Knorr-bremse Ag · XETR:KBX
Knorr-bremse — Q1 2024 Earnings Presentation
24 slides from Knorr-bremse's earnings presentation, May 8, 2024
Slide 1: Q1/24 Financial Results
STRICTLY CONFIDENTIAL Q1/24 FINANCIAL RESULTS MARC LLISTOSELLA I CEO FRANK WEBER I CFO May 8, 2024
Slide 2: Key take-aways today
Key take-aways today Good start in 2024 BOOST program on track BROWNFIELD: Kiepe and Safety Direct sold and process of other assets on track GREENFIELD: Acquisition of Alstom Signalling NA Continuation of reliable dividend strategy: € 264m paid Guidance FY24 confirmed 2
Slide 3: Accretive Alstom Signalling NA business – strategic rationale
Accretive Alstom Signalling NA business – strategic rationale ~€ 300m revenues Accretive deal underpins BOOST FY241 Underline KB’s transformation path ~16% op. EBIT margin FY241 Increase of rail revenue share Increase of NA revenue share >60% AM revenue share Expansion of addressable rail market CCS
Slide 4: Market development: Rail solid globally and Truck challenging in EU
Market development: Rail solid globally and Truck challenging in EU CURRENT SITUATION OUTLOOK FY24 EU/ NA: solid growth continues CN: good AM and supportive HS business due to improving ridership levels EU: solid growth continues, shift to rail (green deal) and replacement of obsolete fleets
Slide 5: Q1/24: Strong margin increase and FCF improved
Q1/24: Strong margin increase and FCF improved OPERATING REVENUES OF EBIT MARGIN ORDER INTAKE € 1.97bn 12.1% FREE CASHFLOW (+3% yoy) € 2.11bn (PY: 10.0%) € -95m (-3% yoy) (PY: € -199m) ORDER BOOK € 0.96bn 15.1% € 6.73bn -59% CASH (org. +3% yoy1) CONVERSION € 1.01bn 11.0% RATE 1) Organic development
Slide 6: FCF & ROCE strongly improved by increased EBIT
FCF & ROCE strongly improved Net Working Capital Efficiency by increased EBIT CapEx NWC1 Free Cashflow ROCE1 (annualized) [€m] % of sales [€m] Scope of days [€m] [%] 3.6% 70.9 69.0 3.4% 19.7% 72 1,504 1,513 64 15.9% -95 -199 Q1/23 Q1/24 31.03.23 31.03.24 Q1/23 Q1/24 Q1/23 Q1/24 1) Figures 31.03.23 a
Slide 7: RVS: Strong order book and Book-to-bill >1 for 10 quarters in a row
RVS: Strong order book and Book-to-bill >1 for 10 quarters in a row Order intake [€m] Order book [€m] 1.17 Book-to-bill 1.10 OI higher yoy due to EU -5.7% Order book remains on +6.2% high level EU: significantly higher 5,026 80 driven by OE and AM 4,739 ▪ Order book adjusted by 1,062 1,000 AP: I
Slide 8: RVS: All regions grew in OE and AM business as well as significant margin improvement
RVS: All regions grew in OE and AM business as well as significant margin improvement overall Revenue [€m] Op. EBIT [€m]/ Margin1 15.1% Organic revenues up 12.7% 13.1% Op. EBIT margin increase driven by volume +12.7% Revenue growth supported 141 by volume & prices Improved pricing of new 964 +30
Slide 9: CVS: Order book of € 2bn provides sound visibility and B-t-B >1
CVS: Order book of € 2bn provides sound visibility and B-t-B >1 Order intake [€m] Order book [€m] 1.12 Book-to-bill 1.04 OI solid on high level, -4.7% Order book remains on high -10.6% after record demand level and close to € 2bn 2,091 1,176 EU: weaker in Q1/24 after 1,991 EU and NA slightly low
Slide 10: CVS: Better pricing and cost discipline lead to solid margin increase
CVS: Better pricing and cost discipline lead to solid margin increase Revenue [€m] Op. EBIT [€m]/ Margin1 11.0% 9.0% Revenue drivers Profitability improved as -4.0% EU: slight revenue promised 1,053 decrease due to OE in Positive impact by price Q1/24, but good demand spill over effects yoy in
Slide 11: Acquisition of Alstom Signalling NA with positive financial implications
Acquisition of Alstom Signalling NA with positive financial implications Deal multiple KB revenue split ~13x ~13x+ Truck >50% ✓ Attractive price ~16% 11.3% EBIT margin FY241 A.Sig.NA op. EBIT margin FY23 EBIT margin potential >50% Rail <50% 16%+ ✓ Accretive business KB A.Sig.NA ~16.0% FY23 mid-term
Slide 12: What's new, What's next: cultural development @KB
ML Cultural development @KB in last 15 months Speak-up / Failure culture What’s new Remuneration bonus system more profit and cash focused Clear strategy and portfolio optimization fuels team spirit Walk the talk What’s next Expansion of global responsibilities Execution is KING 12
Slide 13: Guidance FY24 confirmed
Guidance FY24 confirmed Revenue [€m] Op. EBIT Margin Free Cashflow [€m] General Assumptions: ▪ Stable FX yoy 7,926 7,700-8,000 11.5-12.5% 550-650 ▪ Essentially stable geopolitical and 11.3% macroeconomic conditions 552 Divisional Assumptions: RVS: ex. Kiepe1 ex. Kiepe1 ex. Kiepe1 ▪ Solid organic rev
Slide 14: Q&A / Backup
Q&A / Backup
Slide 15: Financial calendar 2024: Upcoming events and FY24 release dates
Financial calendar 2024: Upcoming events and FY24 release dates DATE EVENT LOCATION May 8 Q1/24 financial results Online May 14 UBS Midcap Conference London May 15 Stifel Conference Frankfurt May 21 Berenberg Conference New York May 22-23 db Access European Conference Frankfurt Jun 12-13 JPM Europea
Slide 16: Q1/24 – Group: Order intake and Order book
Q1/24 – Group: Order intake and Order book Order intake [€m] Order book [€m] 1.14 Book-to-bill 1.07 -5.4% 7,116 -2.9% 6,728 ex. Kiepe1 +3.3% 2,176 2,112 6,510 ex. Kiepe1 -26 -8 -27 2,168 -1.2% RVS 5,026 1,000 4,739 RVS ex. Kiepe1 1,062 ex. Kiepe1 992 4,421 CVS 1,176 1,051 CVS 2,091 1,991 Q1/23 Organ
Slide 17: Q1/24 – Group: Revenue development
Q1/24 – Group: Revenue development Revenue [€m] Revenue [€m] By business By region +3.5% 1,974 1,908 116 41 1,908 1,974 35 17.9% SA -18 -31 422 443 +6.1% Asia/ Pacific 4.9% 855 964 495 480 RVS NA -3.0% 1,053 1,011 957 1,011 CVS EU 5.7% Q1/23 Organic M&A1 FX Q1/24 Q1/23 Q1/24 1) Kiepe was deconsolida
Slide 18: Q1/24 – Group op. EBIT growth vs. prior year
Q1/24 – Group op. EBIT growth vs. prior year op. EBIT [€m]/ EBIT Margin1 12.1% 10.0% +24.2% 238 Reported: 52 1 Reported: 190 237 (10.0%) (12.0%) 192 -7 145 RVS +26.1% (15.1%) 112 (13.1%) 111 CVS 95 (11.0%) (9.0%) Q1/23 Organic M&A FX Q1/24 1) M&A: before PPA 18
Slide 19: Group: Income statement
Group: Income statement 2023 2024 Q1/23 Q2/23 Q3/23 Q4/23 FY23 Q1/24 EUR million Revenues 1,907.6 2,009.9 1,938.8 2,069.3 7,925.6 1,974.2 Change in inventory of unfinished/finished products 5.4 12.0 9.1 -36.1 -9.6 52.1 Own work capitalized 27.1 26.1 25.2 34.9 113.3 32.4 Total operating performance 1
Slide 20: Group: Cashflow statement
Group: Cashflow statement 2023 2024 in EUR million Q1/23 Q2/23 Q3/23 Q4/23 FY23 Q1/24 Net cash flows from/used in operating activities -137.0 105.3 306.8 639.5 914.6 -48.3 Net cash flows from/used in investing activities -110.7 -69.1 -88.3 -14.3 -410.6 -8.1 Net cash flows from/used in financing acti
Slide 21: Group: Balance sheet/ assets
Group: Balance sheet/ assets 2023 2024 31.03.2023 30.06.2023 30.09.2023 31.12.2023 31.03.2024 in EUR million Assets Intangible assets and goodwill 1,337.7 1,331.9 1,343.8 1,466.9 1,467.1 Property, plant and equipment 1,820.0 1,798.0 1,804.3 1,863.9 1,864.1 Investments accounted for using the equity
Slide 22: Group: Balance sheet/ liabilities
Group: Balance sheet/ liabilities 2023 2024 in EUR million 31.03.2023 30.06.2023 30.09.2023 31.12.2023 31.03.2024 Equity Subscribed capital 161.2 161.2 161.2 161.2 161.2 Capital reserves 13.9 13.9 13.9 13.9 13.9 Retained earnings 10.3 10.3 4.8 9.4 9.4 Other components of equity -138.1 -167.8 -131.2
Slide 23: Investor relations contact
Investor relations contact Andreas Sophia Stephanie Spitzauer Kursawe Jaschiniok +49 89 3547 182310 +49 89 3547 187311 +49 89 3547 183466 +49 175 5281320 +49 151 62330709 +49 171 8451732 Andreas.Spitzauer@knorr-bremse.com Sophia.Kursawe@knorr-bremse.com Stephanie.Jaschiniok@knorr-bremse.com 23
Slide 24: 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