Jost Werke Se · XETR:JST
Jost Werke — Investor Presentation (September 2020)
29 slides from Jost Werke's investor presentation, September 2020
Slide 1: Investor Presentation – Q2 2020 Update
INVESTOR PRESENTATION ̶ Q2 2020 UPDATE INVESTOR PRESENTATION JOST WERKE AG
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS CONFIDENTIAL AND MUST NOT BE RELEASED, PUBLISHED, TRANSMITTED OR DISTRIBUTED, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO OR WITHIN THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This presentation
Slide 3: JOST at a Glance: A Leading Global Supplier of Safety Critical Solutions
JOST at a Glance: A Leading Global Supplier of Safety Critical Solutions for Commercial Vehicles REGIONAL MIX 2019 in % of sales (incl. JV) STRONG BRANDS WITH HIGH CUSTOMER LOYALTY South America (incl. JV): 8% North America: 21% Europe: 47% STRONG GROWTH FUNDAMENTALS WORLDWIDE LEADING SUPPLIER WITH
Slide 4: Strong Products Driving Brand Desirability and Pulling Demand
Strong Products Driving Brand Desirability and Pulling Demand With the Push & Pull sales strategy end users generate additional demand by actively asking OEMs for JOST’s products Towing hitch Truck OEMs Fleet operators Container Drawbar technology Turntable Trailer OEMs Tipping Cross member Push & P
Slide 5: Global Leadership in Branded Products for Vehicle Interface
Global Leadership in Branded Products for Vehicle Interface JOST has approx. 60% global market shares in articulated truck-trailer connection market North America Europe North America Europe #2 #1 Asia-Pacific-Africa #1 #1 Asia-Pacific-Africa #1 #1 South America 2 South America 2 #1 #1 2 Includes Br
Slide 6: High Aftermarket Content and High Customer Fragmentation Support Business Resilience
High Aftermarket Content and High Customer Fragmentation Support Business Resilience CUSTOMER FRAGMENTATION 2019 FIFTH WHEELS LANDING GEAR Top customer 51% Other <10% of sales Top 25 customers represent 49% of After market value 50% of After market value 200-300% sales OEM first fit sales of OEM fir
Slide 7: Flexible and Asset Light Business Model
Flexible and Asset Light Business Model Allows a Quick Adaptation to Changing Market Environment KEY PARTS OF THE VALUE CHAIN Number of product variants1 20 100 100 1,500 On demand Purchased Mech. Stage Design/ Forging and Quality Logistics Vehicle materials/ processing/ Coating Assembly Painting en
Slide 8: Growth Engine: Strong Market Fundamentals Driving Future Growth
Growth Engine: Strong Market Fundamentals Driving Future Growth TRUCK PRODUCTION BY REGION (million units) TRAILER PRODUCTION BY REGION (million units) TRACTOR PRODUCTION BY REGION (million units) CAGR: 9% CAGR CAGR: 7% CAGR CAGR: 7% CAGR 2020-2025 2020-2024 2020-2023 2.2 3.5 0.9 1.2 2.1 2.6 6% 6% 7
Slide 9: Growth Engine: Upselling through Innovation
Growth Engine: Upselling through Innovation Increasing value-add for customers and generation growth through clear innovation road -map Future growth Autonomous systems AUTONOMOUS DOCKING SYSTEMS • Pre-requisite for autonomous driving • Efficiency boost for fleet operators • Advanced smart system so
Slide 10: Growth Engine: Regional Growth and Product Expansion
Growth Engine: Regional Growth and Product Expansion Increasing value-add for customers through innovation • Further market share gains with OEMs in North America REGIONAL • Growth opportunities in emerging markets driven by structural and legislative changes GROWTH • Localization of existing produc
Slide 11: Accretive M&A – Integration of Ålö Group started as of February 2020
Accretive M&A – Integration of Ålö Group started as of February 2020 Post Merger Integration on track – immediate positive impact on adjusted EBIT seen in H1 2020 • Ålö is a global market leader for agriculture tractor applications with excellent growth prospects • Strong, worldwide renowned brand (
Slide 12: Efficient and Flexible Supply and Production Platforms
Efficient and Flexible Supply and Production Platforms with Wide Geographical Footprint 25 23 3,430 EMPLOYEES countries production sites Low cost High cost regions 1; 52% regions 2; 48% PURCHASING BY REGION 4 Low cost High cost countries1; 47% countries2; 53% 1 Low-cost regions include Eastern Europ
Slide 13: JOST Investment Case Summary
JOST Investment Case Summary BUSINESS MODEL EARNINGS CASH FLOW • Strong brands with high OEM (push) and • Sustainable market growth thanks to global • Strong balance sheet and high cash generation end-costumer (pull) loyalty worldwide footprint and strong fundamentals • Flexible and asset-light busi
Slide 14: Key Financials
KEY FINANCIALS SOLID PERFORMANCE IN CHALLENGING TIMES 14 JOST Werke AG – INVESTOR PRESENTATION – SEPTEMBER 2020
Slide 15: Key Developments – Q2 2020
Key Developments – Q2 2020 Post merger integration of Ålö on track: Profitability improvements in line with expectations despite headwinds from pandemic. Ålö raised group’s sales by €46m in Q2 with an adj. EBIT margin of 12.8 % Severe Covid-19 pandemic impact on Q2 operations: Including Ålö’s acquis
Slide 16: Development of Sales and Earnings by Region
Development of Sales and Earnings by Region SALES SPLIT BY GEOGRAPHY (IN M€) H1 2020 COMMENTARY YoY YoY Growth (%) CAGR: 3% -2.5% 701 755 736 • Acquisition of Ålö contributed positively to JOST’s 650 634 146 142 143 -2.1% -8.6% sales in H1(+ €77m) 99 103 146 401 367 118 162 129 109 11.1% 75 58 -22.1
Slide 17: Development of Sales and Earnings for Ålö and JOST in Q2 2020
Development of Sales and Earnings for Ålö and JOST in Q2 2020 KEY FINANCIALS OVERVIEW Q2 2020 COMMENTARY Reported -8.6% -13.3% • Organic sales (excl. Ålö) contracted by -36% to € 128m in Q2. Including Ålö, Growth reported group sales declined only by -13% to € 175m in Q2. Organic -27.6% -35.5% • The
Slide 18: Strong Cash Generation Profile Supported by Low Capex Spend
Strong Cash Generation Profile Supported by Low Capex Spend KEY FINANCIALS OVERVIEW H1 2020 COMMENTARY Cash 60.9% 76.4% 79.6% 80.1% 82.5% 88.1% 81.1% conversion1 • Cash conversion rate remained strong at 81.1% despite Cash flow1 75 80 83 the decrease in adj. EBITDA during H1 2020, which was (€m) 60
Slide 19: Development of Equity Ratio and Net Debt
Development of Equity Ratio and Net Debt BALANCE SHEET OVERVIEW AS AT JUNE 30, 2020 H1 2020 COMMENTARY 18.4% • The increase in financial liabilities due to the acquisition of Ålö led to a reduction of ROCE1 ROCE and equity ratio as well as to an increase of net debt and leverage, compared to (%) 9.4
Slide 20: New financing structure after closing acquisition of Ålö
New financing structure after closing acquisition of Ålö DEBT REPAYMENT TIMELINE (€m) COMMENTARY • Long-term and well balanced maturity profile for all current loans 121.5 96 • 100% of debt is free of a leverage covenants 78 − 42% of debt is completely covenant free − 58% of debt has a gearing coven
Slide 21: Market Outlook for FY 2020
Market Outlook for FY 2020 EUROPE NORTH AMERICA APA TRUCK (35) – (30)% (55) – (50)% (15) – (10)% Demand for heavy duty trucks Production of class 8 trucks extremely Market expectations for APA improved expected to improve slightly in H2. low. Dealer channels full. due to a strong recovery in China,
Slide 22: Outlook 2020
Outlook 2020 Single digit percent decline y-o-y Sales (2019: 736m€) Adj. EBITDA margin Higher than 10.0% Adj. EBIT margin Higher than 7.0% Capex (in % of sales) Approx. 2.5% of sales 22 JOST Werke AG – INVESTOR PRESENTATION – SEPTEMBER 2020
Slide 23: Appendix
Appendix Further information 23 JOST Werke AG – INVESTOR PRESENTATION – SEPTEMBER 2020
Slide 24: Development of JOST's Sales and Adjusted EBIT by Quarter
Development of JOST’s Sales and Adjusted EBIT by Quarter SALES (€m) ADJ. EBIT (€m) 199 202 192 190 191 187 187 181 181 178 175 166 172 171 168 149 147 157 23.7 23.9 22.7 22.5 21.8 21.3 20.3 20.6 19.5 19.0 16.8 15.9 14.1 14.3 12.6 10.4 11.2 11.1 12.0% 12.5% 12.0% 12.5% 11.2% 12.0% 11.2% 11.4% 10.8% 1
Slide 25: Industry-leading Margins and Cash Generation Profile
Industry-leading Margins and Cash Generation Profile JOST has continuously outperformed the truck market since 2003 showing high profitability and strong cash generation JOST'S PERFORMANCE OVER TIME Indexed to 2003 STRONG MARGIN RESILIENCE Adjusted EBITDA HIGH CASH FLOW GENERATION margin (%) conver-
Slide 26: Ålö – a global market leader with sound financial profile
Ålö – a global market leader Sound financial profile MARKET SHARES FOR AGRICULTURAL FRONT LOADERS ÅLÖ FINANCIALS 30% SEKm 2017A 2018A 2019A Sales 1,804.7 2,002.6 2.060 15% 15% 15% 12% 10% Gross profit 514.2 536.2 565 3% Gross profit margin 28.5% 26.8% 27.4% Ålö STOLL MX Other John CNH Other Adj. EBI
Slide 27: Shareholder Structure and Share Information
Shareholder Structure and Share Information SHAREHOLDER STRUCTURE AS OF SEPTEMBER 15, 2020 1 SHARE INFORMATION ISIN DE000JST4000 Trading symbol JST 18.0% Allianz Global Investors German Sec. Code Number (WKN) JST400 Mondrian Shares in issue 14,900,000 58.1% Index SDAX Universal-Investment-Gesellscha
Slide 28: JOST & ÅLÖ
JOST & ÅLÖ Impact of Ålö acquistion on JOST‘s sales distrubution and workforce based on 2019 pro -forma data SALES 2019 EMPLOYEES 2019 DISTRIBUTION BY VEHICLE APPLICIATION in €m head count 2019 ~2,9 0 0 Other commercial 736 vehicles Agriculture ~700 Rebalancing 197 JOST portfolio to diversify growth
Slide 29: Financial Calendar 2020 Contact
Financial Calendar 2020 Contact Sept. 22 Baader Investment Conference 2020 (virtual) Investor Relations Contact: Sept. 23 Berenberg & Goldman Sachs Ninth German Corporate ROMY ACOSTA Conference (virtual) Head of Investor Relations Nov. 12 Publication of Q3 2020 Report JOST Werke AG SIEMENSSTRASSE 2