SAF-Holland SE · XETR:SFQ
SAF-Holland — Q2 2024 Earnings Presentation
26 slides from SAF-Holland's earnings presentation, Aug 8, 2024
Slide 1: Conference Call Presentation Q2 2024
CONFERENCE CALL PRESENTATION Q2 2024 stronger together one global partner ALEXANDER GEIS (CEO), FRANK LORENZ-DIETZ (CFO) AUGUST 8, 2024 < 1 >
Slide 2: Highlights and regional performance Q2 2024
Highlights and regional performance Q2 2024 Q2 2024 Call Presentation < 2 >
Slide 3: Acquisition of Assali Stefen – An Italian manufacturer of axle and suspension systems
Acquisition of Assali Stefen – An Italian manufacturer of axle and suspension systems Footprint • Operates a development and production site in Verona, Italy • Well positioned, especially in Italy, North Africa, Scandinavia and New Zealand Products • Develops, produces and sells chassis-related comp
Slide 4: Q2 2024 Highlights
Q2 2024 Highlights M&A Full consolidation of Tecma since April 2nd, 2024 Sales Sales decreased by 8.7% (organically: -10.8%) compared to PY due to weaker OE development demand, partially offset by strong aftermarket business and acquisition-related effects Profitability significantly improved from 9
Slide 5: SAF-HOLLAND demonstrates resilience of its business model
SAF-HOLLAND demonstrates resilience of its business model Sales change yoy AMERICAS: EMEA: APAC: -14.4% -3.6% -6.5% Adj. EBIT NWC ratio* Sales Adjusted EPS Operating FCF margin EUR 507.1 mn EUR 0.69 10.7% 15.8% EUR 56.8 mn (Q2 2023: EUR 555.7 mn) (Q2 2023: EUR 0.74) (31 Dec. 2023: 14.1%) (Q2 2023: E
Slide 6: Softer market environment partially offset by M&A effect
Softer market environment partially offset by M&A effect Group sales (in EUR mn) 2023 -2.3% • Acquisition-related sales contributed EUR 9.9 mn 2024 1,036.1 to Group sales in Q2 (IMS Group and Tecma) 1,012.5 • Continued muted commercial vehicle markets, particularly in the trailer segment, resulted i
Slide 7: Aftermarket develops solidly & benefits from strong OE business in previous years
Aftermarket develops solidly & benefits from strong OE business in previous years Group sales split (by region, by customer category) • EMEA region supported by additional acquisition- 12.5% 12.8% related growth from IMS Group and Tecma • Softer trailer market weighs on Americas exposure EMEA 43.6%
Slide 8: SAF-HOLLAND with double-digit adj. EBIT margin in Q2 2024
SAF-HOLLAND with double-digit adj. EBIT margin in Q2 2024 Group adj. EBIT and margin (in EUR mn and % of sales) 2023 10.2% • Q2 2024 adj. EBIT increased by 6.7% yoy to EUR 9.1% 54.2 mn and resulted in an adj. EBIT margin of 10.7% 2024 102.8 94.2 • Adj. EBIT margin benefited in particular from a favo
Slide 9: EMEA benefits from strong aftermarket and acquisition-related effects
EMEA benefits from strong aftermarket and acquisition-related effects EMEA sales Sales (in EUR mn) -0.7% 2023 • Q2 2024 organic sales growth amounted to -8.1% yoy (H1 2024: 2024 480.9 477.5 -7.7% yoy) -3.6% • Although region outperformed key EMEA trailer market, sales 238.8 244.3 242.0 233.3 230.9 2
Slide 10: Americas effectively manages its cost base despite weak trailer market
Americas effectively manages its cost base despite weak trailer market Americas sales Sales (in EUR mn) -6.2% 2023 • Q2 2024 organic sales growth amounted to -14.7% yoy due to 2024 433,1 406,3 lower customer demand especially in the trailer market -14.4% • Solidly growing aftermarket business partly
Slide 11: APAC with strong profitability despite restrained infrastructure spending in India
APAC with strong profitability despite restrained infrastructure spending in India APAC sales Sales (in EUR mn) 5.4% 2023 • Q2 2024 organic sales growth amounted to -6.0% yoy 2024 122.1 128.7 -6.5% • Solidly growing aftermarket segment and favorable mining sector could not compensate the decline fro
Slide 12: Financials Q2 2024
Financials Q2 2024 Q2 2024 Call Presentation < 12 >
Slide 13: EBIT to adjusted EBIT reconciliation for the Group
EBIT to adjusted EBIT reconciliation for the Group in EUR mn Q2 2024 Q2 2023 H1 2024 H1 2023 EBIT 46.3 33.5 +38.4% 89.7 72.3 +24.1% 1 Slightly higher PPA due to recent acquisitions of IMS Group and EBIT margin in % 9.1 6.0 8.9 7.0 Tecma Additional depreciation & 1 6.5 5.9 11.7 8.2 amortization from
Slide 14: Substantial increase in adj. result for the period in Q2
Substantial increase in adj. result for the period in Q2 (EUR mn and yoy change in %) 38.4% 20.6% 35.4% 36.7% 36.7% -7.0% -7.0% 46.3 -11.9 1 34.4 31.3 -10.2 24.2 24.0 2 -0.2 Tax rate -29.6% EUR 0.53 EUR 0.69 Basic EPS Adj. EPS EBIT Finance EBT Income Result for Minorities Result Adj. result result t
Slide 15: Equity ratio slightly impacted by acquisition of IMS Group and Tecma
Equity ratio slightly impacted by acquisition of IMS Group and Tecma • Compared to 31 December 2023, equity rose by 3.4% despite the 36.6% 36.8% 37.3% dividend payment of EUR 38.6 mn in 34.6% 33.1% 32.2% June 29.5% 28.8% 29.7% 28.7% 27.2% 27.5% 25.7% • Balance sheet total grew by 3.9% compared to 31
Slide 16: Improvement of net working capital in Q2
Improvement of net working capital in Q2 Net working capital (in % of sales) • NWC-ratio increased from 17.4% 14.1% at year-end 2023 to 15.9% 16.5% 15.8%* but showed a solid 15.5% 15.6% 15.8% improvement compared to the 14.8% 15.4% 14.8% end of March 2024 due to a 15.7% strict NWC management 14.5% 1
Slide 17: Strong operational result drives significant improvement in operating free cash flow
Strong operational result drives significant improvement in operating free cash flow in EUR mn Q2 2024 Q2 2023 H1 2024 H1 2023 • EBITDA grew solidly due to favorable mix effect EBITDA 68.7 53.9 132.5 107.4 and strict cost management Change in Net Working Capital +21.5 -3.4 -22.1 -26.0 • Positive cas
Slide 18: Continued strong ROCE level
Continued strong ROCE level Return on capital employed (in %) 22.6% 20.8% • ROCE amounted to 22.6% at the end of June 20.2% 17.1% • Positively impacted by 16.5% 18.3% 15.6% 15.7% higher profitability 14.5% 14.8% 15.2% 12.2% 12.9% Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun EUR mn 2021 2021 2
Slide 19: Due to strong operational result, leverage improves to 1.8x
Due to strong operational result, leverage improves to 1.8x Net debt/EBITDA • Net debt/EBITDA ratio amounted to 1.8x at 2.6 the end of June 2024 2,5 2,4 • Increase in net debt compared to Dec 2023 2,1 partly due to drawing of RCF in connection 1,9 1,8 1,8 1,8 with the acquisitions of IMS Group and 1
Slide 20: Outlook FY 2024 and key takeaways
Outlook FY 2024 and key takeaways Q2 2024 Call Presentation < 20 >
Slide 21: FY 2024 market outlook impacted by softer environment in key markets
FY 2024 market outlook impacted by softer environment in key markets FY 2024e FY 2024e EMEA Trailer Market Truck Market • Due to an uncertain global economic environment, lower registration numbers in recent months of 2024, still high interest rates as well as EMEA ~ -20% ~ -12% taking into account
Slide 22: 2024 Outlook - Guidance for adj. EBIT margin raised in June
2024 Outlook - Guidance for adj. EBIT margin raised in June Group Group FY 2023 FY 2024 Results* Outlook as of June 2024 Sales EUR 2,106.2 mn Around EUR 2,000 mn Around 10% Adj. EBIT margin 9.6% (previously: 9.0 to 9.5%) Capex ratio** 2.9% Up to 3% * Incl. Haldex contribution, consolidated as of Feb
Slide 23: Key takeaways
Key takeaways 1 Despite weaker sales due to lower demand in the OE segment, aftermarket business remains solid Strong margin generation (Q2 2024: 10.7%) in weaker market environment due to favorable mix 2 effects and strict cost management Raising the full-year adj. EBIT margin outlook to around 10%
Slide 24: Contact and additional information
Contact and additional information Q2 2024 Call Presentation < 24 >
Slide 25: 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 August 8, 2024 Publication of Half-Year Financial Report 2024 Dana Unger August 21, 2024 Montega HIT 2024, Hamburg Vice President Investor
Slide 26: 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