Schindler Holding Ltd. · SIX:SCHN
Schindler — H1 2014 Earnings Presentation
26 slides from Schindler's earnings presentation, Aug 13, 2014
Slide 1: Welcome to Schindler: Interim Results as of June 30, 2014
4 World Trade Center, office building; New York, USA 37 Schindler 7000 elevators and Welcome to Schindler 6 Schindler 9300AE escalators, PORT technology Interim Results as of June 30, 2014 Conference Call on August 13, 2014
Slide 2: Summary as of June 30, 2014
Summary as of June 30, 2014 Continuing on a growth path Growth – Orders received grew strongly by 7.4% in local currencies; +2.1% in CHF – Revenue grew strongly by 7.6% in local currencies; +2.1% in CHF – Revenue suffered from negative translation impact of CHF –233 million – Order backlog at record
Slide 3: Key figures as of June 30, 2014 - 2nd quarter
Key figures as of June 30, 2014 2nd quarter: April to June In CHF million 2014 2013 ∆% ∆% in LC Orders received 2 520 2 503 +0.7 +6.1 Revenue 2 292 2 270 +1.0 +6.5 Operating profit (EBIT) before Mall of Switzerland (MoS) 237 253 –6.3 +0.0 in % 10.3 11.1 Operating profit (EBIT) 319 253 +26.1 +32.8 in
Slide 4: Key figures as of June 30, 2014 - 2nd quarter
Key figures as of June 30, 2014 2nd quarter: April to June In CHF million 2014 2013 ∆% ∆% in LC Cash flow from operating activities 46 173 –73.4 Investments in property, plant, and equipment 64 58 +10.3 30.06.2014 31.03.2014 Order backlog 8 627 8 178 +5.5 +4.8 Headcount at end of period 49 751 48 92
Slide 5: Key figures as of June 30, 2014 - 1st half
Key figures as of June 30, 2014 1st half: January to June In CHF million 2014 2013 ∆% ∆% in LC Orders received 4 962 4 860 +2.1 +7.4 Revenue 4 339 4 250 +2.1 +7.6 Operating profit (EBIT) before Mall of Switzerland (MoS) 442 470 –6.0 +0.4 in % 10.2 11.1 Operating profit (EBIT) 524 470 +11.5 +18.1 in
Slide 6: Key figures as of June 30, 2014 - 1st half
Key figures as of June 30, 2014 1st half: January to June In CHF million 2014 2013 ∆% ∆% in LC Cash flow from operating activities 401 478 –16.1 Investments in property, plant, and equipment 103 89 +15.7 30.06.2014 31.12.2013 Order backlog 8 627 7 722 +11.7 +11.4 Headcount at end of period 49 751 48
Slide 7: Mall of Switzerland: Summary of facts
Mall of Switzerland Summary of facts – Schindler Holding Ltd. sold stake in EbiSquare AG – Schindler Aufzüge AG sold 81 000 m2 industrial land – Transaction completed on May 28, 2014 – In Q2/2014, an extraordinary profit after tax of CHF 75 million was posted © Schindler | Investor Relations | Slide
Slide 8: Schindler's participation in Hyundai: Summary of facts
Schindler’s participation in Hyundai Summary of facts – Hyundai’s elevator business developed positively – Share price negatively impacted by capital increases and derivative contracts – Schindler recorded impairments of CHF 219 million in 2013 and CHF 40 million in Q2/2014 – Schindler’s 21.5% parti
Slide 9: 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 1H/2014: CHF 8 627 million (+11.4% in LC) FY/2013: CHF 7 722 million 18% 16% 1H/2014 FY/2013 14% Asia/Pacific 39% 38% Europe 31% 30% 12% Americas 30% 32% 10%
Slide 10: Asia/Pacific and Middle East: Development in 1H/2014
Asia/Pacific and Middle East: Development in 1H/2014 Strong growth continued in emerging markets – Construction market in China showed signs of slow-down but still delivered strong growth – Construction market in India was subdued until May elections, strong pick-up since – Continued growth in South
Slide 11: China: Growth agenda
China: Growth agenda Update as of June 30, 2014 Initiatives Actions Product lines for all market segments, coverage increasing Competitive product portfolio Program to continuously improve competitiveness Acceleration of branch and service network extension Geographic expansion More branches
Slide 12: Acquisition of majority in Chinese joint venture XJ-Schindler
Acquisition of majority in Chinese joint venture XJ-Schindler Summary of facts – Agreement to increase participation to 51% – Estimated revaluation gain of CHF 130 million after tax – Full consolidation in Group Financial Statements – Agreement includes right to raise participation to 66% by 2017 –
Slide 13: Americas: Development in 1H/2014
Americas: Development in 1H/2014 Mixed market growth in Americas – North American market grew at healthy rate – Encouraging price development both in the new installation and service businesses in North America – Latin America developed positively despite slowing trend in Brazil Schindler maintained
Slide 14: Europe: Development in 1H/2014
Europe: Development in 1H/2014 Difficult market conditions continued – Decline in southern Europe – Continued growth in other European markets – Continued price pressure in the service business Schindler performed well in demanding environment – Overall order intake grew in spite of challenging cond
Slide 15: Market outlook 2014
Market outlook 2014 Status as of August 13, 2014 Solid market fundamentals expected – Continued market growth in China, India, South-East Asia and Middle East – Market growth in North America – European environment remains challenging: South still struggling, growth across rest of region © Schindler
Slide 16: Outlook 2014
Outlook 2014 Status as of August 13, 2014 Guidance for FY/2014 Revenue growth: Revenue growth of 6% to 8% in local currencies Net profit: CHF 800 million to CHF 850 million (CHF 635 million to CHF 685 million before exceptional items1) 1 Revalutation XJ-Schindler: CHF 130 million, Mall of Switzerlan
Slide 17: Additional Charts
Additional Charts © Schindler | Investor Relations | Slide 17
Slide 18: Balance sheet
Balance sheet In CHF million 30.06.2014 % 31.12.2013 % Cash and cash equivalents 2 356 29.0 2 228 28.5 Other current assets 3 403 42.0 3 260 41.9 Total current assets 5 759 71.0 5 488 70.4 Non-current assets 2 356 29.0 2 309 29.6 Total assets 8 115 100.0 7 797 100.0 Current liabilities 4 260 52.5 3
Slide 19: Quarterly overview 2014/2013
Quarterly overview 2014/2013 2014 2013 In CHF million Q2 Q1 Q4 Q3 Q2 Q1 Orders received 2 520 2 442 2 256 2 340 2 503 2 357 Revenue 2 292 2 047 2 367 2 196 2 270 1 980 Operating profit (EBIT) 3191 205 214 212 253 217 in % 13.91 10.0 9.0 9.7 11.1 11.0 Financing activities –13 –11 –10 –7 3 –7 Investin
Slide 20: Quarterly development of orders received: 2011 – 2014
Quarterly development of orders received: 2011 – 2014 In CHF million 2 500 2 000 1 500 1 000 500 2011 2012 2013 0 2014 Q1 Q2 Q3 Q4 © Schindler | Investor Relations | Slide 20
Slide 21: Quarterly development of revenue: 2011 – 2014
Quarterly development of revenue: 2011 – 2014 In CHF million 2 500 2 000 1 500 1 000 500 2011 2012 2013 0 2014 Q1 Q2 Q3 Q4 © Schindler | Investor Relations | Slide 21
Slide 22: Megatrends impacting the E&E business
Megatrends impacting the E&E business Medium-term outlook supports Schindler’s growth objectives Megatrends E&E market implications Urbanization – Emerging markets will continue to drive E&E growth > GDP Wealth creation in – Continuous innovation needed to adapt products and services emerging market
Slide 23: Megatrends supporting E&E business outlook
Megatrends supporting E&E business outlook Status as of August 13, 2014 NI E&E market (units) ~6% Megatrends 831k 782k 137 134 +50k units Urbanization 51 48 ROW +6k Wealth creation in emerging markets AP +44k 643 599 Energy efficiency Demographic change 2013A 2014E AP AM EU © Schindler | Investor Re
Slide 24: Action plan 2014
Action plan 2014 – Grow faster than market OBJECTIVES: – Absolute EBIT growth – Differentiation through innovative products and superior service STRATEGIC CUSTOMER QUALITY & MARKETS FOCUS COMPETITIVENESS – China – Premier position in – State-of-the-art high-rise and supply chain escalators – Economi
Slide 25: New world class manufacturing facilities: 4 of 6 are operational
New world class manufacturing facilities: 4 of 6 are operational Investment projects are on time and on cost Jiading, Shanghai, China Pune, India Proximity to strategic markets - Escalator factory - Elevator factory - R&D center - China HQ Global platforms - Elevator factory - Escalator fact
Slide 26: Thank you.
Thank you. Next publication dates Selected key figures as of September 30, 2014 October 21, 2014 Full-year results 2014 February 13, 2015 Key figures as of March 31, 2015 April 23, 2015 Interim Report as of June 30, 2015 August 14, 2015 Selected key figures as of September 30, 2015 October 22, 2015