Schindler Holding Ltd. · SIX:SCHN
Schindler — FY2018 Earnings Presentation
35 slides from Schindler's earnings presentation, Feb 14, 2019
Slide 1: Full year results presentation 2018
Full year results presentation 2018 February 14, 2019
Slide 2: Agenda
Agenda Market development Strategy and execution Results 2018 Outlook 2019 Full year results presentation 2018 Page 2 14.02.2019 Schindler
Slide 3: Megatrends remain intact
Megatrends remain intact Constantly raising long-term E&E demand Urbanization and demographic change Ongoing demand for latest technology Urban population Growing middle class Persons aged 60+ Ageing EI base Digitization and IoT Energy efficiency is 4.2 bn today and will foster the need for will inc
Slide 4: Global new installations market continued to grow
Global new installations market continued to grow China slightly up +1% NI market size (units) by region +1% +2% -2% 2017 | 2018 2017 | 2018 2017 | 2018 2017 | 2018 Americas EMEA Asia-Pacific Global NI market size (value) by region 18% 18% 64% 100% Sustained growth in Growth in Northern China with s
Slide 5: Global existing installations market significantly increased
Global existing installations market significantly increased Particularly in emerging markets +5% EI market size (installed base in units) by region +2% +7% +2% 2017 | 2018 2017 | 2018 2017 | 2018 2017 | 2018 Americas EMEA Asia-Pacific Global EI market size (installed base in value) by region 26% 34
Slide 6: Outlook 2019: Several headwinds hindering market growth
Outlook 2019: Several headwinds hindering market growth NI market size (units) by region 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 Americas EMEA Asia-Pacific Global US market stable at Sustained growth in China stable at best Trade tensions have high level but market Northern Europe but intens
Slide 7: Agenda
Agenda Market development Strategy and execution Results 2018 Outlook 2019 Full year results presentation 2018 Page 7 14.02.2019 Schindler
Slide 8: Three strategic targets drive our engagement in all areas
Three strategic targets drive our engagement in all areas Creating an unrivaled user experience Operational excellence Strategic priorities Modularity Unique products and services Digitization Global key account management Customer User Quality and Digital Twin Efficient processes and structures exc
Slide 9: We elevate… Growth – our top priority
We elevate… Growth – our top priority Customer Excellence Program Expansion in strategic markets Selective M&A ̶ Net Promoter Score (NPS) ̶ China Harmonized Platform in ̶ Acquisition of >25 service further progressed full swing companies ̶ Around 130 000 customer ̶ Local presence in India with ̶ Par
Slide 10: We elevate… Growth – driven by infrastructure and global key accounts
We elevate… Growth – driven by infrastructure and global key accounts Commercial and residential Public and infrastructure Landmark buildings One Crown Place, office and Beijing Daxing International One Manhattan West, office building, residential building, London, UK Airport, Beijing, China New Yor
Slide 11: We elevate… Profitability – continuously improved EBIT
We elevate… Profitability – continuously improved EBIT +82 +104 1’269 1’187 +81 1’083 +70 1’002 EBIT in CHF million 932 11.7% 11.7% EBIT margin 11.2% 10.7% 10.1% 2014 2015 2016 2017 2018 EBIT before exceptional items, 2014: XJ-Schindler (Xuchang) Elevator Co. Ltd. revaluation gain: CHF 145 million,
Slide 12: We elevate… People – a leading employer in the urban mobility industry
We elevate… People – a leading employer in the urban mobility industry Employee engagement survey Talent management Quality champions program ̶ 97% response rate ̶ Succession planning ̶ Quality leadership along the ̶ Visible performance-driven ̶ Vocational education total Schindler value chain cultu
Slide 13: We elevate… Innovation – process optimization and increased safety
We elevate… Innovation – process optimization and increased safety Schindler CLIMB Lift Breakthrough robotic system for elevators Building Information Management (BIM) Innovative installation meets First mover in the construction Full digital integration of elevators efficient operation industry wit
Slide 14: We elevate… Innovation – Schindler R.I.S.E (video)
We elevate… Innovation – Schindler R.I.S.E (video) Full year results presentation 2018 Page 14 14.02.2019 Schindler
Slide 15: We elevate… Digitization – enhanced smart urban mobility
We elevate… Digitization – enhanced smart urban mobility 6 47 Schindler Ahead countries rolled out products launched with connected Cubes We connect passengers every day >20 >1000 customer sales people launch events trained Full year results presentation 2018 Page 15 14.02.2019 Schindler
Slide 16: We elevate… Modularity – making things simple!
We elevate… Modularity – making things simple! Seamless product offering Reduce complexity Competitiveness Product offering tailored to market Less component variants, less New strategic sales approach and needs and increasing customer effort for design changes, and higher cost savings for increased
Slide 17: We elevate… Sustainability – six focus areas and ambitious targets
We elevate… Sustainability – six focus areas and ambitious targets We elevate people We elevate our world Full year results presentation 2018 Page 17 14.02.2019 Schindler
Slide 18: Agenda
Agenda Market development Strategy and execution Results 2018 Outlook 2019 Full year results presentation 2018 Page 18 14.02.2019 Schindler
Slide 19: Global markets in 2018
Global markets in 2018 Key developments Global demand for new installations generated slight growth (in units) ‒ China: slightly up but remained highly competitive ‒ India: returned to solid growth ‒ Europe: continued positive trend (with the exception of Turkey) ‒ USA: healthy market continued on a
Slide 20: Highlights January – December 2018
Highlights January – December 2018 Global position strengthened ‒ Growth across all regions and product lines ‒ High proportion of major projects supported by global key account management ‒ Accelerated innovation and strategic investments strengthen global position ‒ Raw material costs and wage inf
Slide 21: Asia-Pacific: China
Asia-Pacific: China Slight growth in new installations Slowdown in economic growth ‒ Increased uncertainties as a result of the trade dispute with the USA ‒ Construction sector still impacted by preventative measures against real estate speculation ‒ Growth primarily in the residential segment; comm
Slide 22: Asia-Pacific: other markets
Asia-Pacific: other markets Strong growth in India, Southeast Asia with differing trends Overall positive market development ‒ Construction sector benefited from urbanization, and investments in infrastructure and social housing ‒ India: positive macroeconomic environment supported by policies and r
Slide 23: Americas
Americas Growth across the region Improving conditions in Latin America ‒ North America: sustained growth supported by the residential segment and infrastructure ‒ Latin America: overall positive demand; Brazil with first signs of recovery Schindler performance ‒ North America: strengthened market p
Slide 24: EMEA
EMEA Positive trend continued throughout Europe Growth in the North and in the South ‒ Northern Europe: solid markets, particularly in the residential segment; challenges in project execution in some countries ‒ Southern Europe: robust growth driven by the residential segment; sharp decline in Turke
Slide 25: Key figures as of December 31, 2018 October – December
Key figures as of December 31, 2018 October – December In CHF million Q4 2018 Q4 2017 Δ% Δ% in LC Order intake 3 016 2 906 3.8 6.0 Revenue 2 940 2 820 4.3 6.5 Operating profit (EBIT) 343 327 4.9 8.0 in % 11.7 1) 11.6 2) Financing and investing activities –14 3) –6 Profit before taxes 329 321 2.5 Inc
Slide 26: Key figures as of December 31, 2018 January – December
Key figures as of December 31, 2018 January – December In CHF million 2018 2017 Δ% Δ% in LC Order intake 11 669 10 989 6.2 6.6 Revenue 10 879 10 179 6.9 7.3 Operating profit (EBIT) 1 269 1 187 6.9 7.5 in % 11.7 1) 11.7 2) Financing and investing activities –17 3) –21 Profit before taxes 1 252 1 166
Slide 27: Order backlog and revenue by region
Order backlog and revenue by region Robust order backlog provides solid base for future growth Revenue growth by region (in LC) Order backlog 2018: CHF 8 618 million (+9.7% in LC) 8% 2017: CHF 8 106 million 7% 2018 2017 Asia-Pacific 38% 39% 6% Americas 31% 30% EMEA 31% 31% 5% 4% 3% Revenue 2018: CHF
Slide 28: Dividend proposal of CHF 4.00
Dividend proposal of CHF 4.00 In CHF 6.00 Special dividend 5.00 Ordinary dividend 4.00 3.00 2.00 1.00 0.00 2014 2015 2016 2017 2018 1) Pay-out ratio in % 41.4 41.9 70.0 52.0 45.5 1) Pay-out ratio in % of earnings per registered share/participation certificate. Full year results presentation 2018 Pag
Slide 29: Agenda
Agenda Market development Strategy and execution Results 2018 Outlook 2019 Full year results presentation 2018 Page 29 14.02.2019 Schindler
Slide 30: IFRS 16 – Leases: Changes and impacts
IFRS 16 – Leases Changes and impacts Until end of 2018: Cost for most of the lease contracts have been expensed in other operating expenses Starting from 2019: Lease contracts will be recognized in the balance sheet as a right-of-use asset and related lease liability Transition: Schindler applies th
Slide 31: Outlook 2019
Outlook 2019 Status as of February 14, 2019 Business environment Schindler guidance for FY 2019 ̶ Long-term growth drivers remain intact ̶ Focus on profitable growth unchanged ̶ Some key elevator and escalator markets ̶ Revenue growth of between 4% to 6% in expected to slow down in 2019 local curren
Slide 32: Financial calendar
Financial calendar 2019 2020 Full year results media conference February 14 February Closing date of shareholders' register March 20 Ordinary General Meeting Schindler Holding Ltd. March 26 March 19 First trading date ex-dividend March 28 1) Date of Schindler Holding Ltd. dividend payment April 1 1)
Slide 33: Additional charts
Additional charts Full year results presentation 2018 Page 33 14.02.2019 Schindler
Slide 34: Balance sheet
Balance sheet In CHF million 31.12.2018 1) in % 31.12.2017 in % Cash and cash equivalents 2 248 22.5 1 709 19.8 Other current assets 4 252 42.7 3 771 43.7 Total current assets 6 500 65.2 5 480 63.5 Non-current assets 3 476 34.8 3 146 36.5 Total assets 9 976 100.0 8 626 100.0 Current liabilities 4 74
Slide 35: Quarterly overview 2018/2017
Quarterly overview 2018/2017 In CHF million 2018 1) 2017 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Order intake 3 016 2 784 3 047 2 822 2 906 2 737 2 739 2 607 Revenue 2 940 2 684 2 782 2 473 2 820 2 590 2 509 2 260 Operating profit (EBIT) 343 313 332 281 327 302 298 260 in % 11.7 11.7 11.9 11.4 11.6 11.7 11.9 11.5 F