Schaeffler Ag · XETR:SHA0
Schaeffler — H1 2013 Earnings Presentation
33 slides from Schaeffler's earnings presentation, Aug 28, 2013
Slide 1: Results H1 2013 Schaeffler Group
Results H1 2013 Schaeffler Group Klaus Rosenfeld, CFO Herzogenaurach August 28, 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 Overview Results H1 2013 Financing and Capital Structure Outlook Page 3 Schaeffler Results H1 2013 August 28, 2013
Slide 4: Strong Automotive business drives H1 2013 results
1 Overview Strong Automotive business drives H1 2013 results H1 2013 Group Sales with 5.6 billion Euro on prior year level Automotive sales growth with 6.2% significantly above market Industrial sales -13.5% due to challenging market conditions Schaeffler eWheel Drive Concept Car Superior earnings q
Slide 5: Agenda
Agenda Overview Results H1 2013 Financing and Capital Structure Outlook Page 5 Schaeffler Results H1 2013 August 28, 2013
Slide 6: Second quarter with positive sales and cash flow trends
2 Results H1 2013 Second quarter with positive sales and cash flow trends H1 2013 H1 2012 Q2 2013 Q2 2012 in EUR mn in EUR mn in EUR mn / % in EUR mn in EUR mn in EUR mn / % Sales 5,614 5,652 -0.7% 2,858 2,794 +2.3% EBITDA 1,042 1,079 -3.4% 530 530 0.0% EBITDA margin 18.6 19.1 -0.5%pts. 18.5 19.0 -0
Slide 7: Group sales slightly down by 0.7%
2 Results H1 2013 Group sales slightly down by 0.7% Sales H1 2013 sales by region1) in EUR mn in EUR mn and y-o-y growth -0.7% Asia/Pacific vs. H1 2012 1,253 / -0.1% 2,858 22% 2,858 2,794 2,697 2,682 2,703 2,770 2,703 2,756 2,612 South America 5% Europe 273 / -2.2% 57% 3,181 / -1.9% 16% North Americ
Slide 8: Strong growth in Automotive – Industrial sales stabilizing
2 Results H1 2013 Strong growth in Automotive – Industrial sales stabilizing Sales Automotive Sales Industrial in EUR mn in EUR mn +6.2% vs. H1 2012 1,988 2,088 1,933 1,904 1,918 1,903 1,821 1,768 1,814 1,754 -13.5% vs. H1 2012 908 877 876 854 870 839 856 788 768 770 7,157 7,658 4,076 3,463 3,405 1,
Slide 9: Automotive – Sales growth strongly outpacing market growth
2 Results H1 2013 Automotive – Sales growth strongly outpacing market growth Regional development Automotive1) Key aspects Asia/Pacific Europe Schaeffler Automotive significantly outgrew global +13% automotive production in H1 2013 4% Positive development in all regions except for South America +3%
Slide 10: Industrial – Challenging market conditions remain
2 Results H1 2013 Industrial – Challenging market conditions remain Sales of key industrial business units Key aspects Sales decreased in all sectors apart from Other ~15% Production Machinery Heavy Industries and Aerospace Power Transmission Aftermarket: Inventory reductions of dealers led Renewabl
Slide 11: EBIT margin stable at 12.9%
2 Results H1 2013 EBIT margin stable at 12.9% EBIT EBIT in EUR mn in EUR mn 780 +37 724 -38 +15 -56 mn +4 vs. H1 2012 -68 -6 472 466 411 401 379 364 355 369 340 269 EBIT Sales COGS R&D Selling Admin Other EBIT H1 2012 H1 2013 EBIT margin 13.8% -0.9%pts. 12.9% 1,689 1,413 724 Sales -0.6%pts. +6.2% Au
Slide 12: Automotive EBIT strong – Industrial EBIT weak
2 Results H1 2013 Automotive EBIT strong – Industrial EBIT weak EBIT Automotive EBIT Industrial in Mio. EUR in Mio. EUR +76 mn vs. H1 2012 301 302 294 277 262 259 260 244 234 -132 mn 217 171 172 vs. H1 2012 157 149 123 120 104 78 67 35 1,074 997 579 615 416 145 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3
Slide 13: Net income EUR 561 million
2 Results H1 2013 Net income EUR 561 million Net income H1 2013¹) Net income¹) in EUR mn in EUR mn 5,614 438 363 724 328 -4,890 269 561 235 233 225 -216 203 -310 146 140 102 1 2 889 869 561 Sales Costs EBIT Financial Investment Taxes/ Net result result minorities income Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 14: Financial result minus EUR 310 million
2 Results H1 2013 1 Financial result minus EUR 310 million Financial result¹) Composition of financial result¹) in EUR mn in EUR mn 40 310 Interest expenses financial debt 287 27 269 31 231 214 211 218 74 174 177 167 143 118 132 23 733 680 310 1 63 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Non-Cash Cash 2012 Fi
Slide 15: At equity result EUR 363 million
2 Results H1 2013 2 At equity result EUR 363 million Net income Continental¹) At equity result from Continental in EUR mn in EUR mn 2012 2013 Q1 Q2 Q3 Q4 FY Q1 Q2 H1 701 Net Income 483 520 449 432 1,884 441 701 1,142 Continental 520 Conti shares 483 449 174 189 162 156 681 160 253 413 432 441 (30/06
Slide 16: Free cash flow EUR 386 million
2 Results H1 2013 Free cash flow EUR 386 million EBITDA Free cash flow H1 2013 in EUR mn in EUR mn 334 259 137 92 52 162 80 -107 613 1,042 Q1 Q2 Q3 Q4 Q1 Q2 605 2012 2013 552 549 530 520 530 512 162 473 -157 432 -229 -287 386 -145 2,243 2,031 1,042 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net EBITDA working Ca
Slide 17: Working capital efficiency improved – Capex adjusted to market needs
2 Results H1 2013 Working capital efficiency improved – Capex adjusted to market needs Working Capital Capex spent2) in EUR mn in EUR mn 2,723 2,677 2,667 2,642 2,616 2,613 259 2,547 2,562 250 2,411 2,432 222 200 206 188 188 120 121 108 773 860 229 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 18: Net financial debt reduced by EUR 619 million
2 Results H1 2013 Net financial debt reduced by EUR 619 million Net financial debt / Leverage ratio¹) Available funds in EUR mn in EUR mn -619 mn vs. H1 2012 7,145 7,088 7,164 7,094 6,940 6,828 6,834 6,475 6,124 6,069 1,503 1,376 1,401 1,243 1,244 1,093 1,140 1,141 1,165 1,049 3.2x 3.2x 3.2x 3.2x 3.
Slide 19: Agenda
Agenda Overview Results H1 2013 Financing and Capital Structure Outlook Page 19 Schaeffler Results H1 2013 August 28, 2013
Slide 20: Overview corporate and capital structure
3 Financing and capital structure Overview corporate and capital structure Chart simplified Corporate structure for illustration Capital structure purposes August Debt instrument Interest Maturity Rating Schaeffler Holding 28, 2013 Schaeffler Holding 6.875% SSNs 2018 (EUR)1) 800 6.875% Aug 18 B2 / B
Slide 21: Strong ability to pay cash interest at Holding level
3 Financing and capital structure Strong ability to pay cash interest at Holding level Chart simplified New structure for illustration Key aspects purposes Schaeffler Holding Solid cash flow generation on Schaeffler Group Schaeffler Holding level to make upstream payments to Schaeffler GmbH & Co. KG
Slide 22: Agenda
Agenda Overview Results H1 2013 Financing and Capital Structure Outlook Page 22 Schaeffler Results H1 2013 August 28, 2013
Slide 23: Sales guidance reduced – Profitability targets unchanged
4 Outlook Sales guidance reduced – Profitability targets unchanged Growth Profitability Target 2013 Target 2013 New guidance: ~ 1-2 % Sales growth ~4% EBIT margin ~13 % Capex 5-7 % of sales Free cash flow Sustainably positive Quality Innovation Target 2013 Target 2013 Quality policy Further improve
Slide 24: Schaeffler IR contact
Schaeffler IR contact Investor Relations Financial Calendar 2013 phone: + 49 9132 82 4440 Q2 2013 results: August 28, 2013 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 25: Consolidated income statement
Backup Consolidated income statement 1 st six months 2 nd quarter in € m illions 2013 2012 Change in % 2013 2012 Change in % Revenue 5,614 5,652 -0.7 2,858 2,794 2.3 Cost of sales -4,001 -3,933 1.7 -2,036 -1,960 3.9 Gross profit 1,613 1,719 -6.2 822 834 -1.4 Research and development expenses -300 -2
Slide 26: Consolidated statement of financial position – Assets
Backup Consolidated statement of financial position – Assets in € millions 06/30/2013 12/31/2012 06/30/2012 Change in % 1) ASSETS Intangible assets 546 554 556 -1.4 Property, plant and equipment 3,385 3,515 3,510 -3.7 Investments in equity-accounted investees 5,367 5,040 5,067 6.5 Other investments
Slide 27: Consolidated statement of financial position – Liabilities
Backup Consolidated statement of financial position – Liabilities in € millions 06/30/2013 12/31/2012 06/30/2012 Change in % 1) SHAREHOLDERS' EQUITY AND LIABILITIES Share capital 500 500 500 0.0 Reserves 2) 2,338 2,027 1,530 15.3 Accumulated other comprehensive income (loss) 2) -571 -479 -222 19.2 E
Slide 28: Consolidated statement of cash flows – Operating cash flow
Backup Consolidated statement of cash flows – Operating cash flow 1st six months 2nd quarter in € millions 2013 2012 Change in % 2013 2012 Change in % Operating activities EBIT 724 780 -7.2 369 379 -2.6 Interest paid -290 -259 12.0 -100 -93 7.5 Interest received 3 4 -25.0 1 2 -50.0 Income taxes paid
Slide 29: Consolidated statement of cash flows – Investing and financing cash flow
Backup Consolidated statement of cash flows – Investing and financing cash flow 1st six months 2nd quarter in € millions 2013 2012 Change in % 2013 2012 Change in % Investing activities Proceeds from disposals of intangible assets and 4 8 -50.0 2 1 100 property, plant and equipment Capital expenditu
Slide 30: Consolidated segment information
Backup Consolidated segment information Automotive Industrial Other Total st st st st 1 six months 1 six months 1 six months 1 six months in € millions 2013 2012 2013 2012 2013 2012 2013 2012 Revenue 4,076 3,837 1,538 1,778 0 37 1) 5,614 5,652 Cost of sales -2,963 -2,781 -1,038 -1,115 0 -37 2) -4,00
Slide 31: Summary Q1 2012 – Q2 2013
Backup Summary Q1 2012 – Q2 2013 2012 2013 in € millions Q1 Q2 Q3 Q4 Q1 Q2 Income statement Revenue 2,858 2,794 2,770 2,703 2,756 2,858 EBITDA 549 530 520 432 512 530 - in % of revenue 19.2 19.0 18.8 16.0 18.6 18.5 EBIT 401 379 364 269 355 369 - in % of revenue 14.0 13.6 13.1 10.0 12.9 12.9 Net inco
Slide 32: Overview Senior Financing
Backup Overview Senior Financing Maturity profile1) Key aspects in EUR mn Balanced financing mix of bank loans, institutional loans and bonds (approx. 50% loans and 50% high yield bonds) Strong banking syndicate with ten international 7.0 Senior Term Loan D renowned banks TL A E+3.25% 6.0 ~€1.2 bn –
Slide 33: 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