Autoneum Holding AG · SIX:AUTN
Autoneum — FY2018 Earnings Presentation
30 slides from Autoneum's earnings presentation, Mar 6, 2019
Slide 1: Welcome to the 2018 Annual Results Conference
Winterthur, March 6, 2019 Welcome to the 2018 Annual Results Conference Autoneum. Mastering sound and heat.
Slide 2: Agenda
Agenda 1. Business year 2018 Martin Hirzel, CEO 2. Financial results 2018 Dr Martin Zwyssig, CFO 3. Outlook 2019 Martin Hirzel, CEO 2
Slide 3: Highlights 2018
Highlights 2018 Financials Market Strategy • Organic revenue growth of 3.7% • For the first time since 2009, • Opening of first Hungarian plant significantly above market global automobile production in Komárom shrank compared to prior year • EBIT margin decreased to 5.0% • Expansion of tooling prod
Slide 4: Significant decline in China and European countries
Top 20 light vehicle production 2018 Significant decline in China and European countries By country By OEM group 18 18 12 Russia 12 Slovakia Geely Thailand Indonesia India 6 6 Tata Brazil 2018 vs. 2017 (%) France Suzuki Hyundai Mazda Czech Republic Mexico USA BMW FCA Honda Toyota VW 0 0 Great Spain
Slide 5: BG Europe became largest revenue contributor
Split of revenue 2018 BG Europe became largest revenue contributor SAMEA 15 5 2 Asia 2 11 2 12 3 5 Revenue by Europe 5 Revenue by Business Group 43 customer 11 (%) (%) 6 North America 7 6 41 6 6 6 6 5
Slide 6: Agenda
Agenda 1. Business year 2018 Martin Hirzel, CEO 2. Financial results 2018 Dr Martin Zwyssig, CFO 3. Outlook 2019 Martin Hirzel, CEO 6
Slide 7: Key figures Overview
Key figures Overview CHF million 2018 2017* Change Revenue 2 281.5 2 205.4 76.1 EBITDA 197.2 257.8 –60.7 in % of revenue (change in pp) 8.6% 11.7% –3.0 EBIT 114.1 179.9 –65.8 in % of revenue (change in pp) 5.0% 8.2% –3.2 Net profit 74.7 118.9 –44.3 Investments in tangible assets 162.6 173.6 –11.0 Fr
Slide 8: Growth in revenue despite declining global market
Revenue development Growth in revenue despite declining global market CHF million +24.4% +7.7% –3.4% +6.6% 3.7 26.4 −32.7 15.9 68.7 0.0 −5.9 2 281.5 2 205.4 Organic revenue growth +3.7% Revenue Currency Disposal of BG Europe BG North BG Asia BG SAMEA Corporate and Revenue 2017* translation/ Brazilia
Slide 9: Operational problems in USA impacted profitability
Operating result (EBIT) development Operational problems in USA impacted profitability CHF million Margin 8.2% 9.0 –73.5 Margin 179.9 5.0% –9.9 9.5 –1.0 114.1 EBIT BG Europe BG North BG Asia BG SAMEA Corporate and EBIT 2017* America eliminations 2018 *Restated to reflect the adoption of IFRS 15. 9
Slide 10: BG Europe again increased profitability
EBIT per BG BG Europe again increased profitability CHF million EBIT 2017* Margin EBIT 2018 Margin 8.3% 8.2% Margin 6.8% Margin 82.0 11.9% 73.0 65.3 Margin 7.3% Margin Margin 9.7% 1.1% Margin 28.8 –0.9% 18.9 1.2 10.8 –8.2 BG Europe BG North America BG Asia BG SAMEA *Restated to reflect the adoption
Slide 11: BG North America turned into YTD losses in Q4
EBIT BG North America per quarter BG North America turned into YTD losses in Q4 CHF million Q1 Q2 Q3 Q4 18.2 17.7 18.3 10.6 11.1 7.7 O –5.2 N D EBIT 2017* EBIT 2018 –21.4 *Restated to reflect the adoption of IFRS 15. 11
Slide 12: Bridge from EBITDA to net profit
Net profit Bridge from EBITDA to net profit CHF million –83.1 Tax rate 28.5% EPS 197.2 –9.6 –29.8 CHF 11.83 –19.6 114.1 104.5 74.7 55.1 EBITDA Depreciation, EBIT Financial Profit Income Net profit Net profit Net profit amortization result before taxes attributable attributable & impairment taxes to
Slide 13: Solid equity ratio
Balance sheet Solid equity ratio CHF million 31.12.2018 31.12.2017* Total assets 1 601.3 1 542.9 • Softened rise of non- current assets due to Non-current assets 897.5 853.0 reduced investments in tangible assets Net working capital 99.6 105.5 • Increased net debt due Cash and cash equivalents 93.1
Slide 14: FCF mainly impacted by reduced earnings
Free cash flow (FCF) generation FCF mainly impacted by reduced earnings CHF million –60.7 –4.0 –42.5 257.8 –26.7 197.2 124.0 –164.7 –40.7 EBITDA EBITDA Change Income Other Cash flows Cash flows Free cash 2017* 2018 NWC taxes paid operating from used in flow cash flows operating investing 2018 activi
Slide 15: Agenda
Agenda 1. Business year 2018 Martin Hirzel, CEO 2. Financial results 2018 Dr Martin Zwyssig, CFO 3. Outlook 2019 Martin Hirzel, CEO 15
Slide 16: Sluggish global market – USA in decline
Light vehicle production forecast 2019 Sluggish global market – USA in decline By country By OEM group 12 12 Russia SAIC Brazil 6 6 BMW India Great Wall Suzuki Daimler Slovakia Mexico Changan Geely Volkswagen Hyundai 2019 vs. 2018 (%) Indonesia Tata China Spain Japan Honda General Motors Toyota 0 0
Slide 17: Outlook 2019: Challenges by region
Outlook 2019 Challenges by region North America • Operational problems • Market shift to SUVs China • Market cooling • Utilization of production capacity Europe • Unsettled market environment • Material inflation 17
Slide 18: Challenges North America: 2019 LV production forecast USA
Challenges North America 2019 LV production forecast USA 2019 2019 vs. 2018 BG NA revenue OEMs (million units) (%) share 2018 (%) 2.2 –7.6 26.7 1.9 –7.2 9.3 1.4 –5.0 13.8 1.2 –2.2 18.5 1.2 –5.6 8.3 0.8 –1.4 10.5 0.6 +5.6 0.0 0.4 +12.4 2.6 0.4 +0.8 2.7 Others 0.8 +24.0 7.6 Total 10.8 –2.5 100% Source
Slide 19: Operations at two US plants crucial for losses
Challenges North America Operations at two US plants crucial for losses Operational problems • Mistakes in product/process design of new customer projects due to first time applied technologies in USA • Failed handover from project management into production • Technical problems with fully automated
Slide 20: Unexpected significant market cooling
Challenges China Unexpected significant market cooling million units –6.7% –7.5% –9.5% 31.4 30.6 29.8 China LV production 2014-2021 29.3 IHS forecast delta 28.3 (base: 2014 vs. 2019 forecast): 27.0 –2.1 million units –9.3 percentage points 22.8 IHS forecast 2014, CAGR: +4.7% IHS forecast 2019, C
Slide 21: Utilization of production capacity
Challenges China Utilization of production capacity Autoneum business in China 407 Shenyang CHF million Shenyang Tiexi 333 Tianjin 298 286 Yantai 238 Shanghai Pinghu Taicang Chongqing Wuhan Changsha Fuzhou Guangzhou 2018 2019 2020 Set-up of four new plants based on firm orders received and
Slide 22: Various factors unsettle market
Challenges Europe Various factors unsettle market New emission Brexit test Volatility standards (WLTP) Raw material price Trade Diesel increase barriers decline 22
Slide 23: Focus on turnaround in North America
Action plan 2019 per region Focus on turnaround in North America North America Asia • Turnaround taskforce with • Overall expansion stop; program office and experts freeze of two plants from Group Manufacturing • Calibrate to new market and other Business Groups reality • Cost saving measures: Corpo
Slide 24: Guidance 2019
Guidance 2019 Revenue Group revenue is expected to be on prior year’s level. Market Global automobile production is forecasted to stagnate.* Profitability For the first half-year 2019 Autoneum anticipates a negative net result due to the continuing losses in North America and the costs associated wi
Slide 25: Return to sound profitability level
Mid-term outlook Return to sound profitability level 2019 Year of tidying 2020 Year of transition 2021 Return to sound profitability level 25
Slide 26: Retraction of Financial Targets 2020
Retraction of “Financial Targets 2020” 2021: back on track Targets 2020 Revenue of CHF 2600 million • Emerging markets >20% share in Group’s revenue Orders on hand but due to market downturn revenue • EBITDA margin of 12% will be lower than targeted • Equity ratio >40% Operational problems in US
Slide 27: Autoneum's success factors remain unchanged
Global market leader Autoneum’s success factors remain unchanged Innovation leadership Broad customer portfolio Global presence Healthy balance sheet and committed anchor shareholders 27
Slide 28: Mastering sound and heat
We (eee Mastering sound land neat
Slide 29: Contacts and event calendar
Contacts and event calendar Investors and Financial Analysts Media Contact address Dr Martin Zwyssig Dr Anahid Rickmann Autoneum Holding Ltd. CFO Head Corporate Communications & Schlosstalstrasse 43 / P.O. Box Responsibility CH-8406 Winterthur T +41 52 244 82 82 T +41 52 244 83 88 investor@autoneum.
Slide 30: 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