Schaeffler Ag · XETR:SHA0
Schaeffler — Non-Deal Roadshow (September 2023)
100 slides from Schaeffler's roadshow presentation, Sep 12, 2023
Slide 1: Schaeffler AG Bank of America US Roadshow
Schaeffler AG Bank of America US Roadshow September 2023 PUBLIC
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. The words “anticipate”, This presentation is intended to provide a general overview of Schaeffler Group’s “assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “project”, “should” and business and does not purport to dea
Slide 3: September 2023 Schaeffler AG - US Roadshow
September 2023 Schaeffler AG - US Roadshow 3 PUBLIC
Slide 4: Agenda
1 Schaeffler Group – The Motion Technology Company 2 Region Americas – Deep dive 3 Financials – Q2 2023, FY 2023 Guidance upgrade, Current trading update September 2023 Schaeffler AG - US Roadshow 4 PUBLIC
Slide 5: Schaeffler Group key figures – The Motion Technology Company
1 SCHAEFFLER GROUP Schaeffler Group key figures – The Motion Technology Company Strong customer base with Approximately approx.11,800 EUR 15.8 bn 1,800 FY 2022 Sales1 customers patents filed in 2021 Approximately 76 plants 1.1 mn tons of processed steel p.a. 20 R&D centers Around 200 locations in mo
Slide 6: Schaeffler Group at a glance – The Motion Technology Company
1 SCHAEFFLER GROUP Schaeffler Group at a glance – The Motion Technology Company 3 Divisions 4 Regions in % of FY 2022 • 3 Divisions serving attractive, in % of FY 2022 sizeable Automotive and Industrial EUR 1,087 mn1 Europe markets with secular growth Asia / Pacific Industrial +11.6% 2 42% 13% 27% •
Slide 7: Schaeffler Group global reach – Plants and R&D centers
1 SCHAEFFLER GROUP Schaeffler Group global reach – Plants and R&D centers in the Region for the Region Europe Germany Great Britain Russia South Korea Bühl Sheffield Canada Ulyanovsk1 Ansan Erlangen Stratford Gunzenhausen Italy Changwon Momo Herzogenaurach Jeonju Hirschaid Portugal Höchstadt Caldas
Slide 8: Our origin – Significant milestones in our company history
2016 1 SCHAEFFLER GROUP Our origin – Significant milestones in our company history 1950-1990 1946 1950-1990 1996 2015 2020 2021 Dr. Wilhelm and Global expansion: M.-E. Schaeffler-Thumann and her son IPO of We pioneer motion – Start of Volume production Dr.-Ing. E.h. Georg Plants opened in G. F. W. S
Slide 9: Stable values – The motivation behind our actions
1 SCHAEFFLER GROUP Stable values – The motivation behind our actions SUSTAINABLE INNOVATIVE We assume responsibility for the As pioneers we know: future of Schaeffler Group and For (almost) every problem coming generations. With there is a solution. continuity and a long-term view. If not, we will c
Slide 10: Our Executive Board – A strong management team
1 SCHAEFFLER GROUP Our Executive Board – A strong management team Executive Board Klaus Claus Andreas Corinna Jens Dr. Stefan Uwe Matthias Rosenfeld Bauer Schick Schittenhelm1 Schüler Spindler2 Wagner Zink CEO Chief Financial Chief Operating Chief Human CEO Automotive CEO Industrial Chief Technology
Slide 11: Our Evolution – From Bearings Manufacturer to Motion Technology Company
1 SCHAEFFLER GROUP Our Evolution – From our heritage as a Bearings Manufacturer to “The Motion Technology Company” Where we Motion Technology go to 3 Company Automotive & Sustain Repair & Monitoring 2 Industrial Supplier motion Services Energize Hydrogen Stacks & motion Plates Bearings 1 Drive E-Mot
Slide 12: Product & Service Offering – Motion as the connecting element
1 SCHAEFFLER GROUP Product & Service Offering – Motion as the connecting element Product Families Product & Service Offering Key Aspects Sustain Repair & Monitoring • Schaeffler product & service motion Services portfolio categorized into 6 Product Families Energize Hydrogen Stacks & • All Product F
Slide 13: Attractive end markets – 3 Divisions serve 10 customer sectors
1 SCHAEFFLER GROUP Schaeffler Group attractive end markets – Our 3 Divisions serve 10 customer sectors Cars & Light Two-wheelers Truck & Bus Off-road Rail Commercial Vehicles Aerospace Raw Materials Industrial Automation Power Transmission Wind September 2023 Schaeffler AG - US Roadshow 13 PUBLIC
Slide 14: High-touch customer relationship – Global and diversified customer base
1 SCHAEFFLER GROUP Schaeffler Group high-touch customer relationship – Serving a global and diversified Customer base worldwide September 2023 Schaeffler AG - US Roadshow Schaeffler AG - US Roadshow 14 PUBLIC
Slide 15: Core competencies – Best-in-class manufacturing technologies
1 SCHAEFFLER GROUP Schaeffler Group core competencies – Further leveraging our best-in-class manufacturing technologies Our manufacturing technologies Our key strengths Large forging Cold forming Heat treatment Innovation Superior Quality EUR 1,087 mn1 +11.6%2 + Combining 4 USPs to a unique strength
Slide 16: Synergistic potential – Scope and scale from Automotive to Industrial
1 SCHAEFFLER GROUP Schaeffler Group synergistic potential – Benefitting from scope and scale from Automotive to Industrial Scope of interdependencies Technology transfer Economies of scale • Same production technologies • Dedicated Innovation Clusters • Joint procurement and supply chain management
Slide 17: Roadmap 2025 – We pioneer motion
1 SCHAEFFLER GROUP Schaeffler Group Roadmap 2025 – We pioneer motion Our Roadmap 2025 Transform Focus Execute While adapting our structures & optimizing our footprint September 2023 Schaeffler AG - US Roadshow 17 PUBLIC
Slide 18: Roadmap 2025 – Driving innovation, harnessing growth across 3 Divisions
1 SCHAEFFLER GROUP Schaeffler Group Roadmap 2025 – Driving innovation, harnessing growth, creating value across 3 Divisions Automotive Technologies Automotive Aftermarket Industrial Mature New Driving innovation with systems and services Platform ▪ One-stop-shop business ▪ Consolidated distribution
Slide 19: Automotive Technologies – Driving the transition to innovative propulsion
1 SCHAEFFLER GROUP Automotive Technologies – Driving the transition to innovative propulsion and chassis technologies Sales in EUR bn Engine & E-Mobility 9.5 Transmission Europe Greater China 8.4 54% 14% 36% 25% of sales in 2022 of sales in 2022 of sales in 2022 of sales in 2022 1 2021 2022 EBIT mar
Slide 20: Automotive Technologies – Portfolio transformation from Mature to New
1 SCHAEFFLER GROUP Automotive Technologies – Driving the portfolio transformation from Mature to New, differentiating steering Mature Business New Business Engine & Bearings E-Mobility Chassis Transmission 28% Systems EUR 5,152 mn EUR 2,624 mn 14% EUR 1,349 mn EUR 375 mn +4.5% +4.6% +24.2% +28.4% Sa
Slide 21: Automotive Technologies – Electrification further accelerating
1 SCHAEFFLER GROUP Automotive Technologies – Electrification is further accelerating, as reflected in our Vision Powertrain Vision Powertrain – NEW ICE HEV xEV Global Light Vehicle Production 10% Climate targets towards zero 20% emission in major markets 50% 30% 40% 88% HEV as transition technology
Slide 22: Automotive Technologies – Customer landscape increasingly dynamic
1 SCHAEFFLER GROUP Automotive Technologies – Customer landscape increasingly dynamic and offering great opportunities Europe 1 4 36% of Sales in 2022 Greater China 1 2 4 25% 25% 2 3 4 of Sales in 2022 of Sales in 2022 Americas 1 Asia Pacific 1 4 14% of Sales in 2022 Market Financial Automotive penet
Slide 23: Automotive Technologies – Innovative components & systems
1 SCHAEFFLER GROUP Automotive Technologies – Delivering innovative components & systems for powertrain & chassis Mature Business New Business Engine & Bearings E-Mobility Chassis Systems Transmission Powertrain-specific Powertrain-agnostic Powertrain-specific Powertrain-agnostic Combined UniAir eRoc
Slide 24: Example #1 – New Order Intake in New Business by Established OEM
1 SCHAEFFLER GROUP Example #1 – New Order Intake in New Business by Established OEM OI Mature Business New Business approx. USD 0.5 bn 1 Mechatr. Systems Established OEMs 2 Sub- & GROW Mechanical Systems Mechanical Components with 3 System Know-How New Players 4 Mechanical Components Schaeffler exte
Slide 25: Example #2 – New Order Intake in Mature Business for HEV
1 SCHAEFFLER GROUP Example #2 – New Order Intake in Mature Business for HEV applications by Established OEM OI Mature Business New Business approx. USD 0.3 bn 1 Mechatr. Systems Established OEMs 2 Sub- & Mechanical Systems Mechanical Components with 3 System Know-How New Players 4 Mechanical Compone
Slide 26: Example #3 – Embedded software meets precision components
1 SCHAEFFLER GROUP Example #3 – High capability in embedded software (customer) meets high capability in precision components and mechatronic systems (Schaeffler) Mature Business New Business 1 Mechatr. Systems Established OEMs 2 Sub- & GROW Mechanical Systems Mechanical Components with 3 System Kno
Slide 27: Example #4 – Embedded software meets precision components
1 SCHAEFFLER GROUP Example #4 – High capability in embedded software (customer) meets high capability in precision components and mechatronic systems (Schaeffler) OI Mature Business New Business approx. EUR 0.5 bn 1 Mechatr. Systems Established OEMs + 2 Sub- & GROW Mechanical Systems Mechanical Comp
Slide 28: Example #5 – Order Intake for e-Axle systems
1 SCHAEFFLER GROUP Example #5 – Order Intake for e-Axle systems received from established and new OEMs OI Mature Business New Business approx. EUR 2.4 bn 2022 & 2023 Q1 1 Mechatr. Systems Established OEMs 2 Sub- & GROW Mechanical Systems Mechanical Components with 3 System Know-How New Players 4 Mec
Slide 29: Example #6 – First Order Intake for battery cooling
1 SCHAEFFLER GROUP Example #6 – First Order Intake for battery cooling and expansion into the refrigerant market OI Mature Business New Business approx. EUR 0.6 bn 2022 & 2023 Q1 1 Mechatr. Systems Established OEMs 2 Sub- & GROW Mechanical Systems Mechanical Components with 3 System Know-How New Pla
Slide 30: Example #7 – How we win in Greater China
1 SCHAEFFLER GROUP Example #7 – How we win in Greater China – Harnessing growth in a diversified customer base with components and systems with our excellent local team Mature Business New Business 1 Mechatr. Systems Established OEMs 2 Sub- & Mechanical Systems Mechanical Components with 3 System Kn
Slide 31: Automotive Technologies transformation – How we fund our own growth
1 SCHAEFFLER GROUP Automotive Technologies transformation - How we fund our own growth and create value Mature Business Order Intake2 FY 2019 - 2022 New Business Products for Products for Powertrain Powertrain Electrified ICE and HEV agnostic1 products agnostic1 products Powertrains 35% EV HEV Prior
Slide 32: Automotive Aftermarket – Leading supplier of aftermarket components
1 SCHAEFFLER GROUP Automotive Aftermarket – Leading supplier of aftermarket components, systems, services Sales Independent in EUR bn Others Aftermarket 8% of sales (IAM) Europe Greater China 78% of sales 2.0 67% 6% Original 1.8 Equipment Services of sales in 2022 of sales in 2022 (OES) 14% of sales
Slide 33: Automotive Aftermarket – Capturing new growth opportunities
1 SCHAEFFLER GROUP Automotive Aftermarket – Capturing new growth opportunities Growth drivers Growth enabler We realize untapped potential Share of Wallet at current customer base We offer advanced digital Digital services to improve customer Competence experience We upgrade components to + Solution
Slide 34: Automotive Aftermarket – REPXPERT Remote Support
1 SCHAEFFLER GROUP Automotive Aftermarket – REPXPERT Remote Support is the next level digital service for garages Conventional technical support methods reach their limitations when it comes to complex, demanding vehicle repairs • Service technicians increasingly report difficulties in resolving tec
Slide 35: Automotive Aftermarket – First E-Axle repair solution
1 SCHAEFFLER GROUP Automotive Aftermarket – First E-Axle repair solution launched at Automechanika Key aspects • Repair system for gearbox application of E- Axle (BEV/HEV) • Pilot application for Volkswagen e-Golf VII VW e-Golf VII • Unique solution in the Aftermarket – First repair solution for E-A
Slide 36: Industrial – Leading global component and system supplier
1 SCHAEFFLER GROUP Industrial – Leading global component and system supplier Sales in EUR bn Europe Greater China 4.3 41% 27% 3.6 Linear of sales in 2022 of sales in 2022 Bearings Technology Broad range 2021 2022 of products EBIT margin bsi Mechanical Systems Mechatronic Systems 11.8% 11.7% Americas
Slide 37: Industrial – Diversified portfolio with significant growth potential
1 SCHAEFFLER GROUP Industrial – Diversified portfolio with significant growth potential Market clusters Sector clusters Industrial Distribution share of total sales: ~30% Renewables 18% EUR 793 mn +5.6%1 Hydrogen Wind (as new sector cluster) Transportation 30% & Mobility EUR 1,271 mn +11.9%1 Aerospa
Slide 38: Example #1 Renewables – Strong market fundamentals
1 SCHAEFFLER GROUP Example # 1 Renewables – Strong fundamentals of the market, confirming growth potential Market Drivers Renewables Growing demand for electricity and local energy resources Ambitious Climate Targets combined with rising CO2-cost Wind energy Hydrogen • Schaeffler bearings in every ~
Slide 39: Example #2 Renewables – Hydrogen across divisions
1 SCHAEFFLER GROUP Example # 2 Renewables – Hydrogen spanning across divisions Automotive Technologies and Industrial Market Drivers Renewables Growing demand for electricity and local energy resources Siemens Energy Bipolar plate + Electrolyzers Ambitious Climate Targets combined with Bipolar plate
Slide 40: Example #3 Transportation & Mobility – Diversified products and services
1 SCHAEFFLER GROUP Example # 3 Transportation & Mobility – Well positioned with diversified products and services Market Drivers Transportation & Mobility Increasing passenger mobility and freight transportation Transformation to E-Mobility and electrification Comprehensive portfolio Circular econom
Slide 41: Example #4 Machinery & Materials – Demand for sustainable solutions
1 SCHAEFFLER GROUP Example # 4 Machinery & Materials – Growing demand for sustainable, resource-saving solutions Market Drivers Machinery & Materials Growing demand for aggregates used for renewable energies Ongoing infrastructure expansion Serving multiple industries Value-adding service solutions
Slide 42: Example #5 Industrial Automation – Digitization and automatization
1 SCHAEFFLER GROUP Example # 5 Industrial Automation – Harnessing the rapidly increasing digitization and automatization Market Drivers Industrial Automation Increasing digitization and automatization of production Increasing cost pressure Innovative products Robotics Platform strategies and standar
Slide 43: Capital Allocation Framework – Efficient and impactful use of resources
1 SCHAEFFLER GROUP Schaeffler Group Capital Allocation Framework – Driving an efficient and impactful use of resources across Divisions and in Regions KEY ASPECTS • Reinvestment Rate1 at Group level is Portfolio Management Capital Allocation the dominant logic • Reinvestment Rate for “Build” and Gro
Slide 44: Make vs Buy – M&A complements and strengthens portfolio
1 SCHAEFFLER GROUP Schaeffler Group Make vs Buy - Compelling M&A further complements and strengthens our business portfolio M&A Radar Collaborations and partnerships Automotive Technologies and Automotive Aftermarket Hydrogen Power Mechatronics electronics and systems & Electronics manufacturing 1 R
Slide 45: Value creation – Robust FCF generation and shareholder-friendly cash usage
1 SCHAEFFLER GROUP Schaeffler Group value creation – Robust FCF generation and compelling, shareholder-friendly usage of cash FCF1 generation track record Usage of Cash – Dividend, CapEx, M&A in EUR mn Dividend payout | in EUR mn EUR per common non-voting share 0.55 0.45 0.25 0.50 0.45 361 295 162 3
Slide 46: Roadmap 2025 – Mid-term targets
1 SCHAEFFLER GROUP Schaeffler Group Roadmap 2025 – Mid-term targets Mid-term targets 2025 Automotive Technologies Automotive Aftermarket Industrial Outperformance1 Constant-currency revenue growth Constant-currency revenue growth 200 to 500 bps > GDP growth > Ind. Prod. growth on average2 on average
Slide 47: Sustainability – Eight non-financial targets
1 SCHAEFFLER GROUP Schaeffler Group Sustainability – Eight non-financial targets underline our clear commitment Climate Neutral Production Renewable Energy at all Schaeffler production 100% purchased power from locations until 2030 renewable sources until 2024 Sustainable Suppliers Fresh water Suppl
Slide 48: Path to climate neutrality – Ambitious Scope targets
1 SCHAEFFLER GROUP Schaeffler Group path to climate neutrality – Ambitious Scope targets defined Long-Term Sustainability Targets KEY ASPECTS • Decarbonization as top priority • Emissions occurring in the supply chain (Scope 3 upstream): 2019 2025 2030 2035 2040 − Climate neutral from 2040 − Emissio
Slide 49: Equity Story – Creating long-term value and generating Free Cash Flow
1 SCHAEFFLER GROUP Schaeffler Group Equity Story – Delivering value creation 1 Roadmap 2025 in execution – Focus on capital allocation, portfolio management and FCF generation. Compelling usage of cash & dividend policy 2 Automotive Technologies – Conquer leadership positions in New Business for ele
Slide 50: Agenda
1 Schaeffler Group – The Motion Technology Company 2 Region Americas – Deep dive 3 Financials – Q2 2023, FY 2023 Guidance upgrade, Current trading update September 2023 Schaeffler AG - US Roadshow 50 PUBLIC
Slide 51: Overview – Region Americas at a glance
2 REGION AMERICAS Overview – Region Americas at a glance 22.3% 158 Brazil contribution to Patents in 2022 Sorocaba global turnover in 2022 Canada Stratford Mexico Huejotzingo Irapuato Puebla 11,771 698 Employees USA Students 15% of global Armada (Ewellix) Cheraw Danbury Fort Mill Division Sales Dist
Slide 52: Silicon Valley office – Connection to new players
2 REGION AMERICAS Silicon Valley office – Connection to new players Close proximity to customers Staff onsite as of December 4, 2017 Customer engagement and technical partner 1735 Technology Drive Suite 175 San Jose, CA The Wall Street Journal September 2023 Schaeffler AG - US Roadshow 52 PUBL
Slide 53: Americas – Automotive Tech future strategy
2 REGION AMERICAS Americas – Automotive Tech future strategy MOTION TECHNOLOGY AUTOMOTIVE TECH TRANSFORM INDUSTRIAL EXPAND AUTOMOTIVE AFTERMARKET COLLABORATE September 2023 Schaeffler AG - US Roadshow 53 PUBLIC
Slide 54: Automotive Technologies – What is taking place in the market?
2 REGION AMERICAS Automotive Technologies – What is taking place in the market? Pickup Trucks Traditional New Mobility Source: Wards Automotive SUVs Pass Cars Vehicle Traditional OEMs, with both ICE and EV ✓ ✓ manufacturers EV only ✓ ✓ ✓ New Players Recognized non-automotive brands ✓ ✓ New entrants
Slide 55: Pickup truck / SUV – Powertrain transformation
2 REGION AMERICAS Pickup truck / SUV – Powertrain transformation September 2023 Schaeffler AG - US Roadshow 55 PUBLIC
Slide 56: Electrification – SUV / Pickup truck
2 REGION AMERICAS Electrification – SUV / Pickup truck HEV BEV, REEV REEV SOP: 2018 SOP: 2026 SOP: 2025 September 2023 Schaeffler AG - US Roadshow 56 PUBLIC
Slide 57: Technology recognition – Ford World Excellence Awards and Pace Awards
2 REGION AMERICAS Technology recognition – Ford World Excellence Awards and Pace Awards September 2023 Schaeffler AG - US Roadshow 57 PUBLIC
Slide 58: Beam axle – Production hardware
2 REGION AMERICAS Beam axle – Production hardware September 2023 Schaeffler AG - US Roadshow 58 PUBLIC
Slide 59: Heavy Duty Pickup Truck – Content growth
2 REGION AMERICAS Heavy Duty Pickup Truck – Content growth Torque Converter + Bearings Rocker Arm + VCT Beam E-Axle AX KL HK KZK BZ September 2023 Schaeffler AG - US Roadshow 59 PUBLIC
Slide 60: Electric Vehicle – Innovation
2 REGION AMERICAS Electric Vehicle – Innovation Wheelbase Aero Drag Skateboard | Dry Production September 2023 Schaeffler AG - US Roadshow 60 PUBLIC
Slide 61: Intelligent rear wheel steering – Production project
2 REGION AMERICAS Intelligent rear wheel steering – Production project Wheelbase • Customer: EV only • Application: EV truck • SOP: 2024 September 2023 Schaeffler AG - US Roadshow 61 PUBLIC
Slide 62: Demonstrator – Ride Height Actuator
2 REGION AMERICAS Demonstrator – Ride Height Actuator xxx Ride Height Actuator • 4-corner adjustment, both lift and lower functions • Demonstration planned September 2023 Schaeffler AG - US Roadshow 62 PUBLIC
Slide 63: New Mobility – Vehicle performance transformation
2 REGION AMERICAS New Mobility – Vehicle performance transformation Safety Comfort Performance | Off-Road September 2023 Schaeffler AG - US Roadshow 63 PUBLIC
Slide 64: New mobility – Battery technology
2 REGION AMERICAS New mobility – Battery technology September 2023 Schaeffler AG - US Roadshow 64 PUBLIC
Slide 65: Americas – Industrial future strategy
2 REGION AMERICAS Americas – Industrial future strategy MOTION TECHNOLOGY AUTOMOTIVE TECH TRANSFORM INDUSTRIAL EXPAND AUTOMOTIVE AFTERMARKET COLLABORATE September 2023 Schaeffler AG - US Roadshow 65 PUBLIC
Slide 66: Industrial – Electrification + Automation
2 REGION AMERICAS Industrial – Electrification + Automation Motion Technology E-drives Performance Automation New Mobility September 2023 Schaeffler AG - US Roadshow 66 PUBLIC
Slide 67: Industrial – Electrification
2 REGION AMERICAS Industrial – Electrification • E-drive for offroad application • SOP 2026 September 2023 Schaeffler AG - US Roadshow 67 PUBLIC
Slide 68: Industrial – Automation
2 REGION AMERICAS Industrial – Automation • Rotary actuator for dynamic boat stabilization system • Highly dynamic motion • Smart actuation • SOP: 2022 September 2023 Schaeffler AG - US Roadshow 68 PUBLIC
Slide 69: Americas – Automotive Aftermarket future strategy
2 REGION AMERICAS Americas – Automotive Aftermarket future strategy MOTION TECHNOLOGY AUTOMOTIVE TECH TRANSFORM INDUSTRIAL EXPAND AUTOMOTIVE AFTERMARKET COLLABORATE September 2023 Schaeffler AG - US Roadshow 69 PUBLIC
Slide 70: Automotive Aftermarket – Automotive Technology collaboration
2 REGION AMERICAS Automotive Aftermarket – Automotive Technology collaboration Expansion of product portfolio • First-to-market in Americas North: Schaeffler Torque Converter - efficient, innovative and unique: • 12 base designs covering 25 transmissions • Industry SKUs consolidated by >50% • Addres
Slide 71: Automotive Aftermarket – New life
2 REGION AMERICAS Automotive Aftermarket – New life Schaeffler Automotive Aftermarket well positioned for future growth September 2023 Schaeffler AG - US Roadshow 71 PUBLIC
Slide 72: Americas – Future strategy
2 REGION AMERICAS Americas – Future strategy MOTION TECHNOLOGY AUTOMOTIVE TECH TRANSFORM INDUSTRIAL EXPAND AUTOMOTIVE AFTERMARKET COLLABORATE September 2023 Schaeffler AG - US Roadshow 72 PUBLIC
Slide 73: Agenda
1 Schaeffler Group – The Motion Technology Company 2 Region Americas – Deep dive 3 Financials – Q2 2023, FY 2023 Guidance upgrade, Current trading update September 2023 Schaeffler AG - US Roadshow 73 PUBLIC
Slide 74: Robust Q2, Group guidance raised in August for FY 2023
3 FINANCIALS Schaeffler Group – Robust Q2, Group guidance raised in August for FY 2023 Key messages Q2 2023 Sales growth1 Q2 Gross Margin Q2 Q2 Sales1 +9.8% – All divisions and regions growing driven 1 by volumes in the Automotive divisions and by continued +9.8% 21.8% favourable pricing in all Q2 G
Slide 75: Sales Performance Q2 2023 – Growth across all divisions and regions
3 FINANCIALS Sales Performance Q2 2023 – Growth across all divisions and regions Automotive Automotive Industrial Technologies Aftermarket Q2 2023 1 % of Group Region Growth Sales 59% 14% 27% Europe 45% +14.5% +5.1% +8.1% +10.8% Americas 22% +1.6% +12.5% +15.5% +5.9% Greater 20% +15.2% +59.1% +4.2%
Slide 76: Schaeffler Group Q2 2023 – Highlights and lowlights
3 FINANCIALS Schaeffler Group Q2 2023 – Highlights and lowlights • Automotive Technologies solid margin • Automotive Technologies Outperformance Portfolio strategy paying off – Mature Business Sales growth in Americas and China below market performance strength in H1 continues to fuel the due to pro
Slide 77: Automotive Technologies – Q2 double-digit sales growth, solid EBIT margin
3 FINANCIALS Automotive Technologies – Q2 with double-digit sales growth1, solid EBIT margin2 driven by scale effects and structural improvements Sales EBIT2 KEY ASPECTS in EUR mn in EUR mn Sales growth1 of +10.7% driven by all business divisions and regions; +10.7%1 +8.3%1 by price and volume Sales
Slide 78: Q2 2023 Automotive Technologies – EBIT margin significantly up
3 FINANCIALS Q2 2023 Automotive Technologies – Double-digit sales growth1, EBIT margin2 significantly up Sales by business division yoy growth Order Intake4 in EUR bn Q2 2022 Q2 2023 ∆1 Thereof E-Mobility 293 296 +3.6% 2.7 3.2 5.0 1.0 E-Mobility Engine & Transmission 1,212 1,318 +11.2% Bearings 631
Slide 79: Automotive Aftermarket – Q2 double-digit growth, very strong EBIT margin
3 FINANCIALS Automotive Aftermarket – Q2 with double-digit sales growth1, very strong EBIT margin2 Sales EBIT2 KEY ASPECTS in EUR mn in EUR mn Double-digit sales growth1 driven +17.6%1 by continued strong demand, +10.2%1 further implementation of price measures and improved logistical 549 1,131 perf
Slide 80: Automotive Aftermarket – Double-digit sales growth, very strong EBIT margin
3 FINANCIALS Automotive Aftermarket – Double-digit sales growth1, very strong EBIT margin5 Sales by region yoy growth EBIT5 Q2 2022 vs. Q2 2023 in EUR mn Q2 2022 Q2 2023 ∆1 Europe 337 354 +5.1% Americas 110 121 +12.5% +25 +6 89 0 Greater China 26 38 +59.1% Asia/Pacific -6 0 34 37 +16.3% 64 Total 506
Slide 81: Industrial – Q2 positive sales growth, EBIT margin reduced
3 FINANCIALS Industrial – Q2 with positive sales growth1, EBIT margin2 reduced – Countermeasures initiated Sales EBIT2 KEY ASPECTS in EUR mn in EUR mn Sales growth largely driven by Ewellix acquisition, organic growth +7.9%1 +10.6%1 in Q2 +2.3%1 2,237 -13 mn All regions with positive growth led 1,10
Slide 82: Industrial – Organic growth slowing, EBIT margin lower
3 FINANCIALS Industrial – Organic growth slowing, EBIT margin2 significantly lower yoy Sales by region yoy growth EBIT2 Q2 2022 vs. Q2 2023 in EUR mn Q2 2022 Q2 2023 ∆1 Europe 445 481 +8.1% Americas 182 203 +15.5% 125 Greater China 275 265 +4.2% +14 -3 -5 Asia/Pacific 160 157 +4.9% 97 Total 1,062 1,
Slide 83: Industrial – Orderbook indicates headwinds in H2
3 FINANCIALS Industrial – Orderbook indicates headwinds in H2, investments in new business fields and growth areas continued Orderbook1, 2 3-month Orderbook 3M1 Sales3 yoy growth % 40 30 20 10 0 -10 -20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022
Slide 84: Capital allocation – Continued prioritization of Capex for growth
3 FINANCIALS Capital allocation – Continued prioritization of Capex for growth business Investment1 allocation KEY ASPECTS in EUR mn • Reinvestment Rate Target: Continued prioritization of Industrial FY 2021 FY 2022 Q2 2022 Q2 2023 H1 2023 division and BD E-Mobility; clearly <1.0 in BD Bearings and
Slide 85: Gross Profit – Pricing and volume effects compensated higher costs
3 FINANCIALS Gross Profit – Positive pricing and volume effects compensated higher productions costs and unfavourable FX Gross Profit Q2 2022 vs. Q2 2023 KEY ASPECTS in EUR mn • Pricing: Sustained positive pricing effect across all divisions • Volumes: Positive volume effects driven by Automotive di
Slide 86: Overhead costs – Overhead cost ratio decreased
3 FINANCIALS Overhead costs – Overhead cost ratio decreased based on volume related fixed cost absorption Overhead costs KEY ASPECTS in EUR mn +1.8% • R&D: Stable development of R&D expenses 648 666 • Selling expenses: Increase due to Ewellix and higher volumes 622 628 633 604 particularly in Automo
Slide 87: EBIT margin – Robust Group margin, heterogenous divisions
3 FINANCIALS EBIT margin1 – Robust Group margin with heterogenous development across divisions EBIT1 KEY ASPECTS in EUR mn +EUR 89 mn • Automotive Technologies: EBIT margin1 improved yoy, driven by scale effects and structural improvements 355 336 • Automotive Aftermarket: EBIT margin1 continued to
Slide 88: Net Income – EPS at EUR 0.22, ROCE reached 13.2%
3 FINANCIALS Net Income1 – EPS² at EUR 0.22, ROCE³ reached 13.2% Net income1 KEY ASPECTS in EUR mn • Q2 2023 Net income1 higher driven by better EBIT, but impacted +25 mn by higher interest on financial debt from Ewellix acquisition 169 • ROCE³ and Schaeffler Value Added4 sequentially improved 136 1
Slide 89: FCF – Positive Q2 development driven by higher EBITDA
3 FINANCIALS FCF – Positive Q2 development driven by higher EBITDA and effective Working Capital management Free Cash Flow before M&A1 in EUR mn Reconciliation Q2 2023 in EUR mn 531 +9 +322 mn 240 244 -198 103 -9 14 -99 103 -131 -73 EBITDA ∆ Net Capex Net Interest Taxes Others FCF -219 Q2 2023 Worki
Slide 90: Net debt of EUR 3.2 bn – Leverage ratio at 1.5x
3 FINANCIALS Net debt of EUR 3.2 bn – Leverage ratio at 1.5x, EUR 295 mn dividends paid in Q2 Net financial debt and Leverage ratio1 KEY ASPECTS in EUR mn 3,231 2,999 • In Q2 2023 dividend payment of EUR 295 mn for FY 2022 (payout ratio 48%) 2,552 2,331 2,235 1,992 • Leverage ratio increase in Q1 du
Slide 91: Market assumptions changed – Automotive raised, Industrial lowered
3 FINANCIALS Market assumptions changed – Automotive Technologies market expectations raised, Industrial lowered Automotive Technologies – Global LVP1 2023 Automotive Aftermarket – Global LV Parc3 Industrial – Industrial Production4 Up to 10.3% 82.3 86.7 85.6 5.2% World 3.2% 38.9 43.4 43.3 43.4 2.6%
Slide 92: FY 2023 Guidance updated
3 FINANCIALS FY 2023 Guidance updated – Increased for Group and Automotive divisions, reduced for Industrial FY 2023 Guidance Schaeffler Group Automotive Technologies Automotive Aftermarket Industrial Guidance Guidance Guidance Guidance FY 20231 FY 2023 FY 2023 FY 2023 Outperformance Sales 5 – 8% 10
Slide 93: Current Trading Update – FY 2023 Guidance confirmed
3 FINANCIALS Current Trading Update – FY 2023 Guidance confirmed, Q3 in line with expectations as of early September Automotive Technologies – Specific regional chances (especially a better market development in China), but also risks (e. g. a potential UAW strike in Americas and global supply chain
Slide 94: Conclusion & Outlook – On track to deliver 2025 Roadmap targets
3 FINANCIALS Conclusion & Outlook – Robust Q2, Group guidance for FY 2023 confirmed 1 Automotive Technologies – Double-digit growth, good quality of earnings driven by both Gross and EBIT margin. Promising E-Mobility development expected for H2 2 Automotive Aftermarket – Double-digit growth, high qu
Slide 95: Thank you
Thank you Investor Relations Contact Phone +49 9132 82-4440 Email ir@schaeffler.com Web www.schaeffler.com/ir September 2023 Schaeffler AG - US Roadshow 95 PUBLIC
Slide 96: September 2023 Schaeffler AG - US Roadshow
September 2023 Schaeffler AG - US Roadshow 96 PUBLIC
Slide 97: Ancillary comments to support the Equity Story
BACKUP Ancillary comments to support the Equity Story Additional KPIs FY 2023 Comments Order Intake E-Mobility EUR 2 – 3 bn Starting from 2022 onwards the new target of EUR 2 - 3 bn applied Focus areas include Digitalization, Sustainability, Innovation & Technology and Capex Around EUR 900 mn invest
Slide 98: Automotive Technologies outperformance by quarters
BACKUP Automotive Technologies (AT) outperformance by quarters Adjusted comparative figures 2022 YTD Outperformance: -2.9pp Q1 23 Q2 23 Outper- Outper- S&P1 AT2 formance S&P1 AT2 formance World +7.1% +6.0% -1.1pp +15.5% +10.7% -4.8pp Europe +14.2% +15.1% +0.9pp +12.6% +14.5% +1.9pp Americas +9.9% +0
Slide 99: Key figures by Group and Division
BACKUP Key figures by Group and Division Adjusted comparative figures 2022 Group in EUR mn Automotive Aftermarket in EUR mn Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Sales 3,758 3,790 4,242 4,019 4,152 4,056 Sales 464 506 548 523 582 549 Sales Growth1 +1.9% +4.4% +20.2%
Slide 100: Overview Corporate and Financing Structure
BACKUP Overview Corporate and Financing Structure Corporate structure (simplified) as of June 30, 2023 Financing structure as of June 30, 2023 A IHO Verwaltungs GmbH Debt instrument Nominal Nominal Interest Maturity Rating INA-Holding Schaeffler USD mn EUR1 mn Fitch/Moody’s/S&P GmbH & Co. KG Loans R