SAF-Holland SE · XETR:SFQ
SAF-Holland — H1 2019 Earnings Presentation
22 slides from SAF-Holland's earnings presentation, Aug 8, 2019
Slide 1: Financial results H1 2019
Next Financial results H1 2019 Alexander Geis, CEO Dr. Matthias Heiden, CFO August 8, 2019
Slide 2: Agenda
Agenda H1 2019 at a glance Financial performance H1 2019 Outlook 2
Slide 3: H1 2019 at a glance
H1 2019 at a glance 1. Sales and adj. EBIT margin development on track 2. Americas region: earnings development stabilizes 3. China region: reorganisation underway in a challenging market environment 4. Continued high investment level to support future growth 5. Operating free cash flow: significant
Slide 4: Agenda
Agenda H1 2019 at a glance Financial performance H1 2019 Outlook 4
Slide 5: Truck and trailer production H1 2019
Truck and trailer production H1 2019 Western & Eastern Europe North America China Truck1 Trailer2 Truck3 Trailer3 Truck1 Trailer2 H1 H1 H1 +6% -12% +19% +7% +3% -15% to -20% 2019 2019 2019 Sustained upswing in North America. European trailer market easing after historic highs in 2018. Trade conflict
Slide 6: Truck and trailer production H1 2019
Truck and trailer production H1 2019 South America India Truck1 Trailer2 Truck1 Trailer2 H1 2019 +9% +19% H1 2019 -5% -36% Lasting recovery in South America; strong slump of the Indian trailer market as the expected catch-up effect after the April/May elections did not yet materialize 1 LMC Global C
Slide 7: Group
Group Sales (€ mn)* Sales by quarter (€ mn)* 2018 • H1 sales influenced by +8.6% 2019 Acquisition effects 695.5 (€ 34.5 mn) 640.3 FX effects (€ 16.4 mn) +17.3% +1.2% Organic effects (€ 4.2 mn 346.0 345.4 349.5 340.5 net; solely driven by the 294.9 319.7 strong organic growth in the Americas re
Slide 8: Business segment: EMEA
• H1 sales influenced by Business segment: EMEA 2018 Acquisitions effects (+4.0 Sales (€ mn)* Sales by quarter (€ mn)* 2019 per cent respectively +0.9% € 14.0 mn) 345.1 348.0 FX effects (0.0 per cent respectively € 0.0 mn) +5.4% -3.4% Organic effects (-3.2 per cent respectively € -11.1 167.1 1
Slide 9: Business segment: Americas
• H1 sales influenced by Business segment: Americas Organic effects (+14.0 per Sales (€ mn)* Sales by quarter (€ mn)* 2018 2019 cent respectively € 31.5 +21.2% mn; outperformed the market) 272.6 224.9 Positive development of +14.8% +28.9% disc braked axle business 131.3 141.3 123.0 128.9 101.9 1
Slide 10: Business segment: APAC
Business segment: APAC Sales (€ mn)* Sales by quarter (€ mn)* 2018 • H1 sales influenced by 2019 +46.4% Acquisition effects (+59.7 49.7 per cent respectively € 20.3 mn) +166.7% 34.0 -2.7% 31.3 28.8 Organic effects (-14.0 per 26.2 24.1 23.5 cent respectively € -4.8 mn due to unfavourable 9.8 mark
Slide 11: Business segment: China
• H1 sales influenced by Business segment: China Sales (€ mn)* Sales by quarter (€ mn)* 2018 Declining export business -30.8% 2019 of Chinese customers following the trade 36.3 dispute between China and the US -36.8% 25.1 -23.1% 24.9 Short notice cancellations 20.3 and delays in orders 16.0 14.8
Slide 12: Investments and depreciation
Investments and depreciation Investments (€ mn)* Investments by quarter (€ mn)* 2018 • Investments in plant, property, +59.0% 2019 equipment and intangible assets of € 24.2 mn 24.2 +106.2% • Focus of investments: 15.5 construction of the Chinese 15.2 14.4 +19.1% Greenfield project, 9.8 10.0 rational
Slide 13: Net working capital ratio
Net working capital ratio 16.0 16.0 • Net working capital (NWC) 4.6 15.5 per cent or € 9.3 mn below previous year‘s figure 15.0 Inventories on previous 14.5 14.5 14.3 year’s level despite sales increase of 8.6 per cent 14.0 14.0 13.5 13.5 Trade receivables down 13.5 16.9 per cent on substantiall
Slide 14: Operating free cash flow (€ mn)
Operating free cash flow (€ mn)* 58.3 • Operating cash flow at € 27.6 mn (H1 2018: € -30.9 mn) • Increase of net working capital in H1 2019 significantly lower than in H1 2018 26.8 • Investing cash flow: +59.0 per cent to € 24.2 mn 10.9 • Positive operating FCF 9.2 7.5 -5.9 -12.2 -15.6 -16.6 -29.5 Q
Slide 15: Agenda
Agenda H1 2019 at a glance Financial performance H1 2019 Outlook 15
Slide 16: Outlook: Truck and trailer production
Outlook: Truck and trailer production Western & Eastern Europe North America China Truck1 Trailer2 Truck3 Trailer3 Truck1 Trailer2 2018 -2% +6% 2018 +27% +12% 2018 -7% -4% 2019E +1% -10% 2019E +5% +3% 2019E -3% -15% Stable growth in North America; Western & Eastern Europa and China weaker 1 16 2 LMC
Slide 17: Outlook: Truck and trailer production
Outlook: Truck and trailer production South America India Truck1 Trailer2 Truck1 Trailer2 2018 +23% +55% 2018 +41% +13% 2019E +11% +5% 2019E -11% -25% South America with steady recovery, India with a weaker development 1 17 2 LMC Global Commercial Vehicles Forecast Q2 2019, medium & heavy truck CLEA
Slide 18: Financial targets 2019
Financial targets 2019 FY 2018 FY 2019* Sales € 1,300.6 mn + 4 to 5 per cent Around the mid-point of the 7 to 8 per Adj. EBIT margin 6.9 per cent cent range Net working capital 13.5 per cent 13 per cent ratio CAPEX € 40.8 mn € 68 to 70 mn 18 * Projections assume that there is no significant deterior
Slide 19: Your key takeaways
Your key takeaways Mixed picture and outlook in relevant ≈ markets Americas region well on track China: reorganisation underway in a challenging market environment Stringent focus on NWC management We take back control of our performance 19
Slide 20: Financial Calendar 2019
Financial Calendar 2019 Dates Events 08.08.2019 Half-yearly Financial Report 2019 14.08.2019 M.M. Warburg Roadshow, Warsaw 28.08.2019 Commerzbank Sector Conference, Frankfurt 10.09.2019 dbAccess IAA Cars Conference 2019, Frankfurt 24.09.2019 Berenberg and Goldman Sachs German Corporate Conference, M
Slide 21: IR Contact
IR Contact SAF-HOLLAND Group Hauptstraße 26 63856 Bessenbach Germany www.safholland.com Michael Schickling Head of Investor Relations / Corporate Communications [email protected] Phone: +49 - 6095 301-617 Alexander Pöschl Senior Manager Investor Relations / Corporate Communications al
Slide 22: 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