SAF Holland : Half-Year Financial Report H1 2021 (741 KB)

SAF-HOLLAND SE

Half-Year Financial Report

2021

SAF-HOLLANDSE Half-Year Financial Report 2021 | Key Figures

KEY FIGURES

Results of operations

Financial position

in EUR thousands

Sales

Adjusted gross profit

Adjusted gross profit margin in %

Adjusted EBITDA

Adjusted EBITDA margin in %

Adjusted EBIT

Adjusted EBIT margin in %

Adjusted result for the period

Adjusted undiluted earnings per share in EUR

Diluted adjusted earnings per share in EUR

Q1-Q2/2021Q1-Q2/2020
608,124	476,253
113,226	84,227
18.6	17.7
65,671	41,795
10.8	8.8
46,953	23,655
7.7	5.0
31,174	12,681
0.69	0.28
0.69	0.25

in EUR thousands
		Q1-Q2/2021Q1-Q2/2020
Cash flow from operating activities	14,948	22,527
Cash flow from investing activities
(property, plant and equipment/ intangible assets)		-8,141		-11,353
Operating free cash flow	6,807	11,174
Total free cash flow	6,807	11,174
Cash and cash equivalents	164,901	209,362
Net debt	200,374	278,851

Employees

Net assets

in EUR thousands
	06/30/2021		12/31/2020
Balance sheet total	1,010,357		920,486
Equity	334,846		300,463
Equity ratio in %	33.1		32.6
Net working capital	161,455		114,599
Net working capital in % of sales (LTM)	14.8			11.9

		Q1-Q2/2021Q1-Q2/2020
Employees at the reporting date	3,592	3,235
Employees (on average)	3,513	3,583

Yield

in %
		Q1-Q2/2021		Q1-Q2/2020
Return on capital employed (ROCE)	14.5	8.6

NOTE:

All figures shown are rounded. Minor discrepancies may arise from additions of these amounts.

Net working capital ratio = Ratio of inventories and trade receivables less trade payables to sales of last twelve months.

Operating free cash flow = Net cash flow from operating activities less net cash flow from investing activities (purchase of PP&E and intangible assets less proceeds from sales of PP&E). ROCE = Adjusted EBIT / (total equity + financial liabilities (excl. refinancing costs, incl. lease liabilities) + pension and other similar benefits - cash and cash equivalents).

2

-Contents

Group Interim Management Report

Key Events in the First Six Months of the Year 2021	4
Industry Environment	5
Results of Operations, Net Assets and Financial Position	6
Risk and Opportunity Report	12
Outlook	13
Events after the Balance Sheet Date	15

Interim Consolidated Financial Statements

Consolidated Statement of Comprehensive Income	16
Consolidated Balance Sheet	17
Consolidated Statement of Changes in Equity	18
Consolidated Statement of Cash Flows	19
Notes to the Interim Consolidated Financial Statements	20
Declaration of the Legal Representatives	29

Additional Information

Financial Calendar and Contact Information	30
Imprint	30

SAF-HOLLANDSE Half-Year Financial Report 2021 | Key Events in the First Six Months of the Year 2021

KEY EVENTS IN THE FIRST SIX MONTHS OF THE YEAR 2021

SCOPE HAMBURG CONFIRMS INVESTMENT GRADE RATING - OUTLOOK RAISED TO STABLE

SAF-HOLLAND SE published the rating report from Scope Hamburg GmbH (formerly Euler Hermes Rating GmbH) on June 9. The report confirmed the investment grade rating and set the outlook from negative to stable.

In its rating, Scope Hamburg particularly emphasizes the sustainable growth prospects from the increasing global transport volumes and the Group's leading market positions in the markets for axle and suspension systems for trailers in the EMEA region and India as well as fifth wheels in the Americas region and the less cyclical, high-margin spare parts business. The global production and service network, the broad customer base and the structural cost reduction and process optimisation measures are also viewed positively.

At the same time, the assessment of the slightly increased business risk reflects the high dependency on the cyclical commercial vehicle sector and the intense competition, which was recently once again briefly exacerbated by the COVID-19 pandemic.

Scope Hamburg rates the financial risk of SAF-HOLLAND as low to moderate, with reference to its high internal financial resources and solid capital structure and financing base.

FIRST ANNUAL GENERAL MEETING AFTER THE TRANSFER OF THE REGISTERED OFFICE SUCCESSFULLY CONCLUDED

On June 10, 2021, SAF-HOLLAND successfully concluded its first Annual General Meeting after the transfer of the registered office from Luxembourg to Germany. Against the backdrop of the ongoing COVID-19 pandemic, the Annual General Meeting was held as a virtual Annual General Meeting without the shareholders being physically present. To allow the shareholders to follow the Annual General Meeting, it was broadcast live via the internet.

With an attendance of 60.05 per cent, the Annual General Meeting of SAF-HOLLAND SE met with great interest. Apart from one exception, all the resolutions proposed by the Management Board and the Supervisory Board were passed with a large majority. In doing so, the shareholders followed the proposal of management to retain the profit of SAF-HOLLAND SE in full and approved the remuneration system for the members of the Management Board, which complies with the statutory provisions of the Second Shareholders' Rights Directive (SRD II) and considers the recommendations of the amendments to the German Corporate Governance Code. For the first time the remuneration system also includes sustainability and ESG targets.

4

SAF-HOLLANDSE Half-Year Financial Report 2021 | Industry Environment

INDUSTRY ENVIRONMENT

SECTOR DEVELOPMENT: TRUCK AND TRAILER MARKETS CONTINUE

ON THE ROAD TO RECOVERY

The recovery of the global commercial vehicles market that started in the second half of 2020 continued through into the second quarter of 2021. Most of the relevant regions for SAF-HOLLAND - Europe, North and South America, China and India - recorded continued growth for trucks and trailers. Apart from China, production figures at the end of June were substantially above the previous year's figures.

POSITIVE TREND IN TRUCK REGISTRATIONS IN EUROPE

According to the European Automobile Manufacturers Association, ACEA, the number of new registrations for heavy-duty trucks (over 16 tons) in the European Union in the first half of 2021 is significantly up on the level of the previous year (+39 per cent). Some of the high-volume markets recorded rapid growth, with Germany rising by 23 per cent, France by 19 per cent and Poland by 106 per cent.

PRODUCTION ON THE NORTH AMERICAN TRUCK MARKET AT HIGH

LEVELS

After an increase in the production of Class 8 trucks in the first quarter of 2021 (+12 per cent), production in the first six months of 2021 lay 60 per cent above the comparative figure of the previous year.

UPTURN IN THE SOUTH AMERICAN TRUCK AND TRAILER MARKET

The South American market for commercial vehicles grew on the back of an economic recovery in Brazil (with economic growth of 5.3 per cent in the year 2021, IMF World Economic Outlook July 2021) with growth of 115 per cent in heavy-duty trucks and 68 per cent in trailers.

EUROPEAN TRAILER MARKET ON A GROWTH TRAJECTORY

The European trailer market managed to recover further in the second quarter of 2021. In sum, the market in this region grew by 35 per cent in the first half of the year.

NORTH AMERICAN TRAILER MARKET CONTINUES TO BRIGHTEN

Approximately 34 per cent more trailers were manufactured in the North American market in the first six months of 2021 than in the comparable period of the previous year when the market recorded a production slump of around 40 per cent due to the spread of the COVID-19 pandemic.

MASSIVE BOOST TO PRODUCTION IN INDIA

The economic recovery led to an increase of 168 per cent in truck production and 81 per cent in trailer production in the reporting period from January to June 2021.

RISING DEMAND FOR TRAILERS AND TRUCKS IN CHINA

After a weak first quarter 2020 mainly due to COVID-19, demand for trailers and trucks in China continued to recover in the following quarters. The production of trailers in the first six months of 2021 lay 15 per cent up on the level of the previous year. Truck production lay 20 per cent higher than in the previous year.

5