Schaeffler Ag · XETR:SHA0
Schaeffler — J.P. Morgan European Automotive Conference 2023
30 slides from Schaeffler's conference presentation, Jun 6, 2023
Slide 1: Growing the New Business
Chassis Schaeffler E-Mobility Systems Automotive Technologies Division Growing the New Engine & Transmission Bearings Business Matthias Zink CEO Automotive Technologies Division J.P. Morgan European Automotive Conference June 6, 2023 PUBLIC
Slide 2: Where we stand, where we play, how we win, how we create value
1 Where we stand 2 Where we play 3 How we win 4 How we create value June 6, 2023 Schaeffler Automotive Technologies | J.P. Morgan European Automotive Conference PUBLIC
Slide 3: Where we stand
1 Where we stand June 6, 2023 Schaeffler Automotive Technologies | J.P. Morgan 3 European Automotive Conference PUBLIC
Slide 4: Q1 2023 Automotive Technologies – Moderate Sales growth, EBIT margin improved
1 WHERE WE STAND Q1 2023 Automotive Technologies – Moderate Sales growth1, EBIT margin2 improved Sales EBIT2 KEY ASPECTS in EUR mn in EUR mn Moderate Sales growth1 of 6.0% driven by Europe (+15.1%) and supported by all Business +6.0%1 +24 mn Divisions; strong growth in E-Mobility, Chassis with doubl
Slide 5: Q1 2023 Automotive Technologies – All Business Divisions growing
1 WHERE WE STAND Q1 2023 Automotive Technologies – All Business Divisions growing1 Sales by business division yoy growth Key Aspects on Business Division and Regions Q1 2022 Q1 2023 ∆1 • Continued strong growth in New Business areas E-Mobility and Chassis; growth in E&T smoothing the path to EV mobi
Slide 6: Current trading update, continued cautious view on macro environment
1 WHERE WE STAND Automotive Technologies – Current trading update, continued cautious view on macro environment Automotive Technologies – Global LVP1 2023 Automotive market dynamics • S&P Global Mobility slightly increased its estimates for the Global LVP1 in the course of the year, now expecting Gl
Slide 7: FY 2023 Guidance confirmed – Good Q1 but cautious on market development
1 WHERE WE STAND FY 2023 Guidance confirmed – Good Q1 but we remain cautious on market development FY 2023 Guidance Schaeffler Group Automotive Technologies Automotive Aftermarket Industrial Guidance Guidance Guidance Guidance FY 20231 FY 2023 FY 2023 FY 2023 Sales Outperformance growth2 5 – 8% 5 –
Slide 8: Where we play
2 Where we play June 6, 2023 Schaeffler Automotive Technologies | J.P. Morgan 8 European Automotive Conference PUBLIC
Slide 9: Electrification is further accelerating, year 2035 adjusted
2 WHERE WE PLAY Market & Customers – Electrification is further accelerating, year 2035 adjusted Vision Powertrain – NEW ICE HEV xEV Global Light Vehicle Production 10% Climate targets towards zero 20% emission in major markets 50% 30% 40% 88% HEV as transition technology will reach tipping point in
Slide 10: Portfolio Management – Operating model proving its steering effectiveness
2 WHERE WE PLAY Portfolio Management – Operating model proving its steering effectiveness with clear results Mature Business New Business 28% Engine & Bearings E-Mobility Chassis Transmission Systems 14% EUR 5,152 mn EUR 2,624 mn Sales FY 2022 EUR 1,349 mn EUR 375 mn +4.5% +4.6% 4% +24.2% +28.4% EUR
Slide 11: Product Portfolio expanded – components & systems for powertrain & chassis
2 WHERE WE PLAY Product Portfolio expanded – We deliver both innovative components & systems for powertrain & chassis Mature Business New Business Engine & Bearings E-Mobility Chassis Systems Transmission Powertrain-specific Powertrain-agnostic Powertrain-specific Powertrain-agnostic Mechatr. System
Slide 12: Competitive landscape increasingly dynamic and offering great opportunities
2 WHERE WE PLAY Market & Customers – Competitive landscape increasingly dynamic and offering great opportunities Europe 1 4 36% of Sales in 2022 Greater China 1 2 4 25% 2 3 4 of Sales in 2022 25% of Sales in 2022 Americas Asia Pacific 1 1 4 14% of Sales in 2022 Market Financial Automotive penetratio
Slide 13: How we win
3 How we win June 6, 2023 Schaeffler Automotive Technologies | J.P. Morgan 13 European Automotive Conference PUBLIC
Slide 14: How we win in a diversified customer base
3 HOW WE WIN How we win in a diversified customer base – With both components and systems Mature Business New Business 1 Mechatr. Systems Established OEMs 2 Sub- & Mechanical Systems Mechanical Components with 3 System Know-How New Players 4 Mechanical Components June 6, 2023 Schaeffler Automotive T
Slide 15: First Order Intake for battery cooling and refrigerant market
3 HOW WE WIN First Order Intake for battery cooling and expansion into the refrigerant market OI Mature Business New Business approx. EUR 0.6 bn 2022 & 2023 Q1 1 Mechatr. Systems Established OEMs 2 Sub- & GROW Mechanical Systems Mechanical Components with 3 System Know-How New Players 4 Mechanical C
Slide 16: Order Intake for e-Axle systems from established and new OEMs
3 HOW WE WIN Order Intake for e-Axle systems received from established and new OEMs OI Mature Business New Business approx. EUR 2.4 bn 2022 & 2023 Q1 1 Mechatr. Systems Established OEMs 2 Sub- & GROW Mechanical Systems Mechanical Components with 3 System Know-How New Players 4 Mechanical Components
Slide 17: High capability in embedded software meets precision components and mechatronic systems
3 HOW WE WIN High capability in embedded software (customer) meets high capability in precision components and mechatronic systems (Schaeffler) Mature Business New Business 1 Mechatr. Systems Established OEMs 2 Sub- & GROW Mechanical Systems Mechanical Components with 3 System Know-How New Players 4
Slide 18: High capability in embedded software meets precision components and mechatronic systems
3 HOW WE WIN High capability in embedded software (customer) meets high capability in precision components and mechatronic systems (Schaeffler) OI Mature Business New Business approx. EUR 0.5 bn 1 Mechatr. Systems Established OEMs + 2 Sub- & GROW Mechanical Systems Mechanical Components with 3 Syste
Slide 19: How we win in Greater China
3 HOW WE WIN How we win in Greater China – Approaching a diversified customer base with components and systems with an excellent local team Mature Business New Business 1 Mechatr. Systems Established OEMs 2 Sub- & Mechanical Systems Mechanical Components with 3 System Know-How New Players 4 Mechanic
Slide 20: Cost compensation with the same customers has top priority
3 HOW WE WIN … while at the same time cost compensation with the same customers has top priority Compensation of cost increases KEY ASPECTS We carry over our sustained pricing from last year Tough negotiations on relevant input cost inflation items – labor and other non-raws input costs – already in
Slide 21: How we create value
4 How we create value June 6, 2023 Schaeffler Automotive Technologies | J.P. Morgan 21 European Automotive Conference PUBLIC
Slide 22: How we fund our own growth and create value
4 HOW WE CREATE VALUE How we fund our own growth and create value Mature Business Order Intake2 FY 2019 - 2022 New Business Products for Products for Powertrain Powertrain Electrified ICE and HEV agnostic1 products agnostic1 products Powertrains 35% EV HEV Priority Margin 25% Priority Growth 47.7 bn
Slide 23: Road to 2025 – We stay committed to our mid-term targets
4 HOW WE CREATE VALUE Road to 2025 – We stay committed to our mid-term targets Mid-term targets 2025 Automotive Technologies Automotive Aftermarket Industrial Outperformance1 Constant-currency revenue growth Constant-currency revenue growth 200 to 500 bps > GDP growth > Ind. Prod. growth on average2
Slide 24: Automotive Technologies as enabler for business in other sectors / divisions
4 HOW WE CREATE VALUE Portfolio Automotive Technologies as enabler for further business in other sectors / divisions Example: Schaeffler Aftermarket Aftermarket Car Parc1 Automotive Automotive Aftermarket approx. 1.5 bn vehicles xEV HEV 74% ICE 85% 96% Cars & Light Co. Vehicles Truck & Bus Cars & LC
Slide 25: Conclusion
4 HOW WE CREATE VALUE Conclusion A Short-term drivers ▪ Good first quarter for Automotive Technologies, we manage the outperformance short-term moving parts ▪ Strong order momentum in New business continues across all regions ▪ Very confident on our 2023 FY guidance in Automotive Technologies, striv
Slide 26: June 6, 2023 Schaeffler Automotive Technologies | J.P. Morgan European Automotive Conference
June 6, 2023 Schaeffler Automotive Technologies | J.P. Morgan European Automotive Conference PUBLIC
Slide 27: Automotive Technologies outperformance by quarters
BACKUP Automotive Technologies (AT) outperformance by quarters Adjusted comparative figures 2022 YTD Outperformance: +0.3pp Q1 23 Outper- S&P1 AT2 formance World +5.7% +6.0% +0.3pp Europe +13.7% +15.1% +1.4pp Americas +10.0% +0.8% -9.2pp Greater China -7.2% -8.2% -0.9pp Asia/Pacific +11.3% +15.5% +4
Slide 28: Key figures by Group and Division
BACKUP Key figures by Group and Division Adjusted comparative figures 2022 Group in EUR mn Automotive Aftermarket in EUR mn Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Sales 3,758 3,790 4,242 4,019 4,152 Sales 464 506 548 523 582 Sales Growth1 +1.9% +4.4% +20.2% +11.8% +10.4% Sales G
Slide 29: Sustainability – Eight non-financial targets
BACKUP Sustainability – Eight non-financial targets underline clear commitment to sustainability Climate Neutral Production Renewable Energy at all Schaeffler production 100% purchased power from locations until 2030 renewable sources until 2024 Sustainable Suppliers Fresh water Supply 90% of the pu
Slide 30: June 6, 2023 Schaeffler Automotive Technologies | J.P. Morgan European Automotive Conference
June 6, 2023 Schaeffler Automotive Technologies | J.P. Morgan 30 European Automotive Conference PUBLIC
Schaeffler — J.P. Morgan European Automotive Conference 2023 on 6ix