DGAP-News: SAF-HOLLAND presents new organizational

DGAP-News: SAF-HOLLAND S.A. / Key word(s): Miscellaneous SAF-HOLLAND presents new organizational structure at Company's Capital Markets Day and reaffirms 2020 targets 10.12.2015 / 16:21 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- * Group to be organized regionally as part of its Strategy 2020 * Sales to reach EUR 1.5 billion by 2020 Luxembourg, December 10, 2015 - At the Company's Capital Markets Day 2015 event at the Squaire Conference Center in Frankfurt, Europe's largest listed commercial vehicle supplier presented its new organizational structure. The Group's new structure reflects the targets of the 2020 growth strategy presented in May of this year and calls for an even more powerful and regionally sub-divided Group organization. The Group's previous structure organized as three business units - Trailer Systems, Powered Vehicle Systems, and Aftermarket - will now be regionally focused on the three regions of EMEA/India; Americas consisting of North, Central, and South America; and APAC/China. The SAF-HOLLAND Group, which currently derives 90% of sales from the core markets of Europe and North America, plans to expand Group sales in the regions outside of today's core markets from their current share of roughly 10% to a total of 30% under Strategy 2020. The focus of this expansion will be on China and the NEXT-11 and MINT markets. Strategy 2020 projects sales increase to EUR 1.5 billion Based on sales of EUR 959.7 million in fiscal year 2014, Group sales are projected to grow organically to roughly EUR 1,250 million by 2020. This growth is expected to be augmented by collaborations, joint ventures, and acquisitions, which should bring Group sales to a total of EUR 1.5 billion. At the same time the company is very confident that it will achieve an adjusted EBIT margin at a level of at least 8%. One focal point will be the rapid penetration of new growth markets and a stronger position in existing markets. We intend to boost our spare parts business by establishing new international distribution centers and new sales offices in the markets already described as well as through targeted acquisitions. Financial structure for Strategy 2020 already in place SAF-HOLLAND has already put the necessary financial structure in place to achieve the targets defined in Strategy 2020 by expanding its credit line to EUR 156 million and issuing a promissory note loan. The promissory note was oversubscribed bringing the EUR 125 million issue volume initially targeted to a total of EUR 200 million. The repayment profile consisting of 5-, 7-, and 10-year maturities are to a large extent at fixed interest rates. CEO, Detlef Borghardt emphasized, "Our Strategy 2020 places the focus on selective megatrends: The strong, global growth of the middle class will result in higher purchasing power and demand for more goods that will ultimately need to be transported with trucks and trailers. This is particularly true in terms of the Asian-Pacific, Middle Eastern and African markets. We are confident that the emerging markets will continue to drive growth in the medium-term, particularly the growth of the transportation sector. We see our technological leadership together with our globally recognized brands and regional application know-how and production opening up new and exciting growth opportunities for our products in these markets. Our new Group structure places us in an even more powerful position to allow us to take better advantage of added growth areas in new markets and realize synergies between the former business units." We also see significant growth in the North American market throughout this period. The focus of our agenda in terms of products is on the expansion of our trailer axle and suspension system business for vocational trucks and specialty vehicles. An important aspect will be on continued weight reduction in the established markets with the help of newly introduced weight-optimized axle and suspension systems and components to save fuel and reduce CO2 emissions. Large contract from China for air suspension systems The Company sees excellent opportunities for air suspension systems that already enjoy a promising market position in the USA and the market for electric buses in China. SAF-HOLLAND today is also announcing its first large reference contract for truck suspension systems in China from a leading truck manufacturer. The contract will begin in 2018 and in the years that follow will make a peak contribution of over EUR 15 million to Group sales. Additional projects are currently in negotiation. Positive sales and earnings trend expected for full year 2015 - Solid outlook Despite the market downturns in Brazil, Russia, and Australia, the Company reaffirmed its full year 2015 financial targets, which were raised slightly in the second quarter of 2015, leaving the expectation for Group sales at least at the upper end or slightly above the initial target range of EUR 980 million to EUR 1,035 million (previous year: EUR 959.7 million). Cost discipline combined with higher production efficiency and satisfactory capacity utilization in most markets should lead to disproportionately strong earnings growth. Thus, the Company continues to expect a noticeable year-over-year rise in profitability and an adjusted EBIT margin at the lower end of the 9 to 10% range (previous year: 7.4%). Assuming continued stability in the economies and industries of our core markets, management reaffirms its forecast for adjusted EBIT for the full year of 2015 of slightly more than EUR 90 million (previous expectation: around EUR 90 million). Following a strong 2015 fiscal year, management from today's perspective expects 2016 to become another solid year with stable operational performance which will pave the way for the successful execution of Strategy 2020. A detailed outlook for the upcoming 2016 fiscal year will be presented until the analyst conference on March 11, 2016. Company profile: SAF-HOLLAND S.A., located in Luxembourg, is the largest listed supplier to the commercial vehicle market in Europe. With sales of approximately EUR 960 million in 2014 and more than 3,000 employees, 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 and is marketed under the brands SAF, HOLLAND, and Neway. SAF-HOLLAND sells its products to Original Equipment Manufacturers (OEMs) on six continents. The Aftermarket Business Unit sells spare parts to the Original Equipment Service (OES) of the manufacturers and to end customers and service centers through its own extensive global service and 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. Contact: SAF-HOLLAND GmbH Stephan Haas Hauptstraße 26 63856 Bessenbach Phone +49 6095 301-617 Stephan.Haas@safholland.de --------------------------------------------------------------------------- 10.12.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: SAF-HOLLAND S.A. 68-70, boulevard de la Pétrusse L-2320 Luxembourg Grand Duchy of Luxembourg Phone: +49 6095 301 - 0 Fax: +49 6095 301 - 260 E-mail: info@safholland.de Internet: www.safholland.com ISIN: LU0307018795, DE000A1HA979, WKN: A0MU70, A1HA97 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart End of News DGAP News Service --------------------------------------------------------------------------- 422845 10.12.2015