Knorr-bremse Ag · XETR:KBX
Knorr-bremse — Q1 2019 Earnings Presentation
17 slides from Knorr-bremse's earnings presentation, May 29, 2019
Slide 1: Financial Results Q1/19 – Capital Market Call
Financial Results Q1/19 – Capital Market Call RALPH HEUWING I CFO MAY 29, 2019 Knorr-Bremse Group
Slide 2: Disclaimer
Disclaimer IMPORTANT NOTICE 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 an invitation to subscribe for, underwrite or otherwise acquire, an
Slide 3: Financial highlights Q1/19 – successful start into 2019
Financial highlights Q1/19 – successful start into 2019 Order intake EBITDA € 1.89bn € 911m margin 19.0% +5.3% yoy Revenue (PY: 18.3%) € 1.76bn EBITDA +8.8% yoy € 334m Orderbook € 4.70bn € 846m +7.8% yoy Knorr-Bremse Group 3
Slide 4: In Q1/19 Knorr-Bremse invested over € 200m in M&A
In Q1/19 Knorr-Bremse invested over € 200m in M&A Hitachi Sentient RailVision Snyder Railnova Closing 29.03.2019 01.02.2019 13.03.2019 15.03.2019 10.04.2019 Hitachi Steering Purchase price / Stake / FY sales € 165m / 100% / € 80m1) € 15m / 50% / n/a $ 10m / 21.3% / n/a $ 19m / 100% / $ 14m € 7m / 32
Slide 5: Q1/19 key figures: strong top-line development
Q1/19 key figures: strong top-line development Order intake Order book Revenue €m €m €m 7.9 8.1 +8.8% 1.11 1.08 +7.8% 1,755 1,614 -1.8% 28 SA 4,701 29 4,361 477 Asia/ +5.3% +7.7% Pacific 443 1,893 1,798 +27.1% 406 NA 320 +2.6% 843 822 EU Q1/18 Q1/19 31.03.18 31.03.19 Q1/18 Q1/19 𝑂𝑟𝑑𝑒𝑟 𝑏𝑜𝑜𝑘…
Slide 6: Q1/19 key figures: solid margin development
Q1/19 key figures: solid margin development EBITDA EBIT €m 19.0% ▪ Margins above 2018 and within guidance 18.3% 15.6% ▪ RVS with margin expansion vs. Q1/19 +13.0% 14.2% ▪ CVS in line with Q3/Q4 2018 IFRS 16 ▪ Stable AM share at 31% (Q1/18: 31%) impact 334 +19.7% ▪ IFRS16 impact in Q1/19: 295 13 IFRS
Slide 7: Good development of operating cash flow in Q1/19
Good development of operating cash flow in Q1/19 NWC FCF&OCF ROCE CapEx1 €m Scope of days €m FCF OCF % €m % of sales 59 53 +9.4% 4.8% 35.6% 1,144 -35.9% 32.2% 2.6% 943 89 81 85 42 41 27 Q1/18 Q1/19 Q1/18 Q1/19 Q1/18 Q1/19 Q1/18 Q1/19 Improvement of Development of FCF IFRS16 impact on ROCE Expansion
Slide 8: RVS: Strong order book development provides good visibility for 2019
RVS: Strong order book development provides good visibility for 2019 Order intake Order book €m 10.7 11.0 Strong growth in order intake: € +92m +11.7% ▪ Driven by demand from Metro (EU & NA), Freight & Locomotive (NA) 1.13 1.14 3,336 2,986 ▪ Growing order intake AM China +9.8% ▪ Book to bill of 1.14
Slide 9: RVS: Strong revenue growth with solid margin expansion
… RVS: Strong revenue growth with solid margin expansion Revenue EBITDA €m Strong revenue growth: € +78m ▪ EU: Growth in OE (Freight Cars, R&C, Metro) ▪ Asia: Outperformance esp. OE India & AM China +9.4% 21.9% ▪ NA /SA: Positive development in onboard, freight 911 & aftermarket 18.8% 833 ▪ AM share
Slide 10: CVS: Solid order intake despite global headwinds
CVS: Solid order intake despite global headwinds Order intake Order book €m 5.3 5.1 Order intake continues on a high level -0.9% ▪ Book to bill (1.02) suggesting no contraction in 1,390 1,377 1.09 1.02 demand ▪ NA orders clearly outperformed TPR growth and 0.6% benefitted from increased content per
Slide 11: CVS: Strong revenue growth with margins at Q3/Q4 2018 levels
… CVS: Strong revenue growth with margins at Q3/Q4 2018 levels Revenue EBITDA €m Strong revenue growth ▪ Global TPR continuing on high level (+1.6% vs. Q1/18) ▪ EU: Stable on prior year level +8.4% ▪ Asia: Stable overall, despite TPR decrease in China 846 ▪ NA: Outperformance of market in both OE an
Slide 12: Acquisition of Hitachi’s Steering business – closed on March 29, 2019
… Acquisition of Hitachi’s Steering business – closed on March 29, 2019 Strategic rationale ▪ Braking and steering increasingly understood as integrated system in ADAS/HAD scenario ▪ Market access in Asia (focus Japan and China) ▪ Expansion of product portfolio of CVS ▪ Increased content per vehicle
Slide 13: Revenue bridge from 2018 to updated 2019 guidance
Revenue bridge from 2018 to updated 2019 guidance €m 6,875 - 7,075 ~75 6,800 - 7,000 3.8 – 6.9% 6,616 68 ▪ CVS: € 60m ▪ RVS: € 15m ▪ Sydac ▪ Blueprint 2018 Disposals Organic Previous 2019 Acquisitions Updated 2019 Growth Guidance Guidance Knorr-Bremse Group 13
Slide 14: EBITDA margin bridge from 2018 to updated 2019 guidance
EBITDA margin bridge from 2018 to updated 2019 guidance 0.7% 18.5 - 19.5% 0.4% 18.0 -19.0% -0.2% 0.2% 17.8% Reimburse- Operating ▪ Hitachi ment of IPO losses of ▪ Snyder costs disposal ▪ Others units (Blueprint, Sydac) 2018 One-time Disposal effects Previous 2019 IFRS 16 Acquisitions Updated 2019 IP
Slide 15: Q&A
«@» Q&A Q1 January 1 to,.March 31, 2019 (((Y)} Knorr-Bremse Group
Slide 16: Financial calendar
… Financial calendar Upcoming events Event Date [dd.mm.yyyy] Location db Access 06.06.2019 Berlin JPM CEO Conference 13.-14.06.2019 London Annual General Meeting 18.06.2019 Munich Knorr-Bremse Group 16
Slide 17: Investor relations contact
… Investor relations contact Andreas Spitzauer Phone: +49 89 3547 182310 Mobile: +49 175 5281320 Email: Andreas.Spitzauer@knorr-bremse.com Justinian Späth Phone: +49 89 3547 181085 Mobile: +49 160 6149309 Email: Justinian.Spaeth@knorr-bremse.com Knorr-Bremse Group 17