Slide 1: Annual Results Presentation 2014
Schindler Annual Results Presentation 2014 Lucerne, February 13, 2015 Macquarie Bank Headquarters, Sydney, Australia Winner of 2015 Project of the Year award by Elevator World magazine Category 1: Elevators, New Construction
Slide 2: Highlights 2014
Highlights 2014 Growth agenda delivered: Solid growth and increased profits Financials Accelerated growth in orders and revenue High net profits and strong cash flow Strong Q4: Orders and revenue at unprecedented levels EBIT margin at 11% before restructuring cost / impairment Negative F
Slide 3: Growth agenda at work
Growth agenda at work Major shift of orders and revenue to Asia-Pacific 24% 26% 32% 36% Order backlog 41% 44% 35% 32% 30% 2005 2010 2014 15% 19% 29% Revenue 56% 52% 43% 29% 29% 28% © Schindler | Annual Results Presentation 2014 Slide 3
Slide 4: Global New Installations market with ~6% growth in 2014
Global New Installations market with ~6% growth in 2014 Plus 46 000 units: Lion’s share from China NI E&E market (units) +5.9% 828k 782k 134 138 China +28k units 48 48 Asia Pacific (ex. China) +14k units Europe +4k units 642 Americas stable 600 Total +46k units 2013 2014 AP AM EU © Schindl
Slide 5: "Second Planet" Hubs: Platform for growth
“Second Planet” Hubs: Platform for growth Pune, India Shanghai, Shanghai,China China Elevator factory (November 2014) Escalator factory (May 2014) R&D Center and Test Tower (Q2 2015) Elevator factory and Test Tower (Q4 2015) Next step Next steps Escalator factory R&D Center Schindl
Slide 6: Q4 2014: Key figures
Q4 2014: Key figures Improving performance In CHF million Q4/2014 Q4/2013 Δ% Δ% in LC Orders received 2 569 2 256 +13.9 +11.1 Revenue 2 593 2 367 +9.5 +7.6 Operating profit (EBIT) before impairment 2591 214 +21.0 +19.6 in % 10.0 9.0 Operating profit (EBIT) reported 238 214 +11.2 +9.8 in % 9.22 9.0 N
Slide 7: Full year 2014: Key figures
Full year 2014: Key figures Solid growth and increased profit In CHF million 2014 2013 Δ% Δ% in LC Orders received 9 979 9 456 +5.5 +7.8 Revenue 9 246 8 813 +4.9 +7.3 Operating profit (EBIT) before one-offs 9321 896 +4.0 +7.4 in % 10.1 10.2 Operating profit (EBIT) reported 1 138 896 +27.0 +30.4 in %
Slide 8: Full year 2014: Key figures
Full year 2014: Key figures Double-digit growth in order backlog In CHF million 2014 2013 Δ% Δ% in LC Cash flow from operating activities 902 808 +11.6 Investments in property, plant, and equipment 183 252 –27.4 31.12.2014 31.12.2013 Order backlog 9 263 7 722 +20.0 +15.4 Number of employees 54 209 4
Slide 9: Action Plan 2015 Fast Forward
Action Plan 2015 Fast Forward Objectives Strategy execution: Growth above market Growth in Operating Revenue and EBIT Focus on margins Operational Excellence Growth Markets Global Delivery Customer centricity China Cost competitiveness Quality India New supply chain Simplificatio
Slide 10: E&E industry keeps the growth momentum
E&E industry keeps the growth momentum New Installations E&E market (units) ~6% vs Global GDP growth Market 2015 ~875k trends 828k +3.5% ~140 138 +47k units ~50 Europe Uncertainty undermining 48 ROW growth +4k Global cement sales 2015 +2.8% Americas USA recovery drives regional growth AP +43k ~6
Slide 11: China output growing despite deceleration
China output growing despite deceleration Sub-10% growth on a massive base is the “new normal” China nominal GDP and real GDP growth 80 15% 60 10% 40 5% 20 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Nominal GDP (CNY tr) Real change (y‐o‐y) China E&E market v
Slide 12: Accelerating urbanization the growth engine for the E&E industry
Accelerating urbanization the growth engine for the E&E industry Global urbanization and wealth Countries by GDP per capita and urbanization ratio Strong correlation between Switzerland urbanization and economic growth China followed by India, Indonesia and other growth markets China 2030 With
Slide 13: Schindler captures digital opportunities
Schindler captures digital opportunities Internet of Things meets the elevator industry Customers Products People Processes New Customer Portal Smart Products 18’000+ Field Staff Driving Service Efficiency Customer Loyalty + digitized supporting through proprietary Apps Remote Monitoring day-to-da
Slide 14: myPORT – innovative smartphone-based technology
myPORT – innovative smartphone-based technology Mobility, security and seamless access 4-step “e-Banking” security Pune, India Visitor access via smartphone Addressing special mobility needs Hanover, USA © Schindler | Annual Results Presentation 2014 Slide 14
Slide 15: Swiss franc against the euro
15.1.15 Swiss franc against the euro Jan. 15, 2015 07.00 GMT CHF 1.20 17.30 GMT CHF 1.04 © Schindler | Annual Results Presentation 2014 Slide 15
Slide 16: Schindler generates >90% of revenues outside Switzerland
Schindler generates >90% of revenues outside Switzerland Limited transaction risk but large translation impact Revenue 2014 by functional currency Transaction exposure Good match of revenue and cost in functional currencies in operating companies 100% hedging policy for transaction exposure CHF
Slide 17: Strong Swiss franc impact
Strong Swiss franc impact Top line loss of CHF 2.4 bn over the last seven years Translation impact of exchange rates In CHF million 2008 2009 2010 2011 2012 2013 2014 Total Revenue –549 –324 –291 –900 14 –137 –206 –2 393 EBIT –56 –43 –35 –110 –16 –19 –30 –309 200 0 -200 Revenue FX impact on revenue
Slide 18: Outlook 2015
Outlook 2015 Macroeconomic uncertainties Market growth opportunities Growth strategy reinforcement Fast Forward deployment Revenue expected to increase by 7-9% in local currencies Negative translation impact of ~10% on revenue Net profit 2015 forecast to be issued with publication of h
Slide 19: Thank you.
Thank you. Financial calendar 2015 Ordinary General Meeting Schindler Holding Ltd. March 20 Selected key figures as of March 31, 2015 April 28 Interim Report as of June 30, 2015 August 14 Selected key figures as of September 30, 2015 October 23 Corporate Communications Dr. Barbara Schmidhauser, Chie