SAF-Holland SE · XETR:SFQ
SAF-Holland — Q1 2015 Earnings Presentation
24 slides from SAF-Holland's earnings presentation, May 13, 2015
Slide 1: Design the future – First quarter results 2015
Design the future First quarter results 2015 Detlef Borghardt, CEO Wilfried Trepels, CFO May 13, 2015
Slide 2: Executive Summary/ Highlights
Executive Summary/ Highlights Double-digit sales increase • Sales increase of 15.2% to € 271.0 (235.3) mn driven by positive performance and organic 1 growth in all business units. • Approx. two thirds of sales increase related to positive translational FX effects. Disproportionate growth in adjuste
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 280 30 16% 271.0 270 22.6 12% 260 20 17.1 250 +35.7mn 8% 8.3% 240 7.3% 235.3 10 +5.5mn 230 4% 220 210 0 0% Q1/2014 Q1/2015 Q1/2014 Q1/2015 300 24 22.6 16% 271.0 246.7 241.5 20 19.4 19.1 250 235.3 236.2 17.1
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 300 300 +47.2% 28.7 (10.6%) 250 250 19.5 66.1 (8.3%) +14.2% (24.4%) 200 200 57.9 111.0 (24.6%) 45.3 83.0 +33.7%
Slide 5: Business performance – Trailer Systems
Business performance – Trailer Systems Sales in €mn Summary 180 159.6 • Sales increase of 13.3 % equaling € 18.7 mn to € 159.6 160 140 140.9 139.9 133.3 mn in Q1/2015 (Q1/2014: 140.9). 130.3 120 • Solid sales development in Europe despite prior year’s 100 high comparison basis from Q1/2014 related t
Slide 6: Business performance – Powered Vehicle Systems
Business performance – Powered Vehicle Systems Sales in €mn Summary 50 46.6 45.3 • Sales increase of 24.1% to € 45.3 (36.5) mn in Q1/2015. 45 44.0 42.4 • Supportive market environment and favorable capacity 40 36.5 35 utilization levels in Europe. 30 • North America: Solid demand for class 8 trucks
Slide 7: Business performance – Aftermarket
Business performance – Aftermarket Sales in €mn Summary 70 64.4 64.2 66.1 • Sales increase of 14.2 % to € 66.1 (57.9) mn in Q1/2015 59.3 60 57.9 • Effects from weak Russian market largely compensated 50 by sales expansion in additional regions. 40 • Opening of significantly expanded Parts Distributi
Slide 8: Business performance – operating cash flow
Business performance – operating cash flow Operating cash flow before income tax in € mn Summary 28 27.4 • Operating cash flow slightly lower as compared to Q1 2014 24 reaching € 2.3 (3.9) mn in Q1 2015 20 • As expected, higher NWC requirements (+ € 23.2 mn as compared 16 to 31/12/2014). 12 11.1 • N
Slide 9: Financials – balance sheet
Financials – balance sheet in € mn 03/31/2015 % 12/31/2014 % Non-current assets 383.3 52.9% 363.9 56.4% Inventories 135.9 18.8% 122.2 18.9% Other current assets 166.8 23.0% 114.9 17.8% Cash and cash equivalents 38.7 5.3% 44.2 6.9% Total assets 724.7 100.0% 645.2 100.0% Equity 277.6 38.3% 248.6 38.5%
Slide 10: Financials – profit and loss statement
Financials – profit and loss statement in €mn Q1/2015 % Q1/2014 % Comments Sales 271.0 100% 235.3 100% • 15.2% sales growth: Approx. one third organic, two thirds related to translational FX effects Cost of sales -220.0 -81.2% -191.3 -81.3% Gross profit 51.0 18.8% 44.0 18.7% • Slightly improved gros
Slide 11: Financials – cash flow statement
Financials – cash flow statement in €mn Q1/2015 Q1/2014 Result before tax 27.1 12.0 Finance result -6.6 3.3 Amortisation/depreciation 5.2 4.7 Changes in Net Working Capital -24.3 -15.6 Other items cash flow 0.9 -0.5 Operating cash flow before income tax 2.3 3.9 Income tax paid -2.9 -2.3 Operating ca
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 April 2, 2015 Basic data for share as of March 31, 2015 SAF-HOLLAND share price development in Q1/2015 ISIN LU0307018795 • Share price increase of 34.6% compared to 2014
Slide 13: 2020 strategy: Megatrends driving SAF-HOLLAND business
2020 strategy: Megatrends driving SAF-HOLLAND business Mega trends Changing demographics Globalization & Future Road network 2020 strategy until 2030 markets until 2030 development • Significantly growing world • Disproportionate growth of • Global road network has population real exports cp. to GDP
Slide 14: The right drivers for SAF-HOLLAND's business
The right drivers for SAF-HOLLAND’s business Money People Goods Trucks/ Roads Trailers Our demand was, is and will be driven by people, who have the money to buy goods that are transported in trucks on roads. 14
Slide 15: Forecast development of global population
Forecast development of global population People 2015: 7,324,782,000 +15% 2030: 8,424,937,000 40.8% between age 25 and 55 39.8% between age 25 and 55 +12% 2,988,511.000 3,353,125,000 SAF-HOLLAND will profit from a significant growth of the global mid-ager (25 to 55) population featuring increasing
Slide 16: Forecast development of global population by region
Forecast development of global population People POPULATION and CONSUMERS (age 25 - 55) Δ consumers 2015 2030 age 25 - 55 numbers in [000] age 25 active Δ vs. age 25 - active Population Population abs % people - 55 consumers 2015 55 consumers WORLD 7,324,782 40.8% 2,988,511 8,424,937 15.0% 39.8% 3,3
Slide 17: Global income development
Global income development Money Shares of Global Middle Class Consumption, 2000-2050 Goods Middle Class: USD 10 and USD 100 in purchasing power parity (PPP) terms Middle class consumption as a share of global total purchasing power will fall tellingly in Europe as well as in the US while India, Ch
Slide 18: Road network requirements for transport capacity
Road network Trucks/ Trailers TOTAL km km Roads 35,000,000 +24.5% 15,000,000 30,000,000 14,000,000 +56.8% 25,000,000 13,000,000 20,000,000 +4.0% 12,000,000 15,000,000 11,000,000 10,000,000 10,000,000 5,000,000 9,000,000 0 8,000,000 2005 2010 2012 2015 G7 BRICS+MINT TOTAL Heavy investments in road in
Slide 19: SAF-HOLLAND extrapolated sales trend by region until 2030
SAF-HOLLAND extrapolated sales trend by region until 2030 Region Actual 2014 MTP 2020 Trend 2030 Core markets (Europe & North ~90% ~70% ~50% America) Emerging ~10% ~30% ~50% Markets/ RoW ΣΣ 100% 100% 100% SAF-HOLLAND will exploit the opportunities of the global megatrends outlined by organic growt
Slide 20: Strategic implementation measures: areas of priority
SAF-HOLLAND strategic implementation measures: 8 areas of priority China all product areas Middle East/ Africa all product areas Trailer axles & suspensions (OE) Europe Trailer axles & suspensions (OE) North America Truck suspensions (OE) all regions worldwide Bus suspensions (OE) all regions worldw
Slide 21: Strategy 2020: Targets and outlook
Strategy 2020:Targets and outlook Mid term 2020 Sales target € 1.250 bn (organic growth) to € 1.500 bn with cooperations and complementary acquisitions supporting the group’s growth strategy outside the core regions • ~1/3 of sales to emanate from markets outside Europe & North America. • Adj. EBIT
Slide 22: Strategy 2020: Mid- and long-term sales shares and financial targets
Strategy 2020: Mid- and long-term sales shares and financial targets Sales in €mn Sales share in % Adj. EBIT in €mm Europe & NA Emerging markets /RoW 1600 250 120% 160 ≥ 100 - 120 1400 140 1250 100% 10% 1200 120 80% 33% 1000 960 50% 100 800 60% 80 71 600 90% 60 40% 400 67% 40 50% 20% 200 20 0 0% 0 2
Slide 23: Investment highlights / Equity story
Investment highlights / Equity story 1 Megatrends will provide sustainable mid- and long-term growth perspectives and business opportunities 2 SAF-HOLLAND will focus on and stay with its core competencies: “We will stay with where we are really good at” 3 Expand core competencies and applications in
Slide 24: Thank you for your attention.
Thank you for your attention. 24