11-2019 Investor Presentation Q3 2019 FINAL · Investor Presentation I 7 World...
Transcript of 11-2019 Investor Presentation Q3 2019 FINAL · Investor Presentation I 7 World...
Rosenbauer Group
Person
Date
Investor & Analyst Presentation I Q3 2019 Financial Figures
Sebastian Wolf I CFO
November 12, 2019
Rosenbauer Group
Investor Presentation I 2
Disclaimer
This presentation was produced by Rosenbauer International AG(Rosenbauer for short) for informational purposes only. Despite thegreatest care taken by Rosenbauer, no guarantee is given for thecorrectness and completeness of the content.
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Agenda
1. Rosenbauer Group at a glance
2. Q3 2019 financial figures
3. Outlook
Q&A
Rosenbauer Group at a glance
Investor Presentation I 5
Rosenbauer Group equity story
Global market leader■ Full-range supplier of fire fighting
equipment and preventive fire protection
■ World´s largest producer of fire fighting
vehicles
■ Global market volume: ~ 21,100 vehicles
(2017), ~ 15% RB market share
■ Present in around 130
countries
■ 9 Production sites in Europe,
3 in the US and 4 in Asia
■ Around 280 sales partners
worldwide
Unrivalled worldwide networkInnovation leader ■ High R&D expenditures,
holding > 180 patents
■ First mover pioneering
sustainability technologies
■ Lighthouse project “Concept
Fire Truck”
Resilient business model ■ Above-the-market growth over the last 10
years
■ Sustainable dividend policy, safe dividend
payments
■ Broad diversification by geographies and
products
Investor Presentation I 6
Global network of production facilities,
sales and service offices
AUSTRIALeonding
Neidling
Graz
Telfs
FRANCEChambéry
GERMANYKarlsruhe
Luckenwalde
Mogendorf &
Gladbeck
Viersen
ITALYRovereto
POLANDWarsaw
RUSSIAMoscow
EUROPESLOVENIARadgona
SPAINLinares
Madrid
SWITZERLANDOberglatt
UKHolmfirth
Lyons / South-Dakota
Fremont / Nebraska
Wyoming / Minnesota
Rosenbauer America
AMERICA
SAUDI-ARABIADschidda
KAEC
Riad
SOUTH-AFRICAHalfway House
UNITED ARAB EMIRATESDubai
MIDDLE EAST/
AFRICA
CHINAKunming
SINGAPORESingapore
PHILIPPINESMandaluyong City
BRUNEI
AUSTRALIABrisbane
ASIA/
AUSTRALIA
Production
Sales / Service
Around 280 sales partners worldwide
Investor Presentation I 7
World firefighting vehicle market in 2017
■ Global annual volume € 4,250 million (2016: € 4.259 million)
■ Appr. 21,100 vehicles (2016: appr. 19,500)
■ Buyers are mainly public institutions
■ Rosenbauer Group worldwide No. 1
■ Share of revenues of the top-10-companies appr. 80%
0 100 200 300 400 500 600 700 800 900
Desautel / France (2017)
Iturri Group / Spain (2017)
Spartan / USA (2018)
Ziegler Group ***) / Germany (2017)
Magirus Group**) / Germany (2017)
NAFFCO / UAE (2016)
REV Group*) / USA (2017/18)
Morita Corp / Japan (2017/18)
Pierce Oshkosh / USA (2017/18)
Rosenbauer Group / Austria (2018)
Ranking of fire fighting vehicle manufacturer (revenue in € million)
*Owner of E One, KME, Ferrara
** Owner CNH Industrial Group
*** Owner CIMC / China
Source: Latest annual financial statements / estimates / (May 2019)
Investor Presentation I 8
Full-range supplier(Product segments and % of group revenues; as of Dec 31, 2018)
Municipal Vehicles
33%
Industrial Vehicles
12%
ARFF Vehicles
11%
Aerials
20%
Fire & Safety
Equipment
8%
Stationary Fire
Protection
3%
Firefighting
Components
3%
Customer Service
7%
Others: 3%
Investor Presentation I 9
Selected megatrends driving the firefighting
industry
■ Global warming
■ Higher scale of devastation from
hydrological and meteorological
incidents
■ Non-fire emergency calls to
become more relevant
■ Tighter rules on exhaust
emissions, local bans of diesel
cars
Neo ecology / Mobility Urbanization Silver Society / Gender Shift
■ Since 2007 more than half of
the world population lives in
cities
■ This portion will grow to 60% by
2030 and to 74% by 2050
according to the UN
■ Emergency vehicles will need to
have compact dimensions, high
agility and excellent navigation /
communication tools
■ Demographic development will
significantly influence the
availability of firefighters
■ In addition ‘individualization’
threatens volunteerism and
unpaid work
■ Redefinition of usability and
functionality of fire trucks and
other fire-fighting equipment
Investor Presentation I 10
Innovative CFT Technology anticipates
relevant megatrends
Features & functionality:
■ Adjustable ground clearance for easy access for driver and crew; easy driving in rough
terrain
■ One-button operation & focus on main functions simplify the operations
■ High-performance LED lighting provides 20 times more luminosity than conventional fire-
fighting vehicles
■ The CFT is equipped with WLAN access point and the Rosenbauer deployment
management system EMEREC
■ Two electric engines reduce noise and pollution; for a longer use a range extender is
additionally installed
Series production readiness:
■ Volvo Penta to adapt proven electronic driveline to the performance requirements of a fire
service application
■ “Innovation partnership” with Berlin Fire Department
■ Global market for innovative CFT technology to reach
around 3,200 vehicles in 2030, with 700 to 800 units
running in Europe already by 2025
■ Particular interest from members of the “C40 Cities
Climate Leadership Goals”
■ Market launch planned for 2021
100%
Rosenbauer
Investor Presentation I 11
Simulator – Product portfolio
Panther simulator ERDS simulator
New: Aerial Ladder Tactical Simulator■ Significant expansion of the simulator portfolio
■ Virtual reality simulator to practice the safe and proper put-up of aerial
ladders
■ Big selection of cities, operation sites and places of installation
■ Demanding trainings can be implemented in a more simple way, in shorter
time and at lower cost
■ Documentation and evaluation of training results
■ 100% safety for emergency personnel
■ Trainings on a virtual reality simulator contribute to the preservation of
climate and environment
Investor Presentation I 12
Rosenbauer at the Interschutz 2020
■ 15 -20 June 2020, Hanover(Capital Markets Day: June 16, 2020)
■ World´s leading trade fair for
firefighting and rescue services,
more than 150.000 visitors
■ Positioning as the No. 1 system
provider
■ Focus: City; with Municipal line-up
■ More than 30 vehicles on display
■ Digital solutions and simulators
■ Innovations in the field of personal
safety equipment
■ Preventive fire protection
■ 4,679 m2 in halls 27, 13 and in the
outdoor area
Q3 2019 financial figures
Investor Presentation I 14
Highlights
■ Rosenbauer Group expands business volume significantly in the first nine
months 2019, revenues increase by 11% to € 614.5 million
■ Especially shipments in North America, Central Europe and Asia turn out to be
higher, Near East with declines
■ Despite a strong operating performance EBIT is at € 15.1 million, while cost of
materials and personnel expenses are high in line with production
■ EBIT reaches € 9.9 million in Q3, which is twice as much as in the first half-year
■ Strong finish expected as profit generation speeds up
■ Order intake with € 784.1 million on the same level as last year ensuring a
high utilization of the production facilities
■ Order backlog of € 1,223.8 million marks a new all-time-high
■ Managing board increases target for total revenues to more than € 980 million,
EBIT margin to land at around 5.1% for the full year
Investor Presentation I 15
Financial figures
€ million 1-9/2017 1-9/2018 1-9/2019 � 2018/2019
Revenues 604.5 552.0 614.5 +11%
EBIT 14.8 17.0 15.1 1 -11%
EBIT margin 2.5% 3.1% 2.5% -
EBT 13.9 11.7 9.9 2 -15%
Net profit for the period 11.1 10.6 9.0 -15%
Cash flow from
operating activities-50.7 -83.4 -136.3 -63%
Without application of IFRS 16:
1) EBIT: 14.9 m€
2) EBT: 10.0 m€
Investor Presentation I 16
Revenues and EBIT quarterly
219.5
268.0
181.9
211.7 210.9
243.1
162.4
190.3199.3
357.4
175.8
218.8 219.9
365.3
8.5
19.6
5.8
12.1
6.3
1.1
8.9 7.0
31.8
2.13.1
9.9
34.9
Q3
/16
Q4
/16
Q1
/17
Q2
/17
Q3
/17
Q4
/17
Q1
/18
Q2
/18
Q3
/18
Q4
/18
Q1
/19
Q2
/19
Q3
/19
Q4
/19
Revenues EBIT
-3.1
€ million
Investor Presentation I 17
Revenue development
■ Rosenbauer Group
with significantly
increased revenues
in 1-9/2019
■ 4 out of 6 business
segments achieve
higher volumes
■ Area NOMA and Area
CEEU show
strongest gains
€ million
Area Revenue
Q3 201948.4 60.0 82.6 195.9
Group Revenues
Q3 20198% 10% 13% 32%
Group Revenues
Q3 201813% 12% 13% 28%
17.3
3%
3%
210.3
34%
31%
552.0+40.8 -21.6
-6.4 +7.9
+41.0 +0.8 614.5
1-9/2018 SFP 1-9/2019CEEU MENA NISA APAC NOMA
+11.3%
Investor Presentation I 18
EBIT development
NOMAMENA1-9/2018 CEEU NISA SFPAPAC 1-9/2019
Area EBIT
Q3 20197.4 -2.5 0.3 3.4 8.2 -1.7
Group EBIT
Q3 201949% -17% 2% 23% 54% -11%
Group EBIT
Q3 201821% 36% 0% 22% 32% -11%
■ High cost of
materials and
personnel expenses
weigh on EBIT
■ Areas CEEU and
NOMA improve in
line with volume
growth
■ Area MENA with a
sharp decline
CEEU MENA NISA APAC NOMA
€ million
17.0
+3.8 -8.6
+0.4 -0.4
+2.8 +0.1 15.1
-11.2%
Investor Presentation I 19
Accounting ratios
€ million / % Sep. 30, 2018 Dec. 31, 2018 Sep. 30, 2019� FY 2018/
H1 2019
Total assets 756.3 782.3 954.2 +22%
Equity ratio 29.7% 30.3% 24.4% 1 -
Capital employed (ø) 518.1 498.6 615.0 +23%
ROCE 3.3% 9.8% 2.5% -
Net debt 293.7 231.5 425.6 +84%
Gearing ratio 130.6% 97.6% 182.9% -
Without application of IFRS 16:
1) Equity ratio: 25.0%
Investor Presentation I 20
Trade Working Capital
TRADE WORKING CAPITAL€ m i l l i o n
Trade Working Capital€ million
1) Guidance 20192) adjusted by the effect from IFRS 15
433.2 2 Inventories 502.2
165.3 + Receivables 184.7
97.4 2 - Advance payments 98.8
61.0 - Trade payables 50.4
440.1 Trade Working Capital 537.7
Q3 2018 Q3 2019
■ Long throughput times of 8 to 12 months
■ Prepayments averaging 10%
■ Average payment term of 70 days
401.7440.1
537.7
847,6909,4
9801
47.4% 48.4%54.9%
0%
20%
40%
60%
80%
100%
120%
140%
160%
0
250
500
750
1000
Q1-3 2017 Q1-3 2018 Q1-3 2019
Trade Working Capital
Annual Revenue
Trade Working Capital / Annual Revenue
Investor Presentation I 21
13.9
16.9
11.811.3 11.0
10.210.7
11.512.5 12.6
Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019
Investments Depreciation and amortization
Investments
CAPEX, depreciation and amortization€ million
■ Modernisation Leonding, aerials production Karlsruhe
Outlook
Investor Presentation I 23
Order intake / backlog
Order intake/backlog
€ millionOrder intake Q3 2019
by Area (Q3 2018)
CEEU35% (30%)
NISA11% (9%)
MENA9% (13%)
NOMA20% (24%)
APAC22% (21%)
SFP3% (3%)
€ 784.1m
698,6
588,8654,4
789,9 784,1846,1
803,5 803,4
1.093,6
1.223,8
1-9/2015 1-9/2016 1-9/2017 1-9/2018 1-9/2019
Order intake Order backlog
Investor Presentation I 24
Outlook
■ Global economic growth will slow down further in 2019, according to the IMF
■ Worldwide economic activity remains weak, production activities decrease to levels as at the time of the
global financial crisis
■ Economic and geopolitical tensions curb world trade
■ The world fire service market follows with a delay of several months, full order books should make the
industry resilient
■ Procurement volumes in the North American fire service market could again well
exceed 4,000 vehicles this year
■ European fire service market continues to grow
■ A massive order book supports the high utilisation of capacity of the production sites
and gives Rosenbauer Group a strong visibility in the markets for the remaining quarter
and 2020
■ Strategy for organic growth will continue to be implemented consistently, focus on
local market shares and increase in efficiency
Thank you for your attention!
We are now ready to take your
questions.
Appendix
Investor Presentation I 27
Executive board
CTO
Daniel Tomaschko
Supply Chain Mgmt.,
Central Technics,
Center of Competence
Operations,
Stationary Fire
Protection
CFO
Sebastian Wolf
Audit, Controlling,
Accounting/Tax,
Treasury,
Legal & Compliance &
Insurance, Export
Finance, Investor
Relations/CSR,
IT
CSO
Andreas Zeller
Area CEEU
Area NISA
Area APAC
Area NOMA
Area MENA
Customer Service
Sales Administration
CEO
Dieter Siegel
Corporate Development,
Human Resources,
Strategy, Innovation &
Marketing,
Group Communication,
Fire & Safety Equipment
Product Management
Investor Presentation I 28
Segment reporting by Areas
CEEU: Central & Eastern Europe
NISA: Northern Europe, Iberia, South America, Africa
MENA: Middle East & North Africa
APAC: Asia, Pacific, Australia, China
NOMA: North & Middle America
Investor Presentation I 29
Revenues and EBIT (in € million)
627.5602.9 604.5
552.0
614.5
27.6 27.3
14.817.0
15.1
0
10
20
30
40
50
60
70
0
100
200
300
400
500
600
700
1-9/2015 1-9/2016 1-9/2017 1-9/2018 1-9/2019
Revenues EBIT
4.4% 4.5%EBIT margin 2.4% 3.1% 2.5%
Investor Presentation I 30
Balance sheet structure (in € million)
208.4
366.3
502.2 102.8
0.0
0.0
197.1210.0
248.0181.4
180.0
204.0
689.7756.3
954.2
Q3/2017Q3/2018Q3/2019
Assets
Receivablesand otherassets
Constructioncontracts
Inventories269.7 312.1
442.5
234.7224.8
232.7136.8165.8
231.3
48.553.6
47.7
689.7756.3
954.2
Q3/2017 Q3/2018 Q3/2019
Provisions
Liabilitiesand otherdebt
Equity
Interest-bearingliabilities
Investor Presentation I 31
Refinancing strategy: Bonded loan as a
long-term basis
■ Basic financing of growth strategy by a
bonded loan
■ Shift from short-term to long-term
maturities
■ Diversification of creditors
64%
21%5% 5% 2% 3%
24%15% 4%
18%1%
38%
2019 2020 2021 2022 2023 >2023
Maturity profile:
Maturity profile2018/12/31
Maturity proflie2019/06
■ Significant improvement of the maturity profile by a bonded loan and an additional OeKB loan
■ Seasonal increase of net debt as per 2019/06
■ Sale of accounts receivable to lower
balance sheet total
■ Target: Improvement of working capital
management (cash conversion cycle)
Investor Presentation I 32
Number of employees (reporting date)
In addition, Rosenbauer employs approximately 370 temporary employees.
1,385
1,399
1,351
1,398
1,510
736
781
823
826
841
647
800
851
897
962
299
340
349
425
468
3,067
3,320
3,374
3,546
3,781
Sept 30, 2015
Sept 30, 2016
Sept 30, 2017
Sept 30, 2018
Sept 30, 2019
Austria USA Germany Rest of the world
Investor Presentation I 33
Rosenbauer share
* Rosenbauer Beteiligungsverwaltung GmbH
1-9/2018 1-9/2019
Highest price € 57.2 45.6
Lowest price € 44.5 33.1
Closing price € 50.2 39.3
Market capitalization € million 341.4 267.2
Dividend € 1.0 1.25
Earnings per share € 0.64 0.31
BVG *51%Free float
44%
Investor FR5%
Indizes: ATPX, AFA, AIGS, AP8, AXGP, NAP8, NTFA, TAP8, TFA, VOX, WBI
€ 25
€ 30
€ 35
€ 40
€ 45
€ 50
Jan Feb Mar Apr May Jun Jul Aug Sep
Rosenbauer EURO ATXPrime index.
Investor Presentation I 34
Financial calendar
November 12, 2019 Publication of the Interim Statement Q3/2019
November 12, 2019 RCB Institutional Lunch, Vienna
November 27, 2019 Shareholders‘ Day (for retail investors), Leonding
January 22, 2020 Kepler Cheuvreux German Corporate Conference, Frankfurt
February 12, 2020 Publication of the preliminary results 2019
April 3, 2020 Publication of the results 2019
May 11, 2020 28th Annual General Meeting, Linz
May 19, 2020 Publication of the Interim Statement Q1/2020
June 16, 2020 Capital Markets Day, Hannover (INTERSCHUTZ trade fair)
August 14, 2020 Publication of the Half-year Financial Report 2020
November 17, 2020 Publication of the Interim Statement Q3/2020