SAF-Holland SE · XETR:SFQ
SAF-Holland — FY2021 Earnings Presentation
38 slides from SAF-Holland's earnings presentation, Mar 17, 2022
Slide 1: SAF-HOLLAND SE FY 2021 Conference Call Presentation
CONFERENCE CALL PRESENTATION SAF-HOLLAND SE FY 2021 MARCH 17, 2022 IX XX FY 2021 Call Presentation < 1 >
Slide 2: Excellent performance in a challenging year 2021
Excellent performance in a challenging year 2021 KPIs 2021 Sales Capex ratio EUR 1,247m 2.0% Guidance achieved (2020: EUR 959m) (2020: 2.5%) Guidance Guidance Achievement March 2021 July 2021 2021 Adj. EBIT Sales (in EUR m) 1,050 – 1,150 1,100 – 1,200 1,246.6 margin Adjusted EBIT margin around 7.0%
Slide 3: Regionally varying development of trailer and truck markets in 2021
Regionally varying development of trailer and truck markets in 2021 • EMEA Trailer Truck • Strong growth of trailer and truck production based on economic upswing • Higher exposure of SAF-HOLLAND to the European trailer than truck market EMEA +21% +29% • North America North America +28% +19% • Produ
Slide 4: EMEA: Strong OE and aftermarket business
EMEA: Strong OE and aftermarket business Sales (in EUR million) +32.9% • FY 2021 sales adjusted for FX effects: + 33.8% • Strong OE and aftermarket business +27.7% • German and Turkish plants highly utilised during the year and fully loaded in Q4 734,6 552,9 148,3 189,5 • Strong trailer OE and after
Slide 5: Americas: Strong truck OE and aftermarket business
Americas: Strong truck OE and aftermarket business Sales (in EUR million) +20.9% • FY 2021 sales adjusted for FX effects: + 25.0% • FY sales growth driven by strong truck OE and aftermarket business • Trailer OE business showed strong sales performance in the course of the year +24.2% 401,8 332,3 •
Slide 6: APAC: Strong demand in India and Australia
APAC: Strong demand in India and Australia Sales (in EUR million) +48.3% • FY 2021 sales adjusted for FX effects: +47.9% • FY sales growth driven by strong OE business in India and favourable demand growth in Australia +48.8% • China business still subdued 110,2 74,3 20,5 30,5 • Q4 sales driven by s
Slide 7: Financials 2021
Financials 2021 FY 2021 Call Presentation < 7 >
Slide 8: Sales growth driven by high demand both in OE and aftermarket business
Sales growth driven by high demand both in OE and aftermarket business Sales development (by quarter, by region, by customer category) 8,8% in EUR 2020 2021 Change Change thereof thereof million in % organic currency EMEA 32,3% 58,9% Americas Q1 283.4 285.6 2.2 0.8% +5.6% -4.8% APAC Q2 192.8 322.5 1
Slide 9: Margin development impacted by high cost inflation
Margin development impacted by high cost inflation Adjusted Gross Profit (in EUR million and % of sales) Adjusted EBIT (in EUR million and % of sales) Adjusted Net Profit* (in EUR million) 18,6 7,5 17,4 6,1 216,7 178,8 93,1 58,8 34,5 61,3 2020 2021 2020 2021 2020 2021 • Adjusted gross profit increas
Slide 10: Operational adjustments 2021 down y-o-y
Operational adjustments 2021 down y-o-y 2021 2020 in EUR million Reported Adjustments Adjusted Reported Adjustments Adjusted Sales 1,246.6 1,246.6 959.5 959.5 Gross profit 209.1 7.6 216.7 168.8 10.0 178.8 EBIT 72.1 21.0 93.1 31.1 27.7 58.8 EBIT margin 5.8% 7.5% 3.2% 6.1% Earnings before tax 62.7 21.
Slide 11: Significant improvement of net income and EPS
Significant improvement of net income and EPS Adjusted EPS* (in EUR) Reported EPS (in EUR) Dividend per share (in EUR) +80.0% +170.0% 1,35 0,35 0,75 0,81 0,30 0 2020 2021 2020 2021 2020 2021 Net profit* 34.1 61.2 13.8 36.7 (in EUR million) No dividend paid in 2020 due to: Dividend proposal of EUR 0.
Slide 12: Leverage significantly improved and equity ratio up to 37%
Leverage significantly improved and equity ratio up to 37% Net debt (in EUR million) Equity (in EUR million and % of balance sheet total) -171,0 36,6 -165,2 32,6 367,7 363,2 371,1 196,7 198,0 300,5 Debt Cash Net debt Debt Cash Net debt 2020 2021 2020 2021 Dec. 31, 2020 Dec. 31, 2021 • Equity up due
Slide 13: ROCE up despite higher capital employed
ROCE up despite higher capital employed Capex (in EUR million and % of sales) Net Working Capital (in EUR million and % of LTM sales) ROCE (in %) +460 bps 2,5 14,8 2,0 11,9 184,4 24,5 24,7 15,7 114,6 11,1 2020 2021 2020 2021 2020 2021 • Disciplined and focused investments in • Inventories up to secu
Slide 14: Cyclical rebound of net working capital burdened operating cash flow in 2021
Cyclical rebound of net working capital burdened operating cash flow in 2021 Cash flow (in EUR million) -23,7 • Net operating cash flow clearly positive at EUR 39.7m • Net cash flow from investing activities stable y-o-y • Cash conversion rate impacted by substantially increased net working capital
Slide 15: Outlook 2022
Outlook 2022 FY 2021 Call Presentation < 15 >
Slide 16: Regionally varying development of trailer and truck markets in 2022
Regionally varying development of trailer and truck markets in 2022 • EMEA Trailer Trucks • Bullish market on an all-time high level • Back to more normal growth trajectory in 2022 • Expect markets to strongly grow in the years to follow EMEA +3% +4% • North America North America +16% +17% • Expect
Slide 17: Volatility of cost base mainly driven by material prices and freight costs
Volatility of cost base mainly driven by material prices and freight costs Major cost items Trend 2022 Measures to counter cost increases on all levels Steel: • In the US still on a very high level Material • EMEA remain on a high level Supply chain disruptions started to slightly ease, Operational
Slide 18: Guidance 2022 (as of March 17, 2022)
Guidance 2022 (as of March 17, 2022) Sales EUR 1.15bn to EUR 1.3bn Adjusted EBIT margin Significantly below 2021 Capex ratio approx. 2% - 2.5% FY 2021 Call Presentation < 18 >
Slide 19: ESG Focus
ESG Focus FY 2021 Call Presentation < 19 >
Slide 20: High scorings in sustainability ratings underpin ESG efforts
High scorings in sustainability ratings underpin ESG efforts MSCI: AA rating Sustainalytics: Low risk ISS ESG: C rating • AA rating • Low risk • C rating • Rating puts SAF-HOLLAND SE in top 8% of • Rating ranks SAF-HOLLAND SE 9th out of • Rating puts SAF-HOLLAND SE in top 22% of industry with an AA
Slide 21: Our ESG focus on Social and Environment
Our ESG focus on Social and Environment We aim to position ourselves as a globally attractive employer by We are establishing pioneering standards for CO2 emissions and the promoting a tolerant, fair working environment and lifelong learning. circular economy, which we intend to implement globally.
Slide 22: Megatrends and update on strategy
Megatrends and update on strategy FY 2021 Call Presentation < 22 >
Slide 23: External truck and trailer production estimates show continuing growth in the mid-term
External truck and trailer production estimates for SAF-HOLLAND‘s key regions show continuing growth in the mid-term Trailer production (in '000) Truck production (in '000) 2.500 2.500 2.000 2.000 1.500 1.500 1.000 1.000 500 500 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024
Slide 24: Megatrends and industry trends drive need for innovation
Megatrends and industry trends drive need for innovation Megatrends Industry trends Expected customer value • Lower repair and maintenance costs due to Urbanisation Safety fewer accidents and e.g. predictive maintenance • Higher utilisation of vehicles due to extension of operating hours (e.g. fleet
Slide 25: Innovations secure profitable growth in the future
Innovations secure profitable growth in the future 3 global R&D centers in Germany, USA & China > 160 engineers worldwide Double-digit number of priority applications* for many years Awards underpin innovative strength Electric trailer axles Telematic system Smart Axle Gateways TIRE PILOT TrailerMas
Slide 26: Update on Strategy 2025: Margin recovery on track
Update on Strategy 2025: Margin recovery on track Adjusted EBIT (in EUR million and % of sales) Management focus in 2022 Drive portfolio optimisation and growth 8,0 7,5 6,9 Secure innovation and quality leadership 6,2 6,1 Manage COVID-19-related challenges 91,2 89,6 93,1 79,9 58,8 Efficient capital
Slide 27: Contact and additional information
Contact and additional information FY 2021 Call Presentation < 27 >
Slide 28: Financial calendar & IR contact
Financial calendar & IR contact Issuer & contact Additional information SAF-HOLLAND SE ISIN DE000SAFH001 Hauptstrasse 26 WKN SAFH00 63856 Bessenbach Deutsche Börse SFQ Listing Frankfurt Stock Exchange Investor Relations Prime Standard Email: [email protected] Tel: +49 6095 301 – 918 / 617 / 117 Finan
Slide 29: Appendix
Appendix FY 2021 Call Presentation < 29 >
Slide 30: Group P&L 2021: Quality of earnings substantially improved
Group P&L 2021: Quality of earnings substantially improved Total in % Total in % in kEUR 2021 Adjustments 2021 adjusted* of sales 2020 Adjustments 2020 adjusted* of sales Sales 1,246,583 – 1,246,583 100.0 959,519 – 959,519 100.0% Cost of sales -1,037,498 7,653 -1,029,845 -82.6 -790,673 9,985 -780,68
Slide 31: Group: Reconciliation EBIT to adjusted EBIT
Group: Reconciliation EBIT to adjusted EBIT in kEUR 2021 2020 Change absolute Change in % EBIT 72,140 31,102 41,038 131.9 EBIT margin in % 5.8% 3.2% Additional depreciation and amortisation of property, plant and equipment and intangible 9,145 10,184 -1,039 -10.2 assets from PPA Valuation effects fr
Slide 32: EMEA: Reconciliation EBIT to adjusted EBIT
EMEA: Reconciliation EBIT to adjusted EBIT in kEUR 2021 2020 Change absolute Change in % EBIT 62.034 45.720 16,314 35.7 EBIT margin in % 8.4% 8.3% Additional depreciation and amortisation of property, plant and equipment and intangible 4.513 4.637 -124 -2.7 assets from PPA Valuation effects from cal
Slide 33: Americas: Reconciliation EBIT to adjusted EBIT
Americas: Reconciliation EBIT to adjusted EBIT in kEUR 2021 2020 Change absolute Change in % EBIT 15,989 2,470 13,519 547.3 EBIT margin in % 4.0% 0.7% Additional depreciation and amortisation of property, plant and equipment and intangible 2,213 2,352 -139 -5.9 assets from PPA Valuation effects from
Slide 34: APAC: Reconciliation EBIT to adjusted EBIT
APAC: Reconciliation EBIT to adjusted EBIT in kEUR 2021 2020 Change absolute Change in % EBIT -5.883 -17,088 11,205 –65.6 EBIT margin in % -5.3% -23.0% Additional depreciation and amortisation of property, plant and equipment and intangible 2,419 3,195 -776 -24.3 assets from PPA Impairment of tangib
Slide 35: Disciplined and focused investments
Disciplined and focused investments Capex (in % of sales) Capex 2021 by quarter (in % of sales) • Capex at 2.0% of Group sales in 2021 (FY 2021 guidance: around 2.5% of Group sales) • Investment focus: further automation of production processes at the Bessenbach location, capacity expansions in Turk
Slide 36: Adjusted EBITDA margin
Adjusted EBITDA margin Group Group by quarter (in 2021) EMEA EMEA by quarter (in 2021) 13,1 12,2 12,6 12,1 10,6 10,9 10,7 10,5 11,6 10,2 10,3 9,4 2020 2021 Q1 Q2 Q3 Q4 2020 2021 Q1 Q2 Q3 Q4 Americas Americas by quarter (in 2021) APAC APAC by quarter (in 2021) 12,8 9,2 10,0 9,8 8,5 8,8 6,2 6,0 6,5 7,
Slide 37: Current financing structure
CURRENT FINANCING STRUCTURE Maturity profile (in EUR million) 100** Amount Maturity Product EUR m date Loan RMB 9.0 06/2022 20 Promissory note loan old (7 years) 5.0 11/2022 Promissory note loan new (3 years) 141.0 03/2023 Promissory note loan new (3.5 years) 20.0 09/2023 200* Revolving credit facil
Slide 38: 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 SE (“SAF-HOLLAND”) and comprises written materials c