SAF-Holland SE · XETR:SFQ
SAF-Holland — Q3 2014 Earnings Presentation
24 slides from SAF-Holland's earnings presentation, Nov 6, 2014
Slide 1: SAF-HOLLAND 3rd quarter results 2014
Focus on fleet customers SAF-HOLLAND 3rd quarter results 2014 Detlef Borghardt, CEO Wilfried Trepels, CFO November 6, 2014
Slide 2: Executive Summary
Executive Summary Under the motto ‘inspired by PASSION’ and with strong focus on end customers SAF- 1 HOLLAND presented 23 innovations on IAA Commercial Vehicles providing many new solutions in terms of weight reduction, liability and maintainability. Increase in group sales by 10.5% to €723.5mn (pr
Slide 3: Market development supports Outlook for the Group
Market development supports Outlook for the Group Global truck forecast Change in Change 2013 2014 % yoy 2015 in % yoy ACT Truck Build1) 245,801 296,487 +20.62 311,821 +5.17 North America Class 8 FTR Truck Shipment2) 243,003 292,574 +20.40 295,000 +0.83 Change in Change 2013 2014 % yoy 2015 in % yoy
Slide 4: …and with focus on the end customer
SAF- HOLLAND on IAA - review …and with focus on the end customer Firework of innovations – Fleet connect – The CFRP axle – 23 new innovations at the show our loyalty program focus on future technologies • INTRA S + INTRA R • Recognizes and rewards loyal • Innovative CFRP axle consists • Carbon Fiber
Slide 5: Business performance – group sales and group adjusted EBIT
Business performance – group sales and group adjusted EBIT Sales in €mn Adjusted EBIT in €mn 800 60 16% 723.5 55.6 700 654.7 50 46.3 600 12% 40 500 +9.3mn +68.8mn 400 30 8% 7.7% 300 7.1% 20 200 4% 10 100 0 0 0% Q1-Q3/2013 Q1-Q3/2014 Q1-Q3/2013 Q1-Q3/2014 300 24 16% 246.7 241.5 20 19.4 19.1 250 235.3
Slide 6: 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 800 800 +39.3% 73.7 700 (10.2%) 700 52.9 (8.1%) 186.5 600 600 +8.6% (25.8%) 171.8 270.1 (26.2%) 500 263.2 +2.6%
Slide 7: Business performance – Trailer Systems
Business performance – Trailer Systems Sales in €mn Summary 160 140.9 139.9 • Sales increase of 11.0% to €414.1mn YTD 2014 (YTD 2013: 140 133.3 121.4 127.8 123.9 373.1). 120 112.6 100 • Strong market development in North America and continued 80 utilization of production capacity added in 2013 in Wa
Slide 8: Business performance – Powered Vehicle Systems
Business performance – Powered Vehicle Systems Sales in €mn Summary 45 42.4 44.0 • Sales increase of 11.9% to €122.9mn YTD 2014 (YTD 2013: 40 38.4 37.1 34.9 36.5 109.8). 35 34.3 • Ongoing reluctance regarding investments by US government. 30 25 • Positive sales contribution also from European facili
Slide 9: Business performance – Aftermarket
Business performance – Aftermarket Sales in €mn Summary 70 64.4 64.2 • Sales increase of 8.6% to €186.5mn YTD 2014 (YTD 2013: 59.3 60.9 60 57.9 51.6 54.8 171.8) 50 • Good sales development in core markets Europe and North 40 America. 30 • Increasing sales benefits from SAUER Quality Parts. 20 • Expa
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 €21.4mn YTD 2014 (YTD 2013: 48.9). 24 • Net working capital reached €117.1mn (Q3/2013: 79.2) and 20 totaled 12.1% of sales (Q3/2013: 9.0%); development 16 14.2 influenced
Slide 11: Financials – balance sheet
Financials – balance sheet in €mn 09/30/2014 % 12/31/2013 % Non-current assets 348.7 54.1% 329.1 61.3% Inventories 125.5 19.5% 100.2 18.7% Other current assets 138.7 21.4% 83.2 15.5% Cash and cash equivalents 32.2 5.0% 23.9 4.5% Total assets 645.1 100.0% 536.4 100.0% Equity 252.1 39.1% 222.2 41.4% O
Slide 12: Financials – profit and loss statement
Financials – profit and loss statement in €mn Q1-Q3/2014 % Q1-Q3/2013 % Comments Sales 723.5 100% 654.7 100% • Strong expansion of sales led to increase Cost of Sales -587.5 -81.2% -533.4 -81.5% in gross profit to €136.0mn (previous year: 121.3) and gross margin to 18.8% Gross Profit 136.0 18.8% 121
Slide 13: Financials – cash flow statement
Financials – cash flow statement in €mn Q1-Q3/2014 Q1-Q3/2013 Result before tax 42.6 27.5 Finance result 5.1 12.2 Amortization/depreciation 14.4 13.3 Change in Net Working Capital -41.2 -5.9 Other items cash flow 0.5 1.8 Operating cash flow before income tax 21.4 48.9 Income tax paid -8.6 -10.5 Oper
Slide 14: Key financials
Key financials in €mn Q1-Q3/2014 Q1-Q3/2013 Q3/2014 Q3/2013 Sales 723.5 654.7 241.5 219.1 Cost of sales -587.5 -533.4 -196.3 -178.1 Gross profit 136.0 121.3 45.2 41.0 Margin 18.8% 18.5% 18.7% 18.7% Adjusted result 35.0 23.6 13.9 7.0 Margin 4.8% 3.6% 5.8% 3.2% Adjusted EPS in € 0.77 0.52 0.30 0.15 Ad
Slide 15: Share price and shareholder structure
Share price and shareholder structure Development of SAF-HOLLAND share price vs. indices (in %) Shareholder Structure (in %) As of October 13, 2014 Basic data for share as of September 30, 2014 SAF-HOLLAND share price development in September 2014 burdened by ISIN LU0307018795 Number of shares 45,36
Slide 16: Placement of convertible bond for SAF-HOLLAND in September 2014
Placement of convertible bond for SAF-HOLLAND in September 2014 Issue Size EUR 100.2 million Denomination EUR 100,000 (the „Principle Amount“) per Bond Redemption price 100% of Principle Amount 1.00% p.a., payable semi-annually in arrears on Coupon March 12 and Sep. 12, of each year, first time on M
Slide 17: New financing agreement of SAF-HOLLAND
New financing agreement of SAF-HOLLAND Former financing structure New financing structure Corporate Bond Term Loan A Rev. Credit Lines Corporate Bond Rev. Credit Lines Convertible Bond 75 mn. 65.2 mn. 121.4 mn. 75 mn. 109.8 mn. 100.2 mn EUR EUR EUR EUR EUR EUR 04 / 2018 10 / 2017 10 / 2017 04 / 2018
Slide 18: 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 19: Appendix
Appendix Fr Sb Holland
Slide 20: Reconciliation statement for adjusted EBIT
Reconciliation statement for adjusted EBIT in €mn Q1-Q3/2014 Q1-Q3/2013 Q3/2014 Q3/2013 Result of the period 28.7 18.1 11.1 5.1 Income tax 13.9 9.4 6.0 2.6 Finance Result 5.1 12.2 -0.8 6.4 Depreciation and amortization from PPA 4.5 4.6 1.5 1.5 Restructuring and integration costs 3.4 2.0 1.3 0.9 Adju
Slide 21: 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 22: 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 23: Disclaimer
Disclaimer • By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by SAF-HOLLAND S.A. ("SAF-HOLLAND") for use at a road show presentation by SAF-HOLLAND
Slide 24: Investor Relations
Investor Relations: SAF-HOLLAND GmbH Claudia Hoellen 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 24