Schaeffler Ag · XETR:SHA0
Schaeffler — Stifel Virtual German Corporate Conference 2021
31 slides from Schaeffler's conference presentation, Mar 25, 2021
Slide 1: Stifel Virtual German Corporate Conference
Schaeffler Group Stifel Virtual German Corporate Conference (Copenhagen) Dr. Stefan Spindler, CEO Industrial Division March 25th, 2021
Slide 2: Schaeffler Group at a glance – We are an Automotive and Industrial supplier
Overview Schaeffler Group at a glance – We are an Automotive and Industrial supplier 3 Divisions Schaeffler Group 4 Regions In % of FY 2020 In % of FY 2020 • Leading position in technology and Asia Pacific innovation 13% Industrial 25% • Diversified customer base serving 10 customer sectors Europe •
Slide 3: Sustainability Targets address the requirements of our customers
Overview Schaeffler Group – Sustainability Targets address the requirements of our customers Achievements Goals Energy efficiency: CDP Rating 100 GWh cumulated annual § Major improvement in CDP climate rating, moving up from B- to A- efficiency gains through Carbon neutral implementation of energy e
Slide 4: Industrial Division at Schaeffler – Leading global component and system supplier
Overview Industrial Division at Schaeffler – Leading global component and system supplier Revenue in EUR mn Europe Greater China 3,535 3,138 42% of sales in 2020 27% of sales in 2020 Linear Bearings Technology 2019 2020 Broad range of products EBIT1 in EUR mn Mechanical Mechatronic Systems 361 Ameri
Slide 5: FY 2020 results – Strong sales in Wind, EBIT margin impacted by lower volumes
Overview FY 2020 results – Strong sales in Wind, EBIT margin2 impacted by lower volumes in all other sectors and Industrial Distribution Sales by region [mn €] | yoy growth [%] EBIT2 FY 2019 vs. FY 2020 | in EUR mn FY 2019 FY 2020 ∆1 Europe 1,627 1,319 -18.4% Americas 638 528 -13.5% Greater China 72
Slide 6: Secular growth in Wind continues, diversified portfolio provides balanced growth chances
Overview Secular growth in Wind continues, diversified portfolio provides balanced growth chances Orderbook 3-months Order wins yoy growth Large multi-year contract + signed with key Chinese OEM 2 Orderbook 3-month Sales 1 Wind 40 30 New order received 20 for bearings used in centrifuges of a large
Slide 7: Signs of recovery in our Automation business and push of Robotic solutions
Overview Signs of recovery in our Automation business and further successful push of our Robotic solutions Recovery in Industrial Automation business progressing Push of new Robotic solutions • Industrial Automation with positive • Speed reducer transmission for cobot joints 3-month orderbook in Jan
Slide 8: Our Outlook going forward
Overview Our Outlook going forward Automotive Technologies – Global LVP1 2021 Automotive Aftermarket – GDP2 Industrial – Industrial production3 8% 8% Around -5 mn World 6% ~80 6% 74.6 discount vs. IHS estimates 4% 4% 23.6 17.9 20.5 2% 2% 12.6 0% 0% Q1 Q2 Q3 Q4 2020 2021 Europe Americas Greater China
Slide 9: FY 2021 Guidance – Confident outlook, cautious approach
Overview FY 2021 Guidance – Confident outlook, cautious approach Group Guidance Divisional Guidance Automotive Automotive Guidance Industrial Technologies Aftermarket FY 2021 Guidance FY 2021 Guidance FY 2021 Guidance FY 2021 Sales growth1 > 7% Outperf. 5 - 7% 4 - 6% 200 - 500 bps EBIT margin2 6 - 8
Slide 10: Where we stand
SCHAEFFLER Where we stand March 2021 10
Slide 11: Industrial Division – Well diversified sector and channel portfolio
1 Where we stand Industrial Division at Schaeffler – Well diversified sector and channel portfolio …with 8 Sector Clusters + Distribution Sales share 2020 Direct Indirect Wind Raw Materials channel channel Energy & Wind 19% 8% Infrastructure 19% Includes Mining, Metals, Oil & Gas Aerospace Rail 7% 6
Slide 12: Market fell around 7% in 2020 – Rebound not before end of 2021
1 Where we stand Market fell around 7% in 2020 – Rebound to 2019 output level not before the end of 2021 Development of Industrial production (sector basket based on Oxford Economics) until 20251 Key aspects for market growth from 2020 onwards Index, 2019 = 100 • Global industrial production fell by
Slide 13: Majority of sector clusters with positive long-term market outlook
1 Where we stand Majority of sector clusters with positive long-term market outlook despite Covid headwinds Market outlook 2019-20251 - O + ++ +++ Key market drivers Wind • Wind is growing on the global trend towards Raw Materials sustainability and climate-friendly energy sources Aerospace • The on
Slide 14: Schaeffler Industrial is delivering comprehensive solutions for a sustainable planet
1 Where we stand Schaeffler Industrial is delivering comprehensive solutions for a sustainable planet Green energy production Green transportation Energy efficiency Resource optimization Every 2nd to 3rd wind turbine Key components for Rail industry Low friction bearing portfolio for Condition monit
Slide 15: Where we play
SCHAEFFLER Where we play March 2021 15
Slide 16: Balanced sector mix with strong product portfolio
2 Where we play Balanced sector mix with strong product portfolio Creating VALUE Energy & Infrastructure Transportation Mobile Machines & Equipment Indust. Automation Power Industrial Wind Raw Materials Aerospace Rail Offroad Two-Wheelers Transmission Automation Distribution 1 2 3 4 5 6 Wind large s
Slide 17: How we win in our markets
3 How we win in our markets March 2021 17
Slide 18: Wind large size bearings: Ensuring sustainable energy supply
3 How we win in our markets 1 Wind large size bearings: Ensuring sustainable energy supply with highest reliability Sustainable energy Wind power generation production (TWh) Bearing size of more than ~+510% 3 meter ~8,700 outer diameter ~5,400 1,269 1,419 Offshore turbine > 10 MW 2018 2019 2040 Stat
Slide 19: Rail bearings: Supporting both freight and passenger transport
3 How we win in our markets 2 Rail bearings: Supporting both freight and all types of passenger transport Sustainable Rail transport performance transportation Passenger km Tonne km (trillion) (trillion) +130% +73% 9 20 4 12 2018 2050 2018 2050 Source: SCI Rail 2020, IEA 2019 One new bearing leads t
Slide 20: Agricultural technologies: Secure a sustainable food supply
3 How we win in our markets 3 Agricultural technologies: Secure a sustainable food supply for the growing world population Sustainable Population growth World wheat production food production 24/7 (bn people) (millon metric tons) Integrated supplier: reliability in extreme environmental conditions +
Slide 21: Robotics solutions: Integrated linear and rotative solution portfolio
3 How we win in our markets 4 Robotics solutions: Integrated linear and rotative solution portfolio for a key future growth market Smart Cobot sales manufacturing thousand units +32% >>100 18 16 11 2017 2018 2019 2025 Source: IFR for 2017-2019, Schaeffler expectation based on Markets & Markets for 2
Slide 22: OPTIME: Cost-effective wireless condition monitoring
3 How we win in our markets 5 OPTIME: Cost-effective wireless condition monitoring for up to 94% of machines Efficient usage of Condition Monitoring in a typical resources pulp and paper production + Smart 6%: Permanently monitored manufacturing Existing condition monitoring solutions (24/7 measurem
Slide 23: Hydrogen: Carbon-neutral production of green hydrogen via electrolysis
3 How we win in our markets 6 Hydrogen: Carbon-neutral production of green hydrogen via electrolysis supplied by renewable energies Sustainable energy Globally installed electrolysis power production (GW, accumulated) $ 30 – 40 bn 600-1,200 GW market volume for electrolyzers in 2030 75-225 GW ~20% <
Slide 24: How we create value for our customers and the Group
4 How we create value for our customers and the Group March 2021 24
Slide 25: Strong customer and technology focus supported by operational excellence
4 How we create value Strong customer and technology focus supported by operational excellence & leaner structures Strengthen technology leadership for bearings and FIT – Drive operational excellence program new technologies • Maintaining and expanding leading position for • Holistic program across
Slide 26: Industrial – Our Mid-term Targets
4 How we create value Industrial – Our Mid-term Targets Industrial FX-adj. sales growth Top line > Industrial Production growth on average 2021 to 20251 Profitability 12 14% to EBIT margin before special items latest in 2023 1 Oxford Economics March 2021 26
Slide 27: Summary and conclusion
5 Summary and conclusion March 2021 27
Slide 28: We further build on our profitability track record
5 Summary and conclusion We further build on our profitability track record, while entering in promising new technologies Market declined by ~7% in 2020 due to the Covid-19 pandemic, expected to recover and 1 grow by 3% p.a. between 2021 and 2025 Industrial Division sales1 to grow above industrial p
Slide 29: Backup
Backup March 2021 Schaeffler Group November 2020 CMD – Q&A 29
Slide 30: Equity Story – Positioning Schaeffler for long-term value creation
Backup Equity Story – Positioning Schaeffler for long-term value creation 1 Roadmap 2025 in execution – Focus on capital allocation, portfolio management and FCF generation Automotive Technologies – Conquer leadership positions in New Business for electrified 2 Powertrains and Chassis applications 3
Slide 31: Ancillary comments to support the Equity Story
Backup Ancillary comments to support the Equity Story Additional KPIs FY 2021 Comments Order Intake E-Mobility EUR 1.5 - 2.0 bn Starting from 2022 the new target of EUR 2 - 3 bn applies Focus areas include Digitalization, Sustainability, Innovation & Technology and investments in New Capex Around EU
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