Schaeffler Ag · XETR:SHA0

Schaeffler — Schaeffler Ag Ord — Q2 2025 Earnings Presentation

33 slides from Schaeffler's earnings presentation, Aug 6, 2025

  1. Slide 1: Q2 2025 Schaeffler AG earnings

    Q2 2025 Schaeffler AG earnings August 6, 2025 Herzogenaurach Copyright Schaeffler AG, 2025 – All rights reserved. |

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains forward-looking statements. The words “anticipate”, This presentation is intended to provide a general overview of Schaeffler Group’s “assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “project”, business and does not purport to deal with all as

  3. Slide 3: Agenda

    1 1 Overview Overview 2 2 Business Performance Business Performance 3 3 Financial Performance Financial Performance 4 4 Outlook Outlook AGENDA

  4. Slide 4: Summary Q2 2025 – Solid quarter in a challenging environment

    1 OVERVIEW Summary Q2 2025 – Solid quarter in a challenging environment 1 2 3 4 5 Sales growth1 Q2 Gross margin Q2 EBIT margin2 Q2 Free Cash Flow3 Q2 EPS5 YTD -2.2% 19.2% 3.5% EUR 27 mn EUR 0.05 Q2 2025: EUR 5,922 mn Q2 2024: 19.1% Q2 2024: 3.9% Q2 2024: EUR -325 mn4 YTD 2024: N/A6 Key messages • Sa

  5. Slide 5: Agenda

    1 1 Overview Overview 2 2 Business Performance Business Performance 3 3 Financial Performance Financial Performance 4 4 Outlook Outlook AGENDA

  6. Slide 6: Q2 Sales growth – Heterogenous development across regions and divisions

    2 BUSINESS PERFORMANCE Q2 Sales1 growth – Heterogenous development across regions and divisions Hedge 1: ICE vs. BEV Powertrain & Vehicle Bearings & E-Mobility Chassis Lifetime Industrial Solutions Solutions Q2 2025 1 % of Group Region sales2 21% 38% 13% 28% growth Europe 47% +9.5% -13.8% +3.1% -4.1

  7. Slide 7: OEM Auto Powertrain 'Sales Outperformance' – Outperformance in BEV, strong Order Intake in HEV

    2 BUSINESS PERFORMANCE OEM Auto Powertrain1 ‘Sales Outperformance’ – Outperformance in BEV, strong Order Intake in HEV Outperformance by Powertrain Type2 Order Intake3/ Book-to-Bill4 by Powertrain Type H1 2025 vs H1 2024 H1 2025 Sales growth Market growth Outperformance Sales Order Intake Book-to-Bi

  8. Slide 8: E-Mobility – Strong sales growth, further gross margin improvement

    2 BUSINESS PERFORMANCE E-Mobility – Strong sales growth, further gross margin improvement Highlight Sales growth1 Q2 Order Intake2 Q2 • Various new business in Greater China for electric and hybrid vehicles +9.7% EUR 1.6 bn • Hybrid module business in North America for a leading American OEM Order I

  9. Slide 9: Powertrain & Chassis – Negative growth mainly driven by Europe, strong gross margin

    2 BUSINESS PERFORMANCE Powertrain & Chassis – Negative growth mainly driven by Europe, strong gross margin Highlight Sales growth1 Q2 Order Intake2 Q2 • Significant order for Diesel ECU used in Passenger Cars -7.3% EUR 1.9 bn • Secured long-term production with a major American OEM Order Intake Q1 2

  10. Slide 10: Vehicle Lifetime Solutions – Further growth despite strong Q2 2024, high gross margin level

    2 BUSINESS PERFORMANCE Vehicle Lifetime Solutions – Further growth despite strong Q2 2024, high gross margin level maintained Highlight Sales growth1 Q2 Outperformance2 Q2 • New logistics center in Ujazd, Poland to strengthen regional supply chains and facilitate +2.3% +0.0pp growth in Eastern Europ

  11. Slide 11: Bearings & Industrial Solutions – Despite slightly lower sales, gross margin improved

    2 BUSINESS PERFORMANCE Bearings & Industrial Solutions – Despite slightly lower sales, gross margin improved Highlight Sales growth1 Q2 Outperformance2 Q2 • Multi-year contracts covering engine main shaft and gearbox bearings for short- and medium-haul aircraft -0.5% -2.7pp signed • Received orders

  12. Slide 12: Capital allocation – Disciplined capital allocation, Capital Employed reduced

    2 BUSINESS PERFORMANCE Capital allocation – Disciplined capital allocation, Capital Employed reduced Capex Q2 2025 Reinvestment in EUR mn Rate1 Q2 2025 Capex Q2 Reinvestment Rate1 Q2 E-Mob 87 1.1x PTC 56 0.5x EUR 205 mn 0.6x VLS 8 0.5x Q2 2024: EUR 331 mn Q2 2024: 1.0x B&IS 45 0.5x Others 10 Others

  13. Slide 13: Integration Progress Dashboard – Integration execution with good progress, synergy realization on track

    2 BUSINESS PERFORMANCE Integration Progress Dashboard – Integration execution with good progress, synergy realization on track Example: Rebranding 1 Progress 2 Complexity Reduction 3 Synergies Regensburg 23.40 Monitoring of % MILESTONE COMPLETION+3.45% GROUP WORKSTREAM KPIs SYNERGY CAPTURE integrati

  14. Slide 14: Agenda

    1 1 Overview Overview 2 2 Business Performance Business Performance 3 3 Financial Performance Financial Performance 4 4 Outlook Outlook AGENDA

  15. Slide 15: Sales and Gross Profit – Stable gross margin despite lower sales, unfavorable FX effect

    3 FINANCIAL PERFORMANCE Sales and Gross Profit – Stable gross margin despite lower sales, unfavorable FX effect Sales Gross Profit Bridge and margin Q2 2024 vs. Q2 2025 in EUR mn in EUR mn 1,200 +44 +31 -2.2%1 6,280 5,922 -37 -41 +4 1,138 -63 Gross Profit Price Volume Mix Production FX effect Others

  16. Slide 16: EBIT margin – Slightly lower, negative FX effect

    3 FINANCIAL PERFORMANCE EBIT margin1 – Slightly lower, negative FX effect EBIT1 EBIT1 Bridge and margin Q2 2024 vs. Q2 2025 in EUR mn in EUR mn +3 244 0 -0.4pp -4 244 -19 205 205 -19 EBIT Q2 24 Gross Profit R&D expenses SG&A Others FX2 EBIT Q2 25 excl. FX expenses 3.9% 3.5% Key Aspects • Net negativ

  17. Slide 17: E-Mobility – Strong growth in Electric Drives and Controls, EBIT margin clearly improved

    3 FINANCIAL PERFORMANCE E-Mobility – Strong growth1 in Electric Drives and Controls, EBIT margin2 clearly improved Sales EBIT2 Sales by business division Q2 in EUR mn in EUR mn yoy growth1 Electric Drives +9.7%1 +6.5pp Mechatronics & Modules 14% +21.9% 1,245 -14.9% 1,179 -22.0% -15.5% 31% Controls 5

  18. Slide 18: Powertrain & Chassis – Sales decline mainly related to reduced demand of European OEMs

    3 FINANCIAL PERFORMANCE Powertrain & Chassis – Sales decline mainly related to reduced demand of European OEMs, EBIT margin2 lower Sales EBIT2 Sales by business division Q2 in EUR mn in EUR mn yoy growth1 Chassis Systems -7.3%1 -2.8pp 5% -8.5% 2,515 320 2,245 43% Powertrain Solutions 223 -9.8% 52% E

  19. Slide 19: Vehicle Lifetime Solutions – Slight growth despite strong Q2 2024, EBIT margin lower

    3 FINANCIAL PERFORMANCE Vehicle Lifetime Solutions – Slight growth1 despite strong Q2 2024, EBIT margin2 lower Sales EBIT2 Sales by business division Q23 in EUR mn in EUR mn yoy growth1 +2.3%1 -2.0pp Specialty Business 788 780 129 -2.4% 26% 112 Platform Business Repair & Maintenance 5% Solutions +37

  20. Slide 20: Bearings & Industrial Solutions – Slight sales decline driven by region Europe, higher EBIT margin

    3 FINANCIAL PERFORMANCE Bearings & Industrial Solutions – Slight sales decline driven by region Europe, higher EBIT margin2 Sales EBIT2 Sales by business division Q2 in EUR mn in EUR mn yoy growth1 +1.4pp Linear Motion Aerospace Bearings -0.5%1 1,679 93 -4.2% 6% 6% +21.0% 1,614 74 39% Automotive Bea

  21. Slide 21: Free Cash Flow – Strong FCF in Q2, Capex management and Working Capital discipline

    3 FINANCIAL PERFORMANCE Free Cash Flow – Strong FCF in Q2, Capex management and Working Capital discipline Free Cash Flow before M&A1 FCF Bridge Q2 2025 in EUR mn in EUR mn 529 +352 -11 27 -205 -27 -124 27 -135 EBITDA Q2 25 ∆ Net Working Capex Net Interest Taxes Others FCF Q2 251 Capital Key Aspects

  22. Slide 22: Debt Profile – Pro Forma Leverage ratio at 2.4x

    3 FINANCIAL PERFORMANCE Debt Profile – Pro Forma Leverage ratio1 at 2.4x Reported net financial debt and Leverage ratio Maturity Profile Schaeffler AG as of June 30th in EUR mn in EUR mn 5,255 1,393 1,463 4,920 5,013 76 1,357 4,812 4,834 76 87 4,613 507 750 667 789 642 542 57 2.5 2.5 1,300 132 42 42

  23. Slide 23: Christophe Hannequin – CFO and a member of the Executive Board of Schaeffler AG

    3 FINANCIAL PERFORMANCE Christophe Hannequin – CFO and a member of the Executive Board of Schaeffler AG as of September 1, 2025 • Christophe Hannequin (48) has been Group Chief Financial Officer at the JCB Group in Great Britain since 2022 • Between 2008 and 2022, he held various management position

  24. Slide 24: Agenda

    1 1 Overview Overview 2 2 Business Performance Business Performance 3 3 Financial Performance Financial Performance 4 4 Outlook Outlook AGENDA

  25. Slide 25: FY 2025 Guidance – Confirmed for all metrics, while dealing with tariffs and trade conflicts

    4 OUTLOOK FY 2025 Guidance – Confirmed for all metrics, while dealing with tariffs and trade conflicts Powertrain Vehicle Lifetime Bearings & Schaeffler Group E-Mobility & Chassis Solutions Industrial Solutions Sales 23.0 to 25.0 5.0 to 5.5 9.0 to 9.5 3.0 to 3.25 6.0 to 6.75 in EUR bn 3% to 5% -17%

  26. Slide 26: Outlook – Capital Markets Day September 16, 2025

    4 OUTLOOK Outlook – Capital Markets Day September 16, 2025 Financial calendar and selected IR events 2025 Aug 6 Q2 2025 Earnings Release Aug 7 Kepler Roadshow – Virtual Sep 2 - 3 Morgan Stanley Industrial CEOs Unplugged – London Sep 16 Capital Markets Day Sep 17 Bank of America Roadshow – London Sep

  27. Slide 27: Backup

    BACKUP

  28. Slide 28: Ancillary comments 2025 – Additional KPIs and parameter

    BACKUP Ancillary comments 2025 – Additional KPIs and parameter Additional KPIs FY 2025 Comments Reinvestment Rate Around 1.0 Focus on investments in new business and innovation & technology Restructuring cash-out incl. Around EUR 350 mn Significant portion due to structural measures integration cost

  29. Slide 29: Market assumptions

    BACKUP Market assumptions Global LVP1 Global and regional LV Parc2 Global and regional Industrial Production3 89.6 89.9 4.7% 4.0% 3.7% World World 43.5 46.0 44.9 45.0 1.9% 1.5% 1.7% 1.1% H1 H2 2024 H1 H2 2025e S&P Europe Americas Greater China Asia/Pacific -0.6% Europe Americas Greater China Asia/Pa

  30. Slide 30: OEM Auto Powertrain 'Sales Outperformance' – Outperformance in BEV, strong Order Intake in HEV

    BACKUP OEM Auto Powertrain1 ‘Sales Outperformance’ – Outperformance in BEV, strong Order Intake in HEV Outperformance by Powertrain Type2 Order Intake3/ Book-to-Bill4 by Powertrain Type Q2 2025 vs Q2 2024 Q2 2025 Sales growth Market growth Outperformance Sales Order Intake Book-to-Bill BEV 51.8% 36.

  31. Slide 31: Key figures by division 2025

    BACKUP Key figures by division 2025 Group Q1 25 Q2 25 H1 25 VLS Q1 25 Q2 25 H1 25 in EUR mn in EUR mn Sales 5,924 5,922 11,845 Sales 783 780 1,564 Sales growth1 -2.9% -2.2% -2.6% Sales growth1 +10.7% +2.3% +6.3% EBIT2 276 205 482 EBIT2 123 112 235 EBIT margin2 4.7% 3.5% 4.1% EBIT margin2 15.7% 14.4%

  32. Slide 32: Pro forma 2024 by division and quarters

    BACKUP Pro forma 2024 by division and quarters Group Q1 24 Q2 24 Q3 24 Q4 24 FY 24 VLS Q1 24 Q2 24 Q3 24 Q4 24 FY 24 in EUR mn in EUR mn Sales 6,141 6,280 5,947 5,944 24,313 Sales 717 788 741 715 2,961 EBIT1 287 244 206 105 842 EBIT1 114 129 104 93 440 EBIT margin1 4.7% 3.9% 3.5% 1.8% 3.5% EBIT marg

  33. Slide 33: Overview corporate and financing structure

    BACKUP Overview corporate and financing structure Financing structure as of June 30, 2025 IHO Verwaltungs GmbH Corporate structure (simplified) as of June 30, 2025 A Debt instrument Nominal Nominal Interest Maturity Rating USD mn EUR1 mn Fitch/Moody’s/S&P Loans RCF (EUR 1,000 mn) - 0 E+3.75% Feb-28

Schaeffler Ag Ord — Q2 2025 Earnings Presentation on 6ix