Investor Presentation Schaltbau Holding AG - THE SMART EVOLUTION OF MOBILITY
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Investor Presentation
Schaltbau Holding AG
November 2018 THE SMART EVOLUTION OF MOBILITY
Picture credits: iStockphoto LP
Executive Board Investor Presentation November 2018 2
Bringing Schaltbau back on track – experienced management team
Our common
objectives
• Return to profit
Dr Albrecht Köhler Thomas Dippold Dr Martin Kleinschmitt
CEO (since May 2018) CFO (since Jan 2017) CRO (since Aug 2017)
• Stick to stringent
cost management
• Freelance interim CEO / COO • CFO Faber-Castell AG (2014-16) • Partner at Noerr LLP and
(2016-18) • CFO Semikron International CEO Noerr Consulting AG
• Deputy CEO GAZ Group (2014-16) (2008-14) • Vice Chairman of the Board
• Managing Director Knorr Bremse • Head of Controlling SCHOTT AG SAF-HOLLAND S.A. • Secure financing
rolling stock bus. unit (2000-14) • Interim management of various SMEs
• Leading general management and
(2002-08)
as CFO/CRO (since 2001)
capabilities
operations roles at Dt. / Daimler Benz
• CFO Herlitz AG (1998-2000)
Aerospace (1989-1999)
Business and Market Overview
The Schaltbau Group at a glance Investor Presentation November 2018 4
Business overview Schaltbau Group
SCHALTBAU
HOLDING
Components (COM) Mobile Transportation Technology (MTT) Stationary Transport Technology (STT)
~25%* ~60%* ** ~15%*
SCHALTBAU BODE PINTSCH
PINTSCH
Connect Contact Control The Door Safety for Rail
DC technology for trains, e-mobility and Door systems for Level crossing systems,
next-generation energy, driver desk equipment trains, buses and automotive point heating systems, shunting equipment
* Segmental sales split based on FY 2018 forecast, pre consolidation, rounded to the nearest 5% multiple ** Bode Group represents ~45% of Schaltbau Group’s FY 2018 forecast sales
Key operating entities Investor Presentation November 2018 5
Snapshot of Schaltbau Subgroup
COM MTT STT
~25% of
Group sales*
SCHALTBAU
Connect Contact Control
Member of the Schaltbau Group
• High-performance DC switching-technology for trains, e-mobility and next-generation energy
• State-of-the-art driver desk equipment
• High share of international sales, broad customer distribution
• Has developed from a pure component supplier to an application specialist providing components, assembly and service
• Highly efficient operations
• Performed very well in 2017 and 9M 2018, high order intake with strong and sustainable margins
* FY 2018 forecast, pre consolidation, rounded to the nearest 5% multiple
Key operating entities Investor Presentation November 2018 6
Snapshot of Bode Subgroup
COM MTT STT
~45% of
Group sales* **
BODE
The Door
Member of the Schaltbau Group
• Established #3 player in an oligopolistic market, strong train door systems quality track record and best-in-class products
• Customer range has been expanded by leveraging train door system experience into bus and automotive applications
such as Deutsche Post DHL’s e-mobility vehicle StreetScooter
• Service organisation with high flexibility
• Polish subsidiary Rawag contributes train windows & interiors and provides additional production capacity
• Reorganisation of production processes well underway, will significant efficiency gains in sight
• Performance improved significantly in Q4 2017 and 9M 2018, good order intake
* FY 2018 forecast, pre consolidation, rounded to the nearest 5% multiple ** Number does not include contribution of Alte, Sepsa and Refurbishment to MTT segmental sales
Key operating entities Investor Presentation November 2018 7
Snapshot of Pintsch Subgroup
COM MTT STT
~15% of
Group sales*
PINTSCH
Safety for Rail
Member of the Schaltbau Group
• Established #3 player in various oligopolistic submarkets such as level crossings, shunting equipment and point heating systems
• Rail infrastructure market offers significant growth potential and major innovation opportunities related to digitalisation and
interconnection of field elements and systems (e. g., point diagnostics)
• Improvement of terms & conditions with large customers ongoing
• Stronger focus on key product portfolio
• Consolidation of 3 sites into one major operations centre with roadmap established
• Performance improved significantly in Q4 2017 and 9M 2018, order intake shows volatility
* FY 2018 forecast, pre consolidation, rounded to the nearest 5% multiple
Market and competitive environment Investor Presentation November 2018 8
Megatrends drive sustainable growth in global rail markets
Rolling stock Infrastructure & Rail control
Megatrends
Digitisation / Automation
Urbanisation
Components / Mobile Transportation Technology Stationary Transportation Technology
Emission reductions
Connectivity
SCHALTBAU BODE PINTSCH
PINTSCH
Connect Contact Control The Door Safety for Rail
Electrification / E-mobility
• Market growth:(1) ~2.6% • Market growth:(1) ~2.9%
Safety
• Market size:(2) ~€53bn • Market size:(2) ~€46bn
Globalisation / China
Regional market growth(1)(3)
• Western Europe: ~2.2% • Asia / Pacific: ~2.5% • NAFTA: ~3.1% • CIS: ~2.7%
Regulation and liberalisation • Eastern Europe: ~2.7% • Africa / ME: ~5.2% • Latin America: ~4.8%
Source: Unife, Roland Berger
(1) Average annual market growth from 2015-17 until 2021-23 over six years (2) Average annual market 2015-2017 (3) Total rail market: Rolling stock, infrastructure, rail control, services and turnkey management
Market and competitive environment Investor Presentation November 2018 9
Railway market with oligopolistic supplier structure in many segments
Overall rolling stock OEMs in the rail market Selected suppliers in the Schaltbau rolling stock market
/ (4)
1. +
2.
c. 15%
3. BODE SCHALTBAU
32% c. 5% The Door Connect Contact Control
Rolling stock c. 5% 4.
c. 5% 5.
49% €163bn(1) Other OEMs(2) < 5% 6.
Other(3)
7.
19% Market size ~€53bn
8.
Infrastructure
9.
10.
Source: UNIFE, Company information
(1) Total average annual rail market 2015-2017 (2) Incl. Hitachi Rail, Stadler, CAF, Pesa; ABB and Thales Transport not considered (mainly in infrastructure or control command and signalling technology)
(3) Services, rail control, turnkey management (4) Combination of GE Transportation and Wabtec businesses still subject to regulatory approvals and other customary closing conditions
Striving for Sustainable and Profitable Growth– Management Agenda 2017 & 9M 2018 Fulfilled
Key developments Investor Presentation November 2018 11
Management agenda 2017 & 9M 2018 fulfilled: higher financial flexibility for
ongoing restructuring activities and organic growth in core business areas
Stabilisation of Major cost reduction Strengthening of Stabilisation of
financial situation programmes initiated future competitiveness operative business
Divestiture of non-core Optimisation of production and Investments mainly into Sound order intake, revenue
industrial brakes business logistic processes mobility/logistics applications and EBIT development since
(Pintsch Bubenzer) effective 1 o “Fit for future” programs and further rolling stock Q3 2017
March 2018 at Bode and Rawag development Orders at hand at the end of
Two successful capital o “On time” program at Alte Digitisation: product 9M 2018 at decent level
increases in May 2017 and Strict focus on reduction of development to be increasingly
February 2018 personnel cost and material aligned towards customers
Reduction of short- and mid- expenses needs
term financial debt Reduction of complexity of Extended business model:
Group organisation, improved services for the entire lifecycle
steering and limitation of risks of rolling stock and commercial
vehicles
Restructuring agreement in STT
(Pintsch) for 2018 and 2019, Focus on local presence in
total savings of € 4 million international marketsKey developments Investor Presentation November 2018 12
Restructuring roadmap Schaltbau:
Major milestones successfully achieved – further road to go
2017 – 2018 2018 – 2019 2019 – 2020
Create financial headroom Achieve satisfactory debt level Ensure profitability on market level
Stabilise operational performance Selective investments Step up investments in market oppor-
tunities and digital business models
EXPLOIT GROWTH OPPORTUNITIES
REDUCE COMPLEXITY
REDUCE COSTS
REDUCE DEBT
2017 2018 2019 2020Key developments Investor Presentation November 2018 13
Comprehensive restructuring measures initiated
Operational restructuring measures
Selected measures Current status
Group Group-wide procurement optimization
Holding
SCHALTBAU • Personnel adjustments, restructuring of central functions (e.g. Controlling)
HOLDING
• SPII: Execution of order for >300 trains (Italian prototype),
expansion of services & after-sales business
Components
SCHALTBAU
Connect Contact Control
• Xi’an: Planned expansion of refurbishment & services business
• Bode: Restructuring of production concept & production control (‘state-of-the-art production’),
general purchase price reductions
Mobile
Transportation
• Rawag: Efficiency increase / reduction of personnel cost ratio,
Technology BODE raising value for the customer through expanded module offering
The Door
• Alte: Expansion of after sales business, new business with composites for interiors,
purchase price reduction & quality management
• Pintsch Bamag: Improvement of terms and conditions with large customers,
Stationary efficiency increase in production through lean management
Transportation
Technology PINTSCH
Safety for Rail
• Pintsch Tiefenbach: Relocation of production site Sprockhövel to Dinslaken (end of 2019)FY 2017
Financials – FY 2017 Investor Presentation November 2018 15
Sales and earnings targets 2017 (as adjusted over time) achieved
Sales EBIT
+1.5% vs. 2016 € 2.4 million before one-off effects
€ 516.5 million One-off effect of revaluation of Schaltbau Sepsa: € -24.2 million
Goodwill impairment Schaltbau Pintsch Bubenzer: € -1.1 million
Order intake € -23.0 million reported
+7.8% vs. 2016
€ 594.0 millionFinancials – FY 2017 Investor Presentation November 2018 16
Strong order intake in FY 2017 mainly due to contribution
from Mobile Transportation Technology
Order intake grows by 7.8% Order intake in € million
Mainly driven by Mobile Transportation Technology, also
800
impacted by a full-year contribution from Schaltbau Sepsa
(consolidated since 30 September 2016) and relocation of 700 594
the Refurbishment business (was part of Stationary 551
600
Transportation Technology before)
146
Very positive order intake development in Components 500 130
Significant decrease of order intake in Stationary 400 114
Transportation Technology due to lower order placements 158
300
in Germany as well as a more conservative approach on
international projects 200
333
263
Order book increases by 18.3% to € 508.3 million 100
(end of 2016: € 429.8 million)
0
2016
1 2017
2
Components Mobile Transportation Technology Stationary Transportation TechnologyFinancials – FY 2017 Investor Presentation November 2018 17
FY 2017 sales increase in line with management expectations
Sales up by 1.5% Sales in € million
Significant increase in second half of 2017 mainly due to 700
completion of major projects
Slight decrease in comparable sales of 4% mainly driven by 600
509 517
strong decline in industrial brakes volume (Pintsch
500
Bubenzer) and a lower volume in level crossing technology 131
138
Full-year contribution of Schaltbau Sepsa offsets organic 400
decline 121
300 149
200
Sales 2017 by market in %
23 265
35 Germany
Germany 100 222
Rest
Restof Europe
of Europe 0
Rest of World 2016
1 2017
2
Rest of world
42
Components Mobile Transportation Technology Stationary Transportation TechnologyFinancials – FY 2017 Investor Presentation November 2018 18
Extraordinary Schaltbau Sepsa revaluation impacts Group EBIT in 2017
EBITDA improved year-on-year EBIT and EBITDA in € million
Reported EBIT at € -23.0 million, EBIT margin at -4.4%
One-off effect of revaluation of Schaltbau Sepsa 20.1
amounting to € -24.2 million 16.4
25
Goodwill impairment Schaltbau Pintsch Bubenzer 20
+3.9%
+3.2%
amounting to € -1.1 million
15
Additional expenses for restructuring activities of
10
around € 8 million
5
-2.8%
0
2016 -4.4% 2017
-5
-10
-15
-14.5
-20
-25 EBIT EBITDA
-23.0Financials – FY 2017 Investor Presentation November 2018 19
Net result 2017 impacted by higher financing costs
Strong decline in Schaltbau Group’s net profit mainly driven Net profit in € million
by:
20,0
Decreased EBIT € -2.61 € -8.04
10,0 per per
Higher interest expenses due to higher interest margins as share share
well as higher drawing of existing credit lines 0,0
One-time effects related to refinancing activities -10,0
-12.0
-20,0 -15.8
-30,0
-40,0
-50,0
-49.6
-51.7
-60,0
2016 2017
Group net profit Schaltbau Shareholders9M 2018
Financials – 9M 2018 Investor Presentation November 2018 21
Order intake increases like-for-like
Strong order intake of € 420.2 million in 9M 2018 External order intake in € million**
Like-for-like, overall increase by 2.3% or € 8.9 million, 500 444
driven by Stationary Transportation Technology (Q2 2018 420
450 390
win of train formation unit project) and Components 381
400 109
Order intake in Mobile Transportation Technology declines 115
350
slightly, but still in line with expectations 109 115
300 85
70
250 45 60
Order book at end of 9M 2018 at € 515.5 million,
200
up 1.3% vs. € 509.0 million at end of 9M 2017
150
251 236 228
100 216
50
0
9M 2017 9M 2018 9M 2017 9M 2018
Reported Like-for-like*
Components Mobile Transportation Technology Stationary Transportation Technology
* Excluding Pintsch Bubenzer and Sepsa contributions: Pintsch Bubenzer was deconsolidated on 1 March 2018, Sepsa was classified as held for sale in November 2017
** Figures may not add up due to roundingFinancials – 9M 2018 Investor Presentation November 2018 22
Sales growth driven by increases in Mobile Transportation Technology
and Components
Sales grow by 3.6% vs. 9M 2017, an increase of € 13.1 million External sales in € million**
450
Significant volume increase in Mobile Transportation 376
Technology (in particular at Bode) 400 363
347
Strong sales volume development in Components 350 300
96 112
Sales in Stationary Transportation significantly below 300 112
prior year, mainly due to sale of Pintsch Bubenzer in 250 96
44
Q1 2018 77 36
200
42
150
45.6% of total sales in 9M 2018 generated in European
100 221 199
countries other than Germany, and 18.2% outside of Europe 190
162
50
0
9M 2017 9M 2018 9M 2017 9M 2018
Reported Like-for-like*
Components Mobile Transportation Technology Stationary Transportation Technology
* Excluding Pintsch Bubenzer and Sepsa contributions: Pintsch Bubenzer was deconsolidated on 1 March 2018, Sepsa was classified as held for sale in November 2017
** Figures may not add up due to roundingFinancials – 9M 2018 Investor Presentation November 2018 23
Significant EBIT improvement
9M 2018 EBIT at € -1.5 million 9M 2018 EBIT adjustments in € million
(€ -16.4 million in 9M 2017), 14
14000
adjusted by one-off effects at +2.3 12.3
12
12000
€ 12.3 million / 3.3% of sales +10.0
10
10000
Increase is driven by
8000
Higher sales volume, positive impact 8
from product mix, and productivity 6
6000
improvements in Components
4000
4 +2.6
Positive effects from restructuring
activities 2000
2 +0.6
€ 12.0 million Sepsa impairment in +1.6 +3.8
00
Q3 2017
-2
-2000
Earnings per share at € -1.39 -1.5
(9M 2017: € -6.01) -4000
-4 -7.1
Impair- Decon- Add. IFRS 5
ment solidation Restruc- Release effect Impair- Impair- EBIT before
EBIT LED tech- Pintsch turing of PSD Sepsa ment ment exceptional
reported nology Bubenzer expenses provisions real estate Alte Bode UK itemsStrategic Agenda
Investor Presentation November 2018 25
Strategy
Schaltbau Group management
• Decentralised income statement responsibility
• Standardised reporting from local management and review by Group Executive Board
• Coordination of intra-Group aspects via management committee
SCHALTBAU BODE PINTSCH
PINTSCH
Connect Contact Control The Door Safety for Rail
• State-of-the-art DC tech & driver desk equipment • State-of-the-art door systems for trains, buses and • State-of-the-art level crossing systems,
automotive, train interiors point heating systems, shunting equipment and
• Application of know-how from serving the rail
other rail infrastructure with focus on
industry to grow further in dynamic fields such as • Further integration of digital functionality such as
German market
e-mobility and next-gen energy passenger ticketing and entertainment & preven-
tive maintenance, ramp in after-sales business • Strong relationship with Deutsche Bahn as the
• Ongoing process differentiation: pick/configure/
key customer
design-to-order, based on volume and complexity • Standardisation of door drive modules, redesign of
• Expansion into North America, Russia, China, production processes and better utilisation of • Efficiency gains by ongoing restructuring and
maybe India, with efforts coordinated with other capacities available in Poland and Turkey consolidation of three Pintsch sites into one
Schaltbau Group entities where feasible; • Expansion into North America and Asian markets main location
centralised competence centres along with local with efforts coordinated with other Schaltbau • Focus on core products and selective
assembly and service Group entities where feasible exploitation of new business opportunities
High-margin cross-industry Efficient door system provider Sustainable high-quality
DC technology specialist in high-growth market rail infrastructure playerInvestor Presentation November 2018 26
Sales guidance 2018 confirmed
Sales guidance for 2018 with a range of € 480-500 million In € million
(without Sepsa and taking into account the sale of Pintsch 517
Bubenzer in Q1 2018) € 480-500 million
-41 490
Organic growth of around € 40 – 60 million expected for
FY 2018:
Strong growth in Mobile Transportation driven by Bode Group 52
-37
Positive sales outlook for Component business
Sales FY 2017 Pintsch Sepsa** Organic growth Sales guidance
Bubenzer* FY 2018
* Adjusted by FY 2017 and 01-02/2018 sales
** Adjusted by FY 2017 salesInvestor Presentation November 2018 27
Targets 2018 confirmed
Solid order book from stabilised order intake in 2017 serves Outlook (in € million) Guidance FY 2018* 2017
as stable basis for profitable growth
Order intake 500-520** 594.0
Initial positive effects from restructuring measures
implemented in the financial year 2017 expected to
Sales 480-500** 516.5
contribute to an improvement in EBIT margin:
Increase in profitability through optimized production processes Mobile Transportation Significant
265.3
and improved purchase conditions should lead to savings in Technology improvement
material and personnel expenses
Stationary Transportation
Non-operating special effects from extraordinary Technology
Significant decline 120.5
impairments arising out of restructuring measures or
disposal of subsidiaries will possibly continue to occur in Components Slight increase 130.7
2018
EBIT margin Around 3%** 0.5%***
* Compared to FY 2017
** Excluding Pintsch Bubenzer, Sepsa and one-offs
*** Excluding extraordinary itemsInvestor Presentation November 2018 28
Portfolio development 2018 vs. 2017
25 Schaltbau subgroup
Profitability in %
2017
Profitable growth 2018
15
2018
2017
5 Pintsch subgroup
2018
Profitability increase
2017
Bode subgroup
-5
Growth + profitability
-15
-20 -10 0 10 20 30
Growth in %
Bubbles show 2017/2018 E profitability and 2017/2018 E year-on-year revenue growth. Bubble size represents significance for Schaltbau, based on revenue share.
Green arrows represent expected development trend 2018 vs. 2017.Investor Presentation November 2018 29
Schaltbau Vision 2020
Operational excellence
Disposal of non-core business throughout the organization
2020
Overall increased share of service State-of-the-art product and service offering in
and international revenues terms of quality and innovation
Our clear goal is to focus Schaltbau Group on its strategic core competencies and to consistently increase profitability.
That is why we intend to dispose non-core business areas as well as those which are not sustainably profitable.
These alignments should result in reduced revenues and simultaneously increased profitability until 2020,
enabling Schaltbau to return to historical profitability levels and future growth.Backup Financial Figures FY 2017 and 9M 2018
Financials – FY 2017 Investor Presentation November 2018 31
Mobile Transportation Technology BODE
The Door
FY 2017 growth driven by consolidation effects
Order intake up € 70.2 million vs. 2016 Order intake and revenue in € million EBIT in € million
Positive development at rail door systems as well as 400 10
interiors for rail vehicles 5.2
350 333.4 6
Significant new orders, e. g. from Hitachi Rail Italy for deliv-
2
ery of 39 vehicles including options of up to 300 vehicles 300
263.2 265.3 -2
Sales growth of € 43.1 million vs. 2016 *
250 222.2 -6
Full-year contribution from Schaltbau Sepsa (+ € 19 million)
and reclassification of Schaltbau Refurbishment 200 -10
(+ € 12 million) -14
150
Organic business growth at Rawag and Alte +26.7% +19.4%
-18
100
EBIT margin of -10.0% vs. +2.3% in 2016 -22
Revaluation of Schaltbau Sepsa (€ 24.2 million) 50
-26
Negative operating contribution from Schaltbau Sepsa 0 -30
-26.4
Group (€ -8.7 million) and other foreign subsidiaries almost Order intake Revenue EBIT
compensated by positive margin at Bode and Rawag 2016 2017
* Operating EBIT 2017: € -2.2 million; effect from revaluation of Schaltbau Sepsa: € - 24.2 millionFinancials – FY 2017 Investor Presentation November 2018 32
Stationary Transportation Technology PINTSCH
Safety for Rail
Weak order intake and revenue development in FY 2017
Significantly lower order intake volume Order intake and revenue in € million EBIT in € million
Decline in new business with level crossing technology as 180 10
well as railway signal technology (axle counting and 157.8
160 149.3 5
shunting technology)
0
Sales decrease by € 28.8 million vs. 2016 140
120.5
Mainly driven by rail infrastructure products and brake 120 114.3 -5
-5.5
systems -10
100
Shift of Refurbishment business (€ 11.9 million) to MTT -15
80
EBIT margin of -4.6% (FY 2016: -18.8%) -20
Cost-cutting measures compensate negative volume effects 60 -27.6% -19.4%
-25
to just a small extent 40
-30
Impairment at Schaltbau Pintsch Bubenzer (€ -1.1 million) -28.1
20 -35
Provisions for contingent losses high in 2016 (€ 16.4 million)
0 -40
Order intake Revenue EBIT
2016 2017Financials – FY 2017 Investor Presentation November 2018 33
Components SCHALTBAU
Connect Contact Control
Strong business performance in FY 2017
Order intake clearly improved (€ +16.2 million) Order intake and revenue in € million EBIT in € million
Higher order intake volume for snap-action switches for rail 180 30
vehicles both in the new vehicles business and in after-
160
sales business 146.3
25
137.5
Positive development at SPII in Italy; stabilisation of 140 130.1 130.7 21.4
business in China despite investment shift from 120 20
locomotives and passenger coaches to metro systems; 17.2
North America below prior year due to project delays 100
15
80
Sales decrease of € 6.8 million vs. 2016
Significantly lower revenue at SPII partially offset by sales 60 +12.5% -4.9% 10 +24.4%
increases at Schaltbau GmbH 40
5 -28.1
EBIT margin improves to 16.4% (2016: 12.5%) 20
Moderate sales decrease overcompensated by positive
0 0
product mix effects and improved cost structure Order intake Revenue EBIT
2016 2017Financials – FY 2017 Investor Presentation November 2018 34
Slight decrease in Group assets in FY 2017 due to divestiture effects
Non-current assets € 40.0 million below prior year, reduction Assets in € million
of both tangible and intangible assets
600
Depreciation on Schaltbau Sepsa due to classification as
“assets held for sale” (€24.2 million) 500
459 452
Classification of Pintsch Bubenzer as “assets held for sale”
(€ 16 million) 400
Foundation of joint venture Zhejiang Yonggui Bode 264
300 297
Transportation Equipment in China; payment of initial
capital contribution
200
Current assets significantly higher (€ +32.9 million):
Classification of Schaltbau Sepsa and Schaltbau Pintsch 100 195
155
Bubenzer as “assets held for sale”
€ 15.6 million cash inflow from capital increase in May 0
End of12016 End of2 2017
2017 reported under other receivables and assets
Non-current CurrentFinancials – FY 2017 Investor Presentation November 2018 35
Equity & liabilities: negative group result impacts equity in FY 2017
Higher non-current liabilities due to restructuring of financial Liabilities in € million
debt: syndicated loan line amounting to € 100.0 million and
debenture stock classified as long-term liabilities 600
Current liabilities down to € 198.5 million due to the afore- 459 452
500
mentioned reclassifications; bridge financing of € 25.0
million and current account liabilities classified as short-term
400
Equity decreases by €36.5 million despite €15.5 million 199
241
capital increase, due to negative net group result; equity 300
ratio of 15.6% (end of 2016: 23.3%)
Net financial debt increases to €158.4 million (end of 2016: 200
€148.0 million) 111 183
100
Leverage (net financial debt/annual EBITDA) at 7.9 (2016:
107
9.1); mid-term goal: Further reduction of net financial debt 71
0
relative to EBITDA to reach a leverage figure around 3 End
End of
of 2017
End of12016 2 2017
In Q1 2018, the situation improved significantly, driven by
Equity Non-current Current
the sale of Pintsch Bubenzer and a major equity injectionFinancials – FY 2017 Investor Presentation November 2018 36
Positive operating cash flow in FY 2017
Positive operating cash flow (€ +10.5 million) reflects Cash flow 2017 in million EUR
stringent working capital management (operating cash flow
50
in FY 2016: € +25.8 million)
45
Cash outflow for investments increases vs. 2016 (€ -18.2 +10.5 -34.3
million), proceeds from capital increase deposited on escrow 40
account (€ 15.6 million) 35
31.2
Financing cash flow 2017 mainly reflects: 30 Thereof: 15.5 m. EUR
escrow account for debt
€ 15.5 million cash inflow from capital increase and € 4.1 25 redemption
million from new loans 20
€ 6.0 million repayment of loans and € 11.4 million cash 15 +5,7 -0,9
+12.2
outflow for interest payments 10
5
0
Cash CF op. CF invest CF fin. Currency Cash
EoFY 2016 EoFY 2017
Free cashflow= CF op.+CF invest.Financials – 9M 2018 Investor Presentation November 2018 37
Mobile Transportation Technology BODE
The Door
Sales growth driven by positive development at Bode Group
External order intake down € 15.1 million External order intake and sales in € million* EBIT in € million
Like-for-like decrease of roughly € 12 million, but still in line with 260
251.5
expectations 240 22.9 236.4
0,0
External sales growth of € 30.4 million 220
20.5 220.5
21.3 -2,0
Significant increase driven by Bode Group 200 190.1
-4,0
EBIT at € -16.0 million 180
27.5
160 -6,0
9M 2017 impacted by a € 12.0 million Sepsa impairment
140 -8,0
9M 2018 performance impacted by 120
228.6 +16.0% -10,0
Impairment of Alte and Bode UK (€12.3 million) 215.9
100 199.2
IFRS 5 effects from purchase of Sepsa real estate in Q3 2018 (€ 3.8 million) -12,0
80 162.6
Negative operating contribution from Alte (lower sales volume, additional 60
-14,0
-6.0%
temporary workers, warranty expenses, ramp-up costs)
40 -16,0
Further improvements in productivity expected in the coming 20 -18,0
-16.2 -16.0
quarters
0 -20,0
9M 2017 9M 2018 9M2017 9M 2018
Order intake Sales
Like-for-like Sepsa 9M 2017 9M 2018
* Figures may not add up and/or match exactly with figures consolidated on Group level, due to roundingFinancials – 9M 2018 Investor Presentation November 2018 38
Stationary Transportation Technology PINTSCH
Safety for Rail
Stabilisation and first improvements
External order intake declines by >15%, related to the sale of
External order intake and sales in € million* EBIT in € million
Pintsch Bubenzer
Like-for-like, external order intake is up >30%, largely due to winning 90 2,0
85.0
a major order for a train formation unit 80 77.5
+0.2
External sales decrease by >40%, mainly due to the disposal 70
70.0 0,0
of Pintsch Bubenzer 39.8 9.9
60 35.7
Sales like-for-like down by € 6.0 million
-2,0
Lower sales volume at Pintsch Bamag due to several customer push- 50 -17.6% 44.0
outs in rail infrastructure, mostly to be recovered until year-end
40 8.2
EBIT just above the base line -4,0
30 60.1
Improvement largely due to the release of provisions for onerous -43.2%
45.2
contracts for the PSD project in Brazil and cost reductions, set off in 20 41.8
35.8 -6,0
part by impairment on the LED technology business
10
Restructuring agreement with workers’ counsel, total savings of -7.0
€ 4.0 million for 2018 and 2019 0 -8,0
9M 2017 9M 2018 9M 2017 9M 2018
Further restructuring and PSD closing benefits will materialise in the Order intake Sales
next quarters Like-for-like Bubenzer 9M 2017 9M 2018
* Figures may not add up and/or match exactly with figures consolidated on Group level, due to roundingFinancials – 9M 2018 Investor Presentation November 2018 39
Components SCHALTBAU
Connect Contact Control
Ongoing strong operational performance
External order intake increases External order intake and sales in € million* EBIT in € million
External sales strongly improved by € 16.4 million 120 115.7 25
112.2
Ongoing high demand of connectors, snap-action switches and 108.6 22.4
contactors 95.8
100
20
EBIT improves to € 22.4 million
Positive development driven by high sales volume, favorable 80 15.9
product mix and productivity improvements 15
Strong EBIT level expected to be maintained throughout 2018 60
+17.1%
+6.5% 10
40
5
20
0 0
Order intake Sales EBIT
9M 2017 9M 2018
* Figures may not match exactly with figures consolidated on Group level, due to roundingFinancials – 9M 2018 Investor Presentation November 2018 40
Equity base substantially strengthened, net debt significantly reduced
Equity increases by € 31.8 million following the successful Restructuring of equity and net debt in € million
capital increase in February 2018;
equity ratio at 25.4% at the end of 9M 2018 120 180
158.4
(up from 15.6% at year-end 2017) 102.4 160
100
Reduction of net debt by € 46.7 million in 9M 2018 140
Repayment of € 25.0 million in bridge financing 80 120 111.7
70.6
Additional repayment of current account liabilities 100
Further reduction of net debt expected in Q4 2018 60
80
40 +45.1% 60 -29.5%
40
20
20
0 0
Equity Net debt
31/12/2017 30/09/2018 31/12/2017 30/09/2018Financials – 9M 2018 Investor Presentation November 2018 41
Cash flow in 9M 2018 is affected by sale of Pintsch Bubenzer,
capital increases and higher working capital
Positive free cash flow driven by In € million
€ 29.3 million cash inflow from sale of Pintsch Bubenzer
-29.8
€ 15.6 million release of funds from an escrow account Free cash flow
+7.4
Positive effects set off in part by higher working capital
Financing cash flow in 9M 2018 mainly reflects: +5.0
€ 46.5 million cash inflow from capital increase Cash flow from financing activities
-21.4
€ 70.5 million cash outflow due net repayment of loans
-25.8
Cash flow*
-14.0
9M 2017 9M 2018
* Total cash flow includes change in cash funds due to exchange rate fluctuationsFinancial calendar and
contact details
2019
• 2 April 2019 Annual Report 2018
• 30 April 2019 3M 2019 Interim Statement
• 31 July 2019 6M 2019 Interim Report
• 31 October 2019 9M 2019 Interim Statement
IR contact
Wolfgang Güssgen
Head of IR & CC
guessgen@schaltbau.de
T +49 89 93005-209
Schaltbau Holding AG
Hollerithstrasse 5
81829 Munich
Germany
Picture credits: iStockphoto LPAppendix Investor Presentation November 2018 43 Disclaimer This presentation contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of Schaltbau Holding AG and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those described herein due to factors affecting Schaltbau Holding AG such as, among other things, changes in the general economic and competitive environment, capital market risks, currency exchange rate fluctuations and competition from other companies, and changes in international and national laws and regulations, in particular with respect to tax laws and regulations. Schaltbau Holding AG does not assume any obligation to update any forward-looking statements. The information contained in this presentation is for background purposes only and does not purport to be full or complete. No reliance may be placed, for any purpose, on the information contained in this announcement or its accuracy or completeness. The information in this presentation is subject to change.
You can also read
