Schaeffler Ag · XETR:SHA0
Schaeffler — Q1 2015 Earnings Presentation
19 slides from Schaeffler's earnings presentation, May 21, 2015
Slide 1: Mobility for tomorrow: Quality. Technology. Innovation.
Mobility for tomorrow Quality. Technology. Innovation. Dr. Ulrich Hauck Chief Financial Officer Schaeffler AG Q1 2015 Results Conference Call May 21, 2015
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. The words "anticipate", "assume", "believe", "estimate", "expect", "intend", "may", "plan", "project", "should" and similar expressions are used to identify forward-looking statements. Forward-looking statements are statements that ar
Slide 3: Agenda
Agenda 1 Highlights 2 Financials 3 Outlook Page 3 Schaeffler Group · Q1 2015 Results · May 21, 2015
Slide 4: A good start into the year
1 Highlights A good start into the year Strong growth continued – Q1 2015 Sales EUR 3,345 mn (+12.4%); FX adjusted sales increased by 5.3% Both divisions contributed – Automotive sales growth of 13.5%; Industrial sales growth of 9.3% Profitability in line with target range – Q1 2015 EBIT margin of 1
Slide 5: Overview results
2 Financials Overview results Q1 2014 Q1 2015 ∆ in EUR mn in EUR mn +12.4% Sales 2,976 3,345 (+5.3% FX-adjusted) EBITDA 572 604 +5.6% EBITDA margin 19.2% 18.1% -1.1%-pts. EBIT 418 434 +3.8% EBIT margin 14.0% 13.0% -1.0%-pts. Net income1) 220 167 EUR -53 mn Capex 155 244 EUR +89 mn Capex ratio 5.2% 7
Slide 6: Sales growth excluding FX effects +5.3%
2 Financials Sales growth excluding FX effects +5.3% Sales Q1 2015 sales by region1) in EUR mn Y-o-y growth (w/o FX effects) Asia/Pacific +12.4%1) +7% (-5%) 3,345 3,100 Greater China 9% 2,976 3,014 3,034 +40% (+17%) 14% 55% Americas 22% Europe +26% (+12%) +4% (+3%) 12,124 1) Market view (= location
Slide 7: Automotive division with strong growth of +13.5%
2 Financials Automotive division with strong growth of +13.5% Sales development Automotive (w/o FX effects) Sales split Y-o-y growth (w/o FX effects) Europe Americas Automotive Aftermarket +17% +7% (+5%) 16% +4% Chassis Systems +3% 43% +9% (+3%) 15% Transmission Systems -1% +15% (+7%) Engine Systems
Slide 8: Industrial division with growth of +9.3%
2 Financials Industrial division with growth of +9.3% Sales development Industrial Key aspects D excl. in EUR mn Q1 2014 Q1 2015 D FX effects § Industrial OEM business with mixed development across Industrial sectors 492 537 +9.1% +1.2% Applications § Mobility: FX-adjusted sales slightly up Industri
Slide 9: Earnings quality in-line with target range
2 Financials Earnings quality in-line with target range EBIT Key aspects in EUR mn § EBIT margin down y-o-y by 1%-point due to: 3.8% § Increase in R&D and selling expenses 429 434 418 383 § Unfavorable mix-effects in Industrial division 293 § Small one-off items EBIT by division 1,523 D Q1 Q1 D Q1 Q
Slide 10: Financial result impacted by one-off and valuation effects
2 Financials Financial result impacted by one-off and valuation effects Financial result1) Financial result excl. one-offs and valuation effects1) in EUR mn in EUR mn Q1 in EUR mn 2015 Cash interest 34 Accrued interest 49 +76 mn Other -7 375 TOTAL 76 +84 176 176 122 100 76 620 -184 23 Q1 Non-cash On
Slide 11: Net income impacted by one-off effects
2 Financials Net income impacted by one-off effects Net income1) Reconciliation of net income in EUR mn -24.1% 229 220 220 215 16 76 167 167 7 6542) -10 Q1 2014 Δ EBIT Δ Financial Δ Taxes Q1 2015 Result Q1 Q2 Q3 Q4 Q1 2014 2015 1) Attributable to shareholders of the parent company 2) Includes refina
Slide 12: Operating cash flow up
2 Financials Operating cash flow up Operating cash flow Key aspects in EUR mn 490 439 § Operating cash flow up y-o-y due to: 184 134 § Higher EBITDA 900 § Lower interest payments -1631) § Less cash-effective build-up of Q1 Q2 Q3 Q4 Q1 Working Capital 2014 2015 Working Capital Inventories Key aspects
Slide 13: Free cash flow down – Strong increase in capex
2 Financials Free cash flow down – Strong increase in capex Free cash flow Capex2) in EUR mn in EUR mn 357 238 135 244 202 48 155 143 -19 -60 857 -3061) Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2014 2015 2014 2015 In % of sales 5.2 4.7 6.7 11.5 7.3 7.1 1) Includes antitrust fine of EUR 371 mn 2) Cash view Page
Slide 14: FX related increase in net debt
2 Financials FX related increase in net debt Net financial debt1) Change in net financial debt¹) in EUR mn in EUR mn 6,190 6,190 27 5,755 5,768 5,778 27 5,529 358 5,778 2.6 2.7 2.6 2.7 2.7 2.6 2.8 Q1 Q2 Q3 Q4 Q1 Q4 2014 FX effect Δ Cash Other Q1 2015 Position 2014 2015 Gross 5,751 6,226 6,443 6,414
Slide 15: Guidance 2015 confirmed
3 Outlook Guidance 2015 confirmed Growth Profitability Sales growth 5-7%1) EBIT margin 12-13% Sustainably Capex 6-8% of sales Free cash flow positive 1) At constant currency Quality Innovation Quality policy Further improve R&D expenses 5% of sales Maintain leading Employees ~ 3,000 new jobs Innovat
Slide 16: Schaeffler IR contact
Schaeffler IR contact Investor Relations Financial calendar 2015 phone: + 49 9132 82 4440 Q1 2015 Results: 21 May 2015 fax: + 49 9132 82 4444 Q2 2015 Results: 20 August 2015 ir@schaeffler.com Q3 2015 Results: 19 November 2015 www.schaeffler-group.com/ir Page 16 Schaeffler Group · Q1 2015 Results · M
Slide 17: Sales per division
Backup Sales per division Sales Automotive Sales Industrial in EUR mn in EUR mn +9.3%1) +13.5%1) 835 2,510 2,316 803 2,212 2,227 2,231 787 784 764 8,986 3,138 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2014 2015 2014 2015 1) Includes positive FX effects of 6.8% 1) Includes positive FX effects of 8.0% Page 17 Sch
Slide 18: EBIT per division
Backup EBIT per division EBIT Automotive EBIT Industrial in EUR mn in EUR mn +4.9% 342 326 319 301 292 0.0% 110 92 92 82 1,238 285 1 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2014 2015 2014 2015 EBIT margin in % EBIT margin in % 14.7 13.5 14.3 12.6 13.6 12.0 10.4 13.7 0.1 11.0 13.8 9.1 Page 18 Schaeffler Group
Slide 19: Maturity profile and financing structure
Backup Maturity profile and financing structure Maturity profile (as of May 2015)1) Financing structure (as of May 2015) in EUR mn2) Debt instrument Nominal Interest Maturity Rating Ø Weighted maturity: ~ 6 years Loans: Senior Term Loan B (EUR) 750 E2)+3.50% May-20 Ba2 /BB- 2,358 Senior Term Loan B