Autoneum Holding AG · SIX:AUTN
Autoneum — Investor Presentation (July 2017)
36 slides from Autoneum's investor presentation, July 2017
Slide 1: IR Presentation
IR Presentation Dr Martin Zwyssig, CFO, July 2017
Slide 2: Agenda
Agenda 1. Autoneum at a glance 2. Financial results Half-Year 2017 3. Outlook
Slide 3: Who we are: Autoneum in a nutshell
Who we are Autoneum in a nutshell IR Presentation July 2017 3
Slide 4: Key Facts & Figures: Autoneum at a glance
Key Facts & Figures Autoneum at a glance Stock listed company Around 50 locations (SIX Swiss Exchange) worldwide Net Sales 2016: Represented in more 2’152.6 million CHF than 20 countries EBIT margin 2016: 8.2%* Over 11’000 employees *Before special effects. IR Presentation July 2017 4
Slide 5: Leading in acoustic and thermal management: Four product lines
Leading in acoustic and thermal management Four product lines • Broad range of technologies Interior floor • Innovative materials and processes Engine bay • Customized systems and components • Cost effective and lightweight solutions Body treatment • Total vehicle optimization Underbody • Simulation
Slide 6: Organization: Group Executive Board
Organization Group Executive Board Martin Hirzel CEO 19 years of automotive experience Martin Zwyssig Matthias Holzammer John T. Lenga Andreas Kolf Fausto Bigi CFO Head BG Europe Head BG North America Head BG Asia Head BG SAMEA 13 years of automotive 26 years of automotive 21 years of automotive 22
Slide 7: Global Presence
Business Group Europe Global Presence Belgium ⋅ Genk France ⋅ Aubergenville ⋅ Blainville Great Britain ⋅ Halesowen Spain ⋅ A Rúa ⋅ Heckmondwike ⋅ Valldoreix Czech Republic ⋅ Lachapelle- ⋅ Stoke-on-Trent Autoneum ⋅ Bor aux-Pots Sweden Locations with minority shareholders ⋅ Choceň ⋅ Moissac Italy ⋅ Go
Slide 8: Strategic Priorities: Pillars of sustained success
Strategic Priorities Pillars of sustained success Focus on acoustic & thermal management Pursue solutions in Grow profitably consolidation automotive and generate free opportunities cash flow High Performance Culture Focus on Practice long-term operational partnerships with excellence Leverage globa
Slide 9: Focus on acoustic and thermal management
Focus on acoustic and thermal management Driving the future of mobility • Investments in advancement of technological expertise: - New Technical Center at BG North America HQ in Novi (MI), USA for component adaptation and pre-development with OEMs - Set-up of “Competence Center New Mobility” in Visu
Slide 10: Grow profitably: Diversified customer base
Grow profitably Diversified customer base Share in net sales 2016 BG BG SAMEA Asia 4% 10% BG Europe and Corporate BG North America 39% 47% • Supply of virtually all OEMs • BG North America is largest sales worldwide contributor • Higher sales with Honda, Renault, • Net sales share of BG Asia GM, Vol
Slide 11: Focus on global customers: Investments in growth markets
Focus on global customers Investments in growth markets • Foundation of two plants in San Luis Potosí, Mexico to supply US, Japanese and German OEMs • Capacity expansion with doubling of production space at US plant in Aiken (SC) • Enlargement of Chinese production footprint through new facility in
Slide 12: Leverage technological leadership
Leverage technological leadership Innovations for the car of the future • Launch of aerodynamic Ultra-Silent underbody systems for SUVs − Noise-absorbing, aerodynamic, recyclable − Reduction of SUV weight, fuel consumption and emissions • Commissioning of new production line for Ultra- Silent semi-f
Slide 13: Practice operational excellence: Focus on standardization
Practice operational excellence Focus on standardization • Development and implementation of carpet conversion system for various processes • New trainings on work safety aim at: − Enhancing leadership expertise in acting as role model with regard to work safety − Focusing on core types of safe beha
Slide 14: Five years Autoneum: Living a High Performance Culture
Five years Autoneum Living a High Performance Culture 2011 2012 2013 2014 2015 2016 • Start as • Market launch of • Market entry into • New presence in • Footprint • Additional plants independent, Hybrid-Acoustics Mexico, Thailand South Korea expansion by two in growth market stock-listed and Russia
Slide 15: Five years Autoneum: A proven track record of delivery
Five years Autoneum A proven track record of delivery Strategic priorities Achievements Focus on acoustic & thermal manage- • Exit from trunk and trim segment ment solutions in automotive • Three Automotive Acoustic Conferences held • Net sales increase of CHF 470 million, Grow profitably and genera
Slide 16: Agenda
Agenda 1. Autoneum at a glance 2. Financial results Half-Year 2017 3. Outlook
Slide 17: Highlights Half-Year 2017
Highlights Half-Year 2017 Financials Investments Strategy • Sales increase of 4.0% in local • Investments in R&T and • Market share gains in Asia currencies in line with guidance production facilities in Germany and Switzerland • Underbody offering in North • Business Groups (BG) Europe, America com
Slide 18: Key figures Overview
Key figures Overview CHF million HY 2017 HY 2016 Net sales 1’117.9 1'091.3 EBITDA before special effects* 129.3 123.8 in % of net sales 11.6% 11.3% EBIT before special effects* 93.1 89.9 in % of net sales 8.3% 8.2% Net profit before special effects* 61.2 60.6 Free cash flow −36.0 60.4 RONA before sp
Slide 19: Net sales development
Net sales development Sustainable sales growth in line with guidance CHF million 0.7 14.1 −3.5 −13.8 14.0 22.6 −7.4 1'117.9 1'091.3 Organic growth +4.0% Net sales BG Europe BG North BG Asia BG SAMEA Corporate and Disposal Currency Net sales HY 2016 America elimination UGN business translation HY 201
Slide 20: Operating result (EBIT): EBIT increase continued
Operating result (EBIT) EBIT increase continued CHF million • EBIT margin raised to 8.3% Margin 8.3% • EBIT before special effects Margin 8.2%* increased by 3.6% and hit a Margin 89.9* 93.1 new high at CHF 93.1 million 7.7%* Margin 6.8% 77.6* • Further increase of profitability Margin 5.2% 66.8 due
Slide 21: Operating result (EBIT): EBIT margin at 8.3%
Operating result (EBIT) EBIT margin at 8.3% CHF million • EBIT margin improved by Margin 0.1 percentage points to 8.3% 8.3% EBIT HY 2016 EBIT HY 2017 93.1 89.9* • High production volumes and capacity utilization in Europe Margin Margin 7.1% • Stagnating production 8.4% 46.2* volumes in North America
Slide 22: Income statement
Income statement Net profit before special effects at new high • Net profit before special CHF million HY 2017 HY 2016 effects at new high Net sales 1‘117.9 1'091.3 • In 2016, net profit included the effect from disposal of EBIT 93.1 123.1 the UGN business in Financial result −3.1 −6.3 Chicago Heigh
Slide 23: Balance sheet: Solid balance sheet
Balance sheet Solid balance sheet • Solid balance sheet CHF million 30.06.2017 31.12.2016 30.06.2016 without goodwill Total assets 1’333.8 1'297.8 1’220.2 • Increase of non-current Non-current assets 680.8 648.0 587.2 assets due to continuing capacity Net working capital 101.6 56.5 84.8 expansion Ca
Slide 24: Cash flow: Continuing capacity expansion
Cash flow Continuing capacity expansion • Operating cash flow CHF million HY 2017 HY 2016 decreased due to higher Cash flows from operating activities 47.3 74.7 NWC, free of short-term financial dispositions Cash flows used in investing activities −83.3 −14.3 • 2016 investing cash flow Free cash flo
Slide 25: RONA on a sustainable high level
RONA RONA on a sustainable high level 22 20.5%* • RONA at 18.6% 20 18.5% 18.6% 18 17.8%* • RONA more than twice 16.6% the WACC of 8.2% 16 • RONA slightly lower than 14 2016 due to increased 12 average equity 10 • Substantial economic 8 8.2% WACC value created 6 4 2 0 HY 2013 HY 2014 HY 2015 HY 2016
Slide 26: Agenda
Agenda 1. Autoneum at a glance 2. Financial results Half-Year 2017 3. Outlook
Slide 27: Growing demand for Autoneum's products
Growing demand for Autoneum’s products Global trends drive acoustic & thermal management Growing automobile Increasing production globalization (mainly Asia) 80-90% of LVs will be made Global CAGR (2017-2020) of on global platforms 2.4% to exceed 100 million LVs* mark by 2020 Demand for lightweight
Slide 28: Electric mobility: Our main actions
Electric mobility Our main actions On the road Main actions to consolidate Autoneum’s technology leadership Autoneum’s standard products for Competences interior, underbody and engine bay • Competence Center New Mobility in the heart of Silicon are already adopted by the OEMs Valley to understand th
Slide 29: Electric mobility: Options for Autoneum
Electric mobility Options for Autoneum Lightweight in focus: offset battery Road noise: becomes dominant Encapsulation: lightweight weight for range and cost of weight due to less engine masking and encapsulation to efficiently address dependent components. Lower requires effective lightweight distu
Slide 30: Self-driving cars and shared mobility: Options for Autoneum
Self-driving cars and shared mobility Options for Autoneum Self-driving cars Wellness, work, Sustainability: of products Interior architectures: the New materials and communication and and production processes instrument panel will shrink function integration: entertainment: passengers will be a key
Slide 31: Key focus areas for profitable growth: Action plan 2017
Key focus areas for profitable growth Action plan 2017 BG Europe BG Asia • Gain market share • Enhance production • Expand Eastern network in China European footprint • Install latest • Pursue vertical technologies integration strategy • Develop people to achieve growth targets BG North America BG S
Slide 32: Guidance Full Year 2017
Guidance Full Year 2017 Global environment • Rise in global automobile production to around 95 million light vehicles expected (growth rate of 2%)* Sales • Based on the anticipated further softening of demand in North America, 2017 net sales growth is expected to be above the market, but below the a
Slide 33: Targets 2020: Accelerate profitable growth
Targets 2020 Accelerate profitable growth • Net sales of CHF 2’600 million • Emerging markets >20% share in Group’s net sales • EBITDA margin of 12% • Equity ratio >40% • RONA >20% • Target dividend payout of at least 30% of net profit attributable to shareholders of Autoneum Holding Ltd IR Presenta
Slide 34: Contacts and event calendar
Contacts and event calendar Investors and Financial Media Contact Address Analysts Dr Martin Zwyssig Dr Anahid Rickmann Autoneum Holding Ltd CFO Head Corporate Communications & Schlosstalstrasse 43 / P.O. Box T +41 52 244 82 82 Responsibility CH-8406 Winterthur [email protected] T +41 52 244 83
Slide 35: Disclaimer
Disclaimer Autoneum is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoeve
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