Slide 1: Analysts' Conference on FY2020 figures
Analysts‘ Conference on FY2020 figures Dr. Stefan Wolf, CEO | Thomas Jessulat, CFO March 30, 2021
Slide 2: FY 2020 Headlines
FY 2020 Headlines Top line decrease of -14.3% to EUR 1,480m, organically down by -11.7%, while global LV production declined by 16 % Despite pandemic impact, EBITDA on previous year’s level at EUR 181m EBIT positive at EUR 27.7m, EBIT margin at 1.9%; results influenced by various factors Operating f
Slide 3: The pandemic at ElringKlinger: prevention and cohesion
FY 2020 The pandemic at ElringKlinger: prevention and cohesion • ElringKlinger has already taken rigorous preventive measures at a very early stage, e.g.: – Reporting mechanism on local and on Group level – Travel and visit ban – Internal coronavirus rules of conduct including cleaning routine – Can
Slide 4: Two major steps in strategic development of fuel cell business
FY 2020 Two major steps in strategic development of fuel cell business 1 2 Long-term partnership with Airbus to develop Strategic alliance with Plastic Omnium by a a hydrogen-based fuel cell stack for airplanes joint company on fuel cell stacks and components Shared ambition: Shared vision: Reaching
Slide 5: Markets and strategy
Markets and strategy Klinger )
Slide 6: Dynamic rebound in China, longer recovery in Europe and USA
Markets Dynamic rebound in China, longer recovery in Europe and USA Monthly passenger car sales 2020 vs. 2019 – in % China Europe USA 12 7 9 8 7 8 6 6 5 2 1 0 0 -2 -4 -3 -4 -7 -7 -7 -7 -12 -12 -20 -18 -19 -24 -29 -27 -38 -48 -52 -46 -57 -78 -82 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Slide 7: Autos overall a growing market – irrespective of pandemic
Markets Autos overall a growing market – irrespective of pandemic Global light vehicle production per drivetrain – in million units Battery/ Fuel cell Hybrid ICE CAGR +1.3% +13% -16% +5% 99 101 102 102 96 97 CAGR 89 91 93 85 89 21 +24% 2 13 5 75 4 2 11 7 27 CAGR 41 +20% 82 65 69 55 CAGR 40 -6% 2020
Slide 8: Strong potential for EV cars particularly in China and Europe
Markets Strong potential for EV cars particularly in China and Europe LV production by region – in million units North America Europe China 32.6 28% 24.7 4% 3% 23.6 5% 21.2 20.9 7% 2% 6% 16.3 16.5 16.6 31% 4% 50% 3% 4% 13.0 17% 15% 6% 3% 24% 93% 89% 92% 51% 94% 81% 91% 59% 22% 17% 2019 2020 … 2030 2
Slide 9: Roadmap for continuing transformation
Group strategy Roadmap for continuing transformation Present Future Managing the Capitalizing • High dependency on ICE technology growth in the strong position • Established customers classical business in stable market Developing new • Mainly established customers products within • Contributing the
Slide 10: Level of car production including an ICE more or less stable
Group strategy Level of car production including an ICE more or less stable Global light vehicle production per drivetrain – in million units Hybrid ICE Future CAGR -0.7% +11% Capitalizing -17% strong position 87 80 83 83 83 83 83 83 83 82 81 in stable market 5 72 7 11 27 41 82 69 65 55 40 2019 2020
Slide 11: New technologies will drive growth of global auto production
Group strategy New technologies will drive growth of global auto production Global light vehicle production per drivetrain – in million units Battery/ Fuel cell Hybrid Future Capitalizing strong position in stable market CAGR +21.5% 61 62 58 53 47 21 Unlocking +58% 40 strong market 34 +35% 27 13 pot
Slide 12: Innovative solutions based on proven know-how in classical business
Group strategy Innovative solutions based on proven know-how in classical business Fuel cell Battery Electric Structural technology technology drive units lightweighting Classical business Analysts’ Conference | March 30, 2021 12
Slide 13: Ramp-up of hydrogen applications over the upcoming decade
Key strategic area: Fuel cell technology Ramp-up of hydrogen applications over the upcoming decade 2021 2025 2030 2035 2040 2045 2050 Trucks Coaches Urban buses Urban delivery van Taxi SUV Large passenger car Mid-size long range car Mid-size short range car Compact urban car Forklifts Regional train
Slide 14: Offering stacks and components via EKPO Fuel Cell Technologies
Key strategic area: Fuel cell technology Offering stacks and components via EKPO Fuel Cell Technologies • Leading technology with best-in-class power density • After the closing of the strategic partnership with Plastic Omnium on March 1st, 2021, new joint company EKPO Fuel Cell Technologies started
Slide 15: ElringKlinger awarded new large-scale battery parts order
Key strategic area: Battery technology ElringKlinger awarded new large-scale battery parts order • Offering systems and modules as well as components • First series production started in 2012 • New location in Neuffen, close to Dettingen/Erms, opened in January 2021 • New large-scale contract for ce
Slide 16: Drivetrain business unit in production ramp-up phase
Key strategic area: Electric drive units Drivetrain business unit in production ramp-up phase • Based on strategic cooperation with hofer powertrain since 2017 – Minority stake in parent company hofer AG – Majority stake in producing entities (“hofer powertrain products”) • Targeting high-end sports
Slide 17: Structural lightweighting – independent of drive technology
Key strategic area: Structural lightweighting Structural lightweighting – independent of drive technology • Providing sophisticated solutions for chassis of a car, combining maximum functionality with minimum weight • High-end production technology brings together high-pressure metal forming and pla
Slide 18: Transformation and innovative product range drive content per car
Group strategy Transformation and innovative product range drive content per car Content per car – in EUR ICE NON-ICE Cylinder-head Cell contacting gasket systems 3-7 100 - 240 Cylinder-head Bipolar plates* gasket 3-7 350 - 500 Cam cover Media module 15 - 20 20 - 40 Exhaust gas Underbody battery und
Slide 19: Strong order pipeline for new technologies
Group strategy Strong order pipeline for new technologies Current sales split Group transformation pathway FY 2020 100% Non-ICE Non-ICE 19% ICE 81% 0% ICE 2020 2025e 2030e New orders Sales projection 2019 – Feb 2021 Structural Lightweighting (by annual turnover) EDU Fuel cell Battery ICE 38% 62% Non
Slide 20: Financials
Financials Klinger )
Slide 21: Currency effects influencing orders and sales
FY 2020: Orders and sales Currency effects influencing orders and sales Order intake – in EUR million Order backlog – in EUR million (FX-adj.: -9.6%) (FX-adj.: +4.6%) -14.6% +0.3% 1,735 1,737 1,030 1,033 1,483 777 2018 2019 2020 2018 2019 2020 Sales – in EUR million Global LV production – in million
Slide 22: Aftermarket and E-Mobility with increasing shares of sales
FY 2020: Sales Aftermarket and E-Mobility with increasing shares of sales Sales by segment – in EUR million Share of total sales – in % Engineered Others Plastics 4 (9) 108 (118) <1% (<1%) 7% (7%) Aftermarket 182 (173) 12% (10%) Lightweighting/Elastomer : 29% (29%) Metal Sealing Systems & Dr
Slide 23: Impacted by pandemic, but more resilient than overall market
Sales by region Impacted by pandemic, but more resilient than overall market Growth LV production vs. sales ElringKlinger (FX adjusted) – in % Sales by region – in EUR million resp. % Europe North America Asia -11.7% -22.0% Market EK FY 2020 -14.6% -11.4% -9.7% -20.1% Market EK Market EK FY 2020 FY
Slide 24: Diversified customer base for wide range of products
Sales by customer Diversified customer base for wide range of products Sales by customer group – in % of total sales American 9% OEMs Other 21% (20%) 29% (31%) 6% 3% 3% EUR 1,480m 10% German OEMs 7% 21% (21%) 1% 1% 4% Aftermarket 12% (10%) French OEMs Tier 1 2% (4%) 14% (14%) Analysts’ Conference |
Slide 25: Despite Covid-19 impact, EBITDA on prior year's level
Earnings Despite Covid-19 impact, EBITDA on prior year’s level EBITDA/margin – in EUR million/% of total sales EBIT – in EUR million -54.7% +0.2% 197 181 181 61 +25 -24 -9 -19 11.6 10.5 12.3 +47 -12 28 -42 2018 2019 2020 Real 2019 estate Corona Efficiency Fuel cell Impairm. Impairm./ Provi- 2020 sal
Slide 26: Triple-digit operating free cash flow for the second time in a row
Cash flow statement and balance sheet Triple-digit operating free cash flow for the second time in a row Capex/ratio – in EUR million/% of total sales Net working capital/ratio – in EUR m/% of sales 164 568 -7% -38% 433 403 92 57 33.4 27.2 25.0 9,6 5,3 3,9 2018 2019 2020 2018 2019 2020 Operating fre
Slide 27: Net debt reduced by more than EUR 330m within 21 months
Balance sheet Net debt reduced by more than EUR 330m within 21 months Net debt/ Net debt/EBITDA – in EUR million 796 724 700 682 -22.9% 595 603 580 4.7 512 3.7 459 3.3 2.5 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 • Disciplined capex and optimized net working capital resulted in significant debt reductio
Slide 28: Again strong Aftermarket performance
Segments Again strong Aftermarket performance Sales – in EUR million EBIT margin – in % of segmental sales Original Equipment (OE) Aftermarket -16.7% +6% 1,408 1,423 159 173 182 1,186 21.4 3.6 15.6 17.6 0.4 -2.0 2018 2019 2020 2018 2019 2020 Engineered Plastics Others -8% 118 117 108 -11% 16.6 14 14
Slide 29: Continuing improvement efforts into the next phase
Financial strategy Continuing improvement efforts into the next phase Phase 1 Phase 2 (2019-2021) (Beyond 2021) Global Efficiency Program Future Performance Plan Optimizing Disciplined Shaping the Improving Improving capital net working capex transformation earnings efficiency capital approach proce
Slide 30: Outlook
Outlook Klinger )
Slide 31: Global LV production will reach pre-pandemic level in 2023
Market outlook Global LV production will reach pre-pandemic level in 2023 Light vehicle production by region – in million units Recovery 21.2 20.1 20.9 21.3 16.6 19.0 Recovery Recovery 24.7 23.6 25.0 16.3 16.2 16.8 2019 20 21 22 … 27 2028 13.0 Europe 2019 20 21 2022 2019 20 2021 North America Recove
Slide 32: FY2021 growth driven by recovery in North America and Europe
Market outlook FY2021 growth driven by recovery in North America and Europe Light vehicle production by region – in million units +6% +14% +24% 25.0 23.6 16.6 19.0 16.2 13.0 2020 2021 2020 2021 2020 2021 North America Europe China +13% 84.6 74.6 2020 2021 Global Source: IHS (03/2021), ElringKlinger
Slide 33: Outlook for key indicators
Group outlook Outlook for key indicators 2021 Midterm Organic growth approximately at Organic growth outpacing global Sales level of global LV production LV production growth EBIT margin Around 4 to 5% Gradually improving ROCE Visible year-on-year improvement Steady annual improvement Positive in do
Slide 34: Appendix
Appendix Klinger )
Slide 35: Structural overview
ElringKlinger Structural overview Original Equipment 80% Sales: EUR 1,186 million Aftermarket of Group sales Employees: 8,498 12% Sales: EUR 182 million of Group sales Employees: 256 Exhaust Gas Purification Others E-Mobility <1% <1% 5% Shielding Metal Engineered Plastics Technology 25% Sealing Syst
Slide 36: Consolidated income statement
Group – FY 2020 Consolidated income statement 2020 2019 Sales revenue 1,480 1,727 Cost of sales -1,196 -1,402 Gross profit 285 325 Gross margin in % 19.2 18.8 Selling expenses -107 -133 General and administrative expenses -73 -85 Research and development costs -64 -64 Other operating income 10 34 Ot
Slide 37: Consolidated statement of financial position
Group – FY 2020 Consolidated statement of financial position As at Dec As at Dec As at Dec As at Dec Assets Liabilities and equity 31, 2020 31, 2019 31, 2020 31, 2019 Intangible assets 201 208 Share capital 63 63 Property, plant, and equipment 940 1,044 Capital reserves 118 118 Investment property 0
Slide 38: Consolidated statement of cash flows
Group – FY 2020 Consolidated statement of cash flows 2020 2019 2020 2019 Earnings before taxes (EBT) -14 42 Proceeds from disposals of PPE, intangible Depreciation/amortization (less write- assets and investment property 18 10 ups) of non-current assets 154 120 Proceeds from disposals of financial a
Slide 39: Key figures – Last years
Group – Last 5 years Key figures 2020 2019 2018 2017 2016 Order intake 1,483 1,737 1,735 1,732 1,694 Order backlog 1,033 1,030 1,020 1,001 933 Sales 1,480 1,727 1,699 1,664 1,557 EBITDA 181 181 197 238 231 EBIT (reported) 28 61 96 137 136 EBIT margin in % 1.9 3.5 5.7 8.3 8.7 EBT -13 42 81 110 124 Ne
Slide 40: Segmental figures – Last years
Group – Last 5 years Segmental figures 2020 2019 2018 2017 2016 Group Sales 1,480 1,727 1,699 1,664.0 1,557.4 EBIT (reported) 27.7 61.2 96.2 137.3 135.6 EBIT margin in % 1.9 3.5 5.7 8.3 8.7 Original Equipment Sales 1,186 1,423 1,408 1,382 1,294 EBIT (reported) -23.7 5.1 50.7 86.3 88.9 EBIT margin in
Slide 41: Key figures – Last quarters
Group – Last 5 quarters Key figures Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Order intake 512 424 193 355 382 Order backlog 1,033 972 929 989 1,030 Sales 451 381 252 396 420 EBITDA 88 49 -0.9 46 57 EBIT (reported) 25.2 18.9 -32.4 16.0 24.3 EBIT margin (in %) 5.6 5.0 -12.8 4.0 5.8 EBT 9.8 9.2 -38.7 6.
Slide 42: Segmental figures – Last quarters
Group – Last 5 quarters Segmental figures Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Group Sales 451 381 252 396 420 EBIT (reported) 25.2 18.9 -32.4 16.0 24.2 EBIT margin (in %) 5.6 5.0 -12.8 4.0 5.8 Original Equipment Sales 372 306 188 313 349 EBIT (reported) 12.8 4.3 -40.5 -0.3 2.0 EBIT margin (in %)
Slide 43: Product portfolio
Group Product portfolio Metal Sealing Systems & E-Mobility Drivetrain Components Battery module PEM fuel cell Electric drive unit (EDU) Shielding Technology Lightweighting/ Thermal shielding Elastomer Technology Acoustic shielding Door module carrier Cockpit cross-car beam Plastic mo
Slide 44: ElringKlinger represented in all important auto regions
Group ElringKlinger represented in all important auto regions Production locations of global top 15 OEMs ( ) ElringKlinger production sites ( ) Germany UK China Eastern France Europe/ Spain Turkey Korea Italy Japan USA/Canada India Southeast Asia Mexico South South Africa America Analysts’ Conferenc
Slide 45: Focused R&D activities
Group Focused R&D activities R&D – in EUR million R&D ratio – in % of total sales 5.0% 4.7% 4.8% 4.6% 5.1% 4.7% 5.1% 87 81 75 76 • Integration of tools implies a 71 technological lead position in the 67 64 development of ideas • Main focus: lightweight components, 76 64 e-mobility 64 61 58 57 71 • 6
Slide 46: Senior management
Group Senior management Dr. Stefan Wolf, CEO Theo Becker, CTO (since 2005) (since 2006) Corporate units Corporate units Legal & Compliance Purchasing HR Tooling Technology Strategic Communications Product Risk Management Marketing & Communications Real Estate & Facility Mgmt. Global Strategy, M&A an
Slide 47: More than 140 years of experience and solid shareholder structure
Group More than140 years of experience and solid shareholder structure History of ElringKlinger in very brief Shareholder structure as at December 31, 2020 1879 Paul Lechler establishes a merchandising business in Stuttgart for technical products and gaskets. 1885 Richard Klinger Institutional Priva
Slide 48: Disclaimer
Disclaimer Forward-looking statements and predictions This presentation contains statements about the future. These statements are based on current expectations, market evaluations and predictions by the Management Board, and on information that is currently available to them. The statements about t