Results Presentation WABERER S INTERNATIONAL Nyrt. Budapest, August 14,
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, which was approved for publication by the National Bank of Hungary in its resolution No. H-KE-III-426/, dated 16 June, and available on our website for investors at http://www.waberers.com/en/investors. 2 Results Presentation
Agenda Highlights Group performance Business Segments International Transportation Segment Regional Contract Logistics Other segment Link integration Financial statements 3 Results Presentation
Highlights Growth driven by both organic expansion and acquisitions Revenue grew by 13% Recurring Group EBITDA up 4% Recurring EBIT grew by 14% Link acquisition closed and to be consolidated in H2 Improvement in efficiency metrics Loaded ratio at record high of 92% Improving per unit fuel and repair & maintenance costs Savings in fuel consumption Strong value creation for shareholders Recurring Net income increased by 21% EPS up by 29% to EUR 0.48 Net leverage ratio flat at 2.9 x recurring EBITDA 4 Results Presentation
Group performance Revenue (left) and recurring EBITDA (right) by segments (EUR mn) 276 10 44 +13% 313 24 60 39 1 6 +4% 40 4 9 OTH RCL ITS Inter-segment Revenue growth driven by organic expansion in regional segment and Insurance Company acquisition EBITDA up 4% as planned but in slightly different structure as expected Net income margin increasing to 2.9% on lower D&A and tax burden overcompensating smaller hedging gains Flat net leverage ratio 227-5 2016 235-7 32 2016 28 Recurring net income (EUR mn) 7.6 2.2 5.4 2016 +21% 9.2 2.3 6.9 Non-rec. items and minorities Equity holders of the parent 5 Results Presentation
International Transportation Segment ITS selected financials (unaudited IFRS, EUR mn) and KPIs 2016 Increase (decrease) Revenue 227.3 235.3 3.5% Direct Costs* (180.5) (188.6) (4.5%) Gross profit* 46.8 46.7 (0.2%) OPEX* (16.3) (21.7) (33.0%) Non-recurring items 1.1 2.6 EBITDA (recurring) 31.5 27.6 (12.5%) Gross margin* 20.6% 19.8% (0.8 pp) EBITDA margin (recurring) 13.9% 11.7% (2.1 pp) Average number of truck drivers 3,990 4,192 5.1% Average number of trucks 2,960 3,080 4.1% Average age of trucks (years) 2.10 2.26 7.5% Loaded ratio 91.7% 92.0% 0.3 pp Fuel consumption (litre / 100 km) 30.3 30.2 0.3% Transportation days 124.6 121.0 (2.9%) * Adjustments to other cost and other operating expenditures made not affecting EBITDA. Refer to page 3 of the Half-year financial report for more details. Revenue increase driven by key account clients despite less transportation days EBITDA margin improvement Q2-o- Q1 but Y-o-Y deterioration due to a front-loaded year 2016 Improved IT systems leading to better routing and higher loaded ratio Savings in fuel consumption due to measures to improve driving style ITS recurring EBITDA (EUR mn) 32 2016 25 28 H2 2016 6 Results Presentation
Regional Contract Logistics RCL selected financials (unaudited IFRS, EUR mn) and KPIs 2016 Increase (decrease) Revenue 43.6 60.0 37.6% Direct Costs (32.5) (43.5) (33.9%) Gross profit 11.1 16.5 48.6% OPEX (4.9) (7.6) (53.6%) EBITDA 6.1 8.9 44.5% Gross margin 25.4% 27.4% 2.0 pp EBITDA margin 14.1% 14.8% 0.7 pp Average number of truck drivers 644 852 32.3% Average number of trucks 539 654 21.4% Fuel consumption (litres / 100 km) 28.8 28.3 (1.7%) Warehousing capacity (`000 m 2 ) 169 186 10.3% Warehousing revenue / m 2 (EUR)* 111 125 12.0% Growth in revenue driven by client acquisitions and more complex logistics services especially in warehousing EBITDA and EBITDA margin up on shift towards more complex services Significant savings in fuel consumption RCL EBITDA (unaudited IFRS, EUR mn) 2016 * Revenue per used m2 of warehousing capacity (EUR/year) 9 6 +45% 7 Results Presentation
Other segment Other segment selected financials (unaudited IFRS, EUR mn) Q2 2016 Q2 Increase (decrease) Q2/Q2 Revenue 10.2 12.3 24.4 21.3% Direct Costs (7.9) (9.2) (19.1) (16.9%) EBITDA 1.3 1.9 3.9 48.1% EBITDA margin 12.5% 15.3% 16.0% 2.8 pp Revenue in the Other segment increased driven by an expansion in the Insurance Company s client base EBITDA and margin increase due to one-off payments in Q2 2016 related to change of control 8 Results Presentation
Financial statements Income statement Group selected income statement financials (unaudited IFRS, EUR mn unless otherwise stated) 2016 /2016 abs. change /2016 % change Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Revenue 127 149 276 155 158 313 28 9 37 22% 6% 13% Direct Costs* (102) (115) (217) (127) (118) (246) (25) (3) (28) (25%) (3%) (13%) Gross profit* 25 34 59 28 40 68 3 5 8 11% 16% 14% OPEX* (8) (13) (21) (10) (19) (30) (2) (6) (8) (24%) (49%) (39%) Non-recurring items 0 1 1 1 1 3 1 0 2 EBITDA (recurring) 16 22 39 18 22 40 2 (1) 1 12% (2%) 4% D&A (13) (13) (26) (12) (13) (25) 1 (0) 0 7% (3%) 2% EBIT (recurring) 3 10 13 6 9 15 3 (1) 2 81% (10%) 14% Financial result (1) (1) (1) (1) (2) (3) (0) (1) (1) (16%) (219%) (94%) Taxes (2) (3) (4) (1) (2) (3) 1 0 1 60% 6% 27% Net income (recurring) 1 7 8 5 5 9 4 (2) 2 352% (30%) 21% Gross margin* 19.6% 23.0% 21.4% 17.9% 25.2% 21.6% EBITDA margin 12.9% 15.1% 14.1% 11.9% 13.9% 12.9% EBIT margin 2.7% 6.5% 4.7% 4.0% 5.5% 4.8% Net income margin 0.8% 4.4% 2.8% 3.0% 2.9% 2.9% * Adjustments to other cost and other operating expenditures made not affecting EBITDA. Refer to page 3 of the Half-year financial report for more details. 9 Results Presentation
Financial statements Balance sheet Group selected balance sheet items (unaudited IFRS, EUR mn unless otherwise stated) end-dec 2016 end-march end-june TOTAL NON-CURRENT ASSETS 345 346 369 TOTAL CURRENT ASSETS 169 173 193 o/w Trade receivables 88 100 102 o/w Cash and cash equivalents 32 24 39 TOTAL ASSETS 514 519 562 TOTAL SHAREHOLDERS' EQUITY 113 117 121 TOTAL LONG-TERM LIABILITIES 213 207 227 o/w Long-term portion of leasing liabilities 162 152 167 TOTAL CURRENT LIABILITIES 188 195 214 o/w Short-term portion of leasing liabilities 66 72 74 o/w Trade payables 84 87 93 TOTAL LIABILITIES 400 402 441 TOTAL EQUITY AND LIABILITIES 514 519 562 DEBT MEASURE Net recurring leverage ratio (EBITDA multiple) 2.9 2.9 2.9 10 Results Presentation
Financial statements Cash flow statement Group selected cash flow items (unaudited IFRS, EUR mn unless otherwise stated) 2016 Net cash flows from (used in) operating activities 30.5 35.4 of which: change in working capital (3.7) (7.0) Net cash flows from (used in) investing and financing activities (14.6) (28.6) Cash and cash equivalents at end of the period 15.9 6.9 Free Cash Flow 36.2 39.0 CAPEX (2.1) (3.3) 11 Results Presentation
Link integration Link basics (2016 figures) c.430 Trucks 52.3 mn km driven c.960 employees, thereof c.75% drivers 86.9% Loaded ratio 2016* Revenue 94.3 Recurring EBITDA 10.5 Recurring EBITDA margin 11.1% * In EUR mn, audited non-ifrs. Recurring EBITDA excludes one-off items, The reported EBITDA amounts to EUR 8.3 mn. Link integration timeline Due diligence Low-hanging fruits Mid-term synergies Operational & financial DD Commercial and business process DD Centralisation of procurement Centralisation of controlling Centralisation of sales IT integration Jul 2018 Aug Sep Oct Nov Dec Jan Feb 20 July Closing 12 Results Presentation
WABERER S INTERNATIONAL Nyrt. H-1239 Budapest, Nagykőrösi út 351. Tel: +36 1 421 6300 E-mail: investor.relations@waberers.com