SAF Holland : Investoren und Analysten Call Q1/2024

Highlights and regional performance Q1 2024

Q1 2024 Call Presentation

< 2 >

Q1 2024 Highlights

M&A	Full consolidation of IMS Group as of January 2nd 2024; Tecma closing on April 2nd 2024

Sales

development

Sales growth of +5.2% yoy positively impacted by acquisition-related effects from Haldex and IMS Group counteracting declining OE markets in EMEA & North America

Adj. EBIT margin

Strong improvement in profitability from 9.0% of 9.6% due to strict cost management as well as favorable regional and customer segment mix

Cash flow &

leverage

Seasonal NWC built-up impacted operating free cash flow which amounted to EUR -12.4mn; leverage of 1.9x remains below 2024 target of 2.0x

Outlook

2024 outlook confirmed

Q1 2024 Call Presentation

< 3 >

SAF-HOLLAND with sustainable performance in softer market environment

Sales change yoy

AMERICAS:		EMEA:		APAC:
+ 4.5%		+ 2.3%		+ 21.2%

Sales

EUR 505.4 mn

(Q1 2023: EUR 480.4 mn)

Adjusted EPS

EUR 0.69

(Q1 2023: EUR 0.54)

Adj. EBIT

margin

9.6%

(Q1 2023: 9.0%)

NWC ratio

16.5%

(31 Dec. 2023: 14.1%)

Operating FCF

EUR -12.4 mn

(Q1 2023: EUR 5.4 mn)

Q1 2024 Call Presentation

< 4 >

SAF-HOLLAND off to a solid start into 2024

Group sales
(in EUR mn)		+5.2%
2023
2024	480.4	505.4
		Q1

		+5.2%
			555.7	552.9	517.2
480.4	505.4

Q1

Q2

Q3

Q4

• Consolidation of Haldex (+7 weeks compared to Q1 2023) and IMS Group contributed EUR 66.1 mn to sales
• Weaker OE markets in EMEA and Americas cause an organic sales development of -8.1%, as expected
• APAC region with solid growth

Q1 2024 Call Presentation

< 5 >

Increased share of aftermarket business driven by normalization of OE market

Group sales split (by region, by customer category)

• Q1 2024 with opposing effects of weaker OE markets

	10.9%		12.6%		in EMEA and Americas but additional acquisition-
			related growth due to full contribution of Haldex as
					well as IMS Group (in EMEA)
EMEA		49.7%			• Share of Americas business impacted by softer trailer
Q1 2023	39.1%	Q1 2024	48.3%
	market
Americas
APAC	39.4%				• APAC with continued solid growth

					• Total OEM sales decreased by 7.6% to EUR 328.0 mn
	26.1%				due to market normalization in EMEA and Americas
			35.1%		• Aftermarket business grew by 41.6% to EUR 177.5 mn
Trailer OE
Q1 2023	61.1%	Q1 2024		in particular driven by full Haldex consolidation but
	51.3%
Truck OE	also solid organic growth as a result of a growing OE

Aftermarket	12.8%	population in previous years
		13.6%

Q1 2024 Call Presentation

< 6 >

Strong profitability based on strict cost management, Haldex synergies and AM business

Group adj. EBIT and margin
(in EUR mn and % of sales)
2023	70	9.0%	9.6%	10
2024
60
	50	43.4	48.6	8
	40			6
	30			4
	20
	10			2
	0		Q1	0

	9.6%		10.6%
9.0%	9.1%	9.5%

43.4	48.6	50.8		58.6	49.3
	Q1		Q2	Q3	Q4

• Q1 2024 adj. EBIT rose by 12.0% to EUR 48.6 mn and resulted in an adj. EBIT margin of 9.6%
• Dampening effects on profitability from lower volumes in the OE business were more than compensated by
• • continued synergies from the Haldex integration, which were realized predominantly after Q1 2023
  • strict cost management, a favorable regional mix effect as well as a significantly higher aftermarket share

Q1 2024 Call Presentation

< 7 >

Solid performance in EMEA due to Haldex and IMS Group acquisition

EMEA sales

(in EUR mn)	+2.3%
2023
2024	238.8 244.3	242.0	230.9	234.6

Sales

• Q1 2024 organic sales growth amounted to -7.3%
• Newly acquired IMS Group contributed a mid single-digit euro million amount to sales
• Slight sequential organic growth of OE business compared to Q4 2023

Q1

Q2

Q3

Q4

EMEA adj. EBIT and margin							Adj. EBIT and margin
(in EUR mn and %)										• Adj. EBIT grew by 5.0% to EUR 19.8 mn which resulted in an
2023		7.9% 8.1%	7.4%		8.0%		7.6%
2024									adj. EBIT margin of 8.1%
											• Strict cost management as well as segment mix support
											favorable margin development
		18.9	19.8	18.0	18.0	18.4	18.4	17.9	17.9	73.1	73.1
											• Positive impact from acquisition-related synergy effects
		Q1	Q2		Q3		Q4

Q1 2024 Call Presentation

< 8 >

Americas region defies weaker market momentum and achieves strong adj. EBIT margin

Americas sales	Sales
(in EUR mn)

2023	+4.5%
2024	244.0	244.1

• Q1 2024 with solid sales growth (including an organic sales

growth of -15.5%) and a significant acquisition-related

189.1 197.5

213.1

contribution from Haldex

• Organic sales development was muted due to softer customer

demand for trailer and truck products in the US while

aftermarket business was able to more than compensate for

weaker OE dynamics

Q1

Q2

Q3

Q4

Americas adj. EBIT and margin

• Truck market with only slight declines while trailer market

stronger impacted by ongoing normalization

Adj. EBIT and margin

(in EUR mn and %)							• Adj. EBIT increased strongly by 11.0% to EUR 21.0 mn and thus
2023		10.0% 10.6%	10.2%	12.3%	10.8%
2024					resulted in an improved margin of 10.6%, positively influenced
								by realized cost synergies from the Haldex takeover
						97.0	• Sequentially compared to Q4 2023, capacity adjustments as
		18.9 21.0	24.9	30.1	23.0	well as a higher aftermarket share were able to compensate
								lower volumes
		Q1	Q2	Q3	Q4

Q1 2024 Call Presentation

< 9 >

Strong profitability development in APAC fueled by significant sales growth

APAC sales

(in EUR mn)

2023	+21.2%
2024				69.6	77.9
		63.7	69.5
	52.5

Q1

Q2

Q3

Q4

APAC adj. EBIT and margin

(in EUR mn and %)

2023	12.1%	11.3%	13.1%	12.0%
2024
10.6%

5.6	7.7	7.9		10.2	8.3	31.9	31.9
	Q1		Q2	Q3		Q4

Sales

• Q1 2024 organic sales growth amounted to 14.8% despite softer demand from North America which impacts the trailer production in APAC.
• Continued favorable market dynamics in India, Australia and China

Adj. EBIT and margin

• Significant increase in adj. EBIT of 38.9% to EUR 7.7 mn mainly based on higher volumes
• Additionally, profitability benefited from a continued improvement in China

Q1 2024 Call Presentation < 10 >