Download - Investor Presentation Schaltbau Holding AG
Investor PresentationSchaltbau Holding AG
November 2018 THE SMART EVOLUTION OF MOBILITY
Picture credits: iStockphoto LP
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
Business and Market Overview
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
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
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
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
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
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
Striving for Sustainable and Profitable Growth–Management Agenda 2017 & 9M 2018 Fulfilled
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
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
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
FY 2017
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
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
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
-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
-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
9M 2018
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
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
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
Strategic Agenda
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
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
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
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.
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
Backup Financial Figures FY 2017 and 9M 2018
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
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
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
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
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
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
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
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
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
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%
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
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
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