Elringklinger Ag · XETR:ZIL2
Elringklinger — Q3 2023 Earnings Presentation
31 slides from Elringklinger's earnings presentation, Nov 7, 2023
Slide 1: Group figures on Q3 2023
Group figures on Q3 2023 Thomas Jessulat, CEO November 7, 2023
Slide 2: Management Board with focus on continued transformation
Senior Management Management Board with focus on continued transformation Thomas Jessulat, CEO (Board member since 2016, CEO since 2023) Corporate units Corporate Sustainability Finance Global Strategy & Digital Transformation HR IT Legal & Compliance M&A and Innovations Strategic Communications Bus
Slide 3: Headlines
Q3 2023 Headlines Macro environment improving slightly, but gradually, LV market more dynamic: supply chains mostly stable, inflation well above 2%-target level, projections for LV production revised upwards for 2023 (global: 7.5%*, after 5.3% in July projection and 3.3% at beginning of the year) Or
Slide 4: Financials
Financials
Slide 5: Stable order intake, organic sales slightly up
Q3 2023: Orders and sales Stable order intake, organic sales slightly up Order intake – in EUR million Order backlog – in EUR million Sales – in EUR million Organic: +0.7% +0.0% -13% -2.7% 475 1,465 1,462 1,449 464.1 466 451.6 1,354 -15.7 3.2 1,279 0.0 377 374 377 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 FX
Slide 6: Revenue of business unit E-Mobility up in Q3 and 9M 2023
Q3 2023: Sales Revenue of business unit E-Mobility up in Q3 and 9M 2023 Sales by segment/business unit – in EUR million Share of sales – in % Metal Sealing Metal Other OE Lightweighting/ Systems & Forming & 1.0 Elastomer Drivetrain Assembly (<1%) Other Technology Components Technology E-Mobility 0.7
Slide 7: Growth momentum in Europe, headwinds in Asia
Q3 2023: Sales Growth momentum in Europe, headwinds in Asia Growth rate light vehicle production vs. FX-adjusted group sales – in % Share of sales – in % of total reported sales 5.9% 4.4% Market EK 9.3% EUROPE (EXCL. RUSSIA) 1.7% 0.8% South America and Rest of World Market EK 27.3 Germany -13.8% 6%
Slide 8: Significant year-on-year improvement in adjusted EBIT
Q3 2023: Earnings Significant year-on-year improvement in adjusted EBIT EBITDA – in EUR million Adjusted EBIT bridge – in EUR million EBITDA margin – in % +1.5% +23% 57.7 53.6 +3 -4 47.0 46.8 47.7 -1.8 22.7 +7 18.5 12.3 10.1 11.0 10.0 10.6 Q3 Q4 Q1 Q2 Q3 Adj. EBIT Raw mats Energy & Ramp-up Others Ad
Slide 9: EPS at 0.12 EUR in Q3 and at 0.27 in 9M 2023
Q3 2023: Earnings EPS at 0.12 EUR in Q3 and at 0.27 in 9M 2023 EBT – in EUR million Net income (attributable to shareholders) – in EUR million Earnings per share – in EUR -4.5% +>100% +>100% 17.7 7.8 0.12 16.6 16.9 0.11 6.7 11.4 3.3 0.05 2.4 0.04 6.1 -2.3 -0.04 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1
Slide 10: Changes in NWC benefit Operating Free Cash Flow
Q3 2023: Cash flow Changes in NWC benefit Operating Free Cash Flow Capex – in EUR million Net Working Capital (NWC) – in EUR million Operating Free Cash Flow – in EUR million Capex ratio – in % of total sales NWC ratio – in % of total sales -7.7% +0.8% 24.6 ->100% 505 518 529 510 41.0 455 11.7 18.1
Slide 11: Net debt/EBITDA gradually reduced below 2.0 target
Q3 2023: Balance sheet Net debt/EBITDA gradually reduced below 2.0 target Net Financial Debt – in EUR million Net Financial Debt/EBITDA -54% 796 580 512 4.7 -11% 387 390 411 363 361 369 364 372 380 366 3.4 2.7 1.8 2.0 1.3 Q1 … Q2 Q3 … Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 Q3 2023 |
Slide 12: Aftermarket: growth strategy successfully implemented
Q3 2023: Segments Aftermarket: growth strategy successfully implemented Sales – in EUR million Adjusted EBIT margin – in % of segmental sales Original Equipment (OE) Aftermarket -4.8% +11% 360 378 369 360 343 81.7 75.6 74.4 67.0 61.2 -0.9 5.5 0.3 0.9 0.6 24.2 25.1 21.0 17.6 21.6 Q3 2022 Q4 Q1 Q2 Q3
Slide 13: Markets and Outlook
ae Markets and Outlook
Slide 14: Market environment dynamic, volatile, and uncertain
Outlook: Markets Market environment dynamic, volatile, and uncertain Light vehicle production by region – in million units vs. -0.2% +4.5% -1.9% vs. +5.0% 4.2 4.4 17.2 16.8 16.6 vs. +4.1% -8.8% +7.2% vs. +5.1% vs. +10.6% +7.9% +0.6% vs. +5.6% Q4 Q4 2023 2024 2025 3.6 3.2 15.2 16.3 16.4 2022 2023 7.3
Slide 15: Outlook: FY 2023 and mid-term
Outlook: FY 2023 and mid-term Sales guidance 2023 adjusted 2023 Organic growth of around 3 to 5% Mid-term Actual 2022 Organic growth Sales (prev.: significantly above market) Organic growth above market level of 7.4 % EBIT margin (adjusted) Approx. 5 % of Group revenue Sustained improvement 3.8 % Op
Slide 16: The ElringKlinger Difference
The ElringKlinger Difference 1 With our strong technological orientation, we provide solutions for mobility demand. We will grow profitably by systems as well as components business. 4 2 We will utilize our strong market position in ICE business, but focus on new technologies. We will further shape
Slide 17: Appendix
Appendix
Slide 18: Structural overview
ElringKlinger Structural overview Original Equipment Aftermarket 78% Sales: EUR 1,411 million 14% Sales: EUR 251 million Employees: 7,959 of Group sales Employees: 276 of Group sales Lightweighting/ Metal Sealing Systems & Metal Forming & Elastomer Technology Drivetrain Components Assembly Technolog
Slide 19: Consolidated income statement
Group – Q3 2023 Consolidated income statement Q3 2023 Q3 2022 Sales revenue 451.6 464.1 Cost of sales -355.2 -372.2 Gross profit 96.4 91.8 Gross profit margin in % 21.3 19.8 Selling expenses -37.8 -35.2 General and administrative expenses -22.0 -23.6 Research and development costs -15.7 -16.2 Other
Slide 20: Consolidated balance sheet
Group – Q3 2023 Consolidated balance sheet As of Sep As of Dec As of Sep As of Dec Assets Liabilities and equity 30, 2023 31, 2022 30, 2023 31, 2022 Intangible assets 159 147 Share capital 63 63 Property, plant, and equipment 875 906 Capital reserves 118 118 Financial assets 14 14 Revenue reserves 6
Slide 21: Consolidated statement of cash flows
Group – Q3 2023 Consolidated statement of cash flows Q3 2023 Q3 2022 Q3 2023 Q3 2022 Earnings before taxes (EBT) 17 18 Proceeds from disposals of property, plant and equipment and intangible assets 0 1 Depreciation/amortization (less write-ups) of non-current assets 26 29 Proceeds from disposals of
Slide 22: Key figures – Last quarters
Group – Last 5 quarters Key figures Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Order intake 377 374 475 466 377 Order backlog 1,279 1,354 1,449 1,462 1,465 Sales 452 469 488 469 464 EBITDA 47.7 46.8 53.6 57.7 47.0 EBIT 21.4 16.7 26.0 22.6 18.1 EBIT margin in % 4.7 3.6 5.3 4.8 3.9 EBIT adjusted1 22.7 24
Slide 23: Segmental figures – Last quarters
Group – Last 5 quarters Segmental figures Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Group Sales 452 469 488 469 464 Adjusted EBIT1 22.7 24.8 26.4 33.1 18.5 Adjusted EBIT margin1 in % 5.0 5.3 5.4 7.1 4.0 Original Equipment Sales 343 360 369 378 360 Adjusted EBIT 2.1 3.4 1.1 20.8 -3.1 Adjusted EBIT marg
Slide 24: Key figures – Last years
Group – Last 5 years Key figures 2022 2021 2020 2019 2018 Order intake 1,874 1,978 1,483 1,737 1,735 Order backlog 1,462 1,386 1,033 1,030 1,020 Sales 1,798 1,624 1,480 1,727 1,699 EBITDA 174 216 182 181 197 EBIT -42 102 28 61 96 EBIT margin in% -2.3 6.3 1.9 3.5 5.7 EBT -56 101 -14 42 81 Net income
Slide 25: Segmental figures – Last years
Group – Last 5 years Segmental figures 2022 2021 2020 2019 2018 Group Sales 1,798 1,624 1,480 1,727 1,699 EBIT -42.2 102.0 28 61 96 EBIT margin in % -2.3 6.3 1.9 3.5 5.7 Original Equipment Sales 1,411 1,280 1,186 1,423 1,408 EBIT -111 37 -24 5.1 51 EBIT margin in % -7.9 2.9 -2.0 0.4 3.6 Aftermarket
Slide 26: Adjusted EBIT for comparing operating profitability
New KPI Adjusted EBIT for comparing operating profitability EBIT (reported) + Amortization of intangible assets from purchase price allocation (PPA) +/- Changes in scope of consolidation + Impairment on goodwill + Impairment on assets - Write-ups +/- Gains/losses from disposal of entities +/- Restru
Slide 27: Product portfolio
Group Product portfolio Metal Sealing Systems & E-Mobility Drivetrain Components ▪ Battery module ▪ PEM fuel cell ▪ Electric drive unit (EDU) Lightweighting/ Metal Forming & Assembly Elastomer Technology Technology ▪ Cockpit cross-car beam ▪ Thermal shielding ▪ Door module carrier ▪ Acoustic shieldi
Slide 28: ElringKlinger represented in all important auto regions
Group ElringKlinger represented in all important auto regions Production locations of global top 15 OEMs ( ) ElringKlinger production sites ( ) Germany UK China Eastern France Europe/ Spain Turkey Korea Italy Japan USA/Canada India Southeast Asia Mexico South South Africa America Q3 2023 | November
Slide 29: More than 140 years of experience
Group More than 140 years of experience History of ElringKlinger in very brief Shareholder structure as at September 30, 2023 1879 Paul Lechler establishes a merchandising business in Stuttgart for technical products and gaskets. 1885 Richard Klinger establishes an Institutional engineering office i
Slide 30: Contact
ElringKlinger Group Investor Relations Contact Dr. Jens Winter Heiderose Mall Dr. Philipp Ottenstein Vice President Strategic Communications Strategic Communications Strategic Communications Phone: +49 7123 724-88335 Phone: +49 7123 724-463 Phone: +49 7123 724-9594 Mail: jens.winter@elringklinger.co
Slide 31: Disclaimer
Disclaimer Forward-looking statements and predictions This presentation contains statements about the future. These statements are based on current expectations, market evaluations and predictions by the Management Board, and on information that is currently available to them. The statements about t