Schindler Holding Ltd. · SIX:SCHN
Schindler — Schindler Hldg Ag Akt — Q1 2022 Earnings Presentation
22 slides from Schindler's earnings presentation, Apr 22, 2022
Slide 1: Q1 2022 results
Q1 2022 results April 22, 2022 © Schindler 2022 I © Schindler 2022 I We Elevate I April 22, 2022 I
Slide 2: Unprecedented mix of challenges expanding
Unprecedented mix of challenges expanding Ukraine war and China lockdowns exacerbate the situation 1. Dealing with foreign exchange burden EUR/CHF –4.6% year-to-date 2. Regaining competitive new installation (NI) margins FY 2022 material cost inflation: P&L impact from CHF 150m to CHF 200m 3. Resolv
Slide 3: Update challenge #2: regaining competitive NI margins
Update challenge #2: regaining competitive NI margins Steel and aluminum prices back to record levels Schindler spend by material Steel and aluminum prices (since January 1, 2021) (total ~CHF 1bn) Key actions 250 12% ▪ Increase dual-sourcing 5% 200 ▪ Negotiations with key suppliers 13% ▪ Lock-in hig
Slide 4: Update challenge #2: regain competitive NI margins
Update challenge #2: regain competitive NI margins Price levels still unable to offset cost inflation impact Price increases need time to materialize (offer-to-bill lead times) March Key actions 110 2022 ▪ First series of price increases across all March product lines and regions 2022 ▪ Inflation cl
Slide 5: Update challenge #3 and #4: Supply chain/product complexity
Update challenge #3 and #4: Supply chain/product complexity Supply chain issues exacerbated by excessive options in modularity platform backlog Factories stretched by legacy backlog vs. growing modular product deliveries Key issue Update since February 16, 2022: Backlog analysis revealed excessive n
Slide 6: Update challenge #5: China NI market to further contract
Update challenge #5: China NI market to further contract Market units expected to decline by 15% or more Floor space sold further declined across all city tiers1) Tier 2/3/4 cities housing inventory back to alert levels months consumption Upper alert level 120% 30 100% Lower alert level 25 80% 60% 2
Slide 7: Update challenge #5: China NI market to further contract
Update challenge #5: China NI market to further contract Accelerated market contraction aggravated by lockdowns Lockdown periods 31.3.2022 Q1 Q2 XJ Schindler Key actions Henan Jan Feb March April May June ▪ Support to staff in lockdown ▪ Preparation of production for re-opening 31.3.2022 ▪ Extra ful
Slide 8: Order backlog + operational legacy + declining market = highly challenging situation
Order backlog + operational legacy + declining market = highly challenging situation Sharpened focus to regain performance Further streamlining of senior leadership setup Revised incentive scheme – priority to NI/MOD profitability Price increases across all regions and product lines Accelerated meas
Slide 9: Further streamlined leadership setup to navigate challenges
Further streamlined leadership setup to navigate challenges Group Executive Committee reduced from 14 to 11 members Group Executive Committee (as of May 1, 2022) Update since February 16, 2022: ▪ Operations removed from ExCo Chairman & CEO ▪ Region Americas removed from ExCo Key Changes as of Februa
Slide 10: Results in a nutshell
Results in a nutshell ▪ Challenging start to the year ▪ Operating results heavily affected by aggravated supply chain issues, cost inflation, lockdowns and market contraction in China ▪ Growth in order intake and revenue ▪ Sharpened focus to offset inflation by increasing prices, streamlining the pr
Slide 11: Order intake development
Order intake development Growth, but continued margin pressure Order intake bridge in CHF million in CHF million +8.9 1) 2 937 3 164 +7.7% EMEA Americas China Rest AP Q1 2021 Q1 2022 <5% 5% to <10% 10% to <20% >20% negative positive 1) Growth in local currencies, in % 11 I © Schindler 2022 I We Elev
Slide 12: Order intake growth by region and product line (1st quarter)
Order intake growth by region and product line (1st quarter) Growth in all regions – sharp contraction in the Chinese new installations business offset Growth Q1 2022 vs. China APAC w/o China Americas EMEA Global Q1 2021 By business (units) New installations (NI) Maintenance By business (value in LC
Slide 13: Revenue development
Revenue development Overall growth, Asia-Pacific region declined due to the situation in China Revenue bridge in CHF million in CHF million +1.9 1) 2 602 2 632 +1.2% EMEA (–) EUR Americas (–) TRY China (+) RMB Rest AP (+) USD (+) BRL (+/–) Others Q1 2021 Q1 2022 <5% 5% to <10% 10% to <20% >20% negat
Slide 14: EBIT adj. development
EBIT adj. development Impacted by further material cost inflation, situation in China and supply chain disruptions EBIT adjusted bridge in CHF million in CHF million 301 –20.6 1) –21.6% 236 Q1 2021 Q1 2022 Margin 11.6% 9.0% 1) Growth in local currencies, in % 14 I © Schindler 2022 I We Elevate I Apr
Slide 15: Net profit and cash flow
Net profit and cash flow Lower margin, onset of Top Speed 23 costs and less NWC improvement Net profit Cash flow from operating activities in CHF million in CHF million 457 –37.4% 286 213 –32.4% 144 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Change 154 65 NWC 15 I © Schindler 2022 I We Elevate I April 22, 2022
Slide 16: Outlook 2022
Outlook 2022 16 I © Schindler 2022 I We Elevate I April 22, 2022 I © Schindler 2022
Slide 17: Outlook 2022
Outlook 2022 As of April 22, 2022 Business environment Schindler outlook for 2022 ▪ China market contracting, RoW mixed ▪ Order backlog, product complexity and ▪ Construction site delays continue to hinder operational legacy continue to affect project execution margins ▪ Material cost inflation and
Slide 18: Additional charts
Additional charts 18 I © Schindler 2022 I We Elevate I April 22, 2022 I Investor Relations
Slide 19: Financial calendar 2022
Financial calendar 2022 2022 2023 Full year results media conference February Closing date of shareholders' register Ordinary General Meeting Schindler Holding Ltd. March 28 First trading date ex-dividend Date of Schindler Holding Ltd. dividend payment Publication of key figures as of March 31 April
Slide 20: Key figures as of March 31, 2022
Key figures as of March 31, 2022 January to March In CHF million Q1 2022 Q1 2021 r% r% in LC Order intake 3 164 2 937 7.7 8.9 Revenue 2 632 2 602 1.2 1.9 Operating profit (EBIT) 211 288 –26.7 –25.7 in % 8.0 11.1 Operating profit (EBIT), adjusted 236 1) 301 2) –21.6 –20.6 in % 9.0 11.6 Financing and
Slide 21: Quarterly overview
Quarterly overview Key figures In CHF million 2022 2021 Q1 Q4 Q3 Q2 Q1 Order intake 3 164 3 128 2 995 3 106 2 937 Revenue 2 632 2 954 2 807 2 873 2 602 Operating profit (EBIT) 211 253 306 319 288 in % 8.0 8.6 10.9 11.1 11.1 Operating profit (EBIT), adjusted 236 306 308 337 301 in % 9.0 10.4 11.0 11.
Slide 22: Balance sheet
Balance sheet In CHF million 31.03.2022 in % 31.12.2021 in % 31.03.2021 in % Cash and cash equivalents 2 648 22.2 2 841 23.7 2 557 22.7 Other current assets 5 356 45.0 5 436 45.4 5 045 44.7 Total current assets 8 004 67.2 8 277 69.1 7 602 67.4 Non-current assets 3 910 32.8 3 697 30.9 3 677 32.6 Tota
Schindler Hldg Ag Akt — Q1 2022 Earnings Presentation on 6ix