SAF-Holland SE · XETR:SFQ

SAF-Holland — Q1 2018 Earnings Presentation

28 slides from SAF-Holland's earnings presentation, May 9, 2018

  1. Slide 1: SMART STEEL Q1 2018 Results

    SMART STEEL Q1 2018 Results Detlef Borghardt, CEO Dr. Matthias Heiden, CFO May 9, 2018

  2. Slide 2: Agenda: Business summary Q1 2018

     Business summary Q1 2018  Market update  Financials  Market forecast and Company outlook 2

  3. Slide 3: Business summary Q1 2018

    Business summary Q1 2018  Continued strong organic sales growth of 8.8% to € 312.6 million  Negative exchange rate effects of € 17.7 million, resulting primarily from the depre- ciation of the US dollar against the euro, impacted reported sales, which were up 2.6 % to € 294.9 million (py: € 287.3

  4. Slide 4: Business summary Q1 2018

    Business summary Q1 2018  The Group effective tax rate fell to 26.4% in Q1 2018 (py: 32.7%)  The result for the period reached € 9.8 million (py: € 11.3 million)  Q1 2018 basic earnings per share achieved were € 0.22 (py: € 0.26)  Q1 2018 adjusted basic earnings per share amounted to € 0.27 (py:

  5. Slide 5: Agenda: Market update

     Business summary Q1 2018  Market update  Financials  Market forecast and Company outlook 5

  6. Slide 6: Trailer market trend North America: Solid order intake

    Trailer market trend North America: Solid order intake in view of filling build slots Trailer net orders 50000 40000 30000 20000 10000 0 Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. 2016 17649 21360 13789 15840 13302 11931 9482 14031 11746 20158 35790 34060 2017 32800 25800 20455 199

  7. Slide 7: Truck market trend North America remains upbeat

    Truck market trend North America remains upbeat Class-8 net orders 50000 40000 30000 20000 10000 0 Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. 2015 34984 30838 24918 22044 20021 19747 23811 18926 19235 25749 16388 27660 2016 18062 17650 16147 13500 14095 13000 10263 14078 13753 1377

  8. Slide 8: Heavy truck market in the EU

    Heavy truck market in the EU New registrations of heavy commercial vehicles (HCV) >16 tons 40000 30000 20000 10000 0 Jan Feb March April May June July Aug Sep Oct Nov Dec 2015 18564 17234 24798 21653 20633 23126 21865 15516 25171 28529 22431 20839 2016 21989 21052 28250 26756 23402 26571 19453 18387

  9. Slide 9: Agenda: Financials

     Business summary Q1 2018  Market update  Financials  Market forecast and Company outlook 9

  10. Slide 10: Group sales and adjusted EBIT by quarter

    Group sales and adjusted EBIT by quarter Sales in € mn Adj. EBIT in € mn 400 35 14% 350 30 26.3 26.7 12% 300.3 294.9 300 287.3 25.1 273.7 277.1 274.2 25 259.9 255.8 22.7 252.6 21.6 10% 250 20.9 20.3 19.8 20 9.6% 18.5 8.7% 8.9% 8% 200 8.4% 8.7% 7.8% 7.5% 15 6.7% 6.9% 6% 150 10 4% 100 50 5 2% 0 0 0% Q

  11. Slide 11: Share of group sales by channel and region in Q1 2018

    Share of group sales by channel and region in Q1 2018 8.7% (py: 6.4%) 23.5% (py: 24.7%) 34.6% (py: 37.8%) 76.5% (py: 75.3%) 56.7% (py: 55.8%) OEM business Aftermarket business EMEA/I Americas APAC/China Share of the OEM business increases to 76.5%. Share of APAC/China picks up significantly while sh

  12. Slide 12: Business performance by region: EMEA/I

    Business performance by region: EMEA/I posts solid organic sales increase realizing operational leverage Sales in € mn Summary 200  Q1 2018 sales growth of 4.3% to € 167.2 mn (py: € 160.3 160.3 167.2 mn). On a currency-adjusted basis: +5.1% yoy  Favorable macroeconomic environment, improved 100 Ea

  13. Slide 13: Business performance by region: Americas

    Business performance by region: Sequential improvement of earnings situation, still burdened by realignment of plant network in the US Sales in € mn Summary 200  Despite the ongoing realignment measures, the Americas Region realized organic sales growth in the high single- digit percentage range (7

  14. Slide 14: Business performance by region: APAC/China

    Business performance by region: APAC/China again achieves highest percentage sales growth within the Group Sales in € mn Summary 30 25.8  Q1 2018 sales increased by 39.6% to € 25.8 mn, on a 25 currency-adjusted basis 49.2% 20 18.5  The focus has remained on growing the customer base 15 in the OEM

  15. Slide 15: Reconciliation sales to gross profit Q1 2018

    Reconciliation sales to gross profit Q1 2018 in € mn Impacts on gross margin in Q1 18 350 300 294.9 244.3 Temp. workforce - 250 total Volume +- 200 Raw materials - 150 Product mix - 100 3.9 Thereof: Additional operating cost related to US Restructuring cost on group level Restructuring cost - 50 1.9

  16. Slide 16: Burdening effects on Q1 2018 adj. EBIT Americas region

    Burdening effects on Q1 2018 adj. EBIT Americas region in € mn Add-on operating expenses of € 3.9 mn 9 8 7 -0.7 6 -3.2 5 4 7.7 3 2 1 -1.7 0 -0.7 -1 -2 -3 -4 -5 Adj. EBIT Q1 2017 Customer debit Expedited freight/ Logistics Mix/Others Adj. EBIT Q1 2018 Besides, € 0.9 mn in restructuring charges (that

  17. Slide 17: Group adjusted EBIT by quarter

    Group adjusted EBIT by quarter Adjusted EBIT in € mn 30 16% 26.3 26.7 25.1 22.7 21.6 12% 20.9 20.3 19.8 20 18.5 9.6% 8.7% 8.7% 8.9% 8% 8.4% 7.8% 7.5% 6.7% 6.9% 10 4% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 The Q1 2018 adjusted EBIT margin slightly improved to 6.9% compared to the previous qua

  18. Slide 18: Reconciliation reported EBIT to adjusted EBIT Q1 2018

    Reconciliation reported EBIT to adjusted EBIT Q1 2018 in € mn 20.3 20 1.9 17.2 1.2 10 0 EBIT Depreciation and Restructuring and Adjusted EBIT amortization from PPA transaction costs Excl. restructuring and transaction costs totaling € 1.9 mn (thereof € 0.9 mn related to US plant consolidation) and P

  19. Slide 19: From EBIT to net income Q1 2018

    From EBIT to net income Q1 2018 in € mn 20 17.2 3.9 3.5 9.8 10 0 EBIT Finance result Income taxes Net income Clean EBIT of € 17.2 mn (py: € 21.0 mn) combined with slightly lower net finance cost of € 3.9 mn (py: € 4.3 mn) and a reduced Group tax rate of 26.4% (py: 32.7%) in producing net income of €

  20. Slide 20: Basic EPS versus adjusted EPS

    Basic EPS versus adjusted EPS in € 0.50 0.40 0.32 0.30 0.27 0.26 0.22 0.20 0.10 0.00 Basic earnings per share Adjusted basic earnings per share Q1 2017 Q1 2018 Based on 45.4 mn shares outstanding, basic EPS reached € 0.22 (py: € 0.26); Adjusted basic EPS amounted to € 0.27 (py: € 0.32). 20

  21. Slide 21: Inventories and net working capital (NWC)

    Inventories and net working capital (NWC) Inventories in € mn and days of inventories Summary 180 75  Inventories due to strong organic sales growth and 151.8 160 145.7 138.9 139.3 133.7 seasonal patterns increased to € 151.8 mn until the 127.2 123.7 124.6 131.0 65 140 end of Q1 2018 (Dec. 31, 2017

  22. Slide 22: Free cash flow by quarter

    Free cash flow by quarter in € mn 40 29.3 30 26.8 19.4 20 10.9 10 13.0 7.5 6.1 0 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -15.6 -29.5 -20 2016 2017 2018 -30 Seasonally weaker Q1 free cash flow (net cash flow from operating activities less investments in property, plant and equipment and intangible assets) cam

  23. Slide 23: Net debt at € 142.6 mn - Equity ratio

    Net debt at € 142.6 mn - Equity ratio still reflecting strong cash position Net debt Equity ratio in € mn Σ 105.5* Σ 142.6* 500 400 300 30.2% 29.4% 200 442.6 444.7 100 0 -100 -337.1 -302.2 -200 -300 -400 Dec 31, 2017 Mar 31, 2018 Dec 31, 2017 Mar 31, 2018 Cash Debt * Net debt including cash and cash

  24. Slide 24: Agenda: Market forecast and Company outlook

     Business summary Q1 2018  Market update  Financials  Market forecast and Company outlook 24

  25. Slide 25: Market trend 2017 and forecast 2018

    Market trend 2017 and forecast 2018 Global trailer forecast in thousand Change Change Change Share in group 2014 2015 2016 in % yoy 2017 in % yoy 2018 in % yoy sales FY17* ACT Trailer Shipm.1) 296 334 313 -6.4 316 +1.0 332 +5.1 North America approx. 20 % FTR Trailer Build2) 292 331 309 -6.6 314 +2.0

  26. Slide 26: Outlook: Financial targets 2018 and mid-term planning 2020

    Outlook: Financial targets 2018 and mid-term planning 2020 FY 2018* Strategy 2020 Organic increase of 4 to 5% Organic: € 1,250 mn + contribution from V.Orlandi and York (~ € 50 mn) Sales + potential M&A + M&A: Coops, JVs, acquisitions Assuming stable FX rates and unchanged scope of consolidation Tot

  27. Slide 27: 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 S.A. (“SAF-HOLLAND”) and comprises written materials

  28. Slide 28: Investor Relations

    Investor Relations SAF-HOLLAND GmbH Stephan Haas Hauptstraße 26 63856 Bessenbach Phone +49 6095 301-617 Telefax +49 6095 301-102 Mobile +49 170 306 64 97 [email protected] www.safholland.com 28

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