SAF-HOLLAND: Euler Hermes Rating confirms BBB rating - outlook stable

SAF-HOLLAND: Euler Hermes Rating confirms BBB rating - outlook stable

Luxembourg, May 20, 2019. SAF-HOLLAND S.A. ("SAF-HOLLAND"), one of the world's leading suppliers of truck and trailer components, today published the 2019 summarised rating report provided by Euler Hermes Rating GmbH ("Euler Hermes Rating"), confirming SAF-HOLLAND's BBB rating and stable outlook for the next 12 months.

Euler Hermes Rating specifically highlights the Company's sustainable growth prospects from the increasing global transportation volumes, leading market positions in trailer axles and suspension systems in the EMEA region and India, fifth-wheel couplings in the Americas, as well as it's structurally growing, less cyclical and high-margin spare parts business. The acquisitions of V.Orlandi S.p.A. in Italy, York Transport Equipment in India, Axscend Ltd. in Great Britain, PressureGuard in the US and Stara Group in Finland are also considered positive.

The assessment of the slightly higher business risk also reflects the high dependency on the cyclical commercial vehicle industry and intense competition.

SAF-HOLLAND's financial risk continues to be rated "low" by Euler Hermes Rating, who points to SAF-HOLLAND's stable earnings power, high level of internal financing potential and very good financial flexibility. According to Euler Hermes Rating, acquisition-related cash outflows led to a temporary deterioration in the leverage ratio and the debt amortisation periods (Net debt / EBITDA) in the 2018 financial year and are expected to improve significantly as early as 2019.

Dr Matthias Heiden, CFO of SAF-HOLLAND says: "We are satisfied with the rating result overall. We will continue to rigorously implement the Group-wide operational excellence programmes and our measures to sustainably improve the net working capital. This should provide us a margin to improve our issuer rating."



SAF-HOLLAND S.A., located in Luxembourg, is the largest independent listed supplier to the commercial vehicle market in Europe delivering mainly to the trailer markets. With sales of approximately EUR 1,301 million in 2018, the Company is one of the world's leading manufacturers and suppliers of chassis-related systems and components primarily for trailers, trucks, buses, and recreational vehicles. The product range comprises axle and suspension systems, fifth wheels, kingpins, and landing gear marketed under the brands SAF, Holland, Neway, KLL, V.Orlandi and York. SAF-HOLLAND sells its products to Original Equipment Manufacturers (OEM) on six continents. The Group's Aftermarket business supplies spare parts to the service networks of Original Equipment Suppliers (OES), as well as to end customers and service centers through its extensive global distribution network. SAF-HOLLAND is one of the few suppliers in the truck and trailer industry that is internationally positioned in almost all markets worldwide. With the innovation campaign "SMART STEEL - ENGINEER BUILD CONNECT" SAF-HOLLAND combines mechanics with sensors and electronics and drives the digital networking of commercial vehicles and logistics chains. More than 4,400 committed employees worldwide are already today working on the future of the transportation industry.


Michael Schickling
Head of Investor Relations and Corporate Communications
Tel: +49 (0) 6095 301 617

Future-oriented statements

This press release contains certain future-oriented statements that are based on current assumptions and forecasts made by the management of SAF-HOLLAND S.A. Various known and unknown risks, uncertainties and other factors may lead to the actual results, financial position, development or performance of the company deviating considerably from the appraisals specified here. The company assumes no obligation to update future-oriented statements of this nature or adapt them to future events or developments.