KNORR-BREMSE COMPANY INFORMATION.
Key figures
Group
| 2017 | 2016 | 2015 | |
| Revenues [Euro mill.] | 6,154 | 5,471 | 5,824 |
| EBITDA [Euro mill.] | 1,116 | 1,052 | 1,269 |
| Margin [% of revenues] | 18.1% | 19.2% | 21.8% |
| EBIT [Euro mill.] | 904 | 886 | 1,099 |
| Margin [% of revenues] | 14.7% | 16.2% | 18.9% |
| EBT [Euro mill.] | 852 | 841 | 1,048 |
| Margin [% of revenues] | 13.9% | 15.4% | 18.0% |
| Net income [Euro mill.] | 587 | 567 | 711 |
| Margin [% of revenues] | 9.5% | 10.4% | 12.2% |
| Investments [Euro mill.] | 235 | 249 | 239 |
| Investments [% of revenues] | 3.8% | 4.6% | 4.1% |
| NWC [Euro mill.] | 782 | 719 | 710 |
| Days Working Capital [days] | 45.8 | 47.3 | 43.9 |
| OCF [Euro mill.] | 680 | 769 | 959 |
| FCF [Euro mill.] | 450 | 523 | 723 |
| ROCE [%] | 37.1% | 38.5% | 53.4% |
| Equity [Euro mill.] | 1,996 | 1,966 | 1,838 |
| Bilance sheet total [Euro mill.] | 5,727 | 5,435 | 4,715 |
| Equity-Ratio [%] | 34.8% | 36.2% | 39.0% |
| Personnel* [Number as of 31.12.] | 27,705 | 24,565 | 24,275 |
*incl. personnel leasing
Rail Vehicle Systems
| 2017 | 2016 | 2015 | |
| Revenues [Euro mill.] | 3,260 | 2,979 | 3,331 |
| EBITDA [Euro mill.] | 639 | 624 | 797 |
| Margin [% of revenues] | 19.6% | 20.9% | 23.9% |
| EBIT [Euro mill.] | 523 | 548 | 724 |
| Margin [% of revenues] | 16.1% | 18.4% | 21.7% |
| Personnel* [Number as of 31.12.] | 16,051 | 14,440 | 14,502 |
*incl. personnel leasing
Commercial Vehicle Systems
| 2017 | 2016 | 2015 | |
| Revenues [Euro mill.] | 2,891 | 2,493 | 2,492 |
| EBITDA [Euro mill.] | 504 | 426 | 468 |
| Margin [% of revenues] | 17.4% | 17.1% | 18.8% |
| EBIT [Euro mill.] | 421 | 358 | 398 |
| Margin [% of revenues] | 14.6% | 14.4% | 16.0% |
| Personnel* [Number as of 31.12.] | 11,082 | 9,674 | 9,320 |
*incl. personnel leasing
Financial strategy and outlook
With its divisions – Rail Vehicle Systems (RVS) and Commercial Vehicle Systems (CVS) – Knorr-Bremse has a resilient business model, supported by counterbalanced end-markets, broad geographical and customer diversification as well as strong localization strategy. A high share of aftermarket sales (approx. 35 % of the total revenue in 2017 based on German GAAP) provides additional stability. Together, both segments represent a synergistic portfolio, in terms of technology development, intellectual property and application know-how.
By virtue of key global megatrends such as urbanization, eco-efficiency, digitization and automated driving, the markets for rail and commercial vehicle systems offer long-term sustainable growth prospects.
Knorr-Bremse has a strong financial track record of revenue growth, profitability and cash generation. Since 1989, Knorr-Bremse has consistently outgrown its markets, growing revenues by more than 10 % per year (CAGR, based on German GAAP).
Knorr-Bremse targets in the medium term (i.e. within a horizon of 3 to 4 years) annual organic growth rates of revenues at a CAGR in the range of approximately 4.5 % to 5.5 %. The strong balance sheet provides headroom for additional growth through value-enhancing acquisitions. In the medium term, Knorr-Bremse targets an EBITDA margin expansion by approximately 150 basis points compared to the reported EBITDA margin for the fiscal year 2017. Both segments are expected to gradually increase their respective EBITDA margin. We expect the margin in the rail vehicle systems segment to grow at a slightly stronger rate.
We aim to maintain our investment grade credit ratings from Standard & Poor’s (A) and Moody’s (A2), both with “Outlook stable”, supported by our policy to maintain a financial leverage of net debt to EBITDA of below one in the medium term. We expect to keep such leverage ratio in line with our policy at all times, including immediately post financing of any acquisitions.
In order to achieve our financial objectives, we are building on the following strategic pillars:
- Setting industry standards by expanding our global technology leadership
- Being the system partner of choice for our customers
- Expanding our market share by continued international market penetration and global expansion
- Further pursuing our dedicated aftermarket strategy
- Further striving for cost and process excellence
