Schaeffler Ag · XETR:SHA0
Schaeffler — Investor Day (July 2016)
21 slides from Schaeffler's investor day presentation, Jul 20, 2016
Slide 1: Mobility for tomorrow
Schaeffler Group Mobility for tomorrow Klaus Rosenfeld Chief Executive Officer Capital Markets Day July 20th, 2016 London
Slide 2: Agenda
Agenda 1 Overview 2 Our Strategy 3 Our Action Plan 4 Our Financial Ambitions 5 Summary 2 July 20, 2016 Capital Markets Day London 2016 | © Schaeffler 2016
Slide 3: The Schaeffler Executive Team – Long-term industry experience
1 Overview The Schaeffler Executive Team – Long-term industry experience Executive Team Key aspects Klaus Rosenfeld Chief Executive Officer Integrated business model with two divisions, five functions Joined Schaeffler in 2009 and four regions CEO Functions Executive Board with 8 Board members p
Slide 4: Chronology 2009-2016 – Where we are coming from
1 Overview Chronology 2009-2016 – "Where we are coming from" Our way forward Key achievements Restructuring and transformation 2016 phase finalized Program "One Schaeffler" 2013-2015 finished Capital Markets Long-term Debut Profitable New "Corporate & Capital structure" growth implemented Mobilit
Slide 5: 10-year look-back – Sales and EBIT
1 Overview 10-year look-back – Sales and EBIT Development of Sales Development of EBIT 2006 - 20161) 2006 - 20161) in EUR mn in EUR mn CAGR 2006-2015 13,179 13,183 +5% 1,736 12,124 1,6763) 1,656 3) 1,561 11,125 11,205 1,509 10,694 1,469 1,436 3) 38 274 9,495 9,013 8,905 8,313 1,073 1,139 428 13% 9,8
Slide 6: 10-year look-back – Capex and Operating Cash flow
1 Overview 10-year look-back – Capex and Operating Cash flow Development of Capex Development of Operating Cash flow 2006 - 20161) 2006 - 20161) in EUR mn in EUR mn 1,099 1,372 1,394 1,025 1,271 3) 978 933 920 1,137 1,133 860 857 1,091 1,069 1,021 1,027 371 773 890 781 572 1,188 900 597 566 482 473
Slide 7: Good starting position – Further value creation potential
1 Overview Good starting position – Further value creation potential "Where we lead" "Where we lag" Best-in-class Automotive business with above average growth and Industrial business with below average growth and profitability profitability Financial flexibility still limited Proven innovation
Slide 8: Guidance 2016 confirmed – Midterm targets
1 Overview Guidance 2016 confirmed – Midterm targets Guidance 2016 Midterm targets Sales growth plus 3-5% Profitable Growth FX-adjusted EBIT margin 12-13% of Sales + before one-off effects Dividend Payout ratio 25-35% 1) Free Cash flow ~ 600 EUR mn + Market assumptions Sustainable Value creation A
Slide 9: The Schaeffler Equity Story – main pillars
1 Overview The Schaeffler Equity Story – 3 main pillars 3 main pillars Key objectives 1 Growth Outperformance Best-in-class business with superior growth and margin profile in Automotive Quality, Technology and Innovation drive outperformance Global light vehicle production continuously outper
Slide 10: Strategy "Mobility for tomorrow" – focus areas
2 Our Strategy Strategy "Mobility for tomorrow" – 4 focus areas Megatrends Focus areas Environmental Climate change trends ► Optimized combustion ► Micro-mobility Society Urbanization engine Eco-friendly Urban ► City vehicles trends ► Electric mobility drives mobility ► Urban rail traffic ► Industri
Slide 11: Product offering – From components to systems
2 Our Strategy Product offering – "From components to systems" Product spectrum Key aspects Automotive Industrial Components and mechanical system business remain core and key to success Value Added Components e.g. Finger follower e.g. Needle bearings Move into mechatronic systems driven (~65%)
Slide 12: Localization strategy – In the region for the region
2 Our Strategy Localization strategy – "In the region for the region" Localization ratio 2015 by region Produced outside the region Produced in the region Key aspects 7.0 EUR bn 1.9 EUR bn Europe in 2015 1) Greater China in 2015 1) ► High degree of localization in Europe ► Significant opportunities
Slide 13: Our key challenge – From good to great
2 Our Strategy Our key challenge – "From good to great" Competitive position vs. Business model 1) Key aspects Stable Schaeffler follows a proven business "Turn "From good model with a high degree of stability around" to great" Schaeffler enjoys in most of its business a Rapidly improve financial
Slide 14: Agenda 4 plus One – Flagship initiatives
3 Our Action Plan "Agenda 4 plus One" – 20 Flagship initiatives Agenda 4 plus One Initiatives Sponsor 1 Customer Excellence Prof. Pleus / Dr. Spindler 2 E-Mobility Prof. Gutzmer 3 Industry 4.0 Dr. Spindler Customer focus Long-term 4 Automotive Aftermarket Indlekofer competitive- 1 2 3 4 5 Quality fo
Slide 15: Automotive – What does E-Mobility mean for Schaeffler?
3 Our Action Plan 1 Automotive – "What does E-Mobility mean for Schaeffler?" For illustration purposes Market Development Business characteristics Existing New (system) Accelerated scenario business 1) business 2030 already in 2025 1 74 89 102 111 120 Content per vehicle ~ 100 EUR 2% 4% 13% 10% 24%
Slide 16: Industrial – Is 13% EBIT margin achievable?
3 Our Action Plan 2 Industrial – "Is 13% EBIT margin achievable?" EBIT margin Key aspects + 1-2%-pts. + 2-3%-pts. EBIT margin improvement plan assumes stable market conditions 1) 11-13% with moderate growth 13% - 2%-pts. 10-11% 3% 1-2% 3 main profitability drivers (EBIT margin) remain in place (20
Slide 17: Free Cash flow – How will Schaeffler further deleverage?
3 Our Action Plan 3 Free Cash flow – "How will Schaeffler further deleverage?" Net Debt and Leverage Target 1) Cash flow profile Schaeffler Group in EUR Cumulative 2) 2011-2015 2016-2020 4.9 bn Operating Cash flow 3) 8,300 10,000 I/C Loan Note 750 mn Mid-term - Net Interest paid -2,800 -500 1.8 targ
Slide 18: Digital Agenda 2020 – Shaping Mobility for tomorrow
3 Our Action Plan Digital Agenda 2020 – Shaping "Mobility for tomorrow" Digital World Key aspects Digitalization as an opportunity for Schaeffler Digital Agenda 2020 with 5 key building blocks Digital technology already in Digital Agenda 2020 products and production Big data analytics as well as
Slide 19: Key Strategic Targets – One integrated model
4 Our Financial Ambitions Key Strategic Targets – One integrated model Key objectives Key drivers Strategic Targets 2020 Profitable growth strategy based on the 20% Industrial key success factors "Quality, Technology Core business Balance and Innovation" and balanced business business portfolio por
Slide 20: Schaeffler Target System – Financial Ambitions 2020
4 Our Financial Ambitions Schaeffler Target System – Financial Ambitions 2020 Financial Target System Financial Ambitions 2020 1 Financial Targets Sales Growth 1) Ø 4 – 6 % p.a. SVA 1st Tier ROCE 2 Sales External EBIT margin 2) 12 – 13 % p.a. growth Guidance EBIT Free 3 margin Cash flow Free Cash fl
Slide 21: Key messages – Why invest into Schaeffler
5 Summary 8 Key messages – "Why invest into Schaeffler" 1 Strong starting position, Guidance 2016 confirmed 2 Proven integrated business model with strong track record and balanced business portfolio 3 Continued execution of long-term growth strategy "Mobility for tomorrow" 4 Excellence Program "Age