1.4 MB

SAF-HOLLAND at a glance
General information
Components and systems
• One of the leading global producers and
suppliers of key systems and components for
the trailer, truck, bus, and recreational vehicle
industries
• 31 subsidiaries including 16 manufacturing
facilities on five continents
• ~3,100 employees
• ~9,000 independent aftermarket points in more
than 30 countries
Kingpins
Fifth wheels
Key financial information FY 2011
•
•
•
•
•
2
Sales: €831.3mn (+31.7%)
Adjusted EBIT: €57.3mn (+54.4%)
Adjusted EPS: €0.75 (+435.7%)
Operating cash flow before income tax: €46.5mn (+1.1%)
Equity ratio: 35.8% (+602.0%)
Suspensions
Landing gear
Axle systems
History
• 1890: SAF Group was founded, beginning with the production
and supply of ploughs and other agricultural products
• 1910: Holland Group was founded, beginning its business with
the production of pressure release hitches
connecting horses to ploughs
• 2006: Merger between SAF Group and Holland Group
• 2007: IPO of SAF-HOLLAND (Prime standard)
• 2008: Acquisition of Georg Fischer Verkehrstechnik GmbH
(second-leading manufacturer of fifth wheels in Europe)
and landing leg business of US manufacturer AustinWestran
• 2010: Private equity company Pamplona Capital Partners I, LP
sold its remaining shares (34.5%) and inclusion of
SAF-HOLLAND in the SDAX
• 2011: Capital increase to 41.2mn shares (from 20.7mn)
3
Organisational structure
Business Unit
Trailer Systems
4
Business Unit
Powered Vehicle Systems
Business Unit
Aftermarket
Sales 2011:
€472.8mn (56.9% of group sales)
Sales 2011:
€154.0mn (18.5% of group sales)
Sales 2011:
€204.5mn (24.6% of group sales)
•
•
•
•
• Fifth wheels
• Suspensions (Truck, Bus & RV)
• Tag axles
• Global aftermarket and
service network
Axle systems
Landing gears
Kingpins and coupling products
Suspensions
A global player
Core sales regions
Production sites
Germany
Bessenbach/Keilberg
Wörth am Main
Bessenbach/Frauengrund
Singen
Canada
Woodstock
Norwich
China
Xiamen
Australia
USA
Melton
Holland
Muskegon
Warrenton South
Warrenton North
Wylie
Dumas
Brazil
Jaguariuna
5
India
Tamilnadu
(Joint Venture)
Globally strong market position
Market Shares
North America
SAF∑ Top 3
HOLLAND
SAF∑ Top 3
HOLLAND
North America
Axles
#2
#3
35%
84%
10%
98%
Suspensions
#2
#3
27%
82%
16%
85%
Kingpins
#2
#1
32%
99%
88%
98%
Landing gears
n.a.
#1
n.a.
90%
61%
96%*
Powered
vehicles
Europe
Europe
Fifth wheels
#2
#1
22%
98%
50%
100%
Truck suspensions
n.a.
#2
n.a.
85%
6%
36%*
Service
points
#1
#1
Trailer systems
6
SAF-HOLLAND Market Position
Aftermarket
Products
Source: L.E.K Consulting, February 2011
*Top 2 players
approx. 9,000
Aftermarket points
Unique market position and product portfolio
1
SAF-HOLLAND
Suppliers can be separated into three main groups:
3
7
Geographic coverage
Headquarters:
Europe
Product focus:
Truck
Global
North America
Trailer
1) Source: L.E.K Consulting, February 2011
Global market leader
2
Supra-regional
3
Regional
SAF-HOLLAND is the only supplier with a broad
regional coverage and a wide product portfolio for both
truck and trailer industry.
2
Regional
1
China
Truck and Trailer
Strong growth of global truck and trailer markets
Global heavy truck production in thousand*
CAGR
2010 - 2015
2,500
Total: 4.6%
2,000
1,500
BRIC: 2.3%
1,000
North
America: 6.8%
500
Europe: 13.4%
0
2008
2009
Europe
North America
Global trailer production in thousand*
2010E
2015E
BRIC
CAGR
2010 - 2015
1,000
Total: 7.4%
2,500
750
2,000
BRIC: 5.1%
Increase in truck and trailer production is mainly
driven by:
• Pent-up demand in Europe and N/A
• Continuous increase of transport volume
worldwide
• Expansion of infrastructure and strong market
growth in BRIC countries
• Outsourcing of production
• Correlation between truck and trailer market
500
1,500
North
America: 11.1%
1,000
250
500
0
0
8
Europe: 10.2%
2008
2008
2009
2010E
Europe 2009
North America2010E
BRIC
Europe
North America
BRIC
2015E
2015E
Source: L.E.K. Consulting, February 2011
*includes Europe, North America and BRIC countries (Brazil, Russia, India, China) accounting for c. 90% of total global truck and trailer market
SAF-HOLLAND performance in a cyclical industry
Sales in €mn
60.0%
900.0
800.0
50.0%
700.0
40.0%
600.0
500.0
30.0%
400.0
20.0%
300.0
7.6%
8.7% 9.0%
7.4% 7.1%
8.3%
5.4%
7.3%
9.5%
9.7% 10.3% 8.9%
8.4%
6.8%
8.6%
10.0%
4.0%
200.0
0.0%
100.0
-10.0%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
SAF
HOLLAND
SAF-HOLLAND
Adj. EBITDA in %
Steady growth and stable profit development within the last 15 years except for 2008/2009*
9
* Global economic crisis
How to manage SAF-HOLLAND in a cyclical industry
1
Innovative products with lowest total cost of ownership as a strong customer benefit
2
Increase of international footprint (e.g. in BRIC countries) and product diversification (e.g. axles and
suspensions in North America) and growing market shares
3
Diversified business structure (North America 40%, Europe 55%)
4
Sustainable growth of the high margin Aftermarket business
 Increase of installed product base driving the Aftermarket business (…automatically)
 Enlarged product portfolio (A2 brand; 3rd party products)
 Regional expansion of distribution and sales channels
5
Flexible cost structure and sustainable Net Working Capital management
 70% of sales are based on material, which is completely variable
 100% of the blue-collar employees in the US and up to 20% in Germany are variable
 45,000 hours in the accounts for unpaid overtime in German production facilities
10
6
Improvement of internal processes (e.g. implementation of SAP/R3, Advanced Production Optimisation)
7
Solid liquidity position with sufficient headroom under the financing instruments
8
Experienced and crisis-proven Management, strongly committed to low debt/leverage
Strong brands based on high reputation for quality and technology expertise
Customer feedback on needs
Brands representing
superior product
performance and
aftermarket service
Push
Pull
End Users
OEM
Sales
Sales
Axle Systems – Approx. 80% of the purchasing decisions are specified by end user
End users choose SAF-HOLLAND because of…
•
•
•
•
Excellence in quality, design and manufacturing
Superior quality and performance
Leadership in technological innovation
High standards of safety
11 Source: L.E.K Consulting, February 2011
• Lower total costs of ownership and higher efficiency
to end user driven by
– leading technologies
– cost of ownership
– and lightweight components
Innovations in weight reduced products
Introduction of the first SAF-HOLLAND disc brake
Introduction of the new wheel end
New approach required to achieve
Key requirements in
designing the brake
• Low initial weight
• Convincing performance
• Reduced maintenance cost
• Robust in use
SAF-HOLLAND's new disc brake
• is based on a new generation of pneumatic disc brakes
which we developed jointly with our partner Haldex
• meets the steadily growing demands of semitrailer and trailer
customers
Considerable weight reduction
• A total of 96 kg can be saved for a three-axle trailer
• Together with aluminium wheel rims, up to
204 kg of weight reduction are possible
12
•
weight reductions
•
customers want standardized
wheels for axles with drum and
disc brakes
The new wheel end allows a wide range of
applications with
•
with disc or drum brakes
•
with steel or aluminium wheels
•
an axle load of 9 to 10 tonnes
Savings volumes of diesel and CO2
• Assuming 50,000 vehicles on European roads
reduced their weight by 204 kilograms each, annual
savings of 7.2 million litres of diesel and 18.8
million kilograms of CO2 would be possible
Aftermarket – global reach and density of service network
North America
approx. 5,700
Europe (incl. Russia)
approx. 2,800
Number of SAF-HOLLAND axles and fifth wheels in the field
which are and will become relevant for the spare parts business
in million
2,500
2,000
1,500
1,000
500
RoW
approx. 500
• # 1 in number of independent aftermarket points in Europe
and North America with worldwide approx. 9,000
aftermarket points
• Extensive service network as one of the key drivers for the
strong access to OEMs and significant barrier to entry for
new competitors
13
0
Key aftermarket co-operations
Axles
Fifth wheels
Executive Summary – Outperformance in 2011
14
1
Group sales exceeded the goal and increased strongly by
31.7% from 631.0 to €831.3mn
2
Adj. EBIT substantially improved by 54.4% from 37.1 to €57.3mn
Adjusted EBIT margin increased from 5.9% to 6.9%
3
Reduction of net debt by 47.2% and improvement of equity
ratio to 35.8% due to a successful capital increase in March
4
Sustainably stable cash flow and net working capital
performance
5
Further expansion of our market position, especially in the
Business Units Trailer and Aftermarket as well as in the BRIC
countries
Business performance – group sales and group adjusted EBIT
Sales in €mn
Adjusted EBIT in €mn
900
70
831.3
800
57.3
60
700
631.0
50
600
37.1
40
500
400
+31.7%
+54.4%
30
300
20
200
10
100
0
0
2010
2010
2011
250
2011
20
215.5
202.4
209.1
204.3
200
16
162.2
171.7
15.4
14.6
171.8
15.0
12.3
150
11.4
12
125.3
2010
2011
100
11.1
9.8
2010
2011
8
4.8
50
4
0
0
Q1
15
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Business performance – sales by region and business unit
Sales in €mn by region
Sales in €mn by business unit
North America
Europe
Other
900
800
700
600
+5.7%
400
456.6
(54.9%)
100
204.5
(24.6%)
600
+13.2%
180.7
(28.6%)
279.2
(44.2%)
331.9
(39.9%)
200
100
154.0
(18.5%)
+20.8%
127.5
(20.2%)
+46.5%
300
0
472.8
(56.9%)
322.8
(51.2%)
0
2010
16
800
400
+18.9%
Aftermarket
900
500
+46.7%
311.3
(49.4%)
300
200
Powered Vehicle Systems
700
40.5
(6.4%)
500
42.8
(5.2%)
Trailer Systems
2011
2010
2011
Business performance – Trailer Systems
Sales in €mn
Summary
140
127.3
100
• YoY sales increase of 46.5% from 322.8 to €472.8 mn
• 4. quarter sales increase of 16.5% from 94.9 to €110.6mn
• Complete product program of suspension systems
since 2011 in N/A
• Continuous increase of market share in N/A
120.4
114.5
120
110.6
94.9
80
60
40
20
0
Q4
Q1
Q2
2010
Q3
Q4
2011
Adjusted EBIT in €mn and margin in %
5
6%
4.4
4.3
5%
4
3.4
4%
3
3.7%
3.4%
2.7
3%
3.0%
2
2.4%
1
1%
0.5
0
0.5%
Q4
2010
17
2%
0%
Q1
Q2
Q3
2011
Q4
• YoY increase of adjusted EBIT from -9.0 to €14.8mn
• YoY increase of adjusted EBIT margin from -2,8% to 3.1%
• Less volume in November and December (e.g. Thanksgiving,
Christmas Holidays) and material shortages in North America
in the 4. quarter 2011 effected profitability
Business performance – Powered Vehicle Systems
Sales in €mn
Summary
50
• YoY sales increase of 20.8% from 127.5 to €154.0mn
• 4. quarter sales increase of 24.2% from 33.9 to €42.1mn
• New suspension program with promising margin
expectations will be launched by the end of 2012
42.1
40
37.3
36.5
Q1
Q2
33.9
38.1
30
20
10
0
Q4
2010
Q3
Q4
2011
Adjusted EBIT in €mn and margin in %
6
30%
5.4
26%
5
4.5
22%
4
3
3.2
3.1
15.9%
3.4
14%
12.1%
10%
2
8.5%
8.4%
8.1%
1
6%
2%
0
-2%
Q4
2010
18
18%
Q1
Q2
Q3
2011
Q4
• YoY decrease of adjusted EBIT from 22.4 to €14.2mn
• YoY decrease of adjusted EBIT margin from 17.6% to 9.2%
• Due to the expiry of a lucrative project in N/A, the profitability
returned to a more normalized situation compared to 2010
• Material price increases
• Inefficiencies in production due to material shortages
Business performance – Aftermarket
Sales in €mn
Summary
60
50
50.6
51.7
50.6
51.6
Q1
Q2
Q3
Q4
• YoY sales increase of 13.2% from 180.7 to €204.5mn
• 4. quarter sales increase of 20.0% from 43.0 to €51.6mn
• Further expansion of the Aftermarket business by
extending the international sales network, by establishing
new subsidiaries like Dubai and by expanding the product
range with third-party products and an A2 brand
43.0
40
30
20
10
0
Q4
2010
2011
Adjusted EBIT in €mn and margin in %
10.0
35%
9.1
30%
8.1
8.0
7.5
7.4
25%
6.0
20%
5.3
17.6%
4.0
16.0%
14.8%
15%
14.3%
12.3%
10%
2.0
5%
0.0
0%
Q4
2010
19
Q1
Q2
Q3
2011
Q4
• YoY increase of adjusted EBIT from 25.9 to €32.1mn
• YoY increase of adjusted EBIT margin from 14.3% to 15.7%
• Material shortages in North America in the 4. quarter
effected profitability
Business performance – operating cash flow
Operating cash flow before income tax in €mn
Summary
•
•
•
•
Positive operating cash flow of €46.5mn (Vj. 46.0)
Net Working Capital amounted to €78.2mn (Vj. 62.7)
It therefore totaled 9.6% of sales (Vj. 9.1)
Days of inventory were 48 days and therefore temporarily slightly
above our target of 45 days
• Discontinuation of a customer discount program effected cash
flow in 3. quarter by ca. - €12mn
• One-time-effect of €6.0mn due to earlier payments of customers
in the 4. quarter
25
22.2
20
15
11.9
12.8
10.8
10
5
0.7
0
Q4
Q1
Q2
Q3
2010
Q4
2011
Net Working Capital
Inventories in €mn
Net Working Capital/Sales
100
30%
Days of inventories
100
65
86.7
80
90.4
86.4
78.2
75.9
25%
76.2
80
55
68.1
20%
62.7
60
60
52.7
15%
14.2%
40
90.4
12.8%
9.5%
47
40
43
42
48
10%
9.1%
35
20
9.6%
20
5%
0
0
0%
2007
20
45
44
2008
2009
2010
2011
25
Q4
2010
Q1
Q2
Q3
2011
Q4
Financials – balance sheet
in €mn
2011
%
2010
%
327.8
61.1%
317.9
65.6%
90.4
16.8%
68.1
14.0%
103.0
19.2%
89.5
18.5%
15.3
2.9%
8.5
1.8%
--
--
0.7
0.1%
Total assets
536.5
100.0%
484.7
100.0%
Equity
192.2
35.8%
24.9
5.1%
56.4
10.5%
55.5
11.5%
Interest bearing loans and borrowings
current/non-current
175.0
32.7%
310.7
64.1%
Other current liabilities
112.9
21.0%
93.6
19.3%
Non-current assets
Inventories
Other current assets
Cash and cash equivalents
Non-current assets held for sale
Other non-current liabilities
Net debt as of December 31, 2011: €159.7mn (12/31/10: €302.1mn)
21
Financials – profit and loss statement
in €mn
Sales
2011
%
2010
%
831.3 100.0%
631.0
100.0%
Cost of Sales
-682.8
-82.1%
-514.0
-81.5%
Gross Profit
148.5
17.9%
117.0
18.5%
Cost of distribution
-48.9
-5.9%
-42.2
-6.7%
Cost of administration
-37.5
-4.5%
-36.7
-5.8%
R&D
-15.0
-1.8%
-13.7
-2.1%
2.9
0.3%
6.5
1.0%
50.0
6.0%
30.9
4.9%
-23.1
-2.8%
-35.0
-5.6%
Income tax
-0.1
--
-4.2
-0.6%
Result for the period
26.8
3.2%
-8.3
-1.3%
Other
Operating result
Financial result
22
Financials – cash flow statement
in €mn
2011
2010
Result before tax
26.9
-4.1
Finance result
23.7
35.5
Amortization/depreciation/reversal of impairment
19.2
17.6
-24.7
-4.7
1.4
1.7
Operating cash flow before income tax
46.5
46.0
Income tax paid
-5.4
-6.6
Operating cash flow
41.1
39.4
Cash flow from investing
-12.1
-7.2
Cash flow from financing
-22.3
-45.3
Effect of f/x changes
0.1
0.9
Net change in cash
6.8
-12.2
Change in Net Working Capital
Other items cash flow
23
Share price and shareholder structure
Development of the share price vs. SDAX (in %)
Shareholder Structure Figures in %
Basic Data Share as of December 30, 2011
Back to an upswing since January 2012
ISIN
LU0307018795
• Significant gains again in the first two months 2012
Number of shares
41,237,375
• The share price reached €5.40 on March 13, 2012
Closing price
€3.56
Adjusted EPS
€0.75
24
Targets and outlook
Targets 2012
Favorable business development in 2012 subject to financial, political and economic issues
in Europe
Mid-term targets
Growth
Potentials
• Sales: €1bn
• Net Working Capital: <10% of sales
• Earnings: 10% adj. EBIT margin
• Capex: < 2% of sales
Trailer Systems
+ €100mn sales potential
• Own axle production in N/A
• Full product range of
suspension systems in N/A
• Strong participation in
growing US disc brake market
• Increase of N/A market share
of up to 30% in medium term
Aftermarket
+ €100mn sales potential
• Increase of installed product
base driving the Aftermarket
business (…automatically)
• Enlarged product portfolio
(A2 brand and 3rd party
products)
• Regional expansion of
distribution & sales channels
BRIC Countries
+ €100mn sales potential
• Taylor-made products for
China and Brazil
• Localized operations
• Increase of market share
in strong growing market
environments (e.g. China 5%)
10 % adj. EBIT Margin
Overproportional increase of A/M share, economies of scale and underproportional increase of overheads.
25
Appendix
26
Key financials
in €mn
Q1- Q4/2011
Q1-Q4/2010
Q4/2011
Q4/2010
Sales
831.3
631.0
204.3
171.8
Cost of sales
-682.8
-514.0
-169.6
142.3
Gross profit
148.5
117.0
34.7
29.5
17.9%
18.5%
17.0%
17.2%
27.3
2.9
6.2
1.1
3.3%
0.5%
3.0%
0.6%
Adjusted EPS in €
0.75
0.14
0.15
0.05
Adjusted EBITDA
71.3
52.7
15.8
15.1
8.6%
8.4%
7.7%
8.8%
57.3
37.1
12.3
11.1
6.9%
5.9%
6.0%
6.5%
46.5
46.0
22.2
11.8
Margin
Adjusted result
Margin
Margin
Adjusted EBIT
Margin
Operating cash flow (before income tax)
27
Reconciliation Statement for Adjusted EBIT
in €mn
2011
2010
Result of the period
26.8
-8.3
0.1
4.2
23.7
35.4
6.4
6.7
-1.5
-5.2
1.8
4.3
57.3
37.1
6.9
5.9
Income tax
Finance Result
Depreciation and amortization from PPA
Reversal impairment intangible assets
Restructuring and integration costs
Adjusted EBIT
in % of sales
28
Actual financing
 Creditline c. €230mn (A1 + A2: €40.1mn; Revolving Credit facility B: €188.8mn)
 Total liquidity (12/31/2011): €70.7mn
 Factoring basket: €10.0mn
 Repayments: c. €5.8mn each in May and November (starting 2012)
 Excess cash flow: 50% of Free Cash Flow on a quarterly basis (free liquidity not under €30mn)
 Interest base (EURIBOR/LIBOR): 2.663%
 Interest Margin: 4.0% (>3.50); 3.50% (> 2.75); 3.00% (>2.00); 2.50% (< 2.00)1)
 Commitment fee: 40% of the relevant margin for the available commitment under Facility B
 Success fee: €2.6mn p.a., Total: €12.60mn
 Expiry date: 09/30/2014
1)
1)
Total Net Debt to consolidated EBITDA ratio
Covenants:
Net Debt/EBITDA
EBITDA/Net Interest
Equity Ratio 1)
12/31/2011
03/31/2012
06/30/2012
09/30/2012
12/31/2012
03/31/2013
06/30/2013
09/30/2013 ff.
12/31/2013
4.50 x
4.25 x
4.25 x
4.00 x
3.75 x
3.50 x
3.25 x
2.75 x
2.00 x
2.50 x
2.50 x
2.75 x
3.00 x
3.25 x
3.50 x
3.75 x
4.00 x
25%
25%
25%
27.5%
27.5%
27.5%
27.5%
30.0%
Headroom 10%-points

29
Solid and flexible financing of the group until September 2014
Financing Strategy
Financial policy
• Significantly improved financial
profile through capital increase
• Current finance agreement with
banks is valid until September 2014
• Sustainable growth of sales and
earnings
• Nevertheless options for an earlier
refinancing are being reviewed
• Reduction of interest rates
• Dividend payment of 40-50% of the
available net earnings when equity
ratio meets about 40%
• Objective is to further optimize
external financing by more
diversification of the borrowed
capital
• Further improvement of the equity
ratio to a minimum of 40%
• One possibility is the issuing of a
capital market instrument
• Further reduction of net debt
• Therefore a new, flexible credit line
with a small group of banks has
already been negotiated, which
become effective after a successful
issuing of a capital market
instrument
• Longterm safeguarding of liquidity
• Increase the diversification of
funding sources
30
Financing
Disclaimer
This presentation contains certain statements that are neither reported financial results nor other historical information. These forward-looking
statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking
statements. Many of these risks and uncertainties relate to factors that are beyond the Group’s ability to control or estimate precisely, such as
future market and economic conditions, the behaviour of other market participants, the ability to successfully integrate acquired businesses and
achieve anticipated synergies and the actions of government regulators. Readers are cautioned not to place undue reliance on these forwardlooking statements, which apply only as of the date of this presentation.
SAF-HOLLAND S.A. does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events
or circumstances after the date of these materials.
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Investor Relations:
SAF-HOLLAND GmbH
Barbara Zanzinger
Hauptstraße 26
63856 Bessenbach
Phone +49 6095 301-617
Telefax +49 6095 301-102
Mobile +49 170 306 64 97
[email protected]
www.safholland.com
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