Renk Group Ag · XETR:R3NK
Renk — Q3 2024 Earnings Presentation
30 slides from Renk's earnings presentation, Nov 13, 2024
Slide 1: Trusted Partner
Trusted Partner Q3 2024 Investor & Analyst Presentation 13 November 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 Anja Dr. Alexander Wiegand Mänz-Siebje Schulz Sagel CEO CFO CFO COO 2 Trusted Partner
Slide 4: 1. RENK introduction 2. Update on Q3-24 performance 3. Summary and outlook
1. RENK introduction 2. Update on Q3-24 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 ~€4.8bn #1 Player €1,051m Sept-24 in mission-critical LTM Revenue Sept-24 Total order backlog(1) drive technologies(2) 1.1x ~75% 19.3% Global market presence 9M
Slide 6: 1. RENK introduction 2. Update on Q3-24 performance 3. Summary and outlook
1. RENK introduction 2. Update on Q3-24 performance 3. Summary and outlook Trusted Partner
Slide 7: Executive summary
Update on Q3-24 performance Strong order • 9M book-to-bill 1.1x, strong Q4 order intake expected intake/pipeline • Market growth: €9bn order pipeline beyond soft backlog • Revenue growth accelerated further in the VMS Record Q3 segment, especially driven by the Augsburg plant revenue level • M&I act
Slide 8: Total order backlog at >4x annual revenues – strong market demand beyond total order backlog
Update on Q3-24 performance Total order backlog at >4x annual revenues – strong market demand beyond total order backlog Total order backlog (Sep-24), €bn Commentary LTM revenue 1 Fixed order backlog: Increased by €34m 1.7x 0.6x 2.3x 4.5x vs. Dec-2023. Order pipeline remains coverage(1) encouraging
Slide 9: Strong revenue growth driven by the VMS segment and aftermarket
Update on Q3-24 performance Strong revenue growth driven by the VMS segment and aftermarket YoY growth Book-to-bill ratio(1) Large order(s) Order intake, €m Revenue, €m Fixed order backlog(2), €m Commentary (Q3) 1.4x 1.1x 1.1x 0.9x Q3 order intake at a healthy level despite absence of large order
Slide 10: Solid adj. EBIT, further improvement expected in Q4
Update on Q3-24 performance YoY growth Adj. gross profit margin Solid adj. EBIT, further improvement expected in Q4 Adj. EBIT margin Net debt / LTM Adj. EBITDA(4) Adj. EBIT margin without one-time warranty provision Adj. gross profit(1), €m Adj. EBIT(2), €m Net debt(3), €m Commentary (Q3) 28.5% 27.9
Slide 11: VMS: Accelerated revenue growth, aftermarket share increased further
Update on Q3-24 performance YoY growth Adj. EBIT margin without VMS: Accelerated revenue growth, aftermarket share increased further one-time warranty provision Large order(s) Segment financials, €m Commentary (Q3) Order intake Revenue Adj. EBIT(1) Strong base order level in Q3 2024, total order i
Slide 12: M&I: Activity and margin levels remain high with improved mix
Update on Q3-24 performance M&I: Activity and margin levels remain high with improved mix YoY growth Adj. EBIT margin Segment financials, €m Commentary (Q3) Order intake Revenue Adj. EBIT(1) Q3 revenue level remains high, albeit significantly below the very high prior 8.0% 10.0% 19.9% 9.9% year Q3
Slide 13: Slide Bearings: On a sustainable growth path
Update on Q3-24 performance Slide Bearings: On a sustainable growth path YoY growth Adj. EBIT margin Segment financials, €m Commentary (Q3) Order intake Revenue Adj. EBIT(1) Order intake with strong growth and book- to-bill at 1.2x 15.1% 17.6% 16.7% 16.8% Revenue growth following the sustainable
Slide 14: Adjustments mainly related to PPA, refinancing costs and RAMup
Update on Q3-24 performance Adjustments mainly related to PPA, refinancing costs and RAMup For the period, €m Commentary 9M-23 9M-24 Q3-23 Q3-24 1 Adjustments are mainly attributable to effects of purchase price allocation, which Operating profit 57.0 58.3 25.1 22.7 mainly relate to depreciation and
Slide 15: NWC ratio expected to decline in the mid-term
Update on Q3-24 performance NWC ratio expected to decline in the mid-term Customer receivables(1) Inventories Net working capital, €m Trade payables Prepayments received(2) Commentary NWC as a percentage of sales increased by % of LTM revenue 26.0% 26.8% 28.7% 190bps − Customer receivables and inv
Slide 16: Slightly positive cash flow in Q3 despite one-off capex
Update on Q3-24 performance Slightly positive cash flow in Q3 despite one-off capex Key cash flow items, €m Commentary 9M-23 9M-24 Q3-23 Q3-24 1 Q1 2023 tax payments include an aperiodic real estate tax payment (€2.8m) Adj. EBITDA(1) 127.2 136.2 49.0 51.6 2 Cash outflow for net working capital Adj
Slide 17: 1. RENK introduction 2. Update on Q3-24 performance 3. Summary and outlook
1. RENK introduction 2. Update on Q3-24 performance 3. Summary and outlook Trusted Partner
Slide 18: We reiterate our guidance (narrowed to the upper end with Q2 results in August)
Guidance We reiterate our guidance (narrowed to the upper end with Q2 results in August) 2023A 2024 Guidance Medium-term target Revenue / growth €926m ~€1,100m ~15% CAGR Adj. EBIT(1) €150m ~€175m-190m ~€300m 17 Trusted Partner
Slide 19: Priorities and key roadmap challenges for Q4 2024
Update on Q3-24 performance Output increase • Further acceleration of output revenue growth, VTA Augsburg especially at VMS Augsburg RENK America • Stabilize RENK America on higher performance level: Supply chain, operating model, leadership structures Growth & • Expand innovation pipeline, e.g. hyb
Slide 20: Financial Calendar Nov 2024 – H1 2025
FINANCIAL CALENDAR Nov 2024 – H1 2025 November 2024: March 2025: • Virtual Roadshow Toronto • FY 2024 Results (26 March) • Roadshow Paris • Deutsche Börse Eigenkapitalforum, Frankfurt May 2025: • Q1 2025 Quarterly Statement (14 May) December 2024: • Berenberg European Conference 2024, Pennyhill / Lo
Slide 21: Q&A Session
TRUSTED PARTNER Q&A Session RENK Group / Company presentation / March 2023
Slide 22: Your contact
TRUSTED PARTNER Your contact RENK Group AG Goegginger Straße 73 Investor Relations D-86159 Augsburg Germany Ingo Schachel, Head of IR www.renk.com Phone: +49 821 5700 1439 E-Mail: investors@renk.com Management Board: Susanne Wiegand (Chairman), Anja Mänz-Siebje, www.ir.renk.com Dr. Alexander Sagel S
Slide 23: Appendix
APPENDIX 22 Trusted Partner
Slide 24: Income statement
Financial Appendix Income statement For the period, €m Q3 2023 Q3 2024 Revenue 652.7 778.3 Cost of sales (504.1) (597.2) Gross profit 148.6 181.1 Other operating income 9.1 3.1 Net allowances on financial assets (0.2) 0.3 Distribution expenses (41.5) (45.5) General and administrative expenses (49.2)
Slide 25: Balance sheet – Total assets
Financial Appendix Balance sheet – Total assets As of, €m Dec 31, 2023 Sep 30, 2024 Intangible assets 383.9 360.1 Property, plant and equipment 319.0 316.4 Other and financial investments 9.4 5.1 Deferred tax assets 18.2 23.1 Other non-current financial assets 0.4 0.0 Other non-current receivables 4
Slide 26: Balance sheet – Total equity and liabilities
Financial Appendix Balance sheet – Total equity and liabilities As of, €m Dec 31, 2023 Sep 30, 2024 Share capital (subscribed capital in previous year) 100.0 100.0 Capital reserves 223.8 227.6 Retained earnings 57.6 35.5 Cumulative other comprehensive income 22.5 24.9 Equity attributable to sharehol
Slide 27: Cash flow statement
Financial Appendix Cash flow statement For the period, €m Q3 2023 Q3 2024 Cash and cash equivalents at beginning of reporting period 158.7 102.2 Profit / loss before tax (including income attributable to non-controlling interests) 27.7* 24.8 Income tax payments (22.3) (18.4) Depreciation, amortizati
Slide 28: Endnotes (1/3)
Endnotes (1/3) p.4 (1) Total order backlog comprised of fixed order backlog, frame order backlog and soft order backlog; Fixed order backlog represents with respect to binding customer contracts and purchase orders concluded and/or received the portion of the associated transaction price for which t
Slide 29: Endnotes (2/3)
Endnotes (2/3) p.9 (1) Adjusted gross profit is defined as gross profit before PPA depreciation and certain items which management considers to be exceptional or non-recurring in nature. Adj. Gross Profit margin is defined as adjusted gross profit divided by revenue. (2) Adj. EBIT is defined as oper
Slide 30: Endnotes (3/3)
Endnotes (3/3) p.23 * The figures have been adjusted. For explanations of the changes for the first nine months of financial year 2023, see 3rd quarter report section 1 General principles (IAS 8) p.26 (1) Previous year's value before final purchase price adjustment (2) Financial result including div