SAF-Holland SE · XETR:SFQ
SAF-Holland — H1 2022 Earnings Presentation
32 slides from SAF-Holland's earnings presentation, Aug 11, 2022
Slide 1: Conference Call Presentation SAF-HOLLAND SE H1 2022
CONFERENCE CALL PRESENTATION SAF-HOLLAND SE H1 2022 AUGUST 11, 2022 IX XX H1 2022 Call Presentation < 1 >
Slide 2: Facts & figures H1 2022
Facts & figures H1 2022 Sales EUR 773.3m (H1 2021: EUR 608.1m) Adj. EBIT margin 7.2% (H1 2021: 7.7%) Adjusted EBIT EUR 55.6m (H1 2021: EUR 47.0m) Capex ratio 1.4% (H1 2021: 1.4%) Capex EUR 10.6m (H1 2021: EUR 8.4m) Net working capital ratio 17.4% (December 31, 2021: 14.8%) Net working capital EUR 24
Slide 3: Group 2022 – Sales
Group 2022 – Sales Sales (in EUR million) + 27.2% • H1 2022 sales adjusted for FX and M&A effects: +21.3% • Overproportional sales growth in the Americas and APAC regions • Aftermarket business remains strong 773.3 608.1 YTD 2021 Sales by Quarter 403.5 2022 (in EUR million) 369.7 322.5 316.6 321.8 •
Slide 4: Top line development
Top line development Sales development (by region, by customer category) 8.6% 9.3% EMEA EMEA 54.7% 32.0% H1 2021 59.4% Americas 36.0% H1 2022 Americas APAC APAC 27.4% 27.2% Trailer OE Trailer OE H1 2021 H1 2022 Truck OE 58.9% Truck OE 60.2% Aftermarket Aftermarket 12.6% 13.6% H1 2022 Call Presentati
Slide 5: Group 2022 – Adj. Gross Profit Margin
Group 2022 – Adj. Gross Profit Margin Adj. Gross Profit 18.6% (in EUR million and % of sales) 16.6% • H1 adjusted cost of sales rose disproportionately by 30.4% to EUR 645.2 million (previous year: EUR 494.9 million) due to the increase in demand, but in particular due to high steel prices and high
Slide 6: Group 2022 – Adj. EBIT
Group 2022 – Adj. EBIT Adj. EBIT (in EUR million and % of sales) • The significantly lower administration and research and development expense ratios largely compensated 7.7% 7.2% for the higher cost of sales ratio • Adjusted EBIT increased by 18.4% to EUR 55.6 million (previous year: EUR 50.0 milli
Slide 7: EMEA 2022 – Sales
EMEA 2022 – Sales Sales +17.3% (in EUR million) • H1 2022 sales adjusted for FX and M&A effects: +15.7% • Overproportional sales growth in the trailer OE business – despite Russia-Ukraine conflict 423.5 • Solid performance in the aftermarket business 361.0 • Successful launch of the recuperation axl
Slide 8: EMEA 2022 – Adj. EBIT
EMEA 2022 – Adj. EBIT Adj. EBIT (in EUR million and % of sales) 9.8% • High steel prices and high freight and energy costs, 5.5% which are passed on with a time lag, have weighed very heavily on the cost of sales ratio • The lower administration and research and development expense ratios could only
Slide 9: Americas 2022 – Sales
Americas 2022 – Sales Sales (in EUR million) +42.8% • H1 2022 sales adjusted for FX effects: +29.3% • Strongly overproportional sales growth in the trailer OE business with market share gains especially in the 278.1 Air Disc Brake (ADB) segment 194.7 • Solid performance in the aftermarket business •
Slide 10: Americas 2022 – Adj. EBIT
Americas 2022 – Adj. EBIT Adj. EBIT (in EUR million and % of sales) 8.9% 5.5% • The cost of sales ratio improved significantly due to lower material and personnel expense ratios and sales price adjustments • In addition, the lower share of administrative and 24.8 research and development costs had a
Slide 11: APAC 2022 – Sales
APAC 2022 – Sales Sales (in EUR million) +36.9% • H1 2022 sales adjusted for FX effects: +30.7% • Strong sales growth in the trailer OE business driven by India and Australia 71.8 52.4 YTD 2021 Sales by Quarter 2022 (in EUR million) 37.5 34.2 • Q2 2022 sales adjusted for FX effects: +39.3% 30.5 27.1
Slide 12: APAC 2022 – Adj. EBIT
APAC 2022 – Adj. EBIT Adj. EBIT (in EUR million and % of sales) 10.2% 10 • Compared to the strong sales increase, the increase in 8 cost of sales in H1 2020 was clearly disproportionately 6 low • The significantly lower selling and administrative 7.3 4 expense ratio also had a margin-enhancing effec
Slide 13: Financials H1 2022
Financials H1 2022 H1 2022 Call Presentation < 13 >
Slide 14: Group P&L adjusted
Group P&L adjusted H1 2022 H1 2021 Change Change Q2 2022 Q2 2021 Change Change in EUR thousands adjusted* adjusted* abs. in % adjusted* adjusted* abs. in % Sales 773,253 608,124 165,129 27.2% 403,546 322,504 81,042 25.1% Cost of sales -645,243 -494,898 -150,345 30.4% -334,050 -265,263 -68,787 25.9%
Slide 15: Equity ratio
Equity ratio • Compared to 31 December 2021, equity has improved by 40.0% EUR 60.0 million respectively 16.2% to EUR 431.1 million 39.0% 38.0% 37.3% • Equity was increased in particular by the profit for the 36.6% 36.8% period of EUR 31.3 million and currency differences from 37.0% 36.0% the transla
Slide 16: Net Debt/EBITDA
NET DEBT/EBITDA • Net debt in Q2 2022 mainly influenced by acquisition of 3.00 shares in Haldex AB and payment of dividend Net Debt/EBITDA* target: < 2 2.50 2.40 • Unadjusted EBITDA (LTM) improved by 15.1% to EUR 131.6 2.25 million in Q2 2022 compared to prior-year quarter 2.00 1.75 1.81 • Strong gr
Slide 17: Inventories
Inventories Inventories (in EUR MN of sales) and DIO (in days) Trade payables (in EUR MN of sales) and DPO (in days) 250 237.0 200 179.3 176.2 211.9 163.4 160.6 195.3 194.0 147.4 200 176.0 145.8 155.8 150 150 126.4 107.2 100 67 66 60 58 100 71 71 73 68 72 53 67 49 51 58 50 50 0 0 Q4 2020 Q1 2021 Q2
Slide 18: Net working capital
Net working capital Net working capital (in % of sales) 20% • Further increase in net working capital ratio in Q2 2022 by 1.7PP 18% 17.4% • Trade receivables increased due to higher 15.7% sales with stable DSO 16% 15.5% 14.4% 14.8% 14.8% • Slight decrease in DPO burdens net working capital 14% • Fur
Slide 19: Cash Flows
Cash Flows Net cash flow from operating activities (EUR million) 24.0 2021 2022 • Operating cash flow in Q2 2022 at EUR 24.0 18.4 million (Q2 2021: EUR 9.3 million) mainly due 18.8 to higher earnings 15.0 9.3 5.7 6.3 YTD Q1 Q2 Q3 Q4 -5.2 Free cash flow (EUR million) 2021 2022 • Investments in proper
Slide 20: Outlook 2022
Outlook 2022 H1 2022 Call Presentation < 20 >
Slide 21: Update on development of trailer and truck production for full year 2022
Update on development of trailer and truck production for full year 2022 • EMEA • Weaker trailer production in Eastern Europe weighs on the overall European market Trailer Trucks • Truck business still impacted by semiconductor shortages and supply chain disruptions EMEA -7% -12% • North America • T
Slide 22: Outlook 2022
Outlook 2022 Comments • Encouraging strong demand and revenue dynamics March 17, 2022 May 5, 2022 July 28, 2022 in all 3 regions in Q2 2022 • Expect a gradual recovery of margin profile in the EUR 1.15bn to EUR 1.2bn to EUR 1.4 bn to EMEA region over the rest of the year Sales EUR 1.3bn EUR 1.35bn E
Slide 23: Contact and additional information
Contact and additional information H1 2022 Call Presentation < 23 >
Slide 24: Financial calendar & IR contact
Financial calendar & IR contact Issuer & contact Additional information SAF-HOLLAND SE ISIN DE000SAFH001 Hauptstrasse 26 WKN SAFH00 63856 Bessenbach Listing Frankfurt Stock Exchange Prime Standard Michael Schickling Tel: +49 6095 301 – 617 Alexander Pöschl Tel: +49 6095 301 – 117 Email: ir@safhollan
Slide 25: Appendix
Appendix H1 2022 Call Presentation < 25 >
Slide 26: Group P&L unadjusted / adjusted
Group P&L unadjusted / adjusted Total H1 2022 in % Total H1 2021 in % in EUR thousands H1 2022 Adjustments adjusted* of sales H1 2021 Adjustments adjusted* of sales Sales 773,253 – 773,253 100.0% 608,124 – 608,124 100.0% Cost of sales -646,509 1,266 -645,243 -83.4% -496,103 1,205 -494,898 -81.4% Gro
Slide 27: Group: Reconciliation EBIT to adjusted EBIT
Group: Reconciliation EBIT to adjusted EBIT in EUR thousands H1 2022 H1 2021 Change absolute Change in % EBIT 48,719 41,262 7,457 18.1% EBIT margin in % 6.3% 6.8% Additional depreciation and amortisation of property, plant and equipment and intangible 4,640 4,620 20 0.4% assets from PPA Valuation ef
Slide 28: EMEA: Reconciliation EBIT to adjusted EBIT
EMEA: Reconciliation EBIT to adjusted EBIT in EUR thousands H1 2022 H1 2021 Change absolute Change in % EBIT 20,535 32,815 -12,280 -37.4% EBIT margin in % 4.8% 9.1% Additional depreciation and amortisation of property, plant and equipment and intangible 2,214 2,332 -118 -5.1% assets from PPA Restruc
Slide 29: Americas: Reconciliation EBIT to adjusted EBIT
Americas: Reconciliation EBIT to adjusted EBIT in EUR thousands H1 2022 H1 2021 Change absolute Change in % EBIT 22,272 9,335 12,937 138.6% EBIT margin in % 8.0% 4.8% Additional depreciation and amortisation of property, plant and equipment and intangible 1,134 1,086 48 4.4% assets from PPA Valuatio
Slide 30: APAC: Reconciliation EBIT to adjusted EBIT
APAC: Reconciliation EBIT to adjusted EBIT in EUR thousands H1 2022 H1 2021 Change absolute Change in % EBIT 5,912 -888 6,800 EBIT margin in % 8.2% -1.7% Additional depreciation and amortisation of property, plant and equipment and intangible 1,292 1,202 90 7.5% assets from PPA Restructuring and tra
Slide 31: Adjusted EBITDA margin
Adjusted EBITDA margin Group EMEA 10.8% 12.4% 9.5% 7.7% H1 2021 H1 2022 H1 2021 H1 2022 Americas APAC 11.6% 12.4% 9.1% 6.1% H1 2021 H1 2022 H1 2021 H1 2022 H1 2022 Call Presentation < 31 >
Slide 32: 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