SAF-Holland SE · XETR:SFQ
SAF-Holland — Q1 2023 Earnings Presentation
29 slides from SAF-Holland's earnings presentation, May 26, 2023
Slide 1: SAF-HOLLAND SE Q1 2023 Conference Call Presentation
CONFERENCE CALL PRESENTATION SAF-HOLLAND SE Q1 2023 MAY 26, 2023 Q1 2023 Call Presentation < 1 >
Slide 2: Q1 2023 Highlights
Q1 2023 Highlights Q1 2023 Call Presentation < 2 >
Slide 3: Q1 2023 Highlights
Q1 2023 Highlights Strong sales increase of 29.9% y-o-y mainly driven by Americas and APAC regions plus Trading Review Haldex having been consolidated for five weeks. Organic growth 10.8% Cyber Attack SAF-HOLLAND lost c. EUR 15 mn in revenues during Q1 2023 but expects to recover most of lost revenu
Slide 4: Significant sales growth supported by Haldex, strong adjusted EBIT margin
Significant sales growth supported by Haldex, strong adjusted EBIT margin Q1 2023 y-o-y sales growth Sales Adjusted EPS € 480.4 mn € 0.54 EMEA +14.6% (Q1 2022: € 369.7 mn) (Q1 2022: € 0.33) Adj. EBIT Margin Americas +48.9% 9.0% NWC ratio Net Operating FCF APAC +53.4% 15.6% € 5.4 mn (31 Mar. 2022: 15
Slide 5: Q1 2023 Group sales includes five weeks of Haldex sales, double-digit growth organically
Q1 2023 Group sales includes five weeks of Haldex sales, double-digit growth organically Sales (in EUR mn) • Q1 2023 sales up 29.9%; adjusted for FX and M&A + 29.9% effects +10.8% • Continued strong demand from customers for truck and trailer components 369.7 480.4 • Haldex included for five weeks i
Slide 6: Top line: Americas region gaining importance, split by customer category unchanged
Top line: Americas region gaining importance, split by customer category unchanged Sales development (by region, by customer category) 9.3% 10.9% EMEA EMEA 56.4% 49.7% 34.3% Q1 2022 Americas 39.4% Q1 2023 Americas APAC APAC 26.1% 26.1% Trailer OE Trailer OE Q1 2022 61.2% Q1 2023 61.1% Truck OE Truck
Slide 7: Group adj. EBIT: Increased sales volume and prior price increases supportive
Group adj. EBIT: Increased sales volume and prior price increases supportive Adj. EBIT (in EUR mn and % of sales) 9.0% • Group adj. EBIT improved by EUR 19.9 mn or +84.6% 6.4% • Improvement in adjusted EBIT resulted mainly from higher volumes, increased aftermarket share and price increases compensa
Slide 8: EMEA: Sales increase from Haldex consolidation and strong aftermarket
EMEA: Sales increase from Haldex consolidation and strong aftermarket, organic sales growth above market development Sales +14.6% (in EUR mn) • Adjusted for exchange rate effects and changes in the scope of consolidation, sales were up 0.7% year-on- year • Five weeks of Haldex consolidation contribu
Slide 9: EMEA: Prior price increases and strong aftermarket support margin improvement
EMEA: Prior price increases as well as strong aftermarket business support margin improvement Adj. EBIT (in EUR mn and % of sales) 7.9% • Increase in adj. EBIT and adj. EBIT margin was supported by prior price increases partially compensating higher steel, logistics and energy costs 4.9% as well as
Slide 10: Americas: Strong growth due to high customer demand and Haldex consolidation
Americas: Strong growth due to unchanged high customer demand and Haldex consolidation Sales (in EUR mn) +48.9% • The Americas region saw a growth of 48.9% as Haldex generates c. 50% of sales in the Americas region • On an organic basis, SAF-HOLLAND increased sales in the region by 17.4% 189.1 127.0
Slide 11: Americas: Operating leverage and efficiency enhancements support margin improvement
Americas: Operating leverage and efficiency enhancements support strong margin improvement Adj. EBIT (in EUR mn and % of sales) 10.0% • The Americas region nearly doubled its adjusted EBIT in the first quarter 7.8% • Strong improvement in earnings was primarily the result of the operating leverage d
Slide 12: APAC: Strong growth driven by demand in India, Australia and Southeast Asia
APAC: Strong growth driven by demand in India, Australia and Southeast Asia Sales (in EUR mn) +53.4% • Strong growth in the APAC region was again driven by the strong development in India due to India’s ongoing government infrastructure measures and the expansion of its transport sector 52.5 • Custo
Slide 13: APAC: Profitability improvement driven by higher volumes and China performance
APAC: Profitability improvement driven by higher sales volumes and improved operating performance in China Adj. EBIT (in EUR mn and % of sales) 10.6% 10 • Economies of scale from the higher business volume in India and a favorable product mix were supportive 10.1% 8 6 • New highly profitable busines
Slide 14: Financials Q1 2023
Financials Q1 2023 Q1 2023 Call Presentation < 14 >
Slide 15: Group: Reconciliation EBIT to adjusted EBIT
Group: Reconciliation EBIT to adjusted EBIT in EUR thousands Q1 2023 Q1 2022 Change absolute Change in % EBIT 38,832 21,039 17,793 84.6% EBIT margin in % 8.1% 5.7% – – Additional depreciation and amortization of property, plant and equipment and intangible 2,328 2,289 39 1.7% assets from PPA Restruc
Slide 16: Q1 2023 Earnings per share developed nicely
Q1 2023 Earnings per share developed nicely (EUR mn and y-o-y change in %) 84.6% 56.7% 48.9% 48.3% 61.9% 63.6% 24.5 Tax rate -31.8% € 0.43 € 0.54 Basic EPS Adj. EPS Result before Income tax Adj. result for the period EBIT Finance result Result for the period income tax Q1 2023 Call Presentation < 16
Slide 17: Equity ratio down due to balance sheet expansion driven by Haldex acquisition
Equity ratio down due to balance sheet expansion driven by Haldex acquisition • Compared to 31 Dec. 2022, equity as of 31 Mar. 2023 improved by EUR 8.4 mn 36.6% 36.8% 37.3% 34.6% 32.6% 32.6% 33.1% 32.2% • Negative currency effects had an impact of 29.5% EUR 11.2 mn 27.2% • The expansion in total ass
Slide 18: Net working capital ratio up due to seasonality and Haldex consolidation
Net working capital ratio up due to seasonality and Haldex consolidation Net working capital (in % of sales) 17.4% • NWC ratio of SAF-HOLLAND on a stand-alone basis was 12.4%, showing only a slight increase against the 31 15.7% 15.9% 15.6% Dec. 2022 value of 12.0% 15.5% 14.8% 14.8% 14.4% • Typical s
Slide 19: Strong start to the year with positive operating and net free cash flow
Strong start to the year with both positive operating and net free cash flow Net cash flow from operating activities (EUR mn) • The sharp increase was driven above all by the development of cash flow before changes 79.9 in net working capital, which rose to 12.1 54.8 EUR 42.2 mn (Q1 2022: EUR 26.1 m
Slide 20: Strong ROCE improvement driven by lower financial liabilities
Strong ROCE improvement driven by lower financial liabilities and strong operating performance Return on capital employed (in %) • Q1 2023 ROCE was 16.5%, significantly 16.5% up due to lower financial liabilities and 15.6% 15.7% increased adjusted EBIT (LTM) 15.2% 14.8% 14.5% • Increased adjusted EB
Slide 21: Net debt/EBITDA: Target for 2024 remains in place: 2x or lower
Net debt/EBITDA: Target for 2024 remains in place: 2x or lower Net debt/EBITDA 2.6 *** Net debt/EBITDA* • Including pro-forma EBITDA 2.4 *** target 2024e: contribution of Haldex and related debt, 2.2 <= 2x net debt/EBITDA ratio amounted to 2.4x, down from the 31 Dec. 2022 value 1.8 1.7 of 2.6x 1.6 1
Slide 22: Update on Haldex Consolidation
Update on Haldex Consolidation Q1 2023 Call Presentation < 22 >
Slide 23: Impacts of accounting and valuation roll-out solely effecting Haldex FY 2022 results
Impacts of accounting and valuation roll-out solely effecting Haldex FY 2022 results in EUR mn Haldex SAF-HOLLAND • First-time consolidation of Haldex took place February 21, 2022 Group 2023 2023, due to delayed approval of the Polish antitrust authority Impairments on capitalized _ • SAF-HOLLAND ro
Slide 24: Outlook 2023
Outlook 2023 Q1 2023 Call Presentation < 24 >
Slide 25: Europe and North America facing consolidation, strong growth in India and China
Europe and North America facing consolidation, strong growth in India and China • EMEA Trailer Trucks • Due to the difficult overall economic environment and persistent uncertainties surrounding the Ukraine conflict, the European trailer market, measured in terms of production in 2023, is expected t
Slide 26: Outlook FY 2023 – Sales expectations now tending around the upper end of the range
Outlook FY 2023 – Sales expectations now tending around the upper end of the range IFRS Pro-forma Comments on IFRS outlook FY 2023 (incl. Haldex as of (incl. Haldex as of Feb. 21) Jan. 1) • Based on current estimates, SAF-HOLLAND is assuming group sales for FY 2023 tending around the upper end of th
Slide 27: Contact and additional information
Contact and additional information Q1 2023 Call Presentation < 27 >
Slide 28: Financial calendar & IR contact
Financial calendar & IR contact Issuer & contact Additional information SAF-HOLLAND SE ISIN DE000SAFH001 Hauptstrasse 26 WKN SAFH00 63856 Bessenbach Listing Frankfurt Stock Exchange Prime Standard Fabian Giese Tel: +49 6095 301 – 904 Alexander Pöschl Financial calendar 2023 Tel: +49 6095 301 – 117 J
Slide 29: Disclaimer
Disclaimer This presentation has been prepared by SAF-HOLLAND SE (“SAF-HOLLAND”) and comprises written materials concerning SAF-HOLLAND. It is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. It contains summary inform