Knorr-bremse Ag · XETR:KBX
Knorr-bremse — Q3 2022 Earnings Presentation
34 slides from Knorr-bremse's earnings presentation, Nov 10, 2022
Slide 1: Financial Results Q3/22
FINANCIAL RESULTS Q3/22 FRANK WEBER I CFO AND EXECUTIVE BOARD SPOKESMAN NOVEMBER 10, 2022
Slide 2: Summary of take-aways
Summary of take-aways New CEO announced: Marc Llistosella to join Knorr-Bremse Solid demand in EU and NA ongoing, China remains on low levels Global economic environment challenging but price increases and cost measures support sequential margin improvement qoq ESG focus: sustainability-linked bond
Slide 3: Good demand ex China in a challenging global environment
Good demand ex China in a challenging global environment Current situation Until YE22 No cancellations, but postponements ongoing Good OI development expected to continue Slightly increasing ridership globally AM: further improvement of rail traffic expected Good tender development in EU, NA and APA
Slide 4: RVS – Demonstrating innovation leadership at InnoTrans
RVS – Demonstrating its innovation leadership position at the world's largest railway trade fair InnoTrans Examples ElectroAct System (Electromechanical Brake) FreightLink (Digital Automated Coupler) TRAIN OPERATIONS SMART SOLUTIONS & ECOLOGICAL TRAFFIC FLOW & MAINTENANCE APPLICATIONS FOOTPRINT 4
Slide 5: CVS – Best-in-class products at IAA Transportation and Automechanika
CVS – Fascinating its customer with best-in-class products and setting clear focus areas on IAA Transportation and Automechanika IAA Transportation HIGHLY AUTOMATED DRIVING TRUCK MOTION CONTROL Focus e.g., Redundant Brake System REDUNDANT Redundant SYSTEMS Steering System Redundant (e.g., Electric P
Slide 6: Financial highlights Q3/22
Financial highlights Q3/22 REVENUES OF € 1.79bn 11.3% op. EBIT MARGIN (+12.8% yoy) (PY: 13.6%) € 855m € 938m 15.6% 9.2% € 38m FREE CASHFLOW (PY: € 189m) 25% Cash Conversion Rate ORDER INTAKE € 1.88bn ORDER BOOK € 6.88bn (+30.9% yoy) (+37.4% yoy) 6
Slide 7: NWC – supporting supply chain and delivery capability
NWC – supporting supply chain and delivery capability (“Customer First”) BUT measures implemented for improvements until YE22 CapEx NWC ROCE (annualized) €m % of sales €m Scope of days 81.4 % 5.2% 4.8% 25.3% 60.5 1,568 82 85 1,122 16.1% Q3/21 Q3/22 30.09.21 30.09.22 30.09.21 30.09.22 ▪ Q3/22: Absolu
Slide 8: FCF development weaker yoy due to higher NWC
FCF development weaker yoy due to higher NWC but sequential improvement will accelerate in Q4/22 Free Cashflow1 Cash Conversion Rate €m 189 126% ▪ Turnaround: sequential improvement of Free Cashflow as expected but still impacted by challenging macro-environment ▪ Built-up of inventory due to ongoin
Slide 9: RVS – Strong order book secures high visibility
RVS – Strong order book secures high visibility for the quarters ahead Order intake Order book €m +40.4% Stronger OI in all regions 0.92 Book-to-bill 1.03 ▪ EU: OE stronger in regional, commuter and locos; 4,844 freight comparable on high level; AM comparable yoy +18.7% ▪ APAC: Overall slightly lowe
Slide 10: RVS – Good revenue growth while margins reflect China and Russia
RVS – Good revenue growth while margins reflect impact from China and Russia Revenue op. EBIT / margin €m Revenue benefits from good OI in the last quarters 17.6% ▪ AM: Driven by strong development in EU and +6.2% 15.6% APAC; revenue share at 48% (vs. 45% in Q3/21) 45 855 ▪ EU: Overall flat; OE lowe
Slide 11: CVS – Solid order intake and strong order book
CVS – Solid order intake and strong order book fuel resilience Order intake Order book €m Solid order intake despite low TPR in China +29.7% 0.89 Book-to-bill 1.07 ▪ EU & NA: Market demand remains on high level, short-term shift of orders into coming months 2,035 +43.9% continues, still no major can
Slide 12: CVS – Revenue up and sequential improvement of profitability
CVS – Revenue up and sequential improvement of profitability Revenue op. EBIT / margin €m Revenue driven by higher pricing despite flat TPRs ▪ EU & NA: Price increases drive revenue growth +19.5% ▪ APAC: Only slight recovery of TPR sequentially 69 938 10.8% due to ongoing Zero-Covid policy in CN, In
Slide 13: Guidance FY22 confirmed
Guidance FY22 confirmed Revenue Operating EBIT margin Free Cashflow Assumptions €m ▪ No significant further deterioration in geopolitical and economic conditions 6,900-7,200 compared to current situation 6,706 600 ▪ No significant deterioration in gas and 13.5% 300-500 energy supply 10.5-12.0% ▪ Cur
Slide 14: Strong actions in place to drive financial performance
Summary– strong actions in place to drive financial performance without compromises on innovation Price increases Rock-solid Portfolio Focus on strategic and cost measures balance sheet to management and accretive will compensate master any potential started to improve M&A opportunities inflation ov
Slide 15: Q&A / Backup
Q&A / Backup
Slide 16: Financial calendar: upcoming events and FY23 release dates
Financial calendar: upcoming events and FY23 release dates Date Event November 15, 2022 post Q3/22 Roadshow (Credit Suisse), Zurich December 1, 2022 Société Générale Premium Review Conference, Paris December 5, 2022 Goldman Sachs Conference, London (IR) December 6, 2022 Berenberg Pennyhill Conferenc
Slide 17: Backup
a) KNORR-BREMSE Backup
Slide 18: Group Q3/22 – Order intake and order book
Group Q3/22 – Order intake and order book Order intake Order book €m €m 0.90x Book-to-bill 1.05x 37.4% +30.9% 6,878 119 1,879 317 8 5,007 1,435 RVS RVS 877 4,844 22.1% RVS RVS 3,451 739 DSB CVS CVS € 8m (Q3/22) 1,003 CVS 697 CVS 2,035 1,569 Q3/21 Organic M&A FX Q3/22 30.09.21 30.09.22 Book-to-bill 1
Slide 19: Group Q3/22 – Revenue
Group Q3/22 – Revenue Revenue €m By business By region +12.8% 1,792 114 1,792 23.5% 42 SA 81 8 1,589 1,589 34 465 Asia/ 2.2% Pacific RVS 455 RVS 5.1% 855 805 483 NA 44.3% 335 CVS DSB 766 4.7% 802 EU CVS 938 € 8m (Q3/22) 785 Q3/21 Organic M&A FX Q3/22 Q3/21 Q3/22 19
Slide 20: Group Q3/22 – Profitability and EPS
Group Q3/22 – Profitability and EPS op. EBITDA / margin op. EBIT / margin EPS2 €m € 18.1% -1.1% 15.7% 0.91 0.90 13.6% -2.0% 11.3% 287 15 282 0 -6.1% -20 216 -7.0% 11 203 0 -25 -11.4% DSB € 0.3m1 (Q3/22) DSB € 0.3m1 (Q3/22) Q3/21 Org. M&A FX Q3/22 Q3/21 Org. M&A FX Q3/22 Q3/21 Q3/22 1) Before PPA 2)
Slide 21: Group 9M/22 – Order intake and order book
Group 9M/22 – Order intake and order book Order intake Order book €m €m 1.01 Book-to-bill 1.14 +37.4% +17.4% 6,878 298 5,917 548 33 5,038 RVS 5,007 10.9% 3,005 RVS RVS RVS 4,844 2,190 3,451 EVAC € 25m (H1/22) CVS DSB 2,913 CVS € 8m (Q3/22) CVS 2,850 CVS 2,035 1,569 9M/21 Organic M&A FX 9M/22 9M/21 9
Slide 22: Group 9M/22 – Revenue
Group 9M/22 – Revenue Revenue €m By business €m By region y-o-y growth +3.8% 267 5,198 5,198 5,008 31 5,008 SA 88 114 -108 29.4% 1,292 Asia/ RVS RVS 1,504 Pacific -2.2% -14.1% 2,460 2,453 1,322 1,041 26.9% NA EVAC € 20m (H1/22) DSB CVS € 11m (Q3/22) CVS 2,549 2,747 2,375 4.0% 2,471 EU 9M/21 Organic
Slide 23: Group 9M/22 – Profitability
Group 9M/22 – Profitability op. EBITDA / margin op. EBIT/ margin €m 18.4% 14.2% 15.2% -13.9% 10.9% 919 -20.2% 27 792 712 2 RVS RVS 568 535 -157 19 361 RVS RVS RVS -161 -2 RVS -17.1% 472 443 390 RVS 301 RVS -22.6% 373 EVAC 326 EVAC CVS € 1m1 (H1/22) € -2m1 (H1/22) CVS CVS CVS 400 DSB DSB 237 345 299
Slide 24: Group 9M/22 – FCF, CapEx, NWC and ROCE
Group 9M/22 – FCF, CapEx, NWC and ROCE OCF & FCF CapEx NWC ROCE (annualized) €m OCF FCF €m % of sales €m Scope of days % 81.4 4.4% <100% 4.2% <100% 25.3% 60.5 1,568 489 226 1,122 16.1% 297 212 -31 -229 9M/21 9M/22 30.09.21 30.09.22 9M/21 9M/22 9M/21 9M/22 24
Slide 25: RVS 9M/22 – Order intake and order book
RVS 9M/22 – Order intake and order book Order intake Order book €m +40.4% 0.89 Book-to-bill 1.23 4,844 +37.3% 33 122 3,006 661 3,451 2,190 30.2% EVAC € 25m (H1/22) DSB € 8m (Q3/22) 9M/21 Organic M&A FX 9M/22 30.09.21 30.09.22 25
Slide 26: RVS 9M/22 – Revenue and profitability
RVS 9M/22 – Revenue and profitability Revenue op. EBITDA / margin op. EBIT / margin €m 21.7% -0.3% 19.2% 18.0% 2,460 103 2,453 15.2% 28 -11.8% -138 535 -15.8% 0 13 472 443 -5.6% -76 10 373 -14.3% -78 -2 -17.7% EVAC € 20m (H1/22) EVAC EVAC DSB € -1m1 (H1/22) € -2m1 (H1/22) € 8m (Q3/22) DSB DSB € 0.7m
Slide 27: CVS 9M/22 – Order intake and order book
CVS 9M/22 – Order intake and order book Order intake Order book €m 1.12 Book-to-bill 1.06 +2.2% +29.7% 2,850 175 2,913 0 2,035 -112 1,569 -3.9% 9M/21 Organic M&A FX 9M/22 30.09.21 30.09.22 27
Slide 28: CVS 9M/22 – Revenue and profitability
CVS 9M/22 – Revenue and profitability Revenue op. EBITDA / margin op. EBIT / margin €m 15.7% +7.7% 12.5% 11.7% 8.6% 164 2,747 -13.8% 400 -20.6% 33 0 2,549 15 345 299 0 -70 0 10 237 1.3% -71 -17.5% -23.9% 9M/21 Organic M&A FX 9M/22 9M/21 Organic M&A FX 9M/22 9M/21 Organic M&A FX 9M/22 op. EBITDA marg
Slide 29: Group – Income statement
Group – Income statement 2021 2022 2021 2022 €m Q1/21 Q2/21 Q3/21 Q4/21 2021 Q1/22 Q2/22 Q3/22 9M/21 9M/22 Revenues 1,691.5 1,727.4 1,589.2 1,697.5 6,705.6 1,669.4 1,736.7 1,792.0 5,008.1 5,198.0 Change in inventory of unfinished/finished products 30.0 22.2 17.9 -31.1 39.1 54.0 8.3 43.6 70.2 105.9 O
Slide 30: Group – Cashflow (shortened)
Group – Cashflow (shortened) 2021 2022 2021 2022 €m Q1/21 Q2/21 Q3/21 Q4/21 2021 Q1/22 Q2/22 Q3/21 9M/21 9M/22 Net cash flows from/used in operating activities 27.6 196.1 265.1 486.8 975.5 -189.6 36.7 121.6 488.7 -31.3 Net cash flows from/used in investing activities -78.8 -186.9 -71.0 -197.6 -534.4
Slide 31: Group – Balance sheet / assets
Group – Balance sheet / assets 2021 2022 €m 31.03.2021 30.06.2021 30.09.2021 31.12.2021 31.03.2022 30.06.2022 30.09.2021 Assets Intangible assets and goodwill 899.2 967.5 986.9 1,005.8 1,016.5 1,017.4 1,068.5 Property, plant and equipment 1,589.1 1,611.6 1,618.1 1,790.4 1,798.8 1,786.0 1,850.5 Inves
Slide 32: Group – Balance sheet / liabilities
Group – Balance sheet / liabilities 2021 2022 €m 31.03.2021 30.06.2021 30.09.2021 31.12.2021 31.03.2022 30.06.2022 30.09.2021 Equity Subscribed capital 161.2 161.2 161.2 161.2 161.2 161.2 161.2 Capital reserves 13.9 13.9 13.9 13.9 13.9 13.9 13.9 Retained earnings 13.3 13.3 13.3 13.3 10.3 10.0 10.3 O
Slide 33: Investor relations contact
Investor relations contact Andreas Sophia Spitzauer Kursawe +49 89 3547 182310 +49 89 3547 187311 +49 175 5281320 +49 151 62330709 Andreas.Spitzauer@knorr-bremse.com Sophia.Kursawe@knorr-bremse.com 33
Slide 34: Disclaimer
Disclaimer IMPORTANT NOTICE 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 an invitation to subscribe for, underwrite or otherwise acquire, an