SAF-HOLLAND
Menü

Announcements

Business volume 2012 successfully expanded

SAF-HOLLAND: Business volume 2012 successfully expanded

* Group sales target of EUR 859.6 million achieved
* Stable earnings development: Adjusted EBIT of EUR 58.2 million
* Capital structure improved: Equity ratio of 36.9 percent
* Outlook for 2013: Increase in sales and earnings expected

Luxembourg, March 14, 2013 - SAF-HOLLAND continued its profitable growth
path in financial year 2012. The global supplier for the truck and trailer
industry increased Group sales by EUR 28.3 million to EUR 859.6 million.
Adjusted EBIT totaled EUR 58.2 million (previous year: EUR 58.0 million),
thus meeting the goal of stable earnings development to the full extent.
The adjusted result for the period also increased further, reaching EUR
28.4 million (previous year: EUR 24.2 million). Adjusted earnings per share
thus improved to EUR 0.68 (previous year: EUR 0.66) despite the
significantly higher average number of shares outstanding.

Strong growth in North American core market
SAF-HOLLAND generated around half of the Group's sales in Europe, where it
was possible to counter the declining market environment in financial year
2012. Although sales in this region of EUR 434.9 million (previous year:
EUR 456.6 million) developed weaker than in the prior year, they were
nonetheless more stable than the overall European market. As a result of
high growth rates in other regional markets, SAF-HOLLAND managed to more
than compensate for slightly decreasing European sales. The business volume
in North America thus increased by 10.6 percent to EUR 367.1 million
(previous year: EUR 331.9 million) and in countries outside the established
core markets by 34.6 percent to EUR 57.6 million (previous year: EUR 42.8
million).

Detlef Borghardt, CEO of SAF-HOLLAND: 'Our geographic diversification and
broad positioning with three attractive business segments once again proved
to be an advantageous strategy in 2012. The positive business development
of the past year clearly shows that we can easily absorb economic
fluctuations. Important to mention is the fact, that the business figures
in fiscal year 2011 included earnings contributions from a project, which
expired as planned in the third quarter 2012. If these earnings effects are
not considered, the adjusted EBIT margin for 2012 even increases by around
0.6 percentage points. '

Growth in all business segments
SAF-HOLLAND's worldwide growth was supported by all business segments.
About 55 percent of Group sales was provided by the Trailer Systems
Business Unit, which generated EUR 473.5 million (previous year: EUR 472.8
million). In the previous financial year 2011, this segment had increased
its sales as compared to the prior year by 46 percent, thus reaching a
record level which, in 2012, it was possible to sustainably consolidate.
Sales volume developed positively primarily in North America, where the
business unit profited from pent-up investment demand among freight
forwarders and fleet operators as well as from increasing interest in their
axle and suspension systems. The gross margin for the business segment
improved slightly to 9.3 percent (previous year: 9.1 percent). The adjusted
EBIT reached EUR 14.3 million (previous year: EUR 14.8 million), largely
corresponding to the prior year level.

The Powered Vehicle Systems Business Unit increased sales to EUR 157.6
million (previous year: EUR 154.0 million) and once again accounted for
around 18 percent of total sales. The adjusted EBIT of the segment rose at
an even greater rate than sales, recording a growth of about 10 percent to
EUR 15.6 million (previous year: EUR 14.2 million). The gross margin
increased to 16.8 percent (previous year: 16.6 percent). The business
segment thus managed to fully compensate, both in terms of sales and on the
earnings side, for an extensive project order, major parts of which expired
as planned in the third quarter of 2011. In addition to the improved
customer structure, an optimized product mix contributed to this
development.

The Aftermarket Business Unit once again proved to be a reliable driver of
growth. The business segment, which is largely independent from economic
cycles, achieved a sales increase of 11.7 percent to EUR 228.5 million
(previous year: EUR 204.5 million). As a result, the segment's share of
Group sales increased to 26.6 percent (previous year: 24.6 percent). In the
medium-term, SAF-HOLLAND wants to generate one third of its total sales in
the aftermarket business and, in so doing, sustainably expand the Group's
independence from market developments related to the economic cycle. With a
gross profit of EUR 85.8 million (previous year: EUR 81.0 million) and a
correspondingly high gross margin, the company's second biggest business
segment again highlighted its important role as an earnings driver.
Adjusted EBIT for the Business Unit increased to EUR 33.1 million (previous
year: EUR 32.1 million).

Significant increase in cash flow from operating activities
In the Group, SAF-HOLLAND increased net profit to EUR 156.2 million
(previous year: EUR 148.8 million), which represents an improved gross
margin of 18.2 percent (previous year: 17.9 percent). On the cost side, the
focus was on laying the groundwork for further, sustainable growth. The
company increased expenditures for research and development as planned by
about one fifth to EUR 18.0 million (previous year: EUR 14.9 million). For
global sales, EUR 53.5 million (previous year: EUR 48.7 million) was
invested. Cash flow from operating activities before income tax payments
increased to EUR 59.5 million (previous year: EUR 46.5 million).
Contributing to this, among other things, was a non-recourse factoring
agreed in 2012 which amounted to EUR 7.8 million at the end of the
reporting year, thus nearly compensating for the in 2011 suspended discount
program for customers in the USA.

Improved financing strengthens equity and liquidity
The capital structure was also further optimized. On December 31, 2012 the
equity of SAF-HOLLAND was EUR 197.9 million (previous year: EUR 175.6
million). On the same date, the equity ratio reached 36.9 percent (previous
year: 32.4 percent).

With the closing of a new syndicated loan in October 2012 and the
associated early repayment of existing credit lines as well as the emission
of a corporate bond in November 2012, SAF-HOLLAND completed the decisive
step toward the reorganization of the financing structure. The advantages
associated with this became visible already in the reporting year:
liabilities from interest-bearing bank loans as of December 31, 2012
decreased to EUR 160.4 million (December 31, 2011: EUR 175.0 million). Net
debt on the same date decreased to EUR 141.8 million (December 31, 2011:
EUR 159.7 million). Including the agreed credit facility, SAF-HOLLAND had
available on December 31, 2012 a total liquidity that was nearly double as
compared to the prior year of EUR 140.5 million (previous year: EUR 70.7
million).

Wilfried Trepels, CFO of SAF-HOLLAND: 'The optimized financing structure
gives us considerable stability and secures our growth on the financial
side over the long term. In addition, we achieved significantly greater
financial flexibility and favourable conditions. In the past financial year
alone, we were able to reduce interest expenses in the amount of about EUR
6.3 million.'

Number of employees generally stable
Worldwide, SAF-HOLLAND employed an average of 3,118 people in financial
year 2012 (previous year: 3,107) with the largest number of locations in
North America. In order to further expand the company's technological edge,
around 5 percent of all employees work in the fields of development,
application engineering and testing. In the reporting year, SAF-HOLLAND
registered a total of 20 new patent families and numerous associated
partial or supplementary registrations.

On the way to EUR 1 billion sales
With the results of the election in Italy, uncertainty over the future
course of the financial and economic crisis in the euro zone has increased.
In addition, the sovereign-debt crisis in the American economic area is
once again in the spotlight. Against this background, SAF-HOLLAND
anticipates an initial reserved sales development in both regions in 2013
which should then pick up in the second half of the year.

Assuming that the European economy recovers slightly as forecast, Group
sales of between EUR 875 million and EUR 900 million are targeted for the
full-year 2013. The sales growth should be accompanied by an adjusted EBIT
of above EUR 60 million which would result in a stable or increasing
adjusted EBIT margin. Furthermore, no major one-time negative effects on
earnings in fiscal year 2013 are anticipated. As a consequence a
significant improvement in the actual result for 2013 is expected.

The medium-term goal of SAF-HOLLAND continues to be to achieve Group sales
of EUR 1 billion in 2015 with an adjusted EBIT margin of 10 percent. This
is based on the condition that the global economy becomes more stable. The
company continues to see particular growth potential in three areas:
expansion of the North American market share in the Trailer Systems
segment, a broadening of the aftermarket business around the world and
increasing involvement in the BRIC countries.

Notes:
In financial year 2012, SAF-HOLLAND applied the new accounting standard IAS
19R. This impacts the consolidated financial statements in particular with
regard to the consolidated statement of comprehensive income, the
consolidated balance sheet and the statement of changes in equity of the
Group. For better comparability, IAS 19R was applied retroactively to the
financial year 2011, which has led to corresponding adjustments of the
previous year figures. More detailed information can be found in the
SAF-HOLLAND Annual Report 2012 on page 60.

EBIT was adjusted for the following items that are not originally
attributable to the operating business: amortization from the purchase
price allocation and impairment reversals on goodwill and intangible assets
from the impairment tests as well as restructuring and integration costs.

Company Profile:
With turnover of approximately EUR 860 million in 2012 and more than 3,000
employees, SAF-HOLLAND S.A. is one of the world's leading manufacturers and
suppliers of premium product systems and components primarily for trailers
as well as trucks, buses and recreational vehicles. The product range
encompasses axle and suspension systems for trailers, coupling devices,
kingpins and landing legs. SAF-HOLLAND sells its products on six continents
to Original Equipment Manufacturers (OEMs) in the replacement parts market
and, in the aftermarket business, to the OEM's Original Equipment Suppliers
(OESs), as well as by means of a global service and distribution network.
Through this network, SAF-HOLLAND re-sells its products to end users and
service centers. SAF-HOLLAND has thus established itself as one of the few
manufacturers in its sector that is internationally positioned with an
extensive product range and a broad service network. SAF-HOLLAND S.A. is
listed in the Prime Standard of the Frankfurt Stock Exchange and is among
the stocks in the SDAX (ISIN: LU0307018795).

Contact:
SAF-HOLLAND GmbH
Claudia Hoellen
Hauptstraße 26
63856 Bessenbach

Phone +49 6095 301-617
claudia.hoellensafholland.de

End of Corporate News


Michael Schickling
Director Investor Relations / Corporate Communications
Tel. +49 (0)6095 301 617

SAF-HOLLAND SE
Hauptstraße 26
D-63856 Bessenbach
Deutschland