Schaeffler Ag · XETR:SHA0
Schaeffler — Investor Presentation (April 2018)
30 slides from Schaeffler's investor presentation, Apr 4, 2018
Slide 1: Strategy “Mobility for tomorrow”
Strategy “Mobility for tomorrow” Klaus Rosenfeld Chief Executive Officer Schaeffler AG
Slide 2: Agenda
Agenda 1 Overview 2 Background 3 Strategy “Mobility for tomorrow” 4 Excellence program “Agenda 4 plus One” 5 Outlook 2 04/04/2018 Strategy "Mobility for tomorrow"
Slide 3: Schaeffler in facts – Strong starting point
1 Overview Schaeffler in facts – Strong starting point Strong organic growth Strong customer base 5% in 2020 Nearly 73 plants 2,400 with around 11,800 customers Ø Sales growth 2008-2017 patents filed in 2017 18 R&D centers Far more than 10,000 different products More than 170 locations in 50 countri
Slide 4: Chronology 2009-2016 – Foundation for further profitable growth
1 Overview Chronology 2009-2016 – Foundation for further profitable growth Schaeffler Group Key milestones Restructuring and Today transformation phase finalized “One Schaeffler” implemented in 2013 – 2015 New corporate and capital structure Sustainable profitable growth implemented “Mobilit
Slide 5: Starting point for developing our strategic direction – Four megatrends
1 Overview Starting point for developing our strategic direction – Four megatrends Greenhouse-gas emissions drive global warming – highest CO₂ concentration since beginning of measurement, automotive industry as one of the main drivers Environment Climate change Focus on limiting climate changes
Slide 6: Basis for strategic direction – Four focus areas
1 Overview Basis for strategic direction – Four focus areas Eco-friendly Urban drives mobility Optimized Two-wheelers combustion engine Inner-city railways Electric vehicles Micro mobiles Industrial drives Mobility Interurban for tomorrow Energy mobility chain Rail vehicles Wind powe
Slide 7: Schaeffler Group – Background
2 Background Schaeffler Gruppe – Background “We are a precision mechanic with best-in-class manufacturing and system expertise.” 7 04/04/2018 Strategy "Mobility for tomorrow"
Slide 8: Automotive – Four growth drivers
2 Background Automotive – Four growth drivers Growth Drivers Electrification Stricter global (CO2 emissions) regulations Gradual shift toward (purely) electric drives with hybrids serving as transitional technology Autonomous driving Vision of accident-free driving Gradual shift towards (semi-)a
Slide 9: Automotive – Market growth driven by new technologies
2 Background Automotive – Market growth driven by new technologies Global production volume 1) Accelerated Key aspects in millions of units scenario 2) Continuous market growth expected for the next years CAGR 2010/2030 +2.4% p.a. 120 Future growth based on increasing 111 Battery electric engine
Slide 10: Industrial – Four growth drivers
2 Background Industrial – Four growth drivers Growth drivers Energy efficiency Increasing importance of efficient drive technologies Conventional drivetrains (hydraulics, combustion engines) increasingly being replaced/complemented by electric drives Innovation Highly innovative technologies for
Slide 11: Industrial – Stagnating market growth
2 Background Industrial – Stagnating market growth Global market volume1) Key aspects in EUR bn Global roller bearing market stagnates considering price declines CAGR (CAGR 2015/2020 ~0.5% p.a.) + 2.1% p.a. / + 0.5% p.a. 2) 31 Wind and aerospace with biggest growth Aerospace (3.2%) 3) rates, but
Slide 12: Our strategy “Mobility for tomorrow”
3 Strategy “Mobility for tomorrow” Schaeffler Group – Our strategy “Mobility for tomorrow” “We want to contribute to make the world a little cleaner, safer and smarter.“ 12 04/04/2018 Strategy "Mobility for tomorrow"
Slide 13: Our strategy concept – essential elements
3 Strategy “Mobility for tomorrow” Our strategy concept – 4 essential elements A Vision/Mission „Mobility for tomorrow “ B Strategic pillars Preferred Automotive A global Components E-Mobility, Quality, Attractive Global family technology and Industrial player with and systems Industry 4.0, efficien
Slide 14: Mission and Vision – Our mandate and our aspiration
3 Strategy “Mobility for tomorrow” A Mission and Vision – Our mandate and our aspiration Vision “As a leader in technology, we combine Mission a passion for innovation with the highest “Guided by the values of a global family standards of quality to shape the future business, we work closely togethe
Slide 15: Strategic pillars – Our strategic framework
3 Strategy “Mobility for tomorrow” B 8 strategic pillars – Our strategic framework 1 We want to be the preferred technology 2 We are an Automotive and Industrial 3 We are a global company with a local presence 4 We produce components and systems. partner for our supplier. throughout customers. the w
Slide 16: Our customers are our top priority
3 Strategy “Mobility for tomorrow” 1 We want to be the preferred technology partner for our customers Portfolio of products and services Automotive Customer focus through cooperative collaboration Top 10 Industry customers 15% Our customers are Share in sales our top priority Top 10 Automotive custo
Slide 17: We are an automotive and industrial supplier
3 Strategy “Mobility for tomorrow” 2 We are an automotive and industrial supplier Automotive Industry Global production network Production Expertise in roller bearings for both markets Global research network Technology Central coordination of all R&D activities Integrated concept enables synerg
Slide 18: We are a global player with local presence
3 Strategy “Mobility for tomorrow” 3 We are a global player with local presence Production and R&D locations Europe by region Greater China 4% 46 plants 26% 08 plants 96%96% 010 R&D centers 96% 96% 74%96% 01 R&D centers 2017 2017 Americas 31% 14 plants Asia/Pacific 69% 05 R&D centers 65% 05 plants 2
Slide 19: We produce components and systems
3 Strategy “Mobility for tomorrow” 4 We produce components and systems Portfolio of Products and Services Key aspects Components and mechanical systems are Automotive Industry our core competence with significant sales contribution and target – continuous optimization and technology Added value Co
Slide 20: E-Mobility, Industry 4.0, and Digitalization as key opportunities
3 Strategy “Mobility for tomorrow” 5 We view E-Mobility, Industry 4.0, and Digitalization as key opportunities for the future E-Mobility More than 15 years composition Digitalization competence for future drivetrain concepts Expertise in engine, transmission, and chassis form the basis for ideal
Slide 21: Highest possible quality, efficiency, and delivery performance
3 Strategy “Mobility for tomorrow” 6 We strive for the highest possible quality, efficiency, and delivery performance Quality Delivery reliability Key aspects On time delivery in % Comprehensive quality management Continuously ensure high level of quality with group-wide guidelines and with resp
Slide 22: We want to be an attractive employer
3 Strategy “Mobility for tomorrow” 7 We want to be an attractive employer Schaeffler HR Strategy Key aspects Internationalization and professionalization of HR function based Strategic Workforce Employer Branding Talent Training & Leadership & on a global HR Vision and Mission Planning & Recruitin
Slide 23: We live by the values of a global family business
3 Strategy “Mobility for tomorrow” 8 We live by the values of a global family business Sustainable Innovative A long-term view and continuity will For (nearly) every problem there foster the growth of the Schaeffler is a solution. If not, we will Group, thereby enabling a future create one! worth li
Slide 24: Our implementation program
4 Excellence program “Agenda 4 plus One” Schaeffler Group – Our implementation program “Every strategy is only as good as its implementation.” 24 04/04/2018 Strategy "Mobility for tomorrow"
Slide 25: Strategy Dialogue 2016 – Excellence program “Agenda 4 plus One” defined
4 Excellence program “Agenda 4 plus One” C Strategy Dialogue 2016 – Excellence program “Agenda 4 plus One” defined Group initiatives Agenda 4 plus One Core business Long-term Customer focus Schaeffler Portfolio 1 competitiveness and value Engine Systems Industrial OEM creation Transmission Systems I
Slide 26: 20 strategic initiatives – Clear responsibilities
4 Excellence program “Agenda 4 plus One” C 20 strategic initiatives – Clear responsibilities Agenda 4 plus One 20 strategic initiatives Customer Focus Operational Excellence 1 Customer Excellence 4 Quality for Tomorrow Customer focus Long-term 1 competitiveness and value 2 E-Mobility 5 6 Global Foot
Slide 27: Financial Ambitions for 2020 – Sustainable value creation
4 Excellence program “Agenda 4 plus One” D Financial Ambitions for 2020 – Sustainable value creation 6 substantial figures Overriding objective Sales growth1) Ø 4 – 6% p. a. FX-adjusted EBIT margin 12-13% in 2020 before one-off effects Free cashflow1) ~900 million in 2020 Long-term profitable growth
Slide 28: How we interact together – Transparency, Trust and Teamwork
4 Excellence program “Agenda 4 plus One” How we interact together – Transparency, Trust and Teamwork Our approach Our principles One global brand Transparency One action plan Identification „One Commitment One Schaeffler" consistent Performance compensation system Passion Trust Teamwork Four common
Slide 29: Summary – Key messages
5 Outlook Summary – Key messages 1 Schaeffler Group strategy defined following intensive dialogue with leadership team 2 Analysis of megatrends and definition of 4 focus areas 3 Vision, mission, and four corporate values of Schaeffler Group formulated 4 Mobility Eight strategic pillars define future
Slide 30: Because yesterday we were already thinking about tomorrow.
5 Outlook Strategy “Mobility for tomorrow“ Because yesterday we were already thinking about tomorrow. 31 04/04/2018 Strategy "Mobility for tomorrow"