Schaeffler Ag · XETR:SHA0

Schaeffler — Deutsche Bank Global Auto Industry Conference 2019

29 slides from Schaeffler's conference presentation, Jan 15, 2019

  1. Slide 1: Executing our strategy

    Entwurf 19.09.2018 15h00 Executing our strategy Schaeffler AG Global Auto Industry Conference January 15, 2018 Detroit

  2. Slide 2: Agenda

    Agenda 1 Schaeffler at a glance – 9M 2018 results and current market environment 2 Strategy “Mobility for tomorrow” 3 Excellence Program “Agenda 4 plus One” 4 Deep-dive E-mobility 5 Long-term value creation 6 Summary and outlook 2 January 15, 2019 Schaeffler AG - Global Auto Industry Conference

  3. Slide 3: Schaeffler at a glance – A global automotive and industrial supplier

    1 Schaeffler at a glance Schaeffler at a glance – A global automotive and industrial supplier  Global Automotive and Industrial supplier of high-precision components and mechatronic 72 plants systems  Quality, technology and innovation as 18 R&D centers key success factors  Well defined strategy

  4. Slide 4: Schaeffler Group – Diversified business portfolio with three divisions

    1 Schaeffler at a glance Schaeffler Group – Diversified business portfolio with three divisions Automotive OEM Automotive Aftermarket Industrial 64%3) 13%3) 23%3) Sales1) 8,991 mn Sales1) 1,880 mn Sales1) 3,150 mn EBIT margin2) 10.8% EBIT margin2) 19.0% EBIT margin2) 8.0% Chassis 18% E-Mobility OES

  5. Slide 5: Macroeconomic environment – Increasingly challenging and complex

    1 Schaeffler at a glance Macroeconomic environment – Increasingly challenging and complex Growth Automotive Lower GDP-growth Macro-economic OEMs suffer from the expected from 2019 new WLTP-cycle onwards risks External conditions Trade Industrial became much more Trade war between USA Slow down of in

  6. Slide 6: 9M 2018 figures – Mixed performance in Q3

    1 Schaeffler at a glance 9M 2018 figures – Mixed performance in Q3 Group Q3 18 9M 18 Automotive OEM Automotive AM Industrial Q3 9M Q3 9M Q3 9M Sales growth1) 3,521 10,714 2,191 6,778 476 1,401 854 2,535 (in EUR mn and %) +3.7% +5.1% +3.2% +4.3% -3.0% +1.3% +9.4% +9.8% Q3 9M Q3 9M Q3 9M EBIT margin2)

  7. Slide 7: Guidance FY 2018 – We confirm our November update

    1 Schaeffler at a glance Guidance FY 2018 – We confirm our November update Group Guidance Divisional Guidance Group Automotive OEM Automotive AM Industrial Sales growth1) (in %) +4-5% +3.5-4.5% +1.5-2.5% +8-9% EBIT margin2) 9.5-10.5% 8-8.5% 17-17.5% 10.5-11.0% (in %) Free Cash Flow3) EUR ~300 mn (in

  8. Slide 8: Schaeffler Roadmap 2016-2020 – Transformation gaining momentum

    2 Strategy “Mobility for tomorrow” Schaeffler Roadmap 2016-2020 – Transformation gaining momentum Roadmap Schaeffler Group Key aspects Today  Strategy „Mobility for tomorrow“ to position Schaeffler for key future trends  Excellence program "Agenda 4 plus One" to make Schaeffler a better Sustainabl

  9. Slide 9: Strategy 'Mobility for tomorrow' – 8 strategic pillars

    2 Strategy “Mobility for tomorrow” Strategy "Mobility for tomorrow" – 8 strategic pillars 1 Preferred technology partner 2 Automotive and Industrial supplier 3 Components and systems 4 Global player with local presence One Schaeffler Approach 5 E-Mobility, Industry 4.0, and digitalization 6 Quality,

  10. Slide 10: Automotive and Industrial supplier – both in Components and Systems

    2 Strategy “Mobility for tomorrow” Automotive and Industrial supplier – both in Components and Systems 2 3 5 Key aspects System Understanding / Industry 4.0  Long-standing experience in development and manufacturing of best-in-class mechanical components  Proven system-level understanding enabling

  11. Slide 11: E-Mobility, Industry 4.0 and Digitalization – Focused on future opportunities

    2 Strategy “Mobility for tomorrow” E-Mobility, Industry 4.0 and Digitalization – Focused on future opportunities 2 3 5 Business logic Key aspects  E-Mobility, Industry 4.0 and Digitalization as key growth opportunities for the long-term future  E-Mobility, Industry 4.0 and Digitalization are three

  12. Slide 12: Excellence program 'Agenda 4 Plus One' – Making Schaeffler a better company

    3 Excellence Program “Agenda 4 plus One” Excellence program "Agenda 4 Plus One" – Making Schaeffler a better company 10% 25% 95% 100% Key aspects Initiate Plan Implement Close Initiativen ►  Comprehensive program with 20 initiatives started in Q2 2016 1 Customer Excellence 55% ► 2 E-Mobility 55% 

  13. Slide 13: Rigorous execution of efficiency initiatives

    3 Excellence Program “Agenda 4 plus One” Rigorous execution of efficiency initiatives – Continuously improving our performance Overview as discussed at September 2018 CMD Start Date Cost Efficiency HCO1) Reduction Restructuring Full Financial Focus Completion Target Target Cost Impact Ratio 1 EUR 36

  14. Slide 14: Automotive OEM – At a glance

    4 Deep-dive E-mobility Automotive OEM – At a glance Sales and EBIT margin1) Sales by business division1) in EUR mn 18% 5% E-Mobility Chassis Systems 31% Engine 47% Transmission 8,991 Systems Systems 64%4) 8,525 Sales FY2017: EUR 8,991 mn Sales split by customer mix 2016 2017 2018e 2018 Guidance 40%

  15. Slide 15: Product portfolio – Broad drivetrain know-how

    4 Deep-dive E-mobility Product portfolio – Broad drivetrain know-how Engine systems 31% of Automotive OEM sales in 2017 Transmission systems 47% of Automotive OEM sales in 2017 E-Mobility Chassis systems 5% 18% of Automotive OEM sales in 2017 of Automotive OEM sales in 2017 15 January 15, 2019 Schae

  16. Slide 16: Mobility for Tomorrow – Our E-mobility Strategy

    4 Deep-dive E-mobility Mobility for Tomorrow – Our E-mobility Strategy ICE HEV EV Vision Powertrain Electrified Drivetrain Portfolio Global vehicle production [in mn units] 117 110 70% 102 12% 90 30% 4% 11% 33% 40% 95% 86% 55% 30% 2017 2020 e 2025 e 2030 e Source: IHS and Schaeffler Assumptions / Va

  17. Slide 17: Mobility for Tomorrow – Our E-mobility Strategy

    4 Deep-dive E-mobility Mobility for Tomorrow – Our E-mobility Strategy ICE HEV EV Vision Powertrain E-mobility Pyramid Global vehicle production [in mn units] 117 System Understanding 110 70% 102 12% 90 30% 4% 11% Mechatronic Systems 33% 40% 95% 86% Mechanical Systems 55% 30% Components 2017 2020 e

  18. Slide 18: Mobility for Tomorrow – Our E-mobility Strategy

    4 Deep-dive E-mobility Mobility for Tomorrow – Our E-mobility Strategy ICE HEV EV Vision Powertrain E-mobility Production Roadmap Global vehicle production [in mn units] 117 3 110 70% 102 12% 1 90 30% 4% 11% 1 33% 40% 2 95% 86% 2017 2018 2019 2020 2021 2022 55%  Hybrid Module Gen.2 and 2-speed E-Ax

  19. Slide 19: E-Mobility – Content per vehicle

    4 Deep-dive E-mobility E-Mobility – Content per vehicle excl. Aftermarket, Heavy Duty & Motorcycles Content per Vehicle 1) in EUR 1 ICE 2 HEV 3 BEV x 2.5 x 1.5 ~150 x 4.0 ~125 ~100 ~90 ~60 ~25 2016 2025 2016 2025 2016 2025 90 mn 56 mn 3 mn 39 mn 0.5 mn 16 mn Average Content per Vehicle 2025 ~EUR 130

  20. Slide 20: Hybrid solutions for all relevant core markets, tailored to customers' strategy

    4 Deep-dive E-mobility Hybrid solutions for all relevant core markets, tailored to customers‘ strategy 2017/2018 Schaeffler Hybrid Modules in Series Production Schaeffler Hybrid System Solutions 2020+ Gen. 2 Hybrid Module Gen. 3 Hybrid Module Gen. 4 Hybrid Module Dedicated Hybrid integrated integrat

  21. Slide 21: Evolution of Schaeffler E-Axle System Portfolio

    4 Deep-dive E-mobility Evolution of Schaeffler E-Axle System Portfolio 2011-2014: BEV Concept Car Active-E-Drive 2018 Schaeffler E-Axle Transmissions Schaeffler E-Axle System Solutions 2020+ SOP Q3/2018 Best-in class power density for E-Axle transmissions: 230 Nm/kg Modular design kits Weight and ma

  22. Slide 22: Schaeffler e-Axle transmission is driving the brand new Audi eTron Quattro

    4 Deep-dive E-mobility Automotive OEM – Schaeffler e-Axle transmission is driving the brand new Audi eTron Quattro E-Axle subsystems 2018 Schaeffler‘s new Lightweight E-Axle Transmissions for the Audi eTron Quattro SOP Q3/2018  Schaeffler supplies both E-Axle Power Electronics Transmissions for the

  23. Slide 23: Use of cash – Focus on future growth and attractive dividend

    5 Long-term value creation Use of cash – Focus on future growth and attractive dividend Our Cash Flow formula Key aspects + Operating Cash Flow1)  Strong cash flow generation from operating business and 3 main uses of cash: Cash Δ Working Capital generation +/- 1 Dividend - Capex (Internal Growth)

  24. Slide 24: M&A strategy – Focus on technology and execution

    5 Long-term value creation M&A strategy – Focus on technology and execution 7 Search fields Key aspects (Power) E-Motor Electronics  Clearly defined M&A strategy based on 7 search fields with Manufacturing Industry 4.0 / Mechatronics focus on technology, innovation and smaller add-on Competence acq

  25. Slide 25: Steer by wire acquisition – Positioning our Chassis business

    5 Long-term value creation Steer by wire acquisition – Positioning our Chassis business for autonomous driving growth potential Steer by wire – Key aspects Selected components of the "Steer by wire"-technology ▪ Steer by wire is a key-enabling technology for the fast-growing market segment autonomou

  26. Slide 26: Elmotec Statomat acquisition – Another key step in our E-mobility strategy

    5 Long-term value creation Elmotec Statomat acquisition – Another key step in our E-mobility strategy Elmotec Statomat – Key aspects Innovative technology & production processes ▪ Elmotec is a pioneer in the production of stator manufacturing machines and one of the leading suppliers of machines for

  27. Slide 27: Elmotec Statomat acquisition – Closing the technology gap for mass production

    5 Long-term value creation Elmotec Statomat acquisition – Closing the technology gap for mass production Stator Manufacturing Processes* in series production at Schaeffler today Rotor Manufacturing Processes* prototyping machines available at Schaeffler ext. supplier technology as of today Productio

  28. Slide 28: Adapting execution to a more complex market environment

    6 Summary and Outlook Key messages 1 FY 2018 guidance confirmed despite increasingly challenging and complex environment We are executing on our strategy – “Agenda 4 plus One” excellence program drives our 2 transformation, well on track E-mobility deep-dive – We have a clear vision, the right team,

  29. Slide 29: SCHAEFFLER

    SCHAEFFLER SCHAEFFLER

Schaeffler — Deutsche Bank Global Auto Industry Conference 2019 on 6ix