Jost Werke Se · XETR:JST
Jost Werke — H1 2017 Earnings Presentation
25 slides from Jost Werke's earnings presentation, Aug 28, 2017
Slide 1: H1 2017 Update presentation
H1 2017 Update presentation Lars Brorsen (CEO) Christoph Hobo (CFO)
Slide 2: Disclaimer
Disclaimer THIS FINANCIAL REPORT IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. THIS FINANCIAL REPORT, WHICH HAS BEEN PREPARED BY JOST WERKE AG (THE “COMPANY”), SHOULD NOT BE TREATED AS GIVING INVESTMENT ADVICE AND MAY NOT BE REPRODUCED IN ANY FORM, PASSED ON OR OTHERWISE MADE AVAILABLE, DIRE
Slide 3: Company overview and key highlights
Company overview and key highlights 2
Slide 4: JOST – leading global supplier of safety critical truck and trailer solutions
JOST – leading global supplier of safety critical truck and trailer solutions FY 2016 H1 2017 update Sales / CAGR (14-16A) Adj. EBIT2 / margin CF / Cash conversion3 Sales / y-o-y growth Adj. EBIT 2 / margin €634m / 3.6% 1 €62m / 9.8% €60m / 76.4% €362m / 7.2% €44m / 12.2% Sales by region4,5 Sales by
Slide 5: Key takeaways: Key investment highlights
Key takeaways Key investment highlights 1 Leadership – Global leadership in branded products 2 Attractive company growth – Market outperformance: upselling, market expansion and bolt-on M&A 3 Market growth – Sustained growth on the back of strong fundamentals 4 Diversification – High aftermarket con
Slide 6: Global leadership in branded products
1 Global leadership in branded products One of the leading global suppliers of truck and trailer systems with high market share in core segments JOST has a leading market position in Vehicle Interface systems >50% global market share in articulated truck trailer combinations market Fifth wheel Landi
Slide 7: Market outperformance: upselling, market expansion and bolt-on M&A
2 Market outperformance: upselling, market expansion and bolt-on M&A JOST’s strategy is focused on further enhancing its cash generative baseline business while developing advanced solution systems to provide long-term growth Business area development Example products Operational focus Integrated sy
Slide 8: JOST’s successful strategy to outgrow the market
2 Market outperformance: upselling, market expansion and bolt-on M&A JOST’s successful strategy to outgrow the market JOST’s approach to outperform the market Manual landing gear E-Drive landing gear Increased content compared to base version (e.g >4x for landing gear) Higher content 1 Upselling t
Slide 9: Sustained growth on the back of strong fundamentals
3 Sustained growth on the back of strong fundamentals Truck and trailer in all other regions are expected to outperform GDP growth on the back of favorable long-term economic factors Macro factors supporting robust long-term sector growth Positive GDP and Growing share of road Regulation driving ren
Slide 10: China’s newly implemented truck overload restrictions
3 Sustained growth on the back of strong fundamentals China’s newly implemented truck overload restrictions positively impact truck and trailer demand in China Truck overload restrictions Traditional car carrier in China Implementation of new regulation on truck overload restrictions (GB1589) No
Slide 11: High aftermarket content and high diversification by customer and geography
4 High aftermarket content and high diversification by customer and geography High resilience due to high customers fragmentation and leading AM business High customer fragmentation Attractive AM opportunity 51% Product Other Fifth Landing Top 25 Wheel Gear customers represent 49% of sales¹ AM value
Slide 12: Flexible and asset light business model
5 Flexible and asset light business model Ability to quickly adapt to changing market environment due to asset light and efficient supply and production platform Key parts of the value chain Number of variants 1 20 100 100 1,500 On demand High capex Purchased Mech. Stage Design/ Forging and Quality
Slide 13: Industry-leading margins and cash generation profile
6 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 Strong margin resilience High cash flow generation Indexed to 2003 Adjusted EBITDA margin (%) 400 T
Slide 14: Key financials
Key financials 13
Slide 15: H1 2017 best half year in JOST’s history with strong improvement in margins
H1 2017 best half year in JOST’s history with strong improvement in margins across all regions Sales split by geography 1 (€m) H1 2017 commentary CAGR: 10.8%/3.6%2 7.2% 650 % growth 634 % growth % growth 362 516 15.2% 4.4% 338 Record H1 sales performance, 37.7% 41.6% growth driven by high activity
Slide 16: Net working capital and cash generation
Strong cash generation profile supported by low capex spend and disciplined working capital planning Key financials overview Cash 72.6% 60.9% 76.4% 77.6% 90.0% conversion 1 Cash flow1 (€m) Highly capital efficient business model with strong cash conversion 60 48 and attractive ROCE 51 47 35 FY2014
Slide 17: H1 2017 highlights
H1 2017 highlights Sales +7% to €362m Adj. EBIT +18% Record H1 sales performance Continuing strong growth in APA to €44m Recovering truck markets in North America Stable development in Europe Outlook 2017 confirmed High capital Mid single digit sales growth rate efficiency High single adj.
Slide 18: Subsequent events
Subsequent events Successful listing on Frankfurt stock exchange July 20th €132m capital increase used for refinancing and corporate purposes Attractive new financing resulting in significantly Executed axle aftermarket strategy reduced leverage and interest expenses €180m term loan raised, ma
Slide 19: Outlook 2017 - confirmed
Outlook 2017 - confirmed FY 2016 (€m) 2016(% of sales) Outlook 2017 Sales 634 Mid single digit growth Adjusted EBIT (% margin) 62 9.8% High single digit growth Capex1 (% of sales) 18 2.9% 2.0 – 2.5% of sales Net working capital (% of sales) 123 19.4% <20% Leverage 3.5x ~ 1.5x 1 Capex calculated as p
Slide 20: Appendix
Appendix 19
Slide 21: Reconciliation of earnings
Reconciliation of earnings Key financials Key highlights Adjustments to EBIT Reconciliation of predominantly from D&A of 12.6 PPA adj. EBIT 44.3 0.5 Costs associated with the 31.2 stock listing expected in H2 Reported EBIT Exceptionals D&A from PPA Adj. EBIT For comparability, the (7.8) adjust
Slide 22: Organic sales development
Organic sales development Sales Q1 Sales Q2 Sales growth (%) 7.9% 1.1% 4.5% 0.9% 2 2 8 13 181 181 172 165 Sales Q1 2016 Organic sales FX translation Sales Q1 2017 Sales Q2 2016 Organic sales FX translation Sales Q2 2017 growth effects growth effects 21
Slide 23: Adjusted consolidated statement of income
Adjusted consolidated statement of income Profit & loss statement adjusted for exceptionals, PPA and shareholder loan effects (€m) FY2014A FY2015A FY2016A H1 2016 H1 2017 % Sales 516.3 649.8 633.9 337.6 361.9 7% Cost of sales (376.2) (485.2) (456.1) (247.2) (260.7) 5% Gross profit 140.1 164.6 177.9
Slide 24: Consolidated statement of income
Consolidated statement of income Profit & loss statement (€m) FY2014A FY2015A FY2016A H1 2016 H1 2017 Sales revenues 516.3 649.8 633.9 337.6 361.9 Cost of sales (376.2) (485.2) (456.1) (247.2) (260.7) Gross profit 140.1 164.6 177.9 90.4 101.2 Selling expenses (1.2) (81.0) (82.1) (40.3) (42.4) Resear
Slide 25: JOST’s leading market positions – focus on fifth wheel and landing gear
Global leadership JOST’s leading market positions – focus on fifth wheel and landing gear JOST has a leading market position in Vehicle Interface systems Market shares by sales in OE business by geography Fifth wheel JOST position Landing gear JOST position Global 54% 46% 1 Global 56% 44% 1 Europe 1