Hella Gmbh & Co. Kgaa · XETR:HLE
Hella Gmbh & Co. Kgaa — H1 FY2024 Earnings Presentation
27 slides from Hella Gmbh & Co. Kgaa's earnings presentation, Jul 23, 2024
Slide 1: HELLA H1 2024 Results
HELLA H1 2024 RESULTS Jan 1, 2024 – June 30, 2024 July 23, 2024
Slide 2: Agenda
01 Achievements 02 Financial Results 03 Competitiveness AGENDA Program for Europe 04 Outlook 05 Key Takeaways P.2 | HELLA H1 FY 2024 Results | Conference Call, July 23, 2024
Slide 3: Achievements
01 ACHIEVEMENTS HELLA H1 FY 2024 P.3 | HELLA H1 FY 2024 Results | Conference Call, July 23, 2024
Slide 4: Slight improvements in sales and earnings in a challenging market environment
SLIGHT IMPROVEMENTS IN SALES AND EARNINGS IN A CHALLENGING MARKET ENVIRONMENT Modest sales growth of 1.6% in a Operating Income and OI margin challenging market environment improved slightly YoY with step up of profitability in Q2 › Group reported sales growing +0.9% › Positive development in Lighti
Slide 5: Further large-volume series projects won in Q2
FURTHER LARGE-VOLUME SERIES PROJECTS WON IN Q2 Lighting with successful project nominations from US and Chinese manufacturers • Headlamps demand from European premium OEMs, SOP 2027 • CBL package for international premium OEM, SOP 2026 • CBL and rear lamps for Chinese OEM, SOP 2025 More than ¾ of or
Slide 6: Further highlights in H1 FY 2024
FURTHER HIGHLIGHTS IN H1 FY 2024 Initiation of structural measures and continuation of portfolio management Realignment of Portfolio management „PACEpilot lighting production at – closing BHTC & Innovation to Watch“- the Lippstadt site People Sensing AWARD › Announcement of › Successful completion ›
Slide 7: Financial Results
02 FINANCIAL RESULTS HELLA H1 FY 2024 P.7 | HELLA H1 FY 2024 Results | Conference Call, July 23, 2024
Slide 8: Limited sales momentum H1 FY 2024 in a challenging market environment
LIMITED SALES MOMENTUM H1 FY 2024 IN A CHALLENGING MARKET ENVIRONMENT › Organic sales H1 FY 2024 up 1.6%*, -€30m negative FX in first 6 months › Reported sales H1 FY 2024 up by 0.9% • Negative customer mix particularly in China • Delays in individual series ramp-ups • Temporary slow-down of electrif
Slide 9: Lighting with stable profitability and growing sales
LIGHTING WITH STABLE PROFITABILITY AND GROWING SALES LIGHTING Growth supported by HBBL and ramp-ups In €m H1 FY 2023 H1 FY 2024 › Ramp-up of new programs in the Americas External Sales (€m) 1,921 1,984 vs. LVP growth › Modest growth in Europe; SOPs and higher call-offs for YoY organic* +4.0% certain
Slide 10: Electronics with margin improvements despite flattish sales development
ELECTRONICS WITH MARGIN IMPROVEMENTS DESPITE FLATTISH SALES DEVELOPMENT ELECTRONICS Flattish sales development due to customer mix In €m H1 FY 2023 H1 FY 2024 effects and temporary slowdown of electrification External Sales 1,526 1,511 vs. LVP in Europe YoY organic -0.3% growth of -0.2% › Successful
Slide 11: Lifecycle Solutions: operating income down with lower sales
OPERATING INCOME DOWN WITH LOWER SALES Lifecycle Solutions Low demand from commercial vehicle business In €m H1 FY 2023 H1 FY 2024 negatively impacted sales development External Sales 546 531 › Continuous growth of the spare parts business in Europe YoY organic -1.6% with increased product offering
Slide 12: HELLA is outgrowing the markets globally
HELLA IS OUTGROWING THE MARKETS GLOBALLY LVP global -0.2% Americas Europe Asia/ Pacific incl. RoW GROUP sales +0.9% 20 % 58 % 22 % (organic* +1.6%*) of group sales of group sales of group sales Outperformance 110ps (organic* 180bps) Reported sales Reported sales Reported sales* in €m in €m in €m 2,3
Slide 13: Slight improvement of operating income in absolute and relative figures
SLIGHT IMPROVEMENT OF OPERATING INCOME IN ABSOLUTE AND RELATIVE FIGURES In €m H1 FY 2023 H1 FY 2024 YoY Change Gross Profit margin up 86bps › Improvement in all business groups Sales 3,995 4,030 + 0.9% COGS (2,997) (2,989) - 0.3% % of sales -75.0% -74.2% + 86bps R&D ratio up 28bps Gross Profit % of
Slide 14: H1 net cash flow development broadly stable with strong improvement in Q2
H1 NET CASH FLOW DEVELOPMENT BROADLY STABLE WITH STRONG IMPROVEMENT IN Q2 Net Cash Flow Net Cash Flow broadly stable, minor decrease in €m and % of sales of €3m to €86m 89 86 -3 › Constant profitability in H1 with step-up in Q2 › Higher CAPEX › Lower working capital H1 FY 2023 H1 FY 2024 › Reduction
Slide 15: Competitiveness Program
03 COMPETITIVENESS PROGRAM HELLA H1 FY 2024 P.15 | HELLA H1 FY 2024 Results | Conference Call, July 23, 2024
Slide 16: Competitiveness Program for Europe on track (I)
COMPETITIVENESS PROGRAM FOR EUROPE ON TRACK (I) Improvement measures further substantiated CONTRIBUTION TO LEVER MEASURES TARGETED GROSS SAVINGS Structural Improvements €400m gross savings until 2028 STRUCTURAL €200m spendings until 2028 Operations • Relocation (shift of headcount from high cost to
Slide 17: Competitiveness Program for Europe on track (II)
COMPETITIVENESS PROGRAM FOR EUROPE ON TRACK (II) Achievement of gross savings until 2028 further substantiated SPLIT OF TARGETED GROSS SAVINGS UNTIL 2028 Committed targets in 2025 and 2028 confirmed and further substantiated ~€400m › Structural levers contribute around 1/3 of gross savings potential
Slide 18: Outlook
04 OUTLOOK HELLA H1 FY 2024 P.18 | HELLA H1 FY 2024 Results | Conference Call, July 23, 2024
Slide 19: Latest market forecasts revised downwards by S&P
LATEST MARKET FORECASTS REVISED DOWNWARDS BY S&P; VOLUME DECLINE IN EUROPE ACCELERATED Expected Global Light Vehicle production Expected Global Light Vehicle production in million units, S&P Global Mobility per July 2024 in million units, S&P Global Mobility per July 2024 -2.0% 90.5 88.7 2023 2024 S
Slide 20: HELLA FY 2024 outlook confirmed
HELLA FY 2024 OUTLOOK CONFIRMED Company Outlook Jan 1, 2024, to Dec 31, 2024 Taking into consideration the latest S&P forecast of 88.7 million light vehicles to be produced in 2024 Sales Between around € 8.1 to 8.6 billion Currency and portfolio adjusted In the lower half of the given range Operatin
Slide 21: Key Takeaways
05 KEY TAKEAWAYS HELLA H1 FY 2024 P.21 | HELLA H1 FY 2024 Results | Conference Call, July 23, 2024
Slide 22: Key Takeaways
KEY TAKEAWAYS Company outlook H1 with slight improvement confirmed and specified Competitiveness program in sales and earnings within the expected ranges for Europe further detailed › Solid results in a challenging › Latest market forecasts › Competitiveness program in market environment revised dow
Slide 23: Appendices
APPENDICES P.23 | HELLA H1 FY 2024 Results | Conference Call, July 23, 2024
Slide 24: LVP production and group sales per region
LVP PRODUCTION AND GROUP SALES PER REGION H1 FY 2023 H1 FY 2024 HELLA Group sales Worldwide 3,995 4,030 in €m 2,335 2,344 Europe +0.4% 780 800 Americas +0.8% 860 880 Asia/Pacific & Rest of World +2.2% Light vehicle production Worldwide 43,660 43,582 in 1.000 units 9,369 9,043 Europe -3.5% 9,402 9,43
Slide 25: Upcoming events
UPCOMING EVENTS October 17, 2024 • Prelim. 9M FY 2024 November 6, 2024 • 9M FY 2024 November 27, 2024 • Analysts Meeting Frankfurt P.25 | HELLA H1 FY 2024 Results | Conference Call, July 23, 2024
Slide 26: Disclaimer
DISCLAIMER ◦ This document was prepared with reasonable care. Certain numerical data, financial information and market data in this presentation have been rounded in accordance with commercial rounding. However, no responsibility can be assumed for the correctness of the provided information. In add
Slide 27: -ORVIA
-ORVIA (HELLA WEE ee
HELLA GmbH & Co. KGaA — H1 FY2024 Earnings Presentation on 6ix