Hella Gmbh & Co. Kgaa · XETR:HLE
Hella Gmbh & Co. Kgaa — H1 2023 Earnings Presentation
25 slides from Hella Gmbh & Co. Kgaa's earnings presentation, Jul 24, 2023
Slide 1: HELLA H1 2023 Results
HELLA H1 2023 Results Jan 1, 2023 – June 30, 2023 July 24 th , 2023
Slide 2: Summary
Summary 01 Achievements| Michel Favre 02 Financial Results | Bernard Schäferbarthold 03 Outlook | Michel Favre 04 Key Takeaways
Slide 3: Comparison with the first half of the calendar year 2022
After conversion of the fiscal year to the calendar year: Comparison with the first half of the calendar year 2022 General note ❯ HELLA has changed the fiscal year to the calendar year with effect from 1 January 2023 ! ❯ The first half of the fiscal year 2023 (H1 FY 2023) therefore covers the period
Slide 4: Achievements
01 Achievements
Slide 5: Strong sales momentum in H1 FY 2023 with further improvement of profitability and cash flow
Strong sales momentum in H1 FY 2023 with further improvement of profitability and cash flow Strong organic sales growth of +19.2%; all Double digit growth of Operating Income and three Business Groups growing double-digit strong improvement of Net Cash Flow ❯ Group reported sales growing +17.3% ❯ Op
Slide 6: Significant awards in H1 FY 2023, strong order intake trend continues
Significant awards in H1 FY 2023, strong order intake trend continues HELLA on track to achieve 2023 targets ❯ Lighting with global order intake for high-volume projects with core customers: • SSL / HD headlamps high-volume series orders for international premium OEMs, SOP 2024, 2025, and 2026 • Rea
Slide 7: Progress on cooperation with Forvia; continuous focus especially on cash generation
Progress on cooperation with Forvia; continuous focus especially on cash generation ❯ Cooperation with Forvia further intensified, implementation of measures on track: • IT and Indirect Purchasing in new common and jointly managed organizations • establishment of further common joint corporate funct
Slide 8: Financial Results
02 Financial Results
Slide 9: Continuation of sales growth in H1 FY 2023 based on well positioned product offering
Continuation of sales growth in H1 FY 2023 based on well positioned product offering and balanced customer portfolio ❯ Organic sales H1 FY 2023 up 19.2% close to €4.0bn, €65m negative FX in H1, organic sales Q2 up by 23.9% ❯ Double-digit organic sales growth in all three Segments, especially strong
Slide 10: Electronics with high demand for core technologies and ongoing investments in future projects
Electronics with high demand for core technologies and ongoing investments in future projects ELECTRONICS ❯ Leverage strong product portfolio in recovering markets H1 CY 2022 H1 FY 2023 • high demand for automated driving and energy management External Sales (€m) 1,349 1,526 products like radar sens
Slide 11: Strong performance in Lighting with further sales growth and breakthrough in profitability
Strong performance in Lighting with further sales growth and breakthrough in profitability LIGHTING ❯ Strong sales growth due to market leadership H1 CY 2022 H1 FY 2023 position and favorable regional mix External Sales (€m) 1,551 1,921 • strong demand from premium and mass OEMs for vs. LVP growth s
Slide 12: Life Cycle Solutions shows steady contribution with further sales growth
Life Cycle Solutions shows steady contribution with further sales growth and good operational performance LCS ❯ Sales performance driven by • successful spare parts business with growth particularly in H1 CY 2022 H1 FY 2023 Mexico, Poland and Brazil External Sales (€m) 491 546 • strong commercial ve
Slide 13: Ongoing outperformance driven by Europe and Asia/Pacific; NSA negatively impacted by FX
Ongoing outperformance driven by Europe and Asia/Pacific; NSA negatively impacted by FX effects LVP global +11.2% NSA Europe Asia/ Pacific incl. RoW GROUP Sales +17.3% 20 % 58 % 22 % of group sales of group sales of group sales Outperformance +6.1% 2,335 399 860 800 1,935 741 120 70 +20.6% 730 +16.2
Slide 14: Strong improvement of profitability with sales growth and mitigated inflation burden
Strong improvement of profitability with sales growth and mitigated inflation burden In €m H1 CY 2022 H1 FY 2023 YoY Change Sales 3,406 3,995 + 17.3% ❯ Gross Profit margin up 230bps with higher volumes and COGS (2,633) (2,997) + 13.8% pass-though of price increases to mitigate inflation burden ❯ R&D
Slide 15: NCF improvement with good business performance and expected seasonal development
NCF improvement with good business performance and expected seasonal development Net Cash Flow ❯ Net Cash Flow increased by €98m to €89m in €m and % of sales 89 • increased fund from operations • positive change in Working Capital due to higher +98 2.2% payables; inventories still increasing, mainly
Slide 16: Outlook
03 Outlook
Slide 17: HELLA is expecting a market development to around 86m vehicles in 2023
HELLA is expecting a market development to around 86m vehicles in 2023 Expected Global Light Vehicle production Expected Global Light Vehicle production in million units, IHS Markit per July 2023 in million units, IHS Markit per July 2023 +5.3% HELLA sales outlook remains unchanged due to customer
Slide 18: FY 2023 outlook confirmed
FY 2023 outlook confirmed Outlook for the period January 1, 2023, to December 31, 2023 Based on an assumed LVP of around 86million vehicles for the period Consolidated sales In a range of around € 8.0 to 8.5 billion Currency and portfolio adjusted expected to be around the midpoint of the forecast r
Slide 19: Key Takeaways
04 Key Takeaways
Slide 20: Key Takeaways
Key Takeaways ❯ Strong performance in H1 FY 2023 in line with communicated expectations • Electronics and Lighting outperforming the market, all Business Groups record double-digit sales growth • strong outperformance in Europe and Asia; Americas negatively impacted by FX effects • step-up in group
Slide 21: Appendices
APPENDICES
Slide 22: Upcoming events CY 2023
Upcoming events CY 2023 November 7, 2023 9M FY 2023 November 28, 2023 HELLA Analyst Meeting, Frankfurt
Slide 23: LVP production and Group sales per region
LVP production and Group sales per region H1 CY 2022 H1 FY 2023 HELLA Group sales Worldwide 3,406 3,995 in €m 1,935 2,335 Europe +20.6% 730 800 North & South America +9.6% 741 860 Asia/Pacific & Rest of World +16.2% Light vehicle production Worldwide 38,933 43,300 in 1.000 units 7,886 9,157 Europe +
Slide 24: Disclaimer
Disclaimer o This document was prepared with reasonable care. Certain numerical data, financial information and market data in this presentation have been rounded in accordance with commercial rounding. However, no responsibility can be assumed for the correctness of the provided information. In add
Slide 25: -ORVIA
-ORVIA
HELLA GmbH & Co. KGaA — H1 2023 Earnings Presentation on 6ix