Schaeffler Ag · XETR:SHA0
Schaeffler — Investor Day (July 2017)
18 slides from Schaeffler's investor day presentation, Jul 20, 2017
Slide 1: Schaeffler Group
Schaeffler Group Klaus Rosenfeld Chief Executive Officer July 20, 2017 Capital Markets Day 2017 Bühl
Slide 2: Agenda Schaeffler Capital Markets Day – Accelerating the transformation
1 Introduction Agenda Schaeffler Capital Markets Day – "Accelerating the transformation" 1 08:15 – 09:00 Schaeffler Group Klaus Rosenfeld 2 09:00 – 09:45 Automotive Matthias Zink 3 09:45 – 10:15 Automotive Aftermarket Michael Söding 10:15 – 10:45 Break Schaeffler Capital Markets Day 4 10:45 – 11:30
Slide 3: Capital Markets Day 2017 – Our team today
1 Introduction Capital Markets Day 2017 – Our team today Klaus Rosenfeld Chief Executive Officer Dietmar Heinrich New Chief Financial Officer + Dr. Stefan Spindler Michael Söding Matthias Zink Prof. Dr. Peter Pleus CEO Industrial President Automotive CEO Automotive CEO Automotive Aftermarket Dr. Yil
Slide 4: Schaeffler Group – At a glance
2 Overview Schaeffler Group Schaeffler Group – At a glance Sales development 2013 – H1 2017 Key aspects 12,124 13,179 13,338 Leading automotive and industrial supplier of high-precision 11,205 components and systems 7,046 6,712 Global footprint with around 86,000 employees at about 170 locations
Slide 5: Above average profitability – Balance sheet strengthened
2 Overview Schaeffler Group Above average profitability – Balance sheet strengthened X% Sales Share Automotive Sales and EBIT 1) Y.Y% EBIT Margin Free Cash Flow and Net Debt 1) X.X% Capex in % of sales in EUR mn in EUR mn Y.Yx Leverage Ratio 370 CAGR CAGR ~ 5% +5% 13,338 5,744 ~1,700 2) 2) 2) ~735 1
Slide 6: Our way with the Capital Markets – A challenging journey
2 Overview Schaeffler Group Our way with the Capital Markets – "A challenging journey" 16.51 EUR 2nd CMD 7/20/17 Good start E-Mobility and into the year "Accelerated Strategy Scenario" "Mobility for tomorrow Q1 2017 Results Update Pre-release Equity Story H1 2017 Strategy 5/11/17 13.15 EUR communica
Slide 7: Strategy Mobility for tomorrow – 4 focus areas, 8 pillars, 16 initiatives
3 Strategy "Mobility for tomorrow" Strategy "Mobility for tomorrow" – 4 focus areas, 8 strategic pillars, 16 strategic initiatives Vision / Mission 4 Focus areas 8 Strategic pillars 16 Strategic initiatives 7 July 20, 2017 Capital Markets Day 2017 – Schaeffler AG
Slide 8: Strategy Mobility for tomorrow – One integrated Automotive and Industrial supplier
3 Strategy "Mobility for tomorrow" Strategy "Mobility for tomorrow" – One integrated Automotive and Industrial supplier One integrated model Key aspects Bearing & Components Technologies as internal bearing supplier for both divisions Manufacturing technology and system-know-how as key success D
Slide 9: Strategy Mobility for tomorrow – 3 key opportunities for the future
3 Strategy "Mobility for tomorrow" Strategy "Mobility for tomorrow" – 3 key opportunities for the future 1 E-Mobility 3 Digitalization 2 Industry 4.0 Separate Business Division "E- Group wide Digital Agenda with 4 Separate Organizational Unit Mobility" as of January 1st, 2018 key areas coordin
Slide 10: Digital Agenda – Increasing efficiency with self-learning machines
3 Strategy "Mobility for tomorrow" Digital Agenda – Increasing efficiency with self-learning machines Example: Ball Screw Driver Data Analytics Measure Fitting accuracy Analyse Real-time and historical data analyses Cloud 13% points higher success rate Optimize Algorithm-based optimization Act Machi
Slide 11: Schaeffler Equity story – main building blocks
4 Equity Story Schaeffler Schaeffler Equity story – 3 main building blocks Building blocks Key objectives Growth Outperformance Consistent growth above markets 1 in Automotive Best-in-class margin Margin Profitable growth Margin upside CORE program in execution and sustainable 2 in Industria
Slide 12: Automotive – Growing above market
4 Equity Story Schaeffler 1 Automotive – Growing above market Our growth formula Automotive Key aspects Production volume Ø Content per Vehicle The market is moving towards our growth growth accelerated scenario (2025: 50% ICE, 35% HEV, 15% BEV) øX 2010 – 2015: x1.51) + ICE cars +5% Ø CPV ICE Au
Slide 13: Industrial Division – Improving EBIT margin
4 Equity Story 2 Industrial Division – Improving EBIT margin Our EBIT targets Industrial Key aspects in EUR mn ~ 400 Industrial division on track to achieve EBIT margin target for 2018 of 10-11% ~ 40 ~ 320 Growth ~ 60 Efficiency Mid-term target of 11-13% EBIT margin remains in place for 2020 220
Slide 14: Use of cash – Balanced approach
4 Equity Story Schaeffler 3 Use of cash – Balanced approach Our Cash Flow formula Use of Cash Strong cash flow generation from operating + Operating Cash Flow1) business and 3 main uses of cash: Cash Annual Dividend pay-out 30-40% of net +/- Δ Working Capital income3) (Priority No. 1) generation
Slide 15: M&A strategy – search fields defined
4 Equity Story Schaeffler 3 M&A strategy – 7 search fields defined M&A strategy M&A Radar Approach Focus on technological competence to maintain our strong position as technology and innovation leader Focus on smaller add-on acquisitions that contribute to a sustainable value creation Acquisition
Slide 16: Moving forward – Where to improve
4 Equity Story Schaeffler Moving forward – "Where to improve" 1 Regular reporting of Order intake Automotive OE and Optimizing Order book Industrial our disclosure Semi annual disclosure starting in 2018 2 Intensifying New CFO our communication New Head of IR 3 Schaeffler Annual Guidance 2
Slide 17: Guidance 2017 – Financial Ambitions 2020
5 Summary and Key Messages Guidance 2017 – Financial Ambitions 2020 Guidance 2017 Financial Ambitions 2020 New Guidance for 2017 as of June 26, 2017 Sales Growth Ø 4-6% p.a. Sales growth 4-5% w/o external growth, FX-adjusted FX-adjusted EBIT Margin 12-13% in 2020 Before one-off effects, w/o external
Slide 18: Accelerating our transformation – Key messages
5 Summary and Key Messages Key messages Dynamic and fast changing environment requires accelerated transformation building on 1 our integrated Automotive and Industrial business model Strategy "Mobility for tomorrow" provides a convincing framework with E-Mobility, 2 Industry 4.0, and Digitalization