SAF-Holland SE · XETR:SFQ
SAF-Holland — Q1 2014 Earnings Presentation
18 slides from SAF-Holland's earnings presentation, May 15, 2014
Slide 1: SAF-HOLLAND 1st Quarter Results 2014
Focus on fleet customers SAF-HOLLAND 1st Quarter Results 2014 Detlef Borghardt, CEO Wilfried Trepels, CFO May 15, 2014
Slide 2: Executive Summary
Executive Summary Strong increase in group sales by 12.0% to €235.3mn (previous year: €210.1mn) 1 particularly driven by positive business development in Europe and emerging markets. Increase in adj. EBIT to €17.1mn (previous year: 13.8) and adj. EBIT margin to 7.3% 2 (previous year: 6.6) due to hig
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 250 235.3 18 17.1 16% 210.1 16 200 13.8 14 12% 12 150 10 +3.3mn +25.2mn 8% 8 100 7.3% 6.6% 6 4% 4 50 2 0 0 0% Q1/2013 Q1/2014 Q1/2013 Q1/2014 250 235.3 20 16% 225.5 219.1 210.1 17.1 202.3 16.0 16.5 200 16 13
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 250 250 +40.3% 19.5 (8.3%) 13.9 (6.6%) 57.9 200 200 +12.2% (24.6%) 51.6 83.0 (24.6%) -3.5% (35.3%) 36.5 86.0 15
Slide 5: Business performance – Trailer Systems
Business performance – Trailer Systems Sales in €mn Summary 160 140.9 • Strong sales increase of 16.1% to €140.9mn YTD 2014 (YTD 140 121.4 127.8 123.9 2013: 121.4) 120 112.6 100 • Sales development mainly influenced by recovery of European 80 trailer market; pre-buy of trucks in Q4/2013 in connectio
Slide 6: 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 7: Implementation of measures to increase sales and adj. EBIT margin of BU TS until 2015
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 8: Business performance – Powered Vehicle Systems
Business performance – Powered Vehicle Systems Sales in €mn Summary 45 • Sales of €36.5mn YTD 2014 (YTD 2013: 37.1) burdened by 40 38.4 37.1 34.9 36.5 exchange rate effects related to the translation of Canadian 35 34.3 resp. US dollar sales to euro 30 25 • Benefits from rising demand regarding truc
Slide 9: Business performance – Aftermarket
Business performance – Aftermarket Sales in €mn Summary 70 • Sales increase to €57.9mn YTD 2014 (YTD 2013: 51.6) 59.3 60.9 60 51.6 54.8 57.9 • Increase of sales driven by positive market development 50 • Successful expansion of Aftermarket activities with new sales 40 offices and Parts Distribution
Slide 10: Business performance – operating cash flow
Business performance – operating cash flow Operating cash flow before income tax in €mn Summary 28 25.3 • Operating cash flow of €3.9mn YTD 2014 (YTD 2013: 11.1). 24 • Net working capital reached €95.6mn (Q1/2013: 88.2) and 20 totaled 10.2% of sales (Q1/2013: 10.5%). 16 14.2 • Days of inventory 54 d
Slide 11: Financials – balance sheet
Financials – balance sheet in €mn 03/31/2014 % 12/31/2013 % Non-current assets 333.0 56.4% 329.1 61.3% Inventories 114.2 19.3% 100.2 18.7% Other current assets 125.7 21.3% 83.2 15.5% Cash and cash equivalents 17.8 3.0% 23.9 4.5% Total assets 590.7 100.0% 536.4 100.0% Equity 231.9 39.3% 222.2 41.4% O
Slide 12: Financials – profit and loss statement
Financials – profit and loss statement in €mn Q1/2014 % Q1/2013 % Comments Sales 235.3 100% 210.1 100% • Increase in gross profit in combination with Cost of Sales -191.3 -81.3% -170.9 -81.3% almost stable selling, general and admin costs led to strong improvement of Gross Profit 44.0 18.7% 39.2 18.
Slide 13: Financials – cash flow statement
Financials – cash flow statement in €mn Q1/2014 Q1/2013 Result before tax 12.0 10.7 Finance result 3.3 1.4 Amortization/depreciation 4.7 5.1 Change in Net Working Capital -15.6 -5.9 Other items cash flow -0.5 -0.2 Operating cash flow before income tax 3.9 11.1 Income tax paid -2.3 -2.2 Operating cas
Slide 14: Key financials
Key financials in €mn Q1/2014 Q1/2013 Sales 235.3 210.1 Cost of sales -191.3 -170.9 Gross profit 44.0 39.2 Margin 18.7% 18.7% Adjusted result 9.6 8.6 Margin 4.1% 4.1% Adjusted EPS in € 0.21 0.19 Adjusted EBITDA 20.3 17.4 Margin 8.6% 8.3% Adjusted EBIT 17.1 13.8 Margin 7.3% 6.6% Operating cash flow (
Slide 15: Key financial ratios and figures
Key financial ratios and figures Net financial debt (€mn) Summary 350 • Significantly improved financial profile through capital increases 300 303.8 289.3 302.1 • Reduction of interest costs • Further improvement of the equity ratio 250 • Further reduction of net debt 200 159.7 • Long-term safeguard
Slide 16: 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 4, 2014 Basic data for share as of March 31, 2014 SAF-HOLLAND share price increase of 4.5% ISIN LU0307018795 • Strong share price development at the beginning of 2
Slide 17: Targets and outlook: Increase in sales and earnings expected for 2014
Targets and outlook: Increase in sales and earnings expected for 2014 • Sales between €920mn and €945mn • Adj. EBIT approximately €70mn and increasing adj. EBIT margin Targets 2014 • Assumptions: Generally stable economic and political conditions in Europe and North America and improvement of indust
Slide 18: Thank you for your attention.
Thank you for your attention. 18