Autoneum Holding AG · SIX:AUTN
Autoneum — Investor Presentation (March 2018)
60 slides from Autoneum's investor presentation, March 2018
Slide 1: IR Presentation
IR Presentation Dr Martin Zwyssig, CFO, March 2018
Slide 2: Agenda
Agenda 1. Autoneum at a glance 2. Business year and financial results 2017 3. Outlook 2018 and financial targets 2020 4. New mobility trends Appendix
Slide 3: Who we are: Autoneum in a nutshell
Who we are Autoneum in a nutshell IR Presentation March 2018 3
Slide 4: Key facts & figures
Who we are Key facts & figures Stock listed company 55 production facilities (SIX Swiss Exchange) worldwide Revenue 2017: Represented in 25 CHF 2,203.0 million countries EBIT margin 2017: 8.1% Over 12,000 employees IR Presentation March 2018 4
Slide 5: Strategic priorities
Strategic priorities Clear profile as automotive supplier 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 Levera
Slide 6: Autoneum 2025 Strategic focus areas
Autoneum 2025 Strategic focus areas Innovate for Accelerate Asia E-Mobility Drive The Green Digitalization Company IR Presentation March 2018 6
Slide 7: Group Executive Board
Organization Group Executive Board Martin Hirzel CEO 20 years of automotive experience Dr 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 14 years of automotive 27 years of automotive 22 years of automotive
Slide 8: Leading in acoustic and thermal management
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 • Total vehicle optimization Body Treatment • Measurement systems
Slide 9: Global presence
Europe Global presence Belgium ⋅ Genk France ⋅ Aubergenville ⋅ Blainville Hungary ⋅ Komárom Spain ⋅ A Rúa ⋅ Valldoreix Czech Republic ⋅ Lachapelle-aux-Pots Italy Autoneum ⋅ Bor ⋅ Moissac ⋅ Santhià Sweden Locations with minority shareholders ⋅ Choceň ⋅ Ons-en-Bray ⋅ Gothenburg ⋅ Hnátnice Poland Assoc
Slide 10: Profitable growth in all regions
Profitable growth in all regions Well-diversified global customer base Share in revenue 2017 IR Presentation March 2018 10
Slide 11: Corporate Responsibility Key commitments
Corporate Responsibility Key commitments Corporate Responsibility is at the heart of our business and defines everything we do Commitment to become the Corporate Responsibility benchmark among our industry peers Commitment to transparency and accountability by reporting according to the leadin
Slide 12: Agenda
Agenda 1. Autoneum at a glance 2. Business year and financial results 2017 3. Outlook 2018 and financial targets 2020 4. New mobility trends Appendix
Slide 13: Highlights 2017
Highlights 2017 Financials Investments Strategy • Organic revenue growth of • New production facility in • Operational excellence 2.4% in line with market Komárom, Hungary thanks to further developed production processes at • EBIT margin at 8.1% again • Set-up of four plants in China BG Europe excee
Slide 14: Light vehicle production 2017
Light vehicle (LV) production 2017 Notable market decline in USA and Canada By country By OEM group 30 50 Brazil Geely Iran Russia 15 15 Mexico Turkey Suzuki 10 10 France Daimler India Tata BMW Renault/Nissan 2016 (%) 2017 vs. 5 Japan 5 Honda Czech Republic Volkswagen Indonesia China Dongfeng Italy
Slide 15: Business year 2017 Highlights Q1
Business year 2017 Highlights Q1 Opening of «Competence Center New Mobility» • New mobility hub in Silicon Valley (CA), USA • Establishment of relationships and business with new OEMs • Development of components for new drives such as e-cars Launch of carpet innovation Di-Light • Lightweight technol
Slide 16: Business year 2017 Highlights Q2
Business year 2017 Highlights Q2 5-year anniversary of Katowice Development Center • Founded in 2012 as one of six Development Centers • Polish Development Center focuses on engine bay and interior floor components (e.g. Theta-Cell) New North America HQ opens in Novi (MI), USA • New Administrative a
Slide 17: Business year 2017 Highlights Q3
Business year 2017 Highlights Q3 Automotive Acoustics Conference: participant record • 250 participants discuss trends-related acoustic challenges • E-mobility and acoustic management innovations in focus • Conference under scientific leadership of Autoneum New Corporate Responsibility (CR) governan
Slide 18: Business year 2017 Highlights Q4
Business year 2017 Highlights Q4 New JV for R&D in vehicle acoustics in Japan • New Autoneum, Nittoku and Toyota Boshoku joint venture • Predevelopment studies for Toyota as first customer • 2017: 50 years of successful Autoneum-Nittoku collaboration Expansion in growth market China • Extension of p
Slide 19: Key figures Overview
Key figures Overview CHF million 2017 2016 Revenue 2’203.0 2’152.6 EBITDA* 255.9 245.0 in % of revenue 11.6% 11.4% EBIT* 178.0 175.6 in % of revenue 8.1% 8.2% Net profit* 118.5 117.0 Investments in tangible assets −173.6 −137.5 Free cash flow −50.5 101.3 Net debt at December 31 183.3 57.4 RONA* 16.2
Slide 20: Revenue development
Revenue development Organic revenue growth in line with market CHF million 2.9 27.4 39.6 −47.1 2.7 29.5 −4.5 2'203.0 Organic revenue growth +2.4% 2'152.6 Revenue Currency Disposal BG Europe BG North BG Asia BG SAMEA Corporate and Revenue 2016 translation Chicago Heights America eliminations 2017 eff
Slide 21: Revenue 2013 – 2017
Revenue 2013 – 2017 Continuous organic revenue growth* CHF million Growth 2.4% • Global automobile Growth 6.8% production lost considerable Growth Growth 10.6% momentum in 2017 9.9% Growth • Number of light vehicles 1.9% produced worldwide increased by 2.1% 2’203.0 2’152.6 • Autoneum increased 2’053
Slide 22: Operating result (EBIT)
Operating result (EBIT) BG Europe and BG SAMEA compensate BG North America CHF million Margin Margin 8.4% 6.5% Margin Margin 16.2 0.8% 8.1% Margin 8.2% −22.7 Margin 11.6% 10.0 −0.8 −0.3 178.0 175.6 EBIT BG Europe BG North BG Asia BG SAMEA Corporate and EBIT 2016* America eliminations 2017 *Before sp
Slide 23: Operating result (EBIT) 2013 – 2017
Operating result (EBIT) 2013 – 2017 Margin well above industry average CHF million Margin Margin 8.1% • 2017 EBIT margin again 8.2% Margin surpasses 8% 7.6% Margin • The impact of volume Margin 6.9% decline in BG North 5.7% America was compensated by BG Europe and BG SAMEA 175.6 178.0 158.0 135.1 11
Slide 24: Net profit 2013 – 2017
Net profit 2013 – 2017 Another year of sound net profit CHF million • 2014 net profit excluding a first-time recognition of deferred income tax assets was at CHF 86.1 million • 2015 net profit without the settlement with the German Federal Cartel Office 133.8 was at CHF 100.2 million 118.5 102.8 • 2
Slide 25: Balance sheet
Balance sheet Strong balance sheet • Investments in tangible CHF million 31.12.2017 31.12.2016 assets such as Total assets 1,484.3 1,297.8 technology roll-outs, vertical integration and Non-current assets 791.8 648.0 capacity expansion led Current assets 692.5 649.8 to higher non-current assets Tota
Slide 26: Equity 2013 – 2017
Equity 2013 – 2017 Equity ratio close to 2020 target CHF million Ratio 39.6% • Equity and equity ratio have been steadily Ratio 38.4% increased since 2013 Ratio Ratio 35.7% • 2017 equity ratio is close 35.7% to the 2020 target of >40% Ratio 30.5% 587.2 499.0 392.5 397.5 302.0 2013 2014 2015 2016 201
Slide 27: Free cash flow
Free cash flow High investments for future profitable growth CHF million 2017 2016 • In 2017 cash flows from operating activities Cash flows from operating activities 145.2 194.1 decreased because of higher net working capital Cash flows used in investing activities* −195.7 −92.8 Free cash flow −50.
Slide 28: Investments in tangible assets in 2017
Investments in tangible assets in 2017 Total spend of CHF 174 million Capacity expansion • China: Changsha, Yantai, Replacement & Pinghu, Shenyang Tiexi operational 34% excellence • Mexico: San Luis Potosí 1&2 Capacity • Hungary: Komárom expansion 43% Technology roll-out • New technologies for under
Slide 29: Return on net assets (RONA) 2013 – 2017
Return on net assets (RONA) 2013 – 2017 Substantial economic value creation 25% 20% • Since 2013 substantial economic value has been created 15% 20.3% 19.6% 18.0% 17.7% • RONA almost twice as 16.2% high as cost of capital 10% (WACC) in 2017 8.2% WACC • 2017 RONA decreased 5% due to investments in ta
Slide 30: Agenda
Agenda 1. Autoneum at a glance 2. Business year and financial results 2017 3. Outlook 2018 and financial targets 2020 4. New mobility trends Appendix
Slide 31: Key focus areas for profitable growth
Key focus areas for profitable growth Action plan 2018 BG Europe BG Asia • Expand Eastern • Ramp-up of new plants European footprint in China • Pursue vertical • Gain market shares integration with Chinese OEMs • Excel in program • Develop organization execution for targeted expansion BG North Ameri
Slide 32: Guidance
Guidance 2018 Global environment • Rise in global automobile production to around 97 million light vehicles (growth rate of 2%)* Revenue • Autoneum expects organic revenue growth of around 3% Profitability • In 2018, the Group’s EBIT margin will be at around 8% *According to IHS estimates. IR Presen
Slide 33: Financial targets 2020
Financial 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 I
Slide 34: Agenda
Agenda 1. Autoneum at a glance 2. Business year and financial results 2017 3. Outlook 2018 and financial targets 2020 4. New mobility trends Appendix
Slide 35: New mobility trends
New mobility trends Impacting the automotive industry beyond 2020 E-Mobility Connectivity Autonomous Driving Shared Mobility IR Presentation March 2018 35
Slide 36: Market development of electric vehicles
Market development of electric vehicles Outlook on Autoneum offering development 2018 2022 2027 Few BEV models on the market More BEV models on the market Many BEV models on the market Scenario Pioneering OEMs All OEMs All OEMs – autonomous/shared Low production volume Growing produc
Slide 37: Autoneum's current e-car supply
Autoneum’s current e-car supply Broad range equipped by Autoneum BMW Chevrolet Nissan Renault Daimler Product family i3 Bolt Leaf Zoe X10 B-Class Volumes 2017 32,000 30,000 35,000 31,000 4,500 Carpet o o o o systems Inner dashes / o o interior insulators Dampers and o o o stiffners Underbody o o shi
Slide 38: Autoneum's e-car supply 2018 – 2020
Autoneum’s e-car supply 2018 – 2020 Delivery of two new players 2018 2018 2018 2019 2019 2019 2019 2020 New OEM OEM New OEM OEM New OEM OEM OEM OEM OEMs Product family Carpet o o o o o systems Inner dashes / o o interior insulators Dampers and o o o o / o o o stiffners Underbody o o o o shields Whee
Slide 39: Self-driving cars and shared mobility
Self-driving cars and shared mobility High sales potential Self-driving cars Wellness, work, Sustainability: Interior architectures: New materials and communication and Sustainability of products the instrument panel will function integration: entertainment: and production processes shrink and leave
Slide 40: Competence Center New Mobility (CCNM)
Competence Center New Mobility (CCNM) The mission Support Organizations • Actively monitor ideas in the start-up Research Startup Ecosystem Big ecosystem and feed innovation in R&T Organizations • Ideas, inventions Companies and research • Start-ups at various • Establish mutual beneficial relations
Slide 41: New mobility OEMs and start-ups in California
New mobility OEMs and start-ups in California, USA Short list ranking by Venture Capital Product Production Production New OEM Founding Employees EV* AD* SM* Capital Description Capacity Timing 8 prototypes NIO 2014 2000 x x Luxury Electric Car produced Planned for 2020 $1 billion Autonomous electri
Slide 42: New mobility: Excel at trend analysis
New mobility Excel at trend analysis to unlock potential Topics Opportunities E-motors / Batteries / Specific treatments, Powertrain tonal noise Vehicle diagnostics and simulation architectures Weight down Leverage lightweight portfolio Aerodynamics Extended underbody coverage Dominant road noise Te
Slide 43: Innovating for new mobility: carpet technologies
Innovating for new mobility Selected carpet technologies Topic Opportunity Leverage lightweight Weight down portfolio • Improved control of AFR on main floor carpet Tune-It to optimize carpet acoustic performance Sustainable Leverage recycled fiber • Up to 25% lighter versus conventional technologie
Slide 44: Innovating for new mobility: exterior acoustics
Innovating for new mobility Selected exterior acoustics technologies Topic Opportunity Leverage lightweight Weight down portfolio • 100% porous product covering large areas Aerodynamics Extended underbody under the vehicle -> reduces interior and coverage Ultra- exterior noise Textile exterior Silen
Slide 45: Innovating for new mobility: motor noise attenuation
Innovating for new mobility Selected motor noise attenuation technologies Topic Opportunity Specific treatments, Powertrain tonal diagnostics and • Combination of Theta-Fiber and Theta-Cell noise simulation provides outstanding acoustic absorption at Theta- light weight FiberCell Leverage lightweigh
Slide 46: Conclusion: impact on product portfolio
Conclusion New mobility trends: impact on product portfolio Product families BEV including private Private autonomous Shared ICE including Shared BEV autonomous ICE autonomous including autonomous Carpets Floor insulators Inner dashes Wheelhouse liners Underbody panels Engine bay Heatshields IR Pres
Slide 47: Conclusion: New mobility trends support profitable growth
Conclusion New mobility trends support future profitable growth • New mobility trends such as e-mobility and autonomous/shared driving provide business opportunities for Autoneum • Autoneum benefits from its proven long-standing NVH and thermal expertise • Trends are early anticipated in the innovat
Slide 48: Appendix
Appendix
Slide 49: Broad product portfolio
Broad product portfolio Our product lines Engine Bay Interior Floor Underbody Body Treatment • Engine • Inner dashes • Underbody • Dampers Encapsulations • Tufted carpets systems • Stiffeners • Hoodliners • Non-woven • Wheelhouse • Outer dashes carpets outer liners • Engine top • Floor mats • Floor
Slide 50: Sales split
Sales split Body Interior floor Underbody Engine bay Other treatment • Inner dashes • Underbody shields • Engine mounted parts • Dampers/stiffeners • Trunk parts • Non-woven carpets • Floor pans • Body mounted parts • Sealants • Interior trim parts • Tufted carpets • Heat shields • Engine top cover
Slide 51: Theta-FiberCell - an engine bay innovation
Theta-FiberCell - an engine bay innovation Lightweight structural parts at best acoustic Lightweight 100% porous technologies allow product allows high implementation of acoustic perfor- innovative engine mance. Combination of encapsulations for CO2 Theta-Fiber and Theta-Cell reduction and acoustic
Slide 52: Hybrid-Acoustics – an interior floor innovation
Hybrid-Acoustics – an interior floor innovation Local tuning of insulation and absorption According to the Product delivering material variant up high acoustic to 70% of recycled insulation and material is used (mostly absorption. post-industrial cotton fibers). Lightweight product Thanks to the Inn
Slide 53: Di-Light – an interior floor innovation
Di-Light – an interior floor innovation Better durability and perceived quality Needlepunch Durability of a carpet carpets have until is not strictly now been seen as correlated to its cost-effective textile weight; Di-Light proves that surfaces but prone to with its more resilient fibrous flattenin
Slide 54: Ultra-Silent – an underbody innovation
Ultra-Silent – an underbody innovation Light, durable and acoustic Lightest product on No use of glass the market helps the fibers ensures customers achieving benchmark fixation the CO₂ targets. point strength and excellent stone impact performance for a high quality and durable product. Underfloor
Slide 55: Nero-Acoustics – a body treatment innovation
Nero-Acoustics – a body treatment innovation Core competence “acoustic” at low weight Up to 50% weight Improved damping- reduction compared to-mass to conventional performance dampers – still achieving allowing to reduce the area 20% weight saving weight of the part without compared to previous alte
Slide 56: Measurement systems
Measurement systems Product portfolio • Core competencies in acoustic and thermal management applied in specialized measurement systems • Innovative systems to measure components and material properties • Developed by experts – resulting in industry standards • Measurement systems set the industry s
Slide 57: Simulation tools
Simulation tools Product portfolio • Acoustic and Thermal Simulation tools for full system or component optimization • Scientific analysis combined with understanding of operational boundary in the automotive industry • Best-in-class solutions in concept and development phase and for VA/VE during se
Slide 58: 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 Responsibility CH-8406 Winterthur T +41 52 244 82 82 T +41 52 244 83 88 [email protected]
Slide 59: 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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