JOST Werke (JST) CMD 2024 summary

Strategic ambitions and 2030 growth targets

• Targets sales over €2 billion by 2030, with a CAGR above 7%, adjusted EPS of €10 per share, and an EBIT margin corridor of 10–12% (midpoint 11%), up from previous guidance.

• Growth is driven equally by organic and inorganic initiatives, with M&A expected to contribute about half of the sales increase.

• Aims to become the global No. 1 supplier for on- and off-highway commercial vehicles, leveraging technology leadership, operational excellence, and a diversified product portfolio.

• Focuses on expanding agriculture and off-highway segments, targeting these to represent 50% of sales, and prioritizes regional expansion, market share gains, and cross-selling.

• Product portfolio optimization, upselling through technology, and new product development are key levers for revenue per customer growth.

Financial performance and guidance

• Sales grew from €701m in 2017 to €1,250m in 2023, with adjusted EPS rising from €2.99 to €6.24 and ROCE improving to 21%.

• H1 2024 delivered €597m sales, 11.5% adjusted EBIT margin, and 19.7% ROCE, with leverage at 0.99x.

• Maintains a leverage target of 1.0–2.0x EBITDA, ROCE goal of 18%+, capex-to-sales ratio of 2.4–2.7%, and net working capital at 17.5–18.5% of sales.

• Dividend policy targets 25–30% of adjusted EPS, aiming for over €2.50 per share by 2030, with capital allocation prioritizing value-accretive M&A, deleveraging, dividends, and share buybacks.

• Average cash conversion rate to be 1.0 or above, supporting strong financial discipline.

Business development, innovation, and operational strategy

• Expansion into agriculture since 2020 has outperformed expectations, with a 6% CAGR in sales and higher-than-expected margins.

• R&D emphasizes technology leadership in automation, electrification, digital solutions, and sustainability, with cross-domain synergies between agriculture and transport.

• Operational excellence is driven by a global, asset-light footprint, automation, standardization, and global talent development.

• Aftermarket and spare parts business expected to grow in line with installed base and technology upgrades, dampening cyclical downturns.

• ESG integration includes reducing CO2 emissions by 53% by 2030, linking management compensation and financing to ESG targets, and progress in diversity and accident reduction.