EDAG Engineering Group AG · XETR:ED4

EDAG Engineering — H1 2016 Earnings Presentation

21 slides from EDAG Engineering's earnings presentation, Aug 24, 2016

  1. Slide 1: H1 - Financial Year 2016 Analyst-Call

    H1 - Financial Year 2016 Analyst-Call Wiesbaden, August 24th, 2016

  2. Slide 2: Disclaimer

    Disclaimer  For the purposes of the following disclaimer, references to “this Presentation” shall be deemed to include references to this document, the presenters’ speeches, the question and answer session and any other related verbal or written communications.  The information contained in this P

  3. Slide 3: Content

    Content 1 Market Environment 2 Key Figures – H1 2016 3 Outlook – Financial Year 2016 Slide 3 © Copyright 2016 EDAG Engineering Group AG. All rights reserved. Analyst Presentation – H1 2016

  4. Slide 4: Market Environment

    Market Environment  World economy with moderate growth but increased uncertainty after Brexit  Worldwide car sales in H1 2016 better than expected, growth especially in Western Europe (+8.5%) and China (+12%). Brazil and Russia remain weak  OEM R&D budgets are growing/remain on high level, which

  5. Slide 5: Content: Key Figures – H1 2016

    Content 1 Market Environment 2 Key Figures – H1 2016 3 Outlook – Financial Year 2016 Slide 5 © Copyright 2016 EDAG Engineering Group AG. All rights reserved. Analyst Presentation – H1 2016

  6. Slide 6: Business Development in H1 2016

    Business Development in H1 2016  Core Revenues increased by 2% to 362 m€  Growth throughout all three segments with Production Solutions at 3.2%  Core adjusted EBIT down from 35.6 m€ in H1 2015 to 22.7 m€ in H1 2016  Margin down from 10.0% to 6.3%  Equity ratio up from 27.4% to 31.1% (yoy)  He

  7. Slide 7: Revenues

    Revenues (1) (2) Core Revenue [m€] Revenues by Segment [m€] +2% change to H1 2015 Vehicle Engineering +1.7% 355.2 362.4 Electrics / Electronics +1.2% Production Solutions +3.2% 60.1 77.6 229.5 H1 2015 H1 2016 1. Revenue defined as sales revenue plus change in inventories; Core defined as total exclu

  8. Slide 8: Revenue by Region

    Revenue by Region H1 2015 H1 2016 4,8% 4,7% 6,4% 5,6% 11,8% 13,2% 75,6% 78% Germany Rest of Europe North & South America Asia 1. Revenue defined as sales revenue plus change in inventories Slide 8 © Copyright 2016 EDAG Engineering Group AG. All rights reserved. Analyst Presentation – H1 2016

  9. Slide 9: Adjusted EBIT

    Adjusted EBIT (1) Core adjusted EBIT [m€] Adjusted EBIT by Segment margin -36% H1 2015 H1 2016 Vehicle Engineering 10.4% 6.6% 35.6 Electrics / Electronics 7.0% 2.1% Production Solutions 11.6% 10.0% 22.7 [m€] 6.0 1.6 15.1 10.0% 6.3% H1 2015 H1 2016 1. Core defined as total excluding segment Others; A

  10. Slide 10: Expenses

    Expenses Total cost structure breakdown (as % of core revenue) 100% 10.0% 6.3% 90% 13.0% 11.2% 80% 2.8% 2.4% 4.4% 3.4% 70% 10.1% 8.5% 60% 50% 40% 62.9% 65.1% 30% 20% 10% 0% H1 2015 H1 2016 Core adjusted EBIT Net other expenses (2) Depreciation (1) Material expenses (raw materials) Expenses for exter

  11. Slide 11: Development of EAT and Equity

    Development of EAT and Equity  Decrease of EAT to 9.5 m€ EAT [m€]  Lower income from companies 20.3 using the equity method  Increased tax ratio 9.5  Equity ratio went up from 27.4% to 31.1% H1 2015 H1 2016 Equity [m€] 27.4% 31.1% 140.3 142.4 30.06.2015 01.01.2015 30.06.2016 01.01.2016 x.x% Equi

  12. Slide 12: Development of Headcount and CapEx

    Development of Headcount and CapEx Headcount (1)  Headcount increased by 506 employees  Growth of 6.5% compared to H1 2015 8,267 7,761  In Q2 staff grew by only 18 people compared to Q1  CapEx increased mainly because of investment into new tech-centre facilities in Wolfsburg 30.06.2015 H1 2015

  13. Slide 13: Cash Flow

    Cash Flow Operating CF [m€] Free CF [m€] H1 2015 H1 2016 H1 2015 H1 2016 -0,1 -7,7 -9,0 -25,5 Slide 13 © Copyright 2016 EDAG Engineering Group AG. All rights reserved. Analyst Presentation – H1 2016

  14. Slide 14: Net financial debt

    Net financial debt Net financial debt [m€] 1.5x 1.8x 95.4% 100.5% 133.9 143.1 192.6 167.2 -24.1 -56.0 0.0 -2.6 H1 2015 H1 2016 H1 2015 H1 2016x Net financial debt / Adj. EBITDA (LTM) Financial debt Cash and cash equivalents Cash pool receivables x Net Gearing (Net financial debt / equity) Slide 14 ©

  15. Slide 15: Trade Working Capital

    Trade Working Capital Trade Working Capital [m€] 153.0 177.2 203.2 213.5 7.1 1.8 -38.1 -57.4 H1 2015 H1 2016 H1 2015 H1 2016 Trade receiveables Inventories Trade payables Slide 15 © Copyright 2016 EDAG Engineering Group AG. All rights reserved. Analyst Presentation – H1 2016

  16. Slide 16: Overview on savings program

    Overview on savings program program I program II Target 2016 up to 5 ~4 [m€] • one-offs • Supplemen- tary selective measures ~11 ~6,7 • Continued effects from H1 • Further reduction of external services • Review of invest • Improvement of productivity ~3,3 • Savings in staff expenses • Procurement s

  17. Slide 17: Content: Outlook – Financial Year 2016

    Content 1 Market Environment 2 Key Figures – H1 2016 3 Outlook – Financial Year 2016 Slide 17 © Copyright 2016 EDAG Engineering Group AG. All rights reserved. Analyst Presentation – H1 2016

  18. Slide 18: R&D budgets are increasing or remain on high level…

    R&D budgets are increasing or remain on high level… R&D Budgets are increasing or remain on high level (1)  Daimler: Increase number of car-models from 30 in 2016 to 40 in 2020 (2)  BMW: Research & Development ratio shall remain within 5-5.5% of until 2020 (3)  Audi: Research & Development ratio

  19. Slide 19: …but budgets might be shifted to other/new fields

    …but budgets might be shifted to other/new fields today future chance Design  High number of models  ESPs to take more responsibility up to  ESPs develop different complete vehicle development, based on +50% ESP segments (eg. body in new cooperation models with OEM.1 extent 1 white, exterior, int

  20. Slide 20: Outlook

    Outlook 2016  Continued challenging market conditions  Overall, short-term market perspectives overclouded by extraordinary effects  We expect the situation at key customers to improve beginning from Q4 2016  For the full year 2016, we expect a moderate increase in revenues in the lower single-d

  21. Slide 21: Questions / Answers

    Questions / Answers Slide 21 © Copyright 2016 EDAG Engineering Group AG. All rights reserved. Analyst Presentation – H1 2016

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