Schaeffler Ag · XETR:SHA0
Schaeffler — Investor Day (September 2018)
17 slides from Schaeffler's investor day presentation, Sep 20, 2018
Slide 1: 4.1 Industrial
4.1 Industrial Dr. Stefan Spindler CEO Industrial September 20, 2018 Capital Markets Day 2018 Berlin
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 Industrial at a glance 2 Focus on growth 3 Focus on resources 4 Conclusion 3 September 20, 2018 Capital Markets Day 2018 – 4.1 Industrial
Slide 4: Dr. Stefan Spindler – Today's Industrial speaker
1 Industrial at a glance Dr. Stefan Spindler – Today's Industrial speaker Dr. Stefan Spindler (57) CEO Industrial 1986: Mechanical Engineer and Doctorate (1992) at the Technical University in Munich 1986 – 2002: Various positions at MTU and Liebherr in the industrial engine and power train busin
Slide 5: Industrial at a glance – Successful turnaround in 2017
1 Industrial at a glance Industrial at a glance – Successful turnaround in 2017 Sales and EBIT margin Industrial sales by region H1 2018 in EUR mn +5.7%1) 3,150 Greater China 17% 9% Asia/Pacific 3,000 +10.0%1) 1,681 1,590 17% Americas Europe 57% 2016 2017 H1 2017 H1 2018 EBIT margin2) 7.3% 8.0% 8.6%
Slide 6: Revitalizing the Industrial Division – Strategic and structural realignment since 2015
1 Industrial at a glance Revitalizing the Industrial Division – Strategic and structural realignment since 2015 2015 2016 2017 2018 New Industrial New New Industry 4.0 Services Strategy Industry 4.0 Industry 4.0 organization Footprint Head 3 expansion Mr. 2 - Localization Hantikainen linear China Me
Slide 7: Leverage market growth in Asia and cope with market volatility
2 Focus on growth Leverage market growth in Asia and cope with market volatility Industrial production1) growth rates 2001-2023E Historic vs. future growth (YOY in %) (CAGR ’17-’23 vs. '00-'17) World 3.3% 3.8% Forecast 20 India 7.1% 13.1% Greater China 4.7% 13.7% 10 South East Asia 2.9% 4.4% Growth
Slide 8: Balance Industry 4.0 growth with growth, profit improvement and restructuring of core business
2 Focus on growth Balance Industry 4.0 growth with growth, profit improvement and restructuring of core business Target Strategy M&A Grow New business models Industry 4.0 Services Industry supported by digitalization 4.0 to Strengthen see breakout session technological Grow 3-4 % 10% of 3 competenci
Slide 9: Standard components – Digitalization for efficient and reliable sales growth
2 Focus on growth 1 Standard components – Digitalization for efficient and reliable sales growth New E-Commerce solution Industrial OriginCheck App State of the art e-commerce and support solution as central access Schaeffler’s digital solution simplifies checking of product point authenticity
Slide 10: Customized components – Improve Total Cost of Ownership (TCO)
2 Focus on growth 2 Customized components – Improve Total Cost of Ownership (TCO) High performance spindle bearings (Vacrodur steel) Optimized support bearings for Wind applications cost saving Standard Vacrodur steel 100Cr6 Innovative bearing steel that increases the nominal operating life by S
Slide 11: Increase content per application – Improve Total Cost of Ownership (TCO)
2 Focus on growth 3 Increase content per application – Improve Total Cost of Ownership (TCO) Rotative bearing solution package incl. condition monitoring for Linear bearing solution package incl. condition monitoring for electric motors production machinery Bearing system incl. condition monitorin
Slide 12: Increase content per application – Improve TCO and provide new services
2 Focus on growth 3 Increase content per application – Improve Total Cost of Ownership (TCO) and provide new services Rail 4.0 – Condition-based maintenance Railway axlebox generator Condition monitoring solution based on vibrations and other sensor Bearing system with electrical power generator
Slide 13: Operational Excellence – Reallocation of plants for better customer focus and higher efficiency
3 Focus on resources 4 Operational Excellence – Reallocation of plants for better customer focus and higher efficiency Before reallocation After reallocation: ~27 mn EUR cost savings for Industrial in 2021 Customers Customers Ind- Automotive OEM ustrial Increased customer orientation (37) (9) Auto
Slide 14: Localization initiatives to grow in Asia and improve profitability
2 Focus on growth 5 Localization initiatives to grow in Asia and improve profitability Footprint adjustments in Asia Japan Industrial Automation, Two Wheelers R&D China Small size to large size bearings and linear products Plant Vietnam Small size bearings; 250 jobs to be created in Phase I by
Slide 15: Profit improvement – Program CORE to ensure 11-13% EBIT margin in 2020
3 Focus on resources 6 Profit improvement – Program CORE to ensure 11-13% EBIT margin in 2020 Agenda 4+1 initiative Leveraging pricing opportunities 1 Growth Digitalization of sales processes Restructuring Cost of Relocation 2 Goods Sold Productivity improvement Program 11-13% EBIT CORE
Slide 16: Profit improvement – Program CORE: On Schedule
3 Focus on resources 6 Profit improvement – Program CORE to ensure 11-13% EBIT margin in 2020 Agenda 4+1 initiative Expected EBIT Impact – CORE Wave II Key aspects in mn EUR ► Program „CORE“ established in 2015 to revitalize the Industrial +55 Division and regain profitability 84 55 ► CORE Wave I su
Slide 17: Opportunities and Headwinds (until 2025)
4 Conclusion Opportunities and Headwinds (until 2025) Top Line Drivers Top Line Challenges 1. Industry 4.0 with a sales share of 10% in 2022 + + 1. Increased competitive pressure in standard business - 2. Market growth >4% in India, China and South East Asia + + 2. Moderate market growth with high p