Knorr-bremse Ag · XETR:KBX
Knorr-bremse — FY2018 Earnings Presentation
24 slides from Knorr-bremse's earnings presentation, Mar 7, 2019
Slide 1: Preliminary figures 2018 and guidance 2019
Preliminary figures 2018 and guidance 2019 KLAUS DELLER I CEO RALPH HEUWING I CFO MUNICH, 7 MARCH 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: Highlights KB Group 2018
… Highlights KB Group 2018 ▪ Successful IPO and listing on the Frankfurt stock exchange on 12 October 2018 ▪ Setting new standards at tradeshows Innotrans, IAA and Automechanika ▪ Dynamic growth towards a new record group revenue level of 6,616 mEUR within guidance of 6,600 – 6,700 mEUR despite macr
Slide 4: Successful IPO on October 12, 2018
Successful IPO on October 12, 2018 3.85bn 2nd-biggest ▪ Issue price of 80 EUR ~30% IPO EUR total issue Free float in Germany in ▪ Outperformed STOXX Ind., DAX, and MDAX volume 2018 ▪ Balanced geographical distribution of top investors 115% ▪ Sustained interest for meetings at conferences and 110% ro
Slide 5: Growth by M&A and strategic partnerships 2018
Growth by M&A and strategic partnerships 2018 Systems for Rail Vehicles Systems for Commercial Vehicles M&A Regional Deal Regional Deal Target target Focus Scope Focus Scope Industrial Property Steering systems for Rights for Hitachi commercial vehicles, Federal development and Automotive strengthen
Slide 6: FY and Q4 2018 key figures – record sales of 6,616 mEUR
… FY and Q4 2018 key figures – record sales of 6,616 mEUR mEUR 9M 2018 FY 2018 FY 2017 ∆ Q4 2018 Q4 2017 ∆ Revenue @ actual FX 4,994 6,616 6,154 +7.5% 1,622 1,591 +1.9% Revenue @ constant FX 6,798 6,154 +10.5% Order intake 5,266 7,001 6,657 +5.2% 1,736 1,791 -3.1% Order book 4,449 4,563 4,177 +9.2%
Slide 7: FY and Q4 2018 key figures – adjusted EBITDA margin close to PY level
… FY and Q4 2018 key figures – adjusted EBITDA margin close to PY level mEUR 9M 2018 FY 2018 FY 2017 ∆ Q4 2018 Q4 2017 ∆ EBITDA 876 1,178 1,116 +5.6% 302 337 -10.5% EBITDA margin 17.5% 17.8% 18.1% 30 bps 18.6% 21.2% -260 bps EBIT 718 972 904 +7.6% 254 287 -11.5% EBIT margin 14.4% 14.7% 14.7% 0 bps 1
Slide 8: FY and Q4 2018 key figures – adjusted EBIT margin above PY level
… FY and Q4 2018 key figures – adjusted EBIT margin above PY level mEUR 9M 2018 FY 2018 FY 2017 ∆ Q4 2018 Q4 2017 ∆ EBITDA 876 1,178 1,116 +5.6% 302 337 -10.5% EBITDA margin 17.5% 17.8% 18.1% 30 bps 18.6% 21.2% -260 bps EBIT 718 972 904 +7.6% 254 287 -11.5% EBIT margin 14.4% 14.7% 14.7% 0 bps 15.7%
Slide 9: All regions contributed to strong revenue growth
… All regions contributed to strong revenue growth Revenue (regional split) mEUR Europe Asia/Pacific North America South America 7.5% x.x% y-o-y growth ▪ Global growth +462 mEUR (+7.5% vs PY) 6,616 ▪ EU: 6,154 103 10.7 93 ➢ Strong development throughout the year 1,469 13.5 carried especially by OE 1
Slide 10: Innovation agenda continued, resource base strengthened
… Innovation agenda continued, resource base strengthened R&D Employees (eop incl. leasing) mEUR % of sales FTEs RVS CVS Other 5.8% RVS R&D highlights 5.5% ➢ NextGen break valve designs 2% ➢ Ecodesign for HVAC and doors 359 364 CVS R&D highlights: 42% 56% ➢ ADAS/HAD – continued invest ➢ GSBC – Globa
Slide 11: RVS: Strong growth with solid margin expansion
… RVS: Strong growth with solid margin expansion Revenue & EBITDA margin & EBIT margin mEUR ▪ Strong revenue growth of +6.2% (Q4: -2.1%), all major regions contributed ➢ EU: Growth in OE (Locomotives, R&C, Metro); EBITDA 19.6% 23.6% 23.3% 20.0% AM share moderately below PY, despite Margin disposals
Slide 12: RVS: Strong order book development provides good visibility for 2019
… RVS: Strong order book development provides good visibility for 2019 Order book & order intake mEUR Order intake Order book ▪ Strong order intake increase +262 mEUR (+7.4% vs PY) ➢ Book to bill of 1.10 (PY: 1.08) 3,798 ▪ Growth drivers in orders: 3,536 3,212 ➢ Asia: Metro business in China & India
Slide 13: CVS: Globally increasing TPR driving very dynamic revenue growth
… CVS: Globally increasing TPR driving very dynamic revenue growth Revenue & EBITDA margin & EBIT margin mEUR ▪ TPR growth of 6.0% globally EBITDA ▪ Very dynamic revenue growth of 9.3% (Q4: +7.8%) Margin 17.4% 16.4% 20.8% 16.3% across all regions EBIT ➢ EU: Resilient growth above market Margin 14.6%
Slide 14: CVS: Healthy order book development provides good visibility for 2019
… CVS: Healthy order book development provides good visibility for 2019 Order book & order intake mEUR Order intake Order book ▪ Moderate order intake increase +85 mEUR (+2.7% vs PY) ➢ Book to bill of 1.02 (PY: 1.08) 3,123 3,208 ▪ Solid OE order bookings in key markets EU & NA driving KB order intak
Slide 15: Strong OE growth and disposals leading to lower aftermarket share
… Strong OE growth and disposals leading to lower aftermarket share Aftermarket (German GAAP) RVS Aftermarket ▪ Strong OE growth in 2018 combined with disposal diluted AM contribution from 35.3% to 33.8% AM AM ➢ RVS: +1.5% after strong overhaul cycle in 2017 (+5.8% 42% 40% 58% 60% adjusting for dive
Slide 16: 2018 guidance fully delivered
… 2018 guidance fully delivered 2018 guidance 2018 result P&L Revenue ▪ 6,600 – 6,700 mEUR ▪ 6,616 mEUR EBITDA margin ▪ 17.5% – 18.5% ▪ 17.8% (adj. 18.0%) ▪ Capex ratio in line with 2014 – 2017 average Capex ➢ RVS: c. 4% of revenue ➢ CVS: c. 4% of revenue Cash flow ▪ DWC requirements expected to
Slide 17: Market environment RVS for 2019
… Market environment RVS for 2019 Key observations ▪ Healthy fundamental demand driven by mega-trends ▪ Car builders with very strong order books ▪ China rail infrastructure stimulus expected to materialize medium-term North Europe America Asia ▪ Solid project pipeline in OE and AM ▪ Strong KB order
Slide 18: Market environment CVS for 2019
… Market environment CVS for 2019 Key observations TPR forecast 2019 [1,000 units]* ▪ Flat-ish TPR development: slight growth in NA, flat in EU and North America Europe temporarily declining in AP 446 450 514 520 522 ➢ Solid visibility given OEM order books 360 464 325 ▪ Continued CPV growth, driven
Slide 19: 2019 guidance – fully on track towards our mid-term guidance
… 2019 guidance – fully on track towards our mid-term guidance 2019 guidance ▪ Group: 6,800 – 7,000 mEUR (+3.8% – 6.9% after eliminating disposals) Revenue ▪ Assuming constant currencies, organic growth only, already considering disposals ▪ Unchanged economic & political environment P&L ▪ 18.0% – 19
Slide 20: Medium-term guidance unchanged
… Medium-term guidance unchanged Medium-term guidance ▪ Group organic CAGR of c. 4.5%–5.5% ➢ RVS c. 5–6% Revenue ➢ CVS c. 4–5% P&L ▪ Assuming constant currencies ▪ Margin expansion c. 150 bps compared to 2017 EBITDA Margin ➢ Driven by both divisions ➢ RVS division slightly ahead vis-à-vis CVS divisi
Slide 21: Highlights KB Group 2018
… Highlights KB Group 2018 ▪ Successful IPO and listing on the Frankfurt stock exchange on 12 October 2018 ▪ Setting new standards at tradeshows Innotrans, IAA and Automechanika ▪ Dynamic growth towards a new record group revenue level of 6,616 mEUR within guidance of 6,600 – 6,700 mEUR despite macr
Slide 22: Q&A
Q&A Knorr-Bremse Group
Slide 23: Financial calendar
… Financial calendar Upcoming events Event Date [mm/dd/yyyy] Location 03/11/2019 New York Investor Roadshow 03/12/2019 London MS Industrial Day 03/14/2019 Paris BAML European 03/19/2019 London Conference Full Year report 04/30/2019 Munich 1Q 2019 Analyst Call 05/30/2019 Munich Annual General Meeting
Slide 24: Contact
… Contact Investor relations contact Andreas Spitzauer (from 1 April 2019) 2017 – 2019 Head of IR Osram Licht AG 2008 – 2017 Head of IR KUKA AG Harald Kinzler (until 31 March 2019) Phone: +49 89 3547 1498 Email: investor.relations@knorr-bremse.com Justinian Späth Phone: +49 89 3547 181085 Email: inv