Slide 1: Welcome to the 2019 Annual Results Conference
Winterthur, March 4, 2020 Welcome to the 2019 Annual Results Conference Autoneum. Mastering sound and heat.
Slide 2: Agenda
Agenda 1. Business year 2019 Matthias Holzammer, CEO 2. Financial results 2019 Bernhard Wiehl, CFO 3. Outlook 2020 Matthias Holzammer, CEO 2
Slide 3: 2019: year in review
2019: year in review Financials Market Strategy • Organic revenue growth of 2.5% • 2nd consecutive year of • Roll-out of lightweight Ultra-Silent outpaced declining market decreasing global automobile technology in Asia production • EBIT margin before one-time • Expansion of vertical integration imp
Slide 4: Significant decline in all major markets
Light vehicle production 2019 by region Significant decline in all major markets 2018: 94.2 million light vehicles (LVs) 2019: 88.9 million LVs (–5.6% vs. 2018) 26.6 24.4 18.8 18.1 1.6 1.6 13.0 12.5 Russia –1.3% China USA/Canada –8.2% –4.2% Europe* 9.2 9.2 1.5 1.4 4.7 4.2 –4.1% Turkey 3.9 3.8 –5.4%
Slide 5: Well-balanced customer portfolio
Split of revenue 2019 Well-balanced customer portfolio SAMEA 14 5 4 Asia 2 12 12 2 2 5 Europe 11 Revenue by 39 Revenue by region 5 customer (%) (%) 5 9 North America 6 44 6 7 6 7 5
Slide 6: Root causes and effects of crisis
Update North America Root causes and effects of crisis Root causes Effects Aggressive acquisition pricing Aggressive growth Launch without production-ready products and sales strategy Destabilization of two US Lack of risk and complexity consideration plants Limited customer know-how of Euro
Slide 7: Agenda
Agenda 1. Business year 2019 Matthias Holzammer, CEO 2. Financial results 2019 Bernhard Wiehl, CFO 3. Outlook 2020 Matthias Holzammer, CEO 7
Slide 8: Overview
Key figures Overview CHF million 2018 2019 Change Revenue 2 281.5 2 297.4 15.9 EBITDA 197.2 164.0 –33.2 in % of revenue (change in pp) 8.6% 7.1% –1.5 EBIT before one-time effects* 114.1 35.0 –79.1 in % of revenue (change in pp) 5.0% 1.5% –3.5 EBIT 114.1 −32.9 –147.0 in % of revenue (change in pp) 5.
Slide 9: Growth in declining global market
Revenue development Growth in declining global market CHF million 36.5 −10.8 −42.2 21.1 −55.2 66.4 2 297.4 2 281.5 Organic revenue growth: 2.5% Revenue BG Europe BG North BG Asia BG SAMEA Corporate and Currency Revenue 2018 America eliminations translation/ 2019 hyperinflation effect 9
Slide 10: Declining market and inefficiencies impacted EBIT
EBIT development* Declining market and inefficiencies impacted EBIT CHF million Margin Margin 5.0% 5.7% Margin −30.9 −7.3%* 114.1 Margin −64.6* 1.5%* Margin Margin 6.5%* 8.5% 17.6 35.0* −1.0* −0.1 EBIT BG Europe BG North BG Asia BG SAMEA Corporate and EBIT 2018 America eliminations 2019 *Before one-
Slide 11: New standard for lease accounting (IFRS 16)
Income statement New standard for lease accounting (IFRS 16) 2019 IFRS 16 2019 CHF million 2018 (excl. IFRS 16) effects (incl. IFRS 16) Revenue 2 281.5 2 297.4 2 297.4 Material expenses −1 101.1 −1 154.6 −1 154.6 Employee expenses −627.3 −642.8 −642.8 Other expenses −404.1 −401.2 38.0 −363.2 Other i
Slide 12: Walk from EBITDA to net result
Net result Walk from EBITDA to net result CHF million −128.9 164.0 EPS −20.82 −68.0 −32.9 −55.3 −77.7 −22.3 −96.8 −22.4 −19.1 EBITDA Depreciation, One-time EBIT Financial Earnings Income Net result Net result Net result 2019 amortization effect from 2019 result before taxes 2019 attributable attribu
Slide 13: Lower equity ratio as a result of higher net debt
Balance sheet Lower equity ratio as a result of higher net debt 31.12.2019 IFRS 16 31.12.2019 • Investments in tangible assets CHF million 31.12.2018 reduced by CHF 36.8 million (excl. IFRS 16) effects (incl. IFRS 16) compared to 2018 Total assets 1 601.3 1 539.4 299.7 1 839.1 • Net working capital
Slide 14: Improved free cash flow despite lower earnings
Free cash flow (FCF) generation Improved free cash flow despite lower earnings CHF million −9.9 0.1 −40.7 36.8 8.5 −33.2 −16.8 19.4 15.8 FCF 2018 Change Change Change Change net Change Change Change in FCF EBITDA NWC other interests income investments other FCF 2019 operating paid taxes paid in tang
Slide 15: Higher net debt due to lack in FCF generation
Net debt Higher net debt due to lack in FCF generation CHF million −2.8 −1.5 −25.8 −9.9 −32.3 21.0 335.0 283.7 262.7 Net debt Finance Net debt FCF Dividends to Repayment Purchase Currency Net debt 31.12.2018 lease (excl. AUTN/minority of lease of treasury translation (excl. liabilities lease shareho
Slide 16: Agenda
Agenda 1. Business year 2019 Matthias Holzammer, CEO 2. Financial results 2019 Bernhard Wiehl, CFO 3. Outlook 2020 Matthias Holzammer, CEO 16
Slide 17: Further decline in global automobile production
Light vehicle production forecast 2020 Further decline in global automobile production 2019: 88.9 million LVs 2020: 87.2 million LVs (–1.9% vs. 2019) 24.4 23.3 18.1 17.8 12.5 12.7 1.6 1.5 Russia –5.7% China USA/Canada –4.5% +1.7% Europe* 9.2 9.0 1.4 1.3 4.2 4.0 –1.5% 3.8 3.8 Turkey –5.7% India Japan
Slide 18: Action plan 2020
Outlook Action plan 2020 Improve profitability Turnaround program BG North America • Implementation of improvement actions to significantly reduce losses in 2020 • Identification of additional improvements beyond 2020 Increase in manufacturing performance at all Business Groups • Reduction of sc
Slide 19: Turnaround program in full swing
Action plan turnaround North America Turnaround program in full swing • Comprehensive North America turnaround program initiated and implementation started at all locations • Specific action plan for US plant in Aiken in order to improve operational and commercial performance Seven work packages hav
Slide 20: Improvements of Aiken plant in USA
Turnaround program in North America Improvements of Aiken plant in USA Dedicated support from internal expert team working on Aiken plant recovery since Q4/2019 First achievements: Production inventory reduced from CHF 9.5 million to CHF 6 million Scrap rates improved from >12% to <4% Direct l
Slide 21: Focus on turnaround in North America
Action plan 2020 per region Focus on turnaround in North America Europe Asia • Further improve profitability • Increase profitability and • Gain market shares in declining competitiveness market • Boost Lean Manufacturing and • Flexible adjustment to Autoneum Production System fluctuating demand (AP
Slide 22: Guidance 2020
Guidance 2020 Revenue Revenue growth is expected to be at market level. Market Global automobile production is forecasted to decrease.* Profitability & cash • Based on the uncompromising focus on the turnaround and the implementation of corresponding measures in North America, Autoneum aims at signi
Slide 23: and,
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Slide 24: Contacts and event calendar
Contacts and event calendar Investors and Financial Analysts Media Contact address Bernhard Weber Dr Anahid Rickmann Autoneum Holding Ltd. Head Financial Services & IR Head Corporate Communications & Schlosstalstrasse 43 / P.O. Box Responsibility CH-8406 Winterthur T +41 52 244 82 07 T +41 52 244 83
Slide 25: 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