Schaeffler Ag · XETR:SHA0
Schaeffler — Goldman Sachs Global Automotive Conference 2023
58 slides from Schaeffler's conference presentation, Dec 6, 2023
Slide 1: Schaeffler AG – Goldman Sachs Global Automotive Conference
Schaeffler AG – Goldman Sachs Global Automotive Conference December 6, 2023 London PUBLIC
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: Disclaimer
Disclaimer Disclaimer regarding information on the voluntary public tender offer -This presentation is with regard to the voluntary public tender offer (the “Offer”) of Schaeffler AG (“Schaeffler”) for all shares of Vitesco Technologies Group AG (“Vitesco” or the “Company”) for information purposes
Slide 4: Update – Voluntary public tender offer of Schaeffler to the shareholders of Vitesco
Update – Voluntary public tender offer of Schaeffler to the shareholders of Vitesco We signed a Business Combination Agreement and increase our offer price for tender offer, due to legal click thought disclaimer, please consultee our deal website to get the most important documents. https://www.stro
Slide 5: Overview Q3 and 9M 2023, Business Highlights, Financial Results, Outlook
1 Overview Q3 and 9M 2023 2 Business Highlights Q3 and 9M 2023 3 Financial Results Q3 and 9M 2023 4 Outlook Dec 6, 2023 Schaeffler AG | GS Global Automotive Conference 5 PUBLIC
Slide 6: Schaeffler Group – Strong Q3 results driven by Automotive divisions
1 OVERVIEW Q3 AND 9M 2023 Schaeffler Group – Strong Q3 results driven by Automotive divisions Key messages Q3 2023 Sales growth1 Q3 Gross Margin Q3 Q3 Sales1 +0.5% – Good growth in Europe and Asia/Pacific. 1 Greater China declining on very high comps Q3 Gross margin 22.3% – Very strong contribution
Slide 7: Sales Performance Q3 2023 – Flat sales, heterogeneous development
1 OVERVIEW Q3 AND 9M 2023 Sales Performance Q3 2023 – Flat sales, heterogeneous development vs. double-digit 2022 comps Automotive Automotive Industrial Technologies Aftermarket Q3 2023 1 % of Group Region Growth Sales 60% 14% 26% Europe 44% +4.7% +8.2% +5.5% +5.7% Americas 22% -3.8% +11.8% +5.3% +0
Slide 8: Schaeffler Group Q3 2023 – Highlights and lowlights
1 OVERVIEW Q3 AND 9M 2023 Schaeffler Group Q3 2023 – Highlights and lowlights • Automotive Technologies • Automotive Technologies Strong margin driven by mature business, fueling Sales growth overall: below market in Americas and the transformation journey; YTD margin at the high- China in Q3; E-Mob
Slide 9: Overview, Business Highlights Q3 and 9M 2023, Financial Results
1 Overview 2 Business Highlights Q3 and 9M 2023 3 Financial Results Q3 and 9M 2023 4 Outlook Dec 6, 2023 Schaeffler AG | GS Global Automotive Conference 9 PUBLIC
Slide 10: Automotive Technologies – Q3 with continued strong EBIT momentum
2 BUS INES S H IGH LIGHTS Q3 AND 9M 2023 Automotive Technologies – Q3 with continued strong EBIT momentum Sales EBIT2 KEY ASPECTS in EUR mn in EUR mn Flat sales yoy1 on very strong comps (+25%). In 2022 our Q3 +5.4%1 +135 mn included also retroactive price compensation +0.2%1 7,280 349 +20 mn Chassi
Slide 11: Automotive Technologies – E-Mobility EUR 2-3 bn Order Intake annual target already achieved
2 BUS INES S H IGH LIGHTS Q3 AND 9M 2023 Automotive Technologies – E-Mobility EUR 2-3 bn Order Intake annual target already achieved Business Highlights Order Intake1 in EUR bn Thereof Winning in the US Pick-Up 2.7 3.2 5.0 2.9 YTD E-Mobility market: Extension of business with innovative powertrain s
Slide 12: Automotive Aftermarket – Q3 with strong sales growth and very strong EBIT margin
2 BUS INES S H IGH LIGHTS Q3 AND 9M 2023 Automotive Aftermarket – Q3 with strong sales growth1 and very strong EBIT margin2 Sales EBIT2 KEY ASPECTS in EUR mn in EUR mn High single-digit sales growth1 on +14.5%1 strong comps, driven by continued strong demand, +88 mn improved logistical performance +
Slide 13: Automotive Aftermarket – Acquisition of B2B e-commerce platform Koovers in India
2 BUS INES S H IGH LIGHTS Q3 AND 9M 2023 Automotive Aftermarket – Acquisition in September of B2B e-commerce platform Koovers in India Sizable and attractive Indian Automotive Aftermarket in EUR mn E-commerce Market Penetration 2% 10% +15% • Indian automotive 4,198 aftermarket expected to grow to 14
Slide 14: Industrial – Q3 sales and EBIT development driven by market downturn
2 BUS INES S H IGH LIGHTS Q3 AND 9M 2023 Industrial – Q3 sales1 and EBIT development driven by market downturn Sales EBIT2 KEY ASPECTS in EUR mn in EUR mn +5.7%1 Volumes in all regions below strong Q3 2022 due to weakening -71 mn economic environment and destocking -3.0%1 3,274 3,205 397 EBIT margin
Slide 15: Industrial – Orderbook reduction mainly due to downturn in China and Wind
2 BUS INES S H IGH LIGHTS Q3 AND 9M 2023 Industrial – Orderbook reduction mainly due to downturn in China and Wind Orderbook 3-month1, 2 Orderbook 3M1 Sales2 Business Highlights yoy growth % 40 New order gains in Aerospace by long-term agreements with key 30 OEMs covering roller bearings for high vo
Slide 16: Capital allocation – Continued prioritization of Capex for growth business
2 BUS INES S H IGH LIGHTS Q3 AND 9M 2023 Capital allocation – Continued prioritization of Capex for growth business Investment1 allocation KEY ASPECTS in EUR mn • Automotive Technologies: E-Motor production investments in FY 2021 FY 2022 Q3 2022 Q3 2023 9M 2023 the US and Eastern Europe as well as C
Slide 17: Overview, Business Highlights, Financial Results Q3 and 9M 2023
1 Overview 2 Business Highlights Q3 and 9M 2023 3 Financial Results Q3 and 9M 2023 4 Outlook Dec 6, 2023 Schaeffler AG | GS Global Automotive Conference 17 PUBLIC
Slide 18: Sales – Europe and Asia/Pacific with good growth in Q3, China declining
3 F INANCIAL RES ULTS Q3 AND 9M 2023 Sales – Europe and Asia/Pacific with good growth in Q3, China declining Sales KEY ASPECTS in EUR mn -4.2%1 +0.5%2 • Automotive Technologies: 0.2%2 growth in Q3; good growth in Europe and Asia/Pacific, whereas Americas and China declining 4,242 4,019 4,152 4,056 4
Slide 19: Gross Profit – Positive development of production costs, unfavourable FX
3 F INANCIAL RES ULTS Q3 AND 9M 2023 Gross Profit – Positive development of production costs, unfavourable FX Gross Profit Q3 2022 vs. Q3 2023 KEY ASPECTS in EUR mn • Pricing: Maintained pricing levels • Volumes: Negative sales volume effects driven by Industrial +7 +40 984 • Production Costs: Incre
Slide 20: Overhead costs – Overhead cost ratio stays below 16%
3 F INANCIAL RES ULTS Q3 AND 9M 2023 Overhead costs – Overhead cost ratio stays below 16% Overhead costs KEY ASPECTS in EUR mn +2.7% • R&D: Continued stable development of R&D expenses 648 666 645 • Selling expenses: Slightly lower due to lower volumes in 622 628 633 604 Industrial 196 205 188 188 1
Slide 21: EBIT margin – Strong group margin driven by Automotive divisions
3 F INANCIAL RES ULTS Q3 AND 9M 2023 EBIT margin1 – Strong group margin driven by Automotive divisions EBIT1 KEY ASPECTS in EUR mn - 15 mn • Automotive Technologies: EBIT margin1 improved yoy and sequentially, driven by cost efficiencies 355 340 336 • Automotive Aftermarket: EBIT margin1 continued t
Slide 22: Automotive Technologies – Despite flat sales growth, EBIT margin up yoy
3 F INANCIAL RES ULTS Q3 AND 9M 2023 Automotive Technologies – Despite flat sales growth1, EBIT margin2 up yoy Sales by business division yoy growth EBIT2 Q3 2022 vs. Q3 2023 in EUR mn Q3 2022 Q3 2023 ∆1 E-Mobility 390 335 -9.4% +16 +28 142 Engine & Transmission 1,381 1,315 -0.3% Bearings 682 682 +5
Slide 23: Automotive Aftermarket – Strong sales growth, very strong EBIT margin
3 F INANCIAL RES ULTS Q3 AND 9M 2023 Automotive Aftermarket – Strong sales growth1, very strong EBIT margin5 Sales by region yoy growth EBIT5 Q3 2022 vs. Q3 2023 in EUR mn Q3 2022 Q3 2023 ∆1 Europe 359 389 +8.2% +39 Americas 118 127 +11.8% 98 Greater China 37 34 +6.5% -1 -9 -3 Asia/Pacific 35 34 +7.
Slide 24: Industrial – Double-digit sales decline in China, EBIT margin within guidance range
3 F INANCIAL RES ULTS Q3 AND 9M 2023 Industrial – Double-digit sales decline1 in China, EBIT margin2 within guidance range Sales by region yoy growth EBIT2 Q3 2022 vs. Q3 2023 in EUR mn Q3 2022 Q3 2023 ∆1 Europe 436 454 +5.5% Americas 196 191 +5.3% 159 Greater China 348 238 -22.2% Asia/Pacific 160 1
Slide 25: Net Income – EPS at EUR 0.22, ROCE reached 12.8%
3 F INANCIAL RES ULTS Q3 AND 9M 2023 Net Income1 – EPS² at EUR 0.22, ROCE³ reached 12.8% Net income1 KEY ASPECTS in EUR mn -76 mn • Q3 2023 Net income1 lower yoy on strong comps; sequentially up 226 • ROCE³ and Schaeffler Value Added4 above prior year 150 136 129 138 113 82 ROCE3 and Schaeffler Valu
Slide 26: FCF – Strong Q3 FCF, effective Working Capital management
3 F INANCIAL RES ULTS Q3 AND 9M 2023 FCF – Strong Q3 FCF, effective Working Capital management Free Cash Flow before M&A1 in EUR mn Reconciliation Q3 2023 in EUR mn 567 -58 mn 240 244 182 -108 103 +58 182 14 -247 -13 -76 -73 EBITDA ∆ Net Capex Net Interest Taxes Others FCF -219 Q3 2023 Working Q3 20
Slide 27: Net debt of EUR 3.1 bn – Leverage ratio at 1.4x
3 F INANCIAL RES ULTS Q3 AND 9M 2023 Net debt of EUR 3.1 bn – Leverage ratio at 1.4x Net financial debt and Leverage ratio1 KEY ASPECTS in EUR mn 3,231 3,072 • Q2 2023 included a dividend payment of EUR 295 mn for FY 2022 2,999 (payout ratio 48%) 2,552 2,331 2,235 1,992 • Leverage ratio increased in
Slide 28: Overview, Business Highlights, Financial Results, Outlook
1 Overview 2 Business Highlights Q3 and 9M 2023 3 Financial Results Q3 and 9M 2023 4 Outlook Dec 6, 2023 Schaeffler AG | GS Global Automotive Conference 28 PUBLIC
Slide 29: Market assumptions updated – Automotive Technologies raised, Industrial lowered
4 OUTLOOK Market assumptions updated – Automotive Technologies market expectations raised, Industrial lowered Automotive Technologies – Global LVP1 2023 Automotive Aftermarket – Global LV Parc3 Industrial – Industrial Production4 Up to 4.6% 88.6 88.1 82.3 5.1% World 2.5% 2.6% 1.8% World 21.4 22.2 22
Slide 30: FY 2023 Guidance updated – Confirmed and on track for all KPIs, except Industrial
4 OUTLOOK FY 2023 Guidance updated – Confirmed and on track for all KPIs, except Industrial sales growth now reduced FY 2023 Guidance1 Schaeffler Group Automotive Technologies Automotive Aftermarket Industrial Guidance Guidance Guidance Guidance FY 20231 FY 2023 FY 2023 FY 2023 Sales Outperformance
Slide 31: Conclusion & Outlook – Strong Q3, Group guidance confirmed for FY 2023
4 OUTLOOK Conclusion & Outlook – Strong Q3, Group guidance confirmed for FY 2023 1 Automotive Technologies – Despite flat sales, strong earnings in Q3. Good E-Mobility Order intake momentum, full year target already achieved at the high end of range 2 Automotive Aftermarket – High single-digit growt
Slide 32: Financial calendar and selected IR events
4 OUTLOOK Financial calendar and selected IR events Roadshows & Conferences Financial calendar 2023/2024 with Top Management participation Dec 6 Auto/Ind. Conference – London, Goldman Sachs Feb EGM (exact date to come) Jan 17 German Corporate Conference – Frankfurt, Kepler Mar 5 FY 2023 Earnings Rel
Slide 33: Thank you
Thank you Investor Relations Contact Phone +49 9132 82-4440 Email ir@schaeffler.com Web www.schaeffler.com.ir Dec 6, 2023 Schaeffler AG | GS Global Automotive Conference 33 PUBLIC
Slide 34: Financials
- Financials - Dec 6, 2023 Schaeffler AG | GS Global Automotive Conference 34 PUBLIC
Slide 35: Equity Story – Positioning Schaeffler for long-term value creation
BACKUP F INANCIALS Equity Story – Positioning Schaeffler for long-term value creation 1 Roadmap 2025 in execution – Focus on capital allocation, portfolio management and FCF generation 2 Automotive Technologies – Conquer leadership positions in New Business for electrified Powertrains and Chassis ap
Slide 36: Ancillary comments to support the Equity Story
BACKUP F INANCIALS 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 9
Slide 37: Key figures Q3 and 9M 2023
BACKUP F INANCIALS Key figures Q3 and 9M 2023 Q3 2023 9M 2023 in EUR mn Q3 2022 Q3 2023 vs. Q3 2022 9M 2022 9M 2023 vs. 9M 2022 -4.2% +4.1% Sales 4,242 4,062 11,790 12,270 +0.5%1 +6.6%1 Gross Profit 984 906 -78 mn 2,687 2,776 +89 mn Gross margin 23.2% 22.3% -0.9pp 22.8% 22.6% -0.2pp EBIT2 355 340 -1
Slide 38: Sales Performance 9M 2023 – Growth across all divisions and regions
BACKUP F INANCIALS Sales Performance 9M 2023 – Growth across all divisions and regions Automotive Automotive Industrial Technologies Aftermarket 9M 2023 1 % of Group Region Growth Sales 59% 14% 27% Europe 44% +11.3% +13.9% +8.6% +11.1% Americas 22% -0.5% +13.3% +11.5% +3.7% Greater 20% -0.1% +24.7%
Slide 39: Automotive Technologies – All business divisions growing, strong EBIT margin
BACKUP F INANCIALS Automotive Technologies – All business divisions growing, strong EBIT margin2 Sales by business division yoy growth EBIT2 9M 2022 vs. 9M 2023 in EUR mn 9M 2022 9M 2023 ∆1 E-Mobility 990 967 +0.3% +43 349 Engine & Transmission 3,850 3,973 +5.3% +99 +5 +0 -12 Bearings 1,955 2,005 +5
Slide 40: Automotive Aftermarket – Double-digit sales growth, very strong EBIT margin
BACKUP F INANCIALS Automotive Aftermarket – Double-digit sales growth1, very strong EBIT margin5 Sales by region yoy growth EBIT5 9M 2022 vs. 9M 2023 in EUR mn 9M 2022 9M 2023 ∆1 Europe 1,002 1,137 +13.9% +126 -1 Americas 327 368 +13.3% +7 290 Greater China 92 106 +24.7% Asia/Pacific 97 104 +14.2% -
Slide 41: Industrial – All regions growing except China, EBIT margin below prior year
BACKUP F INANCIALS Industrial – All regions growing except China, EBIT margin2 below prior year Sales by region yoy growth EBIT2 9M 2022 vs. 9M 2023 in EUR mn 9M 2022 9M 2023 ∆1 Europe 1,308 1,412 +8.6% 397 Americas 548 595 +11.5% Greater China 879 800 -1.9% 326 -5 +33 -19 Asia/Pacific 470 466 +5.5%
Slide 42: Net Income – EBIT reconciliation and special items
BACKUP F INANCIALS Net Income1 – EBIT reconciliation and special items Reconciliation 9M 2023 in EUR mn KEY ASPECTS • Special items amounted to EUR 115 mn in 9M, mainly related to valuation of energy forward contracts 965 • Financial Result lower yoy due to higher interest payments and 849 higher ex
Slide 43: Working Capital ratio 20.3% – Capex ratio 6.1% in Q3
BACKUP F INANCIALS Working Capital ratio 20.3% – Capex ratio 6.1% in Q3 Working capital1 Capex2 in EUR mn in EUR mn -59 mn +28 mn 3,368 3,224 3,309 3,184 3,165 2,976 2,803 240 247 219 221 198 175 156 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2022 2022 2022 2023 2023 2023 2022 2022 2022 2022 202
Slide 44: Automotive Technologies (AT) outperformance by quarters
BACKUP F INANCIALS Automotive Technologies (AT) outperformance by quarters Adjusted comparative figures 2022 YTD Outperformance: -3.6pp Q1 23 Q2 23 Q3 23 Outper- Outper- Outper- S&P1 AT2 formance S&P1 AT2 formance S&P1 AT2 formance World +7.1% +6.0% -1.1pp +16.8% +10.7% -6.1pp +3.8% +0.2% -3.6pp Eur
Slide 45: Key figures by Group and Division
BACKUP F INANCIALS 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 Q3 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Sales 3,758 3,790 4,242 4,019 4,152 4,056 4,062 Sales 464 506 548 523 582 549 58
Slide 46: Overview Corporate and Financing Structure
BACKUP F INANCIALS Overview Corporate and Financing Structure Corporate structure (simplified) as of September 30, 2023 Financing structure as of September 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
Slide 47: Group
- Group - Dec 6, 2023 Schaeffler AG | GS Global Automotive Conference 47 PUBLIC
Slide 48: Schaeffler Group at a glance – The Motion Technology Company
BACKUP GROUP Schaeffler Group at a glance – The Motion Technology Company 3 Divisions 4 Regions in % of FY 2022 in % of FY 2022 • 3 Divisions serving attractive, sizeable Automotive and Industrial EUR 1,087 mn1 Europe Asia / Pacific Industrial markets with secular growth +11.6% 2 42% 13% 27% • Diver
Slide 49: Schaeffler Group – A strong starting point
BACKUP GROUP Schaeffler Group – A strong starting point Strong customer base with Approximately Approximately approx. 11,800 EUR 15.8 bn 1,800 customers Sales in 2022 patents filed in 2021 Approximately 76 plants 1.1 mn tons of processed steel p.a. 20 R&D centers Around 200 locations in more than 50
Slide 50: Schaeffler Group – Our Customers
BACKUP GROUP Schaeffler Group – Our Customers Dec 6, 2023 Schaeffler AG | GS Global Automotive Conference 50 PUBLIC
Slide 51: Sustainability
- Sustainability - Dec 6, 2023 Schaeffler AG | GS Global Automotive Conference 51 PUBLIC
Slide 52: Path to Climate Neutrality – Ambitious Scope targets defined
BACKUP S US TAINABILITY 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 − Emission reduction
Slide 53: Sustainability – Our goal is to be climate-neutral from 2040 onwards
BACKUP SUSTAINABILITY Sustainability – Our goal is to be climate-neutral from 2040 onwards Ten Action Fields: In order to achieve the goal of climate neutrality by 2040, we Key Aspects have refined our sustainability strategy in a holistic approach and designed it • Successful sustainability managem
Slide 54: Sustainability Targets – We set clear ESG related targets
BACKUP S US TAINABILITY Sustainability Targets – We set clear ESG related targets Climate-neutral Supply Chain Achieve a climate-neutral supply chain (Scope 3 upstream) by 2040 Green Own Power Generation Climate-neutral Production 10 % of the electricity demand worldwide with Achieve climate neutral
Slide 55: Overview Sustainability Ratings – strong track record
BACKUP S US TAINABILITY Overview Sustainability Ratings – strong track record Climate Change Water Security 100 A A 75 A- A- B A- 75 76 79 B- B- 50 60 65 50 D D D D 25 43 0 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 50 100 100% severe 10.3: Low ris
Slide 56: Credit
- Credit - Dec 6, 2023 Schaeffler AG | GS Global Automotive Conference 56 PUBLIC
Slide 57: Schaeffler maintains prudent leverage metrics – Moody's upgrade to Baa3
BACKUP CREDIT Schaeffler maintains prudent leverage metrics with stable leverage development despite global volatility – Moody’s upgraded Schaeffler’s ratings in March 2023 to Baa3 Net financial debt and leverage ratio Key aspects Net financial debt (EUR mn) 5,778 Leverage ratio 1 • Schaeffler’s lev
Slide 58: Well balanced financing structure with diversified debt instruments
BACKUP CREDIT Well balanced financing structure with diversified debt instruments and no maturity in 2023 Key aspects Finance structure Schaeffler AG | as of September 30, 2023 Debt Instrument Nominal (EUR m) Interest Maturity Rating (Fitch/Moody’s/S&P) • Schaeffler AG maintains a strong liquidity p
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