Hella Gmbh & Co. Kgaa · XETR:HLE
Hella Gmbh & Co. Kgaa — FY2021/22 Earnings Presentation
32 slides from Hella Gmbh & Co. Kgaa's earnings presentation, Aug 18, 2022
Slide 1: HELLA Investor Update FY 2021/22
HELLA Investor Update FY 2021/22 August 18 th , 2022
Slide 2: Summary
Summary 01 Key Highlights| Michel Favre 02 Financial Results | Bernard Schäferbarthold 03 Outlook | Michel Favre 04 Q&A
Slide 3: Key Highlights
01 Key Highlights
Slide 4: Highlights in FY 2021/22
Highlights in FY 2021/22 ❯ Record order intake of around €10bn achieved in Automotive, ongoing project wins for innovations • secures continuous outperformance of the LVP and helps to bring profitability mid-and long term back to the level of 8% • important orders for strategic growth areas like ele
Slide 5: Record order intake of €10bn in Automotive in FY21/22
Record order intake of €10bn in Automotive in FY21/22 Actual further orders for Automotive innovations in the field of Electronics and Lighting Autonomous ❯ Large-volume acquisitions that feed perfectly into strategic Electrification Driving growth areas HV converters, • successful launch of 77GHz t
Slide 6: Order intake and further innovations secure future outperformance and support mid-term profitability targets
Order intake and further innovations secure future outperformance and support mid-term profitability targets Selected innovation highlights with important project wins Multifunctional front panels to boost brand differentiation Special feature: highly integrated module available in different integra
Slide 7: Realization of synergies fully on track, joining forces with Faurecia
Realization of synergies fully on track, joining forces with Faurecia strengthens HELLA’s market and cost position Synergy plants implemented; realization of further synergy projects ongoing TOP 10 synergy projects ❯ Around 200 synergy opportunities identified and 1. Direct & Indirect Purchasing now
Slide 8: HELLA practices a stringent portfolio management as a part of its corporate strategy
HELLA practices a stringent portfolio management as a part of its corporate strategy Joint Ventures, partnerships and M&A subject to regular review and further development in changing market conditions ❯ Sales of 33.33% in HBPO to Plastic Omnium for an agreed purchase price of €290m to further sharp
Slide 9: HELLA assumes responsibility by setting more targets and a strong focus on milestones
HELLA assumes responsibility by setting more targets and a strong focus on milestones Climate protection as central field of action within sustainability strategy TARGETS ACHIEVEMENTS FY 2021/22 Operate with C02 neutral production ❯ Scope 1 & 2 emissions determined for all locations in FY (Scope 1 a
Slide 10: Financial Results
02 Financial Results
Slide 11: HELLA faced an extremely demanding market environment with massive swings
HELLA faced an extremely demanding market environment with massive swings Due to its fiscal year HELLA was impacted by all market hiccups occurred since mid of last year Global Light Vehicle Production in million units, IHS Markit per 18 July 2022 ❯ Full financial year impacted by bottlenecks for L
Slide 12: HELLA Automotive outperforms the global market by 6.5%-pts
HELLA Automotive outperforms the global market by 6.5%-pts, especially strong out performance in Europa and Asia /Pacific High outperformance in China supported by ramp-ups Region NSA Europe Asia/ Pacific incl. RoW External Sales 1.2 2.9 1.3 Automotive FY 21/22) billion Euro billion Euro billion Eur
Slide 13: FY 2021/22 group sales of €6.326bn, down only 0.8%
FY 2021/22 group sales of €6.326bn, down only 0.8% including positive FX effects of €97m ❯ Organic sales down 2.4% to €6,229m adjusting for positive FX effects in FY 2021/22 of €97m ❯ Automotive -2.1% to €5,431m: sales impacted by declining LVP especially due to persistent bottlenecks for electronic
Slide 14: Adjusted GPM decreased with sales decline in Automotive and strong cost inflation
Adjusted GPM decreased with sales decline in Automotive and strong cost inflation especially for material and logistics Adjusted Gross Profit ❯ Adj. Gross Profit decreased by €86m (-5.5%) to in €m €1,477m • Automotive -9.4% to €1,080m 1,749 1,563 1,356 1,477 • Aftermarket +6.6% to €242m -86 -393 +20
Slide 15: Increasing R&D expenses reflect higher volume of order book
Increasing R&D expenses reflect higher volume of order book Further gradual expense increase for ground research and pre -development activities Adjusted R&D expenses ❯ Adj. absolute R&D expenses increased by in €m €90m (+14.9% YoY) to €693m 693 • FY 21/22 increase of development expenses as a 611 6
Slide 16: Further stringent focus on SG&A expenses, synergies and improvement program
Further stringent focus on SG&A expenses, synergies and improvement program will contribute to future SG&A reductions Development impacted by comparably low prior year due to positive one -offs Adjusted SG&A expenses ❯ Adj. SG&A costs increased by €49m (+10.2%) in €m to €532m 614 • small increase in
Slide 17: Adjusted EBIT below prior-year's level with weak top line development
Adjusted EBIT below prior-year’s level with weak top line development, cost inflation and high R&D Lower gross profit and expansion of R&D main driver for EBIT decline Adjusted EBIT ❯ Adjusted EBIT decreased by €232m (-45.4%) in €m to €279m 572 510 • decrease in adj. Gross Profit by €86m (-5.5%) • h
Slide 18: Adjusted EBIT and adj. EBIT margin affected by sales decline and cost inflation
Adjusted EBIT and adj. EBIT margin affected by sales decline and cost inflation Customer claims can counterbalance part of negative impacts ❯ Adjusted EBIT impacted by • cost inflation on raw materials, energy, transportation and wages, counterbalance by claims • negative volume and mix effects main
Slide 19: Q4 FY 2021/22 Automotive business impacted severely by negative market environment
Q4 FY 2021/22 Automotive business impacted severely by extraordinary negative market environment Other two segments continuously show strong contributions Quarterly Comparison ❯ Sales in Automotive negatively impacted by Covid-related Q4 FY 20/21 Total Sales Growth in % Q4 FY 21/22 Total Sales Growt
Slide 20: Adjusted Free Cash Flow negatively impacted by lower sales and working capital changes
Adjusted Free Cash Flow negatively impacted by lower sales and working capital changes Inventory increase main driver of negative cash flow Adj. FCF from operating activities ❯ Adj. Free Cash Flow from operating activities in €m decreased by €430m to -€213m 243 222 217 • lower operating profit -21 -
Slide 21: Working Capital development strongly negatively impacted by market distortions
Working Capital development strongly negatively impacted by market distortions – reversal with stabilized call-offs Successful WC management program achieved targeted reduction of WC/Sales before the pandemic Working Capital ❯ Inventory increase since 2021 due to Stop & Go in €m and % of sales produ
Slide 22: Automotive sales decline due to weak H1 and year-end
Automotive sales decline due to weak H1 and year-end Margin slump with decrease in GPM and further R&D expenses Automotive ❯ Sales decline of 2.1% due to weak market environment Sales in €m • worsening resource bottlenecks for electronic components -2.1% especially in the first half of FY 2021/22 an
Slide 23: Aftermarket and Special Applications with strong customer demands
Aftermarket and Special Applications with strong customer demands Profitability supported by growth and cost management Aftermarket ❯ Positive top-line development (+15.6%) Total sales in €m EBIT in €m • IAM supported by strong business in Germany, Poland and the EBIT Margin (% of total sales) Ameri
Slide 24: Outlook
03 Outlook
Slide 25: Even though global vehicle production is expected to recover, risks remain
Even though global vehicle production is expected to recover, risks remain Market Outlook Expected Global Light Vehicle production in million units, IHS Markit per 18 July 2022 HELLA is more cautious and expects a range between 80 +12.6% and 84 million units Market outlook subject to risks, in part
Slide 26: HELLA guidance assumes sales and margin recovery especially in 2023
HELLA guidance assumes sales and margin recovery especially in 2023 Guidance is based on LPV volumes between 80-84 million vehicles until May 2023 Guidance Jun 1, 2022 to May 31, 2023 Sales in the range of around Adjusted EBIT margin in the range EUR 7.1 bn to 7.6 bn of around 5.5% to 7.0% (adjusted
Slide 27: Q&A
04 Q&A
Slide 28: Appendices
APPENDICES
Slide 29: LVP production and Automotive external sales per region
LVP production and Automotive external sales per region FY 19/20 FY 20/21 FY 21/22 FY18/19 FY19/20 FY20/21 FY21/22 HELLA Automotive HELLA Automotive Worldwide 5,723 4,919 5,489 5,364 external sales growth -14.0% +11.6% -2.3% external sales 3,503 2,882 3,234 2,929 in €m Europe Growth -17.7% +12.2 -9.
Slide 30: HELLA Group P&L including reconciliation
HELLA Group P&L including reconciliation FY 2020/21 FY 2021/22 Revenues reported 6,379.7 6,326.1 Adjustments 0.0 0.0 Revenues adjusted 6,379.7 6,326.1 Gross Profit reported 1,533.0 1,459.5 Adjustments 30.0 17.2 Gross Profit adjusted 1,563.0 1,476.7 R & D expenses reported -670.4 -689.4 Adjustments 6
Slide 31: Disclaimer
Disclaimer o This document was prepared with reasonable care. However, no responsibility can be assumed for the correctness of the provided information. In addition, this document contains summary information only and does not purport to be comprehensive and is not intended to be (and should not be
Slide 32: -ORVIA
-ORVIA
HELLA GmbH & Co. KGaA — FY2021/22 Earnings Presentation on 6ix