Hella Gmbh & Co. Kgaa · XETR:HLE

Hella Gmbh & Co. Kgaa — H1 FY 2019/20 Earnings Presentation

22 slides from Hella Gmbh & Co. Kgaa's earnings presentation, Jan 14, 2020

  1. Slide 1: HELLA Investor Update H1 FY 2019/20

    HELLA Investor Update H1 FY 2019/20 Conference Call on January 14, 2020 Dr. Rolf Breidenbach, CEO Bernard Schäferbarthold, CFO HF-7761DE_C (2012-12)

  2. Slide 2: Disclaimer

    Disclaimer 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 co

  3. Slide 3: Outline

    HELLA Investor Update H1 FY 2019/20 Outline ■ HELLA Financial Highlights H1 FY 2019/20 ■ HELLA Financial Results H1 FY 2019/20 ■ Outlook ■ Q&A 3 HELLA Investor Update H1 FY 2019/20, Conference Call on January 14, 2020

  4. Slide 4: Expected negative sales and EBIT development in H1 FY 2019/20

    Expected negative sales and EBIT development in H1 FY 2019/20 Financial Highlights H1 FY 2019/20 ■ HELLA Group currency and portfolio adjusted sales declined by Sales 3.2% YoY to 3.3 bill. EUR ■ Adj. Gross Profit margin at 25.9% (-1.1%-points YoY) Profitability ■ Adj. EBIT -38.9 mill. EUR (-13.1% Yo

  5. Slide 5: Automotive still outperforms LVP on a global basis

    Automotive still outperforms LVP on a global basis Financial Highlights H1 FY 2019/20 HELLA Automotive external sales by region (in EUR millions) Global Europe North & South America Asia & RoW 2.841 2.795 1,758 672 481 484 2.623 1,629 1,639 462 1,560 602 2.406 -1.6% 404 +0.5% +8.0% -6.8% 533 +4.2% +

  6. Slide 6: Outline

    HELLA Investor Update H1 FY 2019/20 Outline ■ HELLA Financial Highlights H1 FY 2019/20 ■ HELLA Financial Results H1 FY 2019/20 ■ Outlook ■ Q&A 6 HELLA Investor Update H1 FY 2019/20, Conference Call on January 14, 2020

  7. Slide 7: HELLA top line with expected decline in H1 FY 19/20

    HELLA top line with expected decline in H1 FY 19/20 Financial Results H1 FY 2019/20 HELLA Group sales (in EUR millions) Comment ■ Currency (+0.9pp) and portfolio adjusted 3,550 (-4.4pp) decrease of HELLA Group at 3.2% 158 to 3.283 mill. EUR -6.7% ■ Reported sales of HELLA Group -109 -3.2% 3,313 decl

  8. Slide 8: Adj. GPM decreased despite material and personnel cost savings

    Adj. GPM decreased despite material and personnel cost savings due to lower growth dynamics and volatility in call offs Financial results H1 FY 2019/20 Adj. Gross Profit Highlights EUR millions ■ Adj. Gross Profit decreased by 58 915 855 842 857 mill. EUR (-6.4%) to 857 mill. EUR -13 +73 -58 − Autom

  9. Slide 9: Continuous high R&D expenses to prepare new customer projects

    Continuous high R&D expenses to prepare new customer projects and develop future technologies Financial results H1 FY 2019/20 Adj. R&D expenses Highlights EUR millions ■ Adj. absolute R&D expenses 315 330 increased by 15 mill. EUR (+4.7% 285 261 3.4% +15 YoY) to 330 mill. EUR; main +31 drivers: +24

  10. Slide 10: SG&A costs declining due to continuous cost savings

    SG&A costs declining due to continuous cost savings Financial results H1 FY 2019/20 Adj. SG&A expenses Highlights EUR millions ■ Adj. SG&A costs decreased (-35 359 mill. EUR, -10.5%) to 295 mill. EUR 329 3.4% 300 295 − Decrease in logistic costs (-26 mill. -58 +29 -35 EUR) with realized savings pote

  11. Slide 11: Continuous focus on structural cost measures, declining headcount development

    Continuous focus on structural cost measures, declining headcount development Financial Highlights H1 FY 2019/20 Headcount per functional Area Highlights -4.2% ■ Overall headcount decreased by 39,498 2,356 37,847 4.2%: − Headcount in production 2,010 4,052 3,928 7,706 7,828 Sales (-5.1%), sales and

  12. Slide 12: Adjusted EBIT below prior-year's level despite improved cost efficiency

    Adjusted EBIT below prior-year’s level despite improved cost efficiency. Margin pressure from high R&D and lower GPM Financial results H1 FY 2019/20 Adjusted EBIT Highlights EUR millions 280 296 ■ Adjusted EBIT decreased by 39 268 257 mill. EUR (-13.1%) to 257 mill. EUR: +12 +16 -39 − decrease in ad

  13. Slide 13: P&L including reconciliation

    P&L including reconciliation Financial results H1 FY 2019/20 FY comparison Comments HELLA GROUP ■ Reported EBIT H1 19/20 H1 FY 18/19 H1 FY 19/20 in EUR mill. decreased by 306.4 mill. Gross Profit reported 972.2 832.4 EUR mainly due to Adjustments 56.9 24.7 adjusted 915.3 857.2 wholesale profit in FY

  14. Slide 14: Q2 FY 19/20 Automotive business with lower growth dynamics and margin pressure

    Q2 FY 19/20 Automotive business with lower growth dynamics and margin pressure Financial results H1 FY 2019/20 Quarterly comparison Comments ■ Automotive sales nearly on same level as Q2 FY 18/19 Q2 FY 19/20 Q2 FY 18/19. Lower sales in Europe were compensated by higher sales in NSA and Asia & RoW 5.

  15. Slide 15: Improvement of Adj. Free Cash Flow with strong increase in Cash Conversion ratio

    Improvement of Adj. Free Cash Flow with strong increase in Cash Conversion ratio to 50.6% Financial results H1 FY 2019/20 Adj.1 FCF from operating activities Highlights EUR millions +17.5% ■ Adj. Free Cash Flow from +45.4% +2.9% 130 operating activities increased by 108 111 19 mill. EUR to 130 mill.

  16. Slide 16: Automotive segment with sales decline, profitability under pressure

    Automotive segment with sales decline, profitability under pressure Financial results H1 FY 2019/20 +9.1% +8.1% -1.6% Automotive Sales 2,864 2,817 ■ Decline of 1.6% with lower production ramp-ups, 2,650 2,430 +8.6% 1,247 +2.9% expected EOPs and high comparable basis +7.3% 1,148 1,283 1,070 − Demand

  17. Slide 17: Non Automotive segments with negative sales development

    Non Automotive segments with negative sales development, profitability supported by savings program and mix effects Financial results H1 FY 2019/20 -3.8% Aftermarket 336 +14.2% 323 ■ Total sales decline of 3.8%: negative workshop 29.0 25.4 business due to still high comparable basis; IAM 9.0 demand

  18. Slide 18: Outline

    HELLA Investor Update H1 FY 2019/20 Outline ■ HELLA Financial Highlights H1 FY 2019/20 ■ HELLA Financial Results H1 FY 2019/20 ■ Outlook ■ Q&A 18 HELLA Investor Update H1 FY 2019/20, Conference Call on January 14, 2020

  19. Slide 19: Market outlook characterized by uncertainties and continuous downward trend in predictions

    Market outlook characterized by uncertainties and a continuous downward trend in predictions, further revisions possible Market Outlook Unstable market environment IHS AS OF TODAY: Global Light Vehicle Production Development of Global Light Vehicle Production Comparison of IHS LVP estimates FY 2019/

  20. Slide 20: Despite declining industry trend, HELLA still expects to outperform the market

    Despite declining industry trend and further high uncertainties, HELLA still expects to outperform the market Company Guidance Against the backdrop of declining sector-specific framework and high insecurities HELLA is currently expecting the following for FY 2019/20: Currency and portfolio ■ In the

  21. Slide 21: Outline

    HELLA Investor Update H1 FY 2019/20 Outline ■ HELLA Financial Highlights H1 FY 2019/20 ■ HELLA Financial Results H1 FY 2019/20 ■ Outlook ■ Q&A 21 HELLA Investor Update H1 FY 2019/20, Conference Call on January 14, 2020

  22. Slide 22: Thanks for your attention

    Thanks for your attention Dr. Kerstin Dodel, CFA Head of Investor Relations Office phone +49 2941 38 - 1349 Facsimile +49 2941 38 - 471349 Mobile phone +49 174 3343454 E-Mail kerstin.dodel@hella.com Internet www.hella.com

HELLA GmbH & Co. KGaA — H1 FY 2019/20 Earnings Presentation on 6ix