Recent strategic highlights of SAF-HOLLAND
1 | 2 |
Acquisition of exclusive distribution partner IMS
GROUP B.V. and special axle systems and
Additional production capacity in Piedras Negras,
suspensions manufacturer Tecma Srl
Mexico for fifth wheels in ramp-up phase
Piedras Negras
Monterrey
FY 2023 Call Presentation | < 2 > |
Highlights and regional performance FY and Q4 2023
FY 2023 Call Presentation | < 3 > |
FY 2023 Highlights
Sales
development
Significant sales growth of 34.6% to EUR 2,106.2 mn (organic sales +11.4%)
Adj. EBIT margin
Strong adj. EBIT margin of 9.6% (previous year: 8.0%)
Cash flow &
leverage
Solid cash generation with operating free cash flow of EUR 142.7 mn and reduction in leverage from 2.6x to 1.8x
Dividend
Dividend proposal of EUR 0.85 per share (+EUR 0.25)
Outlook
FY 2023 outlook achieved on all metrics
FY 2023 Call Presentation | < 4 > |
SAF-HOLLAND achieves record levels for sales, profitability and operating free cash flow
Sales change yoy | |||||
EMEA: | AMERICAS: | APAC: | |||
+16.1% | +50.8% | +69.3% |
Sales
EUR 2,106.2 mn
(FY 2022: EUR 1,565.1 mn)
Adjusted EPS
EUR 2.61
(FY 2022: EUR 1.82)
Adj. EBIT
Margin
9.6% |
(FY 2022: 8.0%) |
NWC ratio
14.1%
(31 Dec. 2022: 12.0%)
Operating FCF
EUR 142.7 mn
(FY 2022: EUR 120.0 mn)
FY 2023 Call Presentation | < 5 > |
Significant growth from Haldex consolidation paired with solid underlying demand
Group sales
(in EUR mn)
34.6% |
2,106.2 |
1,565.1 |
FY |
555.7 | 552.9 | 32.8% | ||||
517.2 | ||||||
480.4 | ||||||
369.7 | 403.5 | 402.4 | 389.4 | |||
Q1 | Q2 | Q3 | Q4 |
- Consolidation of Haldex and solid demand in all three regions positively supported FY growth development
- Both, higher volumes and prior price increases were beneficial to sales growth
- FY organic sales growth amounted to +11.4% yoy
- Q4 organic sales growth amounted to +10.0% yoy
- Haldex contributed EUR 399.4 mn in FY 2023 respectively EUR 102.4 mn in Q4 2023
FY 2023 Call Presentation | < 6 > |
Change in regional mix and higher share of aftermarket business strengthens resilience
Group sales split (by region, by customer category)
10.2% | 12.8% |
EMEA | 52.1% | 44.9% | |
FY 2022 | FY 2023 | ||
Americas | 42.3% | ||
37.7% | |||
APAC
- Change in sales distribution by region compared to FY 2022 mainly due to Haldex consolidation as well as organic growth in all three regions
• Total OEM sales of EUR 1,448.0 mn grew significantly | ||||
26.9% | 31.2% | due to Haldex consolidation as well as underlying | ||
customer demand | ||||
Trailer OE | FY 2022 | 60.5% | FY 2023 | • Strong increase in aftermarket sales of 56.3% yoy to |
Truck OE | 55.1% | EUR 658.1 mn due to strong OEM business in |
Aftermarket | 12.6% | previous years and thus an increased population of |
SAF-HOLLAND products in the market | ||
13.7% |
FY 2023 Call Presentation | < 7 > |
Adj. EBIT benefited from a good operating performance and cost synergies
Group adj. EBIT and margin
(in EUR mn and % of sales)
250 | 9.6% | 10 | ||
200 | 8.0% | 202.1 | 8 | |
150 | 124.6 | 6 | ||
100 | 4 | |||
50 | 2 | |||
0 | FY | 0 | ||
10.6% | |||
9.0% | 9.1% | 9.1% | 9.5% |
8.3% | |||
8.0% | |||
6.4%
23.5 | 43.4 | 32.1 | 50.8 | 36.7 | 58.6 | 32.3 | 49.3 | ||
Q1 | Q2 | Q3 | Q4 |
- Q4 2023 adj. EBIT was EUR 49.3 mn, up by 52.5%, equal to a margin of 9.5%
- In FY 2023, adj. EBIT improved strongly by 62.2% to EUR 202.1 mn, leading to a substantial margin improvement from 8.0% to 9.6%
- Adj. EBIT and margin benefited significantly from achieved efficiency improvements, economies of scale, a higher aftermarket share and cost synergies from Haldex integration
- FY 2023 adj. EBIT margin of 9.6% slightly exceeds the through-the-cycle and 2027 target range of 9.0 to 9.5 %
FY 2023 Call Presentation | < 8 > |
EMEA with significant sales and profitability improvement despite a weaker trailer market
EMEA sales
(in EUR mn) | 22.6% | |||
238.8 | 242.0 | 230.9 | 234.6 | |
208.5 | 215.0 | 200.5 | ||
191.4 | ||||
Q1 | Q2 | Q3 | Q4 |
16.1% |
946.3 |
815.3 |
FY |
Sales
- Q4 organic sales growth amounted to 8.5% yoy. Slight sequential growth Q4 vs. Q3 2023 based on strong truck OEM business
- FY organic sales growth amounted to 1.4% yoy despite weaker trailer market
- Solid aftermarket sales growth in FY 2023 due to Haldex consolidation as well as an increased addressable aftermarket due to prior strong OEM-business growth
Adj. EBIT and margin
EMEA adj. EBIT and margin | |||||||||
(in EUR mn and %) | 7.7% | ||||||||
7.9% | 7.4% | 7.9% | 8.0% | 6.9% | 7.6% | 6.5% | |||
6.2% | |||||||||
4.9% | |||||||||
10.1 | 18.9 | 13.4 | 18.0 | 15.9 | 18.4 | 13.3 | 17.9 | 52.7 | 73.1 |
Q1 | Q2 | Q3 | Q4 | FY |
- Higher steel-, logistics and energy costs during 2022 could be partly compensated by internal efficiency improvements as well as price increases
- Positive impact from the realization of Haldex synergies as well as a higher aftermarket share
FY 2023 Call Presentation | < 9 > |
Americas with strong sales increase and further improved adjusted EBIT margin
Americas sales | ||||
(in EUR mn) | 40.9% | 50.8% | ||
244.0 | 244.1 | 890.3 | ||
189.1 | 213.1 | |||
161.3 | ||||
151.1 | 151.2 | 590.6 | ||
127.0 | ||||
Q1 | Q2 | Q3 | Q4 | FY |
Americas adj. EBIT and margin | 10.9% | ||||||||
(in EUR mn and %) | |||||||||
9.5% | |||||||||
12.3% | |||||||||
9.6% 10.8% | |||||||||
10.0% | 9.9% 10.2% | 10.3% | |||||||
7.8% | |||||||||
9.9 | 18.9 | 14.9 | 24.9 | 16.6 | 30.1 | 14.5 | 23.0 | 55.9 | 97.0 |
Q1 | Q2 | Q3 | Q4 | FY |
Sales
- Q4 organic sales growth amounted to 3.3%; sequential decline vs. Q3 due to seasonal effects and an ongoing market normalization esp. in the trailer market
- FY organic sales growth amounted to 12.1%
- Significant double-digit sales increase in FY 2023 driven by Haldex consolidation paired with robust demand for trailer and truck components while trend towards air disc brake axle systems where also beneficial for SAF-HOLLAND
- An increased addressable aftermarket due to prior strong OEM- business growth supported sales growth
Adj. EBIT and margin
- Sequential softer adj. EBIT margin due to positive one-off effect during Q3 from favorable processing of the aftermarket backlog
- Based on strong sales growth, scale effects as well as synergies from the Haldex integration, adj. EBIT increased strongly by 73.5% to EUR 97 mn resulting in an improved margin of 10.9% in FY 2023
FY 2023 Call Presentation < 10 >
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SAF-Holland SE published this content on 13 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2024 06:18:00 UTC.