+ All Categories
Home > Documents > Investor Presentation Schaltbau Holding AG

Investor Presentation Schaltbau Holding AG

Date post: 07-Apr-2022
Category:
Upload: others
View: 9 times
Download: 0 times
Share this document with a friend
43
Investor Presentation Schaltbau Holding AG November 2018 THE SMART EVOLUTION OF MOBILITY Picture credits: iStockphoto LP
Transcript
Page 1: Investor Presentation Schaltbau Holding AG

Investor PresentationSchaltbau Holding AG

November 2018 THE SMART EVOLUTION OF MOBILITY

Picture credits: iStockphoto LP

Page 2: Investor Presentation Schaltbau Holding AG

Investor Presentation 2

Bringing Schaltbau back on track – experienced management team

Our common objectives

• Return to profit

• Stick to stringent cost management

• Secure financing capabilities

Dr Albrecht Köhler

CEO (since May 2018)

• Freelance interim CEO / COO (2016-18)

• Deputy CEO GAZ Group (2014-16)

• Managing Director Knorr Bremserolling stock bus. unit (2000-14)

• Leading general management and operations roles at Dt. / Daimler Benz Aerospace (1989-1999)

Thomas Dippold

CFO (since Jan 2017)

• CFO Faber-Castell AG (2014-16)

• CFO Semikron International (2008-14)

• Head of Controlling SCHOTT AG (2002-08)

Dr Martin Kleinschmitt

CRO (since Aug 2017)

• Partner at Noerr LLP and CEO Noerr Consulting AG

• Vice Chairman of the Board SAF-HOLLAND S.A.

• Interim management of various SMEs as CFO/CRO (since 2001)

• CFO Herlitz AG (1998-2000)

Executive Board November 2018

Page 3: Investor Presentation Schaltbau Holding AG

Business and Market Overview

Page 4: Investor Presentation Schaltbau Holding AG

4

Business overview Schaltbau Group

DC technology for trains, e-mobility and next-generation energy, driver desk equipment

~25%*

* Segmental sales split based on FY 2018 forecast, pre consolidation, rounded to the nearest 5% multiple

Investor PresentationThe Schaltbau Group at a glance

Door systems for trains, buses and automotive

~60%* **

Level crossing systems, point heating systems, shunting equipment

~15%*

November 2018

Mobile Transportation Technology (MTT) Stationary Transport Technology (STT)Components (COM)

SCHALTBAUConnect Contact Control

BODEThe Door

PINTSCHPINTSCHSafety for Rail

SCHALTBAUHOLDING

** Bode Group represents ~45% of Schaltbau Group’s FY 2018 forecast sales

Page 5: Investor Presentation Schaltbau Holding AG

5

Snapshot of Schaltbau Subgroup

Investor Presentation

• High-performance DC switching-technology for trains, e-mobility and next-generation energy

• State-of-the-art driver desk equipment

• High share of international sales, broad customer distribution

• Has developed from a pure component supplier to an application specialist providing components, assembly and service

• Highly efficient operations

• Performed very well in 2017 and 9M 2018, high order intake with strong and sustainable margins

~25% of Group sales*

Key operating entities

* FY 2018 forecast, pre consolidation, rounded to the nearest 5% multiple

November 2018

COM MTT STT

Member of the Schaltbau Group

SCHALTBAUConnect Contact Control

Page 6: Investor Presentation Schaltbau Holding AG

6

Snapshot of Bode Subgroup

Investor Presentation

• Established #3 player in an oligopolistic market, strong train door systems quality track record and best-in-class products

• Customer range has been expanded by leveraging train door system experience into bus and automotive applications such as Deutsche Post DHL’s e-mobility vehicle StreetScooter

• Service organisation with high flexibility

• Polish subsidiary Rawag contributes train windows & interiors and provides additional production capacity

• Reorganisation of production processes well underway, will significant efficiency gains in sight

• Performance improved significantly in Q4 2017 and 9M 2018, good order intake

~45% of Group sales* **

Key operating entities November 2018

BODEThe Door

* FY 2018 forecast, pre consolidation, rounded to the nearest 5% multiple ** Number does not include contribution of Alte, Sepsa and Refurbishment to MTT segmental sales

COM MTT STT

Member of the Schaltbau Group

Page 7: Investor Presentation Schaltbau Holding AG

7

Snapshot of Pintsch Subgroup

Investor Presentation

• Established #3 player in various oligopolistic submarkets such as level crossings, shunting equipment and point heating systems

• Rail infrastructure market offers significant growth potential and major innovation opportunities related to digitalisation and interconnection of field elements and systems (e. g., point diagnostics)

• Improvement of terms & conditions with large customers ongoing

• Stronger focus on key product portfolio

• Consolidation of 3 sites into one major operations centre with roadmap established

• Performance improved significantly in Q4 2017 and 9M 2018, order intake shows volatility

~15% of Group sales*

Key operating entities November 2018

PINTSCHSafety for Rail

COM MTT STT

Member of the Schaltbau Group

* FY 2018 forecast, pre consolidation, rounded to the nearest 5% multiple

Page 8: Investor Presentation Schaltbau Holding AG

Megatrends drive sustainable growth in global rail markets

Market and competitive environment 8

Megatrends

Digitisation / Automation

Urbanisation

Emission reductions

Connectivity

Electrification / E-mobility

Safety

Globalisation / China

Regulation and liberalisation

Rolling stock

Components / Mobile Transportation Technology

Infrastructure & Rail control

Stationary Transportation Technology

Regional market growth(1)(3)

• Western Europe: ~2.2% • Asia / Pacific: ~2.5% • NAFTA: ~3.1% • CIS: ~2.7%• Eastern Europe: ~2.7% • Africa / ME: ~5.2% • Latin America: ~4.8%

Source: Unife, Roland Berger(1) Average annual market growth from 2015-17 until 2021-23 over six years (2) Average annual market 2015-2017 (3) Total rail market: Rolling stock, infrastructure, rail control, services and turnkey management

• Market growth:(1) ~2.6%

• Market size:(2) ~€53bn

• Market growth:(1) ~2.9%

• Market size:(2) ~€46bn

Investor Presentation November 2018

BODEThe Door

SCHALTBAUConnect Contact Control

PINTSCHPINTSCHSafety for Rail

Page 9: Investor Presentation Schaltbau Holding AG

Railway market with oligopolistic supplier structure in many segments

Investor Presentation 9

Source: UNIFE, Company information (1) Total average annual rail market 2015-2017 (2) Incl. Hitachi Rail, Stadler, CAF, Pesa; ABB and Thales Transport not considered (mainly in infrastructure or control command and signalling technology)(3) Services, rail control, turnkey management (4) Combination of GE Transportation and Wabtec businesses still subject to regulatory approvals and other customary closing conditions

Overall rolling stock OEMs in the rail market Selected suppliers in the Schaltbau rolling stock market

Other OEMs(2)€163bn(1)

3.

4.

5.

6.

7.

8.

9.

10.

1.

2.

49%Other(3)

Market and competitive environment

19%Infrastructure

Market size ~€53bn

November 2018

c. 15%

c. 5%

c. 5%

c. 5%

< 5%

32%Rolling stock

/+(4)

BODEThe Door

SCHALTBAUConnect Contact Control

Page 10: Investor Presentation Schaltbau Holding AG

Striving for Sustainable and Profitable Growth–Management Agenda 2017 & 9M 2018 Fulfilled

Page 11: Investor Presentation Schaltbau Holding AG

11

Management agenda 2017 & 9M 2018 fulfilled: higher financial flexibility for ongoing restructuring activities and organic growth in core business areas

Key developments

Strengthening of future competitiveness

Stabilisation of operative business

Stabilisation of financial situation

Major cost reduction programmes initiated

Investments mainly into mobility/logistics applications and further rolling stock development

Digitisation: product development to be increasingly aligned towards customers needs

Extended business model: services for the entire lifecycle of rolling stock and commercial vehicles

Focus on local presence in international markets

Sound order intake, revenue and EBIT development since Q3 2017

Orders at hand at the end of 9M 2018 at decent level

Divestiture of non-core industrial brakes business (Pintsch Bubenzer) effective 1 March 2018

Two successful capital increases in May 2017 and February 2018

Reduction of short- and mid-term financial debt

Optimisation of production and logistic processes

o “Fit for future” programs at Bode and Rawag

o “On time” program at Alte

Strict focus on reduction of personnel cost and material expenses

Reduction of complexity of Group organisation, improved steering and limitation of risks

Restructuring agreement in STT (Pintsch) for 2018 and 2019, total savings of € 4 million

Investor Presentation November 2018

Page 12: Investor Presentation Schaltbau Holding AG

Restructuring roadmap Schaltbau: Major milestones successfully achieved – further road to go

Create financial headroom

Stabilise operational performance

Achieve satisfactory debt level

Selective investments

Ensure profitability on market level

Step up investments in market oppor-tunities and digital business models

2017 2018 2019 2020

REDUCE DEBT

REDUCE COSTS

EXPLOIT GROWTH OPPORTUNITIES

REDUCE COMPLEXITY

2018 – 2019 2019 – 20202017 – 2018

Key developments 12

Investor Presentation November 2018

Page 13: Investor Presentation Schaltbau Holding AG

13

Comprehensive restructuring measures initiated

Investor Presentation

• Alte: Expansion of after sales business, new business with composites for interiors,

purchase price reduction & quality management

• Bode: Restructuring of production concept & production control (‘state-of-the-art production’),

general purchase price reductions

• Rawag: Efficiency increase / reduction of personnel cost ratio,

raising value for the customer through expanded module offering

• Personnel adjustments, restructuring of central functions (e.g. Controlling)

• SPII: Execution of order for >300 trains (Italian prototype),

expansion of services & after-sales business

• Pintsch Tiefenbach: Relocation of production site Sprockhövel to Dinslaken (end of 2019)

• Pintsch Bamag: Improvement of terms and conditions with large customers,

efficiency increase in production through lean management

Operational restructuring measures

Selected measures Current status

Mobile

Transportation

Technology

Components

Stationary

Transportation

Technology

Holding

• Xi’an: Planned expansion of refurbishment & services business

Group-wide procurement optimizationGroup

Key developments November 2018

BODEThe Door

PINTSCHSafety for Rail

SCHALTBAUConnect Contact Control

SCHALTBAUHOLDING

Page 14: Investor Presentation Schaltbau Holding AG

FY 2017

Page 15: Investor Presentation Schaltbau Holding AG

15

Sales and earnings targets 2017 (as adjusted over time) achieved

Financials – FY 2017

Order intake+7.8% vs. 2016

€ 594.0 million

Sales+1.5% vs. 2016

€ 516.5 million

EBIT€ 2.4 million before one-off effects

One-off effect of revaluation of Schaltbau Sepsa: € -24.2 million

Goodwill impairment Schaltbau Pintsch Bubenzer: € -1.1 million

€ -23.0 million reported

Investor Presentation November 2018

Page 16: Investor Presentation Schaltbau Holding AG

Order intake grows by 7.8%

Mainly driven by Mobile Transportation Technology, also impacted by a full-year contribution from Schaltbau Sepsa (consolidated since 30 September 2016) and relocation of the Refurbishment business (was part of Stationary Transportation Technology before)

Very positive order intake development in Components

Significant decrease of order intake in Stationary Transportation Technology due to lower order placements in Germany as well as a more conservative approach on international projects

Order book increases by 18.3% to € 508.3 million (end of 2016: € 429.8 million)

Strong order intake in FY 2017 mainly due to contribution from Mobile Transportation Technology

Financials – FY 2017

263333

158114

130146

0

100

200

300

400

500

600

700

800

1 2

551594

2016 2017

16

Order intake in € million

Mobile Transportation Technology Stationary Transportation TechnologyComponents

Investor Presentation November 2018

Page 17: Investor Presentation Schaltbau Holding AG

35

42

23Sales 2017 by market in %

Germany

Rest of Europe

Rest of World

222265

149121

138 131

0

100

200

300

400

500

600

700

1 2

Sales up by 1.5%

Significant increase in second half of 2017 mainly due to completion of major projects

Slight decrease in comparable sales of 4% mainly driven by strong decline in industrial brakes volume (Pintsch Bubenzer) and a lower volume in level crossing technology

Full-year contribution of Schaltbau Sepsa offsets organic decline

FY 2017 sales increase in line with management expectations

Financials – FY 2017

509 517

2016 2017

17

Sales in € million

Germany

Rest of Europe

Rest of world

Investor Presentation November 2018

Mobile Transportation Technology Stationary Transportation TechnologyComponents

Page 18: Investor Presentation Schaltbau Holding AG

-14.5

-25

-20

-15

-10

-5

0

5

10

15

20

25

EBIT EBITDA

EBITDA improved year-on-year

Reported EBIT at € -23.0 million, EBIT margin at -4.4%

One-off effect of revaluation of Schaltbau Sepsa amounting to € -24.2 million

Goodwill impairment Schaltbau Pintsch Bubenzer amounting to € -1.1 million

Additional expenses for restructuring activities of around € 8 million

Extraordinary Schaltbau Sepsa revaluation impacts Group EBIT in 2017

Financials – FY 2017

-2.8%

+3.9%

2016 2017

18

EBIT and EBITDA in € million

-4.4%

+3.2%

16.420.1

-23.0

Investor Presentation November 2018

Page 19: Investor Presentation Schaltbau Holding AG

-12.0

-49.6

-15.8

-51.7-60,0

-50,0

-40,0

-30,0

-20,0

-10,0

0,0

10,0

20,0

Group net profit Schaltbau Shareholders

Strong decline in Schaltbau Group’s net profit mainly driven by:

Decreased EBIT

Higher interest expenses due to higher interest margins as well as higher drawing of existing credit lines

One-time effects related to refinancing activities

Net result 2017 impacted by higher financing costs

Financials – FY 2017

€ -2.61 per

share

€ -8.04 per

share

2016 2017

19

Net profit in € million

Investor Presentation November 2018

Page 20: Investor Presentation Schaltbau Holding AG

9M 2018

Page 21: Investor Presentation Schaltbau Holding AG

Strong order intake of € 420.2 million in 9M 2018

Like-for-like, overall increase by 2.3% or € 8.9 million, driven by Stationary Transportation Technology (Q2 2018 win of train formation unit project) and Components

Order intake in Mobile Transportation Technology declines slightly, but still in line with expectations

Order book at end of 9M 2018 at € 515.5 million, up 1.3% vs. € 509.0 million at end of 9M 2017

Order intake increases like-for-like

Financials – 9M 2018

251 236 228 216

8570

45 60

109115

109 115

0

50

100

150

200

250

300

350

400

450

500 444420

9M 2017

Investor Presentation 21

External order intake in € million**

Mobile Transportation Technology Stationary Transportation TechnologyComponents

9M 20179M 2018 9M 2018

381390

* Excluding Pintsch Bubenzer and Sepsa contributions: Pintsch Bubenzer was deconsolidated on 1 March 2018, Sepsa was classified as held for sale in November 2017

November 2018

Like-for-like*Reported

** Figures may not add up due to rounding

Page 22: Investor Presentation Schaltbau Holding AG

190221

162199

7744

42

36

96 112

96

112

0

50

100

150

200

250

300

350

400

450

Sales grow by 3.6% vs. 9M 2017, an increase of € 13.1 million

Significant volume increase in Mobile Transportation Technology (in particular at Bode)

Strong sales volume development in Components

Sales in Stationary Transportation significantly below prior year, mainly due to sale of Pintsch Bubenzer in Q1 2018

45.6% of total sales in 9M 2018 generated in European countries other than Germany, and 18.2% outside of Europe

Sales growth driven by increases in Mobile Transportation Technology and Components

Financials – 9M 2018

363376

Investor Presentation 22

External sales in € million**

9M 20179M 20189M 2017 9M 2018

300

347

* Excluding Pintsch Bubenzer and Sepsa contributions: Pintsch Bubenzer was deconsolidated on 1 March 2018, Sepsa was classified as held for sale in November 2017

November 2018

Like-for-like*Reported

** Figures may not add up due to rounding

Mobile Transportation Technology Stationary Transportation TechnologyComponents

Page 23: Investor Presentation Schaltbau Holding AG

9M 2018 EBIT at € -1.5 million (€ -16.4 million in 9M 2017), adjusted by one-off effects at € 12.3 million / 3.3% of sales

Increase is driven by

Higher sales volume, positive impact from product mix, and productivity improvements in Components

Positive effects from restructuring activities

€ 12.0 million Sepsa impairment in Q3 2017

Earnings per share at € -1.39 (9M 2017: € -6.01)

Significant EBIT improvement

Financials – 9M 2018 Investor Presentation 23

-4000

-2000

0

2000

4000

6000

8000

10000

12000

14000

9M 2018 EBIT adjustments in € million

EBIT reported

Impair-ment

LED tech-nology

-1.5

+1.6+0.6

+2.6

-7.1

Decon-solidation

Pintsch Bubenzer

Restruc-turing

expenses

Releaseof PSD

provisions

EBIT before exceptional

items

November 2018

+3.8

Add. IFRS 5 effect Sepsa

real estate

12.3

+10.0

+2.3

Impair-mentAlte

Impair-ment

Bode UK

14

2

0

12

10

8

6

4

-2

-4

Page 24: Investor Presentation Schaltbau Holding AG

Strategic Agenda

Page 25: Investor Presentation Schaltbau Holding AG

Investor Presentation 25November 2018

Strategy

• Decentralised income statement responsibility

• Standardised reporting from local management and review by Group Executive Board

• Coordination of intra-Group aspects via management committee

• State-of-the-art DC tech & driver desk equipment

• Application of know-how from serving the rail industry to grow further in dynamic fields such as e-mobility and next-gen energy

• Ongoing process differentiation: pick/configure/design-to-order, based on volume and complexity

• Expansion into North America, Russia, China, maybe India, with efforts coordinated with other Schaltbau Group entities where feasible; centralised competence centres along with local assembly and service

• State-of-the-art door systems for trains, buses and automotive, train interiors

• Further integration of digital functionality such as passenger ticketing and entertainment & preven-tive maintenance, ramp in after-sales business

• Standardisation of door drive modules, redesign of production processes and better utilisation of capacities available in Poland and Turkey

• Expansion into North America and Asian markets with efforts coordinated with other Schaltbau Group entities where feasible

• State-of-the-art level crossing systems, point heating systems, shunting equipment and other rail infrastructure with focus on German market

• Strong relationship with Deutsche Bahn as the key customer

• Efficiency gains by ongoing restructuring and consolidation of three Pintsch sites into one main location

• Focus on core products and selective exploitation of new business opportunities

Schaltbau Group management

BODEThe Door

SCHALTBAUConnect Contact Control

PINTSCHPINTSCHSafety for Rail

High-margin cross-industry DC technology specialist

Efficient door system provider in high-growth market

Sustainable high-quality rail infrastructure player

Page 26: Investor Presentation Schaltbau Holding AG

Sales guidance 2018 confirmed

Sales guidance for 2018 with a range of € 480-500 million (without Sepsa and taking into account the sale of Pintsch Bubenzer in Q1 2018)

Organic growth of around € 40 – 60 million expected for FY 2018:

Strong growth in Mobile Transportation driven by Bode Group

Positive sales outlook for Component business

Investor Presentation 26

52

490

517

Pintsch Bubenzer*

Sales FY 2017

-41

Sales guidanceFY 2018

-37

Sepsa** Organic growth

In € million

€ 480-500 million

* Adjusted by FY 2017 and 01-02/2018 sales** Adjusted by FY 2017 sales

November 2018

Page 27: Investor Presentation Schaltbau Holding AG

Outlook (in € million) Guidance FY 2018* 2017

Order intake 500-520** 594.0

Sales 480-500** 516.5

Mobile Transportation Technology

Significant improvement

265.3

Stationary Transportation Technology

Significant decline 120.5

Components Slight increase 130.7

EBIT margin Around 3%** 0.5%***

Targets 2018 confirmed

* Compared to FY 2017** Excluding Pintsch Bubenzer, Sepsa and one-offs*** Excluding extraordinary items

Solid order book from stabilised order intake in 2017 serves as stable basis for profitable growth

Initial positive effects from restructuring measures implemented in the financial year 2017 expected to contribute to an improvement in EBIT margin:

Increase in profitability through optimized production processes and improved purchase conditions should lead to savings in material and personnel expenses

Non-operating special effects from extraordinary impairments arising out of restructuring measures or disposal of subsidiaries will possibly continue to occur in 2018

Investor Presentation 27November 2018

Page 28: Investor Presentation Schaltbau Holding AG

Portfolio development 2018 vs. 2017

Investor Presentation 28

-15

-5

5

15

25

-20 -10 0 10 20 30

Pro

fita

bili

ty i

n %

Growth in %

November 2018

2017

2017

2017

2018

2018

2018

Schaltbau subgroupProfitable growth

Bode subgroupGrowth + profitability

Pintsch subgroupProfitability increase

Bubbles show 2017/2018 E profitability and 2017/2018 E year-on-year revenue growth. Bubble size represents significance for Schaltbau, based on revenue share. Green arrows represent expected development trend 2018 vs. 2017.

Page 29: Investor Presentation Schaltbau Holding AG

Investor Presentation 29

Schaltbau Vision 2020

Operational excellence

throughout the organizationDisposal of non-core business

State-of-the-art product and service offering in

terms of quality and innovation

Overall increased share of service

and international revenues

2020

Our clear goal is to focus Schaltbau Group on its strategic core competencies and to consistently increase profitability.

That is why we intend to dispose non-core business areas as well as those which are not sustainably profitable.

These alignments should result in reduced revenues and simultaneously increased profitability until 2020, enabling Schaltbau to return to historical profitability levels and future growth.

November 2018

Page 30: Investor Presentation Schaltbau Holding AG

Backup Financial Figures FY 2017 and 9M 2018

Page 31: Investor Presentation Schaltbau Holding AG

Order intake up € 70.2 million vs. 2016

Positive development at rail door systems as well as interiors for rail vehicles

Significant new orders, e. g. from Hitachi Rail Italy for deliv-ery of 39 vehicles including options of up to 300 vehicles

Sales growth of € 43.1 million vs. 2016

Full-year contribution from Schaltbau Sepsa (+ € 19 million) and reclassification of Schaltbau Refurbishment (+ € 12 million)

Organic business growth at Rawag and Alte

EBIT margin of -10.0% vs. +2.3% in 2016

Revaluation of Schaltbau Sepsa (€ 24.2 million)

Negative operating contribution from Schaltbau Sepsa Group (€ -8.7 million) and other foreign subsidiaries almost compensated by positive margin at Bode and Rawag

Mobile Transportation TechnologyFY 2017 growth driven by consolidation effects

Financials – FY 2017

263.2

222.2

333.4

265.3

0

50

100

150

200

250

300

350

400

Order intake Revenue

2016 2017

5.2

-30

-26

-22

-18

-14

-10

-6

-2

2

6

10

EBIT

-26.4

+26.7% +19.4%

31

Order intake and revenue in € million EBIT in € million

*

* Operating EBIT 2017: € -2.2 million; effect from revaluation of Schaltbau Sepsa: € - 24.2 million

Investor Presentation November 2018

BODEThe Door

Page 32: Investor Presentation Schaltbau Holding AG

Significantly lower order intake volume

Decline in new business with level crossing technology as well as railway signal technology (axle counting and shunting technology)

Sales decrease by € 28.8 million vs. 2016

Mainly driven by rail infrastructure products and brake systems

Shift of Refurbishment business (€ 11.9 million) to MTT

EBIT margin of -4.6% (FY 2016: -18.8%)

Cost-cutting measures compensate negative volume effects to just a small extent

Impairment at Schaltbau Pintsch Bubenzer (€ -1.1 million)

Provisions for contingent losses high in 2016 (€ 16.4 million)

Stationary Transportation TechnologyWeak order intake and revenue development in FY 2017

Financials – FY 2017

157.8149.3

114.3120.5

0

20

40

60

80

100

120

140

160

180

Order intake Revenue

2016 2017

-27.6% -19.4%

32

-28.1

-5.5

-40

-35

-30

-25

-20

-15

-10

-5

0

5

10

EBIT

Order intake and revenue in € million EBIT in € million

Investor Presentation November 2018

PINTSCHSafety for Rail

Page 33: Investor Presentation Schaltbau Holding AG

Order intake clearly improved (€ +16.2 million)

Higher order intake volume for snap-action switches for rail vehicles both in the new vehicles business and in after-sales business

Positive development at SPII in Italy; stabilisation of business in China despite investment shift from locomotives and passenger coaches to metro systems; North America below prior year due to project delays

Sales decrease of € 6.8 million vs. 2016

Significantly lower revenue at SPII partially offset by sales increases at Schaltbau GmbH

EBIT margin improves to 16.4% (2016: 12.5%)

Moderate sales decrease overcompensated by positive product mix effects and improved cost structure

ComponentsStrong business performance in FY 2017

Financials – FY 2017

130.1137.5

146.3

130.7

0

20

40

60

80

100

120

140

160

180

Order intake Revenue

2016 2017

+12.5% -4.9%

33

-28.1

17.2

21.4

0

5

10

15

20

25

30

EBIT

Order intake and revenue in € million EBIT in € million

+24.4%

Investor Presentation November 2018

SCHALTBAUConnect Contact Control

Page 34: Investor Presentation Schaltbau Holding AG

Non-current assets € 40.0 million below prior year, reduction of both tangible and intangible assets

Depreciation on Schaltbau Sepsa due to classification as “assets held for sale” (€24.2 million)

Classification of Pintsch Bubenzer as “assets held for sale” (€ 16 million)

Foundation of joint venture Zhejiang Yonggui Bode Transportation Equipment in China; payment of initial capital contribution

Current assets significantly higher (€ +32.9 million):

Classification of Schaltbau Sepsa and Schaltbau Pintsch Bubenzer as “assets held for sale”

€ 15.6 million cash inflow from capital increase in May 2017 reported under other receivables and assets

Slight decrease in Group assets in FY 2017 due to divestiture effects

Financials – FY 2017

195155

264297

0

100

200

300

400

500

600

1 2

Non-current Current

459 452

34

Assets in € million

End of 2016 End of 2017

Investor Presentation November 2018

Page 35: Investor Presentation Schaltbau Holding AG

Higher non-current liabilities due to restructuring of financial debt: syndicated loan line amounting to € 100.0 million and debenture stock classified as long-term liabilities

Current liabilities down to € 198.5 million due to the afore-mentioned reclassifications; bridge financing of € 25.0 million and current account liabilities classified as short-term

Equity decreases by €36.5 million despite €15.5 million capital increase, due to negative net group result; equity ratio of 15.6% (end of 2016: 23.3%)

Net financial debt increases to €158.4 million (end of 2016: €148.0 million)

Leverage (net financial debt/annual EBITDA) at 7.9 (2016: 9.1); mid-term goal: Further reduction of net financial debt relative to EBITDA to reach a leverage figure around 3

In Q1 2018, the situation improved significantly, driven by the sale of Pintsch Bubenzer and a major equity injection

Equity & liabilities: negative group result impacts equity in FY 2017

Financials – FY 2017

10771

111 183

241 199

0

100

200

300

400

500

600

1 2

Equity Non-current Current

End of 2016End of 2017

35

459 452

Liabilities in € million

End of 2017

Investor Presentation November 2018

Page 36: Investor Presentation Schaltbau Holding AG

0

5

10

15

20

25

30

35

40

45

50

Cash flow 2017 in million EUR

Thereof: 15.5 m. EUR escrow account for debt redemption

CF op. CF invest CF fin. Currency Cash EoFY 2017

Cash EoFY 2016

Positive operating cash flow (€ +10.5 million) reflects stringent working capital management (operating cash flow in FY 2016: € +25.8 million)

Cash outflow for investments increases vs. 2016 (€ -18.2 million), proceeds from capital increase deposited on escrow account (€ 15.6 million)

Financing cash flow 2017 mainly reflects:

€ 15.5 million cash inflow from capital increase and € 4.1 million from new loans

€ 6.0 million repayment of loans and € 11.4 million cash outflow for interest payments

Positive operating cash flow in FY 2017

Financials – FY 2017 36

Free cashflow= CF op.+CF invest.

+10.5

31.2

+12.2

-34.3

+5,7 -0,9

Investor Presentation November 2018

Page 37: Investor Presentation Schaltbau Holding AG

228.6215.9

22.9

20.5

0

20

40

60

80

100

120

140

160

180

200

220

240

260

9M 2017 9M 2018

External order intake down € 15.1 million

Like-for-like decrease of roughly € 12 million, but still in line with expectations

External sales growth of € 30.4 million

Significant increase driven by Bode Group

EBIT at € -16.0 million

9M 2017 impacted by a € 12.0 million Sepsa impairment

9M 2018 performance impacted by

Impairment of Alte and Bode UK (€12.3 million)

IFRS 5 effects from purchase of Sepsa real estate in Q3 2018 (€ 3.8 million)

Negative operating contribution from Alte (lower sales volume, additional temporary workers, warranty expenses, ramp-up costs)

Further improvements in productivity expected in the coming quarters

Mobile Transportation TechnologySales growth driven by positive development at Bode Group

Financials – 9M 2018 Investor Presentation 37

-16.2 -16.0

-20,0

-18,0

-16,0

-14,0

-12,0

-10,0

-8,0

-6,0

-4,0

-2,0

0,0

9M 2017 9M 2018

-6.0%

External order intake and sales in € million* EBIT in € million

162.6

199.2

27.5

21.3

9M2017 9M 2018

SepsaLike-for-like

Sales

+16.0%

Order intake

251.5

236.4

190.1

220.5

November 2018

* Figures may not add up and/or match exactly with figures consolidated on Group level, due to rounding

BODEThe Door

Page 38: Investor Presentation Schaltbau Holding AG

External order intake declines by >15%, related to the sale of Pintsch Bubenzer

Like-for-like, external order intake is up >30%, largely due to winning a major order for a train formation unit

External sales decrease by >40%, mainly due to the disposal of Pintsch Bubenzer

Sales like-for-like down by € 6.0 million

Lower sales volume at Pintsch Bamag due to several customer push-outs in rail infrastructure, mostly to be recovered until year-end

EBIT just above the base line

Improvement largely due to the release of provisions for onerous contracts for the PSD project in Brazil and cost reductions, set off in part by impairment on the LED technology business

Restructuring agreement with workers’ counsel, total savings of € 4.0 million for 2018 and 2019

Further restructuring and PSD closing benefits will materialise in the next quarters

Stationary Transportation TechnologyStabilisation and first improvements

Financials – 9M 2018 Investor Presentation 38

41.835.8

35.7

8.2

9M 2017 9M 2018

External order intake and sales in € million*

BubenzerLike-for-like

Sales

45.2

60.1

39.8 9.9

0

10

20

30

40

50

60

70

80

90

9M 2017 9M 2018

Order intake

85.0

70.0

77.5

44.0-17.6%

-43.2%

November 2018

-7.0

+0.2

-8,0

-6,0

-4,0

-2,0

0,0

2,0

9M 2017 9M 2018

EBIT in € million

* Figures may not add up and/or match exactly with figures consolidated on Group level, due to rounding

PINTSCHSafety for Rail

Page 39: Investor Presentation Schaltbau Holding AG

External order intake increases

External sales strongly improved by € 16.4 million

Ongoing high demand of connectors, snap-action switches and contactors

EBIT improves to € 22.4 million

Positive development driven by high sales volume, favorable product mix and productivity improvements

Strong EBIT level expected to be maintained throughout 2018

ComponentsOngoing strong operational performance

Financials – 9M 2018

108.6

95.8

115.7112.2

0

20

40

60

80

100

120

Order intake Sales

9M 2017 9M 2018

+17.1%

Investor Presentation 39

External order intake and sales in € million* EBIT in € million

15.9

22.4

0

5

10

15

20

25

EBIT

+6.5%

November 2018

* Figures may not match exactly with figures consolidated on Group level, due to rounding

SCHALTBAUConnect Contact Control

Page 40: Investor Presentation Schaltbau Holding AG

Equity increases by € 31.8 million following the successful capital increase in February 2018; equity ratio at 25.4% at the end of 9M 2018 (up from 15.6% at year-end 2017)

Reduction of net debt by € 46.7 million in 9M 2018

Repayment of € 25.0 million in bridge financing

Additional repayment of current account liabilities

Further reduction of net debt expected in Q4 2018

Equity base substantially strengthened, net debt significantly reduced

Financials – 9M 2018 Investor Presentation 40

Restructuring of equity and net debt in € million

70.6

102.4

0

20

40

60

80

100

120

Equity

31/12/2017 30/09/2018

+45.1%

November 2018

158.4

111.7

0

20

40

60

80

100

120

140

160

180

Net debt

31/12/2017 30/09/2018

-29.5%

Page 41: Investor Presentation Schaltbau Holding AG

Positive free cash flow driven by

€ 29.3 million cash inflow from sale of Pintsch Bubenzer

€ 15.6 million release of funds from an escrow account

Positive effects set off in part by higher working capital

Financing cash flow in 9M 2018 mainly reflects:

€ 46.5 million cash inflow from capital increase

€ 70.5 million cash outflow due net repayment of loans

Cash flow in 9M 2018 is affected by sale of Pintsch Bubenzer, capital increases and higher working capital

Financials – 9M 2018 Investor Presentation 41

-29.8

+5.0

-25.8

+7.4

-21.4

-14.0

Free cash flow

Cash flow from financing activities

Cash flow

9M 2017 9M 2018

In € million

November 2018

*

* Total cash flow includes change in cash funds due to exchange rate fluctuations

Page 42: Investor Presentation Schaltbau Holding AG

Schaltbau Holding AGHollerithstrasse 581829 MunichGermany

IR contactWolfgang GüssgenHead of IR & [email protected] +49 89 93005-209

Financial calendar and contact details

2019

• 2 April 2019 Annual Report 2018

• 30 April 2019 3M 2019 Interim Statement

• 31 July 2019 6M 2019 Interim Report

• 31 October 2019 9M 2019 Interim Statement

Picture credits: iStockphoto LP

Page 43: Investor Presentation Schaltbau Holding AG

Disclaimer

Investor Presentation 43

This presentation contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of

Schaltbau Holding AG and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from

those expressed or implied in such statements. Actual results, performance or events may differ materially from those described herein due to factors affecting

Schaltbau Holding AG such as, among other things, changes in the general economic and competitive environment, capital market risks, currency exchange

rate fluctuations and competition from other companies, and changes in international and national laws and regulations, in particular with respect to tax laws and

regulations. Schaltbau Holding AG does not assume any obligation to update any forward-looking statements.

The information contained in this presentation is for background purposes only and does not purport to be full or complete. No reliance may be placed, for any

purpose, on the information contained in this announcement or its accuracy or completeness. The information in this presentation is subject to change.

Appendix November 2018


Recommended