Schaeffler Ag · XETR:SHA0
Schaeffler — Investor Presentation (September 2013)
28 slides from Schaeffler's investor presentation, September 2013
Slide 1: Schaeffler Capital Market Presentation September 2013
Schaeffler Capital Market Presentation September 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 H1 2013 Capital structure Outlook Page 3 Schaeffler Group Capital Market Presentation September 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 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% Global fo
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 application
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 September 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 September 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 September 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 H1 2013 Capital structure Outlook Page 15 Schaeffler Group Capital Market Presentation September 2013
Slide 16: 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 17: 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 18: 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 19: 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 20: 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 21: Agenda
Agenda Business Results H1 2013 Capital structure Outlook Page 21 Schaeffler Group Capital Market Presentation September 2013
Slide 22: Overview corporate and financing structure
3 Capital structure Overview corporate and financing structure Chart simplified Corporate structure for illustration Capital structure purposes TopCo Capital structure successfully enhanced in 7 steps: Schaeffler Holding 1 Jan 2012 EUR 8 bn Senior refinancing, 100% initial issuance of EUR 2.0 bn bon
Slide 23: Overview Senior Financing
3 Capital structure 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
Slide 24: Agenda
Agenda Business Results H1 2013 Capital structure Outlook Page 24 Schaeffler Group Capital Market Presentation September 2013
Slide 25: Guidance 2013
4 Outlook Guidance 2013 Growth Profitability Target 2013 Target 2013 Sales growth ~ 1-2 % EBIT margin ~13 % Capex 5-7 % of sales Free cash flow Sustainably positive Quality Innovation Target 2013 Target 2013 Quality policy Further improve R&D expenses ~ 5 % of sales Maintain leading Employees ~ 2,00
Slide 26: 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 27: Backup: Capital structure
Backup Capital structure Debt instrument August 28, 2013 Interest Maturity Rating 6.875% SSNs 2018 (EUR)1) 800 6.875% Aug 18 B2 / B- Schaeffler Holding 6.875% SSNs 2018 (USD)1) 3) ~769 6.875% Aug 18 B2 / B- Junior Term Loan B1 1,200 E+5.75% Jun-17 Not rated Junior Term Loan B2 450 8.50% PIK Jun-17 N
Slide 28: 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