level to sustain Excellence performance: Record order backlog with significant Americas commercial wins in FY-23 to
Slide 20: Questions & Answers? Financial Calendar
Financial Calendar Q2/Q3 2024 May 2024: • Q1 2024 Quarterly Statement (15 May) • Hauck & Aufhäuser Stockpicker Summit(16/17 May) • Berenberg Conference NYC (21 May) Q & A SESSION • dbAccess Conference Dt. Bank, Frankfurt (22/23 May) June 2024: Questions & • Stockholm Roadshow (5 June) • JPM Capital
Slide 21: Your contact
TRUSTED PARTNER Your contact RENK Group AG Goegginger Straße 73 Investor Relations D-86159 Augsburg Germany www.renk.com Ingo Schachel, Head of IR Phone: +49 821 5700 1439 E-Mail: investors@renk.com Management Board: Susanne Wiegand (Chairperson), Dr. Alexander Sagel, Christian Schulz www.ir.renk.co
Slide 22: Appendix
APPENDIX 21 Trusted Partner
Slide 23: Income statement
Financial Appendix Income statement For the period, €m Q1 2023 Q1 2024 Revenue 193.9 237.7 Cost of sales excl. PPA(1) (145.9) (176.7) Gross profit before PPA 48.0 61.0 Other operating income 3.7 4.9 Net allowances on financial assets 0.0 0.4 Distribution expenses (13.3) (15.2) General administrative
Slide 24: Balance sheet – Total assets
Financial Appendix Balance sheet – Total assets As of, €m Dec 31, 2023 Mar 31, 2024 Intangible assets 383.9 379.3 Property, plant and equipment 319.0 319.7 Other financial investments 9.4 4.9 Deferred tax assets 18.2 21.4 Other non-current financial assets 0.4 0.3 Other non-current receivables 4.8 5
Slide 25: Balance sheet – Total equity and liabilities
Financial Appendix Balance sheet – Total equity and liabilities As of, €m Dec 31, 2023 Mar 31, 2024 Share capital 100.0 100.0 Capital reserves 223.8 225.8 Retained earnings 57.5 54.4 Cumulative other comprehensive income 22.5 23.9 Equity attributable to shareholders of RENK AG 403.8 404.1 Equity att
Slide 26: Cash flow statement
Financial Appendix Cash flow statement For the period, €m Q1 2023 Q1 2024 Cash and cash equivalents at beginning of period 158.7 102.2 Profit (+) / loss(-) before tax (3.9) 3.8 Income taxes paid (6.2) (4.9) Depreciation and amortization (incl. impairments on investments) 18.7 18.7 Change in pen
Slide 27: Endnotes (1/3)
Endnotes (1/3) p.4 (1) Market CAGR of ~10% calculated as a blended rate by weighting 2022-27 CAGRs of total addressable market for defense (12.9% as per Renaissance market study) and civil (4.7% as per Roland Berger market study) with the defense / civil revenue split of around 70% / 30% in 2022A. G
Slide 28: Endnotes (2/3)
Endnotes (2/3) p.9 (1) Adj. EBIT is defined as operating profit before the PPA depreciation and amortization as well as income / losses from PPA asset disposals and adjusted for certain items which management considers to be exceptional or non-recurring in nature. Adj. EBIT margin are defined as adj
Slide 29: Endnotes (3/3)
Endnotes (3/3) p.22 (1) Not part of the IAS 34 financial statement. p.25 (1) Previous year's value before final purchase price adjustment (2) The disclosure for interest was made on a net basis in the previous year 28 Trusted Partner