Hella Gmbh & Co. Kgaa · XETR:HLE
Hella Gmbh & Co. Kgaa — FY2023 Earnings Presentation
27 slides from Hella Gmbh & Co. Kgaa's earnings presentation, Mar 15, 2024
Slide 1: HELLA Investor Update
HELLA Investor Update Results FY 2023 (Jan 1, 2023 - Dec 31, 2023) March 15 th , 2024
Slide 2: Summary
Summary 01 Achievements 02 Financial Results FY 2023 (Jan 1, 2023 - Dec 31, 2023) 03 Outlook FY 2024 04 Key takeaways
Slide 3: Achievements
01 Achievements
Slide 4: Sales growth in FY 2023 driven by solid demand; all targets achieved
Sales growth in FY 2023 driven by solid demand for core products and technologies, all targets for 2023 achieved Organic sales growth at 12.7% with solid Operating Income up to €486m, dividend demand for core products and technologies proposal at €0.71 per share ❯ Global market outperformance at 300
Slide 5: Customer awards as proof point for HELLA's technology and product advantage
Customer awards as proof point for HELLA’s technology and product advantage Strong order intake track record continued in 2023 with ~€11bn order volume 2023 Order Highlights ❯ Electronics receives order intake for high-content technologies • Record-size 77GHz radar package for German OEM; SOP 2025 •
Slide 6: FORVIA synergies ahead of roadmap – further upgrade of cost synergy target
FORVIA synergies ahead of roadmap – further upgrade of cost synergy target FORVIA Synergies in €m ❯ Significant cost synergy achieved in FY 2023 >350 HELLA share • cumulated cost synergies of €190m achieved for FORVIA, more than half is attributable to HELLA • cooperation with FORVIA intensified; cr
Slide 7: Continuation of stringent portfolio management – further network and portfolio changes in 2023
Continuation of stringent portfolio management – further network and portfolio changes in 2023 ❯ Stringent management of automotive joint ventures • purchase agreement signed in Oct ’23 to sell BHTC shares • based on €600m Enterprise Value (100%) • buyer AUO Corporation secures best ownership to dev
Slide 8: Continuous intensification of sustainability efforts – important ratings, climate targets
Continuous intensification of sustainability efforts – achievement of important ratings in 2023, climate targets ahead of roadmap Sustainable management & responsible behavior form an important basis for the successful further development of HELLA Climate targets BUSINESS ACTIVITIES ALGINED TO Comba
Slide 9: HELLA initiates a program in Europe to strengthen its competitiveness
HELLA initiates a program in Europe to strengthen its competitiveness Long-term competitiveness program in Europe until 2028 Adapt to the changes in the European market conditions Adopt to reduced market volumes Secure long-term business success in Prepare for expected market share Strategic (~17m L
Slide 10: Financial Results FY 2023
02 Financial Results FY 2023 (Jan 1, 2023 - Dec 31, 2023)
Slide 11: Double-digit sales growth in FY 2023 driven by solid demand for core products
Double-digit sales growth in FY 2023 driven by solid demand for core products and technologies ❯ Organic sales 12M FY 2023 up 12.7%, €-171m negative FX in 12M, organic sales Q4 up by 6.9% ❯ Sales contribution from all three business groups ❯ High demand for key products along the automotive trends G
Slide 12: Strong performance in Lighting with high sales growth and profitability improvement
Strong performance in Lighting with high sales growth and profitability improvement LIGHTING ❯ Capitalizing on market leadership position in all product groups 12M CY 12M FY 2022 2023 • increased demand for the latest lighting technologies vs. LVP External Sales (€m) 3,371 3,831 growth also from man
Slide 13: Electronics with solid demand for core technologies and ongoing investments
Electronics with solid demand for core technologies and ongoing investments in future projects ELECTRONICS ❯ Leverage strong product portfolio for electromobility and automated driving 12M CY 12M FY • continued business success with HV battery 2022 2023 vs. LVP growth management systems, voltage con
Slide 14: Lifecycle Solutions shows increased contribution with further sales growth
Lifecycle Solutions shows increased contribution with further sales growth and good operational performance LCS ❯ Successful workshop, spare parts and commercial vehicle business 12M CY 12M FY 2022 2023 • strong spare parts business growing in various External Sales (€m) 976 1059 country markets wor
Slide 15: HELLA continues its global outperformance by region
HELLA continues its global outperformance, customer and model mix with a particularly negative impact in Asia LVP global +9.7% Americas Europe Asia/ Pacific incl. RoW GROUP sales +10.3% 20 % 58 % 22 % (organic +12.7%) of group sales of group sales of group sales Outperformance 60bps (organic 300bps)
Slide 16: 200bps improvement of profitability up to 6.1% of sales
200bps improvement of profitability up to 6.1% of sales mainly driven by increase in gross profit margin In €m 12M CY 2022 12M FY 2023 YoY Change ❯ Gross Profit margin up 260bps with higher Sales 7,212 7,954 + 10.3% volumes and pass-through of inflation-related COGS (5,567) (5,932) + 6.6% price incr
Slide 17: Net Cash Flow/Sales above target level; NCF improvement excluding factoring
Net Cash Flow/Sales above target level; NCF improvement excluding factoring Net Cash Flow ❯ Net Cash Flow decreased slightly by €14m to in €m and % of sales €205m 219 205 -14 3.0% • increase in profitability and higher funds from operations 2.6% • working capital improvement ⚬ decrease in receivable
Slide 18: Outlook FY 2024
03 Outlook FY 2024
Slide 19: The global market is expected to stagnate with around 90m vehicles in 2024
The global market is expected to stagnate with around 90m vehicles produced in 2024; volume decline in Europe Expected Global Light Vehicle production Expected Global Light Vehicle production in million units, S&P Global Mobility per Feb 2024 in million units, S&P Global Mobility per Feb 2024 -0.4%
Slide 20: HELLA FY 2024 outlook expects slight improvements in sales, earnings and NCF
HELLA FY 2024 outlook expects slight improvements in sales, earnings and NCF in a persistently volatile market environment Outlook for the period January 1, 2024, to December 31, 2024 Based on an assumed LVP production of ~90 million vehicles for the period Sales Between around € 8.1 to 8.6 billion
Slide 21: Key Takeaways
04 Key Takeaways
Slide 22: Key Takeaways
Key Takeaways ❯ Solid performance in FY 2023 and achievement of all targets • €8bn sales accomplished for the first time in HELLA’s history together with significant increase of profitability • strong order intake as constant proof of HELLA’s technology and product offering • dividend proposal at €0
Slide 23: Appendices
APPENDICES
Slide 24: LVP production and Group sales per region
LVP production and Group sales per region 12M CY 2022 12M FY 2023 HELLA Group sales Worldwide 7,212 7,954 in €m 3,939 4,588 Europe +16.5% 1,533 1,624 Americas +5.9% 1,739 1,742 Asia/Pacific & Rest of World +0.1% Light vehicle production Worldwide 82,344 90,321 in 1.000 units 15,827 17,862 Europe +12
Slide 25: Upcoming events
Upcoming events April 17, 2024 Sales Update Q1 FY 2024 April 25, 2024 Q1 FY 2024 April 26, 2024 AGM FY 2023 July 23, 2024 H1 FY 2024 November, 2024 9M FY 2024
Slide 26: 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 27: -ORVIA
-ORVIA (HELLA SS