Slide 1: Investor Presentation – Q3 2020 Update
INVESTOR PRESENTATION ̶ Q3 2020 UPDATE INVESTOR PRESENTATION JOST WERKE AG
Slide 2: 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 3: JOST: A Leading Global Supplier of Mission Critical Solutions for Commercial Vehicles
JOST: A Leading Global Supplier of Mission Critical Solutions for Commercial Vehicles Towing hitch Container 736m € 77m € Turntable Drawbar technology sales adj. EBIT Tipping cylinder Cross member in 2019 in 2019 Tag axle Axles Forced steering Varioblock Front loader 23 3,430 Landing gear production
Slide 4: Strong Products Driving Brand Desirability and Pulling Demand
Strong Products Driving Brand Desirability and Pulling Demand With the Push & Pull sales strategy end users generate additional demand by actively asking OEMs for JOST’s products Truck OEMs Fleet operators WORLDWIDE LEADING SUPPLIER WITH HIGH MARKET SHARES AND COSTUMER LOYALTY Trailer OEMs Push & Pu
Slide 5: High Aftermarket Content and Wide Diversification by Application and Region
High Aftermarket Content and Wide Diversification by Application and Region Support Business Resilience FIFTH WHEELS LANDING GEAR REGIONAL MIX IN 2019 in % of sales (incl. JV) South America (incl. JV): 8% North America: 21% Europe: 47% After market value 50% of After market value 200-300% Asia Pacif
Slide 6: Growth Engine: Strong Market Fundamentals Driving Future Growth
Growth Engine: Strong Market Fundamentals Driving Future Growth TRUCK PRODUCTION BY REGION (million units) TRAILER PRODUCTION BY REGION (million units) TRACTOR PRODUCTION BY REGION (million units) CAGR: 9% CAGR CAGR: 7% CAGR CAGR: 7% CAGR 2020-2025 2020-2024 2020-2023 2.2 3.5 0.9 1.2 2.1 2.6 6% 6% 7
Slide 7: Growth Engine: Upselling through Innovation
Growth Engine: Upselling through Innovation Increasing value-add for customers and generation growth through clear innovation road -map Future growth Autonomous systems AUTONOMOUS DOCKING SYSTEMS • Pre-requisite for autonomous driving • Efficiency boost for fleet operators • Advanced smart system so
Slide 8: Growth Engine: Regional Growth and Product Expansion
Growth Engine: Regional Growth and Product Expansion Increasing value-add for customers through innovation • Further market share gains with OEMs in North America REGIONAL • Growth opportunities in emerging markets driven by structural and legislative changes GROWTH • Localization of existing produc
Slide 9: Flexible and Asset Light Business Model Allows a Quick Adaptation
Flexible and Asset Light Business Model Allows a Quick Adaptation to Changing Market Environment KEY PARTS OF THE VALUE CHAIN Number of product variants1 20 100 100 1,500 On demand Purchased Mech. Stage Design/ Forging and Quality Logistics Vehicle materials/ processing/ Coating Assembly Painting en
Slide 10: JOST Investment Case Summary
JOST Investment Case Summary BUSINESS MODEL EARNINGS CASH FLOW • Strong brands with high OEM (push) and • Sustainable market growth thanks to global • Strong balance sheet and high cash generation end-costumer (pull) loyalty worldwide footprint and strong fundamentals • Flexible and asset-light busi
Slide 11: Key Financials
KEY FINANCIALS SOLID PERFORMANCE IN CHALLENGING TIMES 11 JOST Werke AG – INVESTOR PRESENTATION – NOVEMBER 2020
Slide 12: Key Developments – Q3 2020
Key Developments – Q3 2020 Strong Q3 2020 despite ongoing pandemic impact: Supported by the acquisition of Ålö, group sales grew by +11% to €197m and adj. EBIT increased by +7% to €20m year-over-year. Ålö post-merger integration on track: Ålö in line with expectations despite pandemic. Ålö raised gr
Slide 13: Group – JOST Posted Sales and Earnings Growth in Q3 Despite Pandemic
Group – JOST Posted Sales and Earnings Growth in Q3 Despite Pandemic KEY FINANCIALS OVERVIEW KEY HIGHLIGHTS Reported -2.7% +10.7% • For the first time in 2020, JOST’s sales grew compared to prior year’s quarter, Growth up by +11% to €197m. Organic Growth -22.6% -11.4% • Ålö contributed €44m to group
Slide 14: Development of Sales and Earnings by Region
Development of Sales and Earnings by Region SALES SPLIT BY GEOGRAPHY (IN M€) 9M 2020 COMMENTARY YoY YoY Growth (%) CAGR: 3% -2.5% • Acquisition of Ålö contributed positively to JOST’s sales 755 736 701 in 9M(+ €121m) 650 634 146 142 143 -2.1% -2.7% 99 103 129 118 146 162 11.1% 579 564 • Sharp recove
Slide 15: Strong Cash Generation Profile Supported by Low Capex Spend
Strong Cash Generation Profile Supported by Low Capex Spend KEY FINANCIALS OVERVIEW 9M 2020 COMMENTARY Cash 60.9% 76.4% 79.6% 80.1% 82.5% 86.7% 81.9% conversion1 • Cash conversion rate remained strong at 81.9%, Cash flow1 75 80 83 despite the effects of the coronavirus pandemic on the (€m) 60 72 47
Slide 16: Development of Equity Ratio and Net Debt
Development of Equity Ratio and Net Debt BALANCE SHEET OVERVIEW AS AT SEPT. 30, 2020 COMMENTARY 18.4% • The increase in financial liabilities due to the acquisition of Ålö led to a reduction of ROCE1 ROCE and equity ratio as well as to an increase of net debt and leverage, compared to (%) 9.6% year-
Slide 17: Market Outlook for FY 2020
Market Outlook for FY 2020 EUROPE NORTH AMERICA APA TRUCK (30) – (25)% (45) – (40)% 5 – 10% Demand for heavy duty trucks has Production of class 8 trucks has started Expectations for APA improved further improved in H2, but still below 2019 to improve in H2. Dealer stock is going driven by the stron
Slide 18: Outlook 2020
Outlook 2020 Single digit percent decline y-o-y Sales (2019: 736m€) Adj. EBITDA margin Higher than 10.0% Adj. EBIT margin Higher than 7.0% Capex (in % of sales) Approx. 2.5% of sales 18 JOST Werke AG – INVESTOR PRESENTATION – NOVEMBER 2020
Slide 19: Appendix
Appendix Further information 19 JOST Werke AG – INVESTOR PRESENTATION – NOVEMBER 2020
Slide 20: Development of JOST's Sales and Adjusted EBIT by Quarter
Development of JOST’s Sales and Adjusted EBIT by Quarter SALES (€m) ADJ. EBIT (€m) 199 202 192 197 190 191 187 187 181 181 178 175 166 172 171 168 149 147 157 23.7 23.9 22.7 22.5 21.8 21.3 20.3 20.6 19.5 20.3 19.0 16.8 15.9 14.1 14.3 12.6 10.4 11.2 11.1 12.0% 12.5%12.0% 12.5% 11.2% 12.0%11.2% 11.4%
Slide 21: New financing structure after closing acquisition of Ålö
New financing structure after closing acquisition of Ålö DEBT REPAYMENT TIMELINE (€m) COMMENTARY • Long-term and well balanced maturity profile for all current loans 121.5 • 100% of debt is free of a leverage covenants 73.5 78 − 44% of debt is completely covenant free − 56% of debt has a gearing cov
Slide 22: Shareholder Structure and Share Information
Shareholder Structure and Share Information SHAREHOLDER STRUCTURE AS OF NOVEMBER 12, 2020 1 SHARE INFORMATION ISIN DE000JST4000 Trading symbol JST 18.0% Allianz Global Investors German Sec. Code Number (WKN) JST400 58.1% Mondrian Shares in issue 14,900,000 Index SDAX Universal-Investment-Gesellschaf
Slide 23: Industry-leading Margins and Cash Generation Profile
Industry-leading Margins and Cash Generation Profile JOST has continuously outperformed the truck market since 2003 showing high profitability and strong cash generation JOST'S PERFORMANCE OVER TIME Indexed to 2003 STRONG MARGIN RESILIENCE Adjusted EBITDA HIGH CASH FLOW GENERATION margin (%) conver-
Slide 24: Ålö – a global market leader
Ålö – a global market leader Sound financial profile MARKET SHARES FOR AGRICULTURAL FRONT LOADERS ÅLÖ FINANCIALS 30% SEKm 2017A 2018A 2019A Sales 1,804.7 2,002.6 2.060 15% 15% 15% 12% 10% Gross profit 514.2 536.2 565 3% Gross profit margin 28.5% 26.8% 27.4% Ålö STOLL MX Other John CNH Other Adj. EBI
Slide 25: Global Leadership in Branded Products for Vehicle Interface
Global Leadership in Branded Products for Vehicle Interface JOST has approx. 60% global market shares in articulated truck-trailer connection market North America Europe North America Europe #2 #1 Asia-Pacific-Africa #1 #1 Asia-Pacific-Africa #1 #1 South America 2 South America 2 #1 #1 2 Includes Br
Slide 26: Efficient and Flexible Supply and Production Platforms with Wide Geographical Footprint
Efficient and Flexible Supply and Production Platforms with Wide Geographical Footprint 25 23 3,430 EMPLOYEES countries production sites Low cost High cost regions 1; 52% regions 2; 48% PURCHASING BY REGION 4 Low cost High cost countries1; 47% countries2; 53% 1 Low-cost regions include Eastern Europ
Slide 27: Financial Calendar 2020 / Contact
Financial Calendar 2020 Contact Nov. 18 Virtual Road Show Investor Relations Contact: Nov. 25 Virtual Road Show ROMY ACOSTA Nov. 30 Berenberg European Investment Conference (virtual) Head of Investor Relations Financial Calendar 2021 JOST Werke AG SIEMENSSTRASSE 2 Feb. 23 Publication of Preliminary