Financial Results Q3/2013

Transcription

1 Financial Results Q3/ October 31,

2 Strategy update 1

3 CEO Agenda Operational performance Special focus on supply chain management optimisation to reduce logistic costs, inventory of purchased components by implementation of state-of-the-art production tools Implementation of lean management principles to increase productivity significantly Further Growth by Product Innovation Generate further growth with new CO 2 -reducing product innovations (e.g. variable transmission oil pumps and map controlled oil-/vacuum pumps) Reorganisation of the product development process and enhancing the project management with focus on time to market and design to costs Brake Discs: development of further vehicle segments for composite brake discs Customers: expand customer portfolio in both business segments Internationalisation Allocate adequate resources for the globalisation projects (will be integrated in budget process) Define clear targets and responsibilities for the North American and Chinese projects Build up competitive supplier base Internationalisation will be financed by productivity gains 2

4 Globalisation targets Sales target in five years from now ( m) e 2018e Growth 12-13e CAGR 12-18e** NAFTA / Latin America Asia-Pacific Europe Total %* 11.3%** * Based on mid point of guidance ** CAGR 13e-18e 11.7% 3

5 CFO Agenda SAP SAP stabilisation concluded SAP optimisation, review and simplification of process flows in all departments and modules Controlling Enhancement of production controlling in the following areas: Implementation of shop floor KPIs Execution and monitoring of productivity roadmaps in all departments Execution of monthly business reviews with plant management teams Working Capital Management Close monitoring of receivables and overdues Increase of consignment stocks for suppliers Re-work of the stock range controlling and planning Internationalisation Support in implementing the internationalisation strategy Break down of strategic product and market objectives into individual measures and activities Support in implementing and monitoring the objectives 4

6 Financials 5

7 SHW AG pleasing Q3 results Highlights Q3/ Group sales: 92.6m (+12.7%) Adj. EBITDA: 11.1m (+27.1%) Adj. EBIT: 7.4m (+32.4%) Net income from continued operations: 4.9m (+38.0%) ROCE (LTM): 16.4% Free Cash flow: +1.2m Optimisation of SAP started Product launches proceeded consistently stable and on schedule Clearly outperforming European car market 6

8 Group Sales ( m) Sales by quarter ( m) % % % % M/ 9M/ EBITDA ( m) Q1 Q2 Q3 Q4 EBITDA by quarter ( m) 3.3% 17.1% 27.1% Adjustments EBITDA -31.9% % 10.6% M/ 9M/ Q1 Q2 Q3 Q4 Further growth acceleration in Q3 7

9 Group EBT ( m) EBT by quarter ( m) % % % % M/ 9M/ Q1 Q2 Q3 Q4 EAT ( m) EAT by quarter ( m) % % % % M/ 9M/ Q1 Q2 Q3 Q4 8

10 TOP 10 customers Sales by customer ( m) VW Daimler BMW AUDI Porsche Volvo Cars Ford M/ 9M/ ThyssenKrupp PSA Hilite Other SHW well positioned with German OEMs 9

11 Pumps & Engine Components Sales ( m) Sales by quarter ( m) % Powder Metallurgy +1.6% % % Truck & Off-Highway Passenger Car Other 9M/ 9M/ EBITDA ( m) Q1 Q2 Q3 Q4 EBITDA by quarter ( m) % % % % % 11.7% M/ 9M/ Q1 Q2 Q3 Q4 P&EC back on track 10

12 Brake Discs Sales ( m) Sales by quarter ( m) % Other Composite BD Ready-to-install BD Unprocessed BD -8.1% % % M/ 9M/ EBITDA ( m) Q1 Q2 Q3 Q4 EBITDA by quarter ( m) +48.4% % % % % 6.5% 9M/ 9M/ Q1 Q2 Q3 Q4 Brake Discs remain on the road to success 11

13 Capex - Depreciation Capex* ( m) 130.1% M/ 9M/ * Additions to tangible and intangible assets Q1 Q2 Q3 Q4 Depreciation ( m) Depreciation by quarter ( m) +12.1% : calculatory depreciation; : book depreciation 9M/ 9M/ Q1 Q2 Q3 Q4 High capex for future growth 12

14 Cash flow 5. ( m) Q3/ Q3/ 9M/ 9M/ Cash flow from operating activities Cash flow from investing activities Cash flow before financing activities (free cash flow) Other (esp. dividend payment) Change in net cash Again positive free cash flow despite high investments in Q3 13

15 Working Capital influenced by higher receivables & inventories Working Capital (% of sales) 16.1% 16.9% 15.5% 15.9% 11.9% 12.4% 14.3% 11.9% 13.6% 11.7% 13.3% Medium-term target 11% Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ 14

16 Sound financial profile Balance sheet as of 30 September, ( m) Balance sheet as of 31 December, ( m)* 202.1m 180.9m * Adjustment pursuant IAS 19 Current assets (50.5%) Equity (39.7%) Current assets (43.6%) Equity (50.9%) 25.7 Pensions (12.7%) Non-current assets (48.5%) Other long term liabilities (3.3%) Bank debt (10.4%) Other short term liabilities (34.0%) Non-current assets (45.6%) Pensions (14.3%) Other long term liabilities (3.4%) Other short term liabilities (31.4%) Cash (1.0%) 2.0 Cash (10.9%) 19.6 Assets Equity & Liabilites Assets Equity & Liabilites Equity ratio still around 40 percent 15

17 Market environment in Europe slowly brightening Light vehicle production (< 6 t) Europe (m units) Truck production (GVW > 6t) - Western Europe (units) 3.3% % 440, , , , , , m units CAGR VW Group % PSA Group % Renault-Nissan % BMW Group % Daimler Group % Ford Group % GM Group % units CAGR Mercedes-Benz , % MAN Group 63,155 59,155 57,193 62,767 68,734 73, % PACCAR 46,806 48,189 47,717 54,366 60,490 66, % IVECO Group 43,238 43,057 41,451 47,873 54,900 60, % Volvo 47,254 46,752 44,423 49,375 54,304 58, % Scania 42,744 47,572 45,732 49,875 54,000 57, % Renault 32,577 31,104 31,337 35,013 39,157 43, % Source: PwC Autofacts October Source: LMC Automotive Q3/ 16

18 Outlook Target : growing stronger than underlying European market European Union: -0.9% to 15.8 million light vehicles* North America: +5.0% to 16.2 million light vehicles* China: +10.7% to 18.5 million light vehicles* Numerous new product launches in H2, especially two variable oil-/vacuum pumps for new 3-cylinder engines of two renowned European OEMs Capex cash-effective: between 26m - 28m Group sales: 352m - 362m (previously: 330m - 345m) P&EC sales: 264m - 272m (previously: 240m - 255m) BD sales: 88m - 90m (previously: around 90m) Group EBITDA: : 35m - 38m (previous year level: 33.9m) *Source: PwC Autofacts October 17

19 Price per unit Further sales growth in 2014 expected Sales split - Pumps Passenger Cars* Sales split - Brake Discs* Gear box oil pumps Variable oil pumps Other Composite discs Unprocessed discs Oil-/vacuum pumps Fixed displacement pumps Ready-to-install discs Other 12.6% 13.9% 35.6% 34.6% 12.6% 13.9% 16.7% 17.6% 25.7% 10.9% 34.4% 11.5% 18.2% 22.0% 51.7% 52.2% 56.1% 56.8% 34.0% 31.5% 25.1% 22.6% 26.3% 20.1% 17.1% 11.8% 31.9% 28.7% 23.7% 22.4% 9.0% 3.8% 5.3% 3.5% 3.2% *Column height represents sales development Gearbox oil pumps and oil-/vacuum pumps as well as composite brake discs major growth drivers 18

20 Contact Investor Relations Michael Schickling Head of Investor Relations & Corporate Communications SHW AG Wilhelmstrasse Aalen-Wasseralfingen Telephone: +49 (0)

21 Disclaimer This document, which has been issued by SHW AG (the Company or SHW ), does not constitute an offer to sell, or the solicitation of an offer to subscribe for or buy, any shares in the Company, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto. The contents of this presentation are may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. Neither the Company nor any other party is under any duty to update or inform you of any changes to such information. In particular, it should be noted that financial information relating to the Company contained in this document has not been audited and in some cases is based on management information and estimates. This material is given in conjunction with an oral presentation and should not be taken out of context. Certain market data and financial and other figures (including percentages) in this document were rounded in accordance with commercial principles. Figures rounded may not in all cases add up to the stated totals or the statements made in the underlying sources. For the calculation of percentages used in the text, the actual figures, rather than the commercially rounded figures, were used. Accordingly, in some cases, the percentages provided in the text may deviate from percentages based on rounded figures. Certain statements in this presentation are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by applicable laws and regulations. You should not place undue reliance on forward-looking statements, which speak as only of the date of this presentation. Statements contained in this presentation regarding past trends or events should not be taken as a representation that such trends or events will continue in the future. 20