Schaeffler Ag · XETR:SHA0
Schaeffler — Investor Presentation (April 2016)
38 slides from Schaeffler's investor presentation, April 2016
Slide 1: Schaeffler Capital Market Presentation
Schaeffler Capital Market Presentation April 2016
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. The words "anticipate", "assume", "believe", "estimate", "expect", "intend", "may", "plan", "project“, "should" and similar expressions are used to identify forward-looking statements. Forward-looking statements are statements that ar
Slide 3: Agenda
Agenda 1 Overview 2 Business profile and investment highlights 3 Financial Results FY 2015 4 Outlook and Summary 3 Schaeffler AG - Capital Market Presentation
Slide 4: Schaeffler Group – A leading integrated automotive and industrial supplier
1 Overview Schaeffler Group – A leading integrated automotive and industrial supplier Schaeffler at a glance Key financials in EUR mn unless otherwise indicated Leading integrated automotive and industrial supplier of high- precision components and systems 2014 2015 Global footprint with around
Slide 5: Strong track record of above-average growth and profitability
1 Overview Strong track record of above-average growth and profitability Development of sales Development of EBIT 2006 – 20151) 2006 – 20151) in EUR bn in EUR bn 1.7 1.72) 13.2 CAGR +5% 12.1 1.62) 1.5 1.5 11.1 11.2 1.42) 10.7 9.5 1.5 1.4 9.0 1.1 1.1 8.9 8.3 1.0 13% margin 7.3 12% margin 1.0 0.4 2006
Slide 6: Proactive cash flow management over the cycle
1 Overview Proactive cash flow management over the cycle Development of capital exenditures Development of operating cash flow 2006 – 20151) 2006 – 20151) in EUR mn in EUR mn 1,372 1,2712) 1,137 1,133 1,091 1,069 1,021 1,027 978 1,025 933 920 890 860 857 773 8% of sales 597 572 6% of sales 361 321 2
Slide 7: Our success factors – Quality, technology and innovation
1 Overview Our success factors – Quality, technology and innovation Outstanding application expertise and production Significant R&D spend technology in EUR mn 720 593 611 622 1 Quality, Technology and Innovation: State-of-the-art Plants, R&D and testing facilities Rank 2 in number of patent reg
Slide 8: Customers base – Global and diversified
2 Business profile and investment highlights Customers base – Global and diversified Automotive customers Industrial customers ~ 75% of ~ 25% of Other customers ~40% Schaeffler sales Other customers ~85% Schaeffler sales Top 10 customers Top 10 customers ~60% of Automotive ~15% of Industrial sales s
Slide 9: Product offering – Leader for critical components / systems in Automotive
2 Business profile and investment highlights Product offering – Leader for critical components / systems in Automotive ~70% of Automotive division sales are non-bearing related Rolling Engine systems Valve train bearings (26% of sales in 2015) components Strut bearings Variable Torque camshaft timer
Slide 10: Product offering – Leader bearing supplier to over 60 industrial sectors
2 Business profile and investment highlights Product offering – Leader bearing supplier to over 60 industrial sectors ~ 85% of Industrial division sales are bearing related Rotary table Linear guidance systems bearings with Active measuring magnetic system Spherical bearings plain Cylindrical bearin
Slide 11: Footprint – Integrated global manufacturing & R&D
2 Business profile and investment highlights Footprint – Integrated global manufacturing & R&D Global footprint US Europe Cheraw (2) Danbury China Germany Italy Fort Mill (2) Anting Bühl Momo Joplin Europe Nanjing Herzogenaurach Spartanburg Suzhou Homburg (3) Troy Taicang (
Slide 12: Our strategic concept – Long-term growth from "Mobility for tomorrow"
2 Business profile and investment highlights Our strategic concept – Long-term growth from "Mobility for tomorrow" Key mega trends 4 focus areas 1 Eco-friendly drives Urban mobility 2 Urbanization Society trends Population growth Increasing complexity Technology trends Digitalization “Mobili
Slide 13: Schaeffler equity story
2 Business profile and investment highlights Schaeffler equity story 3 pillars 1 Out-performance 2015 FX-adjusted sales growth of 5.8%, EBIT margin before in Automotive special items at 13.6% Best-in-class business with superior growth and margin profile Out-performance of global light vehicle
Slide 14: Automotive division again strongly outperforms the market in FY 2015
2 Business profile and investment highlights 1 Automotive division again strongly outperforms the market in FY 2015 Sales and EBIT margin in EUR mn FY 14 FY 15 in EUR mn w/o FX effects 8,986 14.1% 8,986 Engine 2,266 2,585 7,658 8,164 6.1% Systems Transmission 10.8% 3,826 4,240 Systems 4.9% Chassis
Slide 15: Automotive – Best-in-class business with superior growth and margin
2 Business profile and investment highlights 1 Automotive – Best-in-class business with superior growth and margin Combustion engine dominant but will be further electrified... …to meet CO2 reduction targets Powertrain concepts CO2 legislation enacted worldwide 220 2% 1% 9% 19% 35% 185 g CO2/km 98%
Slide 16: Automotive – Best-in-class business with superior growth and margin
2 Business profile and investment highlights 1 Automotive – Best-in-class business with superior growth and margin Content per vehicle growth1) Leading sector margins EBIT margin (%) Europe Americas Greater China Asia/Pacific 16% 14% +2% 12% +10% +16% 10% +8% 8% 6% 4% Schaeffler Automotive2) Global
Slide 17: Industrial division with mixed development in FY 2015
2 Business profile and investment highlights 2 Industrial division with mixed development in FY 2015 Sales and EBIT margin Sales development Industrial Old structure in EUR mn in EUR mn 3,406 3,233 3,138 3,041 FY 14 FY 15 w/o FX effects Industrial 3.7% 1,977 2,051 -2.7% Applications Industrial 1.8
Slide 18: Industrial – Growth and margin upside from program CORE
2 Business profile and investment highlights 2 Industrial – Growth and margin upside from program CORE Key issues Industrial division Strategic target 1 Sales development and profitability below expectation Industrial business contributes 25% to Group sales by 2020 2 Decreasing market share with hig
Slide 19: Industrial – Growth and margin upside from program CORE
2 Business profile and investment highlights 2 Industrial – Growth and margin upside from program CORE Overview of Program CORE Program CORE Key elements Actions Program CORE announced on Aug. 20, 2015 with 4 main drivers (Growth, Overhead, Delivery Performance, Efficiency) Strengthen high-volum
Slide 20: Strong underlying free cash flow generation
2 Business profile and investment highlights 3 Strong underlying free cash flow generation Free Cash Flow Key aspects in EURm 2014 2015 EBITDA 2,172 2,096 Free Cash Flow increased to EUR 543 mn before one- offs despite a 20% increase in capital expenditures Interest paid (520) (508) Interest recei
Slide 21: Cash flow generation – Further deleveraging expected going forward
2 Business profile and investment highlights O3 Cash flow generation – Further develeraging expected going forward Corporate structure (as of April 5, 2016) Key elements Simplified view Net debt lowered by EUR 1,061 mn in Q4 2015 (versus 9/30/15) Family Shareholders Leverage ratio at 2.1x1); Tar
Slide 22: Overview key financials FY 2015
3 Financial Results FY 2015 Overview key financials FY 2015 in EUR mn FY 14 FY 15 FY 15 vs. FY 14 Q4 14 Q4 15 Q4 15 vs. Q4 14 +9.1% +4.6% 1 Sales 12,124 13,226 3,100 3,244 +3.5%1) +1.3%1) 1,523 1,402 -7.9% 293 151 -48.5% 2 EBIT 1,5612) 1,6762) +7.4% 3432) 4182) +21.9% 12.6% 10.6% 9.5% 4.7% EBIT marg
Slide 23: Sales FY 2015 up 9.1% – FX-adj. up 3.5%
3 Financial Results FY 2015 1 Sales FY 2015 up 9.1% – FX-adj. up 3.5% Sales FY 2015 sales by region in EUR mn Y-o-y growth (w/o FX effects) Asia/Pacific +13.5% (+5.0%) Greater China 10% +23.5% (+6.0%) 3,345 3,387 14% 3,250 3,244 3,014 3,034 3,100 2,976 53% 22% Americas Europe +17.5% (+8.2%) +2.1% (+
Slide 24: EBIT margin FY 2015 12.7%
3 Financial Results FY 2015 2 EBIT margin FY 2015 12.7%1) EBIT1) Key aspects in EUR mn FY 15 EBIT1) margin slightly below previous year due 441 to increase in R&D expenses and temporarily higher 406 429 433 418 freight costs 7 383 384 343 Adjustments: one-off effects in EBIT 2015 include 50 267
Slide 25: Net income FY 2015 EUR 591 mn
3 Financial Results FY 2015 3 Net income FY 2015 EUR 591 mn Net income1) Reconciliation of net income in EUR mn in EUR mn 654 591 -121 -8 -6 72 220 229 215 212 167 142 FY 2014 Δ EBIT Δ Financial Δ Taxes Δ Minorities FY 2015 Result 70 Key aspects 654 591 Improved financial result led to higher net
Slide 26: Free cash flow FY 2015 EUR 370 mn
3 Financial Results FY 2015 4 Free cash flow FY 2015 EUR 370 mn Free cash flow FY 2015 ∆ Free Cash Flow FY 2015 vs. FY 2014 in EUR mn in EUR mn 370 2,096 -116 48 595 76 5 168 47 81 -1,025 FCF EBITDA Δ Capex Net Taxes Other FCF FY 2014 Working Interest FY 2015 Capital payments -292 Key aspects -1731)
Slide 27: Leverage ratio FY 2015 2.1x
3 Financial Results FY 2015 5 Leverage ratio FY 2015 2.1x Net financial debt Change in net financial debt in EUR mn in EUR mn 286 5,778 6,190 6,245 -163 5,755 5,768 5,778 5,950 5,529 -1,266 4,889 210 44 4,889 2.7 2.7 2.7 2.6 2.6 2.6 2.6 2.1 Q4 2014 FX effect Δ Cash Repayment Bond Other Q4 2015 Posit
Slide 28: Schaeffler Value Added 931 EUR mn – RoCE 22.5%
3 Financial Results FY 2015 6 Schaeffler Value Added 931 EUR mn – RoCE 22.5% Schaeffler Value Added1) Key aspects Schaeffler Value Added in EUR mn +46 mn 931 885 803 787 Schaeffler Value Added2) measures internal value creation on a group-wide basis Schaeffler Value Added increased in 2015 to EU
Slide 29: Guidance 2016
4 Outlook and Summary Guidance 2016 Sales growth EBIT-Margin 2015 Guidance 2016 2015 Guidance 2016 3.5% 3-5% 12.7% 12-13% FX-adjusted FX-adjusted before one-off effects before one-off effects Free Cash Flow Market assumptions 2015 Guidance 2016 Automotive: global Light Vehicle production growth of
Slide 30: Financial calendar 2016
Financial calendar 2016 March 15, 2016 Results FY 2015 March 17, 2016 BofAML Global Industrial Conference, London April 22, 2016 Annual General Meeting, Nuremberg May 12, 2016 Results Q1 2016 June 7, 2016 JP Morgan Annual Autos Conference, London June 8, 2016 UniCredit Automotive Credit Conference,
Slide 31: IR contact
IR contact Investor Relations phone: + 49 9132 82 4440 Christoph Beumelburg +49 (0)9132 82 5414 fax: + 49 9132 82 4444 Niels Fehre +49 (0)9132 82 85805 Email:[email protected] Susanne Sievers +49 (0)9132 82 4408 Web: www.schaeffler.com/ir 31 Schaeffler AG - Capital Market Presentation
Slide 32: Sales per division
Backup Sales per division Sales Automotive Sales Industrial in EUR mn in EUR mn 2,510 2,554 2,482 2,447 2,227 2,231 2,316 2,212 835 833 803 803 787 784 764 762 8,986 9,993 3,138 3,233 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2014 2015 Growth rate y-o-y (w/o FX effects) Growth rate y
Slide 33: EBIT per division
Backup EBIT per division EBIT Automotive EBIT Industrial in EUR mn in EUR mn 349 352 356 314 319 326 7 301 305 34 110 231 92 92 82 79 81 326 342 62 292 17 36 301 314 1,260 1,362 17 16 26 -12 1 125 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2014 2015 EBIT1) margin in % EBIT1) margin in
Slide 34: Automotive division
Backup Automotive division Sales and market development Automotive Key aspects Europe Americas Greater China Asia/Pacific Europe: +13% +11% Under-performance in FY 2015 as strong +5% +7% +2% demand for dual mass flywheels and ramp-up of +2% variable cam timers could not fully compensate -1% -3%
Slide 35: Industrial division
Backup Industrial division New structure Industrial Applications sales by sector cluster 8 sector clusters Wind Raw Materials vs. prev. year (w/o FX effects) Aerospace Rail Offroad Two-Wheelers Wind Power Transmission Industrial Automation Two-Wheelers Industrial Aftermarket + Industrial Distributio
Slide 36: Financial Result
Backup Financial Result Financial Result1) Reconciliation Financial Result in EUR mn in EUR mn -79 -196 375 EUR -72 mn vs FY 2014 547 272 12M Non-cash One-off 12M 2015 valuation effects excl. one-offs and 2015 effects loans / refinancing valuation effects 176 as reported bonds 2015 161 122 125 100 i
Slide 37: Working Capital and Capex
Backup Working Capital and Capex Working capital Capex2) in EUR mn in EUR mn 357 3,022 2,944 2,900 2,880 2,696 2,778 2,548 2,662 282 244 257 242 202 155 143 857 1,025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2014 2015 In % of sales In % of sales 23.6 24.0 24.6 21.0 24.2 22.9 22.0 20
Slide 38: Overview on current corporate and financing structure
Backup Overview on current corporate and financing structure Corporate structure (as of April 5, 2016) Financing structure (as of December 31, 2015) TopCo Nominal INA-Holding Schaeffler Debt instrument Interest Maturity Rating GmbH & Co. KG (mn) 100% HoldCo Loans: HoldCo Term Loan (EUR) 5002) E+4.25