SAF-Holland SE · XETR:SFQ
SAF-Holland — H1 2014 Earnings Presentation
19 slides from SAF-Holland's earnings presentation, Aug 7, 2014
Slide 1: SAF-HOLLAND 1st half-year results 2014
Focus on fleet customers SAF-HOLLAND 1st half-year results 2014 Detlef Borghardt, CEO Wilfried Trepels, CFO August 7, 2014
Slide 2: Executive Summary
Executive Summary Increase in group sales by 10.7% to €482.0mn (previous year: 435.6) especially driven by 1 positive business development in Europe. Strong increase in profitability: adj. EBIT increased to €36.5mn (previous year: 29.8) and 2 adj. EBIT margin to 7.6% (previous year: 6.8%) due to hig
Slide 3: Business performance – group sales and group adjusted EBIT
Business performance – group sales and group adjusted EBIT Sales in €mn Adjusted EBIT in €mn 600 40 16% 36.5 482.0 14% 500 435.6 29.8 30 12% 400 10% +6.7mn +46.4 300 20 8% 7.6% 6.8% 6% 200 10 4% 100 2% 0 0 0% Q1-Q2/2013 Q1-Q2/2014 Q1-Q2/2013 Q1-Q2/2014 300 24 16% 246.7 20 19.4 250 235.3 225.5 219.1
Slide 4: Business performance – sales by region and business unit
Business performance – sales by region and business unit Sales in €mn by region Sales in €mn by business unit Europe North America Other Trailer Systems Powered Vehicle Systems Aftermarket 600 600 500 +37.4% 45.9 500 33.4 (9.5%) (7.7%) 122.3 400 400 +10.3% 174.9 110.9 (25.4%) -0.2% (36.3%) (25.5%) 1
Slide 5: Business performance – Trailer Systems
Business performance – Trailer Systems Sales in €mn Summary 160 140.9 139.9 • Sales increase of 12.7% to €280.8mn YTD 2014 (YTD 2013: 140 121.4 127.8 123.9 249.2). 120 112.6 100 • Strong sales in Europe in Q1/2014 after shift of trailer orders 80 from Q4/2013 into Q1/2014 related to pre-buy activiti
Slide 6: Gap between BU TS target margin for 2015 and current adj. EBIT margin
Gap between BU TS target margin for 2015 and current adj. EBIT margin needs to be closed by implementation of measures • Sales: €980mn to €1.035bn • Net Working Capital: <10% of sales Targets 2015 • Earnings: 9 to 10% adj. EBIT margin • Capex: < 2% of sales Growth potential Trailer Systems for 2015
Slide 7: Implementation of measures to increase sales and adj. EBIT margin of BU TS until 2015
Implementation of measures to increase sales and adj. EBIT margin of BU TS until 2015 started in Q3/2013 Measures Content Realization of additional Explore additional regional markets which are not yet in sales focus sales increase market potentials (ROW) Introduction of new Development of and go-to
Slide 8: Business performance – Powered Vehicle Systems
Business performance – Powered Vehicle Systems Sales in €mn Summary 45 42.4 • Sales increase to €78.9mn YTD 2014 (YTD 2013: 75.5) despite 40 38.4 37.1 34.9 36.5 unfavorable currency situation. 35 34.3 • In Q2/2014 compensation of weaker Q1/2014 business 30 25 performance related to harsh winter and
Slide 9: Business performance – Aftermarket
Business performance – Aftermarket Sales in €mn Summary 70 64.4 • Sales increase to €122.3mn YTD 2014 (YTD 2013: 110.9) 59.3 60.9 60 51.6 54.8 57.9 • Good sales development in core markets Europe and North 50 America. 40 • New sales offices in South America and Parts Distribution 30 Center in Mexico
Slide 10: Business performance – operating cash flow
Business performance – operating cash flow Operating cash flow before income tax in €mn Summary 28 25.3 • Operating cash flow of €15.0mn YTD 2014 (YTD 2013: 36.4). 24 • Net working capital reached €107.3mn (Q2/2013: 78.8) and 20 totaled 10.9% of sales (Q2/2013: 8.7%); development mainly 16 14.2 infl
Slide 11: Financials – balance sheet
Financials – balance sheet in €mn 06/30/2014 % 12/31/2013 % Non-current assets 336.4 55.3% 329.1 61.3% Inventories 122.7 20.2% 100.2 18.7% Other current assets 129.8 21.4% 83.2 15.5% Cash and cash equivalents 18.9 3.1% 23.9 4.5% Total assets 607.8 100.0% 536.4 100.0% Equity 231.5 38.1% 222.2 41.4% O
Slide 12: Financials – profit and loss statement
Financials – profit and loss statement in €mn Q1-Q2/2014 % Q1-Q2/2013 % Comments Sales 482.0 100.0% 435.6 100.0% • Strong expansion of sales led to increase Cost of Sales -391.2 -81.2% -355.3 -81.6% in gross profit to €90.8mn (previous year: 80.3) and gross margin to 18.8% Gross Profit 90.8 18.8% 80
Slide 13: Financials – cash flow statement
Financials – cash flow statement in €mn Q1-Q2/2014 Q1-Q2/2013 Result before tax 25.5 19.8 Finance result 6.0 5.8 Amortization/depreciation 9.5 10.0 Change in Net Working Capital -26.2 -0.7 Other items cash flow 0.2 1.5 Operating cash flow before income tax 15.0 36.4 Income tax paid -5.9 -8.0 Operati
Slide 14: Key financials
Key financials in €mn Q1-Q2/2014 Q1-Q2/2013 Q2/2014 Q2/2013 Sales 482.0 435.6 246.7 225.5 Cost of sales -391.2 -355.3 -199.9 -184.4 Gross profit 90.8 80.3 46.8 41.1 Margin 18.8% 18.4% 19.0% 18.2% Adjusted result 21.1 16.6 11.5 8.0 Margin 4.4% 3.8% 4.7% 3.5% Adjusted EPS in € 0.47 0.37 0.26 0.18 Adju
Slide 15: Key financial ratios and figures
Key financial ratios and figures Net financial debt (€mn) Summary 350 • Significantly improved financial profile through capital increases 300 303.8 289.3 302.1 • Reduction of interest costs • Further improvement of the equity ratio 250 • Further reduction of net debt 200 159.7 • Long-term safeguard
Slide 16: Share price and shareholder structure
Share price and shareholder structure Development of SAF-HOLLAND share price vs. indices (in %) Shareholder Structure (in %) As of July 3, 2014 Basic data for share as of June 30, 2014 SAF-HOLLAND share price increase of 6.6% ISIN LU0307018795 • Share price burdened by profit takings in the middle o
Slide 17: Targets and outlook: Increase in sales and earnings expected for 2014
Targets and outlook: Increase in sales and earnings expected for 2014 • Sales between €920mn and €945mn • Adj. EBIT approximately €70mn and increasing adj. EBIT margin Targets 2014 • Assumptions: Generally stable economic and political conditions in Europe and North America and improvement of indust
Slide 18: Truck and trailer market development forecasts
1 Truck and trailer market development forecasts Global truck forecast Change in Change 2013 2014 % yoy 2015 in % yoy ACT Truck Build1) 245,496 297,428 +21.15 305,747 +2.80 North America Class 8 FTR Truck Shipment2) 243,003 292,000 +20.16 293,000 +0.34 Change in Change 2013 2014 % yoy 2015 in % yoy
Slide 19: Thank you for your attention.
Thank you for your attention. 19