Schindler Holding Ltd. · SIX:SCHN
Schindler — Schindler Hldg Ag Akt — Q1 2023 Earnings Presentation
24 slides from Schindler's earnings presentation, Apr 20, 2023
Slide 1: Q1 2023 results
Q1 2023 results April 20, 2023 © Schindler 2023 I © Schindler 2023 I We Elevate I April 20, 2023 I
Slide 2: Key messages
Key messages New installations (NI) Order intake Revenue markets Decrease in NI reflecting Growth across all regions Weakening trend globally, weakening global market trends, and product lines uncertainty persists growth in Service and Repairs Improved EBIT and Progress on disciplined net profit exe
Slide 3: Continued changes to the Executive Committee
Continued changes to the Executive Committee New CTO as of May 1, 2023 Group Executive Committee (as of May 1, 2023) Changes since January 2022 ▪ Combined Chairman and CEO role ▪ New COO position ▪ New Head Asia-Pacific Chairman and CEO ▪ FQE removed from ExCo and S. Napoli lead change ▪ Operations
Slide 4: Staying the course
Staying the course Year-on-year revenue and EBIT evolution (CHF million) Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 158 164 82 71 30 –4 Revenue 0 EBIT – 54 – 77 – 127 – 160 EBIT growth in local currencies –25.7% –38.2% –15.0% +1.2% +39.8% D EBIT margin in percentage points –3.1 –4.0 –2.4 –0.4 +2.1 4 I © Schindle
Slide 5: Agenda
Agenda 1. Market update Silvio Napoli 2. Financial results Carla De Geyseleer 3. Outlook 2023 Carla De Geyseleer 4. Q&A Silvio Napoli/Carla De Geyseleer 5 I © Schindler 2023 I We Elevate I April 20, 2023 I Investor Relations
Slide 6: Updated market outlook 2023
Updated market outlook 2023 New Installations: China bottoming out, Europe and Americas softening. Service and Modernization remain strong. APAC Units China w/o China Americas EMEA Global New Installations ––– ++ – – –– Decline India: growing North America: Europe: persisting Weakening slowing down
Slide 7: China NI: recovery timing and magnitude uncertain
China NI: recovery timing and magnitude uncertain Decline bottoming out Floor space sold showing signs of recovery1) Housing inventory stabilizing across city tiers2) Change in % Months of consumption 120% 30 100% 25 80% 60% 20 40% 15 20% 0% 10 -20% 5 -40% -60% 0 2014 2015 2016 2017 2018 2019 2020 2
Slide 8: Agenda
Agenda 1. Market update Silvio Napoli 2. Financial results Carla De Geyseleer 3. Outlook 2023 Carla De Geyseleer 4. Q&A Silvio Napoli/Carla De Geyseleer 8 I © Schindler 2023 I We Elevate I April 20, 2023 I Investor Relations
Slide 9: Results in a nutshell
Results in a nutshell Revenue and profit growth, improving order intake margins Q1 2023 vs. Q1 2022 Order intake slowing Order intake margin up Solid year-on-year revenue 7’000.00 6’800.00 development 6’600.00 6’400.00 (New Installations year-on-year margin in LC) 6’200.00 6’000.00 5’800.00 5’600.00
Slide 10: Q1 2023 key figures
Q1 2023 key figures Accelerated revenue growth and profit improvement In CHF million Q1 2023 Q1 2022 r% r% in LC Order intake 2 889 3 164 –8.7 –5.0 Revenue 2 796 2 632 6.2 10.0 Operating profit (EBIT) 282 211 33.6 39.8 in % 10.1 8.0 Operating profit (EBIT), adjusted 272 1) 236 2) 15.3 20.8 in % 9.7
Slide 11: Order intake
Order intake Lower NI order intake reflecting weakening global market trends Order intake growth Q1 2023 vs. Q1 2022 in CHF million APAC in CHF million –5.0% China w/o China Americas EMEA Global –8.7% Value (in LC) New Installations ––– ––– ––– ––– ––– Modernization ––– ––– ––– – –– Service ++ ++ ++
Slide 12: Revenue
Revenue Positive growth trajectory continued across all regions and product lines in CHF million in CHF million +1.9% –4.6% +7.9% +4.7% +10.0% +1.2% –5.6% +5.6% +2.8% +6.2% 2 965 3 036 2 713 2 796 2 632 EMEA +++ Americas ++ China + Rest AP +++ Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 0 to <5% + 5% to 10% + + >
Slide 13: Year-on-year EBIT adjusted and EBIT
Year-on-year EBIT adjusted and EBIT Measures implemented fuel continued profitability improvement, supplemented by one-offs EBIT adj. EBIT in CHF million in CHF million Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 71 36 3 1) –4 – 36 – 54 – 65 – 77 – 107 – 127 –20.6% –30.3% –8.8% +3.6%
Slide 14: Year-on-year EBIT adjusted and EBIT
Year-on-year EBIT adjusted and EBIT Measures result in CHF 49 million operational improvement in CHF million Top Speed 23 +7 Restructuring cost +1 Real estate gain +26 BuildingMinds +1 EBIT adj. EBIT Opera- Δ Adjust- FX EBIT EBIT adj. Q1 22 Q1 22 tional ments Q1 23 Q1 23 Margin 9.0% 8.0% 10.1% 9.7%
Slide 15: Operating cash flow
Operating cash flow Improved profitability offset by higher NWC requirements in CHF million + Growth in Maintenance & Repairs + Lower income tax + Supply chain recovery payments + Gain on real estate sale + Other non-cash and – Cost inflation non-operational – Low margin backlog items rollout – Work
Slide 16: Agenda
Agenda 1. Market update Silvio Napoli 2. Financial results Carla De Geyseleer 3. Outlook 2023 Carla De Geyseleer 4. Q&A Silvio Napoli/Carla De Geyseleer 16 I © Schindler 2023 I We Elevate I April 20, 2023 I Investor Relations
Slide 17: Outlook 2023
Outlook 2023 Uncertain environment Persistent focus ▪ China: Timing and magnitude of recovery Disciplined execution of strategic priorities focusing on: uncertain ▪ Pricing ▪ Persisting cost inflation and labor scarcity ▪ Efficiency and cost reduction drive ▪ Construction and real estate under ▪ Sup
Slide 18: Save the date: Schindler Technology Day
Save the date: Schindler Technology Day October 20, 2023, Ebikon, Switzerland 18 I © Schindler 2023 I We Elevate I April April 20, 20, 2023 2023 I Investor Relations
Slide 19: Q&A
Q&A © Schindler 2023 19 I © Schindler 2023 I We Elevate I April April 20, 20, 2023 2023 I Investor Relations
Slide 20: Additional charts
Additional charts 20 I © Schindler 2023 I We Elevate I April 20, 2023 I Investor Relations
Slide 21: Quarterly overview
Quarterly overview Key figures In CHF million 2023 2022 Q1 Q4 Q3 Q2 Q1 Order intake 2 889 2 994 2 740 3 063 3 164 Revenue 2 796 3 036 2 965 2 713 2 632 Operating profit (EBIT) 282 249 252 192 211 in % 10.1 8.2 8.5 7.1 8.0 Operating profit (EBIT), adjusted 272 309 272 230 236 in % 9.7 10.2 9.2 8.5 9.
Slide 22: Strategic framework for disciplined execution
Strategic framework for disciplined execution Our purpose Enhancing the quality of life in urban environments by providing the best mobility solutions across buildings Our ambition Our choices Our targets ▪ Be the preferred E&E customer choice ▪ Service: Drive density ▪ Best-in-class customer & empl
Slide 23: Balance sheet
Balance sheet In CHF million 31.03.2023 in % 31.12.2022 in % 31.03.2022 in % Cash and cash equivalents 2 390 19.4 2 153 18.2 2 648 22.2 Other current assets 6 199 50.5 5 956 50.5 5 356 45.0 Total current assets 8 589 69.9 8 109 68.7 8 004 67.2 Non-current assets 3 705 30.1 3 699 31.3 3 910 32.8 Tota
Slide 24: Calendar 2023/2024
Calendar 2023/2024 2023 2024 Full year results analyst and media conference February Ordinary General Meeting Schindler Holding Ltd. March 19 Publication of key figures as of March 31 April Publication of Interim Report as of June 30 July 21 July Publication of key figures as of September 30 October
Schindler Hldg Ag Akt — Q1 2023 Earnings Presentation on 6ix