Schaeffler Ag · XETR:SHA0

Schaeffler — 17th German Corporate Conference, Kepler Cheuvreux 2018

25 slides from Schaeffler's conference presentation, Jan 17, 2018

  1. Slide 1: Schaeffler AG 17th GCC Kepler Cheuvreux

    Schaeffler AG 17th GCC Kepler Cheuvreux Jan 17, 2018 Frankfurt

  2. 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

  3. Slide 3: Agenda

    Agenda 1 Schaeffler at a glance 2 Our Financial Highlights 2017 3 Our transformation going forward 4 Summary 3 Schaeffler AG - 17th German Corporate Conference Kepler Cheuvreux

  4. Slide 4: Schaeffler at a glance – A global automotive and industrial supplier

    1 Schaeffler at a Glance Schaeffler at a glance – A global automotive and industrial supplier  Global Automotive and Industrial supplier of high-precision components and mechatronic systems  Quality, technology and innovation as key success factors  Well defined strategy 'Mobility for Tomorrow' 

  5. Slide 5: Sales Growth 2017 – Strong 4th quarter

    2 Our Financial Highlights 2017 Sales Growth 2017 – Strong 4th quarter Indicative figures Group sales Q1 2016 - Q4 2017 Key aspects in EURm  FY 2017 sales growth of 5.9% exceeding guidance of 4-5%1) with all divisions and regions contributing 3,574 3,540 3,343 3,369 3,265 3,361 3,472 3,434  Strong

  6. Slide 6: Guidance FY 2017 – Sales growth overachieved

    2 Our Financial Highlights 2017 Guidance FY 2017 – Sales growth overachieved EBIT margin 2017: FCF 2017: Sales Sales growth 2017: EBIT2) Free Cash Flow3) 11-12% before one- ̴ EUR 500m 4-5% FX-adjusted in EUR mn in EUR mn off effects in EUR mn ex M&A 3,574 3,472 3,540 3,434 435 416 345 333 41 -130 Q1

  7. Slide 7: Automotive business – Strong Q4 with 7.2%-pts. outperformance

    2 Our Financial Highlights 2017 Automotive business – Strong Q4 with 7.2%-pts. outperformance Indicative Outperformance Q1 2016 - Q4 2017 FY 2017 Target: Key aspects figures FY 2017 +4% pts. above market +3.6%-pts.  Significant improvement of outperformance throughout the above market year 2017 7.2

  8. Slide 8: Industrial business – Strong Q4 with 9.0% FX-adjusted growth

    2 Our Financial Highlights 2017 Industrial business – Strong Q4 with 9.0% FX-adjusted growth Indicative Key aspects figures Industrial sales Q1 2016 - Q4 2017 in EURm  Industrial back to growth with FY 2017 sales growth of 5.6%1)  Strong Q4 2017 with 9.0% sales growth1) 808 791 769  China with 32

  9. Slide 9: Guidance 2018 to be released in March 2018 – Financial Ambitions 2020 confirmed

    2 Our Financial Highlights 2017 Guidance 2018 to be released in March 2018 – Financial Ambitions 2020 confirmed Ambitions for 2020 Sales Growth Ø 4-6% p.a. w/o external growth, FX-adjusted Guidance for 2017 Actual figures 2017 as of June 26, 2017 EBIT Margin 12-13% in 2020 Before one-off effects, w/

  10. Slide 10: Outlook 2018 – Macro environment with increasing complexity

    3 Our transformation going forward Outlook 2018 – Macro environment with increasing complexity GDP Wage inflation + - FX Raw materials - - 10 Schaeffler AG - 17th German Corporate Conference Kepler Cheuvreux

  11. Slide 11: Outlook 2018 – Even faster evolution in our markets

    3 Our transformation going forward Outlook 2018 – Even faster evolution in our markets Automotive Industrial CO2 Reduction/ Autonomous Driving Industry 4.0 Robotics Zero Emission Connected Cars Shared Mobility Digitalization Artificial Intelligence 11 Schaeffler AG - 17th German Corporate Conference

  12. Slide 12: Our way forward – Accelerating our transformation

    3 Our transformation going forward Our way forward – Accelerating our transformation Schaeffler Group Key aspects Today 1 "Mobility for tomorrow" strategy concept established 2 3 divisions from January 1st onwards (Automotive Aftermarket becoming a separate division) Sustainable profitable growth 3

  13. Slide 13: Strategy "Mobility for tomorrow" – Preferred technology partner for our customers

    3 Our transformation going forward 1 Strategy "Mobility for tomorrow" – Preferred technology partner for our customers Vision / Mission 4 Focus areas 1 We want to be the preferred technology partner for our 8 Strategic pillars customers. 20 Strategic initiatives 13 Schaeffler AG - 17th German Corpor

  14. Slide 14: Organizational development – Aligning our divisional structure

    3 Our transformation going forward 2 Organizational development – Aligning our divisional structure New business structure as of Jan 1st 2018 Four main locations 63%1) 14%1) 23%1) Divisions Automotive Automotive Industrial OEM Aftermarket Business Divisions Engine systems Europe Europe Transmission

  15. Slide 15: Deploying our strategy – Agenda plus One with strategic initiatives

    3 Our transformation going forward 3 Deploying our strategy – Agenda 4 plus One with 20 strategic initiatives Agenda 4 plus One Initiatives 1 Customer Excellence 2 E-Mobility 17 3 Industry 4.0 2) 17 Global Supply Chain 4 Quality for Tomorrow 20 18 5 Global Footprint 6 Factory for Tomorrow 7 Shared S

  16. Slide 16: Initiative E-Mobility – Implementing our E-Mobility strategy

    3 Our transformation going forward Initiative 2 E-Mobility – Implementing our E-Mobility strategy Category: Customer focus Dr. Jochen Schröder - New Head of E-Mobility Division Key aspects ► Separate business division for E-Mobility established as of Jan 1, 2018, covering hybrid modules and e-axles

  17. Slide 17: Initiative Factory for Tomorrow – Creating a state-of-the-art factory network

    3 Our transformation going forward Initiative 6 Factory for Tomorrow – Creating a state-of-the-art factory network Category: Operational excellence Factory for Tomorrow Key aspects ► Establishment of a best-in-class factory to improve operational efficiency in direct and indirect areas ► Modular lay

  18. Slide 18: Initiative Shared Services – Increasing our efficiency in corporate services

    3 Our transformation going forward Initiative 7 Shared Services – Increasing our efficiency in corporate services Category: Operational excellence 6 key parameters Key aspects 1 Focus on region Europe 2 Multifunctional SSC ► Establishment of a state-of-the-art Shared Service Center for most function

  19. Slide 19: Initiative Working Capital – Cash management improvement under way

    3 Our transformation going forward Initiative 9 Working Capital – Cash management improvement under way Category: Financial flexibility Working Capital Key aspects Sales and Quote ► Optimization of cash flow generation and reduction of capital Management employed Cash Credit and Risk ► Purchase-to-P

  20. Slide 20: Initiative Leadership and Corporate Values – A key success factor going forward

    3 Our transformation going forward Initiative 10 Leadership and Corporate Values – A key success factor going forward Category: Leadership & Talent Management Leadership & Corporate Values Key aspects ► Holistic leadership framework (values, principles, essentials) developed to improve leadership pe

  21. Slide 21: Initiative Program CORE – Further improving our Industrial EBIT margin in 2018

    3 Our transformation going forward Initiative 13 Program CORE – Further improving our Industrial EBIT margin in 2018 Expected EBIT Impact – CORE Wave I Completion Expected EBIT Impact – CORE Wave II revised Completion in mn EUR Ratio: 100% in mn EUR Ratio: 33% +23 +44 59 44 17 35 40  7 [11] [48] [6

  22. Slide 22: One Schaeffler approach - We accelerate our transformation

    4 Summary One Schaeffler approach - We accelerate our transformation Our approach Our strategy One set of corporate values Identification One „One action plan Commitment Mobility for One Schaeffler" consistent Performance tomorrow compensation system Passion One global brand 22 Schaeffler AG - 17th

  23. Slide 23: Summary and Conclusion

    4 Summary Summary and Conclusion 1 FY 2017 sales growth over-achieved, guidance 2017 confirmed for other KPIs 2 Outperformance target in Automotive achieved, Industrial back to growth 3 2020 Financial Ambitions confirmed Sustainable, long-term 4 Excellence program Agenda 4+1 on track – Transformatio

  24. Slide 24: Upcoming events 2018

    Financial Calendar Upcoming events 2018 Jan 17 Kepler Cheuvreux Conference Mar 7 FY 2017 Earnings Release – FY 2018 Guidance Apr 20 AGM May 7 Q1 2018 Earnings Release Aug 6 H1 2018 Earnings Release Sept 20 Capital Markets Day - Germany Nov 7 9M 2018 Earnings Release 24 Schaeffler AG - 17th German Co

  25. Slide 25: IR Contact

    IR Contact Contacts Renata Casaro +49 9132 82 88125 renata.casaro@schaeffler.com Niels Fehre, CFA +49 9132 82 85805 niels.fehre@schaeffler.com Jens-Philipp Briemle +49 9132 82 86377 jens-philipp.briemle@schaeffler.com www.schaeffler.com/ir 25 Schaeffler AG - 17th German Corporate Conference Kepler C

Schaeffler — 17th German Corporate Conference, Kepler Cheuvreux 2018 on 6ix