Slide 1: IR Presentation, March 2020
Bernhard Wiehl, CFO IR Presentation, March 2020 Autoneum. Mastering sound and heat.
Slide 2: Agenda
Agenda 1. Autoneum at a glance 2. Highlights and results financial year 2019 3. Outlook 2020 4. Technology trends IR Presentation . March 2020 2
Slide 3: Autoneum in a nutshell
Who we are Autoneum in a nutshell IR Presentation . March 2020 3
Slide 4: At a glance
About Autoneum At a glance 2019 in review Stock-listed Represented in Acoustic expertise for 3 customer awards company (SIX 25 countries half a century in Canada for Argentinian plant Swiss Exchange) Around 13000 employees worldwide 55 production facilities Innovations for e-cars: Online configurato
Slide 5: Focus on future mobility
Strategic orientation Focus on future mobility Strategic priorities Strategic focus areas IR Presentation . March 2020 5
Slide 6: Group Executive Board
Organization Group Executive Board Matthias Bernhard Wiehl Dr Alexandra Greg Sibley Andreas Kolf Fausto Bigi Holzammer Bendler CEO CFO Head Head Head Head BG Europe BG North America BG Asia BG SAMEA IR Presentation . March 2020 6
Slide 7: Our products
Leading in acoustic and thermal management Our products Engine bay Body • Engine encapsulations treatment • Hoodliners and outer • Dampers dashes • Stiffeners • Engine and battery covers Interior floor • Inner dashes Underbody • Floor insulators • Underbody shields • Tufted carpets • Wheelhouse oute
Slide 8: Active in all automotive markets
Global presence Active in all automotive markets Autoneum Locations with minority shareholders Associated companies and investments Europe Licensees Belgium Germany Portugal Spain ⋅ Genk ⋅ Munich ⋅ Setúbal ⋅ A Rúa ⋅ Rossdorf- ⋅ Valldoreix Czech Republic Gundernhausen Russia ⋅ Bor ⋅ Sindelfingen ⋅ Ry
Slide 9: Customers
Customers Most car manufacturers worldwide Light vehicles Commercial vehicles IR Presentation . March 2020 9
Slide 10: Key financials
Facts and figures 2019 Key financials Revenue by Revenue by 2297.4 region (in %) customer (in %) CHF million Revenue 14 SAMEA 4 1.5%* Asia 12 5 2 2 2 12 Europe 5 11 EBIT margin 39 5 5 ‒77.7 9 North America 6 44 6 7 6 7 CHF million Net result * Without one-time effects from impairment of fixed assets
Slide 11: Proximity to customers
Global collaboration Proximity to customers Research and Regional acoustic Customer interface / Vehicle Development Center / and Development Centers Customer Business manufacturers Product Management Units Aubergenville, France Katowice, Poland Gundernhausen, Germany Europe Sevelen, Switzerland Wint
Slide 12: Key achievements in 2019
Advance Sustainability Strategy 2025 Key achievements in 2019 More than 60 eco-efficiency projects: With its Advance Sustainability Strategy 2025, Waste reduction Autoneum has defined an ambitious set of environmental, social and Energy consumption ethical targets Water usage Launch of three 130 com
Slide 13: Agenda
Agenda 1. Autoneum at a glance 2. Highlights and results financial year 2019 3. Outlook 2020 4. Technology trends IR Presentation . March 2020 13
Slide 14: 2019: year in review
2019: year in review Financials Market Strategy • Organic revenue growth of 2.5% • 2nd consecutive year of • Roll-out of lightweight Ultra-Silent outpaced declining market decreasing global automobile technology in Asia production • EBIT margin before one-time • Expansion of vertical integration imp
Slide 15: Significant decline in all major markets
Light vehicle production 2019 by region Significant decline in all major markets 2018: 94.2 million light vehicles (LVs) 2019: 88.9 million LVs (–5.6% vs. 2018) 26.6 24.4 18.8 18.1 1.6 1.6 13.0 12.5 Russia –1.3% China USA/Canada –8.2% –4.2% Europe* 9.2 9.2 1.5 1.4 4.7 4.2 –4.1% Turkey 3.9 3.8 –5.4%
Slide 16: Root causes and effects of crisis
Update North America Root causes and effects of crisis Root causes Effects Aggressive acquisition pricing Aggressive growth Launch without production-ready products and sales strategy Destabilization of two US Lack of risk and complexity consideration plants Limited customer know-how of Euro
Slide 17: Overview
Key figures Overview CHF million 2018 2019 Change Revenue 2 281.5 2 297.4 15.9 EBITDA 197.2 164.0 –33.2 in % of revenue (change in pp) 8.6% 7.1% –1.5 EBIT before one-time effects* 114.1 35.0 –79.1 in % of revenue (change in pp) 5.0% 1.5% –3.5 EBIT 114.1 −32.9 –147.0 in % of revenue (change in pp) 5.
Slide 18: Growth in declining global market
Revenue development Growth in declining global market CHF million 36.5 −10.8 −42.2 21.1 −55.2 66.4 2 297.4 2 281.5 Organic revenue growth: 2.5% Revenue BG Europe BG North BG Asia BG SAMEA Corporate and Currency Revenue 2018 America eliminations translation/ 2019 hyperinflation effect IR Presentation
Slide 19: Declining market and inefficiencies impacted EBIT
EBIT development* Declining market and inefficiencies impacted EBIT CHF million Margin Margin 5.0% 5.7% Margin −30.9 −7.3%* 114.1 Margin −64.6* 1.5%* Margin Margin 6.5%* 8.5% 17.6 35.0* −1.0* −0.1 EBIT BG Europe BG North BG Asia BG SAMEA Corporate and EBIT 2018 America eliminations 2019 *Before one-
Slide 20: New standard for lease accounting (IFRS 16)
Income statement New standard for lease accounting (IFRS 16) 2019 IFRS 16 2019 CHF million 2018 (excl. IFRS 16) effects (incl. IFRS 16) Revenue 2 281.5 2 297.4 2 297.4 Material expenses −1 101.1 −1 154.6 −1 154.6 Employee expenses −627.3 −642.8 −642.8 Other expenses −404.1 −401.2 38.0 −363.2 Other i
Slide 21: Walk from EBITDA to net result
Net result Walk from EBITDA to net result CHF million −128.9 164.0 EPS −20.82 −68.0 −32.9 −55.3 −77.7 −22.3 −96.8 −22.4 −19.1 EBITDA Depreciation, One-time EBIT Financial Earnings Income Net result Net result Net result 2019 amortization effect from 2019 result before taxes 2019 attributable attribu
Slide 22: Lower equity ratio as a result of higher net debt
Balance sheet Lower equity ratio as a result of higher net debt 31.12.2019 IFRS 16 31.12.2019 • Investments in tangible assets CHF million 31.12.2018 reduced by CHF 36.8 million (excl. IFRS 16) effects (incl. IFRS 16) compared to 2018 Total assets 1 601.3 1 539.4 299.7 1 839.1 • Net working capital
Slide 23: Improved free cash flow despite lower earnings
Free cash flow (FCF) generation Improved free cash flow despite lower earnings CHF million −9.9 0.1 −40.7 36.8 8.5 −33.2 −16.8 19.4 15.8 FCF 2018 Change Change Change Change net Change Change Change in FCF EBITDA NWC other interests income investments other FCF 2019 operating paid taxes paid in tang
Slide 24: Higher net debt due to lack in FCF generation
Net debt Higher net debt due to lack in FCF generation CHF million −2.8 −1.5 −25.8 −9.9 −32.3 21.0 335.0 283.7 262.7 Net debt Finance Net debt FCF Dividends to Repayment Purchase Currency Net debt 31.12.2018 lease (excl. AUTN/minority of lease of treasury translation (excl. liabilities lease shareho
Slide 25: Agenda
Agenda 1. Autoneum at a glance 2. Highlights and results financial year 2019 3. Outlook 2020 4. Technology trends IR Presentation . March 2020 25
Slide 26: Further decline in global automobile production
Light vehicle production forecast 2020 Further decline in global automobile production 2019: 88.9 million LVs 2020: 87.2 million LVs (–1.9% vs. 2019) 24.4 23.3 18.1 17.8 12.5 12.7 1.6 1.5 Russia –5.7% China USA/Canada –4.5% +1.7% Europe* 9.2 9.0 1.4 1.3 4.2 4.0 –1.5% 3.8 3.8 Turkey –5.7% India Japan
Slide 27: Action plan 2020
Outlook Action plan 2020 Improve profitability Turnaround program BG North America • Implementation of improvement actions to significantly reduce losses in 2020 • Identification of additional improvements beyond 2020 Increase in manufacturing performance at all Business Groups • Reduction of sc
Slide 28: Turnaround program in full swing
Action plan turnaround North America Turnaround program in full swing • Comprehensive North America turnaround program initiated and implementation started at all locations • Specific action plan for US plant in Aiken in order to improve operational and commercial performance Seven work packages hav
Slide 29: Improvements of Aiken plant in USA
Turnaround program in North America Improvements of Aiken plant in USA Dedicated support from internal expert team working on Aiken plant recovery since Q4/2019 First achievements: Production inventory reduced from CHF 9.5 million to CHF 6 million Scrap rates improved from >12% to <4% Direct l
Slide 30: Focus on turnaround in North America
Action plan 2020 per region Focus on turnaround in North America Europe Asia • Further improve profitability • Increase profitability and • Gain market shares in declining competitiveness market • Boost Lean Manufacturing and • Flexible adjustment to Autoneum Production System fluctuating demand (AP
Slide 31: Guidance 2020
Guidance 2020 Revenue Revenue growth is expected to be at market level. Market Global automobile production is forecasted to decrease.* Profitability & cash • Based on the uncompromising focus on the turnaround and the implementation of corresponding measures in North America, Autoneum aims at signi
Slide 32: Agenda
Agenda 1. Autoneum at a glance 2. Highlights and results financial year 2019 3. Outlook 2020 4. Technology trends IR Presentation . March 2020 32
Slide 33: Trends impacting beyond 2020
New mobility Trends impacting beyond 2020 E-mobility Connectivity Autonomous driving Shared mobility IR Presentation . March 2020 33
Slide 34: Hybrid to be the predominant drivetrain
Drivetrain electrification Hybrid to be the predominant drivetrain In million units 120 104.3 100 94.2 80 60 40 20 Electric Hybrid Internal combustion 0 engine (ICE) 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Source: IHS Powertrain Forecast, January 2020 IR Presentation . March 2020 34
Slide 35: Autoneum Group
2019 revenue split by product line Autoneum Group Interior floor Underbody Engine bay Body treatment Other • Non-woven carpets • Underbody shields • Engine and body • Dampers/stiffeners • Trunk parts • Tufted carpets • Floor pans mounted parts • Other acoustic • Interior trim parts • Inner dashes •
Slide 36: Impact on current product portfolio
Drivetrain electrification Impact on current product portfolio Products ICEs Hybrids BEVs Carpets Floor insulators Inner dashes Underbody systems Wheelhouse outer liners Heatshields Engine bay (in general) IR Presentation . March 2020 36
Slide 37: Traditional automotive brands keep the lead
Drivetrain electrification Traditional automotive brands keep the lead Traditional Brand (ICE/Hybrid) • 89% of all electric vehicles 92.5 (EV) to be produced by 2027 -1.9% will still be owned by a 90.8 traditional automotive brand • By 2027, the production share of traditional Brand (EV) Traditional
Slide 38: Research and development
Research and development Facts and figures Global network 15 customer projects for Around 90% of all with R&D headquarters in vehicle pre-development innovations brought to Winterthur, Switzerland the market Supply of eleven new Scientific leadership of the Over 300 employees electric cars in China
Slide 39: Quietness and sustainability also for ICEs and BEVs
Hybrid-Acoustics PET Quietness and sustainability also for ICEs and BEVs Market needs: • Powertrain acoustic treatment with high insulation • Recycled content > 25%, glass free, recyclable • Temperature resistance • Cost effective Hybrid-Acoustics PET powertrain encapsulation • 100% PET felt, up to
Slide 40: More range and quietness for BEVs
Ultra-Silent battery undercover More range and quietness for BEVs Market needs: • Thermal insulation of the battery casing • Tire noise reduction for interior and environmental noise reduction • Protection against gravel impact • Recycled content and recyclability • High durability • Low weight Ultr
Slide 41: Quietness for passengers and the environment
Acoustic wheelhouse outer liners Quietness for passengers and the environment Market needs: • Reduce interior road noise, in particular for BEVs • Reduce tire noise to the environment • Protect the body in white • Improve aerodynamics • Reduce weight Autoneum solutions: • Textile material, also 100%
Slide 42: Quietness and sustainability for ICEs and BEVs
Hybrid-Acoustics ECO+ Quietness and sustainability for ICEs and BEVs Market needs: • Interior acoustic treatment delivering acoustic insulation and absorption at the same time • High recycled content • Lightweight • Cost effective Hybrid-Acoustics ECO+ inner dashes • Post-industrial cotton felt, up
Slide 43: Quietness, sustainability and low odor
Prime-Light Quietness, sustainability and low odor Market needs: • Lightweight and sustainable alternative to heavy layer and polyurethane foam • High design freedom (low and high thickness) • Lower odor and emissions • Cost effective Prime-Light floor insulators • Post-industrial cotton felt, up to
Slide 44: Contact persons
Contact persons Investors and financial analysts Media Contact address Bernhard Weber Dr Anahid Rickmann Autoneum Holding Ltd Head Financial Services & IR Head Corporate Communications & Schlosstalstrasse 43 / P.O. Box Responsibility CH-8406 Winterthur T +41 52 244 82 07 T +41 52 244 83 88 investor@
Slide 45: 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
Slide 46: Notes
Notes IR Presentation . March 2020 46
Slide 47: and,
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