SAF-Holland SE · XETR:SFQ
SAF-Holland — FY2014 Earnings Presentation
21 slides from SAF-Holland's earnings presentation, Mar 12, 2015
Slide 1: Annual Financial Results 2014
Design the future Annual Financial Results 2014 Detlef Borghardt, CEO Wilfried Trepels, CFO March 12, 2015
Slide 2: Executive Summary
Executive Summary Targets for 2014 successfully reached • Sales increase of 12.0% to €959.7mn (previous year: 857.0) driven by positive 1 development in all regions and Business Units. • Improvement of adj. EBIT to €70.7mn (previous year: 59.3) and adj. EBIT margin to 7.4% (previous year: 6.9). Divi
Slide 3: Business performance – group sales and group adjusted EBIT
Business performance – group sales and group adjusted EBIT Sales in €mn Adjusted EBIT in €mn 1,200 80 16% 70.7 70 1,000 959.7 857.0 59.3 60 12% 800 50 +11.4mn +102.7mn 600 40 8% 7.4% 30 6.9% 400 20 4% 200 10 0 0 0% 2013 2014 2013 2014 300 25 16% 246.7 241.5 250 235.3 236.2 20 19.4 19.1 225.5 219.1 2
Slide 4: Business performance – sales by region and business unit
Business performance – sales by region and business unit Sales in €mn by region Sales in €mn by business unit Europe North America Other Trailer Systems Powered Vehicle Systems Aftermarket 1,200 1200 1,000 +41.9% 99.3 1000 (10.4%) 70.0 (8.2%) 245.8 800 800 +8.5% (25.6%) 226.6 363.9 (26.4%) 169.5 339
Slide 5: Business performance – Trailer Systems
Business performance – Trailer Systems Sales in €mn Summary 160 140.9 139.9 • Sales increase of 12.1% to €544.4mn in 2014 (2013: 485.7). 140 133.3 121.4 127.8 123.9 130.3 • Good market development in Europe as trailer orders in 120 112.6 100 Q4/2013 were postponed to Q1/2014 due to new Euro 6 80 sta
Slide 6: Business performance – Powered Vehicle Systems
Business performance – Powered Vehicle Systems Sales in €mn Summary 50 46.6 • Sales increase of 17.1% to €169.5mn in 2014 (2013: 144.7). 45 44.0 38.4 42.4 • Remarkable sales development in Europe despite pre-buy of 40 37.1 36.5 35 34.3 34.9 trucks in Q4/2013 due to new Euro 6 standard and weaker 30
Slide 7: Business performance – Aftermarket
Business performance – Aftermarket Sales in €mn Summary 70 64.4 64.2 • Sales increase of 8.5% to €245.8mn in 2014 (2013: 226.6) 59.3 60.9 59.3 60 51.6 54.8 57.9 • Positive sales impacts from brand SAUER GERMANY 50 QUALITY PARTS and Parts Distribution Centers. 40 • Expansion of Aftermarket activities
Slide 8: Business performance – operating cash flow
Business performance – operating cash flow Operating cash flow before income tax in €mn Summary 32 • Operating cash flow of €48.8mn in 2014 (2013: 63.0); Q4/2014 28 25.3 27.4 operating cash flow positive with €27.4mn (previous year: 14.2) due 24 to lower NWC (- €14.4mn compared to Q3/2014) whereas t
Slide 9: Financials – balance sheet
Financials – balance sheet in €mn 12/31/2014 % 12/31/2013 % Non-current assets 363.9 56.4% 329.1 61.3% Inventories 122.2 18.9% 100.2 18.7% Other current assets 114.9 17.8% 83.2 15.5% Cash and cash equivalents 44.2 6.9% 23.9 4.5% Total assets 645.2 100.0% 536.4 100.0% Equity 248.6 38.5% 222.2 41.4% O
Slide 10: Financials – profit and loss statement
Financials – profit and loss statement in €mn Q1-Q4/2014 % Q1-Q4/2013 % Comments • Selling expenses include costs for IAA Sales 959.7 100% 857.0 100% Commercial Vehicles which takes place every Cost of sales -785.1 -81.8% -701.4 -81.8% two years. • Constant share of R&D expenses to sales of Gross pr
Slide 11: Financials – cash flow statement
Financials – cash flow statement in €mn Q1-Q4/2014 Q1-Q4/2013 Result before tax 49.0 31.4 Finance result 7.7 17.9 Amortisation/depreciation 19.7 17.9 Changes in Net Working Capital -27.9 -7.2 Other items cash flow 0.3 3.0 Operating cash flow before income tax 48.8 63.0 Income tax paid -12.8 -9.0 Ope
Slide 12: Share price and shareholder structure
Share price and shareholder structure Development of SAF-HOLLAND share price vs. indices (in %) Shareholder Structure (in %) As of February 3, 2015 Basic data for share as of December 31, 2014 SAF-HOLLAND share price development in 2014 ISIN LU0307018795 • Profit takings and general slowdown of the
Slide 13: Targets and outlook: Increase in sales and earnings expected for 2015
Targets and outlook: Increase in sales and earnings expected for 2015 • Sales: €980mn to €1.035bn • Net Working Capital: <10% of sales • Earnings: 9 to 10% adj. EBIT margin • Capex: < 2% of sales Targets 2015 Assumption: no deterioration of political, overall economic and industry-specific conditi
Slide 14: Thank you for your attention.
Thank you for your attention. 14
Slide 15: Appendix
Appendix Sb /tolland
Slide 16: Reconciliation statement for adjusted EBIT
Reconciliation statement for adjusted EBIT in €mn 2014 2013 Result of the period 32.7 24.4 Income tax 16.3 7.1 Financial Result 7.7 17.8 Depreciation and amortization from PPA 6.1 6.1 Restructuring and integration costs 7.9 3.9 Adjusted EBIT 70.7 59.3 in % of Sales 7.4% 6.9% 16
Slide 17: Key financials
Key financials in €mn Q1-Q4/2014 Q1-Q4/2013 Sales 959.7 857.0 Cost of sales -785.1 -701.4 Gross profit 174.6 155.6 Margin 18.2% 18.2% Adjusted result 43.7 28.8 Margin 4.6% 3.4% Adjusted EPS in € 0.96 0.63 Adjusted EBITDA 84.3 71.1 Margin 8.8% 8.3% Adjusted EBIT* 70.7 59.3 Margin 7.4% 6.9% Operating
Slide 18: Key financial ratios and figures
Key financial ratios and figures Net financial debt (€mn) Summary 350 • Significantly improved financial profile through capital increases 300 289.3 302.1 • Reduction of interest costs • Further improvement of the equity ratio 250 • Further reduction of net debt 200 • Long-term safeguarding of liqui
Slide 19: Gap between BU TS target margin for 2015 and current adj. EBIT margin
Gap between BU TS target margin for 2015 and current adj. EBIT margin needs to be closed by implementation of measures • Sales: €980mn to €1.035bn • Net Working Capital: <10% of sales Targets 2015 • Earnings: 9 to 10% adj. EBIT margin • Capex: < 2% of sales Growth potential Trailer Systems for 2015
Slide 20: Implementation of measures to increase sales and adj. EBIT margin of BU TS
Implementation of measures to increase sales and adj. EBIT margin of BU TS until 2015 started in Q3/2013 Measures Content Realization of additional Explore additional regional markets which are not yet in sales focus sales increase market potentials (ROW) Introduction of new Development of and go-to
Slide 21: New financing agreement of SAF-HOLLAND
New financing agreement of SAF-HOLLAND Former financing structure New financing structure Corporate Bond Term Loan A Rev. Credit Lines Corporate Bond Rev. Credit Lines Convertible Bond 75mn 64.2mn 121.4mn 75mn 110.9mn 100.2mn EUR EUR EUR EUR EUR EUR 04 / 2018 10 / 2017 10 / 2017 04 / 2018 10 / 2019