SAF-Holland SE · XETR:SFQ

SAF-Holland — Capital Markets Meet & Greet (September 2018)

23 slides from SAF-Holland's conference presentation, Sep 20, 2018

  1. Slide 1: Smart Steel: Capital Markets Meet & Greet

    SMART STEEL Capital Markets Meet & Greet Business Update and Market Trends Detlef Borghardt, CEO Dr. Matthias Heiden, CFO September 20, 2018 1

  2. Slide 2: Agenda

    Agenda  Business model and Strategy 2020 revisited  Perfectly positioned in oligopolistic markets  Business update by region  The truck & trailer markets – What‘s next?  Smart Steel innovations driving the Company 2020 plus 2

  3. Slide 3: SAF-Holland Group Update: Zooming in on trailers and the Aftermarket

    SAF-Holland Group Update: Zooming in on trailers and the Aftermarket Total sales by region1 Europe‘s largest listed commercial vehicles supplier with leading position worldwide 13%  41 subsidiaries featuring 22 manufacturing sites on six 51% continents; 4,400 employees Revenue by  Trailer OE busin

  4. Slide 4: Pronounced success factors create a strong long-term business model

    Pronounced success factors create a strong long-term business model Balanced structural and regional set-up with varying market trends and Worldwide presence replacement cycles Unique selling model featuring direct access to broad end customer base Unique direct sales model featuring fleet customer

  5. Slide 5: Strategy 2020: Megatrends driving SAF-HOLLAND's business

    Strategy 2020: Megatrends driving SAF-HOLLAND’s business development are in full effect Mega trends Changing demographics Growing middle Expanding Strategy 2020 class road network until 2030  Significantly growing  BRIC: Middle class  Global road world population growing by 150% to network: (+1.1

  6. Slide 6: Strategy 2020: Major beneficiary of soaring Amazon E-conomy

    Strategy 2020: SAF-HOLLAND major beneficiary of soaring “Amazon E-conomy” driving demand for new trucks and trailers Persistent growth of online shopping and “E-conomy” infrastructure consistently pushes demand for new trucks and trailers long-term. Rising number of logistic centers and hubs has tra

  7. Slide 7: All regions are delivering on Strategy 2020

    All regions are delivering on Strategy 2020 EMEA Americas APAC/China Sales in € mn and adj. EBIT margin in % Sales in € mn and adj. EBIT margin in % Sales in € mn and adj. EBIT margin in % 800 20 600 20 200 20 611.8 500 449.4 568.8 429.4 600 540.0 15 402.3 15 15 11.1 400 10.3 9.7 97.7 400 8.3 10 300

  8. Slide 8: Strategy 2020 revisited: Where do we stand?

    Strategy 2020 revisited: Where do we stand? 2014 Strategy 2020 2017 2018 guidance GAP 2020 organic € 959.7 increase of Organic Organic: € 1,250 mn € 1,138.8 mn almost there sales growth mn 5 to 7%1 ~ € 1,200 mn e2 + contribution ~ € 60 mn + M&A: Coops, JVs, from acquisitions € 9.2 mn takeovers 2019

  9. Slide 9: Market-leading positions in North America and EMEA in an oligopolistic set-up

    SAF-HOLLAND market-leading positions in North America and EMEA in an oligopolistic set-up EMEA North America  Market-leading Trailer Fifth Trailer axles + Fifth position in NA in axles Wheels suspensions Wheels fifth wheels  Already Nr. 2 position in trailer SAF- SAF- 1/2 Jost 1 Hendrickson axles

  10. Slide 10: Among the market leaders in China and India

    Among the market leaders in China and India INDIA  Acquisition of Indian China (Premium segment) India market leader in trailer axle systems Trailer axles Trailer axles York  Nr. 1 position in trailer axles in the 1 BPW 1 SAF-HOLLAND / YORK fastest growing TA market worldwide CHINA 2 SAF-HOLLAND 2

  11. Slide 11: Post merger integration running well: York and V.ORLANDI

    Post merger integration running well: York and V.ORLANDI  First-time consolidation as of May 1, 2018  Instantly Nr. 1 in trailer axles in India  Strong brand  Strong position in adjacent Asian markets  Realization of synergies in sourcing and manufacturing plus intensive expansion plan for the

  12. Slide 12: EMEA: Solid organic OE and aftermarket sales growth

    EMEA: Solid organic OE and aftermarket sales growth provides for operational leverage Sales in € mn In 15 years axle population in EMEA has more than tripled 250 4,000,000 200 177.9 3,000,000 159.6 150 2,000,000 100 1,000,000 50 0 0 Q2 2017 Q2 2018 2003 2005 2007 2009 2011 2013 2015 2017  Q2 2018:

  13. Slide 13: Update US: Operating improvements burdened by soaring steel prices

    Update US: Successive operating improvements in NA burdened by soaring steel price level Washington Maine Add-on operating Adj. EBIT Montana North Vermont New costs in € mn margin in % Dakota Hampshire Oregon South Minnesota Wisconsin Michigan Rhode 6.3 10% Idaho Dakota Island Wyoming PennsylvaniaNe

  14. Slide 14: Update China: New legislation prompts structural sales growth

    Update China: New legislation prompts structural sales growth through 2019 and 2020  New regulatory load limits for CVs and manda- Sales in € mn tory first fit of disk breaks and air suspensions for 50 44.5 hazardous goods transporters as of 2020 trigger 40 expansion of the premium segment in China

  15. Slide 15: A long-term growth industry driven by mega trends

    A long-term growth industry driven by mega trends: Continued increase of global trailer axle production until 2025 Global trailer axle production in thsd. 5,000 4,549 4,349 40 4,153 40 4,000 3,782 3,964 39 3,610 38 3,449 37 3,302 36 2,063 3,167 35 34 1,946 1,833 3,000 33 1,725 1,623 1,528 1,361 1,44

  16. Slide 16: Trailer market trend North America

    Trailer market trend North America: Sustained strong order intake, backlog extending up to six months Trailer net orders 50000 40000 30000 20000 10000 0 Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. 2016 17649 21360 13789 15840 13302 11931 9482 14031 11746 20158 35790 34060 2017 32818

  17. Slide 17: Truck market trend North America: Order boom versus strained supply chain

    Truck market trend North America: Order boom versus strained supply chain Class-8 net orders 50000 40000 30000 20000 10000 0 Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. 2016 18062 17650 16147 13500 14095 13000 10263 14078 13753 13775 19300 21200 2017 21863 22886 22765 23538 16419 17

  18. Slide 18: Heavy truck market in the EU

    Heavy truck market in the EU: Solid trend continues in the face of moderate economic growth New registrations of heavy commercial vehicles (HCV) >16 tons 40000 30000 20000 10000 0 Jan Feb March April May June July Aug Sep Oct Nov Dec 2016 21989 21052 28250 26756 23402 26571 19453 18387 27305 26324 2

  19. Slide 19: Mildly supportive market environment in 2019

    Mildly supportive market environment in 2019 EMEA North America Truck Production1 Trailer Production2 Truck Shipments3 Trailer Production4 2018 +4% +1% 2018 +23% +9% 2019 +2% -5% 2019 +9% -3% NA Class 8 truck shipments forecast to continue 2018 upturn with +9% growth in 2019. NA trailer production s

  20. Slide 20: Content per vehicle opportunity from trailer connectivity

    Content per vehicle opportunity with significant potential from trailer connectivity and data interpretation excpected Trailer content per vehicle European trailer components1 in % OEM market: ■ Chassis ■ Structural elements in € bn - Axles - Body parts 2.0 ~ 13 % - Brakes - Landing gears 1.5 - Susp

  21. Slide 21: Acquisition of Axscend provides complementary data-based business model

    Acquisition of Axscend provides for complementary data-based business model Start-up innovation power … … meets market leading position  TrailerMaster turns trailers into „smarties“  Scalable at SAF-HOLLAND  Connectivity and data interpretation Group level  Succesfully established license-  Lic

  22. Slide 22: Disclaimer

    Disclaimer Not for general release, publication or distribution in the United States, Australia, Canada or Japan. By attending this presentation you agree to be bound by the following limitations: This presentation has been prepared by SAF-HOLLAND S.A. (“SAF-HOLLAND”) and comprises written materials

  23. Slide 23: Contact

    Contact SAF-HOLLAND GmbH Hauptstraße 26 63856 Bessenbach Germany www.safholland.com Stephan Haas Vice President Investor Relations / Corporate Communications stephan.haas@safholland.de Phone: +49 - 6095 301-617 Ute Schmitt-Klauer Senior Manager Investor Relations / Corporate Communications ute.schmi

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