Schindler Holding Ltd. · SIX:SCHN

Schindler — FY2019 Earnings Presentation

39 slides from Schindler's earnings presentation, Feb 14, 2020

  1. Slide 1: Full year results presentation 2019

    Full year results presentation 2019 Sinar Mas Plaza Shanghai China February 14, 2020 © Schindler 2020 I © Schindler 2020 I We Elevate I February 14, 2020 I

  2. Slide 2: Agenda

    Agenda 1. Market development 2. Strategy 3. Innovation for a unique user experience 4. Results 2019 5. Outlook 2020 2

  3. Slide 3: 1. Market development

    1. Market development 3

  4. Slide 4: Urbanization and demographic change call for improved mobility solutions

    Urbanization and demographic change call for improved mobility solutions >1.4 60+ billion people aged 60+ by 2030, driving the need for innovative solutions for safe mobility Middle class set to increase by more than 60% worldwide by 15% of the urban population of 2030, creating the need for more 5.

  5. Slide 5: Technology drives and challenges urban mobility

    Technology drives and challenges urban mobility + 40% of global energy consumption is Digitalization Mass connectivity will be commonplace and the number Aging installed base Aging equipment generated by buildings of connected units is growing in developed rapidly countries creates an increasing dem

  6. Slide 6: Global new installations market continued to grow in 2019

    Global new installations market continued to grow in 2019 Asia-Pacific contributed the most, driven by growth in China +2% NI market size by region (units) +3% 0% –5% 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 Americas EMEA Asia-Pacific Global NI market size by region (value) 18% 17% 65% 100% U

  7. Slide 7: Global existing installations market increased in 2019

    Global existing installations market increased in 2019 Highest growth in emerging markets +4% EI market size by region (installed base in units) +6% +2% +2% 2018 | 2019 2018 | 2019 2018 | 2019 2018 | 2019 Americas EMEA Asia-Pacific Global EI market size by region (installed base in value) 27% 33% 40

  8. Slide 8: Market outlook 2020: slowing growth

    Market outlook 2020: slowing growth NI market size by region (units) 2019 | 2020 2019 | 2020 2019 | 2020 2019 | 2020 Americas EMEA Asia-Pacific Global US market stable at best; Flat market in most China under pressure Global market down slow recovery in Brazil European countries due to pandemic impa

  9. Slide 9: 2. Strategy

    2. Strategy 9

  10. Slide 10: Three strategic targets drive our engagement in all areas

    Three strategic targets drive our engagement in all areas Creating growth and a unique user experience Operational excellence Strategic priorities Unique products Modularity and services Key account management Digitalization Customer Quality and Efficient processes and structures Excellence Growth i

  11. Slide 11: We Elevate… Growth: Outgrowing the market

    We Elevate… Growth Outgrowing the market Growth in all segments and regions OIT growth  Outperforming global NI market growth % in local currencies 7.0  Large projects 6.0  Key accounts 5.0  Volume business by higher sales density 4.0  Substantial growth of EI base 3.0  NI conversions 2.0  Hi

  12. Slide 12: Footprint in China and India doubled in the last five years

    We Elevate… Growth Footprint in China and India doubled in the last five years China India Schindler major branch offices 12 I © Schindler 2020 I We Elevate I February 14, 2020 I Investor Relations

  13. Slide 13: Winning landmark projects around the globe

    We Elevate… Growth Winning landmark projects around the globe Xujiahui Centre, Shanghai Beijing Metro Line 19 Lakhta Center, Saint Petersburg Chengdu Metro Line 6, 8 Intel Campus, Dublin Capital Towers, Moscow Hefei Metro Line 4 LPH North America OmniTurm, Frankfurt LPH Europe Suzhou Metro Line 5 Wi

  14. Slide 14: Improving EBIT in spite of FX-burden and long-term investments

    We Elevate… Results Improving EBIT in spite of FX-burden and long-term investments Annual EBIT1) growth EBIT1) growing >CHF 65 m p.a. on average In CHF million 112 110  Increasing cost base to absorb growth 79 73 59  Material cost pressure and wage inflation 60  Strategic investments into technol

  15. Slide 15: Six priorities to do things sustainably

    We Elevate… Sustainably Six priorities to do things sustainably Goals for 2022 – setting focus on areas with the greatest possible impact Enhance safety Pioneer smart urban mobility Reduce the number of employee incidents and Increase to over half a billion people per day injuries by improving our T

  16. Slide 16: 3. Innovation for a unique user experience

    3. Innovation for a unique user experience 16

  17. Slide 17: OmniTurm, Frankfurt: Seamless mobility in action

    OmniTurm, Frankfurt Seamless mobility in action 44 floor office and residential building: 11 elevators, 147 PORT video intercoms, 116 PORT doors, and 17 visitor stations Schindler Ahead ActionBoard Real-time information and PORT 4 Home performance status of elevators Bringing visitors seamlessly to

  18. Slide 18: Schindler Ahead: Pioneering digitalization

    Schindler Ahead Pioneering digitalization Digital products Schindler Ahead Connectivity Schindler Ahead Schindler Ahead RemoteMonitoring ActionBoard Schindler Ahead Schindler Ahead Schindler Ahead 1. DoorShow SmartMirror AdScreen  New digital products launched in 2019  Number of connected units si

  19. Slide 19: Digitalized service offering

    Digitalized service offering Bridging technology to customer benefits Technical operation centers (TOCs)  Core of the Schindler Ahead closed-loop system  Addressing issues, coordinating actions, and deployment of technicians  Covering 75% of connected units  Global ramp-up until end of 2020  Ac

  20. Slide 20: The Digital Twin: Changing the way of work

    The Digital Twin Creation of a Digital Twin for each product, Changing the way of work enabling all information along the value chain to be accessed digitally in real time and worldwide Traditional view: step-by-step approach Situation tomorrow: digital data continuity Marketing & Design Industriali

  21. Slide 21: Modularity program

    Modularity program Adding the extra to the ordinary  Sales started in several markets  Range of user-friendly design options streamlining component variance and solutions  Advanced connectivity  Unique user experience through cloud- enabled digital features  Videos and messages can be shared on

  22. Slide 22: Digitalization in the field: Schindler R.I.S.E

    Digitalization in the field Schindler R.I.S.E Robotic installation system for elevators  First mover in the construction industry  Efficient, autonomous, self-climbing robot for safe and high-quality installation of elevators  Eliminating repetitive and physically demanding work  Robotics resear

  23. Slide 23: Escalator leadership: The Schindler 9300 Premium

    Escalator leadership The Schindler 9300 Premium  Top-notch quality and sustainable materials  Premium silence  A+++ energy classification  Seamless BIM support  Unique Schindler Ahead services 23 I © Schindler 2020 I We Elevate I February 14, 2020 I Investor Relations

  24. Slide 24: 4. Results 2019

    4. Results 2019 24

  25. Slide 25: Global markets in 2019: Key developments

    Global markets in 2019 Key developments Global demand for new installations slightly up (in units)  China: growth mainly driven by residential construction segment and public transport  India: growth particularly in the second half of the year  USA: slightly declining from a high level after many

  26. Slide 26: Highlights January to December 2019

    Highlights January to December 2019 Another year of growth Long-term objectives and strategic initiatives on track  Strong top-line growth maintained, market position further strengthened  Growth across all product lines and regions, successful in major project wins  Higher costs, foreign currenc

  27. Slide 27: Asia-Pacific: Driving global new installations demand again

    Asia-Pacific Driving global new installations demand again Overall positive markets for new installations  Slowing economic growth in many markets impacting construction industry  Construction sector benefited from continued urbanization and infrastructure spend  China: growth, contrary to expect

  28. Slide 28: Americas: US new installations market began to cool

    Americas US new installations market began to cool Broadly stable new installations markets overall  North America: slightly slowing down after a strong cycle, mainly driven by multi-family residential and commercial construction; infrastructure, institutional buildings, and large projects still so

  29. Slide 29: EMEA: Overall declining new installations market

    EMEA Overall declining new installations market New installations markets with mixed development  Northern Europe: solid market development on a high level; maintained momentum in residential construction and infrastructure; commercial construction segment subdued; challenges in project execution i

  30. Slide 30: Key figures as of December 31, 2019: October to December

    Key figures as of December 31, 2019 October to December In CHF million Q4 2019 Q4 2018 Δ% Δ% in LC Order intake 3 114 3 016 3.2 5.7 Revenue 3 016 2 940 2.6 5.0 Operating profit (EBIT) 335 343 –2.3 0.6 in % 11.1 11.7 Operating profit (EBIT), adjusted 364 1) 354 2) 2.8 5.6 in % 12.1 12.0 Financing and

  31. Slide 31: Key figures as of December 31, 2019: January to December

    Key figures as of December 31, 2019 January to December In CHF million FY 2019 FY 2018 Δ% Δ% in LC Order intake 12 123 11 669 3.9 5.8 Revenue 11 271 10 879 3.6 5.6 Operating profit (EBIT) 1 258 1 269 –0.9 1.3 in % 11.2 11.7 Operating profit (EBIT), adjusted 1 314 1) 1 295 2) 1.5 3.6 in % 11.7 11.9 F

  32. Slide 32: Backlog & revenue by region

    Backlog & revenue by region Robust order backlog provides solid base for future growth Revenue growth by region (in LC) In % Order backlog 2019: CHF 9 042 million (+7.6% in LC) 2018: CHF 8 618 million 8 2019 2018 Asia-Pacific 38% 38% 6 Americas 32% 31% EMEA 30% 31% 4 2 Revenue 2019: CHF 11 271 milli

  33. Slide 33: Dividend: Proposal to the Annual General Meeting of CHF 4.00

    Dividend Proposal to the Annual General Meeting of CHF 4.00 Dividends Schindler Holding Ltd. in CHF 5.00 4.00 3.00 Dividend proposal Special dividend 2.00 Ordinary dividend 1.00 0.00 2015 2016 2017 2018 2019 41.9 70.0 52.0 45.5 49.8 Pay-out ratio in % of earnings per registered share/participation c

  34. Slide 34: 5. Outlook 2020

    5. Outlook 2020 34

  35. Slide 35: Outlook 2020

    Outlook 2020 Status as of February 14, 2020 Business environment Schindler guidance for FY 2020  Long-term growth drivers remain  Significant coronavirus pandemic intact implications on operations and results  Solid backlog  Revenue growth of between 0% to 5%  Service business growth in local c

  36. Slide 36: Financial calendar

    Financial calendar 2020 2021 Full year results media conference February 14 February Closing date of shareholders' register March 12 Ordinary General Meeting Schindler Holding Ltd. March 19 March 23 1) First trading date ex-dividend March 23 1) Date of Schindler Holding Ltd. dividend payment March 2

  37. Slide 37: Additional charts

    Additional charts 37

  38. Slide 38: Balance sheet

    Balance sheet In CHF million 31.12.2019 1) in % 31.12.2018 in % Cash and cash equivalents 2 370 22.4 2 248 22.5 Other current assets 4 587 43.2 4 252 42.7 Total current assets 6 957 65.6 6 500 65.2 Non-current assets 3 641 34.4 3 476 34.8 Total assets 10 598 100.0 9 976 100.0 Current liabilities 5 1

  39. Slide 39: Quarterly overview 2019/2018

    Quarterly overview 2019/2018 Highest order intake and operating profit per quarter In CHF million 2019 2018 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Order intake 3 114 2 919 3 122 2 968 3 016 2 784 3 047 2 822 Revenue 3 016 2 824 2 849 2 582 2 940 2 684 2 782 2 473 Operating profit (EBIT) 335 327 322 274 343 313 332

Schindler Holding — FY2019 Earnings Presentation on 6ix