Knorr-bremse Ag · XETR:KBX
Knorr-bremse — Q4 2024 Earnings Presentation
38 slides from Knorr-bremse's earnings presentation, Feb 20, 2025
Slide 1: Preliminary Financial Results 2024
PRELIMINARY FINANCIAL RESULTS 2024 MARC LLISTOSELLA I CEO FRANK WEBER I CFO February 20, 2025
Slide 2: BOOST Greenfield
KNORR-BREMSE IGOS5 = 2025
Slide 3: Key take-aways
Key take-aways Global challenges in 2024/2025 seen as opportunity to demonstrate KB’s resilience and good base to execute structural changes RVS: revenue share >50% again and growing profitably BOOST well underway Superior financial profile and long-term financing secured Governance further improved
Slide 4: Guidance FY24 achieved
Guidance FY24 achieved Revenue [€m] Op. EBIT Margin Free Cashflow [€m] Additional achievements Record order book of € >7bn 11.5-13.0% provides solid foundation for 12.3% 7,800-8,100 2025 and beyond 7,883 730 550-650 Record operating FCF2 CCR3: 113% (Target: 80-90%) Net Debt/ EBITDA of 0.70 a
Slide 5: BOOST Brownfield/Greenfield
BOOST BROWNFIELD/GREENFIELD Brownfield (Housekeeping) Greenfield (Expansion) 2023 2024 2025 2026 2027 Globally >1000 measures implemented Sale of Kiepe Electric SELL IT Sale of Safety Direct Sale of R.H. Sheppard Sale of GT Sale of 2+ RVS assets1 R&D and CapEx prioritization → reduction of CapEx rat
Slide 6: SELL IT – Ahead of schedule
BOOST BROWNFIELD SELL IT – Ahead of schedule Revenue Margin Recap Strategy Update in 07/23 Project status volume improv.1 Carve Investor Signing / out Approach Closing € 7.1bn 4 entities2 sold >€ 400m ~80bps Keep or → ~60% completed further € 5.7bn improve SELL IT Well 2+ entities >€ 350m ~50bps 202
Slide 7: FIX IT – Strong structural changes implemented
BOOST BROWNFIELD FIX IT – Strong structural changes implemented Implemented / Recap Strategy Update in 07/23 NEW in implementation CVS Group € 7.1bn ▪ Installation global responsibilities ▪ Regional production footprint ▪ Prioritization of R&D projects improvements: e.g. Japan (CVS), India (RVS & CV
Slide 8: Operational highlights fully supporting KB's strategy
Operational highlights fully supporting KB’s strategy Power of innovation Operations Governance Important Rail contracts won ▪ Siemens, EU ▪ Contract of CEO Marc Llistosella ▪ Stadler, EU prolonged by 5 years ▪ Alstom, EU, AP, NA Data2Action Electro-mechanical brake ▪ CRRC, CN ▪ KB shares transferre
Slide 9: Solid demand in Rail continues and improved Truck markets expected in H2/25
Solid demand in Rail continues and improved Truck markets expected in H2/25 Current situation Outlook FY25 EU/ NA: solid growth in OE and AM Global: Book-to-bill >1 expected CN: good AM and supportive HS at YE24 EU: ongoing high demand High order books at OEMs continue NA: favorable d
Slide 10: FY24 – Strong KPIs driven by BOOST program & KB's resilience
FY24 – Strong KPIs driven by BOOST program & KB’s resilience OPERATING REVENUES OF EBIT MARGIN ORDER INTAKE € 7.88bn 12.3% FREE CASHFLOW (+0.7% yoy1) € 8.19bn (PY: 11.3%) € 730m (-0.8% yoy1) (PY: € 552m) € 4.04bn 15.6% (+9.5% yoy1) (PY: 14.3%) ORDER BOOK € 7.18bn 113% 2 (+3.8% yoy1) € 3.84bn 10.4% C
Slide 11: Rock-solid balance sheet is excellent basis for 2025 and beyond
Rock-solid balance sheet is excellent basis for 2025 and beyond Equity/ Equ. Ratio [€m] Liquidity [€m] Net Debt/ Gr. Debt [€m] Rating +8% A- 3,127 2,904 +58% A3 +45% 2,263 Outlook stable 912 +6% 1,5131 Gross Debt2 1,432 627 3,175 Leverage 33%4 35% Gross Debt3 Net Debt/EBITDA (35%)3 Gross Debt 2,425
Slide 12: Improved EBIT and Capex boosted ROCE to >20%
Improved EBIT and Capex boosted ROCE to >20% CapEx [€m] NWC [€m] ROCE [%] % of sales 59.2 21.2%1 4.6% 51.4 53.1 4.4% ex. KB Sign. 20.8% 19.5% 1,296 1,131 ex. KB 368 Signaling 350 1,148 FY23 FY24 31.12.23 31.12.24 31.12.23 31.12.24 1) Ex. KB Signaling 12
Slide 13: Historically strongest operational FCF and CCR above target
“Walk the talk” – Historically strongest operational FCF and CCR above target range Free Cashflow1 [€m] Cash Conversion Rate (CCR) [%] +32% 730 153% "Collect“ 552 113%2 program 96% & improved EBIT boosted CCR FY23 FY24 FY23 FY24 1) FCF before M&A 2) Excluding non-cash book value effects from portfol
Slide 14: Sustainability activities consistently driven forward
Sustainability activities consistently driven forward Our performance in focus Process highlights Progress on Climate Targets Scope 1&21 EU Taxonomy First Green Bond successfully placed CO2e-EMISSIONS EMISSION SELF-PRODUCED ALIGNED REVENUES INTENSITY RENEWABLE First CSRD-aligned Non- SCOPE 1&2 (
Slide 15: Q4/24 – Solid top and strong bottom line driven by RVS
Q4/24 – Solid top and strong bottom line driven by RVS OPERATING REVENUES OF EBIT MARGIN ORDER INTAKE € 1.99bn 12.2% FREE CASHFLOW (-6.0% yoy1) € 2.00bn (PY: 12.3%) € 482m (-7.4% yoy1) (PY: € 487m) € 1.07bn 15.6% (+2.2% yoy1) (PY: 14.8%) ORDER BOOK € 7.18bn 344% 2 CCR (+3.8% yoy1) € 0.92bn 9.5% (PY:
Slide 16: RVS – Strong OI and B-t-B >1 in every quarter
RVS – Strong OI and B-t-B >1 in every quarter over the last 3 years Order intake [€m] Order book [€m] 1.00 Book-to-bill 1.05 +4.3% +11.9% OI yoy on high level 5,352 Order book at record 118 3 1,117 and KB Signaling 5,132 level +8.1% 998 effect on top Org. Order book increased growth1 -3 ▪ EU: lowe
Slide 17: RVS – All-time high in organic revenues in 2024 reached
RVS – All-time high in organic revenues in 2024 reached Revenue [€m] Op. EBIT [€m]/ op. EBIT margin [%] 14.8% 15.6% +80bps +6.6% 41 3 1,068 Org. revenues up 2% +12.7% Profitability up ~80bps driven by strong AM benefited from 22 9 167 EU: Organic higher in reduced legacy vol. 1,002 11 AM and OE o
Slide 18: CVS – Order development as expected and in line with truck market
CVS – Order development as expected and in line with truck market Order intake [€m] Order book [€m] 0.97 Book-to-bill 0.97 -6.2% -14.6% 1,952 OI mainly impacted Decrease of order book 1,039 1,832 by EU driven by EU 0 887 EU: significantly EU: significantly -149 -2 weaker yoy weaker truck demand
Slide 19: CVS – Profitability hit by weak truck market
CVS – Profitability hit by weak truck market Revenue [€m] Op. EBIT [€m]/ op. EBIT margin [%] -13.9% Revenue impacted by 11.0% 9.5% Profitability mainly 1,068 OE, but AM up -150bps impacted by operating leverage EU: significantly lower due to weak OE & -26.0% BOOST efficiency 0 919 trailer demand
Slide 20: Guidance FY25
Guidance FY25 Revenue [€m] Op. EBIT Margin Free Cashflow [€m] General Assumptions ▪ Stable FX vs. current levels ▪ Essentially stable geopolitical and 8,100-8,400 macroeconomic conditions 12.5-13.5% 7,883 ▪ Potential restructuring costs of up to 12.3% 700-8003 € 50m3 to adjust production footprint 7
Slide 21: Q&A / Backup
Q&A / Backup
Slide 22: Financial calendar 2025 – Upcoming events and FY25 release dates
Financial calendar 2025 – Upcoming events and FY25 release dates DATE EVENT LOCATION Feb 20 Preliminary FY24 results Online Mar 13 Roadshow London Mar 19 BofA Global Industrials London Mar 20 Stifel Southern Germany Summit Stuttgart Mar 25-26 Roadshow Frankfurt/ Paris Apr 30 Annual General Meeting O
Slide 23: Group FY24 – Order intake and order book
Group FY24 – Order intake and order book Order intake [€m] Order book1 [€m] 1.04 Book-to-bill 1.04 +1.4% 7,082 7,182 -0.8% 8,252 50 8,186 -64 -52 -0.8% RVS 5,132 4,043 5,352 RVS 4,440 CVS 4,212 3,748 CVS 1,952 1,832 FY23 Organic M&A FX FY24 31.12.23 31.12.24 1) Incl.~€ 567m from Kiepe 23
Slide 24: Group FY24 – Revenue development
Group FY24 – Revenue development Revenue [€m] Revenue [€m] By business By region -0.5% 7,926 52 7,883 7,926 7,883 +0.7% -42 -52 Asia/ 3.7% Pacific 1,898 1,969 RVS 3,748 4,044 SA 149 18.4% 176 NA 1,993 -0.3% 1,987 CVS 4,180 3,842 EU 3,886 -3.5% 3,751 FY23 Organic M&A FX FY24 FY23 FY24 y-o-y growth 24
Slide 25: Group FY24 – Profitability and EPS
Group FY24 – Profitability and EPS Op. EBIT [€m]/ op. EBIT margin [%] EPS2 [€] Fin. Result burdened by mainly one-time non-cash 11.3% 12.3% effects +100bps Existing Call/Put Option for KB regarding Cojali: Reported: Reported: 3.90 € 20m 870 +8.2% 911 (11.0%) (11.6%) -19.5% GT Emission Systems 84
Slide 26: RVS FY24 – Order intake and order book
RVS FY24 – Order intake and order book Order intake [€m] Order book1 [€m] 1.08 Book-to-bill 1.10 +4.3% 5,352 +9.8% 5,132 366 50 4,440 4,043 -19 9.1% FY23 Organic M&A FX FY24 31.12.23 31.12.24 1) Incl.~€ 567m from Kiepe 26
Slide 27: RVS FY24 – Revenue and profitability
RVS FY24 – Revenue and profitability Revenue [€m] op. EBIT [€m]/Margin1 15.6% +7.9% 14.3% 357 +130bps 4,044 3,748 -42 -19 +9.5% +17.6% 99 5 630 536 -10 +18.4% FY23 Organic M&A FX FY24 FY23 Organic M&A FX FY24 1) M&A: before PPA 27
Slide 28: CVS FY24 – Order intake and order book
CVS FY24 – Order intake and order book Order intake [€m] Order book [€m] 1.01 Book-to-bill 0.98 -6.2% 1,952 1,832 -11.0% 4,212 0 3,748 -430 -33 -10.2% FY23 Organic M&A FX FY24 31.12.23 31.12.24 28
Slide 29: CVS FY24 – Revenue and profitability
CVS FY24 – Revenue and profitability Revenue [€m] op. EBIT [€m]/Margin1 10.4% -8.1% 10.0% +40bps 4,180 0 3,842 -305 -33 -3.9% -7.3% 417 0 401 -10 -6 -2.4% FY23 Organic M&A FX FY24 FY23 Organic M&A FX FY24 1) M&A: before PPA 29
Slide 30: Group FY24 – Bridge reported EBIT to operating EBIT
Group FY24 – Bridge reported EBIT to operating EBIT op. EBIT [€m]/Margin1 +100bps +60bps 966 911 44 12 893 870 (12.3%) (11.0%) (11.6%) (11.3%) Examples Examples RVS: ~€ 9m RVS: ~€ -5m 630 RVS 532 536 625 (15.6%) KB Signaling (14.3%) (14.2%) (15.5%) PPA (~€ 8m) CVS: ~€ 35m CVS: ~€ 16m Restructuri
Slide 31: Group Q4/24 – Op. EBIT growth vs. prior year
Group Q4/24 – Op. EBIT growth vs. prior year op. EBIT [€m]/Margin1 12.3% 12.2% -10bps -5.1% 255 9 242 Reported: Reported: 248 -1 216 (12.0%) -20 (10.9%) -8.0% Q4/23 Organic M&A FX Q4/24 1) M&A: before PPA 31
Slide 32: Group – Income statement
Group – Income statement 2023 2024 2023 2024 in € million Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 FY23 FY24 Revenues 1,907.6 2,009.9 1,938.8 2,069.4 1,974.2 2,012.9 1,909.6 1,986.5 7,925.6 7,883.2 Change in inventory of unfinished/finished products 5.4 12.0 9.1 -36.0 52.1 4.3 32.6 -45.3 -9.6
Slide 33: Group – Cashflow statement
Group – Cashflow statement 2023 2024 2023 2024 € million Q1/23 Q2/23 Q3/23 Q4/23 12M/23 Q1/24 Q2/24 Q3/24 Q4/24 12M/23 12M/24 Cash flow from operating activities -137.0 105.3 306.8 639.5 914.6 -48.3 219.0 257.6 614.0 914.6 1,042.3 Cash flow from investing activities -110.7 -69.1 -88.3 -142.6 -410.6
Slide 34: Group – Balance sheet/ assets
Group – Balance sheet/ assets 2023 2024 in € million 31.03.2023 30.06.2023 30.09.2023 31.12.2023 31.03.2024 30.06.2024 30.09.2024 31.12.2024 Assets Intangible assets 771.2 769.2 776.0 770.6 778.6 770.2 957.9 933.4 Goodwill 691.9 688.1 693.2 696.4 688.5 689.2 864.1 883.4 Property, plant and equipment
Slide 35: Group – Balance sheet/ liabilities
Group – Balance sheet/ liabilities 2023 2024 in € million 31.03.2023 30.06.2023 30.09.2023 31.12.2023 31.03.2024 30.06.2024 30.09.2024 31.12.2024 Equity Subscribed capital 161.2 161.2 161.2 161.2 161.2 161.2 161.2 161.2 Capital reserves 13.9 13.9 13.9 13.9 13.9 13.9 13.9 13.9 Retained earnings 10.3
Slide 36: Group – Net Financial Debt / (Cash) Balance
Group – Net Financial Debt / (Cash) Balance in € million 31.12.2022 31.12.2023 31.12.2024 Cash and cash equivalents 1,342.6 1,291.4 2,263.1 Short-term liabilities to banks -172.4 -66.2 -60.7 Short-term bonds and obligations -11.0 -11.0 -769.3 Short-term leasing liabilities -63.1 -63.4 -72.1 Securiti
Slide 37: Investor relations contact
Investor relations contact Andreas Sophia Spitzauer Kursawe +49 89 3547 182310 +49 89 3547 187311 Andreas.Spitzauer@knorr-bremse.com Sophia.Kursawe@knorr-bremse.com 37
Slide 38: 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