SAF-Holland SE · XETR:SFQ
SAF-Holland — FY2023 Earnings Presentation
27 slides from SAF-Holland's earnings presentation, Mar 14, 2024
Slide 1: Conference Call Presentation FY 2023
CONFERENCE CALL PRESENTATION FY 2023 stronger together one global partner ALEXANDER GEIS (CEO), FRANK LORENZ-DIETZ (CFO) MARCH 14, 2024 < 1 >
Slide 2: Recent strategic highlights of SAF-HOLLAND
Recent strategic highlights of SAF-HOLLAND 1 2 Acquisition of exclusive distribution partner IMS Additional production capacity in Piedras Negras, GROUP B.V. and special axle systems and Mexico for fifth wheels in ramp-up phase suspensions manufacturer Tecma Srl Piedras Negras Monterrey FY 2023 Call
Slide 3: Highlights and regional performance FY and Q4 2023
Highlights and regional performance FY and Q4 2023 FY 2023 Call Presentation < 3 >
Slide 4: FY 2023 Highlights
FY 2023 Highlights Sales Significant sales growth of 34.6% to EUR 2,106.2 mn (organic sales +11.4%) development Adj. EBIT margin Strong adj. EBIT margin of 9.6% (previous year: 8.0%) Cash flow & Solid cash generation with operating free cash flow of EUR 142.7 mn and reduction in leverage leverage fr
Slide 5: Record levels for sales, profitability and operating free cash flow
SAF-HOLLAND achieves record levels for sales, profitability and operating free cash flow Sales change yoy EMEA: AMERICAS: APAC: +16.1% +50.8% +69.3% Adj. EBIT NWC ratio Sales Adjusted EPS Operating FCF Margin EUR 2,106.2 mn EUR 2.61 9.6% 14.1% EUR 142.7 mn (FY 2022: EUR 1,565.1 mn) (FY 2022: EUR 1.8
Slide 6: Significant growth from Haldex consolidation paired with solid underlying demand
Significant growth from Haldex consolidation paired with solid underlying demand Group sales (in EUR mn) 34.6% • Consolidation of Haldex and solid demand in all 2,106.2 three regions positively supported FY growth development 1,565.1 • Both, higher volumes and prior price increases were beneficial t
Slide 7: Change in regional mix and higher share of aftermarket business
Change in regional mix and higher share of aftermarket business strengthens resilience Group sales split (by region, by customer category) • Change in sales distribution by region compared to 10.2% 12.8% FY 2022 mainly due to Haldex consolidation as well as organic growth in all three regions EMEA 5
Slide 8: Adj. EBIT benefited from good operating performance and cost synergies
Adj. EBIT benefited from a good operating performance and cost synergies Group adj. EBIT and margin (in EUR mn and % of sales) 250 9.6% 10 • Q4 2023 adj. EBIT was EUR 49.3 mn, up by 52.5%, 8.0% 202.1 equal to a margin of 9.5% 200 8 150 6 • In FY 2023, adj. EBIT improved strongly by 62.2% to 124.6 EU
Slide 9: EMEA with significant sales and profitability improvement
EMEA with significant sales and profitability improvement despite a weaker trailer market EMEA sales (in EUR mn) 22.6% 16.1% Sales 238.8 242.0 230.9 234.6 946.3 208.5 215.0 200.5 815.3 • Q4 organic sales growth amounted to 8.5% yoy. Slight 191.4 sequential growth Q4 vs. Q3 2023 based on strong truck
Slide 10: Americas with strong sales increase and improved adjusted EBIT margin
Americas with strong sales increase and further improved adjusted EBIT margin Americas sales (in EUR mn) 50.8% 40.9% Sales 244.0 244.1 890.3 213.1 • Q4 organic sales growth amounted to 3.3%; sequential decline 189.1 vs. Q3 due to seasonal effects and an ongoing market 151.1 161.3 151.2 590.6 127.0 n
Slide 11: Strong underlying demand drives organic sales increase in APAC
Strong underlying demand drive organic sales increase and margin improvement in APAC APAC sales (in EUR mn) 69.3% 48.3% Sales 77.9 269.5 69.6 69.5 • Q4 organic sales growth amounted to 37.5%; sequential sales 52.5 decline vs. Q3 particularly driven by seasonally weaker sales at 46.9 159.2 year-end a
Slide 12: Financials FY and Q4 2023
Financials FY and Q4 2023 FY 2023 Call Presentation < 12 >
Slide 13: EBIT to adjusted EBIT reconciliation for the Group
EBIT to adjusted EBIT reconciliation for the Group in EUR mn FY 2023 FY 2022 Q4 2023 Q4 2022 EBIT 163.8 101.5 +61.4% 38.9 25.8 +50.7% 1 Includes PPA from prior acquisitions as well as Haldex EBIT margin in % 7.8 6.5 7.5 6.6 2 Amount mainly driven by around Additional depreciation EUR 4 mn related to
Slide 14: Basic and adjusted EPS with significant growth
Basic and adjusted EPS with significant growth (EUR mn and yoy change in %) 61.4% 37.5% 31.5% 30.9% 43.6% 43.4% 163.8 -42.1 1 121.7 118,5 -41.2 2 80.5 79.9 -0.6 Tax rate -33.8% EUR 1.76 EUR 2.61 Basic EPS Adj. EPS EBIT Finance EBT Income Result for Minorities Result Adj. result result taxes the peri
Slide 15: Dividend proposal to AGM reflects an increase of 41.7% to EUR 0.85
Dividend proposal to AGM reflects an increase of 41.7% to EUR 0.85 Dividend per share (in EUR) • Management Board and Supervisory Board propose a dividend of EUR 0.85 per share to the Annual General Meeting on June 11, 2024 0.85* • Dividend proposal in line with long-term dividend policy of distribu
Slide 16: Equity ratio slightly decreased despite growth in equity
Equity ratio slightly decreased compared to prior year levels despite growth in equity • Equity rose by +7.8% yoy, positively driven by a good result for the period 36.6% 36.8% 37.3% of EUR 80.5 mn which was partly 34.6% 32.6% 32.6% 33.1% 32.2% compensated by the dividend 29.5% 28.8% payment of EUR
Slide 17: Net working capital ratio exceeds targeted level of 15-16%
Net working capital ratio exceeds targeted level of 15-16% Net working capital (in % of sales) 17.4% • NWC-ratio reached a level of 14.1% of sales, showing a continued improvement since 15.7% 15.9% 15.6% the Haldex acquisition due to 15.5% 15.4% strict NWC-management 14.8% 14.8% 14.4% 14.5% 14.1% •
Slide 18: Very solid cash generation driven by strong operating performance
Very solid cash generation driven by strong operating performance paired with ongoing strict NWC management Net cash flow from operating activities (EUR mn) • During FY 2023, the growth in operating cash flow was mainly due to higher earnings before 202.7 84.4 79.9 taxes (+EUR 33.2 mn) as well as am
Slide 19: Very strong ROCE of more than 20%
Very strong ROCE of more than 20% shows successful return on investments Return on capital employed (in %) 20.8% • Strong shareholder value creation with ROCE 18.3% 17.1% constantly above WACC* 16.5% 15.6% 15.7% 15.2% 14.5% 14.8% • At year-end 2023, ROCE 12.9% amounted to 20.8%, 12.2% WACC 12.2% rep
Slide 20: FY 2024 leverage target of ≤ 2.0x already achieved
FY 2024 leverage target of ≤ 2.0x already achieved Net debt/EBITDA • Net debt/EBITDA ratio amounted to 1.8x at 2.6 the end of Dec 2023, significantly down from 2.5 2.4 2.4 2.6x year-end 2022 2.2 2.1 • Very strong operating performance and cash 1.8 1.8 generation supported deleveraging 1.7 1.6 1.6 1.
Slide 21: Outlook FY 2024 and key takeaways
Outlook FY 2024 and key takeaways FY 2023 Call Presentation < 21 >
Slide 22: FY 2024 market outlook – Normalization expected for EMEA and Americas
FY 2024 market outlook – Normalization expected for EMEA and Americas FY 2024e FY 2024e EMEA Trailer Market Truck Market • Based on a difficult macroeconomic environment as well as on SAF- HOLLAND’s current order situation, the European trailer market is EMEA ~ -10% ~ -15% expected to see a further
Slide 23: Outlook for 2024 represents robust profitability despite slightly lower sales
Outlook for 2024 represents robust profitability despite slightly lower sales Group Group Sales FY 2023 FY 2024 • Targeted market share gains expected to partially compensate for declining market Results* Outlook demand • Aftermarket business should show a stable to slightly positive development bas
Slide 24: Key takeaways
Key takeaways 1 Change in regional mix and increased share of >30% aftermarket business strengthens resilience Increased profitability in 2023 paired with strict NWC-management led to strong operating free 2 cash flow and deleveraging to 1.8x Net debt/EBITDA, achieving 2024 target one year in advanc
Slide 25: Contact and additional information
Contact and additional information FY 2023 Call Presentation < 25 >
Slide 26: Investor relations contact & financial calendar
Investor relations contact & financial calendar Issuer & contact Financial calendar and road show activities SAF-HOLLAND SE Hauptstrasse 26 63856 Bessenbach April 03, 2024 ODDO BHF Roadshow, Frankfurt Dana Unger Publication of the Quarterly May 08, 2024 Vice President Investor Relations, Corpora
Slide 27: Disclaimer
Disclaimer This presentation has been prepared by SAF-HOLLAND SE (“SAF-HOLLAND”) and comprises written materials concerning SAF-HOLLAND. It is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. It contains summary inform