SAF-Holland SE · XETR:SFQ
SAF-Holland — Q1 2021 Earnings Presentation
28 slides from SAF-Holland's earnings presentation, May 12, 2021
Slide 1: Financial Results Q1 2021
FINANCIAL RESULTS Q1 2021 ALEXANDER GEIS, CEO INKA KOLJONEN, CFO MAY 12, 2021 Financial Results Q1 2021 < 1 >
Slide 2: Agenda
AGENDA 1 HIGHLIGHTS Q1 2021 Alexander Geis 2 FINANCIAL PERFORMANCE Inka Koljonen 3 OUTLOOK Alexander Geis 4 APPENDIX Financial Results Q1 2021 < 2 >
Slide 3: Highlights Q1 2021: Strong Market Recovery
HIGHLIGHTS Q1 2021: STRONG MARKET RECOVERY • Sales: strong start to the year in the EMEA and APAC Sales Capex ratio regions driven by dynamic market recovery and further gains in market share in Europe and India € 286 MN 1.9% • Solid aftermarket performance • Adj. EBIT margin: structural cost-cuttin
Slide 4: Group: Structural Cost-Cutting Measures Paying Off
GROUP: STRUCTURAL COST-CUTTING MEASURES PAYING OFF MAIN DRIVERS SALES (€ MN) SALES BY QUARTER (€ MN) 2020 • Sales slightly above previous years’ level, driven by + 0.8 % 2021 the APAC region (+28.7 per cent) and EMEA region (+7.1 per cent) 283 286 283 286 232 251 • Sales growth adjusted for FX effec
Slide 5: EMEA: Adj. EBIT Margin at a Constant High Level
EMEA: ADJ. EBIT MARGIN AT A CONSTANT HIGH LEVEL MAIN DRIVERS SALES (€ MN) SALES BY QUARTER (€ MN) 2020 • Due to excellent market position and strong order 2021 situation sales increased by 7.1 per cent to € 168 mn + 7.1 % 157 168 157 168 111 137 148 • Sales growth adjusted for FX effects: +9.4 per c
Slide 6: Americas: Adjusted EBIT Margin Strongly Improved
AMERICAS: ADJUSTED EBIT MARGIN STRONGLY IMPROVED MAIN DRIVERS SALES (€ MN) SALES BY QUARTER (€ MN) 2020 • Sales decline of -14.2 per cent in the Americas region - 14.2 % 2021 due to clean-up of loss-making business and winter 105 storms in Texas; Canada, Mexico and Brazil 105 90 90 performed very we
Slide 7: APAC: Break Even Achieved
APAC: BREAK EVEN ACHIEVED MAIN DRIVERS SALES (€ MN) SALES BY QUARTER (€ MN) 2020 • Sales increased by 28.7 per cent especially driven by + 28.7 % 2021 strong OE business in India and Australia 27 27 21 21 20 20 • Sales growth adjusted for FX effects: +32.6 per cent 13 • Volume increase and cost decr
Slide 8: Investments: Disciplined Investment Policy Continued
INVESTMENTS: DISCIPLINED INVESTMENT POLICY CONTINUED • Capex ratio of 1.9 per cent not representative for the INVESTMENTS (€ MN) INVESTMENTS (AS % OF SALES)* full year 2020 2021 3,3% • Many investment projects are only at the beginning; 10 3,0% cash outflow will follow in the subsequent quarters 2,6
Slide 9: Net Working Capital: Cyclical Increase to Safeguard Delivery Performance
NET WORKING CAPITAL: CYCLICAL INCREASE TO SAFEGUARD DELIVERY PERFORMANCE • Due to very high demand combined with severe tightness NET WORKING CAPITAL (€ MN) NET WORKING CAPITAL (IN % OF SALES)* in supply chain, conscious investment in NWC was necessary in Q1 200 2020 2021 16,5% 16,0% • Material avai
Slide 10: Cash Conversion Rate: Net Working Capital Key Driver
CASH CONVERSION RATE: NET WORKING CAPITAL KEY DRIVER in EUR thousands Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 EBITDA 25,876 6,551 21,059 28,606 30,827 Change in NWC 8,018 -20,209 29,824 30,848 -23,969 Other Cash and Non-Cash Items 2,980 3,728 6,191 1,635 2,275 Operating cash flow * 36,874 -9,930 57,
Slide 11: Net Debt/EBITDA: Further Deleveraging Expected
NET DEBT/EBITDA*: FURTHER DELEVERAGING EXPECTED • Q1 2021 shows further improvement driven by 5,00 slightly lower Net Debt and substantially better Net Debt/EBITDA* target range 2-3x EBITDA (LTM) 4,50 4,42 4,00 • Further sequential deleveraging expected in the 3,68 upcoming quarters driven by better
Slide 12: 2. Outlook
2. Outlook Financial Results Q1 2021 < 12 >
Slide 13: Truck and Trailer Production 2021: Strong Upswing
TRUCK AND TRAILER PRODUCTION 2021: STRONG UPSWING NORTH SOUTH EUROPE CHINA INDIA AMERICA AMERICA* Truck Trailer Truck Trailer Truck Trailer Truck Trailer Truck Trailer New: +22% +20% +42% +42% +30% +16% -5% to -10% 0% to +5% +114% +182% -15% to Old: +15% +16% +41% +32% +30% +6% -20% -5% to -10% +30%
Slide 14: Guidance 2021 Unchanged
GUIDANCE 2021* UNCHANGED FY 2020 FY 2021 € 1,050 mn to Sales € 959.5 mn € 1,150 mn Adj. EBIT margin 6.1 per cent Around 7 per cent Around 2.5 per cent CAPEX 2.5 per cent of sales of sales • The EBIT guidance for FY 2021 is based on the assumption that in the remainder of the year there will be no un
Slide 15: Key Takeaways
KEY TAKEAWAYS 1. Benefiting from the upswing in Europe, Brazil and India based on leading market positions; US trailer business to follow shortly 2. Structural cost-cutting measures bearing fruit 3. Disciplined approach to manage accelerating customer demand and working capital investments in recove
Slide 16: Financial Calendar & IR Contact
FINANCIAL CALENDAR & IR CONTACT DATE EVENT INVESTOR RELATIONS CONTACT 02.06.2021 ODDO BHF Next Cap Forum Michael Schickling 10.06.2021 Annual General Meeting T: +49 (0) 6095 301 617 E: [email protected] 12.08.2021 Publication of the Half-Year Financial Report 2021 Alexander Pöschl 01.09.2021 Commerzb
Slide 17: 3. Appendix
3. Appendix Financial Results Q1 2021 < 17 >
Slide 18: Truck and Trailer Production 1Q 2021: Strong Start to the Year
TRUCK AND TRAILER PRODUCTION 1Q 2021: STRONG START TO THE YEAR NORTH SOUTH EUROPE CHINA INDIA AMERICA AMERICA** Truck* Trailer Truck Trailer Truck Trailer Truck Trailer Truck Trailer +15% +12% +12% +7% +25% +41% +98% +142% +110% +37% • SIGNIFICANT INCREASE IN INDIA, • HIGHER VOLUMES IN EUROPE AND NO
Slide 19: P&L Q1 2021: Quality of Earnings Substantially Improved
P&L Q1 2021: QUALITY OF EARNINGS SUBSTANTIALLY IMPROVED Total Q1 2021 in % Total Q1 2020 in % in EUR thousands Q1 2021 Adjustments adjusted* of sales Q1 2020 Adjustments adjusted* of sales Sales 285,620 – 285,620 100.0% 283,411 – 283,411 100.0% Cost of sales -230,159 524 -229,635 -80.4% -232,454 1,3
Slide 20: Group: Reconciliation EBIT to Adjusted EBIT
GROUP: RECONCILIATION EBIT TO ADJUSTED EBIT in EUR thousands Q1 2021 Q1 2020 Change absolute Change in % EBIT 19,453 14,373 5,080 35.3% EBIT margin in % 6.8% 5.1% – – Additional depreciation and amortization of property, plant 2,290 2,436 -146 -6.0% and equipment and intangible assets from PPA Valua
Slide 21: EMEA: Reconciliation EBIT to Adjusted EBIT
EMEA: RECONCILIATION EBIT TO ADJUSTED EBIT in EUR thousands Q1 2021 Q1 2020 Change absolute Change in % EBIT 15,124 14,019 1,105 7.9% EBIT margin in % 9.0% 8.9% – – Additional depreciation and amortization of property, plant 1,162 1,162 – – and equipment and intangible assets from PPA Valuation effe
Slide 22: Americas: Reconciliation EBIT to Adjusted EBIT
AMERICAS: RECONCILIATION EBIT TO ADJUSTED EBIT in EUR thousands Q1 2021 Q1 2020 Change absolute Change in % EBIT 4,695 2,860 1,835 64.2% EBIT margin in % 5.2% 2.7% – – Additional depreciation and amortization of property, plant 542 619 -77 -12.4% and equipment and intangible assets from PPA Valuatio
Slide 23: APAC: Reconciliation EBIT to Adjusted EBIT
APAC: RECONCILIATION EBIT TO ADJUSTED EBIT in EUR thousands Q1 2021 Q1 2020 Change absolute Change in % EBIT -366 -2,506 2,140 -85.4% EBIT margin in % -1.3% -11.9% – – Additional depreciation and amortization of property, plant 586 655 -69 -10.5% and equipment and intangible assets from PPA Valuatio
Slide 24: D&A Ratio: Further Lever to Improve Adj. EBIT Margin
D&A RATIO: FURTHER LEVER TO IMPROVE ADJ. EBIT MARGIN 2020 • Investments in plant, property, INVESTMENTS (IN % OF SALES) INVESTMENTS BY QUARTER (IN % OF SALES) equipment and intangible assets 2021 reached 1.9 per cent of Group sales (FY 2021 guidance: around 2.5 per cent of Group sales) 3,3% • Focus
Slide 25: Adj. EBITDA Margin
ADJ. EBITDA MARGIN GROUP ADJ. EBITDA MARGIN ADJ. EBITDA MARGIN BY QUARTER 2020 13,1% 10,9% 10,9% 2021 9,7% 9,7% 10,1% 7,4% YTD Q1 Q2 Q3 Q4 EMEA ADJ. EBITDA MARGIN ADJ. EBITDA MARGIN BY QUARTER 12,3% 12,2% 16,1% 13,1% 12,3% 12,2% 10,0% YTD Q1 Q2 Q3 Q4 NOTE: All figures shown are rounded, minor discre
Slide 26: Adj. EBITDA Margin
ADJ. EBITDA MARGIN AMERICAS ADJ. EBITDA MARGIN ADJ. EBITDA MARGIN BY QUARTER 2020 13,0% 2021 9,8% 9,8% 10,3% 7,6% 7,6% 6,1% YTD Q1 Q2 Q3 Q4 APAC ADJ. EBITDA MARGIN ADJ. EBITDA MARGIN BY QUARTER 6,2% 6,2% 0,9% 0,9% -7,5% -7,4% -12,0% YTD Q1 Q2 Q3 Q4 NOTE: All figures shown are rounded, minor discrepa
Slide 27: Current Financing Structure
CURRENT FINANCING STRUCTURE MATURITY PROFILE (€ MN) ** 100 20 Amount Maturity Product € mn date * 200 Loan RMB 9.0 06/2022 9 Promissory note loan old (7 years) 5.0 11/2022 141 5 Promissory note loan new (3 years) 141.0 03/2023 Promissory note loan new (3.5 years) 20.0 09/2023 Revolving credit facili
Slide 28: 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