SAF-Holland SE · XETR:SFQ
SAF-Holland — FY2016 Earnings Presentation
28 slides from SAF-Holland's earnings presentation, Mar 17, 2017
Slide 1: Strategy 2020 – Annual Financial Results 2016
Strategy 2020 Annual Financial Results 2016 Detlef Borghardt, CEO March 17, 2017
Slide 2: Agenda
Agenda 1 Highlights Business Year 2016 3 2 Market Trend 6 3 Financial information 8 4 Outlook 22 2
Slide 3: Highlights of the business year 2016
Highlights of the business year 2016 Sales and profitability • SAFH successfully evaded many of the effects of the weak environment in several of the transportation markets worldwide, esp. in the Americas • Overall organic sales in 2016 were almost stable at PY’s level (-0.1% yoy); after organic sal
Slide 4: Highlights of the business year 2016
Highlights of the business year 2016 One-time effects • One-time transaction costs totaled EUR 4.1 mn, EUR 3.4 mn thereof for Haldex • Overall EUR 0.6 mn positive impact of the Haldex transaction in the finance result (shares fully sold in Q4) • EUR 1.6 mn write-downs/warranties in China (not adjust
Slide 5: Agenda
Agenda 1 Highlights Business Year 2016 3 2 Market Trend 6 3 Financial information 8 4 Outlook 22 5
Slide 6: Truck and trailer market trends
Truck and trailer market trends Global trailer forecast in thousand Change in Change Share in total 2014 2015 2016 % yoy 2017 in % yoy sales FY16* ACT N.A. Trailer Shipments1) 328 385 358 -7.0 324 -9.5 North America Approx. 20% FTR N.A. Trailer Build2) 292 331 310 -6.3 282 -9.0 Change in Change Shar
Slide 7: Agenda
Agenda 1 Highlights Business Year 2016 3 2 Market Trend 6 3 Financial information 8 4 Outlook 22 7
Slide 8: Executive Summary
Executive Summary Stable organic sales in 2016; positive trend in last two quarters • Group sales in 2016 decreased by 1.8% to € 1,042.0 mn (1,060.7), organically only -0.1%; 1 • Translational FX effects burden (€ -12.7 mn), Aerway divestiture impact € -6.8 mn • In Q4/16 organic sales trend signific
Slide 9: Group sales and group adjusted EBIT
Group sales and group adjusted EBIT (1) Sales in €mn Adjusted EBIT in €mn 1,100 30 14% 1,060.7 1,042.0 94.0 12% -18.7 1,000 90.4 -3.6 10% 20 8.9% 8% 8.7% 900 6% 10 4% 800 2% 700 0 0% 2015 2016 2015 2016 9
Slide 10: Group sales and group adjusted EBIT by quarter
Group sales and group adjusted EBIT by quarter (2) Sales in €mn Adjusted EBIT in €mn 30 16% 26.3 300 273.7 259.9 255.8 22.7 252.6 243.2 21.6 12% 20.4 19.8 20 200 9.6% 8.7% 8% 8.4% 8.4% 7.8% 10 100 4% 0 0 0% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 2016 2016 10
Slide 11: Reconciliation EBIT to adjusted EBIT
Reconciliation EBIT to adjusted EBIT 100 90.4 90 6.6 78.5 5.3 80 70 60 EBIT Depreciation and Restructuring and Adjusted EBIT amortization from PPA transaction costs * *Approx. EUR 0.7 million of restructuring and transaction costs were attributed to the acquisition of KLL and a further EUR 3.4 milli
Slide 12: Haldex/KLL transaction effects on EBT
Haldex/KLL transaction effects on EBT 80 70 0.7 68.5 65.0 3.4 -0.6 60 50 40 EBT Haldex KLL Financial Result Clean EBT 12
Slide 13: Net income FY15 vs. FY16: Extraordinary effects
Net income FY15 vs. FY16: Extraordinary effects (after tax*) FY 2015 51.7 4.7 47.0 50 40 30 20 10 0 Result for the period unrel. FX gains from valuation of Clean result for the period intercompany loans FY 2016 48.6 50 2.9 2.2 43.5 40 30 20 10 0 Result for the period KLL/Haldex Add. interest expense
Slide 14: Sales split by region and channel
Sales split by region and channel: Europe compensating severe market weakness in the Americas Sales by Region (in €mn) Sales by channel:OE and AM (in €mn) EMEAI Americas APAC/ China OEM Aftermarket 1200.0 1200 71.3 -0.6% 70.9 +0.7% 1000.0 (6.7%) (6.8%) 1000 268.0 269.8 -10.5% (25.3%) (25.9%) 800.0 8
Slide 15: Business performance by region – EMEAI
Business performance by region – EMEAI: Solid organic growth Sales in €mn Summary 600 540.0 568.8 • Solid 5.3% sales increase in 2016 by to € 568.8 mn (540.0), 500 adj. for FX + 6.3% yoy • Sales driven by continued solid demand in Germany, Italy, 400 Spain and Poland despite Russia being almost clos
Slide 16: Business performance by region – Americas
Business performance by region – Americas: Outperformance Sales in €mn Summary 500 449.4 • In 2016 sales fell 10.5% to € 402.3 mn (449.4) due to 402.3 collapsing class-8 production (-29%) and contracting trailer 400 market (-7%); 300 • Clear outperformance of markets: market share gains, structural
Slide 17: Business performance by region – APAC/China
Business performance by region – APAC/ China: Unsatisfying profits Sales in €mn Summary 80 71.3 70.9 • Sales in 2016 (-0.5% yoy) stable at € 70.9 mn (71.3), 70 organically up 3.1% despite slow APAC markets 60 • Solid sales development in Q4/16 (+ 51.7% yoy), assisted by 50 GB 1589 standard in China
Slide 18: Free cash flow reaches record level
Free cash flow reaches record level Operating free cash flow in € mn Inventories in € mn and days of inventories 160 75 40 135.9 136.7 140 125.6 127.2 123.7 124.6 131.0 29.3 118.0 65 30 26.3 120 100 55 19.4 56 58 20 17.5 80 53 54 53 55 54 13.0 Ø: €12.8mn 51 60 45 10 6.0 40 35 20 0 Q1 Q2 Q3 Q4 Q1 Q2
Slide 19: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow in €mn 2016 2015 Result before tax 65.0 77.6 Finance result 13.5 4.0 Amortization/depreciation 22.6 21.7 Changes in Net Working Capital 1.9 -25.9 Other items cash flow 3.4 2.1 Operating cash flow before income tax 106.4 79.5 Income tax paid -13.7 -16.4 Operating cash
Slide 20: Sustainable dividend payer financed from own cash flow
Sustainable dividend payer financed from own cash flow generation in € per share 0.44 0.40 0.32 0.27 2013 2014 2015 2016* 20 * To be proposed at Annual General Meeting 2016
Slide 21: Agenda
Agenda 1 Highlights Business Year 2016 3 2 Market Trend 6 3 Financial information 8 4 Outlook 22 21
Slide 22: Outlook: Financial targets 2017
Outlook: Financial targets 2017 FY 2017* Strategy 2020 € 1,060 mn to € 1,090 mn Organic: € 1,250 mn Sales Assuming stable FX rates and unchanged scope of + Coops., JVs, acquisitions: consolidation € 1,500 mn 8 - 9% Adj. EBIT margin ≥ 8% From today’s standpoint tending toward the mid-point of the ran
Slide 23: Digitization: SMART STEEL Business Model
Digitization: SMART STEEL Business Model 4 3 New Business Models 2 Integrate and Connect 1 Digitize Information and Data Upgrade Products Electro-Mechanics Mechanics 23
Slide 24: Appendix
Appendix NLD)
Slide 25: Strong financial profile supporting further growth & dividend payments
Strong financial profile supporting further growth & dividend payments Strong financial profile* Corporate Bond Revolving Credit Convertible Bond Promissory note Non-current loan €75mn lines €100.2mn (SSD) €50mn due 04/2018 €159mn due 09/2020 €200mn due 06/2026 due 10/2020 with €140mn due in 11/2020
Slide 26: Multi-year overview of key financials
Multi-year overview of key financials 2012 2013 2014 2015 2016 Results of operations Sales 859.6 857.0 959.7 1,060.7 1,042.0 Gross profit 156.2 155.6 174.6 202.9 206.5 Gross profit margin in % 18.2% 18.2% 18.2% 19.1% 19.8% EBIT 46.8 49.3 56.7 81.6 78.4 EBIT margin in % 5.4% 5.8% 5.9% 7.7% 7.5% Adjus
Slide 27: Disclaimer
Disclaimer Not for general release, publication or distribution in the United States, Australia, Canada or Japan. By attending this presentation you agree to be bound by the following limitations: This presentation has been prepared by SAF-HOLLAND S.A. (“SAF-HOLLAND”) and comprises written materials
Slide 28: Investor Relations
Investor Relations SAF-HOLLAND GmbH Stephan Haas Hauptstraße 26 63856 Bessenbach Phone +49 6095 301-617 Telefax +49 6095 301-102 Mobile +49 170 306 64 97 Stephan.Haas@safholland.de www.safholland.com 28