HELLA GmbH & Co. KGaA · XETR:HLE
HELLA GmbH & Co. KGaA — Q1 FY 2017/18 Earnings Presentation
42 slides from HELLA GmbH & Co. KGaA's earnings presentation, 2017
Slide 1: HELLA GmbH & Co. KGaA Company Presentation Q1 FY 2017/2018
HELLA GmbH & Co. KGaA Company Presentation Q1 FY 2017/2018 HF-7761DE_C (2013-10)
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: Outline
HELLA Company Presentation Q1 FY 2017/18 Outline ■ HELLA Financial Highlights Q1 FY 2017/18 ■ HELLA Financial Results Q1 FY 2017/18 ■ Outlook BACKUP 3 HELLA Company Presentation | Q1 FY 2017/18
Slide 4: Positive sales growth and EBIT increase in Q1 FY 2017/18
Positive sales growth and EBIT increase in Q1 FY 2017/18 Financial Highlights Q1 FY 2017/18 ■ HELLA Group currency adjusted sales grew by 5.8% YoY to 1.6 Sales bill. EUR ■ Adj. Gross Profit margin at 27.7% (+0.2%-points YoY) Profitability ■ Adj. EBIT +7 mill. EUR (+5.6% YoY) at 125 mill. EUR ■ Adjus
Slide 5: HELLA top line growth with expected development in Q1 FY 17/18
HELLA top line growth with expected development in Q1 FY 17/18 Financial Highlights Q1 FY 2017/18 HELLA Group sales (EUR millions) Comment ■ Currency adjusted growth HELLA Group at 5.8% -13 ■ Reported sales growth HELLA Group at 4.9% (increased by 77 mill. EUR, +5.8% 90 4.9% + to 1,629 mill. EUR)
Slide 6: Automotive outperforming LVP in all regions
Automotive outperforming LVP in all regions Financial Highlights Q1 FY 2017/18 HELLA Automotive external sales by region (in EUR millions) Global Europe North & South America Asia & RoW 1,227 762 754 762 264 201 1,138 1,163 665 228 181 979 -1.1% +1.1% 208 167 +2.2% +5.5% +14.7% +15.9% 143 +10.8% +16
Slide 7: Outline
HELLA Company Presentation Q1 FY 2017/18 Outline ■ HELLA Financial Highlights Q1 FY 2017/18 ■ HELLA Financial Results Q1 FY 2017/18 ■ Outlook BACKUP 7 HELLA Company Presentation | Q1 FY 2017/18
Slide 8: GPM increase due to stronger Aftermarket and Special Applications
GPM increase due to stronger Aftermarket and Special Applications Financial results Q1 FY 2017/18 Gross Profit Highlights EUR millions 452 ■ Adj. Gross Profit increased by 24 428 399 mill. EUR (+5.6%) to 452 mill. EUR 350 +24 +29 Automotive + 4.2% to 306 mill. EUR +49 Aftermarket + 2.2% to 105 m
Slide 9: Continuous high R&D expenses to secure future growth
Continuous high R&D expenses to secure future growth Financial results Q1 FY 2017/18 R&D expenses Highlights EUR millions 162 ■ Absolute R&D expenses increased 3.7% 154 140 by 8 mill. EUR (+5.5% YoY) to +8 117 3.4% +14 162 mill. EUR, mainly: +23 booked business exploring potential of market tren
Slide 10: Relatively stable development of SG&A costs
Relatively stable development of SG&A costs Financial results Q1 FY 2017/18 Adjusted SG&A expenses Highlights EUR millions 176 ■ Only slight increase (+ 6 mill. EUR, 3.7% 3.7% 166 170 150 + 3.3%) of SG&A costs mainly due to +4 +6 increase in distribution expenses: 3.4% +16 3.4% distribution expens
Slide 11: Adjusted EBIT and EBIT margin above prior-year's level
Adjusted EBIT and EBIT margin above prior-year’s level Financial results Q1 FY 2017/18 Adjusted EBIT Highlights EUR millions 125 ■ Adjusted EBIT increased by 7mill. 118 101 EUR (+5.6%) to 125 mill. EUR 97 +7 +17 increase in Gross Profit by 24 mill. +4 EUR (+5.6%) higher R&D (+8 mill. EUR, +5.5%)
Slide 12: P&L including reconciliation
P&L including reconciliation Financial results Q1 FY 2017/18 Quarterly comparison Comments HELLA GROUP Q1 Q1 ■ Reported EBIT Q1 slightly FY 16/17 FY 17/18 negatively impacted by in EUR mill. restructuring expenses in Gross Profit reported 427.8 451.1 Germany Restructuring 0.0 0.6 ■ Net financial res
Slide 13: Adj. Free Cash Flow from operating activities increased due to higher funds from operations
Adj. Free Cash Flow from operating activities increased due to higher funds from operations Financial results Q1 FY 2017/18 Adj. FCF from operating activities Highlights EUR millions +562.7% ■ Adj. Free Cash Flow from -54.2% 67 operating activities increased by 20 +63.8% mill. EUR to 50 mill. EUR, m
Slide 14: Automotive segment with increasing growth
Automotive segment with increasing growth Financial results Q1 FY 2017/18 +5.9% +9.9% +2.4% Automotive Sales 1,244 1,147 1,175 ■ Growth of 5.9% with ongoing project ramp-ups 1,044 3.0% 6.3% 547 started in H2 FY 16/17: 537 10.2% 500 646 515 454 demand for energy management products +1.6% 4.9% and r
Slide 15: Non Automotive segments with positive contributions
Non Automotive segments with positive contributions Financial results Q1 FY 2017/18 -1.6% Aftermarket +2.1% 307 ■ External sales growth (+2.0%) due to positive 18.9 19.3 IAM and wholesale business 302 ■ Total sales declined by 1.6%, mainly due to new 537 6.2 6.4 allocation between Aftermarket and Sp
Slide 16: Outline
HELLA Company Presentation Q1 FY 2017/18 Outline ■ HELLA Financial Highlights Q1 FY 2017/18 ■ HELLA Financial Results Q1 FY 2017/18 ■ Outlook BACKUP 16 HELLA Company Presentation | Q1 FY 2017/18
Slide 17: Overall market FY 17/18 expected to grow by 1.3% according to IHS
Overall market FY 17/18 expected to grow by 1.3% according to IHS Outlook Expected LVP Region Comment (in m units) +2.6% ■ Continuing growth in 2017/18 expected. Europe excluding Germany expected to grow by 3.9% to Europe 22.4 16.5m units, Germany with an expected decline of FY 17/18 1.0% to 5.9m un
Slide 18: Company specific development for FY 17/18 confirmed
Company specific development for FY 17/18 confirmed Guidance Presuming no serious economic turmoil, we assume a positive development of the operative HELLA business for FY 2017/18: Sales growth ■ Growth excluding FX between 5-10% Adj. EBIT growth ■ Growth between 5-10% Adj. EBIT margin ■ Margin arou
Slide 19: Outline - Backup
HELLA Company Presentation Q1 FY 2017/18 Outline ■ HELLA Financial Highlights Q1 FY 2017/18 ■ HELLA Financial Results Q1 FY 2017/18 ■ Outlook BACKUP - HELLA at a Glance 19 HELLA Company Presentation | Q1 FY 2017/18
Slide 20: HELLA at a glance – Overview
Market and technology leadership as key strategic principles HELLA at a glance – Overview KEY FACTS KEY FINANCIALS ▪ Founded 1899 in Lippstadt (Germany) in EUR millions and % of sales ▪ Global footprint with around 38,000 employees at more than FY 2015/16 FY 2016/17 Change 125 locations in some 35 c
Slide 21: HELLA at a glance – Sales and EBIT development
HELLA has shown sustainable profitable growth since automotive crisis HELLA at a glance – Sales and EBIT development SALES ADJUSTED EBIT in EUR millions and % of sales in EUR millions and % of sales 7% 6,585 534 6,352 9% 5,835 476 5,343 445 4,835 399 4,637 350 8.1 7.5 7.6 7.5 306 7.5 6.3 FY 11/12 FY
Slide 22: HELLA at a glance – Financial stability
High financial stability ensuring long-term growth perspective HELLA at a glance – Financial stability Solid capital structure Strategic flexibility Leverage (Net debt / EBITDA) Debt and maturity profile*, in millions EUR HELLA has a stable and solid financial 0.7x fundament which 0.6x 500 0.5x form
Slide 23: HELLA at a glance – Business Segment Automotive
Broad automotive portfolio in strong growing areas HELLA at a glance – Business Segment Automotive BUSINESS OVERVIEW* KEY FINANCIALS Lighting ► #1 market position in LED in EUR millions and % of sales ▪ Headlamps headlamps Europe ▪ Rear Combination Lamps FY 2015/16 FY 2016/17 Change ▪ Small Lamps ►
Slide 24: Innovation Leadership – Automotive
Over the last years HELLA was 1st to market with several technologies which support strong market positions Innovation Leadership – Automotive SELECTED INNOVATION HIGHLIGHTS Advanced LED Headlamps 24 Ghz (NB) Radar Sensors Intelligent Battery Sensors Global Market Position Global Market Position Glo
Slide 25: Business divisions – Electronic and Lighting
HELLA will benefit in its core business thanks to favorable positioning along major automotive market trends Business devisions – Electronic and Lighting AUTONOMOUS EFFICIENCY & CONNECTIVITY & INDIVIDUALI- DRIVING ELECTRIFICATION DIGITALIZATION ZATION MAJOR AUTOMOTIVE MARKET TRENDS M M M M I I I I S
Slide 26: Autonomous Driving – Technology Highlights
Focus on advanced vision IP and development approaches to enable roadmap towards autonomous driving Autonomous Driving – Technology Highlights Level 0 Level 1 Level 2 Level 3 Level 4 Level 5 Eyes on Eyes on Eyes on Eyes and hands Eyes off Eyes off Hands on Hands on Hands temporarily off temporarily
Slide 27: Autonomous Driving – Technology Highlights
New business model for camera software: Flexible, scalable approach for realization of autonomous driving functionality Autonomous Driving – Technology Highlights TECHNOLOGY Camera Software: „Software as Product“ Current Market Model HELLA Approach CLOSED SYSTEM ▪ Proprietary microprocessor with fix
Slide 28: Autonomous Driving – Technology Highlights
HELLA’s 77 GHz radar sensor solution enables efficient 360° environment recognition for the entire vehicle Autonomous Driving – Technology Highlights TECHNOLOGY 77 GHz Radar Sensor MAIN FUNCTIONALITIES Intersection Assistant KEY FACTS ▪ Highly integrated RF-CMOS Radar System Chip ▪ Higher functional
Slide 29: Efficiency & Electrification – Technology Highlights
Consequent roll-out of 48V DC/DC converter in order to participate in growing 48V market, especially in China Efficiency & Electrification – Technology Highlights TECHNOLOGY 48V DC/DC-Converter MAIN FUNCTIONALITIES KEY FACTS ▪ Conversion efficiency > 95% ▪ Power rating according to alternator up to
Slide 30: Efficiency & Electrification – Technology Highlights
HELLA offers the full electronics solution for lithium-ion battery management system Efficiency & Electrification – Technology Highlights TECHNOLOGY BATTERY MANAGEMENT SYSTEM MAIN FUNCTIONALITIES CALCULATE PROTECT KEY FACTS BATTERY BATTERY AND STATE VEHICLE BMS ECU: Battery state calculation and con
Slide 31: Segment Electronics – Trend overview Efficiency & Electrification
The electrification of the drivetrain leads to a variety of vehicle architectures with different costs and CO2 savings Segment Electronics – Trend overview Efficiency & Electrification EFFICENCY & ELECTRIFICATION Internal Combustion 48V Mild Hybrid Full-hybrid (FHEV) & Battery Electric Engine (ICE)
Slide 32: Connectivity & Digitalization – Technology Highlight
Innovative approach to optimize air quality in the vehicle based on particulate sensor and cloud-based solutions Connectivity & Digitalization – Technology Highlight TECHNOLOGY Cloud-Based Air Quality Management MAIN FUNCTIONALITIES Pollution Notifications KEY FACTS ▪ Particulate Matter Sensor (PM2.
Slide 33: Autonomous Driving – Technology Highlights
HELLA’s multi lens array improves comfort and safety by supportive road projects for different driving situations Autonomous Driving – Technology Highlights TECHNOLOGY Multi Lens Array MAIN FUNCTIONALITIES First to Welcome KEY FACTS market Light ▪ Generation of sharp, contrasting and homogeneous ima
Slide 34: Connectivity & Digitalization – Technology Highlights
High definition headlamp accelerates functionalities and customer benefits Connectivity & Digitalization – Technology Highlights TECHNOLOGY High definition headlamp NEW FUNCTIONALITIES Pedestrian KEY FACTS marking ▪ High definition lighting system ▪ Liquid Crystal with >50.000 Pixel Projection of cr
Slide 35: Individualization – Technology Highlights
Enhancing user experience and safety with HELLA’s dynamic ambient lighting system Individualization – Technology Highlights TECHNOLOGY Dynamic Ambient Lighting System MAIN FUNCTIONALITIES Future Advanced KEY FACTS option Welcome ▪ Competence in light & electronics Scenario ▪ Light as a complementary
Slide 36: HELLA at a glance – Business Segment Automotive
LED competence as driver for HELLA Lighting HELLA at a glance – Business Segment Automotive LED to change the automotive market… …with penetration rates of LED to explode ■ Half of produced light vehicles equipped with LED LED headlamp sets in million units headlamps in 2027 +22.9% CAGR ■ Driver: 58
Slide 37: HELLA at a glance – Business Segment Aftermarket
Competitive advantage through complete aftermarket solutions HELLA at a glance – Business Segment Aftermarket BUSINESS OVERVIEW KEY FINANCIALS Independent Aftermarket (IAM) in EUR millions and % of sales ▪ Sale of own and third-party spare parts to IAM wholesalers FY 2015/16 FY 2016/17 Change ▪ Own
Slide 38: HELLA at a glance – Segment Aftermarket: Independent Aftermarket
IAM keeps strengthening its core product portfolio and seeks further cooperation for third party OE competence HELLA at a glance – Segment Aftermarket: Independent Aftermarket Focus on 1 Strengthening of HELLA‘s 2 Partnership with strong OE core products 3rd party OE suppliers for IAM Products Vehic
Slide 39: HELLA at a glance – Segment Aftermarket: Wholesale
HELLA’s integrated wholesale concept ensures broad and deep customer reach in order to generate further growth HELLA at a glance – Segment Aftermarket: Wholesale POSITIONING ALONG VALUE CHAIN STRATEGIC DIRECTION Capture chances from digitalization Manufacturer ▪ Intensification of E-commerce busines
Slide 40: HELLA at a glance – Segment Aftermarket: Workshop Products
HELLA enables workshops to conduct complex repair and maintenance activities with innovative and cost efficient solutions HELLA at a glance – Segment Aftermarket: Workshop Products State of the art workshop equipment to New cloud-based workshop solutions to address more complex car solve diagnostic
Slide 41: HELLA at a glance – Business Segment Special Applications
Diversification of business portfolio based on existing strengths HELLA at a glance – Business Segment Special Applications BUSINESS OVERVIEW KEY FINANCIALS ▪ Development, production and sale of lighting and electronics in EUR millions and % of sales products for special vehicle manufacturers FY 201
Slide 42: Thanks for your attention
Thanks for your attention 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
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