Jost Werke Se · XETR:JST
Jost Werke — Investor Day (September 2024)
17 slides from Jost Werke's investor day presentation, Sep 10, 2024
Slide 1: Capital Markets Day 2024 – Delivering Value
CAPITAL MARKETS DAY 2024 Delivering Value Oliver Gantzert – CFO JOST Werke SE – September 10, 2024
Slide 2: Proven long-term value creation and performance enhancement
Proven long-term value creation and perfomance enhancement FY 2017 (IPO) FY 2023 SALES 701m€ » 1,250m€ FY 2017 (IPO) FY 2023 ADJ. EPS 2.99€ » 6.24€ TSR since IPO FREE CASHFLOW FY 2017 (IPO) +45m€ FY 2017 (IPO) » FY 2023 +112.3m€ FY 2023 93% DIVIDEND 7.4m€ » 22.4m€ Annualized (~) ROCE FY 2017 (IPO) 1
Slide 3: Committed to fulfil our targets
Committed to fulfil our targets Mid-term ambitions announced at the last Capital Markets Day Outperform relevant markets by SALES 2-3% p.a. = mid- to high single digit CAGR sales growth CAGR achieved since last CMD 11% ADJ. EBIT MARGIN Achieve adj. EBIT margin range of 10.0% - 11.5% through the cycl
Slide 4: Successful H1 2024 despite cyclical markets challenges
Successful H1 2024 despite cyclical markets challenges Financial Results H1 2024 597 68 m€ sales m€ adj. EBIT 11.5% 0.99x Adj. EBIT margin leverage 19.7% 1.3 ROCE cash conversion Leverage = Net debt/LTM adj. EBITDA (incl. acquisitions), Cash Conversion = Free cash flow/adjusted profit after taxes JO
Slide 5: JOST has grown profitably and with high capital efficiency
JOST has grown profitably and with high capital efficiency - creating sustainable value for shareholders ADJ. EPS IN EUR/SHARE ROCE IN % +66% 5.4 EUR/ Share ≈19% ≈19% 3.3 (average) (average) EUR/ Share Ø 2017-2020 Ø 2021-2023 2017-2020 2021-2024H1 (excl. Corona) JOST Werke SE I CAPITAL MARKETS DAY 2
Slide 6: Our ambition is to lift JOST to the next profitability level
Our ambition is to lift JOST to the next profitability level through a combination of organic growth and M&A SALES >2bn AMBITION IN M€ 1,265 1,250 >7% sales growth p.a. 1,049 ~7% (incl. M&A) 701 755 736 794 CAGR 50% Organic growth 2017 2018 2019 2020 2021 2022 2023 until 2030 50% M&A ADJ. EBIT MARGI
Slide 7: Financial strategy sets clear targets to increase financial strength
JOST’s financial strategy sets clear targets to increase financial strength and support profitable growth LEVERAGE (NET DEBT/ADJ. EBITDA) CAPEX IN % (EXCL. M&A) ROCE IN % (CAPITAL EXPENDITURE/SALES X 100) (ADJ. EBIT/CAPITAL EMPLOYED X 100) 1.99x 2.0x 2.7% 21.0% 2.7% 2.6% 2.6% 19.8% 20.2% 18.4% 18.2%
Slide 8: Disciplined capital allocation to support value growth
Disciplined capital allocation to support value growth PRIORITIES FOR EFFICIENT CAPITAL ALLOCATION 01 | Value accretive M&As FCFF 2018-2023 (incl debt and received dividends) Other 02 | Appropriate deleveraging Dividends 3% 17% 03 | Dividend payments 04 | Share buybacks Debt 10% 70% M&A JOST Werke S
Slide 9: Maintain strong cashflow profile while growing
Maintain strong cashflow profile while growing NET WORKING CAPITAL AMBITION (NET WORKING CAPITAL/SALES X 100) Net Working Capital 18.5% range of 17.5% to 18.5% 18.6% 18.5% 18.2% 18.0% 19.0% 18.0% 16.4% 17.5% 2017 2018 2019 2020 2021 2022 2023 until 2030 CASH CONVERSION RATE AMBITION (FREE CASHFLOW/A
Slide 10: Quicke acquisition showed execution of synergies and value creation
Quicke acquisition showed execution of synergies and value creation for our shareholders JOST INCL. QUICKE SHARE OF SALES vs. SHARE OF ADJ. EPS IN % SALES AND IN % ADJ. EPS EXPOSURE TO PROMISING OFF-HIGHWAY Sales Adj. HIGHER DIVERSIFICATION EPS TECHNOLOGY STEP UP MARGIN ACCRETIVE EXPANSION Ø 25% IRR
Slide 11: Committed to create shareholder value
Committed to create shareholder value ADJ. EPS DIVIDEND DEVELOPMENT RATIO (ADJ. NET INCOME/#SHARES) (DIVIDEND PER SHARE IN EUR/SHARE) >€10.0 > €2.50 per share per share €6.24 €1.50 per share per share (historical Ø25% adj. EPS, excl. AGM 2020) 2023 until 2030 2023 until 2030 AMBITION AMBITION CAGR a
Slide 12: Sustainable performance – Integrating ESG into strategy, governance and financing
Sustainable performance – Integrating ESG into strategy, governance and financing Commitment to long-term sustainable performance Management compensation linked to ESG targets ✓ Corporate financing linked to ESG targets ✓ Engage and collaborate with stakeholders to understand and improve ESG topics
Slide 13: Connecting technology with purpose
Connecting technology with purpose ESG at JOST MITIGATE CLIMATE CHANGE Reduce CO2 Scope 1 & 2 emissions per production hour 2023: CO2 emissions down by 53% by 2030 by -46% vs. 2020 PROMOTE DIVERSITY AND INCLUSION Increase % of women in management positions 2023: 18% up from 14% to 25% by 2030 in 202
Slide 14: CFO Organization fully committed to support JOST's mid-term goals
CFO Organization fully committed to support JOST’s mid-term goals BUSINESS CFO ORGANIZATION ▪ Recurring M&A ▪ Managing complexity via enhanced IT ▪ Growth in North America and APA organization and platforming ▪ Growth in Agriculture & ▪ Centralisation of Back-Office Services and Construction & Off-H
Slide 15: Key investment highlights
Key investment highlights Technology leader with strong brands and high market shares worldwide ✓ Flexible and asset light business model with proven resilience through industry cycles ✓ Excellent track record of delivering results ✓ Proven value creation through M&A with a solid pipeline with high
Slide 16: Disclaimer
DISCLAIMER THIS PRESENTATION IS CONFIDENTIAL AND MUST NOT BE RELEASED, PUBLISHED, TRANSMITTED OR DISTRIBUTED, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO OR WITHIN THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This presentation
Slide 17: Financial screening criteria
FINANCIAL SCREENING CRITERIA On- and off Key guardrails On-highway Off-highway for large transactions highway Best owner principle 300- Purchase 50- 5- 300 500 Mid-term value accretive price 200 post-synergies in m€ High returns: ROCE > 18% mid-term A| Technology A| Strengthening Sizable, scalable A