Schaeffler Ag · XETR:SHA0
Schaeffler — Investor Day (July 2016)
16 slides from Schaeffler's investor day presentation, Jul 20, 2016
Slide 1: Industrial
Industrial Dr. Stefan Spindler CEO Industrial
Slide 2: Agenda
Agenda 1 Overview 2 Program CORE 3 Flagship initiative "Industry 4.0" 4 Summary and key statements 2 July 20, 2016 Capital Markets Day London 2016 | © Schaeffler 2016
Slide 3: Schaeffler Industrial – Bearing solutions for 8 sector clusters and distribution
1 Overview Schaeffler Industrial – Bearing solutions for 8 sector clusters and distribution Sales development 2012 – 2015 Sales split by region 2015 Americas 3,406 3,233 19% 3,138 Greater China Europe 3,041 2012 2013 2014 2015 15% 56% Growth rate (y-o-y) -1.6% -10.7% +3.2% +3.0% Asia/Pacific 10% EBI
Slide 4: Broad range of standard and customized products
1 Overview Broad range of standard and customized products Bearing sales split by types 2015 33% 22% 13% 10% 7% 7% 8% Customized Ball Bearings Cylindrical Spherical Tapered Needle Roller Linear Other Products product business Roller Bearings Roller Bearings Roller Bearings Bearings Technology & Serv
Slide 5: Schaeffler USPs – Strong manufacturing and systems expertise
1 Overview Schaeffler USPs – Strong manufacturing and systems expertise 3 Schaeffler USPs 14,000 customers in Industrial 40,000 catalogue products Industry 4.0 Strong customer Manufacturing Systems relationship expertise expertise We serve clients in 8 sector clusters and We have an integrated manuf
Slide 6: Targeting sustainable margin recovery in Industrial business
2 Program CORE Targeting sustainable margin recovery in Industrial business Key elements Key actions Strategic targets set in August 2015 Cost savings and Reduce indirect workforce by 500 people Re-dimension central departments 1 efficiency Drive cost saving program including material cost, In
Slide 7: High volatility in the global bearing market
2 Program CORE High volatility in the global bearing market Bearing market development (y-o-y) Key aspects 30% From 2004 to 2014 global bearing market grew by CAGR of 2.9% 20% When we initiated CORE in August 2015, we had expected bearing market growth of 1.5% in 2015 - 2018 10% CAGR 1.5% CAGR
Slide 8: Ambition to bring EBIT margin back to 13% remains in place
2 Program CORE Ambition to bring EBIT margin back to 13% remains in place EBIT Margin + 1-2%-pts. Key aspects + 2-3%-pts. 13% 11-13% EBIT margin improvement plan assumes stable market conditions1) - 2%-pts. with moderate growth 10-11% 3% 1-2% 3 main profitability drivers (EBIT margin) remain in pl
Slide 9: Cost savings and efficiency improvements
2 Program CORE 1 Cost savings and efficiency improvements Current implementation level of headcount reduction (July 15, 2016) Definition implementation level 190 Level Meaning 148 162 0 in planning 1 identified 500 2 addressed 3 agreed 4 signed 5 left payroll Start: Indirect HCO Implementation Imple
Slide 10: High delivery performance
2 Program CORE 2 High delivery performance EDC North Key aspects Ramp-up of European Distribution Centers helps to secure availability and delivery performance EDC North EDC South EDC North live since 03/15 EDC Central EDC South live since 10/15 In both regions our delivery EDC South perform
Slide 11: New steering model
2 Program CORE 3 New steering model Phase 1 from January 1st, 2016 Phase 2 from July 15th, 2016 ►3 types of business(standard / customized / service) ►4 Regions become primary steering dimension ►8 Sector clusters defined plus Industrial Distribution ►Focused GKAM approach with 12 selected GKAMs ►Gl
Slide 12: Optimized product and service portfolio – Standard product business; example GenC
2 Program CORE 4 Optimized product and service portfolio – Standard product business; example “GenC” Market penetration with high-volume standard ball bearings Market supply concept GenC high volume products Serving demand of local customers for standard types via dedicated sales force and 4,000 a
Slide 13: Optimized product and service portfolio – Customized product business; example Wind
2 Program CORE 4 Optimized product and service portfolio – Customized product business; example “Wind” Business model Wind Tailor-made engineering solutions High level of system understanding and high level of application engineering expertise Main shaft Gearbox Comprehensive material-, surfac
Slide 14: Digital service solutions – Bringing service to the next level
3 Flagship initiative "Industry 4.0" Digital service solutions – Bringing service to the next level Customer Success Marine Example Story Online- Smart Condition Check Monitoring Challenge FAG Smart Check Bearing damage and gear failures in propulsion of oil platform (thrusters) Condition monitoring
Slide 15: Digitalization in operations
3 Flagship initiative "Industry 4.0" Digitalization in operations 1 Force sensors Key aspects Calculation services Process monitoring Machine Machine 4.0 combines existing 2 Vibration sensors 4.0 technology with new digital 3 components from sensor to cloud Lubricant requirements 1 Almost all be
Slide 16: Summary and key statements
4 Summary and key statements Key messages We accelerate program CORE to stabilize our business in a weak environment 1 – Ambition to bring division back to 13% remains in place, achievable 2020 We optimize our portfolio with customized products, standard products as 2 well as service products and so