Schaeffler Ag · XETR:SHA0
Schaeffler — Investor Day (July 2016)
11 slides from Schaeffler's investor day presentation, Jul 20, 2016
Slide 1: Finance
Finance Dr. Ulrich Hauck Chief Financial Officer
Slide 2: Agenda
Agenda 1 Overview 2 Capital structure optimization 3 Flagship initiative "Deleveraging" 4 Summary and key statements 2 July 20, 2016 Capital Markets Day London 2016 | © Schaeffler 2016
Slide 3: Solid financing structure established
1 Overview Solid financing structure established Our way forward Net debt development in EUR mn 6,671 6,541 5,447 5,778 2016 4,889 2.9x 3.1x 2.6x 2.6x 2.1x Capital Markets Long-term Profitable 2011 2012 2013 2014 2015 Debut growth Net Debt Leverage Ratio Mobility for tomorrow Rating upgrade BB- to B
Slide 4: Further potential for optimization of financing structure
1 Overview Further potential for optimization of financing structure Corporate structure finalized Financing structure December 31, 2015 in EUR mn 1.424 Bonds Loans Family Shareholders 1.054 1.000 Financial debt Schaeffler Verwaltungs Ø Maturity: 600 551 600 EUR 2.2 bn1) GmbH 5 years 3 months 500 Ø
Slide 5: EUR 2.3bn refinancing transaction signed on July 18, 2016 at favorable conditions and terms
2 Capital structure optimization EUR 2.3bn refinancing transaction signed on July 18, 2016 at favorable conditions and terms Pro forma sources and uses of funds Key facts of refinancing transaction in EUR mn1) Sources of Funds Uses of Funds New EUR 1.0bn syndicated bank loan to refinance existing 1
Slide 6: Lower interest and enhanced flexibility
2 Capital structure optimization Lower interest and enhanced flexibility Key improvements Benefits Old Facility New Facility Significantly reduced margins and extension of maturity Agreement Agreement profile Character Leveraged Cross-over Current / 3.50%1) (Term Loan) 1.70% (Term Loan) Initial Ma
Slide 7: Further deleveraging potential
3 Flagship initiative "Deleveraging" Further deleveraging potential Sources for deleveraging Key aspects Intended debt redemption of EUR 250mn p.a. from 1 Strong operating cash flow generation operating cash flow Interest savings triggered by continuous prepayment of Sufficient flexibility to prepay
Slide 8: Continuous improvements in working capital performance until 2015
3 Flagship initiative "Deleveraging" Continuous improvements in working capital performance until 2015 Working Capital development Key aspects in EUR mn Working capital performance improved from 23.1% (2010) to Working 18.4% (2015) of sales Capital 2,196 2,265 2,316 2,190 2,352 2,430 (in EUR Mio.)
Slide 9: Initiative set up to enhance Working Capital performance
3 Flagship initiative "Deleveraging" Initiative set up to enhance Working Capital performance Working Trade receivables Inventories Trade payables Capital benchmark DSO DOH DPO analysis conducted Benchmark 77 Benchmark days 59 56 68 days days days 56 50 days days Bench- 62 mark days 36 days 2010 2
Slide 10: Investment grade rating as mid-term target until 2020
3 Flagship initiative "Deleveraging" Investment grade rating as mid-term target until 2020 Development of ratings Schaeffler AG Rating upgrade Key aspects BB- to BB by S&P Net financial debt in EUR mn (right hand scale) April 28th, 2016 Continued deleveraging as one BBB- / Baa3 7,000 key driver fo
Slide 11: Summary and key statements
4 Summary and key statements Key messages 1 Capital structure, conditions and flexibility significantly strengthened by new EUR 2.3bn refinancing transaction Main drivers for deleveraging are operating cash flow, release of working capital, lower interest payments and 2 potential further prepayments