Slide 1: FY 2023 Investor & Analyst Presentation
Trusted Partner FY 2023 Investor & Analyst Presentation 27 March, 2024
Slide 2: Disclaimer
Disclaimer By accessing this presentation, you agree to be bound by the following limitations. This presentation has been prepared for information and background purposes only. It does not constitute or form part of, and should not be construed as, an offer of, a solicitation of an offer to buy, or
Slide 3: Management team (from 1 April 2024)
Management Management team (from 1 April 2024) Years industry experience 25+(1) 25+ 20+(2) Susanne Christian Dr. Alexander Wiegand Schulz Sagel CEO CFO Board Member 2 Trusted Partner
Slide 4: Agenda: RENK introduction
1. RENK introduction 2. FY-23 performance 3. Summary and outlook Trusted Partner
Slide 5: RENK's mission – empowering a secure and sustainable future
RENK introduction RENK’s mission – empowering a secure and sustainable future Defense super-cycle Energy transition Empowering security Empowering Forces Enabling a sustainable future 4 Trusted Partner
Slide 6: RENK – snapshot
RENK introduction RENK – snapshot Growth markets Global leader Strong financials ~10% #1 Player €926m 2022A-2027E in mission-critical 2023A Total addressable market CAGR(1) drive technologies(4) Revenue ~€4.6bn ~75% 16.2% Dec-2023 Global market presence 2023A Total order backlog(2) in tracked milita
Slide 7: Successful transformation of RENK into a global growth platform
RENK introduction Successful transformation of RENK into a global growth platform ~10% Market CAGR 2022-27E(3) Trusted Partner RENK enabled as platform to capture the underlying growth Energy transition Customer orientation as #1 priority €926m Strengthened top management Revenue team Optimize
Slide 8: Agenda: FY-23 performance
1. RENK introduction 2. FY-23 performance 3. Summary and outlook Trusted Partner
Slide 9: Executive summary FY 2023
FY-23 performance Order intake All-time high order intake of €1.3bn (1.4x revenue), driven by wins across regions & segments. Total order backlog of €4.6bn in Dec-23 Marine & M&I achieved significant earnings growth in FY-23 with Industry growth in order intake, revenue, and profitability. Further p
Slide 10: Business highlights: Strong defense momentum boosting total order backlog
FY-23 performance Business highlights: Strong defense momentum boosting total order backlog Total order backlog (Dec-23), €bn Commentary LTM revenue 1 Fixed order backlog: Orders turned into 1.9x 0.6x 2.5x 5.0x revenue since Sep-23 compensated by coverage(1) newly contracted order inflow, such as t
Slide 11: FY-23 Group performance at a glance
FY-23 performance FY-23 Group performance at a glance YoY growth Book-to-bill ratio(1) Order intake, €m Revenue, €m Fixed order backlog(2), €m Commentary 1.2x 1.4x Increase in order intake to 1.4x revenue driven by significant order wins across regions and segments, with an increase of 32.7% YoY i
Slide 12: FY-23 Group performance at a glance (cont'd)
FY-23 performance YoY growth Adj. gross profit margin FY-23 Group performance at a glance (cont’d) Adj. EBIT margin Net debt / LTM Adj. EBITDA(3) Adj. gross profit, €m Adj. EBIT(1), €m Net debt(2), €m Commentary 27.7% 27.9% 17.0% Translation of strong revenue growth into 16.2% 2.2x 2.4x considerab
Slide 13: Focus on Vehicle Mobility Solutions segment
FY-23 performance Focus on Vehicle Mobility Solutions segment YoY growth Adj. EBIT margin Segment financials, €m Commentary Order intake Revenue Adj. EBIT(1) Substantial increase in order intake by 32.7% YoY especially driven by growth in 23.4% 20.1% North America 32.7% Considerable increase in
Slide 14: Focus on Marine & Industry segment
FY-23 performance Focus on Marine & Industry segment YoY growth Adj. EBIT margin Segment financials, €m Commentary Order intake Revenue Adj. EBIT(1) Order intake overall developed favorably, exceeding prior year figures, underlining 7.5% 9.6% strong demand, especially driven by Navy 28.5% Consid
Slide 15: Focus on Slide Bearings segment
Update on FY-23 performance Focus on Slide Bearings segment YoY growth Adj. EBIT margin Segment financials, €m Commentary Order intake Revenue Adj. EBIT(1) Order intake continues to grow YoY mainly driven by marine horizontal bearings and 14.7% 15.6% special client applications 12.8% Continued,
Slide 16: Deep-dive into selected P&L positions
FY-23 performance Deep-dive into selected P&L positions Adj. gross profit(1), €m Adj. distribution expenses(2), €m % of revenue(4) 27.7% 27.9% % of revenue(4) 5.5% 5.3% 258 236 47 49 H1-22 H1-23 FY-22 FY-23 FY-22 FY-23 Adj. general and administrative expenses(3), €m Commentary 5.5% 6.4% Adj. gross
Slide 17: Adjustments to operating profit mainly relate to M&A activities and other items
FY-23 performance Adjustments to operating profit mainly relate to M&A activities, inflation compensation premium, severance provisions, and capital market readiness costs For the period, €m Commentary FY-22 FY-23 1 Expenses for inflation compensation premium of €3.5m Operating profit 65.2 89.0 2
Slide 18: Temporary increase in net working capital
FY-23 performance Temporary increase in net working capital due to mitigation of supply chain bottlenecks and resolution of H1-23 challenges in production Customer receivables(1) Inventories Net working capital, €m Trade payables Prepayments received(2) Commentary % of LTM revenue 25%(3) 26% Tempo
Slide 19: Solid cash flow generation from operations despite working capital increase
FY-23 performance Solid cash flow generation from operations despite increase in working capital, providing opportunity to invest in future growth Key cash flow items, €m Commentary FY-22 FY-23 1 Negative change in net working capital Adj. EBITDA(1) 174.3 181.7 driven by Build-up of inventories (
Slide 20: Increase in net debt impacted by repayment of shareholder loan
FY-23 performance Increase in net debt impacted by repayment of shareholder loan Net debt(1), €m Commentary 2.2x 2.4x Increase in net debt and net leverage driven Net debt / Adj. EBITDA(2) by decrease in cash and cash equivalents resulting from Repayment of shareholder loan with 383 441 Rebecca
Slide 21: Agenda: Summary and outlook
1. RENK introduction 2. FY-23 performance 3. Summary and outlook Trusted Partner
Slide 22: Guidance
Guidance Guidance 2023A 2024 Guidance Medium-term target Guidance confirmed! Revenue / €926m ~€1,000-1,100m ~10% CAGR growth Guidance confirmed! Adj. EBIT(1) 16.2% ~16-18% ~19-20% margin 21 Source: Company information. Further footnotes summarized at the end of the presentation. Trusted Partner
Slide 23: Key highlights FY Q1 2024
Outlook on 2024 Public Listing Successful listing on Frankfurt Stock Exchange with ~27% free float and solid share price performance (outperforming country indices and peers) Moody‘s rating Moody’s has upgraded RENK GmbH to ‘Ba3’ with upgrade positive outlook, driven by robust credit metrics and a c
Slide 24: Priorities and key challenges for 2024
Outlook on 2024 Output Accelerate execution of five-year order backlog and increase VMS revenue growth, especially in Augsburg Operational Take financial performance of RENK Americas to the Excellence next level: Record order backlog with significant Americas commercial wins in FY-23 to be converted
Slide 25: Question & Answers? Financial Calendar
Financial Calendar H1 2024 April 2024: • London Roadshow (9 Apr) • Paris Roadshow (10 Apr) • Frankfurt Roadshow (15 Apr) Q & A SESSION May 2024: • Q1 2024 Quarterly Statement (15 May) Question & • Hauck & Aufhäuser Stockpicker Summit(16/17 May) • Berenberg Conference NYC (21 May) • dbAccess Conferen
Slide 26: Thanks for your attention
TRUSTED PARTNER Thanks for your attention RENK Group AG Goegginger Straße 73 Investor Relations D-86159 Augsburg Germany Ingo Schachel, Head of IR www.renk.com Phone: +49 821 5700 1439 E-Mail: investors@renk.com Management Board: Susanne Wiegand (Chairman), Christian Schulz www.ir.renk.com Superviso
Slide 27: Appendix
APPENDIX RENK Trusted Partner
Slide 28: Income statement
Financial Appendix Income statement For the period, €m FY2022 FY2023 Revenue 849.0 925.5 Cost of sales excl. PPA(1) (617.7) (669.9) Gross profit 231.2 255.6 Other operating income 11.3 11.6 Net allowances on financial assets 2.3 (0.5) Distribution expenses (48.1) (51.7) General administrative expens
Slide 29: Balance sheet – Total assets
Financial Appendix Balance sheet – Total assets As of, €m Dec 31, 2022 Dec 31, 2023 Intangible assets 389.0 383.9 Property, plant and equipment 323.0 319.0 Other financial investments 21.9 9.4 Deferred tax assets 13.7 18.2 Other non-current financial assets 2.0 0.4 Other non-current receivables 2.4
Slide 30: Balance sheet – Total equity and liabilities
Financial Appendix Balance sheet – Total equity and liabilities As of, €m Dec 31, 2022 Dec 31, 2023 Subscribed capital 0.0 100.0 Capital reserves 308.6 223.8 Retained earnings -7.1 57.5 Cumulative other comprehensive income 23.0 22.5 Equity attributable to shareholders of RENK AG - 403.8 Equity attr
Slide 31: Cash flow statement
Financial Appendix Cash flow statement For the period, €m FY-22 FY-23 Cash and cash equivalents at beginning of period 97.5 158.7 Profit before taxes 14.8 46.6 Income taxes paid -10.7 -28.2 Depreciation and amortization (incl. impairments on investments) 97.9 79.7 Change in pension provisions and li
Slide 32: RENK 2023 group performance at a glance
RENK 2023 group performance at a glance 926m€ 16.2% 4.6bn€ Revenue Adj. EBIT margin2 Total order backlog3 #1 Player Civil APAC 20% in mission-critical ~30% drive technologies1 +9% ~70% 56% 23% Defence EMEA Americas Revenue growth year-on-year End markets4 Geographies5 31 Source: Company information.
Slide 33: Endnotes (1/4)
Endnotes (1/4) p.2 (1) 25 years industry experience including >20 years in defense (2) 25 years industry experience including >18 years in defense p.5 (1) Market CAGR of ~10% calculated as a blended rate by weighting 2022-27 CAGRs of total addressable market for defense (12.9% as per Renaissance mar
Slide 34: Endnotes (2/4)
Endnotes (2/4) p.9 (1) Defined as total order backlog as of Dec-23 / LTM revenue for the period ended December 31, 2023. Total order backlog comprised of fixed order backlog, frame order backlog and soft order backlog (2) Fixed order backlog represents with respect to binding customer contracts and
Slide 35: Endnotes (3/4)
Endnotes (3/4) p.17 (1) Comprises contract assets and trade receivables excluding customer prepayment receivables (2) Comprises contract liabilities excluding liabilities from customer prepayment receivables (3) Calculation of 2021A net working capital as % of revenue based on 2021A revenue €698m pl
Slide 36: Endnotes (4/4)
Endnotes (4/4) p.24 (1) Based on market CAGR of ~10% calculated as a blended rate by weighting 2022-27 CAGRs of total addressable market for defense (12.9% as per Renaissance market study) and civil (4.7% as per Roland Berger market study) with the defense / civil revenue split of around 70% / 30% i