SAF-Holland SE · XETR:SFQ
SAF-Holland — Q1 2019 Earnings Presentation
24 slides from SAF-Holland's earnings presentation, May 9, 2019
Slide 1: Financial results Q1 2019
Next Financial results Q1 2019 Alexander Geis, CEO Dr. Matthias Heiden, CFO May 9, 2019
Slide 2: Agenda
Agenda Q1 2019 at a glance Financial performance Q1 2019 Market development Outlook 2
Slide 3: Q1 2019 at a glance
Q1 2019 at a glance 1. Strong organic sales growth and adjusted EBIT margin development on track 2. Americas region: first sign of improvement 3. Continued high investment level to support future growth 4. Significantly better operating free cash flow Acquisition of PressureGuard and Stara Group str
Slide 4: Agenda
Agenda Q1 2019 at a glance Financial performance Q1 2019 Market development Outlook 4
Slide 5: Truck and trailer production Q1 2019
Truck and trailer production Q1 2019 Western & Eastern Europe North America China Truck1 Trailer2 Truck3 Trailer4 Truck1 Trailer2 Q1 Q1 Q1 +3% -15% +20% +13% +3% -10% 2019 2019 2019 Mixed picture in the relevant markets 1 LMC Global Commercial Vehicles Forecast Q1, 2019, Western & Eastern Europe, Ch
Slide 6: Truck and trailer production Q1 2019
Truck and trailer production Q1 2019 South America India Truck1 Trailer2, 3 Truck1 Trailer2, 3 Q1 2019 +5% +35% Q1 2019 -6% -30% Sustainable recovery in South America; strong slump of the Indian trailer market due to restrictions on the maximum payload and buying restraints ahead of the April/May el
Slide 7: Group
Group Sales (€ mn) Sales by quarter (€ mn) 2018 • Sales improved on +17.3% 2019 Organic growth totalling € 346.0 346.0 345.4 340.5 319.7 19.1 mn (mainly from the 294.9 294.9 Americas region due to ongoing strong customer demand from the US trailer and truck industries) Acquisitions (€ 24.2 mn) FX ef
Slide 8: Business segment: EMEA
Business segment: EMEA 2018 • Higher sales Sales (€ mn) Sales by quarter (€ mn) 2019 +5.4% Organic growth (+1.1 per cent respectively € 1.8 176.1 176.1 177.9 mn) 167.1 167.1 155.5 158.4 Acquisitions (+5.0 per cent respectively € 8.4 mn) FX effects (-0.8 per cent respectively € -1.3 mn) YTD Q1 Q2 Q3
Slide 9: Business segment: Americas
Business segment: Americas • Sales rise on Sales (€ mn) Sales by quarter (€ mn) 2018 +28.9% 2019 Strong customer demand for truck and trailer 131.3 131.3 128.9 components 123.0 117.7 101.9 101.9 Strong organic growth: +20.1 per cent to € 122.4mn FX effects (+8.7 per cent respectively € 8.9 mn) YTD Q
Slide 10: Business segment: Americas
Business segment: Americas • Adj. EBIT margin improved due Add-on operating cost in € mn Adj. EBIT margin in % to 6.5 6.3 6.5 6.0 Lower add-on operating 6.0 5.2% 5.5 expenses 5.0 5.5 4.5% 4.5 Volume, product mix 5.0 4.0 and economies-of-scale 3.5 effects 4.5 3.0 4.0 2.5 4.0 3.9 1.6% 1.7% 2.0 S
Slide 11: Business segment: APAC
Business segment: APAC Sales (€ mn) Sales by quarter (€ mn) 2018 2019 • Sales increase due to +166.7% 31.3 28.8 Organic growth (+8.0 per 26.2 26.2 cent respectively € 0.8 24.2 mn) Acquisitions (+158.7 per 9.8 9.8 cent respectively €15.6 mn) YTD Q1 Q2 Q3 Q4 Adj. EBIT (€ mn) Adj. EBIT by quarter (€ mn
Slide 12: Business segment: China
Business segment: China Sales (€ mn) Sales by quarter (€ mn) 2018 • Sales decline mainly due to 2019 Declining export business 24.9 of Chinese customers -23.1% 20.3 following the trade dispute between China and the 16.0 16.0 14.8 US 12.3 12.3 • Lower adj. EBIT margin due to YTD Q1 Q2 Q3 Q4 Insuffici
Slide 13: Investments and depreciation
Investments and depreciation Investments (€ mn) Investments by quarter (€ mn) 2018 • Investments in plant, property, +106.2% 2019 equipment and intangible assets of € 14.4 mn 15.5 14.4 14.4 • Focus of investments: 10.0 construction of the Chinese 8.2 Greenfield project and 7.0 7.0 rationalisation an
Slide 14: Net working capital ratio
Net working capital ratio • Net working capital (NWC) 22.7 per cent or € 36.6 mn above previous year‘s figure 17,0% 16,0% Inventories increased by 16,0% 29.1 per cent or € 44.1 mn mainly to ensure timely 15,0% 14,5% delivery to North American 14,3% customers 14,0% 13,5% 13,5% 13.0% Trade receivables
Slide 15: Operating free cash flow
Operating free cash flow 58.3 • Operating cash flow at € 8.6 mn (Q1 2018: € -22.5 mn) • Increase of net working capital in Q1 2019 significantly lower than in Q1 2018 26.8 • Investing cash flow: +106.2 per cent to € 14.4 mn • Operating FCF substantially 10.9 better than previous year 7.5 -5.9 -12.2
Slide 16: Agenda
Agenda Q1 2019 at a glance Financial performance Q1 2019 Market development Outlook 16
Slide 17: Truck and trailer production
Truck and trailer production Western & Eastern Europe North America China Truck1 Trailer2 Truck3 Trailer3 Truck1 Trailer2 2018 -1% +4% 2018 +27% +12% 2018 -7% -4% 2019 +2% -10% 2019 +4% +3% 2019 -4% -15% Stable growth in North America; Western & Eastern Europa and China weaker 17 1 LMC Global Commer
Slide 18: Truck and trailer production
Truck and trailer production South America India Truck1 Trailer2 Truck1 Trailer2 2018 +23% +55% 2018 +41% +13% 2019 +17% +5% 2019 -12% -6% South America with steady recovery, India in reverse gear 18 1 LMC Global Commercial Vehicles Forecast Q1, 2019, South America, India, medium & heavy truck 2 Cle
Slide 19: Agenda
Agenda Q1 2019 at a glance Financial performance Q1 2019 Market development Outlook 19
Slide 20: Financial targets 2019
Financial targets 2019 FY 2018 FY 2019* Strategy 2020 € 1,500 mn Sales € 1,300.6 mn + 4 to 5 per cent (incl. M&A) Adj. EBIT Around the mid-point of the 7 6.9 per cent ≥ 8 per cent margin to 8 per cent range Net working 13.5 per cent 13 per cent 13 per cent capital ratio CAPEX € 40.8 mn € 68 to 70 mn
Slide 21: Your key takeaways
Your key takeaways ≈ Mixed picture in relevant markets North America well on track Countermeasures in place to improve Chinese efficiency Full focus on NWC management We take back control of our performance 21
Slide 22: Financial Calendar 2019
Financial Calendar 2019 Dates Events 09.05.2019 Quarterly Statement Q1 2019 23.05.2019 Berenberg Conference USA 2019, Tarrytown 28.05.2019 MainFirst SMID Cap One-on-One Forum, Frankfurt 05.06.2018 dbAccess Berlin Conference, Berlin 05.06.2018 ODDO BHF Nextcap Forum, Paris 27.06:2019 Warburg Highligh
Slide 23: IR Contact
IR Contact SAF-HOLLAND Group Hauptstraße 26 63856 Bessenbach Germany www.safholland.com Michael Schickling Head of Investor Relations / Corporate Communications michael.schickling@safholland.de Phone: +49 - 6095 301-617 Alexander Pöschl Senior Manager Investor Relations / Corporate Communications al
Slide 24: 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