Autoneum Holding AG · SIX:AUTN
Autoneum — Non-Deal Roadshow (November 2013)
38 slides from Autoneum's roadshow presentation, Nov 13, 2013
Slide 1: Press and financial analysts' trip 2013
Press and financial analysts’ trip 2013 Update on business situation Autoneum Martin Hirzel, CEO Autoneum Urs Leinhäuser, CFO & Deputy CEO Autoneum
Slide 2: Agenda
Agenda Presentation Martin Hirzel, CEO 1. Attractive automotive supply business 2. Autoneum’s strategy for success 3. Conclusion Presentation Urs Leinhäuser, CFO & Deputy CEO 4. Grow profitably and generate free cash flow – a strategic priority 5. Update on achievement of mid-term financial targets
Slide 3: Automotive Tier 1 supplier business model
Automotive Tier 1 supplier business model «Rules of the game» Sales curve – current model Sales curve – replacement model 6 months 1-2 years 5-7 years Innovation- Pre- project development Released Request for Award Start of Innovation quotation production • Good visibility of mid-term sales developm
Slide 4: Market development light vehicle production
Market development light vehicle production Growing industry 59.5 m units in 2009 83.4 m units in 2013 CAGR 86.7 m units in 2014 4.4% 98.6 m units in 2017 * 0%* * * * * * * * * * * Compound annual growth rate (CAGR) 2014 - 2017 Source: IHS October 2013 (excl. truck) Press and financial analysts’ tri
Slide 5: Market outlook
Market outlook Short and mid-term view North America Europe BG Europe End of 2013 Mid-term End of 2013 Mid-term • High volume continues • Market growth will • Bottom of market • Going forward, a slow until end of year continue but at lower decline reached and staggered recovery • Positive consumer p
Slide 6: Highly fragmented Chinese market
Highly fragmented Chinese market Significant differences in market segments Chinese market by car makers Chinese market by Segment Global OEMs A B Chinese OEMs C Total Chinese D market E Market HVAN Europe 0% 50% 100% Source: IHS Press and financial analysts’ trip, Nov ember 13, 2013 6
Slide 7: Agenda
Agenda Presentation Martin Hirzel, CEO 1. Attractive automotive supply business 2. Autoneum’s strategy for success 3. Conclusion Presentation Urs Leinhäuser, CFO & Deputy CEO 4. Grow profitably and generate free cash flow – a strategic priority 5. Update on achievement of mid-term financial targets
Slide 8: Our Strategy
Our Strategy Priorities unchanged Focus on acoustic & thermal management Pursue solutions in Grow profitably consolidation automotive and generate free opportunities cash flow High performance culture Focus on Practice long-term operational partnerships with excellence Leverage global customers tech
Slide 9: Focus on acoustic & thermal management
Focus on acoustic & thermal management Example carpet system • Carpet system influences Acoustics acoustic performance by 15 dB Aesthetic • Autoneum’s lightweight solutions Cleanability help to save up to 3 kg/m2 in weight (~10 kg weight saving for 3.5 m2 carpet) • More than 100 years’ experience in
Slide 10: Profitable growth: success factor vertical integration
Profitable growth Success factor vertical integration • Product line interior floor largest in Interior Floor Autoneum globally Tufted carpets Non-woven carpets • Both key materials non-woven and tufted Inner dashes carpets offered by Autoneum • Vertical integration for profitability: 48% of Autoneu
Slide 11: Global platform business
Global platform business Success of global technologies for inner dash • Autoneum’s global footprint supports Toyota Ford Honda Corolla Kuga / Escape CIVIC / CRV supply to global platform business • Aligned global China, Brazil, USA, USA, Spain, Russia, China, Brazil, technologies allow UK, South Af
Slide 12: Global platform business: future potential
Global platform business Future potential – global carpet solutions • Carpet supply BMW Ford Nissan requires footprint 3-Series Fusion / Mondeo Micra close to customer plant (sensitivity to logistic costs) Czech Republic, China, South Africa Belgium, Mexico China, India • High number of variants Hon
Slide 13: Technology leadership
Technology leadership Recognition as development partner Press and financial analysts’ trip, Nov ember 13, 2013 13
Slide 14: Innovation example: Pure-Tuft
Innovation example: Pure-TuftTM The Greener alternative No latex means less Same or better Volatile Organic abrasion achieved Compounds (VOCs) without use of latex The new manufacturing process does not require large ovens to dry the latex, which saves energy and makes the process cleaner Reduced ca
Slide 15: Operational excellence
Operational excellence Numerous activities to boost productivity Consistent implementation of APS (Autoneum Production System) Example regarding carpet: Waste reduction strategy – levels of implementation Waste reduction strategy examples reuse avoid • Wide range of initiatives at all reduce recycle
Slide 16: Importance of partnerships
Importance of partnerships Leverage on win-win situation • Key advantages: − Share risks when entering new markets − Share funding for new plants China, Tianjin − Access to specific OEMs − Promotion of Autoneum innovations • Long-term partnership with Nittoku towards global Japanese OEMs North Ameri
Slide 17: Agenda
Agenda Presentation Martin Hirzel, CEO 1. Attractive automotive supply business 2. Autoneum’s strategy for success 3. Conclusion Presentation Urs Leinhäuser, CFO & Deputy CEO 4. Grow profitably and generate free cash flow – a strategic priority 5. Update on achievement of mid-term financial targets
Slide 18: Conclusions – regional action plans
Conclusions – regional action plans Clear focus on implementing the strategy Expand Grow • Resolve capacity issues • Further growth with global • Launch underbody strategy and local OEMs Transform • Build up Hyundai/Kia as global focus customer • Clear focus on profitability increase • Streamline te
Slide 19: Agenda
Agenda Presentation Martin Hirzel, CEO 1. Attractive automotive supply business 2. Autoneum’s strategy for success 3. Conclusion Presentation Urs Leinhäuser, CFO & Deputy CEO 4. Grow profitably and generate free cash flow – a strategic priority 5. Update on achievement of mid-term financial targets
Slide 20: Grow profitably and generate free cash flow
Grow profitably and generate free cash flow One of Autoneum’s six strategic priorities is to grow profitably and to generate free cash flow • What are the first results of this strategy? • Since going public in spring 2011 Autoneum reported the following developments (HY 2011 vs. HY 2013): Net Sales
Slide 21: Strategic priorities
Strategic priorities Focus on acoustic & thermal management Pursue solutions in Grow profitably consolidation automotive and generate free opportunities cash flow High performance culture Focus on Practice long-term operational partnerships with excellence Leverage global customers technological lea
Slide 22: Agenda
Agenda Presentation Martin Hirzel, CEO 1. Attractive automotive supply business 2. Autoneum’s strategy for success 3. Conclusion Presentation Urs Leinhäuser, CFO & Deputy CEO 4. Grow profitably and generate free cash flow – a strategic priority 5. Update on achievement of mid-term financial targets
Slide 23: Mid-term financial targets
Mid-term financial targets* * (communicated before SIX listing) • Annual growth of 4-5% (excluding currency effects) Net sales − Flat to moderate growth in Western Europe − Moderate growth in North America − Strong growth in BRICS countries • Return on net assets > Cost of Capital Profitability / •
Slide 24: Mid-term financial targets: net sales growth
Mid-term financial targets • Annual growth of 4-5% (excluding currency effects) − Flat to moderate growth in Western Europe Net sales − Moderate growth in North America − Strong growth in BRICS countries Growth Rate (in LC) 2011 2012 HY1 2013 Achievement Group +15% +13% +11% BG Europe +10% +1% +2% B
Slide 25: Mid-term financial targets: return on net assets
Mid-term financial targets Profitability / • Return on net assets > Cost of Capital Return on net assets Return on net assets 2011 2012 HY1 2013 Achievement Return on net assets 4% 10% 17% Cost of Capital ̰ 9% ̰ 9% ̰ 9% Value creation ̰ -5% ̰ 1% ̰ 8% Return 22 49 40 + Ø net assets 534 509 481 + Pres
Slide 26: Mid-term financial targets: EBITDA margin
Mid-term financial targets Profitability / • EBITDA margin >9% Return on net − Mid-term EBITDA margin of 7-8% in Europe assets − Double digit EBITDA margin in North America and Asia EBITDA margin 2011 2012 HY1 2013 Achievement Group 6.2% 7.6% 8.4% BG Europe 2.8% 4.1% 4.1% BG North America 9.2% 10.6%
Slide 27: Mid-term financial targets: Europe EBITDA margin
Mid-term financial targets Profitability / • EBITDA margin of 7-8% in Europe Return on net 1% 8% assets 5% 7% 4% -3.5% 0.5% 1% Actual Sales price, Sale of Italy Closure of plant Operating Mid-term Volume, Mid-term inflation France improvements target continuous target improvement Press and financial
Slide 28: Mid-term financial targets: capital expenditure
Mid-term financial targets • Average long-term CAPEX of 4-4.5% of net sales Capital expenditure Capital Expenditure 2011 2012 HY1 2013 Achievement CAPEX in % net sales 4.5% 3.9% 2.8% in CHF 75 75 31 Share in % by BG BG Europe 44% 37% 25% + BG North America 36% 38% 45% + BG Asia 14% 10% 12% BG SAMEA
Slide 29: Mid-term financial targets: net debt / EBITDA
Mid-term financial targets • Continue to maintain Indebtedness − Long-term conservative leverage below 1.5x net debt / EBITDA Net Debt / EBITDA 2011 2012 HY1 2013 Achievement Net Debt / EBITDA 1.5 0.9 0.7 Ratio Net Debt 155 123 118 + EBITDA 104 145 91 + Press and financial analysts’ trip, Nov ember
Slide 30: Mid-term financial targets: equity ratio
Mid-term financial targets • Continue to maintain Indebtedness − 30% equity ratio (i.e. total equity divided by total assets) Equity Ratio 2011 2012 HY1 2013 2) Achievement Equity Ratio 1) 29% 32% 28% Total Assets 996 960 1042 Equity 1) 287 303 292 1) without subordinated shareholders loan 2) incl.
Slide 31: Mid-term financial targets: payout ratio
Mid-term financial targets • Target payout ratio of up to 30% of net result attributable to Autoneum Dividend shareholders (EPS) payout Payout Ratio 2011 2012 HY1 2013 Achievement Payout Ratio 27% n/a EPS (CHF) -2.13 2.41 4.27 + Press and financial analysts’ trip, Nov ember 13, 2013 31
Slide 32: Agenda
Agenda Presentation Martin Hirzel, CEO 1. Attractive automotive supply business 2. Autoneum’s strategy for success 3. Conclusion Presentation Urs Leinhäuser, CFO & Deputy CEO 4. Grow profitably and generate free cash flow – a strategic priority 5. Update on achievement of mid-term financial targets
Slide 33: Outlook FY 2013 (1)
Mid-term financial targets and outlook FY 2013 HY1: Outlook FY 2013 (1) • Heterogeneous and low overall growth in global light vehicle production is likely to continue in HY2 • Market research institutes expect the low point in European demand was reached in HY1 • Autoneum sees good opportunitie
Slide 34: Outlook FY 2013 (2)
Mid-term financial targets and outlook FY 2013 HY1: Outlook FY 2013 (2) • EBIT margin of 5.2% in HY1 should thus be confirmed in HY2 (before one-time expenses) • One-time expenses due to the sale of Autoneum Italy and the closure of Dieppe plant in France will impact consolidated results in HY2
Slide 35: Agenda
Agenda Presentation Martin Hirzel, CEO 1. Attractive automotive supply business 2. Autoneum’s strategy for success 3. Conclusion Presentation Urs Leinhäuser, CFO & Deputy CEO 4. Grow profitably and generate free cash flow – a strategic priority 5. Update on achievement of mid-term financial targets
Slide 36: Conclusion
Conclusion • The disciplined execution of the six strategic priorities contributes to our good results • Autoneum’s results are among the best in our industry but not yet fully at mid- term target level • The transformation of our European business has not yet been completed. To reach the mid-term f
Slide 37: Contacts and event calendar
Contacts and event calendar Contact address Investors Media Autoneum Holding AG Urs Leinhäuser Dr. Anahid Rickmann Schlosstalstrasse 43 / P.O. Box CFO & Deputy CEO Head Corporate Communications CH-8406 Winterthur T +41 (0)52 244 82 82 T +41 (0)52 244 83 88 www.autoneum.com investor@autoneum.com medi
Slide 38: Disclaimer
Disclaimer Autoneum is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoeve