Zf Commercial Vehicle Control Systems India Limited · NSE:ZFCVINDIA
Zf Commercial Vehicle Control Systems India — ZF Friedrichshafen — H1 2022 Earnings Presentation
24 slides from Zf Commercial Vehicle Control Systems India's earnings presentation, Aug 3, 2022
Slide 1: Investor and Analyst Call H1 2022
Investor and Analyst Call H1 2022 August 3, 2022 Dr. Konstantin Sauer, CFO Ulf Loleit, Head of Corporate Finance ZF Group © ZF Friedrichshafen AG
Slide 2: Disclaimer
DISCLAIMER IMPORTANT: You must read the following before continuing. By listening and/or attending the presentation you are deemed to ha ve taken notice of the following limitations. ZF Friedrichshafen AG (the “Company”, and together with its subsidiaries, the “ZF Group”) has prepared this document
Slide 3: Living in a World of Crises – Anticipation is Key!
Living in a World of Crises – Anticipation is Key! Covid-19 Uncertainties Semiconductor War Disrupted Rising outbreaks in energy shortage in Ukraine supply chains inflation and lockdowns supply August 3, 2022 | Half-Year figures as of June 30, 2022 © ZF Friedrichshafen AG 3
Slide 4: Consequently Pursuing Our Strategy in 2022
Consequently Pursuing Our Strategy in 2022 Significant new Orders for high performance business wins hardware and software Adapting structures Successfully launched and ways of working Commercial Vehicle to reflect “new normal” Solutions Division ZF’s Strategy provides framework in times of crisis A
Slide 5: Business Wins Even in Difficult Times: Electric Driveline Orders
Business Wins Even in Difficult Times: Electric Driveline Orders € 23 bn August 3, 2022 | Half-Year figures as of June 30, 2022 © ZF Friedrichshafen AG 5
Slide 6: Wind Power Development Weakening, ZF Business Unit Continues Performing Well
Wind Power Development Weakening, ZF Business Unit Continues Performing Well For climate and nature August 3, 2022 | Half-Year figures as of June 30, 2022 © ZF Friedrichshafen AG 6
Slide 7: Financial Key Figures H1 2022
Financial Key Figures H1 2022 August 3, 2022 | Half-Year figures as of June 30, 2022 © ZF Friedrichshafen AG 7
Slide 8: Financial Overview H1 2022
Financial Overview H1 2022 4.0% €-630 million €21.2 billion Adjusted Adjusted Free Sales EBIT margin Cashflow €1.7 billion €5 billion €666 million Research & Liquidity Investments PP&E Development August 3, 2022 | Half-Year figures as of June 30, 2022 © ZF Friedrichshafen AG 8
Slide 9: Sales Development H1 2022
Sales Development H1 2022 in € million +10% 4,6% 5,1% (989) (890) 21.221 19.342 H1 2021 Organic FX H1 2022 August 3, 2022 | Half-Year figures as of June 30, 2022 © ZF Friedrichshafen AG 9
Slide 10: Sales by Regions
Sales by Regions in € million and in % of sales Europe North 9,563 28% America 45% 5,952 23% Asia-Pacific 4,770 1% South 3% America Africa 696 240 Organic growth in H1 2022 compared to previous year August 3, 2022 | Half-Year figures as of June 30, 2022 © ZF Friedrichshafen AG 10
Slide 11: Sales by Divisions / Passenger Car
Sales by Divisions / Passenger Car H1 2021 H1 2022 in € million +12% +5% 5,453 +12% 4,887 11% 3,663 3,853 3,039 25% 2,721 1,948 2,159 904 1,129 Electrified Car Chassis Active Safety Passive Safety Electronic/ Powertrain Technology Systems Systems ADAS ZF Passenger Car Divisions in total 6% organic g
Slide 12: Sales by Divisions
Sales by Divisions H1 2021 H1 2022 in € million +4% 3,510 3,660 +8% +10% 1.558 1.683 1.465 1.608 Commercial Industrial Aftermarket Vehicle Solutions Technology Commercial Vehicle Solutions started as new Division as of January 1, 2022 New business wins for system solution in commercial vehicle segme
Slide 13: R&D Expenditure and Capex
R&D Expenditure and Capex R&D Expenditure 1) Capex 2) in € million and in % of Sales in € million and in % of Sales +207 +160 (+14%) (+32%) 1,676 666 1,469 506 2.6% 3.2% H1 2021 H1 2022 H1 2021 H1 2022 1) R&D Costs recognized in the consolidated statement of profit and loss and the capitalized devel
Slide 14: Adjusted EBIT
Adjusted EBIT in € million and in % of Sales 1.009 Adjusted EBIT-margin at 4% 851 Result burdened by Increased R&D Expenditure to further shape Next Generation Mobility 5.2% 4.0% Upfront cost for new facilities in particular for E-Mobility H1 2021 H1 2022 August 3, 2022 | Half-Year figures as of Jun
Slide 15: Net Result after Tax
Net Result after Tax in € million and in % of Sales 851 -320 -31 -26 -102 372 -314 4.0% 1.8% 58 0.3% Adj. EBIT Purchase Restructuring M&A and Non- EBIT Financial and Net Result price allocation other Items Recurring Tax Result August 3, 2022 | Half-Year figures as of June 30, 2022 © ZF ZF Friedrichs
Slide 16: Free Cash Flow
Free Cash Flow in € million Free Cash Flow impacted by 246 -432 Lower Earnings Higher investment due to catch-up -186 effects from the previous years 30 -600 -630 Inventory build up since year-end 2021 due to H1 2021 H1 2022 Inflation Safety stocks Free Cash Flow Adjustments Adjusted Free Cash Flow
Slide 17: Gross Debt / Net Debt
Gross Debt / Net Debt in € million 13,177 Net debt increased by €1 billion due to 12,531 2,021 negative cash flow 11,156 2,424 10,107 Liquidity headroom at around €5 billion Leverage on June 30, 2022 at 3.3x Dec 31, 2021 Jun 30, 2022 Note: Gross debt = Financial liabilities ./. derivative financial
Slide 18: Balance Sheet
Balance Sheet in € million and in % of balance sheet total Equity and Assets +856 +856 Liabilities 38,359 39,215 38,359 39,215 Trade receivable 15% 17% Inventories 13% 14% Other liabilities/ Other current assets 9% 9% 66% 68% provisions Non-current assets 63% 60% 15% 8% Pension provisions 19% 24% Eq
Slide 19: Maturity Profile
Maturity Profile Bonds (w/o green) Maturity of Main Group Financings as of Jun 30, 2022 Syndicated Loans Nominal amounts in € million EIB Loan Bonded Loans Refinancing RCF on July 14th Green Bond 3.000 Bridge to SSD 3.500 RCF (undrawn) 2.208 2.187 508 Note: Excluding bilateral credit facilities 500
Slide 20: Outlook H2 2022
Outlook H2 2022 August 3, 2022 | Half-Year figures as of June 30, 2022 © ZF Friedrichshafen AG 20
Slide 21: 2022 Priorities
2022 Priorities 1 Continue to manage the manifold crisis 2 Focused investments in future-oriented technologies 3 Drive ZF’s change process August 3, 2022 | Half-Year figures as of June 30, 2022 © ZF Friedrichshafen AG 21
Slide 22: Vehicle Production 2022-2023
Vehicle Production 2022-2023 Global Pass Car & Commercial Vehicle Market <6 t. 93 94,7 93,9 88,7 -6% +2% +5% (+7) +3% (+9) 82,5 80,8 -16% 77,1 74,3 2016 2017 2018 2019 2020 2021 2022 2023 Commercial Vehicle Market >6 t. 3,65 3,74 3,56 -5% 3,44 -3% 3,41 +10% -3% -12% 3,31 3,16 (0%) (1%) 3,00 2016 201
Slide 23: 2022 Outlook Confirmed, but still with Caveat
2022 Outlook Confirmed, but still with Caveat Sales >€ 40 billion EBIT Margin* 4.5-5.5 % Free Cash Flow* € 1-1.5 billion * adjusted August 3, 2022 | Half-Year figures as of June 30, 2022 © ZF Friedrichshafen AG 23
Slide 24: Q&A
Q&A August 3, 2022 | Half-Year figures as of June 30, 2022 © ZF Friedrichshafen AG 24