Renk Group Ag · XETR:R3NK
Renk — 9M 2023 Earnings Presentation
25 slides from Renk's earnings presentation, Jan 29, 2024
Slide 1: Trusted Partner – Q3 Investor & Analyst update presentation
Trusted Partner Q3 Investor & Analyst update presentation 29 January, 2024 Strictly private and confidential
Slide 2: Disclaimer
Disclaimer By accessing this presentation, you agree to be bound by the following limitations. 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
Slide 3: Management team
Management team Years industry experience 25+(1) 25+ 2021 2023 to present to present CEO & Chairwoman CFO 2017 – 2021 2018 – 2021 CFO Member of the Management Board – Rheinmetall Defence 2011 – 2016 President Division Susanne Electronic Solutions 2007 – 2017 German Naval Christian Director Controlli
Slide 4: 1. RENK introduction 2. Update on 9M-23 performance 3. Summary and outlook
1. RENK introduction 2. Update on 9M-23 performance 3. Summary and outlook Trusted Partner
Slide 5: RENK's mission – empowering a secure and sustainable future
RENK introduction RENK’s mission – empowering a secure and sustainable future Defense super-cycle Energy transition Empowering security Empowering Forces Enabling a sustainable future 4 Trusted Partner
Slide 6: RENK – snapshot
RENK introduction RENK – snapshot Growth markets Global leader Strong financials ~10% #1 Player €849m 2022A-2027E in mission-critical 2022A Total addressable market CAGR(1) drive technologies(4) Revenue ~€4.6bn ~75% 17% Sep-2023 Global market presence 2022A Total order backlog(2) in tracked military
Slide 7: Successful transformation of RENK into a global growth platform
RENK introduction Successful transformation of RENK into a global growth platform ~10% Today Market CAGR 2022-27E(3) Trusted Partner RENK enabled as platform to capture the underlying growth Energy transition ▪ Customer orientation as #1 priority €849m ▪ Strengthened top management Revenue team ▪ Op
Slide 8: 1. RENK introduction 2. Update on 9M-23 performance 3. Summary and outlook
1. RENK introduction 2. Update on 9M-23 performance 3. Summary and outlook Trusted Partner
Slide 9: Executive summary Q3 2023
Update on 9M-23 performance Order intake Increase in order intake to 1.4x revenue driven by wins across regions and segments with total order backlog growing by €0.4bn to €4.6bn compared to Jun-23 Marine & M&I achieved performance improvement in Q3-23 with Industry growth in order intake, revenue, a
Slide 10: Business highlights: Strong defense momentum boosting total order backlog
Update on 9M-23 performance Business highlights: Strong defense momentum boosting total order backlog Total order backlog (Sep-23), €bn Commentary LTM revenue 1 Fixed order backlog: Orders turned into 1.9x 0.6x 2.6x 5.1x revenue since Jun-23 compensated by coverage(1) newly contracted order inflow,
Slide 11: 9M-23 Group performance at a glance
Update on 9M-23 performance 9M-23 Group performance at a glance YoY growth Book-to-bill ratio(1) Order intake, €m Revenue, €m Fixed order backlog(2), €m Commentary 1.2x 1.4x Increase in order intake to 1.4x revenue driven by significant order wins across regions and segments, with an increase of 1
Slide 12: 9M-23 Group performance at a glance (cont'd)
Update on 9M-23 performance YoY growth Adj. gross profit margin 9M-23 Group performance at a glance (cont’d) Adj. EBIT margin Net debt / LTM Adj. EBITDA(3) Adj. gross profit, €m Adj. EBIT(1), €m Net debt(2), €m Commentary Translation of strong revenue growth into 28.0% 28.5% 16.5% 15.9% 2.2x 2.6x
Slide 13: Focus on Vehicle Mobility Solutions segment
Update on 9M-23 performance Focus on Vehicle Mobility Solutions segment YoY growth Adj. EBIT margin Segment financials, €m Commentary Order intake Revenue Adj. EBIT(1) Substantial increase in order intake by 29.0% YoY especially driven by growth in 21.8% 20.1% North America 29.0% Strong increase
Slide 14: Focus on Marine & Industry segment
Update on 9M-23 performance Focus on Marine & Industry segment YoY growth Adj. EBIT margin Segment financials, €m Commentary Order intake Revenue Adj. EBIT(1) Order intake overall developed favorably, exceeding prior year figures, underlining 8.2% 8.0% strong demand, especially driven by Navy 18.0
Slide 15: Focus on Slide Bearings segment
Update on 9M-23 performance Focus on Slide Bearings segment YoY growth Adj. EBIT margin Segment financials, €m Commentary Order intake Revenue Adj. EBIT(1) Order intake continues to grow YoY mainly driven by horizontal bearings and orders for 14.5% 15.1% new high-speed bearings 9.0% Continued, s
Slide 16: Deep-dive into selected cost positions
Update on 9M-23 performance Deep-dive into selected cost positions Adj. gross profit(1), €m Adj. distribution expenses(2), €m % of revenue 28.0% 28.5% % of revenue 5.9% 6.0% 186 166 35 39 H1-22 H1-23 9M-22 9M-23 9M-22 9M-23 Adj. general and administrative expenses(3), €m Commentary % of revenue Ad
Slide 17: Adjustments to operating profit mainly relate to M&A activities and other items
Update on 9M-23 performance Adjustments to operating profit mainly relate to M&A activities, inflation compensation premium, severance provisions, and capital market readiness costs For the period, €m Commentary 9M-22 9M-23 1 Expenses for inflation compensation premium of €2.5m Operating profit 44.
Slide 18: Temporary increase in net working capital due to mitigation of supply chain bottlenecks
Update on 9M-23 performance Temporary increase in net working capital due to mitigation of supply chain bottlenecks and resolution of H1-23 challenges in production Customer receivables(1) Inventories Net working capital, €m Trade payables Prepayments received(2) Commentary % of LTM revenue 25%(3) 2
Slide 19: Solid cash flow generation from operations despite increase in working capital
Update on 9M-23 performance Solid cash flow generation from operations despite increase in working capital, providing opportunity to invest in future growth Key cash flow items, €m Commentary 9M-22 9M-23 1 Negative change in net working capital Adj. EBITDA(1) 119.9 127.2 − Driven by build-up of inv
Slide 20: Increase in net debt with significant impact from repayment of shareholder loan
Update on 9M-23 performance Increase in net debt with significant impact from repayment of shareholder loan Net debt(1), €m Commentary 2.2x Increase in net debt and net leverage driven Net debt / Adj. EBITDA(2) 2.6x by decrease in cash and cash equivalents resulting from 383 − Repayment of shareho
Slide 21: 1. RENK introduction 2. Update on 9M-23 performance 3. Summary and outlook
1. RENK introduction 2. Update on 9M-23 performance 3. Summary and outlook Trusted Partner
Slide 22: Guidance
Guidance Guidance 2022A 2023 Estimate 2024 Guidance Medium-term target Revenue / €849m ~€925m ~€1,000-1,100m ~10% CAGR growth Adj. EBIT(1) 17% ~16.0-16.4% ~16-18% ~19-20% margin (1) Adj. EBIT is defined as operating profit before the PPA depreciation and amortization as well as income / losses from
Slide 23: RENK – well positioned to capture growth in defense and energy transition
Conclusion RENK – well positioned to capture growth in defense and energy transition High-growth Market CAGR 1 markets Exposed to high-growth areas in accelerating end markets ~10% 2022-27E(1) Global 2 leadership Innovation and technology-led global leadership positions #1 & #2 Market positions(2) L
Slide 24: Questions & Answers?
QUESTIONS & ANSWERS? 23 Trusted Partner
Slide 25: Thanks for your attention
TRUSTED PARTNER Thanks for your attention RENK Group AG Goegginger Straße 73 Investor Relations D-86159 Augsburg Germany Ingo Schachel, Head of IR www.renk.com Phone: +49 821 5700 1439 E-Mail: investors@renk.com Management Board: Susanne Wiegand (Chairman), Christian Schulz www.ir.renk.com Superviso