Hella Gmbh & Co. Kgaa · XETR:HLE
Hella Gmbh & Co. Kgaa — Q1 FY2022 Earnings Presentation
24 slides from Hella Gmbh & Co. Kgaa's earnings presentation, Sep 29, 2022
Slide 1: HELLA Investor Update Q1 FY 2022
HELLA Investor Update Q1 FY 2022 September 29 th , 2022
Slide 2: Summary
Summary 01 Q1 Achievements| Michel Favre 02 Financial Results | Bernard Schäferbarthold 03 Outlook | Michel Favre 04 Key Takeaways
Slide 3: Q1 Achievements
01 Q1 Achievements
Slide 4: Growth in all business segments and improving profitability compared to prior quarter
Growth in all business segments and improving profitability compared to prior quarter Accelerating sales growth in Q1 FY 2022 Sequential margin improvement ❯ Group Sales up by 21.6% (including 5.3% ❯ Adjusted EBIT with €91m at prior year FX effects) level ❯ Continuous outperformance in Asia ❯ Adj. E
Slide 5: Significant awards and enlargement of product portfolio in Q1 FY 2022
Significant awards and enlargement of product portfolio in Q1 FY 2022 ❯ Significant awards for new generation of strategic products with core customers • Electronics ⚬ Smart Car Access for premium OEM, SOP July 2025 ⚬ High Voltage DC/DC converter for premium OEM, SOP January 2025 • Lighting ⚬ Front
Slide 6: Top priorities focus on cost reduction and cash flow management
Top priorities focus on cost reduction and cash flow management Key priorities until May 2023 ❯ Further improve operational performance and increase the share of pass-throughs to customers ❯ Implement further cost reductions ❯ Reduce working capital (mainly inventory) ❯ Realize synergies and identif
Slide 7: Financial Results
02 Financial Results
Slide 8: Strong start into the new fiscal year with double-digit sales growth
Strong start into the new fiscal year with double-digit sales growth in a recovering market environment ❯ Organic sales up 16.3% to €1.7bn, €78m positive FX in Q1 FY 2022 ❯ Accelerating sales growth in the automotive Segments Electronics and Lighting with strong demand for key products and ramp-up o
Slide 9: Both Automotive segments showed accelerating sales growth in the last quarter
Both Automotive segments showed accelerating sales growth in the last quarter ELECTRONICS (External sales) LIGHTING (External sales) in €m in €m +28.4% +22.4% 731 822 128 109 570 671 41 33 +22.5% +16.3% +6.1% +5.9% vs. LVP growth vs. LVP growth of 21.5% of 21.5% Q1 FY 21/22 Currency effect* Organic
Slide 10: Life Cycle solutions steadily contributes to the sales performance
Life Cycle solutions steadily contributes to the sales performance of the HELLA group LCS (External sales) ❯ Performance driven by in €m +5.7% • Independent Aftermarket segment with 237 growth particularly in Turkey, Mexico and 11 Poland 224 2 +4.8% +0.8% • Growth in all relevant customer segments o
Slide 11: HELLA continues internationalization with disproportionate growth in China and NSA
HELLA continues internationalization of business with disproportionate growth in China as well as NSA Region NSA Europe Asia/ Pacific incl. RoW 23 % 51 % 27 % of group sales of group sales of group sales GROUP Sales 407 906 478 103 866 40 304 174 +4.7% 304 +34.0% +57.3% vs. LVP growth vs. LVP growth
Slide 12: Lower Gross Profit main driver for EBIT margin decline
Lower Gross Profit main driver for EBIT margin decline, other cost positions increased under-proportionally In €m Q1 FY 21/22 Q1 FY 2022 YoY Change ❯ Adj. Gross Profit margin decreased by 3.0ppt to 22.9%: • further increases in costs of materials, energy and logistics that could Sales 1,473 1,792 +
Slide 13: Adjusted FCF negatively impacted by additional CAPEX and inventories
Adjusted FCF negatively impacted by additional CAPEX and inventories Adj.* FCF from operating activities ❯ Adj. Free Cash Flow from operating activities decreased in €m by €52m to -€82m • change in WC negatively impacted by -31 ⚬ increase of inventories (€77m) due to global raw material crisis & sup
Slide 14: Outlook
03 Outlook
Slide 15: The global vehicle production is expected to recover progressively
The global vehicle production is expected to recover progressively Expected Global Light Vehicle production in million units, IHS Markit per 16 September 2022 +12.4% HELLA expects a range between 80 and 84 million units More cautions view but still a strong plus of 4-8m vehicles compared to PY 85.2
Slide 16: HELLA guidance confirmed – assumes sales and margin recovery especially in 2023
HELLA guidance confirmed – assumes sales and margin recovery especially in 2023 Guidance is based on LPV volumes between 80-84 million vehicles until May 2023 Sales in the range of around Adjusted EBIT margin in the range EUR 7.1 bn to 7.6 bn of around 5.5% to 7.0% (adjusted for currency and portfol
Slide 17: Key Takeaways
04 Key Takeaways
Slide 18: Key Takeaways
Key Takeaways ❯ First quarter FY 2022 with strong sales momentum and improving profitability ❯ Continued globalization of business with disproportionate growth in China and NSA ❯ Ongoing focus on performance improvement and cash generation ❯ Forecasted volume increase will support sales development
Slide 19: Appendices
APPENDICES
Slide 20: Upcoming events
Upcoming events November 03, 2022 Capital Markets Day November 04, 2022 Sustainability Day January 13, 2023 H1 FY 2022/23 results
Slide 21: LVP production and Group sales per region
LVP production and Group sales per region Q1 FY Q1 FY Q1 20/21 21/22 FY 2022 HELLA Group sales Worldwide 1,344 1,473 1,792 in €m 797 866 906 Europe Growth +8.6% +4.7% 312 304 407 North & South America Growth -2.7% +34.0% Asia/Pacific & Rest of 235 304 478 World Growth +29.2% +57.3% Light vehicle pro
Slide 22: HELLA Group P&L including reconciliation
HELLA Group P&L including reconciliation Q1 FY 2021/22 Q1 FY 2022 Revenues reported 1,473.5 1,791.5 Adjustments 0.0 0.0 Revenues adjusted 1,473.5 1,791.5 Gross Profit reported 378.0 406.9 Adjustments 4.0 3.0 Gross Profit adjusted 382.0 409.9 R & D expenses reported -166.6 -188.8 Adjustments 3.6 2.9
Slide 23: Disclaimer
Disclaimer o This document was prepared with reasonable care. However, no responsibility can be assumed for the correctness of the provided information. In addition, this document contains summary information only and does not purport to be comprehensive and is not intended to be (and should not be
Slide 24: -ORVIA
-ORVIA
HELLA GmbH & Co. KGaA — Q1 FY2022 Earnings Presentation on 6ix