SAF-Holland SE · XETR:SFQ
SAF-Holland — 9M 2021 Earnings Presentation
30 slides from SAF-Holland's earnings presentation, Nov 15, 2021
Slide 1: Financial Results 9M 2021
FINANCIAL RESULTS 9M 2021 ALEXANDER GEIS, CEO INKA KOLJONEN, CFO NOVEMBER 15, 2021 Financial Results 9M 2021 < 1 >
Slide 2: Agenda
AGENDA 1 HIGHLIGHTS 9M 2021 Alexander Geis 2 FINANCIAL PERFORMANCE Inka Koljonen 3 OUTLOOK Alexander Geis 4 APPENDIX Financial Results 9M 2021 < 2 >
Slide 3: 1. Highlights 9M 2021
1. Highlights 9M 2021 Financial Results 9M 2021 < 3 >
Slide 4: Highlights 9M 2021: Strong Performance Despite Material Cost Headwinds
HIGHLIGHTS 9M 2021: STRONG PERFORMANCE DESPITE MATERIAL COST HEADWINDS • Sales: strong double digit percentage growth in all Sales Capex ratio regions € 925 MN 1.4% • Very solid aftermarket performance • Adj. EBIT margin: volume growth and mix effects (9M 2020: € 709 MN) (9M 2020: 2.3%) compensate m
Slide 5: Group: Sustained Positive Sales and Earnings Development
GROUP: SUSTAINED POSITIVE SALES AND EARNINGS DEVELOPMENT MAIN DRIVERS SALES (€ MN) SALES BY QUARTER (€ MN) 2020 • Sales strongly above 2020 level + 30.5 % 2021 • Market share gains in EMEA 925 709 • Americas stabilising at higher Q2 level • APAC driven by strong OE and AM business 283 286 323 317 19
Slide 6: EMEA: Continuing Strong Performance
EMEA: CONTINUING STRONG PERFORMANCE MAIN DRIVERS SALES (€ MN) SALES BY QUARTER (€ MN) + 34.7 % 2020 • Sales increased by 34.7 per cent to € 545 mn due to 2021 strong OE business and very solid AM business 545 405 • Sales growth adjusted for FX effects: +36.2 per cent 157 168 193 184 148 • Adjusted g
Slide 7: Americas: Stable Margin Development
AMERICAS: STABLE MARGIN DEVELOPMENT MAIN DRIVERS SALES (€ MN) SALES BY QUARTER (€ MN) 2020 • Sales increased by 19.8 per cent to € 300 mn due to + 19.8 % 2021 stronger OE truck business and solid AM business 300 250 • Sales increase adjusted for FX effects: +27.1 per cent 105 90 105 105 • OE trailer
Slide 8: APAC: Further Margin Improvement
APAC: FURTHER MARGIN IMPROVEMENT MAIN DRIVERS SALES (€ MN) SALES BY QUARTER (€ MN) 2020 • Sales increased by 48.1 per cent driven by strong OE + 48.1 % 2021 business and growing AM business 80 54 • Sales growth adjusted for FX effects: +49.1 per cent 27 25 27 • Strong improvement of adjusted gross p
Slide 9: 2. Financial Performance
2. Financial Performance Financial Results 9M 2021 < 9 >
Slide 10: Investments: Delayed Due to Timing Issues
INVESTMENTS: DELAYED DUE TO TIMING ISSUES INVESTMENTS (AS % OF SALES)* • Capex ratio of 1.4 per cent after 9M 2021 not representative for the full year 2020 2021 • Focus of investing activities in 9M 2021: • Efficiency-enhancing measures 3.3% • New friction welding machine in Bessenbach • Fully auto
Slide 11: 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 2020 2021 16.5% necessary in all three quarters in 2021 1
Slide 12: Cash Conversion Rate: Net Working Capital Is the Key Driver
CASH CONVERSION RATE: NET WORKING CAPITAL IS THE KEY DRIVER in EUR thousands Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 EBITDA 21,059 28,606 30,827 33,773 32,674 Change in NWC *** 29,207 24,519 -23,118 -23,043 -20,176 Other Cash and Non-Cash Items *** 6,808 7,964 1,424 1,108 -1,171 Operating cash flow
Slide 13: Net Debt/EBITDA: Further Deleveraging Achieved
NET DEBT/EBITDA*: FURTHER DELEVERAGING ACHIEVED • Q3 2021 shows further improvement driven by better 4.00 EBITDA (LTM) 3.68 Net Debt/EBITDA* target range 2-3x 3.50 • Further sequential deleveraging expected in the 3.00 upcoming quarters mainly driven by better EBITDA (LTM) 2.50 2.40 2.25 • Strong gr
Slide 14: 3. Outlook
3. Outlook Financial Results 9M 2021 < 14 >
Slide 15: Truck and Trailer Production 2021: Widely Differing Market Developments
TRUCK AND TRAILER PRODUCTION 2021: WIDELY DIFFERING MARKET DEVELOPMENTS NORTH SOUTH EUROPE CHINA INDIA AMERICA AMERICA* Truck Trailer Truck Trailer Truck Trailer Truck Trailer Truck Trailer +20% to Nov 2021 +15% +25% +20% +25% +45% +20% -5% to -10% -5% to -10% +150% +100% +25% to +20% to Aug 2021 +4
Slide 16: Guidance 2021 Unchanged
GUIDANCE 2021 UNCHANGED* FY 2020 FY 2021* Sales € 959.5 mn € 1,100 mn to € 1,200 mn Adj. EBIT margin 6.1 per cent Around 7.5 per cent CAPEX 2.5 per cent of sales Around 2.5 per cent of sales • The EBIT guidance for FY 2021 is based on the assumption that in the remainder of the year there will be no
Slide 17: Key Takeaways
KEY TAKEAWAYS 1. Benefiting from the upswing in Europe, North America, Brazil and India based on leading market positions 2. Economies of scale safeguard strong operating performance 3. Strategic investments in growing markets like Russia, Turkey and Mexico 4. Further deleveraging expected 5. Overal
Slide 18: Financial Calendar & IR Contact
FINANCIAL CALENDAR & IR CONTACT DATE EVENT INVESTOR RELATIONS CONTACT 23.11.2021 Berenberg – Virtual management roadshow Petra Müller 07.01.2022 ODDO BHF Forum T: +49 (0) 6095 301 918 10.01.2022 Berenberg German Corporate Conference USA 18.01.2022 Kepler Cheuvreux German Corporate Conference Michael
Slide 19: 4. Appendix
4. Appendix Financial Results 9M 2021 < 19 >
Slide 20: Truck and Trailer Production 9M 2021: Recovery Slowing Down
TRUCK AND TRAILER PRODUCTION 9M 2021: RECOVERY SLOWING DOWN NORTH SOUTH EUROPE CHINA INDIA AMERICA AMERICA* Truck Trailer Truck Trailer Truck Trailer Truck Trailer Truck Trailer 9M 2021 +30% +35% +33% +33% +50% +45% 0% -5% +139% +129% +47% +35% +60% +34% +115% +68% +20% +15% +168% +81% H1 2021 • HIG
Slide 21: P&L 9M 2021: Quality of Earnings Substantially Improved
P&L 9M 2021: QUALITY OF EARNINGS SUBSTANTIALLY IMPROVED Total 9M 2021 in % Total 9M 2020 in % in EUR thousands 9M 2021 Adjustments adjusted* of sales 9M 2020 Adjustments adjusted* of sales Sales 924,762 – 924,762 100.0% 708,698 – 708,698 100.0% Cost of sales -759,384 2,185 -757,199 -81.9% -589,694 8
Slide 22: Group: Reconciliation EBIT to Adjusted EBIT
GROUP: RECONCILIATION EBIT TO ADJUSTED EBIT in EUR thousands 9M 2021 9M 2020 Change absolute Change in % EBIT 62,658 18,943 43,715 230.8% EBIT margin in % 6.8% 2.7% Additional depreciation and amortisation of property, plant 6,878 7,876 -998 -12.7% and equipment and intangible assets from PPA Restru
Slide 23: EMEA: Reconciliation EBIT to Adjusted EBIT
EMEA: RECONCILIATION EBIT TO ADJUSTED EBIT in EUR thousands 9M 2021 9M 2020 Change absolute Change in % EBIT 49,535 28,823 20,712 71.9% EBIT margin in % 9.1% 7.1% Additional depreciation and amortisation of property, plant 3,433 3,478 -45 -1.3% and equipment and intangible assets from PPA Restructur
Slide 24: Americas: Reconciliation EBIT to Adjusted EBIT
AMERICAS: RECONCILIATION EBIT TO ADJUSTED EBIT in EUR thousands 9M 2021 9M 2020 Change absolute Change in % EBIT 13,733 2,949 10,784 365.7% EBIT margin in % 4.6% 1.2% Additional depreciation and amortisation of property, plant 1,643 1,794 -151 -8.4% and equipment and intangible assets from PPA Restr
Slide 25: APAC: Reconciliation EBIT to Adjusted EBIT
APAC: RECONCILIATION EBIT TO ADJUSTED EBIT in EUR thousands 9M 2021 9M 2020 Change absolute Change in % EBIT -610 -12,829 12,219 – EBIT margin in % -0.8% -23.8% Additional depreciation and amortisation of property, plant 1,802 2,604 -802 -30.8% and equipment and intangible assets from PPA Restructur
Slide 26: 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 1.4 per cent of Group sales in 9M 2021 (FY 2021 guidance: around 2.5 per cent of Group sales) 3.
Slide 27: Adj. EBITDA Margin
ADJ. EBITDA MARGIN GROUP ADJ. EBITDA MARGIN ADJ. EBITDA MARGIN BY QUARTER 2020 13.1% 10.7% 10.9% 10.7% 2021 9.2% 9.7% 10.1% 10.5% 7.4% YTD Q1 Q2 Q3 Q4 EMEA ADJ. EBITDA MARGIN ADJ. EBITDA MARGIN BY QUARTER 11.9% 12.3% 16.1% 12.6% 13.1% 12.3% 12.2% 12.1% 10.0% YTD Q1 Q2 Q3 Q4 NOTE: All figures shown a
Slide 28: Adj. EBITDA Margin
ADJ. EBITDA MARGIN AMERICAS ADJ. EBITDA MARGIN ADJ. EBITDA MARGIN BY QUARTER 2020 13.0% 2021 9.8% 10.3% 9.0% 8.8% 8.0% 8.5% 7.6% 6.1% YTD Q1 Q2 Q3 Q4 APAC ADJ. EBITDA MARGIN ADJ. EBITDA MARGIN BY QUARTER 6.2% 6.2% 6.0% 6.5% 0.9% -5.8% -7.5% -7.4% -12.0% YTD Q1 Q2 Q3 Q4 NOTE: All figures shown are ro
Slide 29: Current Financing Structure
CURRENT FINANCING STRUCTURE MATURITY PROFILE (€ MN) ** 100 20 Amount Maturity Product € mn date * Loan RMB 9.0 06/2022 200 Promissory note loan old (7 years) 5.0 11/2022 9 Promissory note loan new (3 years) 141.0 03/2023 141 5 Promissory note loan new (3.5 years) 20.0 09/2023 Revolving credit facili
Slide 30: 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