Hella Gmbh & Co. Kgaa · XETR:HLE
Hella Gmbh & Co. Kgaa — Investor Day (February 2021)
37 slides from Hella Gmbh & Co. Kgaa's investor day presentation, Feb 10, 2021
Slide 1: Capital Markets Day 2021 – Drive On
Capital Markets Day 2021 Drive On February 10, 2021 HF-7761EN_C (2014-07)
Slide 2: Disclaimer
DISCLAIMER This document was prepared with reasonable care. However, no responsibility can be assumed for the correctness of the provided information. In addition, this document contains summary information only and does not purport to be comprehensive and is not intended to be (and should not be co
Slide 3: HELLA Capital Markets Day 2021 agenda
HELLA Capital Markets Day 2021 Drive On – February 10, 2021 Dr. Rolf Breidenbach 1 Strategic perspective President and CEO Bernard Schäferbarthold 2 Financial perspective CFO Dr. Rolf Breidenbach 3 Live Q&A session Bernard Schäferbarthold Capital Markets Day 2021 | Drive On | Lippstadt, February 10,
Slide 4: Strategic priorities are based on major market challenges and trends
HELLA’s strategic priorities are based on major market challenges and trends Key insights from the market Shift towards electric Cars are becoming Light is the new 1 vehicles is happening Electrified vehicles will account for more than half 2 computers on wheels In 2030, car manufacturers will spend
Slide 5: Key components for all stages of electrification
As a leading supplier of key components for all stages of electrification, HELLA is benefiting from the trend towards electromobility 1. Shift towards electric vehicles is happening HELLA STRATEGY KEY ACHIEVEMENTS SINCE LAST CMD Bilder austauschen Offer key products for all electrification stages
Slide 6: Expanding energy management portfolio: battery and power electronics
HELLA is expanding its energy management portfolio in a targeted manner with a special focus on high-performance battery and power electronics 1. Shift towards electric vehicles is happening – Major product initiatives Powertrain Electromobility Order Approach / target SOP Major product initiatives
Slide 7: Software and electronics content offers growth opportunities
The increasing software and electronics content in vehicles offers attractive growth opportunities for HELLA’s Automotive and Aftermarket business 2. Cars are becoming computers on wheels HELLA STRATEGY KEY ACHIEVEMENTS SINCE LAST CMD Supplier of key components for automated driving and sophisticate
Slide 8: Radar sensors and steering electronics for automated driving
With radar sensors and the latest generation of steering electronics, HELLA supplies indispensable key technologies for automated driving 2. Cars are becoming computers on wheels – Key components for autonomous driving Autonomous Driving Order Approach / target SOP Major product initiatives status R
Slide 9: Strengthening software competence and new software business opportunities
HELLA continues to strengthen its software competence and explores new software related business opportunities 2. Cars are becoming computers on wheels – Software initiatives SELECTED HIGHLIGHTS Strengthen Software Be best-in-class partner for Develop Application Software-only Competence Embedded So
Slide 10: Diagnostics know-how offers data services for Aftermarket
Based on its broad diagnostics know-how HELLA offers comprehensive data services for new target groups such as mobility providers and fleet operators 2. Cars are becoming computers on wheels – Data services for Aftermarket STRATEGIC DIRECTION Provide cloud-based diagnostics and repair know-how to mo
Slide 11: Light is the new chrome: innovative lighting solutions
HELLA serves the increasing demand for uniqueness, safety and efficiency with innovative lighting solutions for Automotive and Special Applications 3. Light is the new chrome HELLA STRATEGY KEY ACHIEVEMENTS SINCE LAST CMD Leverage high level of lighting competence and inspire customers with innovati
Slide 12: Automotive lighting technology gaining importance
Sophisticated automotive lighting technology will continue to gain importance in the premium and volume segment 3. Light is the new chrome – Automotive Headlamps Rear Lamps Car Body Lighting “World headlamp” SSL 100 FlatLight Grille Illumination Selected Highlights Replaces up to 12 headlamp New
Slide 13: Lighting competence transferred to Special Applications
HELLA consistently transfers its high level of lighting competence to other customer groups and drives the trend towards LEDfication 3. Light is the new chrome – Special Applications REPLACEMENT INNOVATION Enhance performance by replacing conventional Develop innovate LED-based products for the spec
Slide 14: Strengthening presence in China
HELLA will further strengthen its presence in China and outperform the Chinese market based on new product launches and a more localized product portfolio 4. Strong market presence in China is key HELLA STRATEGY KEY ACHIEVEMENTS SINCE LAST CMD Participate in China’s growth path Sales FY 19/20: ~900
Slide 15: Transforming organization, investing in automation and digitalization
To strengthen its competitiveness HELLA will continue to transform its organization and invest in automation and digitalization 5. Cost pressure continues to rise HELLA STRATEGY KEY ACHIEVEMENTS SINCE LAST CMD Strengthen competitiveness based on cost control and further structural improvements Glo
Slide 16: Sustainability as a key top priority
HELLA considers sustainability to be one of its key top priorities and will continue to intensify its efforts in this area step by step 6. Sustainability matters now more than ever HELLA STRATEGY KEY ACHIEVEMENTS SINCE LAST CMD Intensify own sustainability efforts & support customers on the path to
Slide 17: Product portfolio contributes to cleaner and safer mobility
HELLA’s product portfolio in Automotive contributes to a large extent to cleaner and safer mobility 6. Sustainability matters now more than ever – Sustainable product portfolio CLEAN MOBILITY: ROAD SAFETY: We enable emission reductions & electrification We contribute to safer mobility HELLA’s automo
Slide 18: Strategic outlook: profit level of more than 8%
HELLA is well positioned to outperform the market and to achieve a profit level of more than 8% in the medium to long term Strategic outlook HELLA STRATEGY Offer attractive product solutions for all stages of 1 electrification Set right priorities in ADAS, strengthen software 2 expertise and develop
Slide 19: HELLA Capital Markets Day 2021 agenda
HELLA Capital Markets Day 2021 Drive On – February 10, 2021 Dr. Rolf Breidenbach 1 Strategic perspective President and CEO Bernard Schäferbarthold 2 Financial perspective CFO Dr. Rolf Breidenbach 3 Live Q&A session Bernard Schäferbarthold Capital Markets Day 2021 | Drive On | Lippstadt, February 10,
Slide 20: Fields of action on the CFO's agenda
HELLA’s fields of action tackle current market challenges and industry transformation Top properties on the CFO’s agenda to secure continuous business success Address short term market Continue profitable organic Secure 1 challenges Manage bottlenecks and ramp-up of organization 2 growth path Keep a
Slide 21: Managing bottlenecks and restarting internal projects
HELLA focuses in the coming months on the management of bottlenecks and stepwise re-start of internal projects 1. Address short term market challenges – Keep commitments SHORT TERM TOP PRIORITIES KEY ACHIEVEMENTS SINCE LAST CMD Keep guidance for FY 20/21 despite downside Organizational stress pote
Slide 22: Modestly growing market with reduced volumes and increased competition
HELLA competes in a modestly growing market with significantly reduced volumes and increased competition 2. Continue profitable organic growth path – Prepare for the “new normal” MARKET OUTLOOK KEY ACHIEVEMENTS SINCE LAST CMD Global production units (mill) Adapt to lower future CAGR 4% LVP levels
Slide 23: Automotive trends accelerate and support outperformance
HELLA competes in a market where automotive trends accelerate in upcoming years and support HELLA’s outperformance 2. Continue profitable organic growth path – Benefiting from automotive tends Autonomous Driving Electrification LED Penetration Penetration (% of LVP) Penetration (% of LVP) Penetratio
Slide 24: Leadership positions with attractive business portfolio
HELLA has a leadership positions with an attractive business portfolio in selective markets that support HELLA’s outperforming potential 2. Continue profitable organic growth path – Benefiting from attractive product portfolio GROWTH POTENTIAL OF HELLA PORTFOLIO Mid-term growth trajectory beyond LVP
Slide 25: Growth aspiration backed by order success
HELLA’s growth aspiration is backed by acquisition success – tailored investments in booked business needed 2. Continue profitable organic growth path – Mid-term growth strongly backed by orders Automated Driving Segment Energy Management Segment Headlamp Segment Sales in mill EUR Sales in mill EUR
Slide 26: Operational excellence and structural improvements
HELLA operational excellence and structural improvements as prerequisite for future business success 3. Secure competitiveness – Focus on business transformation to secure profitability targets TOP PRIORITIES KEY ACHIEVEMENTS SINCE LAST CMD Secure competitiveness and profitability targets to achie
Slide 27: Structural improvement program in Germany
In order to strengthen its competitiveness, HELLA will further develop its organizational set-up 3. Secure competitiveness – Structural improvement program in Germany as key pillar Headcount development worldwide (reporting staff) Headcount reduction program Germany Target: 100% flexibilization of d
Slide 28: Smart automation initiatives on track
Consistent implementation of smart automation measures is a key pillar for HELLA’s competitiveness 3. Secure competitiveness – smart automation initiatives on track Work- Use Headcount Smart Automation package Status1 Cases Reduction Global program, use of CoBots and other Automation means WP 1 Su
Slide 29: Free Cash Flow generation and cash conversion ratio
HELLA generation of Free Cash Flow is crucial with tailored measures for Working Capital and dedicated CAPEX 4. Improve Free Cash Flow Generation – Increase cash conversion ratio TOP PRIORITIES KEY ACHIEVEMENTS SINCE LAST CMD Achieve Cash Conversion rate of >40% Targeted 3%-point reduction of WC
Slide 30: Working Capital improvements
HELLA generation of Free Cash Flow is crucial with tailored measures for Working Capital 4. Improve Free Cash Flow Generation – Working Capital improvements Working Capital Working Capital / Sales Mid term improvements until Current Working Capital FY 23/24 to ~12% Still not at normalized level ex
Slide 31: Partnership models and external growth
HELLA sticks to established partnership models – at the same time find new ways to expand further into attractive business models and to grow externally 5. Use external growth opportunities – out of the box approach TOP PRIORITIES KEY ACHIEVEMENTS SINCE LAST CMD Capitalize growth opportunities with
Slide 32: HELLA Ventures: Venture Capital for innovation
HELLA funds allocated to Venture Capital – rocket fuel business development & innovation 5. Develop the business further– HELLA Ventures as worldwide recognized Automotive CVC HELLA Ventures Focus Portfolio Companies – Examples Corporate venture capital arm of SW based radar technology improving ang
Slide 33: Financing and capital allocation premises
HELLA’s balanced financing and strong balance secures financial firepower – use of cash to grow business and to participate shareholder in business success 6. Secure financial stability and efficient capital allocation – Financing & allocation premises TOP PRIORITIES KEY ACHIEVEMENTS SINCE LAST CMD
Slide 34: Strong financial backbone: maturity profile and dividends
HELLA’s strong financial backbone secures business success and provides financial flexibility for investments 6. Secure financial stability and efficient capital allocation – Financing & allocation premises Balanced Financing Stable progression for base dividend HELLA maturity profile (Nov 2020) HEL
Slide 35: Continuing profitable growth path and committed targets
With tailored investments and agile organization, HELLA continues its profitable growth path in the “post Covid” market environment Continue success and stick to committed targets TOP PRIORITIES DRIVER TARGET Modestly growing LVP 1 Positioning in accelerating GROUP automotive trends 5%-10% growt
Slide 36: HELLA Capital Markets Day 2021 agenda
HELLA Capital Markets Day 2021 Drive On – February 10, 2021 Dr. Rolf Breidenbach 1 Strategic perspective President and CEO Bernard Schäferbarthold 2 Financial perspective CFO Dr. Rolf Breidenbach 3 Live Q&A session Bernard Schäferbarthold Capital Markets Day 2021 | Drive On | Lippstadt, February 10,
Slide 37: Contact
Contact: Dr. Markus Richter Head of Corporate Communications & Investor Relations Dr. Kerstin Dodel, CFA Head of Investor Relations Office phone +49 2941 38 -1349 Facsimile +49 2941 38 -471349 Mobile phone +49 174 3343454 E-Mail kerstin.dodel@hella.com Internet www.hella.com HF-7761EN_C (2014-07)