DGAP-News: SAF-HOLLAND SE / Key word(s): Annual Results 
SAF-HOLLAND SE: Outstanding results in a challenging market environment - very encouraging start to the new financial 
year 
2021-03-25 / 07:27 
The issuer is solely responsible for the content of this announcement. 
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Corporate News 
 
SAF-HOLLAND: Outstanding results in a challenging market environment - very encouraging start to the new financial year 
- Sales guidance met, EBIT margin guidance exceeded 
 
- Disciplined investment policy with a focus on automation 
 
- Very strong operating free cash flow: EUR 114 million (previous year: EUR 43 million) 
 
- Solid financial profile continues to have priority - no dividend for the 2020 financial year 
 
- Positive outlook for 2021: Sales of between EUR 1,050 million and EUR 1,150 million (previous year: EUR 960 million); 
adjusted EBIT margin of around 7 per cent (previous year: 6.1 per cent) 
Bessenbach, March 25, 2021. SAF-HOLLAND SE ("SAF-HOLLAND"), one of the world's leading suppliers of trailer and truck 
components, today published its audited financial figures and dividend proposal for the 2020 financial year and 
presented its outlook for the current 2021 financial year. 
 
Alexander Geis, Chairman of the Management Board of SAF-HOLLAND SE says: "We have successfully passed the stress test 
caused by the COVID-19 pandemic and remained a reliable partner for our customers at all times. We possess a robust and 
very promising business model and can fairly say that the comprehensive programme launched in September 2019 to 
sustainably reduce selling and administrative expenses is taking effect. The successful restructuring of our North 
American and Asian production network and alignment of all locations to our SAF-HOLLAND Operational Excellence System 
will free up additional earnings potential in the coming years." 
 
"For the current financial year I am optimistic, although the COVID-19 pandemic will remain a major risk factor. The 
beginning of financial year 2021 has been very encouraging. For instance, the order intake in the EMEA region has 
developed so strongly that we are introducing a three-shift model," adds Alexander Geis. 
 
Adjusted EBIT margin at roughly the same level as the previous year despite COVID-19 
Due to market conditions and COVID-19, Group sales in the financial year 2020 came to EUR 959.5 million, 25.3 per cent 
below the previous year's level of EUR 1,284.2 million. Sales in the OE business decreased by 29.8 per cent or EUR 
285.7 million to EUR 673.4 million in the reporting period from January to December 2020. The share of total sales 
accounted for by the OE business therefore decreased from 74.7 per cent to 70.2 per cent. By contrast, sales in the 
spare parts business only decreased by 12.0 per cent or EUR 38.9 million to EUR 286.2 million. The share of the spare 
parts business in total sales increased from 25.3 per cent to 29.8 per cent accordingly. 
 
In spite of the significant fall in sales, SAF-HOLLAND nevertheless generated an adjusted EBIT margin of 6.1 per cent 
that is slightly above the margin guidance, which was raised in November 2020 to 5 to 6 per cent (previous year: 6.2 
per cent). The streamlining of the OE product portfolio, sustained savings in selling and administrative expenses and 
the higher proportion of the resilient spare parts business in total sales had a positive impact. 
 
Disciplined investment policy with a focus on automation 
Additions to property, plant and equipment and intangible assets, including capitalised development costs of EUR 2.8 
million (previous year: EUR 4.9 million) totalled EUR 24.5 million in the 2020 financial year (previous year: EUR 53.0 
million). This breaks down into EUR 10.0 million (previous year: EUR 19.5 million) for the EMEA region, EUR 9.1 million 
(previous year: EUR 21.1 million) for the Americas region and EUR 5.4 million (previous year: EUR 12.4 million) for the 
APAC region. The focus of investing activities was on the further automation of production processes at various 
locations in the Americas region and Germany. The capex ratio decreased from 4.1 per cent to 2.5 per cent, lying within 
the mid-term target of approximately 2.5 per cent. 
 
Net working capital ratio greatly improved - high operating free cash flow 
The net working capital ratio, measured as the ratio of net working capital to Group sales over the last 12 months, 
improved year-on-year from 14.3 per cent to 11.9 per cent. A decrease in inventories and trade receivables was 
countered by lower trade payables. This was offset by the decline in 12-month sales due to market conditions and 
COVID-19. 
 
The net cash flow from operating activities in the 2020 financial year came to EUR 137.9 million, 52.4 per cent above 
the level of the comparable period of the previous year of EUR 90.5 million. The increase is mainly attributable to the 
positive contribution from net working capital management. The Cash-is-King project initiated in April 2020 played a 
major role in this regard. As a result, it was possible to sustainably reduce overdue receivables in all regions and 
improve the management of inventories. 
 
The net cash flow from investing activities in property, plant and equipment and intangible assets of EUR -23.7 million 
lay EUR 24.1 million, or 50.4 per cent, below the comparable figure for the previous year. The operating free cash flow 
improved from EUR 42.8 million to EUR 114.2 million. 
 
"We have realised primarily structural improvements in the field of net working capital management," says Inka 
Koljonen, CFO of SAF-HOLLAND SE. "Together with the extended Cash-is-King concept, this will help us this year to 
cushion the cyclical rise in net working capital." 
 
Solid financial profile has priority - no dividend for the 2020 financial year 
In comparison to December 31, 2019, equity has decreased by EUR 17.5 million to EUR 300.5 million. The net profit for 
the period of EUR 14.2 million increased equity accordingly. Exchange differences arising from the currency translation 
of foreign operations and the remeasurement of defined benefit obligations had the contrary effect. Coupled with the 
6.0 per cent decrease in the balance sheet, this leads to a slight increase in the equity ratio to 32.6 per cent 
(December 31, 2019: 32.5 per cent). 
 
Net financial debt (including lease liabilities) decreased by EUR 55.0 million to EUR 196.7 million as of December 31, 
2020 compared to the reporting date of December 31, 2019. As of December 31, 2020 SAF HOLLAND carries cash and cash 
equivalents of EUR 171.0 million (December 31, 2019: EUR 131.2 million). 
 
In order to secure this solid financial profile sustainably, the Management Board and the Supervisory Board of 
SAF-HOLLAND SE have decided to propose to the Annual General Meeting, scheduled for June 10, 2021, to pay no dividend 
for the 2020 financial year. 
 
"By significantly reducing net financial debt, we have managed to improve the debt ratio from 2.85x EBITDA at the end 
of 2019 to 2.40x EBITDA," adds Inka Koljonen. "As a result, we are in a position where we can rigorously implement our 
Strategy 2025 and, if the opportunity arises, consider pursuing a course of acquisition-driven growth." 
 
EMEA region: Adjusted EBIT margin at roughly the same level as the previous year despite COVID-19 
In the EMEA region, sales declined in financial year 2020 by 11.7 per cent to EUR 552.9 million (previous year: EUR 
626.2 million) due to market conditions and COVID-19. After eliminating the effects of exchange rates and consolidation 
effects, sales decreased by 10.5 per cent to EUR 560.2 million. Despite the decline in sales, the EMEA region generated 
an adjusted EBIT of EUR 52.7 million (previous year: EUR 60.1 million) in the reporting period from January to December 
2020 and an adjusted EBIT margin of 9.5 per cent (previous year: 9.6 per cent). The spare parts business had a positive 
impact on the gross margin whereas the impact of the OE business was slightly positive. This includes inventory 
write-downs of EUR 3.2 million in response to the decrease in inventory turnover because of the COVID-19 pandemic. 
 
Americas region: EBIT margin of 4.1 per cent in spite of a massive slump of 38 per cent in sales 
In the Americas region, sales declined in financial year 2020 by 37.8 per cent to EUR 332.3 million (previous year: EUR 
534.5 million) due to market conditions and COVID-19. After eliminating the effects of exchange rates, sales decreased 
by 35.7 per cent to EUR 343.8 million. 
 
In spite of the significant fall in sales, the Americas region generated a positive adjusted EBIT of EUR 13.5 million 
(previous year: EUR 29.2 million) and an adjusted EBIT margin of 4.1 per cent (previous year: 5.5 per cent). The spare 
parts business had a positive impact on the gross margin whereas the OE business had a negative impact. This includes 
inventory write-downs of EUR 4.9 million in response to the decrease in inventory turnover because of the COVID-19 
pandemic and the streamlining of the product portfolio within the framework of programme FORWARD 2.0. 
 
The sustained savings in selling and administrative expenses had a positive effect, which was overcompensated by cost 
stickiness. In addition it should be noted that the figure in the previous year of EUR 29.2 million significantly 
benefited from the contractually agreed passing on of the rise in the price of steel in 2018 coupled with lower 
purchase prices for steel. 
 
APAC region: Lock-down and delayed ramp-up in China burden performance 
The APAC region generated sales of EUR 74.3 million in financial year 2020 (previous year: EUR 123.5 million) due to 
market conditions and COVID-19. After eliminating the effects of exchange rates, sales decreased by 38.0 per cent to 
EUR 76.6 million compared with the previous year. The reason for this sharp contraction in sales was mainly the

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