Schaeffler Ag · XETR:SHA0
Schaeffler — Deutsche Bank dbAccess IAA Cars Conference 2017
24 slides from Schaeffler's conference presentation, Sep 12, 2017
Slide 1: Schaeffler AG – Deutsche Bank dbAccess IAA Cars Conference
Schaeffler AG Deutsche Bank dbAccess IAA Cars Conference September 12, 2017
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 Introduction 2 Our strategy "Mobility for tomorrow" 3 Our key business opportunities 4 Our Equity story 5 Outlook 3 September 12-13, 2017 Schaeffler AG – dbAccess IAA Cars Conference
Slide 4: Schaeffler at a glance – A global automotive and industrial supplier
1 Introduction Schaeffler at a glance – A global automotive and industrial supplier Global Automotive and Industrial supplier of high-precision components and systems Quality, technology and innovation as key success factors Well defined strategy 'Mobility for Tomorrow' with 4 focus areas and
Slide 5: Schaeffler at the IAA 2017 – "Well to wheel"
1 Introduction Schaeffler at the IAA 2017 – "Well to wheel" Schaeffler IAA booth 2017 2 focus areas 1 Eco-friendly drives Variety of powertrain solutions focusing on optimization of the combustion engine and E-Mobility Glass car model displaying our current 1 product portfolio including componen
Slide 6: Schaeffler Accelerated Scenario – The future is electric, but…
2 Our strategy "Mobility for tomorrow" Schaeffler Accelerated Scenario – The future is electric, but… Accelerated Scenario 2030 Key aspects Range ICE Emission target compliance requires Infrastructure more technology and drives powertrain cost with worse cost/benefit compared 30% to HEV Governme
Slide 7: …it is not as simple as that – Emerging variety of powertrain solutions
2 Our strategy "Mobility for tomorrow" …it is not as simple as that – Emerging variety of powertrain solutions 30% 40% 30% ICE HEV BEV ICE and Mild Full P-HEV BEV Micro-Hybrid Hybrid Hybrid E-Motor position P0 P2 P3 P4 P0 P2 P3 P4 P0 P2 P3 P4 P0 P2 P3 P4 P0 P2 P3 P4 Voltage 12 Volt 48 Volt High Volt
Slide 8: CO2 Efficiency of Powertrain solutions – Electricity mix as a key driver
2 Our strategy "Mobility for tomorrow" CO2 Efficiency of Powertrain solutions – Electricity mix as a key driver CO2 Efficiency 1) Key aspects in % 100% Carbon footprint analysis over the lifetime of a car needs to include electricity mix 83% ("Well to Wheel") 76% Battery electric vehicle does no
Slide 9: Strategy "Mobility for tomorrow" – 4 focus areas, 8 pillars, 16 initiatives
2 Our strategy "Mobility for tomorrow" Strategy "Mobility for tomorrow" – 4 focus areas, 8 pillars, 16 initiatives Vision / Mission 4 Focus areas All rights reserved to Schaeffler Technologies AG & Co. KG, in particular in case of grant of an IP right. 8 Strategic pillars 16 Strategic initiatives 9
Slide 10: Strategy "Mobility for tomorrow" – Leveraging on 3 key opportunities
3 Our key business opportunities Strategy "Mobility for tomorrow" – Leveraging on 3 key opportunities 1 E-Mobility 2 Digitalization 3 Industry 4.0 Separate Business Division "E- Group wide Digital Agenda with 4 Separate Organizational Unit Mobility" as of January 1st, 2018 key areas coordinate
Slide 11: E-Mobility as business opportunity – Key achievements
3 Our key business opportunities E-Mobility as business opportunity – Key achievements E-Mobility as key opportunity 1 EUR 500 mn additional investments1) – Hiring 1,200 additional employees 2 Strengthening footprint in Greater China as lead market for E-Mobility 3 Acquisition of Compact Dynamics an
Slide 12: Global, diversified customer reach – 8 series contracts
3 Our key business opportunities Global, diversified customer reach – 8 series contracts North America Europe Greater China 1-Gear Electric Axle Front + Rear Tier 1 SOP Q3/2018 Hybrid Module Tier 1 SOP Q1/2018 2-Gear Electric Axle Rear Tier 1 Hybrid Module SOP Q4/2017 1-Gear Electric Axle with integ
Slide 13: China as the lead market – Series production starting this year
3 Our key business opportunities China as the lead market – Series production starting this year Nominated projects Nominated project schedule 2015 2016 2017 2018 2019 2020 2021 2022 ChangAn P2 Hybrid Module: Project P2 eAxle1 Vehicle data: 60km E-range, 8s (0~100kph), 1.6L/100km Fuel consumption eA
Slide 14: Business Division E-Mobility
3 Our key business opportunities Aligning key activities – New business division becoming effective January 1st, 2018 Today As of January 1st, 2018 Market Pre- E-Axle develop- Project ment Project E-Axle Purchasing Culture CN EU Culture Proto- Business Division typing HZA Customer Simulation EU E-Mo
Slide 15: Financial performance – Delivering on building blocks
4 Our Equity story Financial performance – Delivering on 3 building blocks Building blocks Key objectives Growth Outperformance Consistent growth above markets 1 in Automotive Above-average EBIT margin Margin Profitable growth Margin upside CORE program in execution and sustainable 2 in Indu
Slide 16: Outperformance 2017 – 4%-pts. above Market expected
4 Our Equity story 1 Outperformance 2017 – 4%-pts. above Market expected Outperformance Q1 2016 – Q4 2017E Key aspects ø 2010 – 2015: +5% Automotive business Target: outperformance 1.9%-pts in Q2 2017 3.3% +4%-pts above 4% after 1.4%-pts in Q1 2017 market 2.4% 1.9% Negative impact from Automotiv
Slide 17: E-Mobility – Above average market growth to continue
4 Our Equity story 1 E-Mobility – Above average market growth to continue Our growth formula Automotive Key aspects Production volume Ø Content per Vehicle The market is moving towards our growth growth accelerated scenario (2025: 50% ICE, 35% HEV, 15% BEV) øX 2010 – 2015: x1.51) + ICE cars +5% Ø
Slide 18: Outperformance in Automotive – Why do we believe in continued outperformance?
4 Our Equity story 1 Outperformance in Automotive – Why do we believe in continued outperformance? excl. Aftermarket, Heavy Duty & Motorcycles Content per Vehicle 1) in EUR 1 ICE 2 HEV 3 BEV x 2.5 x 1.5 ~150 x 4.0 ~125 ~100 ~90 ~60 ~25 2016 2025 2016 2025 2016 2025 90 mn 56 mn 3 mn 39 mn 0.5 mn 16 m
Slide 19: Industrial Division – EBIT margin to improve further
4 Our Equity story 2 Industrial Division – EBIT margin to improve further Our EBIT targets Industrial Key aspects in EUR mn ~ 400 Industrial division on track to achieve EBIT margin target for 2018 of 10-11% ~ 40 ~ 320 Growth ~ 60 Efficiency Mid-term target of 11-13% EBIT margin remains in place
Slide 20: Strong Free Cash Flow – Balanced approach
4 Our Equity story 3 Strong Free Cash Flow – Balanced approach Our Cash Flow formula Use of Cash Strong cash flow generation from operating + Operating Cash Flow1) business and 3 main uses of cash: Cash Annual Dividend pay-out 30-40% of net +/- Δ Working Capital income3) (Priority No. 1) generat
Slide 21: The way forward – Becoming more transparent
4 Our Equity story The way forward – Becoming more transparent 1 Optimizing Regular reporting of Order intake Automotive OE and our disclosure Order book Industrial Semi annual disclosure starting in 2018 2 Intensifying New CFO our communication New Head of IR 3 Schaeffler Managing expectati
Slide 22: Schaeffler in India – Establishing one strong Schaeffler India entity
4 Our Equity story Schaeffler in India – Establishing one strong Schaeffler India entity Target structure Key aspects Schaeffler AG is present in India since 1962, one listed entity (51% Schaeffler AG) and Schaeffler AG two wholly owned subsidies (100%) 100% 100% Merger between the three Indian
Slide 23: Financial Ambitions and Guidance 2017 – Our commitment
5 Outlook Financial Ambitions and Guidance 2017 – Our commitment Guidance 2017 Financial Ambitions 2020 New Guidance for 2017 as of June 26, 2017 Sales Growth Ø 4-6% p.a. Sales growth 4-5% w/o external growth, FX-adjusted FX-adjusted EBIT Margin 12-13% in 2020 Before one-off effects, w/o external gr
Slide 24: IR Contact
IR Contact Investor Relations Financial Calendar 9M 2017 results: November 8, 2017 Phone: + 49 9132 82 4440 FY 2017 results: March 7, 2018 Email: ir@schaeffler.com Q1 2018 results: May 7, 2018 Web: www.schaeffler.com/ir H1 2018 results: August 6, 2018 24 September 12-13, 2017 Schaeffler AG – dbAcces
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