Q Results Presentation

Transcription

1 Q Results Presentation WABERER S INTERNATIONAL Nyrt. Budapest, March 8, 2018

2 Forward-looking statements This presentation may contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore should not have undue reliance placed upon them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors are described in, among other things, the prospectus dated 15 June 2017, which was approved for publication by the National Bank of Hungary in its resolution No. H-KE-III-426/2017, dated 16 June 2017, and available on our website for investors at 2

3 Agenda Investment Case Highlights Q4 and FY 2017 Results Financial Statements 3

4 Waberer s Growth Strategy We Are Delivering 2017 performance ahead of expectations 2018 outlook points to further positive trends Industry consolidation set to continue 4

5 2017 Growth and Strategy Scale Largest European Own FTL Fleet Efficiency Market-Leading Fleet Utilisation Innovation Developing and Applying Technology Systems Consolidation Platform Attractive Consolidation Prospects Profitability Track Record of Strong Financial Performance Delivering Significantly Above-Market Growth CAGR % 12.3% 1.6% 3.5% 3.8% EU 28 Real GDP European International Road Freight (1) US FTL (2) operators (3) (4) (4) Sources: Notes: 5 Company information, Transport Intelligence, Economist Intelligence Unit. (1) European road freight market size growth for , based on estimated market size for (2) Full truck load. (3) Average revenue CAGR based on FactSet. US FTL operators include J.B. Hunt, Knight, Werner, Swift, Heartland, Marten, Covenant and Celadon. (4) Based on reported revenue.

6 At a Glance Waberer s Long-term Growth Story Where we come from 4,303 (1) (8) Creation of the Company 1994 Acquisition of Volán Tefu in a privatisation process (9) 2002 Acquisition of Hungarocamion 2006 Acquisition of Révész Eurotrans 2011 Initial MEP investment 2013 Acquisition of 60% stake in Szemerey (6) 2016 Acquisition of WHB Insurance 2016 MEP acquired remaining 40.3% from Mr Waberer (7) 2017 Acquisition of Link and IPO 1994 Privatisation of the Company 2004 Hungary joined the EU Origins Modernisation International and Regional Growth Who we are 4,303 Trucks (1) ~2.3 Years Age (1) 5,826 Drivers (1) 485 mn km Driven (3) 199k m 2 Wareh. Capacity (1,2) IT CAPEX of EUR 4.3 mn (3) 91.4% Utilisation (4) Leading Pan-European FTL Operator International Transportation What we do #1 own-fleet player in European FTL with blue chip customer base Blue-chip customers with key account retention ratio of 99% 74% Revenue (3) EUR 500 mn 72% EBITDA (3) EUR 59 mn Leading Regional Logistics Solutions Provider Regional Contract Logistics #1 in road transport and logistics services in Hungary Full range of logistics capabilities (FTL, LTL, warehouse, packaging and other VAS) 18% Revenue (3) EUR 123 mn 21% EBITDA (3) EUR 17 mn Source: Notes: 6 Company information. (1) Average for Q (2) For the Regional segment only. (3) Refers to (4) 2017 average loaded ratio for the International segment. Calculated as total number of kilometres driven carrying loads divided by total number of kilometres driven during the relevant period. (5) Refers to the International Transportation segment only for (6) Remaining 40% owned by Mr Szemerey. Waberer s has a call option exercisable until April (7) Mr Waberer retired in 2016 and was replaced by Ferenc Lajkó as new CEO. (8) Volán Tefu only. (9) The company was registered in 1990 as the legal successor of Volán Tefu.

7 Consistent Growth - Top Line and Profit Revenue (EUR mn) Consistent Growth of Revenues Across Segments CAGR % 16.6% Growing Profit Contribution Across Segments EBITDA (recurring) (EUR mn) 13.7% 13.7% 12.9% % CAGR % 29.3% % % 2014 International 2015 Regional 2016 Other International Regional 2016 Other 2017 Margin Net profit (recurring) (EUR mn) 2.2% 11 Sustainable Uplift in Net Margin 2.6% 2.4% % 21 Avg. Margin 2014A-2016PF 2.5% Benefits of Deleveraging and Lower Cost of Debt Net Debt & Net leverage ratio (1) (EUR mn) Average Interest Costs 3.6% 2.8% 2.2% 1.7% Margin 2014 Net debt Net Leverage ratio Source: Company information. Note: (1) Net Leverage Ratio is defined as net debt / recurring EBITDA. 7

8 Strategy and 2017 Developments Scale Largest European Own FTL Fleet Efficiency Market-Leading Fleet Utilisation Innovation Developing and Applying Technology Systems Consolidation Platform Attractive Consolidation Prospects Profitability Track Record of Strong Financial Performance 2017 developments Revenue 1 Trucks 2 Fuel price advantage +18% +18% Fuel consumption 2,7 Loaded ratio 4 R&M cost 2,5-4% 91.4% -4% Driving style SAP S/4 Hana Platooning live test LINK integration Acquisition programme ongoing Net profit Growth 3 Margin change 3 +58% +0.8pp over 2016 growth rates Q4 average over 2016 Q4 average 3 Growth in recurring figures 2017-over average. 5 Repair and maintenance cost per km in the International Transportation Segment. 7 Average fuel consumption growth in litre/km in the International Transportation Segment. 8

9 Outlook High Confidence In Continued Growth Delivery Scale Largest European Own FTL Fleet Efficiency Market-Leading Fleet Utilisation Innovation Developing and Applying Technology Systems Consolidation Platform Attractive Consolidation Prospects Profitability Track Record of Strong Financial Performance 2018 plans Lever our scale to bolster pricing Organic growth project for Poland E-commerce growth opportunity Further improvement in industry-leading utilisation Focus on per truck Mileage Continued fuel savings Fleet: complete EURO6 upgrade, testing alternative drivetrain Cloud-based big data analysis will enable further cost optimisation LINK integration on schedule, for 2018 completion Acquisition targets in regional segment under active assessment Similar rate of growth expected in 2018 organic and inorganic Margin outlook robust 9

10 Agenda Investment Case Highlights Q4 and FY 2017 Results Financial Statements 10

11 Highlights Q4 and FY 2017 Results Expansion split evenly between organic and inorganic factors 2017 FY Revenue 1 up by 18% due to organic growth and Link acquisition 2017 Q4 Revenue increased by 21% on continuing price increases and organic growth in the regional segment, as well as acquisitions Recurring Group FY EBITDA increased 17% year-on-year based evenly split between organic and inorganic growth Efficiency savings continue Fuel consumption savings of 4% Q4-over-Q4 Loaded ratio above 91% Improving per unit repair & maintenance costs Significant uplift in net profit Recurring 2017 FY net income increased 58% mainly due to the expansion in operation Recurring 2017 Q4 net income increased to EUR 6 million in Q due to higher operating profits and positive one-offs in tax and financial result Net leverage ratio decreased to 2.7 x recurring EBITDA from 3.4 at end-q Link s figures are included in all financials and operative KPIs of the Group and the International Transportation Segment for the period of Q3 and Q only. 11

12 Group performance Q Revenue (left) and recurring EBITDA (right) by segments (EUR mn) Revenue growth of 21% to which all three segment contributed significantly +21% Q Q Revenue +47% Q Q Rec. EBITDA OTH RCL ITS Inter-segment EBITDA up 47% as a result of a balanced combination of organic efficiencies and Link Net income growth of EUR 5.7 mn with a margin of 3.3% Net leverage ratio decreased to 2.7x from 3.4x Recurring net income (EUR mn) + EUR 5.7 mn Q Q Non-recurring items Minorities Equity holders of the parent 12

13 International Transportation Segment Q ITS selected financials (unaudited IFRS, EUR mn) and KPIs Q Q Increase (decrease) Revenue % Direct Costs (88.3) (109.3) (23.8%) Gross profit % OPEX (14.6) (13.1) 10.3% Non-recurring items EBITDA (recurring) % Gross margin 20.0% 20.0% 0.0 pp EBITDA margin (recurring) 9.2% 11.0% 1.8 pp Average number of truck drivers 4,151 4, % Average number of trucks 2,982 3, % Average age of trucks (years) % Loaded ratio 91.4% 91.1% (0.3 pp) Fuel consumption (litre / 100 km) (4.5%) Transportation days % 24% revenue growth due to continuing price increases and acquisition effects EBITDA growth thanks to Link s contribution of EUR 3.8 million Savings in fuel consumption thanks to training based on driving style analysis ITS price and fuel consumption % 1.03 Q4 2016Q Revenue / km (EUR) % 28.9 Q4 2016Q Fuel cons.(l / 100km) 13

14 Regional Contract Logistics - Q RCL selected financials (unaudited IFRS, EUR mn) and KPIs Q Q Increase (decrease) Revenue % Direct Costs (23.1) (22.8) 1.0% Gross profit % OPEX (3.4) (4.7) (37.4%) EBITDA % Gross margin 21.5% 27.8% 6.3 pp EBITDA margin 10.0% 13.1% 3.1 pp Average number of truck drivers % Average number of trucks % Fuel consumption (litres / 100 km) % Warehousing capacity (`000 m 2 ) % Warehousing revenue / m 2 (EUR)* % * Revenue per used m 2 of warehousing capacity (EUR/year) 8% growth in revenue driven by higher prices and higher customer demand EBITDA up by 41% as a result of organic growth and a one-off cost in the base period RCL capacity growth 670 Q % 699 Q Q % 199 Q No. of trucks Warehouse m 2 14

15 Other segment Q Other segment selected financials (unaudited IFRS, EUR mn) Q Q Increase (decrease) Revenue % Direct Costs (9.8) (12.6) (28.0%) Gross profit (36.5%) OPEX (0.3) % EBITDA % EBITDA margin 8.6% 9.8% 1.2 pp Revenue in the Other segment increased by 22.5% due to more third party clients EBITDA rose to EUR 1.3 million with EBITDA margin of 9.8% 15

16 Agenda Investment Case Highlights Q4 and FY 2017 Results Financial Statements 16

17 Financial statements Income statement Group selected income statement financials (unaudited IFRS, EUR mn unless otherwise stated) /2016 abs. change 2017/2016 % change Q4 FY Q4 FY Q4 FY Q4 FY Revenue % 17.8% Direct Costs (119.2) (452.6) (142.4) (533.8) (23.2) (81.2) (19.5%) (17.9%) Gross profit % 17.4% OPEX (17.6) (50.6) (16.7) (57.8) 0.9 (7.2) 4.9% (14.2%) Non-recurring items (1.9) (1.4) (71.1%) (32.1%) EBITDA (recurring) % 16.6% D&A (13.0) (52.0) (15.6) (56.0) (2.5) (4.0) (19.4%) (7.8%) EBIT (recurring) % 37.8% Financial result (1.3) (3.1) 0.2 (3.6) 1.6 (0.4) 118.5% (13.7%) Taxes 0.7 (4.9) 0.8 (4.8) % 1.7% Net income (recurring) % 57.5% Gross margin 19.5% 20.9% 20.4% 20.8% EBITDA margin 9.4% 12.9% 11.4% 12.7% EBIT margin 0.6% 3.8% 2.7% 4.4% Net income margin 0.2% 2.4% 3.3% 3.2% 17

18 Financial statements Balance sheet Group selected balance sheet items (unaudited IFRS, EUR mn unless otherwise stated) end-dec 2016 end-sep 2017 end-dec 2017 TOTAL NON-CURRENT ASSETS TOTAL CURRENT ASSETS o/w Trade receivables o/w Cash and cash equivalents TOTAL ASSETS TOTAL SHAREHOLDERS' EQUITY TOTAL LONG-TERM LIABILITIES o/w Long-term portion of leasing liabilities TOTAL CURRENT LIABILITIES o/w Short-term portion of leasing liabilities o/w Trade payables TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES DEBT MEASURE Net recurring leverage ratio (EBITDA multiple) Total net debt as a multiple of trailing recurring EBITDA. 18

19 Financial statements Cash flow statement Group selected cash flow items (unaudited IFRS, EUR mn unless otherwise stated) 2016 FY 2017 FY Net cash flows from (used in) operating activities of which: change in working capital 1.4 (5.0) Net cash flows from (used in) investing and financing activities (49.9) (57.1) Cash and cash equivalents at end of the period Free Cash Flow CAPEX (4.9) (11.9) 19

20 Waberer s Growth Strategy We Are Delivering 2017 performance ahead of expectations 2018 outlook points to further positive trends Industry consolidation set to continue 20

21 WABERER S INTERNATIONAL Nyrt. H-1239 Budapest, Nagykőrösi út 351. Tel: investor.relations@waberers.com