Schaeffler Ag · XETR:SHA0
Schaeffler — Investor Day (September 2018)
14 slides from Schaeffler's investor day presentation, Sep 20, 2018
Slide 1: 5.1 CFO Presentation
5.1 CFO Presentation Dietmar Heinrich CFO September 20, 2018 Capital Markets Day 2018 Berlin
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 Key Actions to Further Improve Financial Performance 3 Outlook and Summary 3 September 20, 2018 Capital Markets Day 2018 – 5.1 CFO presentation
Slide 4: Dietmar Heinrich – Today's Speaker
1 Introduction Dietmar Heinrich – Today’s Speaker Dietmar Heinrich (55) CFO 1995 Joined Schaeffler 2001 Commercial Director at Schaeffler Korea in Seoul / Korea 2006 Vice President Finance for Asia/Pacific in Shanghai / China 2009 Vice President of the Business Unit Linear Technology (Divisi
Slide 5: Four Key Action Points to Improve Group Performance
2 Key Actions to Further Improve Financial Performance Four Key Action Points to Improve Group Performance Adj. EBIT Actions to improve profitability in the Schaeffler Group: In % of sales 13.0% 12.8% 12.6% 12.6% 12.2% 12.1% 1• Establishment of Shared Services Center (SSC) in Poland to achieve 11.0%
Slide 6: Establishment of Shared Services Center – Status
2 Key Actions to Further Improve Financial Performance 1 Establishment of Shared Services Center – Status 6 Key Parameters Target 1 Focus on region Europe 2 Multi-functional SSC ► Establishment of a state-of-the-art multi-functional Shared Services Center in Wroclaw (Poland) 3 'Captive' SSC Schaeffl
Slide 7: Establishment of Shared Services Center – Business Case
2 Key Actions to Further Improve Financial Performance 1 Establishment of Shared Services Center – Business Case Expected EBIT Impact Headcount Development 800 in EUR mn Total HCO ca. 22 of SSC ca. 6 Hiring ca. -3 Reduction ca. -8 ca. -8 -39 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 202
Slide 8: Dissolution of Bearing and Components Technologies – Status
2 Key Actions to Further Improve Financial Performance 2 Dissolution of Bearing and Components Technologies – Status Divisionalization of Global Plant Network Target Q1 2018 1.1.2019 Assignment of plants to divisions and efficiency improvement through headcount reduction AOEM 37 AOEM 56 BCT/Operat
Slide 9: Dissolution of Bearing and Components Technologies – Business Case
2 Key Actions to Further Improve Financial Performance 2 Dissolution of Bearing and Components Technologies – Business Case Expected EBIT Impact Headcount Development in EUR mn ca. 60 Targeted re- 950 Industrial duction level ca. EUR 27 mn Automotive OEM ca. EUR 33 mn 2018 2019 2020 ✓ HCO reduction
Slide 10: Optimization of Working Capital – Status
2 Key Actions to Further Improve Financial Performance 3 Optimization of Working Capital – Status Working Capital Development1) Target in EUR bn ► Optimization of cash flow generation and capital employed 2.8 2.7 2.8 2.7 2.6 2.7 2.8 2.8 2.5 2.3 2.2 Aspects 2.5 2.3 2.1 Trade 2.3 2.3 2.2 2.3 2.1 ► Imp
Slide 11: Optimization of Working Capital – Business Case
2 5 Key Actions Working to Further Improve Financial Performance Capital 3 Optimization of Working Capital – Business Case Development of Accounts Receivables and Accounts Payables One-off cash inflow in EUR bn Harmonization of payment terms and logic Growth of receivables and payables Estimated
Slide 12: Leverage and Financing – A Lever for EPS Improvement
2 Key Actions to Further Improve Financial Performance 4 Leverage and Financing – A Lever for EPS Improvement Net Financial Debt and Gearing Ratio Net financial debt Target in EUR mn Gearing ratio Establishment of investment grade financing structure and reduction -4% of interest costs 2,956 2,833
Slide 13: Leverage and Financing – Business Case
2 Key Actions to Further Improve Financial Performance 4 Leverage and Financing – Business Case Maturity Profile of Schaeffler AG Extension of maturity of existing bank term loan and RCF in EUR mn ► Switch to improved terms and conditions in progress ► New financing structure provides potential fo
Slide 14: Outlook and Summary: CFO – Key Messages
3 7 Outlook and Summary CFO – Key Messages 1 Focus on continuously improving the Group performance Roll out of Shared Services Center contributing to operational excellence 2 going forward Continous focus on Dissolution and reallocation of BCT plants to improve efficiency and 3 profitability and t