Slide 1: Welcome to Schindler Annual Results Presentation 2016
Welcome to Schindler Annual Results Presentation 2016 February 15, 2017
Slide 2: Agenda
Annual results presentation 2016 Agenda Market development Results 2016 Outlook 2017 Q&A © Schindler | Annual Results Presentation 2016 Slide 2
Slide 3: Highlights 2016: Growth strategy yielding results
Highlights 2016 Growth strategy yielding results Strategic progress New partnerships with GE Digital and Huawei to power digital urban mobility Enhanced market presence with acquisitions in China and Germany Successful new product launches Participation in ALSO 5.6% (status January 31, 2017)
Slide 4: Global markets in 2016 Key developments
Global markets in 2016 Key developments Global demand for new installations declined slightly Contraction mainly due to the softening Chinese market Indian real estate market hit in Q4 by demonetization effects Europe, the US and Asian markets w/o China and India with positive growth Brazil
Slide 5: Global new installations market
Global new installations market Contraction in Asia-Pacific, other regions stable –4% –5% NI market size 803k 770k (units) and 619k 586k growth rate Stable 2015-16 Stable 138k 138k 46k 46k 2015 2016 2015 2016 2015 2016 2015 2016 Americas Europe Asia-Pacific Global Regional 19% 17% weight of NI marke
Slide 6: Order intake increasingly aligned with global demand footprint
Order intake increasingly aligned with global demand footprint Improved position in strategic markets 25% 24% NI market 42% 49% 51% (units) 58% 75% 76% 2004 2008 2012 2016 23% 26% Schindler NI 35% order intake 46% 54% 65% (units) 77% 74% Other zones © Schindler | Annual Results Presentation 2016 Sli
Slide 7: Asia-Pacific: China
Asia-Pacific: China Still weakening new installations market Market development New installations still softening, mainly driven by lower tier cities Strong service market growth Delays in down-payments, continued pricing pressure Schindler performance Growth in all segments (units) driven b
Slide 8: Schindler Campus in Jiading Shanghai
Schindler Campus in Jiading Shanghai Size of over 325 000 m2 R&D center (equivalent to 45 football fields) - Head office Around 2 000 employees Schindler China - Training center Escalator plant, elevator plant, Elevator plant - Visitor center Escalator plant training center, visitor center, he
Slide 9: Asia-Pacific: other markets
Asia-Pacific: other markets Good growth overall Mixed market development India: demonetization and new regulations in the real estate sector put pressure on demand in Q4 Southeast Asia: further growth, particularly in residential and infrastructure Middle East: historically low oil and gas pri
Slide 10: Americas
Americas Supported by a healthy US market Diverging market trends North America: sustained growth in the US new installations and modernization markets across all segments Latin America: except for Brazil, Latin American key markets growing; some markets still under pressure due to low commoditi
Slide 11: Europe
Europe Modest growth in European markets Opportunities in various markets Northern Europe: continued moderate growth Southern Europe: positive demand trend in most countries Russia and Turkey slowed overall growth Increasing modernization opportunities driven by ageing installed base in matu
Slide 12: Agenda
Annual results presentation 2016 Agenda Market development Results 2016 Outlook 2017 Q&A © Schindler | Annual Results Presentation 2016 Slide 12
Slide 13: 4th quarter 2016 – key figures
4th quarter 2016 – key figures October to December In CHF million Q4/2016 Q4/2015 ∆% ∆% in LC Orders received 2 699 2 606 3.6 6.4 Revenue 2 629 2 589 1.5 3.7 Operating profit (EBIT), reported 352 277 27.1 28.9 in % 13.4 10.7 Net profit, reported 237 194 22.2 Before exceptional items Operating profit
Slide 14: Full year 2016 – key figures
Full year 2016 – key figures January to December In CHF million 2016 2015 ∆% ∆% in LC Orders received 10 374 9 967 4.1 4.6 Revenue 9 683 9 391 3.1 3.6 Operating profit (EBIT), reported 1 133 1 002 13.1 13.9 in % 11.7 10.7 Net profit, reported 823 747 10.2 Before exceptional items Operating profit (E
Slide 15: Order backlog and revenue by region
Order backlog and revenue by region Record order backlog provides solid base for future growth Revenue growth by region (in LC) Order backlog 2016: CHF 10 004 million (+6.5% in LC) 2015: CHF 9 364 million 10% 9% 2016 2015 Asia-Pacific 43% 45% 8% Americas 31% 30% 7% Europe 26% 25% 6% 5% 4% Revenue 20
Slide 16: Full year 2016 – key figures
Full year 2016 – key figures January to December In CHF million 2016 2015 ∆% ∆% in LC Cash flow from operating activities 929 1 076 –13.7 Investments in property, plant, and equipment 189 183 3.3 31.12.2016 31.12.2015 Order backlog 10 004 9 364 6.8 6.5 Number of employees 58 271 56 762 2.7 © Schindl
Slide 17: Dividend proposal 2016
Dividend proposal 2016 Dividend of CHF 5.00 In CHF 6.00 5.00 4.00 Special Ordinary 3.00 2.00 1.00 0.00 2012 2013 2014 2) 2015 2016 3) Pay-out ratio in % 1) 37.1 59.6 41.9 44.0 70.5 1) Pay-out ratio in % of net profit after minorities 2) Ordinary dividend CHF 2.20, extraordinary dividend CHF 1.00 3)
Slide 18: Agenda
Annual results presentation 2016 Agenda Market development Results 2016 Outlook 2017 Q&A © Schindler | Annual Results Presentation 2016 Slide 18
Slide 19: Megatrends driving demand for Elevators and Escalators
Megatrends driving demand for Elevators and Escalators Urbanization and demographic change will support higher E&E demand Urban population Global middle class Persons aged 60 or One-person (billion people) (billion people) above (in millions) households (in millions) 1400 5.1 4.9 4.0 900 480 2.6 330
Slide 20: Megatrends: Ongoing demand for latest technology
Megatrends driving demand for Elevators and Escalators Ongoing demand for latest technology Number of devices and objects VDI 4707 connected to the Internet (billion) 500 50 2020 2030 Ageing installed base Digitization & IoT Energy efficiency Over 50% of all units in Mobility and connectivity Bu
Slide 21: Schindler's response to the megatrends
Schindler’s response to the megatrends Innovation drives profitable growth - Grow faster than the market Objectives - Improve profitability - Foster a winning team People & Organization Customer & Market Innovation & Processes Talent Management Customer Excellence Digitization (IoEE) Quality Champio
Slide 22: Outlook 2017
Outlook 2017 Status as of February 15, 2017 Business environment Schindler guidance Long-term growth drivers remain intact Focus on profitable growth unchanged Economic conditions continue to be Revenue expected to increase by influenced by political and 3% to 5% in local currencies macroeco
Slide 23: Agenda
Annual results presentation 2016 Agenda Market development Results 2016 Outlook 2017 Q&A © Schindler | Annual Results Presentation 2016 Slide 23
Slide 24: Financial Calendar 2017
Financial Calendar 2017 Closing date of shareholders' register March 10 Ordinary General Meeting Schindler Holding Ltd. March 16 First trading date ex-dividend March 201) Date of Schindler Holding Ltd. dividend payment March 221) Publication of selected key figures as of March 31 April 25 Publicatio
Slide 25: Additional Charts
Additional Charts © Schindler | Annual Results Presentation 2016 Slide 25
Slide 26: China construction data
China construction data Upward trend sustained throughout the year Floor space started in China Opportunities 600 19.2% 30% China on track to reach 60% target urbanization rate by 2020 500 20% 400 10% $500bn to be invested in high-speed railway over next four years 12.6% 300 -7.7% 11.7% 0% Flo
Slide 27: China: inventories at healthy levels in large cities
China: inventories at healthy levels in large cities Improvement due to increased apartment sales Housing inventory, by city tier (2010 = 100) Housing inventory, by city tier (months of sales) 350 25 300 20 250 Tier 3 15 200 150 Tier 2 Tier 3 10 Tier 2 Tier 1 100 Tier 1 5 50 0 0 2010 2011 2012 2013
Slide 28: Balance sheet
Balance sheet In CHF million 31.12.2016 in % 31.12.2015 in % Cash and cash equivalents 1 988 23.9 1 975 23.9 Other current assets 3 432 41.4 3 500 42.4 Total current assets 5 420 65.3 5 475 66.3 Non-current assets 2 883 34.7 2 784 33.7 Total assets 8 303 100.0 8 259 100.0 Current liabilities 4 290 5
Slide 29: Quarterly overview 2016/2015
Quarterly overview 2016/2015 2016 2015 In CHF million Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Orders received 2 699 2 592 2 616 2 467 2 606 2 384 2 534 2 443 Revenue 2 629 2 409 2 469 2 176 2 589 2 310 2 355 2 137 Operating profit (EBIT) 352 277 269 235 277 249 254 222 in % 13.4 11.5 10.9 10.8 10.7 10.8 10.8 10.4 F
Slide 30: Financing and investing activities
Financing and investing activities Currency headwinds In CHF million 2016 2015 Interest income net 11 9 Net income from securities 10 26 Net interest on employee benefits, increase in the present value of provisions –21 –21 Net losses on foreign exchange –32 –1 Revaluation/exchange of 0.375% exchang
Slide 31: ALSO exchangeable bond
ALSO exchangeable bond Schindler’s participation at 7.6% as of December 31, 2016 Background 0.375% exchangeable bond 2013 – 2017 (maturity date June 5, 2017) Initial nominal value CHF 218 million Bond can be exchanged into ALSO shares Exchange price ALSO shares CHF 60.24 December 31, 2016 De
Slide 32: 4th quarter 2016 – key figures
4th quarter 2016 – key figures October to December In CHF million Q4/2016 Q4/2015 ∆% ∆% in LC Cash flow from operating activities 270 377 –28.4 Investments in property, plant, and equipment 76 55 38.2 31.12.2016 30.09.2016 Order backlog 10 004 10 118 –1.1 –2.9 Number of employees 58 271 58 313 –0.1
Slide 33: Quarterly development of orders received 2013 – 2016
Quarterly development of orders received 2013 – 2016 In CHF million 3 000 2 500 2 000 1 500 1 000 500 2013 2014 2015 0 2016 Q1 Q2 Q3 Q4 © Schindler | Annual Results Presentation 2016 Slide 33
Slide 34: Quarterly development of revenue 2013 – 2016
Quarterly development of revenue 2013 – 2016 In CHF million 3 000 2 500 2 000 1 500 1 000 500 2013 2014 2015 0 2016 Q1 Q2 Q3 Q4 © Schindler | Annual Results Presentation 2016 Slide 34