Elringklinger Ag · XETR:ZIL2
Elringklinger — Investor Presentation (September 2023)
68 slides from Elringklinger's investor presentation, September 2023
Slide 1: ElringKlinger Group Corporate Presentation
ElringKlinger Group Corporate Presentation September 2023
Slide 2: In a nutshell
ElringKlinger In a nutshell Headquartered in Dettingen/Erms, EUR 1,798m in sales close to Stuttgart 45 locations worldwide +8.2% sales CAGR since 2005 Around 9,500 employees Adjusted EBIT margin at 3.8% Family as a Founded in 1879 strong anchor shareholder Financial figures refer to FY 2022 Corporat
Slide 3: Structural overview
ElringKlinger Structural overview Original Equipment Aftermarket 78% Sales: EUR 1,411 million 14% Sales: EUR 251 million Employees: 7,959 of Group sales Employees: 276 of Group sales Lightweighting/ Metal Sealing Systems & Metal Forming & Elastomer Technology Drivetrain Components Assembly Technolog
Slide 4: Product portfolio
ElringKlinger Product portfolio Metal Sealing Systems & E-Mobility Drivetrain Components ▪ Battery module ▪ PEM fuel cell ▪ Electric drive unit (EDU) Lightweighting/ Metal Forming & Assembly Elastomer Technology Technology ▪ Door module carrier ▪ Thermal shielding ▪ Cockpit cross-car beam ▪ Acoustic
Slide 5: Strategic Overview
OTE Strategic Overview
Slide 6: Megatrends trigger technological transformation process
ElringKlinger Megatrends trigger technological transformation process Urbanization Safety systems Scarcity of resources Autonomous driving Global megatrends Globalization transform the Efficient propulsion automotive industry Technological progress Connectivity Climate change Shared mobility Corpora
Slide 7: Transformation of mobility sector is picking up speed
Group strategy: Product portfolio Transformation of mobility sector is picking up speed Global light vehicle production – in million units Global light vehicle production by powertrain – in million units CAGR +1% +1.4% 71.1 CAGR +5.3% +23% 96.8 +28% +6.7% +31% 64% 89.0 87.9 86.7 36.0 82.4 28.2 77.2
Slide 8: Electrification in major auto regions throughout the decade
Group strategy: Product portfolio Electrification in major auto regions throughout the decade Light vehicle production by region and propulsion system – in million units CAGR +17% 16.4 12.2 63% CAGR 37% 5.5 +16% 25.5 CAGR 26% 63% +23% 11.2 37% 18.2 74% 70% 6.7 65% 2022 2025 2029 64% 9.2 2.6 48% EURO
Slide 9: Corporate transformation results in a growth path
Group strategy Corporate transformation results in a growth path Classic market Classic business units (BUs) EK success factors Managing the demand Capitalizing in the classical business strong market position ① Product Transformation ② Corporate Culture & Developing new products Organization within
Slide 10: Managing the demand in the classical business
Success factor: Product transformation Managing the demand in the classical business Global light vehicle production by powertrain – in million units • Utilizing strong market position • Proactive management of capacities 87.0 CAGR -5% • Consolidation possible when needed 5.4 72.2 72.2 73.6 75.1 • C
Slide 11: Developing new products within classic business areas
Success factor: Product transformation Developing new products within classic business areas Decomposition of electric drive unit (EDU) with selective ElringKlinger components Exemplary battery electric vehicle platform Elastomer gasket Metal elastomer gasket Plastic modules Corporate Presentation |
Slide 12: New technologies added to product portfolio
Success factor: Product transformation New technologies added to product portfolio Business unit E-Mobility Fuel Cell Technology Battery Technology Drivetrain Technology • Start of developing activities more • Serial supplier of components for • Combining power of two strong than 20 years ago more t
Slide 13: Continuing to develop innovations in new technologies
Success factor: Product transformation Continuing to develop innovations in new technologies • IPCEI funding* for innovative battery cell house design • Total funding volume of EUR 33.8m by end of 2026 • Some key technological facts: • Innovative sealing and simpler geometries of single parts State
Slide 14: Broad product portfolio for future technologies
Success factor: Sustainability Broad product portfolio for future technologies ICE Parts Lightweighting (e.g. Gaskets & Shields) Components Fuel Cell Technology Battery Technology Drivetrain Technology Higher temperature and/or Less weight Higher range Alternative technology Alternative technology A
Slide 15: Production set up to be CO2-neutral by 2030
Success factor: Sustainability Production set up to be CO2-neutral by 2030 Scope-1 and Scope-2 emissions – in metric tons Reduction of CO2 and energy efficiency -34.3% -2.5 % CO2 emissions p.a. at every production site (base: 2019) 110.8 110.3 • Increase energy efficiency of buildings and machines •
Slide 16: On track to a digital-driven enterprise for managing the growth
Success factor: Digital transformation On track to a digital-driven enterprise for managing the growth D I G I TA L P L AT F O R M D I G I TA L LY D I G I TA L BUSINESS O P E R AT I N G EMPOWERED INTELLIGENT P L AT F O R M S MODEL PEOPLE ENTERPRISE • New process and system architecture aligned with
Slide 17: Broad product spectrum in systems and components business
Group strategy Broad product spectrum in systems and components business • Developed over the past decades Stacks and systems • Mass market production in fuel cell business, niche markets for battery systems and electric drive units • Mainly in ramp-up phase • Recognized in sales of E-Mobility busin
Slide 18: Transformation starting to materialize: high-end car segment
Transformation starting to materialize In serial production for high-end car market segment • Development and supply of drive units and sub-systems • Order for European all-electric high-end sports car model received Systems • New plant in UK for production • Production started in 2021 • Recognized
Slide 19: Major order for global battery manufacturer ramping up
Transformation starting to materialize Major order for global battery manufacturer ramping up • Contract for prototypes of battery systems received in 2021, including development, supply and testing Systems • Initial volume in single-digit million-euro range • Designated for all-electric sports car
Slide 20: Large-scale order for EKPO by global OEM for bipolar plates
Transformation starting to materialize Large-scale order for EKPO by global OEM for bipolar plates • Broad area of fuel cell applications reflected in order situation • Contracts received for commercial aviation sector, for maritime applications like boats and ships, for intralogistics vehicles, and
Slide 21: Tapping the fast-growing market of electrolyzers
Transformation starting to materialize Tapping the fast-growing market of electrolyzers Projection of total installed electrolysis capacity in the Net Zero Emissions by 2050 Scenario (NZE)1 – in MW EKPO with strategic step into electrolysis market 560,000 • EKPO secures contract with H-TEC PEM SYSTE
Slide 22: Numerous orders in established business units
Transformation starting to materialize Numerous orders in established business units, e.g. Lightweighting Cross-car beam • Global OEM • Volume: mid double-digit million-euro area p.a. • Production from 2023 onwards Structural plastic component • Global OEM • Volume: low double-digit million-euro are
Slide 23: Recent nominations confirm transformation story
Transformation starting to materialize Recent nominations confirm transformation story Originally classical business units New business units Classical order intake Transformation out of itself Transformation by new mobility products as a result of strong market position by bringing in strong expert
Slide 24: Nomination backlog in E-mobility of around EUR 2.5bn
At the starting point of growth period Nomination backlog in E-mobility of around EUR 2.5bn Total nomination volume for e-mobility applications received in the period from January 2021 to June 2023 – in EUR million or % Stacks and systems ~EUR 2.5bn Lightweighting/Elastomer Technology Originally Met
Slide 25: Ambition to achieve more than EUR 3 bn in sales by 2030
At the starting point of growth period Ambition to achieve more than EUR 3 bn in sales by 2030 Actual FY 2022 Ambition EK 2030 1.8 >3 EUR bn EUR bn There is strong growth in strategic future areas: fuel cell, battery, drivetrain, and structural lightweighting as well. By ramping up business, they
Slide 26: Product transformation prevails
At the starting point of growth period Product transformation prevails Sales split Group transformation pathway FY 2022 100% Non-ICE Non-ICE 20% ICE 80% 0% ICE 2020 2025e 2030e New orders Sales projection 2022 – June 2023 Structural Lightweighting (by annual turnover) EDU Fuel cell ICE 19% Battery 8
Slide 27: Financials
Financials
Slide 28: Organic revenue growth of more than 10 percent
Q2 2023: Group orders and sales Organic revenue growth of more than 10 percent Order intake – in EUR million Order backlog – in EUR million Sales – in EUR million Organic: +10.9% -18% +8.8% -13% 475 1,553 468.7 453 466 1,465 1,462 1,449 1,354 377 374 46.9 430.6 -8.8 0.0 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2
Slide 29: Adjusted EBIT markedly improved year-on-year
Q2 2023: Group earnings Adjusted EBIT markedly improved year-on-year EBITDA – in EUR million EBIT bridge – in EUR million EBITDA margin – in % +75% +>100% 57.7 +3 -2 -2 24.8 53.6 47.0 46.8 +11 -8 16.7 26.7 +13 1.8 12.3 10.1 11.0 10.0 +99 6.2 -97 Q2 Q3 Q4 Q1 Q2 Rep. Adjust- Adj. Sales Raw mats Additi
Slide 30: Positive earnings trend continues due to cost discipline
Q2 2023: Group earnings Positive earnings trend continues due to cost discipline EBT – in EUR million Net income (attributable to shareholders) – in EUR million Earnings per share – in EUR ->100% ->100% ->100% 17.7 16.6 6.7 0.11 11.4 0.05 3.3 0.04 6.1 2.4 -2.3 -0.04 -90.7 -94.1 -1.49 Q2 Q3 Q4 Q1 Q2
Slide 31: Operating Free Cash Flow and NWC ratio on prior-year level
Q2 2023: Group cash flow Operating Free Cash Flow and NWC ratio on prior-year level Capex – in EUR million Net Working Capital (NWC) – in EUR million Operating Free Cash Flow – in EUR million Capex ratio – in % of total sales NWC ratio – in % of total sales +26.2% +13.5% -3.3% 24.6 505 518 529 41.0
Slide 32: All major segments deliver y-o-y sales growth
Q2 2023: Segments All major segments deliver y-o-y sales growth Sales – in EUR million Adjusted EBIT margin – in % of segmental sales Original Equipment (OE) Aftermarket +6% +27% 338 360 378 369 360 81.7 75.6 59.7 67.0 61.2 -0.9 5.5 0.3 0.9 24.2 25.1 -4.1 19.1 21.0 17.6 Q2 2022 Q3 Q4 Q1 Q2 2023 Q2 2
Slide 33: Solid order situation and sales on record level
FY 2022: Group sales Solid order situation and sales on record level Order intake – in EUR million Order backlog – in EUR million Sales – in EUR million -5% +5% +10.7% 1,978 1,462 Organic: +7.4% 1,798 1,874 1,386 1,737 1,483 120 1,030 1,033 0 54 1,624 2019 2020 2021 2022 2019 2020 2021 2022 2021 FX
Slide 34: Revenue expansion across all major segments
FY 2022: Group sales Revenue expansion across all major segments Sales by segment/business unit – in EUR million Share of sales – in % Other OE 4 Metal Sealing (<1%) Lightweighting/ Systems Metal Forming Elastomer & Drivetrain & Assembly Others Technology Components Technology E-Mobility 4 (<1%) 500
Slide 35: Sales growth above market level in all regions
FY 2022: Group sales Sales growth above market level in all regions Growth rate light vehicle production vs. Group sales – in % Share of sales – in % of total sales 5.9% 6.8% 17.6% 9.7% Market EK 8.9% 8.3% Europe (excl. Russia) Market EK North America South America and Rest of World 5% Germany 26.9%
Slide 36: Broadly diversified customer base
FY 2022: Group sales Broadly diversified customer base Sales by customer – in EUR million Share of sales – in % of total sales American OEMs 8% 19% (17%) Other 29% (31%) 6% 5% EUR 9% German OEMs 1,798m 19% (19%) 6% 4% Aftermarket 1% 4% 14% (13%) European OEMs Tier 1 5% (6%) 13% (15%) Differences due
Slide 37: Cost inflation affecting operating EBIT
FY 2022: Group earnings Cost inflation affecting operating EBIT EBITDA – in EUR million EBIT bridge – in EUR million EBITDA margin – in % -19% 102 -11 216 +21 -11 -11 -17 181 182 174 -11 61 13.3 -1 12.3 10.5 9.7 -86 -17 -42 2019 2020 2021 2022 EBIT Divestment Sales Raw HR- AdditionalRamp-up Others O
Slide 38: Stable dividend payment for reasons of continuity
FY 2022: Group earnings Stable dividend payment for reasons of continuity EBT – in EUR million Earnings per share – in EUR Dividend payment per share – in EUR ->100% +0% 101 ->100% 0.15 0.15 0.88 42 0.06 -14 -0.64 -56 -1.41 0.00 0.00 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 Corpor
Slide 39: NWC ratio almost on prior-year level, op. free cash flow positive
FY 2022: Group cash flow NWC ratio almost on prior-year level, op. free cash flow positive Capex – in EUR million Net Working Capital (NWC) – in EUR million Operating Free Cash Flow – in EUR million Capex ratio – in % of total sales NWC ratio – in % of total sales 92 +13% 176 -1% 455 424 70 69 403 4
Slide 40: Aftermarket and Engineered Plastics deliver strong results
FY 2022: Segments Aftermarket and Engineered Plastics deliver strong results Sales – in EUR million EBIT margin – in % of segmental sales Original Equipment (OE) Aftermarket +16.9% +10.2% 215 251 1,423 1,186 1,280 1,411 173 182 0.4 2.9 17.6 21.4 19.6 20.0 -2.0 -7.9 2019 2020 2021 2022 2019 2020 2021
Slide 41: Net financial debt/EBITDA ratio continued in target zone
Q2 2023: Group balance sheet Net financial debt/EBITDA ratio continued in target zone Net Financial Debt – in EUR million Net Financial Debt/EBITDA 595 603 580 512 459 -2.4% 400 411 387 390 372 380 363 361 369 364 3.8 2.5 1.4 2.0 1.9 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 2021 2022 2023 C
Slide 42: What's on the financial agenda of FY 2023 and beyond
Financials: Looking ahead What’s on the financial agenda of FY 2023 and beyond Focusing on working capital Managing top-line growth Ensuring cost discipline Pushing digitization management • Preparing for top-line • Continuing strict cost • Preparing for strong • Supply chain bottlenecks growth part
Slide 43: Markets and Outlook
ae Markets and Outlook
Slide 44: LV production outlook for 2023 slightly lifted
Outlook: Markets LV production outlook for 2023 slightly lifted… Light vehicle production by region – in million units +10.7% vs. +7.5% 19.5 15.3 16.9 +0.6% vs. ±0.0% +8.2% vs. +5.2% 2019 … 2022 2023 24.7 26.4 26.6 16.3 EUROPE (excl. Russia) 14.3 15.5 LV prod. in High 2019 … 2022 2023 2019 … 2022 20
Slide 45: Strong growth in H1, H2 expected flat year-on-year
Outlook: Markets …with strong growth in H1, H2 expected flat year-on-year Global LV production – in million units LV production in main markets – in million units H2e: ±0.0% +3.1% EUROPE 9.0 (EXCL. H1: +11.2% 7.6 7.7 8.0 RUSSIA) 43.4 43.3 43.4 38.9 -4.7% GREATER 11.7 14.7 12.6 14.0 CHINA +4.2% NORTH
Slide 46: Outlook: FY 2023 and mid-term
Outlook: FY 2023 and mid-term Assessment of key figures 2023 Organic growth substantially above Mid-term Actual 2022 Organic growth Sales market level Organic growth above market level of 7.4 % EBIT margin (adjusted) Approx. 5 % of Group revenue Sustained improvement 3.8 % Operating FCF Slight year-
Slide 47: The ElringKlinger Difference
Group The ElringKlinger Difference 1 With our strong technological orientation, we provide solutions for mobility demand. We will grow profitably by systems as well as components business. 4 2 We will utilize our strong market position in ICE business, but focus on new technologies. We will further
Slide 48: Appendix
Appendix
Slide 49: ElringKlinger represented in all important auto regions
Group ElringKlinger represented in all important auto regions Production locations of global top 15 OEMs ( ) ElringKlinger production sites ( ) Germany UK China Eastern France Europe/ Spain Turkey Korea Italy Japan USA/Canada India Southeast Asia Mexico South South Africa America Corporate Presentat
Slide 50: Transformation and innovations push content per car
Group Transformation and innovations push content per car Selective indicative examples for ElringKlinger’s rising content per vehicle – in EUR ICE NON-ICE Cylinder-head gasket 3 - 12 Cell contacting system 100 - 300 Cylinder-head gasket 3 - 12 Bipolar plates* 350 - 600 Exhaust gas Underbody battery
Slide 51: Lightweighting – broad offer for reducing weight and emissions
Group strategy: Product portfolio Lightweighting – broad offer for reducing weight and emissions Composite sandwich Hydro-forming-hybrid/ Thermoplastic composite Structural plastic parts components structural components hybrid (incl. ElroSafe) Lightweighting Solutions incl. design, FEA/simulation, t
Slide 52: Weight matters
Group strategy: Product portfolio Weight matters Simulation results WLTC based on target vehicle (1,980 kg vs. 1,680 kg) – energy consumption in kWh/100km 1,980kg 1,680kg -11% Acceleration resistance Natural recuperation 8.0 Air resistance Recuperation 6.8 Rolling resistance Energy consumption 5.0 5
Slide 53: Fuel cell technology is essential for mobility of the future
Group strategy: Product portfolio Fuel cell technology is essential for mobility of the future Total Cost of Ownership for Long Haul Truck in 2030 – in EUR/km Comparison of incremental recharging vs. refuelling investment (Illustrative scenario) (Capex to serve 1,000 passenger vehicles, USD million,
Slide 54: A leading position in fuel cell technology
EKPO Fuel Cell Technologies A leading position in fuel cell technology 60% 40% A German-French joint venture of strong partners, headquartered in the center of Europe Technology leadership Sales ~1.8 bn EUR for fuel cell stacks and components Sales >8.5 bn EUR 46 factories 150 factories Assembly ~9,
Slide 55: Joint venture with Airbus on aeronautic application
Fuel Cell Technology Joint venture with Airbus on aeronautic application Source: Airbus Newsroom (www.airbus.com, Nov 30th, 2022) Corporate Presentation | September 2023 55
Slide 56: Consolidated income statement
FY 2022: Group P&L Consolidated income statement 2022 2021 Sales revenue 1,798 1,624 Cost of sales -1,460 -1,273 Gross profit 338 351 Gross margin in % 18.8 21.6 Selling expenses -140 -121 General and administrative expenses -90 -84 Research and development costs -70 -65 Other operating income 18 33
Slide 57: Consolidated statement of financial position
FY 2022: Group balance sheet Consolidated statement of financial position As of Dec As of Dec As of Dec As of Dec Assets Liabilities and equity 31, 2022 31, 2021 31, 2022 31, 2021 Intangible assets 147 216 Share capital 63 63 Property, plant, and equipment 906 939 Capital reserves 118 118 Financial
Slide 58: Consolidated statement of cash flows
FY 2022: Group cash flow Consolidated statement of cash flows 2022 2021 2022 2021 Earnings before taxes (EBT) -56 101 Proceeds from disposals of PPE, intangible assets and investment property 5 4 Depreciation/amortization (less write-ups) of non-current assets 217 114 Proceeds from disposals of fina
Slide 59: Key figures
Group – Last 5 years Key figures 2022 2021 2020 2019 2018 Order intake 1,874 1,978 1,483 1,737 1,735 Order backlog 1,462 1,386 1,033 1,030 1,020 Sales 1,798 1,624 1,480 1,727 1,699 EBITDA 174 216 182 181 197 EBIT (reported) -42 102 28 61 96 EBIT margin in% -2.3 6.3 1.9 3.5 5.7 EBT -56 101 -14 42 81
Slide 60: Segmental figures
Group – Last 5 years Segmental figures 2022 2021 2020 2019 2018 Group Sales 1,798 1,624 1,480 1,727 1,699 EBIT (reported) -42.2 102.0 28 61 96 EBIT margin in % -2.3 6.3 1.9 3.5 5.7 Original Equipment Sales 1,411 1,280 1,186 1,423 1,408 EBIT (reported) -111 37 -24 5.1 51 EBIT margin in % -7.9 2.9 -2.
Slide 61: Key figures
Group – Last 5 quarters Key figures Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Order intake 374 475 466 377 453 Order backlog 1,354 1,449 1,462 1,465 1,553 Sales 469 488 469 464 431 EBITDA 46.8 53.6 57.7 47.0 26.7 EBIT 16.7 26.0 22.6 18.1 -97.1 EBIT margin in % 3.6 5.3 4.8 3.9 -22.5 EBIT adjusted1 24.8
Slide 62: Segmental figures
Group – Last 5 quarters Segmental figures Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Group Sales 469 488 469 464 431 Adjusted EBIT 24.8 26.4 33.1 18.5 1.8 Adjusted EBIT margin in % 5.3 5.4 7.1 4.0 0.4 Original Equipment Sales 360 369 378 360 338 Adjusted EBIT 3.4 1.1 20.8 -3.1 -13.9 Adjusted EBIT margi
Slide 63: Focused R&D activities
Group Focused R&D activities R&D – in EUR million R&D ratio – in % of total sales 4.7% 4.8% 4.6% 5.1% 4.7% 5.1% 5.1% 5.1% 92 87 81 82 • Integration of tools implies a technologically 75 76 71 leading position in developing ideas 64 • Main focus: E-Mobility, Lightweighting 70 components 76 64 65 • 60
Slide 64: Senior management
Group Senior management From left to right: Thomas Jessulat, Spokesman and CFO (since 2016, Interim spokesman of the management board since 07/2023) Corporate units Finance Digital Transformation Information Technology M&A and Innovations Procurement & Supply Chain Management Business units Electric
Slide 65: More than 140 years of experience
Group More than 140 years of experience History of ElringKlinger in very brief Shareholder structure as at June 30, 2023 1879 Paul Lechler establishes a merchandising business in Stuttgart for technical products and gaskets. 1885 Richard Klinger establishes an Institutional engineering office in Vie
Slide 66: Financial calendar
FY 2023 Financial calendar Annual General Meeting Commerzbank & ODDO BHF May 16, 2023 Annual Corporate Conference September 6, 2023 Q3 Q2 2023 August 3, 2023 Conf. Conf. Conf. Q3 2023 November 7, 2023 Q2 AGM Deutsche Bank dbAccess Berenberg & Goldman Sachs IAA Cars Conference 12th German Corporate C
Slide 67: Contact
ElringKlinger Group Investor Relations Contact Dr. Jens Winter Kathrin Graf Heiderose Mall Dr. Philipp Ottenstein Vice President Strategic Communications Strategic Communications Strategic Communications Strategic Communications Phone: +49 7123 724-88335 Phone: +49 7123 724-88279 Phone: +49 7123 724
Slide 68: Disclaimer
Disclaimer Forward-looking statements and predictions This presentation contains statements about the future. These statements are based on current expectations, market evaluations and predictions by the Management Board, and on information that is currently available to them. The statements about t
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