Schindler Holding Ltd. · SIX:SCHN
Schindler — Q1 2012 Earnings Presentation
23 slides from Schindler's earnings presentation, Apr 19, 2012
Slide 1: Welcome to Schindler: Selected key figures as of March 31, 2012
Costanera Center, Santiago, Chile, height: 300m 109 elevators, of which 77 Schindler 7000 Welcome to Schindler 86 Schindler escalators and moving walks Selected key figures as of March 31, 2012 April 19, 2012
Slide 2: Highlights in Q1/2012
Highlights in Q1/2012 Pleasing start into 2012 – 9.5% growth in order intake in LC (+5.4% in CHF); especially in Asia/Pacific, India and Americas – Strong order backlog of CHF 6 795 million (+7.8% in LC, +5.5% in CHF) – 7.3% growth in revenue in LC (+3.1% in CHF); negative FX impact of CHF 77 millio
Slide 3: E&E: Good development in all KPIs
E&E: Good development in all KPIs January - March ∆% In CHF million Q1/2012 Q1/2011 ∆% in LC Orders received 2 193 2 081 +5.4 +9.5 Revenue 1 904 1 846 +3.1 +7.3 Operating profit (EBIT) 224 212 +5.7 +11.3 in % 11.8 11.5 31.03.12 31.12.11 Order backlog 6 795 6 438 + 5.5 +7.8 Headcount at end of period
Slide 4: Group: Key figures as of March 31, 2012
Group: Key figures as of March 31, 2012 January - March In CHF million Q1/2012 Q1/20111 ∆ in % ∆% in LC Revenue 1 904 1 846 +3.1 +7.3 Operating profit (EBIT) 214 201 +6.5 +12.4 Net income from financing/investing activities 3 12 Profit before taxes 217 213 +1.9 Profit from continuing operations 156
Slide 5: Asia/Pacific: Development in Q1/2012
Asia/Pacific Development in Q1/2012 Emerging markets as growth engine – Strongest market growth in China followed by India – Positive market development in Southeast Asia – Saudi Arabia with biggest growth potential in the Middle East Schindler improved market position – Strong order intake in China
Slide 6: Americas: Development in Q1/2012
Americas Development in Q1/2012 Different pattern for Latin and North America – Good economic environment in Latin America with positive impact on construction activity – Ongoing signs of the upward trend in the North American construction sector Schindler improved market position – Healthy growth a
Slide 7: Europe: Development in Q1/2012
Europe Development in Q1/2012 Mixed market conditions – In southern and eastern Europe, construction activity decreased further – In central & northern Europe, construction activity flat Schindler reinforced market position – In southern Europe, order intake slightly reduced – In northern and centra
Slide 8: Market outlook 2012
Market outlook 2012 Status as of April 2012 – Upward trend in North America; in Europe environment remains challenging – Continued good growth in emerging markets, particularly in China and India – Maintenance business highly competitive Schindler is well positioned – Execution of LEAP program to fu
Slide 9: Group: Outlook
Group: Outlook Status as of April 2012 Objectives 2012 – unchanged – Revenue: ~ +5% in LC – E&E EBIT margin: stretch target: 13% – Group net profit: significantly higher than 2011 © Schindler | Corporate Communications | Page 9
Slide 10: Additional charts
Additional charts © Schindler | Corporate Communications | Page 10
Slide 11: E&E: Quarterly overview 2012/2011
E&E: Quarterly overview 2012/2011 2012 2011 1 2011 1 20111 20111 In CHF million Q1 Q4 Q3 Q2 Q1 Orders received 2 193 2 035 1 979 2 154 2 081 Revenue 1 904 2 155 1 893 1 960 1 846 Operating profit (EBIT) 224 138 237 244 212 in % 11.8 6.4 12.5 12.4 11.5 2011 In CHF million Q4 One time charge LEAP rest
Slide 12: Group: Quarterly overview Q1/2011 to Q1/2012
Group: Quarterly overview Q1/2011 to Q1/2012 2012 20111 In CHF million Q1 Q4 Q3 Q2 Q1 Orders received 2 193 2 035 1 979 2 154 2 081 Revenue 1 904 2 155 1 893 1 960 1 846 Operating profit (EBIT) – E&E 224 138 237 244 212 in % 11.8 6.4 12.5 12.4 11.5 Operating profit (EBIT) – Group 214 130 229 233 201
Slide 13: Megatrends impacting the E&E business positively
Megatrends impacting the E&E business positively Megatrend Navigator General E&E implications Redistribution Industry outlook positive of wealth to emerging Growth in emerging markets markets Increasing global competition Importance of productivity through connectivity New product requirem
Slide 14: Global NI E&E market growth 2010-2011
Global NI E&E market growth 2010-2011 +17% 665k 700 13k units 567k 3k AM 6% Conclusions 81k 600 units EU China contributed AM 7% 500 17% to >80% of the EU growth in 2011 20% 13% 3% 400 AP was 77% of global E&E 300 demand in 2011 AP 200 AP 77% 73% 84% 100 0 2010 China India ROW 2011 (restated) ©
Slide 15: World market new installations 2011
World market new installations 2011 In % 90 Units: 665 000 77 (+17.3% vs 2010) 80 69 Value: CHF 23.6bn 70 (+1.3% vs 2010) 60 50 40 30 20 17 19 12 Units 2011 10 6 Value 2011 2010 0 Americas Europe Asia/Pacific © Schindler | Corporate Communications | Page 15
Slide 16: China: Value creation through above industry growth and improved competitiveness
Value creation through above industry growth and improved competitiveness STRATEGIC FOCUS (LEAP) 1 Above 2 Improving 3 Special Focus industry growth competitiveness Protect & Grow & invest improve • Strategic markets • EI reliability and - China - India efficiency EU-S & USA • New NI products • Proc
Slide 17: LEAP: Investments of CHF 200 million in China and India
LEAP: Investments of CHF 200 million in China and India China Location Jiading district, Shanghai Land size 315,000 sqm Masterplan - Escalator factory - R&D center - Elevator factory - China / AP Head Office India Location Chakan/Pune, Maharashtra Land size 160,000 sqm Masterplan - Elevator factory
Slide 18: PORT: Competitive global product portfolio enables growth
Competitive global product portfolio enables growth Market Global segment product lines 2012 Actions China affordable housing: Schindler 3600 Commodity Schindler 3300 India residential: Schindler 3100 North America: Schindler 3300 NA PORT Market introduction EU, AP, LAM Custom Modular Schindler 5500
Slide 19: LEAP: Capture growth and strengthen competitiveness
LEAP: Capture growth and strengthen competitiveness Program on track Global market environment uncertain Grow and invest in emerging markets Protect and adjust in mature markets Need to accelerate and broaden initiatives to: Capture growth opportunities Strengthen competitiveness Restructuri
Slide 20: Order backlog and revenue per market area
Order backlog and revenue per market area Order backlog 2011 2010 2011: CHF 6 438 million Europe 33% 36% 2010: CHF 6 075 million Americas 33% 32% Asia / Pacific 34% 32% Revenue 2011 2010 Europe 50% 52% 2011: CHF 7 854 million 2010: CHF 8 187 million Americas 28% 29% Asia / Pacific 22% 19% © Schindle
Slide 21: Adoption of IAS 19r – Employee Benefits
Adoption of IAS 19r – Employee Benefits Change in accounting treatment as of 1 January 2012 Old New Actuarial gains and Corridor method, Full recognition in other losses amortization of amounts comprehensive income, no exceeding corridor amortization Interest cost and Different assumptions Consisten
Slide 22: Adoption of IAS 19r – Restatement effects
Adoption of IAS 19r – Employee Benefits Restatement effects 2011 2011 In CHF million Year Q1 EBIT Group 3 0 Net finance result –16 –3 Net profit –10 –2 Total equity –282 –200 Details restatement equity Unrecognized actuarial gains and losses –276 Longevity assumptions CH –100 Deferred tax 94 Net eff
Slide 23: Thank you.
Thank you. Copyright © Schindler. All rights reserved Schindler owns and retains all copyrights and other intellectual property rights in this presentation. It may not be reproduced, modified or copied nor used for any commercial purposes (e.g. manufacturing), nor communicated to any third parties w