Schaeffler Ag · XETR:SHA0
Schaeffler — Investor Presentation (December 2013)
26 slides from Schaeffler's investor presentation, December 2013
Slide 1: Schaeffler Capital Market Presentation December 2013
Schaeffler Capital Market Presentation December 2013
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 Business Results 9M 2013 Corporate and capital structure Outlook Page 3 Schaeffler Group ● Capital Market Presentation ● December 2013
Slide 4: Schaeffler at a glance
1 Business Schaeffler at a glance Key characteristics Key financials (in EUR mn) 2008 2009 2010 2011 2012 4 Leading manufacturer of high-precision components and systems for automotive and industrial Sales 8,905 7,336 9,495 10,694 11,125 applications growth in % -1.2% -17.6% 29.4% 12.6% 4.0% 4 Globa
Slide 5: Worldwide leader in bearings and automotive components
1 Business Worldwide leader in bearings and automotive components Top three positions in core market sectors Leading positions 1 in attractive Strong and resilient aftermarket business growth markets Growing above market Highly diversified customer base Well-balanced 2 Broad product and ap
Slide 6: Two divisions with top three positions in core market sectors
1 Business Two divisions with top three positions in core market sectors¹) Automotive 69% of sales Industrial 31% of sales Power Off-Highway Production Transmission Equipment Machinery Transmission Engine Aerospace Motorcycles Railway Heavy Industries Fluid & Consumer Renewable Industrial Chassis Af
Slide 7: Automotive: Broad mix of components and systems
1 Business Automotive: Broad mix of components and systems Page 7 Schaeffler Group ● Capital Market Presentation ● December 2013
Slide 8: Automotive: Highly diversified customer base
1 Business Automotive: Highly diversified customer base OEM customers Sales with TOP 10 customers Other customers ~45% TOP 10 customers ~55% of Automotive sales Tier 1 and 2 customers Page 8 Schaeffler Group ● Capital Market Presentation ● December 2013
Slide 9: Industrial: Broad product and customer base
1 Business Industrial: Broad product and customer base Customers Sales with TOP 10 customers Other customers 85% TOP 10 customers 15% of Industrial sales Product spectrum smallest largest bearing: bearing: 1 millimeter 4 meters Page 9 Schaeffler Group ● Capital Market Presentation ● December 2013
Slide 10: Ongoing regional diversification – In the region – for the region
1 Business Ongoing regional diversification – “In the region – for the region” Global footprint with five dedicated regions Planned greenfield sites and plant extentions for 2012-2014 1 Irapuato, Mexico 4 2 Kysuce, Slovakia 2 3 5 3 Skalica, Slovakia 6 14 13 15 16 17 4 Szombathely, Hungary 12 5 Braso
Slide 11: Technology/quality leadership based on outstanding operational excellence
1 Business Technology/quality leadership based on outstanding operational excellence Special know-how in … Highlights 32 Awards … basic materials (steel) … inhouse tools design for best supplier in 2012 a.o. from Nissan, Toyota, GM, Gildemeister, Goldwind … low cost precision … surface treatment man
Slide 12: Best-in-class innovation platform
1 Business Best-in-class innovation platform Number of patent registrations1) Highlights 1,854 1,832 1,641 R&D expenses 1,146 667 826 5% of sales New patent applications 2007 2008 2009 2010 2011 2012 #7 #5 #5 #4 #4 #4 1,854 Rank in Germany2) 1) Source: German Patent and Trademark Office 2) Measured
Slide 13: A strong history of above average growth and sector leading margins
1 Business A strong history of above average growth and sector leading margins Sales 2003 – 20121) EBIT and EBITDA 2003 – 20121) in EUR bn in EUR bn 11.1 EBIT ~8% ~6% 10.7 2.2 CAGR 2003-2012 CAGR 2003-2012 2.1 2.0 9.5 1.7 1.7 1.7 9.0 8.9 1.5 1.7 8.3 1.4 1.5 7.9 1.3 1.4 1.1 7.3 1.1 1.1 7.3 6.8 1.0 1.
Slide 14: Proactive cash flow management over the cycle
1 Business Proactive cash flow management over the cycle Capital expenditures 2003 – 20121) Cash Flow available for debt service 2003 – 20122) in EUR mn (before investments in Continental AG shares in 2008/2009 and interest payments, in EUR mn) 1,210 931 949 919 1,064 846 827 1,005 974 764 599 604 6
Slide 15: Agenda
Agenda Business Results 9M 2013 Corporate and capital structure Outlook Page 15 Schaeffler Group ● Capital Market Presentation ● December 2013
Slide 16: 9M group sales on prior year level, Q3 sales up
2 Results 9M 2013 9M group sales on prior year level, Q3 sales up Sales 9M 2013 sales by region1) in EUR mn in EUR mn and y-o-y growth 1.5%1) Asia/Pacific vs. Q3 2012 1,914 / +1.1% 2,858 2,794 2,858 2,811 23% 2,697 2,682 2,703 2,770 2,703 2,756 2,612 South America 406 / -5.4% 5% Europe 56% 4,733 / -
Slide 17: EBIT margin 12.9% before one-off restructuring provisions
2 Results 9M 2013 EBIT margin 12.9% before one-off restructuring provisions EBIT ∆ EBIT Restructuring expenses: in EUR mn in EUR mn Pro Forma EBIT - Wuppertal plant: EUR 33 mn w/o one-off effect 1,144 +3 - Schweinfurt plant: EUR 15 mn +48 1,086 +71 1,038 -106 mn +9 +11 vs. 9M 2012 -144 -48 -8 472 46
Slide 18: Net income EUR 1,020 million
2 Results 9M 2013 Net income EUR 1,020 million Net income 9M 2013¹) Net income¹) in EUR mn in EUR mn 8,425 438 459 328 682 269 1,038 1,020 235 233 225 203 -7,387 -316 146 140 -384 102 1 2 889 869 1,020 Sales Costs EBIT Net Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Financial Investment Taxes/ result result mi
Slide 19: Solid free cash flow generation of EUR 589 mn
2 Results 9M 2013 Solid free cash flow generation of EUR 589 mn – FCF Q3 at EUR 203 mn EBITDA Free cash flow 9M 2013 in EUR mn in EUR mn 334 259 203 137 92 52 163 80 -107 613 1,514 Q1 Q2 Q3 Q4 Q1 Q2 Q3 605 2012 2013 552 549 530 520 512 530 473 472 -238 163 432 -343 589 -439 -68 2,243 2,031 1,514 Q1
Slide 20: Net financial debt significantly reduced after ABO transaction
2 Results 9M 2013 Net financial debt significantly reduced after ABO transaction Net financial debt / Leverage ratio¹) Available funds in EUR mn in EUR mn -1.1 bn vs. 12/12 7,145 7,088 7,164 7,094 6,940 6,828 6,834 6,475 6,124 6,069 5,729 1,503 1,376 1,401 1,244 1,317 1,243 1,093 1,140 1,141 1,165 1
Slide 21: Agenda
Agenda Business Results 9M 2013 Corporate and capital structure Outlook Page 21 Schaeffler Group ● Capital Market Presentation ● December 2013
Slide 22: Overview corporate and capital structure
3 Corporate and capital structure Overview corporate and capital structure Chart simplified Corporate structure for illustration Capital structure purposes Nominal in Debt instrument Interest Maturity Rating EUR mn Schaeffler Holding Schaeffler Holding 6.875% SSNs 2018 (EUR)1) 800 6.875% Aug 18 B1 /
Slide 23: Agenda
Agenda Business Results 9M 2013 Corporate and capital structure Outlook Page 23 Schaeffler Group ● Capital Market Presentation ● December 2013
Slide 24: Outlook: Challenging market conditions will remain
4 Outlook Challenging market conditions will remain Growth Profitability Target 2013 Target 2013 Sales growth ~ 1-2 %1) EBIT margin ~13 %2) Sustainably positive Capex ~ 5 % of sales Free cash flow (three digit million range) Quality Innovation Target 2013 Target 2013 Quality policy Further improve R
Slide 25: Schaeffler IR contact
Schaeffler IR contact Investor Relations Financial Calendar 2013 phone: + 49 9132 82 4440 fax: + 49 9132 82 4444 Q3 2013 results: November 19, 2013 [email protected] Q4 2013 results: March 20, 2014 www.schaeffler-group.com/ir
Slide 26: Useful links and references
Backup Useful links and references Schaeffler Investor Relations website http://www.schaeffler-group.com/content.schaefflergroup.de/en/investorrelations/IR.jsp Annual and http://www.schaeffler- interim reports group.com/content.schaefflergroup.de/en/investorrelations/newsir/reports/report_2013.jsp I