Full Year Results 2013

Transcription

1 Full Year Results 17 March 2014

2 Senior management team Dr. Thomas Buchholz Sascha Rosengart Andreas Rydzewski CEO Pumps & Engine Components CFO Member of Management Board Brake Discs With SHW since 24 years experience in the automotive supplier industry 2008 TI Automotive Member of the Management Board Mahle Member of the Management Board With SHW since 11 years experience in the automotive supplier industry 2010 Hengst Automotive CFO and Member of the Management Board Tower Automotive Finance Director Assembly Division Europe With SHW since years experience in the automotive supplier industry Consultant ThyssenKrupp Drauz Nothelfer CEO and Member of the Management Board Thyssen Umformtechnik Member of the Management Board Track record in process optimisation and development of new markets 1

3 Cutting-edge technology for environmental friendly mobility Pumps & Engine Components Origin in 1365 Total sales : 366m Pumps & Engine Components 75.0% Brake Discs 25.0% Key product strength: high fuel saving potential Two plants in Germany, one plant in Brazil 100% subsidiaries in Brazil, China and Canada US subsidiary in course of incorporation Number of employees: approx. 680 Long-standing relationships as Tier 1 supplier Brake Discs Focus on customised products for CO 2 -reduction Product advantage: weight reduction Casting and machining in Germany Number of employees: approx. 370 Operational success story with strong financial results 2

4 Highlights SAP Go-Live on 1 January Management changes in May / August New product launches proceeded consistently stable and on schedule Foundation of SHW Pumps & Engine Components Inc., Toronto / Canada Composite brake discs production capacity doubled Market leadership for variable oil/vacuum pumps (tandem pumps) extended after winning another contract worth 24m annual sales 100 percent free float as of 5 November after successful placement of the remaining SHW shares held by Nordwind Capital to institutional investors SDAX inclusion with effect from 23 December 3

5 Sales and EBITDA targets reached m Change in % Group sales % Adj. EBITDA % Depreciation (excl. PPA) % Adj. EBIT % Net profit from continued operations % EPS (in ) % DPS (in ) Working Capital Ratio (%) Capex % Free cash flow from continued operations Net Debt ROCE (%) No. of employees (average) % 1 Proposal to Shareholders Meeting on 9 May Additions to tangible and intangible assets; : 30.0m on a cash basis 3 Without cash received from the disposal of STT / cash flow from operating / investment activities from discontinued operations: 42.9m / 2.6m / - 1.9m Clearly outperforming European car market 4

6 Group Sales ( m) Sales by quarter ( m) % % % % % Adj. EBITDA ( m) Q1 Q2 Q3 Q4 Adj. EBITDA by quarter ( m) 5.3% 17.5% 27.1% % % Adjustments EBITDA -37.1% % Q1 Q2 Q3 Q4 Both business segments contributed to earnings improvement 5

7 Group EBT ( m) EBT by quarter ( m) % % % % % Q1 Q2 Q3 Q4 EAT ( m) EAT by quarter ( m) % % % % % Q1 Q2 Q3 Q4 Net profit influenced by significantly higher depreciation 6

8 Group Sales by customer ( m) VW Daimler BMW Audi Porsche Volvo Cars Ford ThyssenKrupp PSA Hilite Other SHW well positioned with German OEMs 7

9 Pumps & Engine Components Sales ( m) Sales by quarter ( m) % % % % % Q1 Q2 Q3 Q4 Adj. EBITDA ( m) Adj. EBITDA by quarter ( m) % % % % % 11.7% 10.7% Q1 Q2 Q3 Q4 P&EC not yet in a stable condition 8

10 Pumps & Engine Components Sales by division ( m / as % of P&EC sales) % % 9.8% 11.0% % 14.1% 11.6% 12.4% 75.3% 73.4% 76.6% 79.2% Powder Metellurgy Truck & Off-Highway Passenger Cars Strong growth of Passenger Car division increases EBITDA-margin challenges 9

11 Brake Discs Sales ( m) Sales by quarter ( m) % % % 2.6% % Q1 Q2 Q3 Q4 EBITDA ( m) EBITDA by quarter ( m) % % % % % % 8.7% Q1 Q2 Q3 Q4 Brake Discs remain on the road to success 10

12 Working Capital Net Working Capital / Sales (LTM) 15.2% 15.6% 15.7% 16.8% 15.6% 16.1% 11.2% Medium-term target: 11% 9.1% Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ 11

13 Cash flow 5. ( m) Q4/ Q4/ 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 * * Includes cash received from the disposal of STT: 42.9m Balanced free cash flow despite record high investments 12

14 Net debt Net debt ( m) Q4/2011 Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ Strong free cash flow in Q4 13

15 Capex - Depreciation Capex* ( m) Capex* by quarter ( m) 55.0% * Additions to tangible and intangible assets Q1 Q2 Q3 Q4 Depreciation ( m) Depreciation by quarter ( m) +40.5% : calculatory depreciation; : book depreciation 1.0 Q1 Q2 Q3 Q4 Record high capex for future growth 14

16 Sound financial profile Balance sheet as of 31 December, ( m) Balance sheet as of 31 December, ( m)* 187.3m 180.9m * Adjustment pursuant IAS 19 Current assets (45.3%) Equity (44.1%) Current assets (43.6%) Equity (50.9%) Non-current assets (53.2%) Pensions (13.1%) Other long term liabilities (3.9%) Bank debt (3.1%) Other short term liabilities (36.0%) Non-current assets (45.6%) Pensions (14.3%) Other long term liabilities (3.4%) Other short term liabilities (31.4%) Cash (1.5%) 2.8 Cash (10.9%) 19.6 Assets Equity & Liabilites Assets Equity & Liabilites Equity ratio above industry average 15

17 Update CEO Agenda: Status North America Management team established (General Manager, Sales Manager, Operation Manager) Search for development engineers started Building for administration, R&D and production leased; moved into building March 5 Customer visits and RFQ process started Final negotiations with T&OH customer to be finished in March; letter of intent received Business plan finalized and approved Light vehicle production (< 6 t) North America (m units) 2.5% Source: PwC Autofacts January 2014 SHW seamlessly ties up with activities in US market 16

18 Update CEO Agenda: Status China Project leader appointed Plant Manager hired Search for General Manager in final stage Customer contacts and RFQ process on-going Planning process for preparation of production started Close to nomination of T&OH customer project Status North America Project Business plan updated; approved by the Supervisory Board in March Light vehicle production (< 6 t) China (m units) % Source: PwC Autofacts January

19 Update CEO Agenda: Status Brazil - ramp up Suppliers adequately qualified Assembly line installed Technical approval by customer successfully carried out (December 2014) First customer deliveries at the end of Q1/2014 or beginning of Q2/2014 Customer RFQ s sales activities ongoing Light vehicle production (< 6 t) South America (m units) % Source: PwC Autofacts January

20 Update CEO Agenda: Reorganisation of product development cess Redesign of the product development process with support of external consultant finished Implementation phase will start in March Training of the employees will be done in parallel Composition of project teams in development projects 19

21 Update CEO Agenda: Supply Chain Management / Lean Management Supply Chain Management Lean Management Supplier base Logistic planning process optimized with 4m 6m stock reduction achieved Implementation of Lean Management organisation started with 10 percent productivity increase for 2014 Suppliers in Eastern Europe, Turkey and China visited and evaluation process on-going Material flow process redesigned and implementation process started Implementation of team structures will be started in March Customer approval process for several components from suppliers of LC countries started IT processes to manage consignment stock will be finished in Q2 Scanner project will be finished in April 20

22 Grams CO 2 per kilometer Grams CO 2 per kilometer Grams CO 2 per kilometer Grams CO 2 per kilometer Increasingly challenging CO 2 -emission targets across key end-markets in the coming years trigger fundamental changes in the automotive industry EU Car Stated targets (CO 2 /km) Passenger Cars LCV LCV USA Car Stated targets (CO 2 /km) Passenger Cars LCV LCV China Stated targets (CO 2 /km) Passenger Cars Brazil Source: ICCT Proposed targets Enacted targets Historical performance Stated targets (CO 2 /km) Passenger Cars SHW s energy-efficient solutions well positioned to benefit from increasing demand for fuel saving products 21

23 Market environment in Europe further brightening Light vehicle production (< 6 t) Europe (m units) Truck production (GVW > 6t) - Western Europe (units) 524, % % 455, , , , , m units CAGR VW Group 4,50 4,63 4,88 4,98 5,00 4,97 2,0% PSA Group 1,96 2,10 2,14 2,27 2,36 2,37 3,9% Renault-Nissan 1,80 1,85 1,92 2,28 2,26 2,24 4,4% BMW Group 1,44 1,48 1,57 1,67 1,71 1,80 4,6% Daimler Group 1,46 1,56 1,60 1,55 1,61 1,63 2,3% Ford Group 1,07 1,08 1,11 1,11 1,07 1,14 1,3% GM Group 0,89 0,88 0,96 1,10 1,20 1,20 6,2% units CAGR Mercedes-Benz ,6% MAN Group ,5% PACCAR ,4% IVECO Group ,2% Volvo ,4% Scania ,8% Renault ,0% Source: PwC Autofacts January 2014 Source: LMC Automotive Q4/ 22

24 23 Good start into fiscal year 2014 Sales Jan & Feb Incoming Orders Jan & Feb +24.4% % Brake Discs Pumps & Engine Components

25 Price per unit Sales growing structurally Sales split Pumps Passenger Cars* Sales split Brake Discs* Transmission oil pumps Oil-/vacuum pumps Variable oil pumps Fixed displacement pumps Other Composite brake discs Ready-to-install brake discs Unprocessed brake discs Other 12.6% 13.9% 35.6% 34.6% % 13.9% 16.7% 17.6% 25.7% 34.4% 10.9% 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% 9.0% % 28.7% 23.7% 3.8% 5.3% 3.5% 2011 *Column height represents sales development Oil-/vacuum pumps and composite brake discs are major growth drivers in % 3.2%

26 Outlook 2014 Focal points: Acquisition of new orders Business expansion in Brazil, China and North America Optimisation of the production processes and procedures (shop floor management) Optimisation of the product development process Optimisation of the entire supply chain Numerous new product launches Capex: between 25m 29m Group sales: 380m 400m P&EC sales: 287m 305m BD sales: 93m 95m Adj. EBITDA: 38m 40m Working Capital Ratio: sustainable 11 percent 25

27 Globalisation targets Sales target in five years from now ( m) 2018e Growth CAGR 12-18e NAFTA / Latin America Asia-Pacific Europe Total % 11.3%** 26

28 Financial Calendar Interim report for the 1st quarter April 2014 Annual General Meeting May 2014 Interim report for the 2nd quarter July 2014 Interim report for the 3rd quarter October

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

30 Back-up 29

31 Shareholder structure 31 December 31 December * Free Float 41.7% SHW Holding L.P. 58.3% * Based on existing voting rights notifications Strong international shareholder base 30

32 Share price performance Share Performance 31

33 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. 32