Jost Werke Se · XETR:JST
Jost Werke — 9M 2019 Earnings Presentation
27 slides from Jost Werke's earnings presentation, November 2019
Slide 1: Investor presentation – JOST Werke AG 9M 2019 update
Investor presentation JOST Werke AG ‒ 9M 2019 update
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 Strong brands with high Strong growth fundamentals in % of sales (incl. JV) customer loyalty South America Europe (incl. JV) 755m€ 7 9% p.a. CAGR 19 North America 50 APA 24 2003 2010 2018 Ap
Slide 4: Strong Products Driving Brand Desirability and Pulling Demand
Strong Products Driving Brand Desirability and Pulling Demand Vehicle Interface Maneuvering Systems Handling Solutions 74% of sales in 2018 16% of sales in 2018 10% of sales in 2018 Truck OEMs Trailer OEMs Fleet operators ▪ High demand from fleet JOST system ▪ Strong brand and reputation PUSH PULL o
Slide 5: Main Products Overview
Main Products Overview Turntable Drawbar Towing Hitch Container Technology, Tag Axle Supporting Leg Tipping Cross Member Cylinder Axles Varioblock Rockinger Agriculture Landing Gear Coupling King Pin Fifth Wheel Wet Kits Forced Steering Turntable Drawbar 4
Slide 6: Investment Highlights
Investment Highlights 5
Slide 7: 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 #2 #1 Europe #1 #1 Europe North North #1 America #1 America South #1 Asia-Pacific- South #1 Asia-Pacific- America2 Africa America2 Africa Fifth wheel m
Slide 8: Growth Engine: Upselling through Innovation
Growth Engine: Upselling through Innovation Increasing value-add for customers and generation growth through clear innovation road-map Autonomous Autonomous docking systems systems ▪ Pre-requisite for autonomous driving Future ▪ Efficiency boost for fleet operators growth ▪ Advanced smart system sol
Slide 9: 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 GROWTH structural and legislative changes ▪ Localizing of existing products
Slide 10: 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) CAGR CAGR CAGR CAGR CAGR: 5% CAGR: 3% CAGR: 1% CAGR: 3% 2015-2019 2019-2025 2015-2019 2018-2022 3.6 1.3 1.1 3.1 1.1 0.6 2.5 2.1 0.4 0.5 7% 3% 3% 6%
Slide 11: High Aftermarket Content and High Customer Fragmentation Support Business Resilience
High Aftermarket Content and High Customer Fragmentation Support Business Resilience High customer fragmentation Fifth wheels Landing gear 51% Top customer Other <10% of sales Top 25 customers represent 49% of sales After market value After market value 200-300% 50% of OEM first fit sales of OEM fir
Slide 12: 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 materials/ processing/ Coating Assembly Painting Vehicle as
Slide 13: Efficient and Flexible Supply and Production Platforms with Wide Geographical Footprint
Efficient and Flexible Supply and Production Platforms with Wide Geographical Footprint 19 production sites 21 countries 2,900 employees Purchasing Low cost regions3 by region4 41% 59% 46% 54% High cost regions4 Low cost High cost countries1 countries2 1 Low-cost countries include Russia, Poland, Hu
Slide 14: JOST Investment Case Summary
JOST Investment Case Summary BUSINESS MODEL EARNINGS CASH FLOW Sustainable market growth Strong brands with high Strong balance sheet and thanks to global footprint costumer loyalty worldwide high cash generation and strong fundamentals Wide diversification by Conservative financial Flexible and ass
Slide 15: Key Financials – Solid Economic Performance
Key Financials – Solid Economic Performance 14
Slide 16: Business Highlights – 9M 2019
Business Highlights – 9M 2019 Markets slowed down in Q3; group sales in 9M up +1.9% to €579m JOST’s sales in Europe were down by -2.3% to €343m in 9M, despite strong decline of trailer Sales markets North America continued with strong momentum +20.9% to €129m in 9M Sales in APA down -3.1% to €107m a
Slide 17: Sales Growth Supported by Strong Earnings
Sales Growth Supported by Strong Earnings Sales split by geography (€m) 9M 2019 commentary Growth (%) CAGR: 10.0% /6.6%1 7.7% 1.9% 755 ❖ Continued high activity level in 701 650 634 146 3.1% North America partially offset 99 142 568.1 579.1 516 103 22.8% weakness of markets in Europe 118 146 -3.1% 8
Slide 18: Strong Cash Generation Profile Supported by Low Capex Spend
Strong Cash Generation Profile Supported by Low Capex Spend Key financials overview 9M 2019 commentary Cash 72.6% 60.9% 76.4% 79.6% 80.1% 82.0% 86.7% conversion1 Cash flow1 (€m) ❖ High capital efficient business model with 75 80 72 strong cash conversion 60 65 51 47 FY2014A FY2015A FY2016A FY2017A F
Slide 19: Equity Ratio and Net Debt Stable on an Excellent Level
Equity Ratio and Net Debt Stable on an Excellent Level Balance sheet overview 2019 commentary ❖ ROCE only slightly down to 19.2% despite increase of other ROCE1 (%) financial liabilities following the 20.3% 19.2% first-time adoption of IFRS 16 Dec 31, 2018 Sept 30, 2019 ❖ Equity ratio increased comp
Slide 20: Truck and Trailer Market Outlook for 2019
Truck and Trailer Market Outlook for 2019 Europe North America APA (1)-0% 5-10% (10)-(5)% Truck Slight decline expected due to Another strong year on top of Market slow down continues increasing weakness in Q4 already very high levels (15)-(10)% 0-3% (10)-(5)% Trailer Declining market expected Growt
Slide 21: Outlook for FY 2019
Outlook for FY 2019 FY 2018 Outlook 2019 (old)1 Outlook 2019 (new) Sales 755 Low-single-digit % growth Low-single-digit % decline Adjusted EBITDA 100 Low-single-digit % growth Low-single-digit % decline Adjusted EBIT 81 Low-single-digit % growth Low-single-digit % decline Adjusted EBIT margin 10.7%
Slide 22: Appendix
Appendix 21
Slide 23: 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) 199 202 190 191 187 187 181 181 178 172 171 168 166 149 147 23.7 23.9 22.5 22.7 21.8 21.3 20.6 20.3 19.5 19.0 16.8 15.9 14.1 12.5% 12.5% 12.0% 12.0% 12.0% 11.4% 12.6 11.2%10.8% 11.2% 10.7% 10.2% 10.4 9.4% 8.5% 7.5% 7.
Slide 24: Adjusted net income and adjusted EPS increased in 9M 2019
Adjusted net income and adjusted EPS increased in 9M 2019 Reconciliation of adjusted earnings 1 3.1% 19 ( 5) (18) 66 46 43 42 34 Net income EBIT PPA other effects Adj. EBIT Finance Proforma adj. net income adj. net income 9M 2019 9M 2019 9M 2019 result tax rate 30% 9M 2019 9M 2018 ( ) Key highlights
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 Strong margin resilience High cash flow generation Indexed to 2003 Adjusted EBITDA margin (%) Cash co
Slide 26: Shareholder Structure and Share Information
Shareholder Structure and Share Information Shareholder structure as of November 15, 20191 Earnings per share (€) 9M 2018 9M 2019 15.1% EPS 2.91 2.31 Allianz Global Investors Atlantic Value Adj. EPS 2.78 2.87 7.1% Morgan Stanley Share information Paradice Investment 57.2% 100% free float 5.1% Manage
Slide 27: Further Information
Further Information Financial Calendar 2019 IR Contact Nov. 21 Publication of 9M 2019 Report Romy Acosta Senior Manager Investor Relations Nov. 22 Road show London, UK romy.acosta@jost-world.com Phone: +49-6102-295 379 Financial Calendar 2020 Fax: +49-6102-295 661 Jan. 10 ODDO BHF Forum 2020, Lyon/F