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Investor PresentationSchaltbau Holding AG
May 2018 THE SMART EVOLUTION OF MOBILITY
Picture credits: iStockphoto LP
May 2018Investor Presentation 2
Bringing Schaltbau back on track – experienced management team
Our common
objectives
• Return to profit
• Stick to stringent cost management
• Secure financing capabilities
Dr Albrecht Köhler
CEO (since 19 May 2018)
• Freelance interim CEO / COO
(2016-18)
• Deputy CEO GAZ Grp. (2014-16)
• Managing Director Knorr Bremse
rolling stock bus. unit (2000-10)
• Leading general management and
operations roles at Dt. / Daimler
Benz Aerospace (1989-1999)
Thomas Dippold
CFO (since Jan 2017)
• CFO Faber-Castell AG (2014-16)
• CFO Semikron International
(2008-14)
• Head of Controlling SCHOTT AG
(2002-08)
Dr Martin Kleinschmitt
CRO (since Aug 2017)
• Partner at Noerr LLP and
CEO Noerr Consulting AG
• Vice Chairman of the Board SAF-
HOLLAND S.A.
• Interim management of various
SMEs as CFO/CRO (since 2001)
• CFO Herlitz AG (1998-2000)
Executive Board
4
Business overview
Stationary Transportation TechnologyComponents
En
d m
ark
ets
Mobile Transportation Technology
Sele
cte
d
pro
du
cts
Seg
men
ts
Rolling Stock InfrastructureAutomotive
• Doors and boarding systems for trains, stations, buses and commercial vehicles
• Interior fittings, information, surveillance and communi-cation systems, master controllers, driver desk equipment and sanitary systems for rolling stock
• High- and low-voltage components for rolling stock, electric vehicles and other applications
• Master controllers and driver desk equipment
• Platform screen doors, point heating systems, level crossing systems, shunting equipment, signal technology and tunnel security lighting
• Industrial brakes for container cranes and wind turbines
Disposed
(2)
~52%(1) ~25%(1) ~23%(1)
(1) Source: Company information, segmental split based on FY 2017 financials (2) Put up for sale in November 2017
Investor Presentation
Industry
The Schaltbau Group at a glance May 2018
5
Snapshot of Schaltbau Connect Contact Control Group
Investor Presentation
• High share of international sales, broad customer distribution
• Performed very well in 2017 and Q1 2018, high order intake with strong and sustainable margins
• Highly efficient operations
• Has developed from a pure component supplier to an application specialist providing components, assembly and service
• Transfer of existing know how from rail applications into new markets such as switchgear for renewable energy power plants
Key p
rod
ucts
Su
bsid
iari
es
Connectors Switches Contactors Master controller
& driver desk
Brake control
Co
mm
en
ts
c. 25% of
Group sales(1)
Key operating entities May 2018
(1) FY 2018 forecast, pre consolidation
6
Snapshot on Schaltbau Bode Group
Investor Presentation
• Established #3 player in an oligopolistic market, strong train door systems quality track record
• Performance improved significantly in Q4 2017 and Q1 2018, strong order intake
• Largely inefficient operations with restructuring roadmap established
• Service organisation with high flexibility
• Has expanded customer range by leveraging train door system experience into bus and automotive applications such as Deutsche Post DHL’s e-
mobility vehicle StreetScooter
Key p
rod
ucts
Su
bsid
iari
es
Co
mm
en
ts
Rail door systems Interiors
c. 50% of
Group sales(1)
Key operating entities May 2018
(1) FY 2018 forecast, pre consolidation
c. 17% of
Group sales(1)
7
Snapshot of Pintsch Bamag Group
Investor Presentation
• Established top 3 player in various oligopolistic submarkets, some of which are quite small though
(e. g., conveyor technology for hump yards, platform screen doors); also, currently Pintsch Bamag‘s solutions lack technological leadership, with
significant investments necessary to maintain long-term competitiveness
• Performance improved significantly in Q4 2017 and Q1 2018, order intake shows volatility
• Partially inefficient operations with restructuring roadmap established, improvement of terms & conditions with large customers ongoing
• 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)
Key p
rod
ucts
Su
bsid
iari
es
Level crossing Marshalling yards Axle counting Point heating
Co
mm
en
ts
Key operating entities May 2018
(1) FY 2018 forecast, pre consolidation
Megatrends drive sustainable growth in global rail markets
Market and competitive environment 8
Megatrends
Digitisation / Automation
Urbanisation
Emission reductions
Connectivity
Electrification / e-mobility
Safety
Globalisation / China
Regulation and Liberalisation
Vehicles
• All common railway vehicles
MobileTransportation Technology / Components
Infrastructure & Rail Control
• Railway crossings, rail control and signal technology for tracks, trains and control centers
Stationary Transportation Technology Services
• Maintenance incl. spare parts and renovation
Regional expected market growth(1)(2)
• Western Europe: ~3.0% • Asia / Pacific: ~2.6% • NAFTA: ~2.2% • CIS: ~1.1%• Eastern Europe: ~3.1% • Africa / ME: ~2.3% • Latin America: ~1.8%
Source: Unife, Roland Berger(1) Average annual market growth from 2013-15 until 2019-21 over six years (services for rail control not considered)(2) Vehicles, rail control and services; infrastructure and services for rail control not considered
• Market growth(1): ~1.9%
• Market size: ~€60bn
• Market growth(1): ~2.8%
• Market size: ~€52bn
• Market growth(1): ~2.8%
• Market size: ~€73bn
May 2018Investor Presentation
Railway market with oligopolistic supplier structure in many segments
Investor Presentation 9
Source: Company information
(1) Revenue 2015; (2) Incl. Hitachi Rail, Stadler, CAF, Pesa. ABB and Thales Transport not considered (mainly in infrastructure or control command and signalling technology); (3) Pre Wabtec takeover
Overall rolling stock OEMs in the market Selected suppliers in the Schaltbau railway market
Other OEM(2)
Other
€158bn(1)
3.
4.
5.
6.
7.
8.
9.
10.
(3)
/
1.
2.
14%
5%
4%
4%
3%
70%
Market and competitive environment May 2018
11
Management agenda 2017 & Q1 2018 fulfilled: higher financial flexibility for ongoing restructuring activities and organic growth in core business areas
Key developments
Strengthening of future competitiveness
Stabilisation of operative business
Stabilisation of financial situation
Major cost reduction programmes initiated
Investments mainly into mobility/logistics applications and further rolling stock development
Digitisation: product development to be increasingly aligned towards customers needs
Extended business model: services for the entire lifecycle of rolling stock and commercial vehicles
Focus on local presence in international markets
Strong order intake, revenue and EBIT development since Q3 2017
Orders at hand at the end of Q1 2018 near record level achieved at year-end 2017
Divestiture of non-core industrial brakes business (Pintsch Bubenzer) effective 1 March 2018
Two successful capital increases in May 2017 and February 2018
Reduction of short- and mid-term financial debt
Optimisation of production and logistic processes
Strict focus on reduction of personnel cost and material expenses by improving purchasing conditions
Reduction of complexity of Group organisation, improved steering and limitation of risks
Restructuring agreement in Stationary Transport Technology for 2018 and 2019, total savings of € 4 million
Investor Presentation May 2018
12
Sales and earnings targets 2017 (as adjusted over time) achieved
Financials – FY 2017
Order intake+7.8% vs. 2016
€ 594.0 million
Sales+1.5% vs. 2016
€ 516.5 million
EBIT€ 2.4 million before one-off effects
One-off effect of revaluation of Schaltbau Sepsa: € -24.2 million
Goodwill impairment Schaltbau Pintsch Bubenzer: € -1.1 million
€ -23.0 million reported
Investor Presentation May 2018
Order intake grows by 7.8%
Mainly driven by Mobile Transportation Technology, also impacted by a full-year contribution from Schaltbau Sepsa (consolidated since 30 September 2016) and relocation of the Refurbishment business (was part of Stationary Transportation Technology before)
Very positive order intake development in Components
Significant decrease of order intake in Stationary Transportation Technology due to lower order placements in Germany as well as a more conservative approach on international projects
Order book increases by 18.3% to € 508.3 million (end of 2016: € 429.8 million)
Strong order intake in FY 2017 mainly due to contribution from Mobile Transportation Technology
Financials – FY 2017
263333
158114
130146
0
100
200
300
400
500
600
700
800
1 2
551594
2016 2017
13
Order intake in € million
Mobile Transportation Technology Stationary Transportation Technology Components
Investor Presentation May 2018
35
42
23Sales 2017 by market in %
Germany
Rest of Europe
Rest of World
222265
149121
138 131
0
100
200
300
400
500
600
700
1 2
Sales up by 1.5%
Significant increase in second half of 2017 mainly due to completion of major projects
Slight decrease in comparable sales of 4% mainly driven by strong decline in industrial brakes volume (Pintsch Bubenzer) and a lower volume in level crossing technology
Full-year contribution of Schaltbau Sepsa offsets organic decline
FY 2017 sales increase in line with management expectations
Financials – FY 2017
509 517
2016 2017
14
Sales in € million
Mobile Transportation Technology Stationary Transportation Technology Components
Germany
Rest of Europe
Rest of World
Investor Presentation May 2018
-14.5
-25
-20
-15
-10
-5
0
5
10
15
20
25
EBIT EBITDA
EBITDA improved year-on-year
Reported EBIT at € -23.0 million, EBIT margin at -4.4%
One-off effect of revaluation of Schaltbau Sepsa amounting to € -24.2 million
Goodwill impairment Schaltbau Pintsch Bubenzer amounting to € -1.1 million
Additional expenses for restructuring activities of around € 8 million
Extraordinary Schaltbau Sepsa revaluation impacts Group EBIT in 2017
Financials – FY 2017
-2.8%
+3.9%
2016 2017
15
EBIT and EBITDA in € million
-4.4%
+3.2%
16.420.1
-23.0
Investor Presentation May 2018
-12.0
-49.6
-15.8
-51.7-60,0
-50,0
-40,0
-30,0
-20,0
-10,0
0,0
10,0
20,0
Group net profit Schaltbau Shareholders
Strong decline in Schaltbau Group’s net profit mainly driven by:
Decreased EBIT
Higher interest expenses due to higher interest margins as well as higher drawing of existing credit lines
One-time effects related to refinancing activities
Net result 2017 impacted by higher financing costs
Financials – FY 2017
€ -2.61 per
share
€ -8.04 per
share
2016 2017
16
Net profit in € million
Investor Presentation May 2018
Reduction in order intake by 12.6%, € 21.6 million
Strong performance in Mobile Transportation Technology; Q1 2017 order intake was significantly impacted by extraordinary order intakes at Schaltbau Bode
Order intake development in Components and Stationary Transportation Technology remains solid
Order book at a high level of € 508.0 million (end of 2017: € 508.3 million)
Q1 2018 order intake remains at a high level
Financials – Q1 2018
10381
27
28
41
40
0
50
100
150
200
1 2
171
149
Q1 2017 Q1 2018
17
Order intake in € million
Mobile Transportation Technology Stationary Transportation Technology Components
Investor Presentation May 2018
59 5171 64
23
10
179
29
29
37
37
0
50
100
150
200
Sales grow by 12.3% vs. Q1 2017, an increase of € 13.6 million in absolute terms
Significant volume increase in Mobile Transportation Technology (in particular at Schaltbau Bode)
Strong sales volume development in Components
Sales in Stationary Transportation below prior year, sales like-for-like slightly below Q1 2017
46.4% of total sales in Q1 2018 were generated in European countries other than Germany, and 20.1% outside of Europe
Sales growth in Q1 2018 driven by increases in Mobile Transportation Technology and Components
Financials – Q1 2018
111
124
18
Sales in € million
Mobile Transportation Technology Stationary Transportation Technology Components
Q1 2017like-for-like*
Q1 2018Q1 2017 Q1 2018like-for-like*
90
110
Investor Presentation May 2018
* Excluding Pintsch Bubenzer and Sepsa
-8.5
2.0
-4.7
1.9
-15
-10
-5
0
5
10
EBIT EBIT like-for-like
EBIT increases by € 10.5 million to € 2.0 million; EBIT margin at 1.6%
Primarily driven by higher sales volume vs Q1 2017 and a positive impact from favorable product mix in Components
Comparable EBIT up by € 6.6 million
Earnings per share at € -0.46 (Q1 2017: € -2.00)
Significant EBIT improvement in Q1 2018
Financials – Q1 2018 19
EBIT in € million
Q1 2017 Q1 2018
EBIT margin -7.7%
EBIT margin1.6%
EBITmargin like-for-like*
-5.2%
EBIT margin like-for-like*
1.7%
Investor Presentation May 2018
* Excluding Pintsch Bubenzer and Sepsa
Restructuring roadmap Schaltbau: Major milestones successfully achieved – further road to go
Create financial headroom
Stabilize operational performance
Achieve satisfactory debt level
Selective investments
Ensure profitability on market level
Step up investments in market opportunities and digital business models
2017 2018 2019 2020
REDUCE DEBT
REDUCE COSTS
EXPLOIT GROWTH OPPORTUNITIES
REDUCE COMPLEXITY
2018 – 2019 2019 – 20202017 – 2018
Priorities until 2020 20
Investor Presentation May 2018
21
Comprehensive restructuring measures initiated
Investor Presentation
• Expansion of after sales business, new business with composites for interiors
• Purchase price reduction & quality management
• Restructuring of production concept & production control (‘state-of-the-art production’)
• General purchase price reductions
• Efficiency increase / reduction of personnel cost ratio
• Raising value for the customer through expanded module offering
• Personnel adjustments, restructuring of central functions (e.g. Controlling)
• Execution of order for >300 trains (Italian prototype)
• Expansion of services & after-sales business
• Relocation of production site Sprockhövel to Dinslaken (end of 2019)
• Improvement of terms and conditions with large customers
• Efficiency increase in production through lean management
Operational restructuring measures
Subsidiary Selected measures Current status
Mobile
Transportation
Technology
Components
Stationary
Transportation
Technology
Holding
• Planned expansion of refurbishment & services business
Group-wide procurement optimizationGroup
Restructuring in detail May 2018
Goals of Schaltbau Group
Investor Presentation 23
Maintain a leading market position
Focus on profitable sustainable business activities
Create new business opportunities via collaboration between product areas and business segments
1
2
4
5 Increase customer focus and strengthen client relationships
Implement restructuring concept to increase profitability3
Sustainable and
profitable growth
May 2018Strategic agenda
Main pillars of Schaltbau Group strategic agenda
Investor Presentation 24
Technical
innovation, quality
and
system
integration
Operational
excellence
(performance
culture)
Comprehensive
market and
customer handling
(customer focus)
Systematic life-
cycle business
models incl. After
Sales / Service
Internationalisation
“Think global /
Act local”
“Sustainable and profitable growth”
Solid financing to enable strategic and operational flexibility
Corporate culture und governance / Qualified employees / Ready-for-change organisational culture
May 2018Strategic agenda
Strategic positioning going forward
Investor Presentation 25
5
OE
Ms
• Decentralised entities with enhanced management/leadership structure (SMC)
• Greater transparency, more standardised coordination throughout the GroupManagement principles
• DACH and rest of Europe as core
markets (c. 70% of revenue)
• Representation in China via several JVs
and customer relations of German
subsidiaries
(c. 17% of revenue)
• Increasing importance of the US
• Regional production and R&D activities
to react to market changes and meet
increasing local content requirements
Europe as core market with additional bases in China and USA
1 Regions
• Interconnected (digital) products which communicate with each other
• Common communication standard for all solutions as prerequisite towards the development of „smart products“
• Leverage product know-how / applications to new business areas (e.g. intelligent door systems for automotive division)
Supplier with digital product portfolio
2 Products
• Expansion of business with railway and automotive OEMs in Mobile Transportation Technology
• Maintain strong relationship with Deutsche Bahn in infrastructure business
• Customer relations exist on various levels as well as with different companies of the Group – coordination / development under Key Account Management
Focus on railway and automotive industry
3 Customers
• Continuous efficiency improvements along the entire value chain
• Targeted production optimisation through implementation of lean production approaches
• Further efficiency advantages through consolidation of productions
Achieve operational excellence throughout the value chain
4 Operations
May 2018Strategic agenda
Sales guidance 2018
Guidance
Sales Guidance for 2018 with a range of € 480-500 million (without Sepsa and taking into account sale of Pintsch Bubenzer in February 2018)
Organic Growth of around € 40 – 60 million expected for FY 2018:
Strong growth in Mobile Transportation driven by Schaltbau Bode Group
Positive sales outlook for Component business
26
52
490
517
Pintsch Bubenzer*
Sales FY 2017
-41
Sales guidanceFY 2018
-37
Sepsa** Organic growth
in € million
€ 480-500 million
* Adjusted by FY 2017 and 01-02/2018 sales** Adjusted by FY 2017 sales
Investor Presentation May 2018
Outlook (in € million) Guidance FY 2018* 2017
Order intake 500-520** 594.0
Sales 480-500** 516.5
Mobile Transportation Technology
Significant improvement
265.3
Stationary Transportation Technology
Significant decline 120.5
Components Slight increase 130.7
EBIT margin Around 3%** 0.5%***
Targets 2018
Guidance
* Compared to FY 2017** Excluding Pintsch Bubenzer and Sepsa*** Excluding extraordinary items
Solid order book from stabilised order intake in 2017 serves as stable basis for profitable growth
Initial positive effects from restructuring measures implemented in the financial year 2017 expected to contribute to an improvement in EBIT margin:
Increase in profitability through optimized production processes and improved purchase conditions should lead to a decline in material and personnel expenses
Non-operating special effects from extraordinary impairments arising out of restructuring measures or disposal of subsidiaries will possibly continue to occur in 2018
27Investor Presentation May 2018
Investor Presentation 28
Schaltbau Vision 2020
Operational excellence
throughout the organizationDisposal of non-core business
State-of-the-art product and service
offering in terms of quality and innovation
Overall increased share of service and
international revenues
2020
“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.”
May 2018
Order intake up € 70.2 million vs. 2016
Positive development at rail door systems as well as interiors for rail vehicles
Significant new orders, e. g. from Hitachi Rail Italy for deliv-ery of 39 vehicles including options of up to 300 vehicles
Sales growth of € 43.1 million vs. 2016
Full-year contribution from Schaltbau Sepsa (+ € 19 million) and reclassification of Schaltbau Refurbishment (+ € 12 million)
Organic business growth at Rawag and Alte
EBIT margin of -10.0% vs. +2.3% in 2016
Revaluation of Schaltbau Sepsa (€ 24.2 million)
Negative operating contribution from Schaltbau Sepsa Group (€ -8.7 million) and other foreign subsidiaries almost compensated by positive margin at Bode and Rawag
Mobile Transportation Technology: FY 2017 growth driven by consolidation effects
Financials – FY 2017
263.2
222.2
333.4
265.3
0
50
100
150
200
250
300
350
400
Order intake Revenue
2016 2017
5.2
-30
-26
-22
-18
-14
-10
-6
-2
2
6
10
EBIT
-26.4
+26.7% +19.4%
30
Order intake and revenue in € million EBIT in € million
*
* Operating EBIT 2017: € -2.2 million; effect from revaluation of Schaltbau Sepsa: € - 24.2 million
Investor Presentation May 2018
Significantly lower order intake volume
Decline in new business with level crossing technology as well as railway signal technology (axle counting and shunting technology)
Sales decrease by € 28.8 million vs. 2016
Mainly driven by rail infrastructure products and brake systems
Shift of Refurbishment business (€ 11.9 million) to MTT
EBIT margin of -4.6% (FY 2016: -18.8%)
Cost-cutting measures compensate negative volume effects to just a small extent
Impairment at Schaltbau Pintsch Bubenzer (€ -1.1 million)
Provisions for contingent losses high in 2016 (€ 16.4 million)
Stationary Transportation Technology: Weak order intake and revenue development in FY 2017
Financials – FY 2017
157.8149.3
114.3120.5
0
20
40
60
80
100
120
140
160
180
Order intake Revenue
2016 2017
-27.6% -19.4%
31
-28.1
-5.5
-40
-35
-30
-25
-20
-15
-10
-5
0
5
10
EBIT
Order intake and revenue in € million EBIT in € million
Investor Presentation May 2018
Order intake clearly improved (€ +16.2 million)
Higher order intake volume for snap-action switches for rail vehicles both in the new vehicles business and in after-sales business
Positive development at SPII in Italy; stabilisation of business in China despite investment shift from locomotives and passenger coaches to metro systems; North America below prior year due to project delays
Sales decrease of € 6.8 million vs. 2016
Significantly lower revenue at SPII partially offset by sales increases at Schaltbau GmbH
EBIT margin improves to 16.4% (2016: 12.5%)
Moderate sales decrease overcompensated by positive product mix effects and improved cost structure
Components: Strong business performance in FY 2017
Financials – FY 2017
130.1137.5
146.3
130.7
0
20
40
60
80
100
120
140
160
180
Order intake Revenue
2016 2017
+12.5% -4.9%
32
-28.1
17.2
21.4
0
5
10
15
20
25
30
EBIT
Order intake and revenue in € million EBIT in € million
+24.4%
Investor Presentation May 2018
Non-current assets € 40.0 million below prior year, reduction of both tangible and intangible assets
Depreciation on Schaltbau Sepsa due to classification as “assets held for sale” (€24.2 million)
Classification of Pintsch Bubenzer as “assets held for sale” (€ 16 million)
Foundation of joint venture Zhejiang Yonggui Bode Transportation Equipment in China; payment of initial capital contribution
Current assets significantly higher (€ +32.9 million):
Classification of Schaltbau Sepsa and Schaltbau Pintsch Bubenzer as “assets held for sale”
€ 15.6 million cash inflow from capital increase in May 2017 reported under other receivables and assets
Slight decrease in Group assets in FY 2017 due to divestiture effects
Financials – FY 2017
195155
264297
0
100
200
300
400
500
600
1 2
Non-current Current
459 452
33
Assets in € million
End of 2016 End of 2017
Investor Presentation May 2018
Higher non-current liabilities due to restructuring of financial debt: syndicated loan line amounting to € 100.0 million and debenture stock classified as long-term liabilities
Current liabilities down to € 198.5 million due to the afore-mentioned reclassifications; bridge financing of € 25.0 million and current account liabilities classified as short-term
Equity decreases by €36.5 million despite €15.5 million capital increase, due to negative net group result; equity ratio of 15.6% (end of 2016: 23.3%)
Net financial debt increases to €158.4 million (end of 2016: €148.0 million)
Leverage (net financial debt/annual EBITDA) at 7.9 (2016: 9.1); mid-term goal: Further reduction of net financial debt relative to EBITDA to reach a leverage figure around 3
In Q1 2018, the situation improved significantly, driven by the sale of Pintsch Bubenzer and a major equity injection
Equity & liabilities: negative group result impacts equity in FY 2017
Financials – FY 2017
10771
111 183
241 199
0
100
200
300
400
500
600
1 2
Equity Non-current Current
End of 2016End of 2017
34
459 452
Liabilities in € million
End of 2017
Investor Presentation May 2018
0
5
10
15
20
25
30
35
40
45
50
Cash flow 2017 in million EUR
Thereof: 15.5 m. EUR escrow account for debt redemption
CF op. CF invest CF fin. Currency Cash EoFY 2017
Cash EoFY 2016
Positive operating cash flow (€ +10.5 million) reflects stringent working capital management (operating cash flow in FY 2016: € +25.8 million)
Cash outflow for investments increases vs. 2016 (€ -18.2 million), proceeds from capital increase deposited on escrow account (€ 15.6 million)
Financing cash flow 2017 mainly reflects:
€ 15.5 million cash inflow from capital increase and € 4.1 million from new loans
€ 6.0 million repayment of loans and € 11.4 million cash outflow for interest payments
Positive operating cash flow in FY 2017
Financials – FY 2017 35
Free cashflow= CF op.+CF invest.
+10.5
31.2
+12.2
-34.3
+5,7 -0,9
Investor Presentation May 2018
Order intake down € 21.4 million, but still above expectations
Prior year’s figure includes significant major orders, e.g. for Schaltbau Bode (Siemens and Hitachi)
Positive development at Schaltbau Rawag
Sales growth of € 12.3 million
Significant increase driven by Schaltbau Bode group
EBIT at € -0.3 million
EBIT performance significantly improved
Q1 2018 performance impacted by negative operating contribution from Schaltbau Alte (additional temporary workers, warranty expenses and ramp-up costs)
Further improvements in productivity expected in the coming quarters
Mobile Transportation Technology: Q1 2018 sales growth driven by positive development at Schaltbau Bode
36
-4.7
-0.7-0.3 -0.3
-6,0
-5,5
-5,0
-4,5
-4,0
-3,5
-3,0
-2,5
-2,0
-1,5
-1,0
-0,5
0,0
0,5
1,0
Q1 2017 Q1 2018
102.9
81.5
0
20
40
60
80
100
120
Order intake
Q1 2017 Q1 2018
-20.8%
Order intake and sales in € million EBIT in € million
51.0
65.0
7.4
5.7
Q1 2017 Q1 2018
58.4
70.7
Sepsalike-for-like*
EBIT EBIT like-for-like*
Sales
Financials – Q1 2018 Investor Presentation May 2018
* Excluding Pintsch Bubenzer and Sepsa
Order intake stable
Sales decrease by € 6.3 million mainly driven by Pintsch Bubenzer sales; sales like-for-like down by € 1.3 million
Lower sales volume at Pintsch Bamag due to push-outs in rail infrastructure products (PSD in Brazil, Denmark)
EBIT remains on a negative level
Negotiations with workers’ counsel on restructuring agreement with a positive outcome, total savings of 4.0 million EUR for 2018 and 2019
Further restructuring benefits will materialize in the quarters to come, estimated EBIT level for FY 2018 significantly favorable in comparison to FY 2017
Stationary Transportation Technology: Stabilisation and first improvements in Q1 2018
37
27.3 27.7
0
5
10
15
20
25
30
Order intake
Q1 2017 Q1 2018
+1.5%
9.98.6
13.2
8.2
23.1
16.8
Order intake and sales in € million
-3.5 -3.7-3.5 -3.6
-6,0-5,5-5,0-4,5-4,0-3,5-3,0-2,5-2,0-1,5-1,0-0,50,00,51,01,52,02,5
Q1 2017 Q1 2018
EBIT in € million
EBIT EBIT like-for-like*Q1 2017 Q1 2018
Bubenzerlike-for-like*
Sales
Financials – Q1 2018 Investor Presentation May 2018
* Excluding Pintsch Bubenzer and Sepsa
Order intake remains on a high level; book-to-bill at 1.10
Sales strongly improved by € 7.7 million
Ongoing high demand of connectors, snap-action switches and contactors
High order book indicates positive sales level for fiscal year 2018
EBIT improves to € 8.3 million
EBIT exceeds expectations; strong development driven by high sales volume and favorable product mix
Strong EBIT level expected to be maintained throughout 2018
Components: Ongoing strong operational performance in Q1 2018
40.4
29.0
40.4
36.7
0
5
10
15
20
25
30
35
40
45
50
Order intake Sales
Q1 2017 Q1 2018
+26.6%
38
Order intake and sales in € million EBIT in € million
3.5
8.3
0
5
10
EBIT
Financials – Q1 2018 Investor Presentation May 2018
Equity increases by € 40.1 million following the successful completion of the capital increase in February 2018 and a significantly improved net group result; equity ratio at 26.9% at the end of Q1 2018 (up from 15.6% at year-end 2017)
Reduction of net debt by € 54.3 million in Q1 2018
Repayment of € 25.0 million in bridge financing as well as repayment of deferred loan and interest liabilities
Additional repayment of current account liabilities
Equity base strengthened substantially in Q1 2018, net debt reduced significantly
39
Restructuring of equity and net debt in € million
70.6
110.7
0
20
40
60
80
100
120
Equity
31/12/2017 31/03/2018
+56,8%
158.4
104.1
0
20
40
60
80
100
120
140
160
180
Net debt
31/12/2017 31/03/2018
-34,3%
Financials – Q1 2018 Investor Presentation May 2018
Increase in working capital is mainly driven by higher inventories
Change in cash outflow for investments relates mainly to the payments received from the sale of Pintsch Bubenzer as well as cash receipts from escrow account
Financing cash flow in Q1 2018 mainly reflects:
€ 46.6 million cash inflow from capital increase
€ 66.0 million cash outflow due repayment of loans
Cash flow in Q1 2018 is affected by sale of Pintsch Bubenzer, capital increases and higher inventories
40
-9.6
6.6
-2.9
28.3
14.0
-22.2
-8.2
4.0
Free cash flow
Cash flow from financing
Cash flow
Liquid funds (at period-end)
2017 Q1 2018 Q1
in € million
Financials – Q1 2018 Investor Presentation May 2018
Schaltbau Holding AGHollerithstrasse 581829 MunichGermany
IR contactWolfgang GüssgenHead of IR & [email protected] +49 89 93005-209
7 June
8 August
8 November
Financial calendar and contact details
2018
Annual General Meeting
of Shareholders
Interim Report H1 2018
Quarterly Statement 9M 2018
Picture credits: iStockphoto LP
Disclaimer
Investor Presentation 42
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.
May 2018Appendix