Schaeffler Ag · XETR:SHA0
Schaeffler — Investor Presentation (August 2015)
26 slides from Schaeffler's investor presentation, August 2015
Slide 1: Schaeffler Capital Market Presentation
Schaeffler Capital Market Presentation August 2015
Slide 2: Agenda
Agenda 1 Schaeffler at a glance 2 Mobility for tomorrow 3 Financial Results H1 2015 2 Schaeffler Group | Capital Market Presentation | August 2015
Slide 3: 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 a
Slide 4: Leading integrated automotive and industrial supplier
1 Schaeffler at a glance Leading integrated automotive and industrial supplier Schaeffler at a glance Key financials (in EUR mn unless otherwise indicated) 2014 H1 2015 Leading integrated automotive and industrial Sales 12,124 6,732 supplier of high-precision components and systems % growth (y-o-y)
Slide 5: Strong track record of above-average growth and profitability
1 Schaeffler at a glance Strong track record of above-average growth and profitability Development of sales 2006 – LTM 20151) Development of EBIT and EBIT margin 2006 – LTM 2015 in EUR bn in EUR bn 12.9 1.7 12.1 1.5 CAGR +5% 11.1 11.2 1.5 1.5 10.7 1.5 1.42) 9.5 9.0 8.9 1.1 1.1 8.3 1.0 7.3 1.0 0.4 20
Slide 6: Leader for critical components and systems in automotive
1 Schaeffler at a glance Leader for critical components and systems in automotive Rolling Engine systems Valve train bearings components Strut bearings Variable Torque camshaft timer converter Transmission systems Ball screw drives for steering systems Belt & Chain drive systems Thermo- Wheel bearin
Slide 7: Leading bearing supplier to over 60 industrial sectors
1 Schaeffler at a glance Leading bearing supplier to over 60 industrial sectors Rotary table Linear guidance systems bearings with measuring Active system magnetic Spherical bearings plain Cylindrical bearings roller bearings with disc cage Radial insert ball bearings Cage-guided cylindrical roller
Slide 8: Integrated global manufacturing and R&D footprint
1 Schaeffler at a glance Integrated global manufacturing and R&D footprint Global footprint US Europe w Cheraw (2) w Danbury China Germany Italy Fort Mill (2) Anting Bühl Momo w w Joplin Europe w w Nanjing w w Herzogenaurach w w Spartanburg w Suzhou w Homburg (3) Troy w Taicang (3) w Schweinfurt (2)
Slide 9: Quality, Technology and Innovation – More than 2,500 new patents in 2014
1 Schaeffler at a glance Quality, Technology and Innovation – More than 2,500 new patents in 2014 Quality Innovation Number of new patent registrations in Germany1) 4 More than 50 quality awards received in 2014 4 General Motors recognized 24 Schaeffler plants 2,518 with "Supplier Quality Excellence
Slide 10: Long-term growth from “Mobility for tomorrow”
2 Mobility for tomorrow Long-term growth from “Mobility for tomorrow” Key mega trends 4 focus areas u Urbanization 1 Eco-friendly drives Urban mobility 2 Society trends u Population growth u Increasing complexity Technology trends u Digitalization 3 Interurban mobility Energy chain 4 Environmental u
Slide 11: Eco-friendly drives to increase energy efficiency and reduce CO2 emissions
2 Mobility for tomorrow 1 Eco-friendly drives to increase energy efficiency and reduce CO2 emissions Combustion engine dominant but will be further electrified... …to meet CO2 reduction targets Powertrain concepts 220 CO2 legislation enacted worldwide 2% 1% 9% 19% 185 35% g CO2/km 98% 150 China: 117
Slide 12: Mobility and energy chain
2 Mobility for tomorrow Mobility and energy chain 2 Urban mobility 3 Interurban mobility 4 Energy chain Population growth and urbanization Chinese cities connected by high- Global investments in new power plants speed trains and infrastructure 2011 – 2020 1990 Other Regenerative 4% 5.3bn people Sola
Slide 13: Overview key financials H1 2015
3 Financial Results H1 2015 Overview key financials H1 2015 H1 15 Q2 15 in EUR mn H1 14 H1 15 Q2 14 Q2 15 vs. H1 14 vs. Q2 14 Sales 5,990 6,732 +12.4% 3,014 3,387 +12.4% EBITDA 1,113 1,161 +4.3% 541 557 +3.0% EBITDA margin 18.6 17.2 -1.4%-pts. 17.9 16.4 -1.5%-pts. EBIT 801 818 +2.1% 383 384 +0.3% EB
Slide 14: Sales H1 2015 up 12.4%
3 Financial Results H1 2015 Sales H1 2015 up 12.4% Sales H1 2015 sales by region in EUR mn Y-o-y growth (w/o FX effects) +12.4%1) Asia/Pacific vs H1 2014 +12% (-1%) 3,345 3,387 3,100 Greater China 10% 2,976 3,014 3,034 +35% (+12%) 14% 54% Americas 22% Europe +26% (+12%) +3% (+2%) 5,990 6,134 6,732 Q
Slide 15: Automotive division again strongly outperforms market
3 Financial Results H1 2015 Automotive division again strongly outperforms market Sales development Automotive (w/o FX effects) Sales split Y-o-y growth (w/o FX effects) Automotive Aftermarket Europe Americas +13% (+10%) +17% 17% Chassis Systems 42% +3% +3% +9% (+3%) 15% Transmission Systems +15% (+
Slide 16: Industrial division with mixed development across sectors
3 Financial Results H1 2015 Industrial division with mixed development across sectors Sales development Industrial Key aspects H1 14 H1 15 D D excl. FX effects 4 Industrial OEM business with mixed development Industrial across sectors 994 1,063 6.9% -1.4% Applications 4 Mobility: FX-adjusted sales d
Slide 17: EBIT margin H1 2015 12.2%
3 Financial Results H1 2015 EBIT margin H1 2015 12.2% EBIT Key aspects in EUR mn H1 15 EBIT margin down by 1.2%-points mainly due to: +2.1% 4 Reduced gross profit margin in Industrial business vs H1 2014 (-0.5%-pts), mainly due to sales mix effects 4 Increase in R&D and selling expenses on group lev
Slide 18: Financial Result H1 2015 EUR -337 mn
3 Financial Results H1 2015 Financial Result H1 2015 EUR -337 mn Financial result1) Reconciliation Financial Result in EUR mn in EUR mn 337 -11 375 EUR -138 mn vs H1 2014 142 -184 H1 Non-cash One-off H1 2015 valuation effects 176 2015 excl. one-offs and effects loans / refinancing valuation effects
Slide 19: Net income H1 2015 EUR 309 mn
3 Financial Results H1 2015 Net income H1 2015 EUR 309 mn Net income1) Reconciliation of net income in EUR mn in EUR mn 53 309 3 138 210 17 229 220 215 167 142 H1 2014 Δ EBIT Δ Financial Δ Taxes Δ Minorities H1 2015 Result Key aspects 210 444 309 -10 4 Net income increased by EUR 99 mn vs H1 2014 Q1
Slide 20: Free cash flow EUR -72 mn
3 Financial Results H1 2015 Free cash flow EUR -72 mn Free cash flow H1 2015 Operating cash flow in EUR mn in EUR mn 490 439 1,161 238 184 134 233 -1632) Q1 Q2 Q3 Q4 Q1 Q2 501 2014 2015 -29 929 422 Free cash flow 166 in EUR mn 238 135 1731) 158 -19 -12 -60 2 -72 EBITDA Δ Capex Interest Tax Other Fre
Slide 21: Working Capital improved – Capex on track
3 Financial Results H1 2015 Working Capital improved – Capex on track Working capital Capex1) in EUR mn in EUR mn 357 3,022 2,944 2,900 2,696 2,778 2,548 244 257 202 155 143 298 559 501 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 2014 2015 2014 2015 In % of sales In % of sales 5.2 4.7 6.7 11.5 7.3 7.6 23.6
Slide 22: Leverage ratio as of June 30, 2015 2.8x
3 Financial Results H1 2015 Leverage ratio as of June 30, 2015 2.8x Net financial debt Change in net financial debt in EUR mn in EUR mn 36 6,245 216 202 223 5,778 -210 6,190 6,245 5,755 5,768 5,778 5,529 2.6 2.7 2.6 2.7 2.8 2.8 Q4 2014 FX effect Δ Cash Repayment Bond Other H1 2015 Position Term Loan
Slide 23: Guidance 2015 unchanged
3 Financial Results H1 2015 Guidance 2015 unchanged Growth Profitability Sales growth 5-7%1) EBIT margin 12-13% Capex 6-8% of sales Free cash flow Sustainably positive 1) At constant currency Quality Innovation Quality policy Further improve R&D expenses 5% of sales Maintain leading position Employe
Slide 24: IR contact
IR contact Investor Relations Financial calendar 2015 phone: + 49 9132 82 4440 Results 9M 2015 November 19, 2015 fax: + 49 9132 82 4444 Results FY 2015 March 15, 2016 Email: [email protected] Web: www.schaeffler.com/ir 24 Schaeffler Group | Capital Market Presentation | August 2015
Slide 25: Overview of current corporate and financing structure
Backup Overview of current corporate and financing structure Current structure Financing structure (as of June 2015) TopCo Debt instrument Nominal Interest Maturity Rating INA-Holding Schaeffler GmbH & Co. KG Loans: 100% HoldCo Term Loan (EUR) 500 E+4.50% Oct-19 Not rated Schaeffler Holding HoldCo R
Slide 26: Overview permitted upstream payments
Backup Overview permitted upstream payments Chart simplified for illustration Current structure purposes Financing structure (as of June 2015)1) INA Holding 4 Permitted Upstream Payments in OpCo loan and Schaeffler GmbH & Co. KG bond documents allow OpCo cash to be upstreamed HoldCo each year, provi