Autoneum Holding AG · SIX:AUTN
Autoneum — Investor Day (October 2014)
36 slides from Autoneum's investor day presentation, Oct 23, 2014
Slide 1: Media- and Financial Analysts Brunch “Innovations ahead”
Media- and Financial Analysts Brunch “Innovations ahead” Martin Hirzel, CEO and Martin Zwyssig, CFO . Winterthur, October 23, 2014
Slide 2: Agenda
Agenda Presentation Martin Hirzel, CEO 1. Autoneum at a glance 2. Major trends in automotive industry 3. How Autoneum anticipates major trends Presentation Martin Zwyssig, CFO 1. Autoneum’s mid-term targets achievements and FY Outlook
Slide 3: Who we are: Autoneum in a nutshell
Who we are Autoneum in a nutshell Media- and Financial Analysts Brunch . October 23, 2014 3
Slide 4: Agenda
Agenda Presentation Martin Hirzel, CEO 1. Autoneum at a glance 2. Major trends in automotive industry 3. How Autoneum anticipates major trends Presentation Martin Zwyssig, CFO 1. Autoneum’s mid-term targets achievements and FY Outlook
Slide 5: Major trends in automotive industry impacting Autoneum
Major trends in automotive industry Impacting Autoneum Growing car demand Global platform particularly in emerging markets sourcing Tightening CO2 and Alternative pass-by noise regulations powertrain concepts Media- and Financial Analysts Brunch . October 23, 2014 5
Slide 6: Growing car demand in emerging markets
Growing car demand in emerging markets Global light vehicle production by region 84.8 million units in 2013 CAGR 87.3 million units in 2014 4.1% 98.4 million units in 2017 Source: IHS Automotive LV Production Forecast Media- and Financial Analysts Brunch . October 23, 2014 6
Slide 7: Global platform sourcing
Global platform sourcing Increasing share of global platform production • In 2007, 80% of the light vehicles were Ford General Motors Renault produced on global Malibu Kangoo / Clio Kuga / Escape platforms USA, Spain, • Global platform China, Canada France, Argentina Russia, China production is expe
Slide 8: Tightening CO2 and pass-by noise regulations: fuel consumption and CO2
Tightening CO2 and pass-by noise regulations Regulations on fuel consumption & CO2 emissions European Union • 130 g CO2/km in 2015 (43 mpg) Canada • 95 g CO2/km in 2021 (58 mpg) South Korea • 70 g CO2/km in 2025 (93 mpg) • 140 g CO2/km in 2016 (39.5 mpg) • Green Levy • Local taxation • 94 g CO2/km i
Slide 9: Tightening CO2 and pass-by noise regulations: EU pass-by noise
Tightening CO2 and pass-by noise regulations European Union: pass-by noise regulation • EU regulation on passenger car’s pass- by noise issued in 2014 • Exterior noise crucial for cardiovascular diseases and coronaries • Three-stage implementation of upper limits for passenger car’s pass-by noise as
Slide 10: Alternative powertrain concepts: modest increase
Alternative powertrain concepts Modest increase in new powertrain concepts Percentage share by propulsion system 2025 17.9% • Internal Combustion Engine 82% (ICE) remains No. 1 propulsion system for the 2012 19.2% next 20 years 97.4% 2.6% Europe 25.0% • Electrification of the 25.8% powertrain by all
Slide 11: Alternative powertrain concepts: engine downsizing
Alternative powertrain concepts Key focus remains on downsizing of engines Share of engines by number of cylinders (globally) • Mid-term development: 7.8% doubling of share of 3- 9.4% 10.5% cylinder engines, 12.9% 14.0% decrease of 4-cylinder engines and higher 78.0% 77.0% 76.7% • Trend towards down
Slide 12: Agenda
Agenda Presentation Martin Hirzel, CEO 1. Autoneum at a glance 2. Major trends in automotive industry 3. How Autoneum anticipates major trends Presentation Martin Zwyssig, CFO 1. Autoneum’s mid-term targets achievements and FY Outlook
Slide 13: Strategic priorities
Strategic priorities Our answer to the industrial trends Focus on acoustic & thermal management Pursue solutions in Grow profitably consolidation automotive and generate free opportunities cash flow High performance culture Focus on Practice long-term operational partnerships with excellence Leverag
Slide 14: Regional action plans
How Autoneum anticipates major trends Regional action plans Grow Annual sales growth of 20% by: Expand • New customers • Participation in Mexican growth Transform • Roll-out underbody & carpet systems • Roll-out underbody systems • Innovation roll-out • Market share gains Fix • Prepare for next grow
Slide 15: Global presence
How Autoneum anticipates major trends Global presence Autoneum China Great Britain Sweden Chongqing Locations with minority Halesowen Göteborg Shanghai shareholders Heckmondwike Shenyang Investments in associates Stoke-on-Trent Russia Taicang Ryazan Licensees Belgium Guangzhou Tianjin Genk Germany W
Slide 16: Tap potential to ensure future profitable growth
How Autoneum anticipates major trends Tap potential to ensure future profitable growth • Mexico: footprint enhancement to participate in automobile market’s growth • South Korea: New site to develop partnership with Hyundai/Kia on global production platforms • ASEAN: exploit the potential of key eme
Slide 17: Focus on breakthrough ideas
How Autoneum anticipates major trends Focus on breakthrough ideas • Research and advanced Increase focus on development to ensure breakthrough Commitment technological leadership innovations • Consistent IP protection • Close link of innovative 20% of Technical perspective solutions with future dema
Slide 18: Multifaceted benefits through focus on innovation
How Autoneum anticipates major trends Multifaceted benefits through focus on innovation • Position maintaining: innovations replace established products (up to 20% of annual net sales have to be substituted) • Sales growth: new products support sales growth • Rise in profits: innovations support pro
Slide 19: Autoneum’s innovation pipeline
Innovations ahead Autoneum’s innovation pipeline Interior Floor Underbody Engine Bay Body Treatment • Innovation process results in modified products and technologies • Innovation pipeline is well- filled with around 35 projects Di-Light RUS+ Theta-FiberCell Autyl to be applied for: • engine encapsu
Slide 20: Underbody shield based on RUS
Example of successful innovation Underbody shield based on RUS Trend Technological Commercial Innovation First market analysis goal goal project entry • New drive • Lightweight • Market • 2003–2009 • 2009 systems potential • Recycability • Tightening • Cost targets • Acoustic regulations on: perform
Slide 21: Underbody shield based on RUS
Example of successful innovation Underbody shield based on RUS • 5 million light vehicles equipped with RUS based underbody shields since SOP in 2009 2017 • Highest market share of all 2015 Market entry China underbody textile technologies in Market entry USA 2009 Europe Market penetration • Underbo
Slide 22: Agenda
Agenda Presentation Martin Hirzel, CEO 1. Autoneum at a glance 2. Major trends in automotive industry 3. How Autoneum anticipates major trends Presentation Martin Zwyssig, CFO 1. Autoneum’s mid-term targets achievements and FY Outlook
Slide 23: Mid-term financial target: Net sales growth
Mid-term financial target: Net sales Annual growth of 4-5% (excluding currency effects) Growth rate in local currencies (LC) 2011 2012 2013 HY1 2014 Achievement Group +15% +13% +10% +3% BG Europe +10% +1% +5% +3% BG North America +24% +33% +13% +1% BG Asia +36% +3% +26% +18% BG SAMEA +10% +8% +8% +3
Slide 24: 2014 light vehicle production growth by OEM
Mid-term financial target: Net sales 2014 light vehicle (LV) production growth by OEM* Change in LV production 2014 vs. 2013 Ford -0.9% Growth in global LV Renault-Nissan +4.6% production in 2014: +3.2%* Honda +6.6% BMW +9.2% Autoneum’s net sales Chrysler +12.4% growth in local currencies Toyota +2.
Slide 25: 2014 LV production growth by OEM in North America
Mid-term financial target: Net sales 2014 LV production growth by OEM in North America* Growth in LV production by OEM in NA in 2014 -4.1% +1.7% +16.2% +11.1% +21.1% +6.7% +2.7% +18.8% LV production growth in NA +5.1% Pie chart: OEM share in Autoneum’s net sales *based on latest IHS forecast Media-
Slide 26: Annual net sales growth of 4-5%
Mid-term financial target: Net sales Annual net sales growth of 4-5%1 2014: ~ 1’930 million CHF 2020: 2’600 million CHF1 BG BG North SAMEA BG North America BG America SAMEA BG Asia CAGR ≈ 20% BG Asia BG Europe BG Europe 1excluding currency effects Media- and Financial Analysts Brunch . October 23, 2
Slide 27: Mid-term financial target: EBITDA
Mid-term financial target: EBITDA EBITDA margin higher than 9% EBITDA margin 2011 2012 2013 HY1 2014 Achievement Group 6.2% 7.6% 9.0% 10.1% BG Europe 2.8% 4.1% 5.2% 7.7% BG North America 9.2% 10.6% 12.0% 12.0% BG Asia 12.2% 15.5% 17.5% 18.7% BG SAMEA 7.2% 4.2% 4.6% 3.5% Media- and Financial Analysts
Slide 28: Mid-term financial target: Return on net assets
Mid-term financial target: Return on net assets RONA higher than Cost of Capital (WACC) Return on net assets (RONA) 2011 2012 2013 HY1 2014 Achievement Return on net assets 4% 10% 10% 18% Cost of Capital ~ 9% ~ 9% ~ 9% ~ 9% Value creation ~ -5% ~ 1% ~ 1% ~ 9% Return in million CHF 22 49 51 47 Ø net
Slide 29: Mid-term financial target: CAPEX
Mid-term financial target: CAPEX Average long-term CAPEX of 4-4.5% of net sales Capital Expenditure 2011 2012 2013 Guidance FY 2014 2020 CAPEX in % of 4.5% 3.9% 3.9% ≥4.0-4.5% 4.0-4.5% net sales in million CHF 75 75 81 Media- and Financial Analysts Brunch . October 23, 2014 29
Slide 30: Mid-term financial target: Indebtedness
Mid-term financial target: Indebtedness Leverage below 1.5x net debt / EBITDA Net Debt / EBITDA 2011 2012 2013 HY1 2014 Achievement Net Debt / EBITDA 1.5 0.8 0.4 0.6 Ratio Net Debt 155 123 75 101 EBITDA 104 146 184 99 Media- and Financial Analysts Brunch . October 23, 2014 30
Slide 31: Mid-term financial target: Equity ratio
Mid-term financial target: Equity ratio Continue to maintain an equity ratio higher than 30% Equity Ratio 2011 2012 20132 HY1 20142 Achievement Equity Ratio1 29% 32% 33% 36% Total Assets in million CHF 996 960 999 989 Equity in million CHF1 287 303 329 352 1without subordinated shareholders loan 2in
Slide 32: Mid-term financial targets overview
Mid-term financial targets* Overview • Annual growth of 4-5% (excluding currency effects) − Flat to moderate growth in Western Europe Net sales − Moderate growth in North America − Strong growth in BRICS countries • Return on net assets > Cost of Capital • EBITDA margin >9% Profitability/ Return on
Slide 33: Guidance 2014
Guidance 2014 HY1 outlook on FY 2014 confirmed • Global automobile production is likely to grow to around 88 million light vehicles* • Devaluation of various currencies will continue to have a substantial impact on translation into CHF • Production volumes in the automotive industry tend to be l
Slide 34: Autoneum. Mastering sound and heat.
Autoneum. Mastering sound and heat. Media- and Financial Analysts Brunch . October 23, 2014 34
Slide 35: Contacts and event calendar
Contacts and event calendar Investors Media Contact address Dr. Martin Zwyssig Dr. Anahid Rickmann Autoneum Holding AG CFO Head Corporate Communications Schlosstalstrasse 43 / P.O. Box T +41 (0)52 244 82 82 T +41 (0)52 244 83 88 CH-8406 Winterthur investor@autoneum.com media@autoneum.com www.autoneu
Slide 36: Disclaimer
Disclaimer Autoneum is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoeve