Slide 1: Adapting our structures to a prolonged market recovery
Adapting our structures to a prolonged market recovery CEO & CFO Conference Call Sep 10, 2020 - 11.30 CEST Herzogenaurach
Slide 2: Introducing additional structural measures – Current trading improved, still market headwinds persist
1 Overview Introducing additional structural measures – Current trading improved, still market headwinds persist Schaeffler key financial news-flow in 2020 Current trading July and August 2020 FY 2019: First results of voluntary severance scheme Sequential improvement at Group level continued in Jul
Slide 3: Transformation journey continues – Additional structural measures will add to previous programs
1 Overview Transformation journey continues – Additional structural measures will add to previous programs Schaeffler Headcount Efficiency measures implemented in recent quarters as per month end • BCT dissolution was a key milestone of our stringent divisionalisation • Divisional improvement progra
Slide 4: Prolonged market recovery phase requires adaptation of our structures
2 Adapting our structures Prolonged market recovery phase requires adaptation of our structures – Footprint, Capacities, Overheads LVP: prolonged recovery phase expected Rationale and Assumptions (LVP1 in mn vehicles) • LVP is not expected to reach 2019 level until 2024 • Relevant Industrial Product
Slide 5: Footprint consolidation and reduction of capacity in Europe
2 Adapting our structures 1) 1 Footprint consolidation and reduction of capacity in Europe – Increase competitiveness Scope Improve competitiveness Strengthen 5 key competence centers a. Consolidating our footprint – Address our − Automotive OEM: Strengthen e-Mobility fragmented footprint and increa
Slide 6: Overhead reduction in Corporate and Divisions
2 Adapting our structures 2) 2 Overhead reduction in Corporate and Divisions – Reduce complexity Scope Reduce complexity Divisions and all Corporate functions − All Divisions and Functions − Delayer the organization − Managerial and non-managerial positions − Further streamline our processes Automot
Slide 7: Financial impact
3 Financial impact Financial impact Savings: EUR 250 - 300 mn annual benefits of which 90% will be realized already in 2023, split roughly evenly between Automotive OEM and Industrial, small impact in Aftermarket Transformation cost: Around EUR 700 mn cost mainly in H2 2020, majority of cash-out in
Slide 8: Self-help structural measures – Reduce cost and increase competitiveness
4 Conclusion Self-help structural measures – Reduce cost and increase competitiveness Coronavirus-related uncertainty remains high – We adapt our structures to a 1 prolonged market recovery in a sustainable way Appropriate temporary cost flexing benefitted the Group in H1 – short-term 2 levers will
Slide 9: Financial calendar 2020/2021 – Capital Markets Day on November 18th 2020
4 Conclusion Financial calendar 2020/2021 – Capital Markets Day on November 18th 2020 Sep 10th Today’s presentation Nov 10th 9M 2020 Earnings Release Nov 18th Capital Markets Day (virtual event) Mar 4th FY 2020 Earnings Release Sep 10, 2020 9
Slide 10: Disclaimer
Disclaimer This presentation contains forward-looking statements. The words “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “project”, “should” and similar expressions are used to identify forward-looking statements. Forward-looking statements are statements that ar
Slide 11: IR Contact
IR Contact Investor Relations Phone: + 49 9132 82 4440 Email: ir@schaeffler.com Web: www.schaeffler.com/ir