Slide 1: 2.1 Automotive OEM
2.1 Automotive OEM Matthias Zink CEO Automotive OEM September 20, 2018 Capital Markets Day 2018 Berlin
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 Automotive OEM at a glance 2 Growth strategy Automotive OEM 3 Conclusion 3 September 20, 2018 Capital Markets Day 2018 – 2.1 Automotive OEM
Slide 4: Automotive OEM at a glance – Above market growth continues
1 Automotive OEM at a glance Automotive OEM at a glance – Above market growth continues Sales and EBIT margin Sales split by customer mix H1 2018 in EUR mn +5.4%1) Top 10 customers 8,991 8,525 +4.8%1) 4,587 40% 4,528 60% 2016 2017 H1 2017 H1 2018 EBIT margin2) 12.9% 10.7% 10.7% 9.2% Top 10 automotiv
Slide 5: Challenging environment – Dynamic Automotive Market
1 Automotive OEM at a glance Challenging environment – Dynamic Automotive Market Vehicle test cycle Electrification Paradigm shift in Vehicle registration Macroeconomic technology leading to a difficulties due to the environment and risks transformation of the new WLTP-cycle industry Trade environme
Slide 6: Dynamic Automotive Market – Short-term impact
1 Automotive OEM at a glance Dynamic Automotive Market – Short-term impact Vehicle test cycle Vehicle registration Minor sales impact with some German OEMs difficulties due to the Temporary Q3-effects with expected new WLTP-cycle compensation in Q4 Trade environment Macroeconomic High localiza
Slide 7: Dynamic Automotive Market – Long-term trends
1 Automotive OEM at a glance Dynamic Automotive Market – Long-term trends Electrification Enhanced Powertrain Paradigm shift in Strategy with focus on technology leading to a electrification transformation of the Deep Dive by Dr. Jochen industry Schröder to follow Autonomous driving Evolution of
Slide 8: Global Footprint – Strong regional positions to counteract market uncertainties
1 Automotive OEM at a glance Global Footprint – Strong regional positions to counteract market uncertainties Americas Europe Greater China Asia Pacific Region facts 7 production plants 569 employees in R&D 81% localization rate E-Mobility R&D Center located in Anting Regional drivers Openi
Slide 9: Product portfolio – Vital components and systems in powertrain and chassis
1 Automotive OEM at a glance Product portfolio – Vital components and systems in powertrain and chassis Automotive OEM Product Portfolio Innovative component, subsystem and system supplier along the whole powertrain and chassis Strong mechanical background with a high degree of vertical integrat
Slide 10: Automotive OEM – Success story continues
2 Growth Strategy Automotive OEM Automotive OEM – Success story continues Hybrid module Innovation chronology Automotive OEM Strategy Active roll Innovative history and strong track record Complexity control UniAir with new technologies system Global R&D network to adapt to market CVT challenges
Slide 11: Mobility for Tomorrow – Our Powertrain Strategy
2 Growth Strategy Automotive OEM Mobility for Tomorrow – Our Powertrain Strategy ICE HEV EV Vision Powertrain Powertrain Portfolio Global vehicle production [in mn units] 117 110 70% 102 12% 90 30% 4% 11% 33% 70% 40% 95% 86% 55% 30% 2017 2020 e 2025 e 2030 e Source: IHS and Schaeffler Assumptions /
Slide 12: Mobility for Tomorrow – Our Powertrain Strategy
2 Growth Strategy Automotive OEM Mobility for Tomorrow – Our Powertrain Strategy ICE HEV EV Vision Powertrain Powertrain Pyramid Global vehicle production [in mn units] 117 System Understanding 110 70% 102 12% 90 30% 4% 11% Mechatronic Systems 33% 70% 40% Mechanical Systems 95% 86% 55% 30% Component
Slide 13: Engine Systems – Emission reduction offers new business potential
2 Growth Strategy Automotive OEM Engine Systems – Emission reduction offers new business potential ICE HEV EV Powertrain Pyramid System Understanding Market Real Driving Drivers Efficiency Hybridization Emissions Mechatronic Systems Mechanical Systems Components Variability Thermal Vision Powertrain
Slide 14: Engine Systems – Emission reduction offers new business potential
2 Growth Strategy Automotive OEM Engine Systems – Emission reduction offers new business potential ICE HEV EV Powertrain Pyramid System Understanding Market Real Driving Drivers Efficiency Hybridization Emissions Mechatronic Systems Mechanical Systems Components Variability Thermal Vision Powertrain
Slide 15: Transmission Systems – Higher technical requirements drive business potential
2 Growth Strategy Automotive OEM Transmission Systems – Higher technical requirements drive business potential ICE HEV EV Powertrain Pyramid System Understanding Market Real Driving Drivers Automatization Hybridization Emissions Mechatronic Systems Mechanical Systems Components Damping Vision Powert
Slide 16: Transmission Systems – Higher technical requirements drive business potential
2 Growth Strategy Automotive OEM Transmission Systems – Higher technical requirements drive business potential ICE HEV EV Powertrain Pyramid System Understanding Market Real Driving Drivers Automatization Hybridization Emissions Mechatronic Systems Mechanical Systems Components Damping Vision Powert
Slide 17: Mobility for Tomorrow – Our Chassis Strategy
2 Growth Strategy Automotive OEM Mobility for Tomorrow – Our Chassis Strategy ≤L2 L3 L4 L5 Vision Chassis Chassis Portfolio Global vehicle production [in mn units] 117 117 110 4% 9% 102 3% 13% 18% 14% 100% 96% 81% 59% 2020 e 2025 e 2030 e 2035 e Source: IHS Autonomy and McKinsey / Values based on Li
Slide 18: Mobility for Tomorrow – Our Chassis Strategy: Automation Level
2 Growth Strategy Automotive OEM Mobility for Tomorrow – Our Chassis Strategy ≤L2 L3 L4 L5 Vision Chassis Stages of automation Global vehicle production [in mn units] 117 117 110 4% 9% 102 3% 13% 18% L5 Autonomous Automation Level 14% L4 Fully automated 100% 96% 81% 59% Highly L3 automated ≤L2 Parti
Slide 19: Mobility for Tomorrow – Our Chassis Strategy
2 Growth Strategy Automotive OEM Mobility for Tomorrow – Our Chassis Strategy ≤L2 L3 L4 L5 Vision Chassis Chassis Pyramid Global vehicle production [in mn units] 117 117 System Understanding 110 4% 9% 102 3% 13% 18% Mechatronic Systems 14% 100% 96% Mechanical Systems 81% 59% Components 2020 e 2025 e
Slide 20: Order Intake Automotive – Promising H1 2018
2 Growth Strategy Automotive OEM Order Intake Automotive – Promising H1 2018 Automotive OE Order Intake1) Order Intake Highlights July/August (Q3) in EUR bn 12.6 Planetary Transmission 11.3 First nominations of a planetary transmission for hybrid vehicle H2 5.4 Order intake EUR 90 mn 6.6 Dual-ma
Slide 21: Opportunities and Headwinds (until 2025)
3 Conclusion Opportunities and Headwinds (until 2025) Top Line Drivers Top Line Challenges 1. Strong order intake in H1 – in E-Mobility and in classic + + 1. Decreasing market for ICE-related technologies - - Business Divisions expected from 2025 onwards 2. E-Mobility Division to account for ~10% of