Autoneum Holding AG · SIX:AUTN
Autoneum — Investor Presentation (May 2011)
40 slides from Autoneum's investor presentation, May 2011
Slide 1: Investor Presentation 2011
Investor Presentation 2011 May 2011, Autoneum Holding AG
Slide 2: Agenda Investor Presentation 2011
Agenda Investor Presentation 2011 1. Key investment highlights 2. Autoneum’s positioning 3. Market overview and technology trends 4. Strategy 5. Financials overview and mid-term financial targets Appendix
Slide 3: 1. Key investment highlights
1. Key investment highlights 2. Autoneum’s positioning 3. Market overview and technology trends 4. Strategy 5. Financials overview and mid-term financial targets Appendix
Slide 4: Key investment highlights
Key investment highlights 1 Provider of • A global technology leader in integrated solutions for vehicle acoustic and thermal integrated management competences for the global automotive industry solutions • In-depth know-how regarding the combination of acoustic and thermal solutions 2 Technology •
Slide 5: Provider of integrated solutions
1 Provider of integrated solutions A global technology leader in integrated solutions for vehicle acoustic and thermal management for the global automotive industry Engine and exhaust system are the two most important sources within a vehicle that require combined acoustic and thermal management tre
Slide 6: Technology & product leadership
2 Technology & product leadership Product family Recent innovations Description Key benefits • New lightweight backing • Innovative backing resulting in lower Interior Tufted Rieter with a latex-free coating weight as compared to Autoneum’s Floor Carpets Pure existing carpet generation Tuft • Thanks
Slide 7: Global footprint and diversified customer base
3 Global footprint and diversified customer base Global footprint Top 10 OEMs (light vehicles)(1) 13% 10% 10% 8% 8% 7% 7% 6% 5% Manufacturing facilities 5% Development centers Acoustic centers Research & Technology Center (CH) Others (1) • Global manufacturing setup with 48 state-of-the-art producti
Slide 8: Leading market positions
4 Leading market positions (1) Selected product families Europe N. America S. America Tufted Carpets No.2 No.2 NA(2) Inner Dashes No.1 No.1 No.1 Heat Shields No.1 No.3 No.1 Underbody Shields No.1 No.1 NA(2) Engine Bay No.3 No.2 No.1 Dampers / Stiffeners No.2 No.1 No.1 (1) Market positions based on m
Slide 9: Attractive market fundamentals
5 Attractive market fundamentals Light vehicle production by region (CAGR Supportive trends and drivers 2010–13) • CO2-reduction regulation drives the need for light +7% +7% weight solutions, improved aerodynamics and Global 6% idling concepts like engine encapsulation • Increase of exterior noise r
Slide 10: Upside from 2008 restructuring program
6 Upside from 2008 restructuring program Cornerstone of 2008 restructuring program Impact 1 Move portion of manufacturing capacity from 100% Western to Eastern Europe Additional 2 Optimize manufacturing capacities in North upside potential America 3 Simplification of the organization, reduction of o
Slide 11: 2. Autoneum's positioning
1. Key investment highlights 2. Autoneum’s positioning 3. Market overview and technology trends 4. Strategy 5. Financials overview and mid-term financial targets Appendix
Slide 12: Reputation and market position built over decades
Reputation and market position built over decades • Acquisition of • Acquisition of • Acquisition of • Rieter • Rieter • Launch of Unikeller AG, Firth Fimit, Italy Automotive wins Automotive Performance Switzerland Furnishings, (components for the PACE award opens new Improvement (noise control UK (
Slide 13: Business groups 2010
Business groups 2010 Business Groups Europe North America (5) Asia SAMEA (6) Key Financials 2010 Net sales (CHFm) (1) 897 549 77 150 % y-o-y growth 13% 36% 48% 17% (2) Europe North America (5) Asia SAMEA (6) EBITDA (CHFm) 20 58 9 13 % margin 2% 10% 12% 9% Operational Manufacturing (3) (2) facilities
Slide 14: Sales split 2010
Sales split 2010 (1) Body Interior Floor Underbody Engine Bay Interior Trim Trunk Treatment • Inner Dashes • Underbody Shields • Engine Covers • Dampers / Stiffeners • Headliners (only • Trunk Side Trims • Non-woven Carpets • Floor Pans • Hoodliners • Sealants Truck) • Trunk Flooring • Tufted Carpet
Slide 15: Overview of Autoneum's Board of Directors and Group Executive Board
Overview of Autoneum‘s Board of Directors and Group Executive Board Board of Directors Hans-Peter Schwald, Chairman Rainer Schmückle, Michael Pieper, This E. Schneider, Peter Spuhler, Ferdinand Stutz CEO Martin Hirzel CFO and Business Group Business Group Business Group Business Group Deputy CEO Eur
Slide 16: 3. Market overview and technology trends
1. Key investment highlights 2. Autoneum’s positioning 3. Market overview and technology trends 4. Strategy 5. Financials overview and mid-term financial targets Appendix
Slide 17: Market trends & technology drivers
Market trends & technology drivers Automotive market trends • Ongoing recovery in established markets from 2008/2009 crisis (EU, North America) • Ongoing significant growth in emerging markets • Automotive market trend to smaller cars – B, C and D segments expected to remain the largest passenger ca
Slide 18: Strong automotive market recovery
Strong automotive market recovery Strong global recovery in production volumes (+25% 2009/2010 growth), growth rates vary by region Strong pick-up in demand in North America, expected to be back to 2007 level in 2013 Emerging markets, in particular China and India, play an increasing role with stron
Slide 19: CO2-reduction and tightening of exterior noise regulations
CO2–reduction and tightening of exterior noise regulations Need for lightweight and quiet engine more obvious than ever before Weight reduction, aerodynamics improvement and idling concepts, such as engine encapsulation, can significantly help to reduce penalty payments for OEM Autoneum innovation a
Slide 20: 4. Strategy
1. Key investment highlights 2. Autoneum’s positioning 3. Market overview and technology trends 4. Strategy 5. Financials overview and mid-term financial targets Appendix
Slide 21: Strategic priorities
Strategic priorities We want to be present and serve major vehicle manufacturers in both established markets and growing markets We want to offer innovative products at competitive cost that leverage our competence in acoustics/thermal management Innovation and cost leadership 1 Continuous • Strong
Slide 22: Continuous performance improvement
1 Continuous performance improvement Strong focus on cost reduction with continuous improvement (“MOVE”) and special projects Running business New business Global cost • Reduction of material usage/material costs • Strict new order acceptance and engineering reduction program • Productivity increase
Slide 23: Optimization of manufacturing footprint
2 Optimization of manufacturing footprint Optimization of manufacturing network worldwide to decrease structural costs Target significantly lower break-even Targets Current achievements • Alignment of manufacturing • Adjustment of manufacturing network in Europe and North facilities to reflect curre
Slide 24: Addressing emerging markets opportunity
3 Addressing emerging markets opportunity Focus on China and India as main drivers of growth in the global automotive industry Size CAGR Autoneum Country Plants / R&D centers Status Top 3 OEMs (2) 2010 (1) 10–13 (1) priority 16.6m 8.5% • Taicang • Launch in 2010, currently ramp-up • Shenyang • Launc
Slide 25: Maintain product and technology leadership
4 Maintain product and technology leadership • Strong and centralized Research and Technology (R&T) Center focused on advanced development to define methods, materials and technologies of the future • Protection of know-how through research centralization in Switzerland • A technological partner of
Slide 26: 5. Financials overview and mid-term financial targets
1. Key investment highlights 2. Autoneum’s positioning 3. Market overview and technology trends 4. Strategy 5. Financials overview and mid-term financial targets Appendix
Slide 27: Historical sales
Historical sales Net sales (2006 – 2010) Comments CHF MM 2,500 • In 2008 through 2009, steep decline of vehicle 2,295 production in Autoneum’s main markets across 2,115 most customers (2) 2,000 1,960 • In H2 2009 and 2010, Autoneum benefited from +21% 149 (2) improving market conditions 45 1,678 150
Slide 28: Historical EBITDA, before special charges
Historical EBITDA, before special charges EBITDA, before special charges (2008 – 2010) Comments CHF MM in % of net sales 150 7.5% • 2009 profitability impacted by sharp volume decline due to financial crisis 6.4% 6.5% • EBITDA improvement in 2010 driven by: 120 107 5.5% - Pick-up in automotive produ
Slide 29: Significant reduction of break-even point
Significant reduction of break-even point Break-even point (1) reduced by 21% from 2008 to 2010 Net sales at which EBIT break-even is achieved Comments Significant structural break-even adjustment CHF MM through restructuring 2'200 • Total manufacturing capacity aligned in 2'100 Europe and North Ame
Slide 30: Key historical financials per business group
Key historical financials per business group Net sales evolution (2008 – 2010) Comments CHF MM 1,960(1) 1,387(1) 1,678(1) • BG Europe and BG North 1,400 1,222 America severely impacted by 1,200 financial crisis 1,000 897 800 794 • Initiated restructuring program 549 and operational performance 600 5
Slide 31: Historical capital expenditure and R&D
Historical capital expenditure and R&D Capital expenditure (2008 – 2010) Comments CHF MM in % of net sales • Majority of the investments in property, plant and 4.4% 120 4.5% equipment were made in connection with new 4.3% 4.1% 90 85 awarded businesses or to increase efficiency 72 3.0% 60 56 • Level
Slide 32: Historical operating working capital
Historical operating working capital Operating working capital (2008 – 2010) Comments CHF MM in % of net sales • Operating working capital requirement was 400 16.0% significantly reduced to 9.4% of net sales as of 14.2% December 31, 2010 despite increased sales 350 14.0% 12.4% • Improvements driven
Slide 33: Capitalization table
Capitalization table Capitalization Table (1) Comments As of December 31, 2010 • Shareholder’s equity will increase by As CHF 55 MM, equivalent to the debt amount (CHF MM) Actual Adj.(2) adjusted(2) waived by Rieter Holding prior to the separation Cash pool receivables - Rieter 26 (26) – • At execut
Slide 34: Mid-term financial targets
Mid-term financial targets • 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 Asia • Return on Net Assets > Cost of Capital Profitability / • Main improvement driven by operational levera
Slide 35: Appendix
1. Key investment highlights 2. Autoneum’s positioning 3. Market overview and technology trends 4. Strategy 5. Financials overview and mid-term financial targets Appendix Note: Except as otherwise indicated, the financial, operational and statistical information relating to Autoneum included herein
Slide 36: New segment information – historical combined for Autoneum
New segment information – historical combined for Autoneum Autoneum BG BG North BG 2009 (1) Mio CHF Europe America BG Asia SAMEA Other Total Net sales 794.2 403.1 52.0 127.6 9.7 1’386.6 EBITDA -46.4 22.7 3.2 4.4 -5.4 -21.5 Depreciation and amortization -55.2 -27.4 -5.2 -3.7 -2.8 -94.3 EBIT -101.6 -4
Slide 37: Estimated production volumes in million units
B/C/D to remain the largest segments B/C/D to remain the largest vehicle segments with estimated solid growth of ~ 6% p.a. (2010-13) All categories attractive for Autoneum except segment A because of low need for vehicle acoustics/thermal management services 90.0 2010-2013 CAGR 88.8 Estimated produc
Slide 38: Alternative powertrain concepts
Alternative powertrain concepts Estimated Treatment other noise and at around Estimated ~6% of at around global ~3% of vehicle global production vehicle in 2020 production heat sources in 2020 Pure electric vehicle Electric with Hybrid vehicles range extender Future Current (noisier) engine noise tr
Slide 39: Example: Rieter ULTRA SILENT
Example: Rieter ULTRA SILENT A new technology for underbodies and trunks • Innovative lightweight fiber technology for underfloor panels and under engine shields • Fully recyclable and 100% glass-free PET • High performance and competitive economics • Best-in-class combination of absorption and high
Slide 40: Disclaimer
Disclaimer These materials do not constitute, or form a part of, an invitation or an offer to purchase, sell, trade or subscribe for any securities, and neither these materials (including any portion hereof) nor any distribution of these materials (including any portion hereof) shall form the basis