Investor Presentation • Aug 14, 2023
Investor Presentation
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THIS PRESENTATION IS CONFIDENTIAL AND MUST NOT BE RELEASED, PUBLISHED, TRANSMITTED OR DISTRIBUTED, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO OR WITHIN THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL.
This presentation (the "Presentation") was specifically prepared by JOST Werke SE (the "Company") for informational purposes only. It is intended to provide a general overview of the Company's business and does not purport to include all aspects and details regarding the Company. This Presentation must not be reproduced in any form, passed on or otherwise made available, directly or indirectly, to any other person, or published or otherwise disclosed, in whole or in part, for any purpose, without prior written consent by the Company. Neither the Company nor any of its directors, officers, employees or advisors, nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance should be placed on, the fairness, accuracy or completeness of the information contained in the Presentation or of the views given or implied. Neither the Company nor any of its respective directors, officers, employees or advisors nor any other person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this information or its contents or otherwise arising in connection therewith.
This Presentation is neither an advertisement nor a prospectus and does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation, invitation or inducement to purchase, subscribe for, under- write or otherwise acquire any securities of the Company, nor should it, or any part of it, form the basis of or be relied on in connection with or act as any inducement to enter into any contract to purchase or subscribe for any securities of the Company, nor shall it, or any part of it, form the basis of or be relied on in connection with any contract or commitment or investment decision whatsoever. This Presentation and the information and opinions contained therein are selective in nature and do not purport to contain all information that may be required to evaluate the Company and/or its shares. The information and opinions contained in this Presentation are provided as of the date of this Presentation and may be subject to updating, revision, amendment or change without notice. Neither the Company nor any of its directors, officers, employees or advisors are under any obligation to update or keep current the information contained in this Presentation or to correct any inaccuracies in any such information which may become apparent or to provide any additional information whether as a result of new information, future events or otherwise.
This Presentation contains forward-looking statements relating to matters that are not historical facts. These statements reflect the Company's current knowledge, intentions and beliefs as well as its current expectations and projections about future events, including the Company's prospects, growth, strategies, the industry in which it operates and potential or ongoing acquisitions. Forward-looking statements can be identified by the context of such statements or words such as "anticipate," "believe", "estimate", "expect", "forecast", "intend", "plan", "project", "target", "may", "will", "would", "could" or "should" or similar terminology. By their nature, forward-looking statements are subject to a number of risks, uncertainties and assumptions, many of which are beyond the Company's control, that could cause the Company's actual results and performance to differ materially from and adversely affect any expected future results or performance expressed or implied by any forward-looking statements as a result of various factors (including global economic conditions, changed market conditions, competition, costs of compliance, changing political, legal, economic and other conditions). Forward-looking statements should not therefore
be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Similarly, past performance should not be taken as an indication of future results, and no representation or warranty, express or implied, is made regarding future performance. In addition, even if the development of the Company's prospects, growth, strategies and the industry in which it operates are consistent with the forward-looking statements contained in this Presentation or past performance, those developments may not be indicative of the Company's results, liquidity or financial position or of results or developments in subsequent periods not covered by this Presentation. The Company undertakes no obligation to release the results of any revisions to any forward-looking statements in this Presentation that may occur due to any change in its expectations or to reflect events or circumstances after the date of this Presentation.
To the extent available, the industry and market data contained in this Presentation is derived from third-party sources. Third-party industry publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. In addition, certain information in this Presentation is selective and may not necessarily be representative for the Company. Further, some of the industry and market data contained in this Presentation is derived from the Company's own internal research and estimates based on the knowledge and experience of the Company's management in the market in which the Company operates. While the Company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change without notice. Accordingly, no reliance should be placed on the industry or market data contained in this Presentation.
Subject to limited exceptions described below, the information contained in this Presentation is not to be released, published, transmitted or distributed within or into the United States of America ("United States"), Australia, Canada or Japan and does not constitute an offer of securities for sale in any of these jurisdictions. Any securities offered by the Company have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States and such securities may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities laws. This Presentation does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person or in any jurisdiction to whom or in which such offer or solicitation is unlawful. Any failure to comply with these restrictions may constitute a violation of applicable securities laws.
JOST increased sales by 3% to €330m in Q2 2023
Strong growth in Transport (+13%) compensated for lower demand in Agriculture (-25%)
Adj. EBIT outpaced sales, growing by 16 % to €37m in Q2 2023, and leading to an adj. EBIT margin expansion of 1.3pp to 11.3%
Adj. EPS went up by 20% to €1.80 in Q2 2023
JOST confirms its positive outlook for fiscal year 2023
| EUROPE | NORTH AMERICA | APA | |||||
|---|---|---|---|---|---|---|---|
| TRUCK MARKET |
+16% | Strong demand for trucks driven by pent-up demand |
+7% | Production of class 8 trucks in North America remains strong |
+44% | Truck market in China starts to recover, up from very low levels. Other countries in APA continue to grow strongly. |
|
| Y R T S U D N I |
TRAILER MARKET |
-3% | Trailer markets in Europe slightly weaker, but still on a high level |
+7% | Trailer production continues to grow, boosted by strong economy |
+15% | Trailer demand remains robust, driven by India and the Pacific region. China, too, starts slow recovery. |
| TRACTOR MARKET |
-6% | Demand for tractors declines, compared to last year's elevated level |
-8% | Demand for low and medium HP tractors contracts further during Q2 2023 |
|||
| -3% | High demand for trucks allowed JOST to partially offset weakness in trailer and tractor markets. |
-1% | Strong demand in the Transport business offset decline in the Agricultural business. |
+36% | JOST benefited from strong demand in the APA region as well as a slowly recovering Chinese market. |
Note: Market estimates based on LMC Automotive, Clear Consulting, FTR, OEM announcements (as of August 2023)
FX-headwinds in Q2 2023 amounted to -2.4pp, resulting mostly from the SEK.
Adj. EBIT grew by 15% to €14.3m in Q2 2023, despite declining sales during the quarter.
FX-headwinds amounted to -2.3pp during Q2 2023. Adjusted for FX, sales grew by 1.7% in Q2 2023, compared to prior year.
Adj. EBIT grew by +8% to €10.3m and adj. EBIT margin improved by 0.8pp to 10.5% in Q2 2023
1 ROCE=LTM adj. EBIT / interest-bearing capital employed (interest-bearing capital = equity + financial liabilities [excl. refinancing costs] – liquid assets + provisions for pensions) 2 Net debt = interest bearing capital [excl. refinancing costs] – liquid assets
3 Leverage = Net debt/LTM adj. EBITDA [LTM adj. EBITDA = € 166m; LTM adj. EBITDA PY = € 141m]
1Free cash flow = Operating cash flow – capex
2Cash conversion = Free cash flow/adj. net income
3Capex = Payments to acquire property, plant and equipment + payments to acquire intangible assets
• The operating cash flow improved significantly during Q2 2023, mostly driven by the good development in working capital. This resulted in a positive free cashflow of € +20m during Q2 2023 and led to cash conversion rate doubling to +0.8 (Q2 2022: +0.4).
• Capex spending increased to €7.5m and is at 2.3% of total sales and below the 2.5% of sales expected for the year. Key drivers for the increase is the ongoing construction of a new production plant in India which is due to start production in Q3 2023.
Chinese truck market expected to recover, coming from a very low base and supported by the easing of the zero Covid policy.
Recovery of Chinese market and strong fundamentals in other countries in APA will boost demand for trailers in the region.
Note: Market estimates based on LMC, Clear Consulting, FTR, OEM announcements (as of August 2023)
| Sales | Low-single digit growth y-o-y; (2022: €1,265m) |
||
|---|---|---|---|
| Adj. EBIT | Low-single digit growth y-o-y (2022: €124m) |
||
| Adj. EBIT margin | Increase (2022: 9.8 %) | ||
| Capex (in % of sales) | Approx. 2.5% of sales (2022: 2.6%) | ||
| Working Capital | Below 19% from sales (2022: 19.2%) |
Strong demand for trucks, the recovery of the Chinese market, and high demand in North America continue to be growth drivers in Q2 2023
Operational flexibility, increases in profitability and strict working capital management supported JOST strong financial performance in Q2 2023
Market expectations for 2023 continue to be positive. Softening in Agriculture demand is being offset by a stronger demand in Transport
Based on strong operating performance in H1, JOST confirms its positive outlook for 2023
Further information
JOST achieved strong sales and adj. EBIT in Q2 2023, with high demand for Transport products compensating for declining sales in agriculture.
| ISIN | DE000JST4000 |
|---|---|
| Trading symbol | JST |
| German Sec. Code Number (WKN) | JST400 |
| Shares in issue | 14,900,000 |
| Index | SDAX |
| Listed since | July 20, 2017 |
Universal-Investment-Gesellschaft
| A u g 1 4 | P u b l i c a t i o n o f Q 2 2 0 2 3 I n t e r i m R e p o r t |
|---|---|
| S e p t 6 | C o m m e r z b a n k a n d O D D O B H F C o r p o r a t e C o n f e r e n c e , F r a n k f u r t / G e r m a n y |
| S e p t 1 9 | B e r e n b e r g G e r m a n C o r p o r a t e C o n f e r e n c e 2 0 2 3 , M u n i c h / G e r m a n y |
| S e p t 2 0 | B a a d e r I n v e s t o r C o n f e r e n c e 2 0 2 3 , M u n i c h / G e r m a n y |
| N o v 1 3 | P u b l i c a t i o n o f Q 3 2 0 2 3 I n t e r i m R e p o r t |
I n v e s t o r R e l a t i o n s C o n t a c t : R O M Y A C O S T A H e a d o f I n v e s t o r R e l a t i o n s
J O S T W e r k e S E
S I E M E N S S T R A S S E 2 6 3 2 6 3 N E U - I S E N B U R G G E R M A N Y
E - M A I L : r o m y . a c o s t a @ j o s t - w o r l d . c o m P H O N E : + 4 9 - 6 1 0 2 - 2 9 5 - 379 F A X : + 4 9 - 6 1 0 2 - 295 - 6 6 1
W W W . J O S T - W O R L D . C O M
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