elringklinger investor presentation januar 2020 · 2020-01-16 · corporate presentation | january...

Corporate PresentationJanuary 2020

Corporate presentation | January 2020 2

In a nutshell

ElringKlinger

Headquartered in

Dettingen/Erms, close to Stuttgart

EUR 1,699 mnin sales

More than

10,000employees

5.9%EBIT margin pre PPA

45 locations

Family as a

strong anchor shareholder

Founded in

1879+10% CAGR since 2005

All figures refer to FY 2018


Megatrends trigger technological transformation process

Markets

Global

megatrends

transform the

automotive

industry

Technological progress

Urbanization

Scarcity of resources

Globalization

Climate change

Safety systems

Autonomous driving

Efficient propulsion

Connectivity

Shared mobility


EU tightens CO2 limits until 2030 even further

Markets

CO2 limits – in g/km

China 202594g CO2/km average

fleet emissions

Japan 203032% reduction of average fleet

emissions (base year: 2016)

EU 202195g CO2/km average

fleet emissions

EU 2025 15 % reduction of average fleet


EU 2030 37.5 % reduction of average fleet


USA 202591g CO2/km average

fleet emissions

South Korea 202097g CO2/km average

fleet emissions

Source: Fraunhofer ISI, ElringKlinger research


New drive trains will be single growth driver from 2025 onward

Markets

Source: PWC Autofacts, ElringKlinger research

2017 20232019 20292018 2020 2021 20252022 2024 2026 2027 2028 2030

CAGR

+2%

Combustion Hybrids Full electric

Managing the growth…

Global light vehicle production per drivetrain – in million units

…for tapping the potential


Managing the growth in classical business areas

Group strategy

Cylinder-head

gaskets

• Strong market positions associated with technological niches

• Benefiting from global production network

• Utilizing profound and detailed product and process know-how

• Concentrating on improved processes to avoid additional costs

• Optimizing inventories

• Repayment of financial debt

• Disciplined investments for managing the growth

• Stable growth path of sales in the medium term according to market development

Specialty

gaskets

Shielding

technologyPlastic housing

modules


Generating future growth in new business areas

Group strategy

•Established supplier for large series of Battery components, i.e. cell contacting systems

•Next step: industrialization of complete battery systems

•PEM fuel cell stack ready for marketing

•Components available as well

•Next step: installation of automated production line

• Strategic minority stake in engineering service provider hofer powertrain

•Currently set-up of small series production

•Unique production technology

• Series orders in delivery phase

•Next step: further ramp-ups and new contracts expected

• Focused capex spending

• Strong growth of e-mobility areas from 2020/21 on with lightweighting further ramping up

Fuel cell

systems

Electric

drive unit

Battery

systemsStructural

lightweighting


ElringKlinger with expertise for components, modules and systems

Group strategy

Battery

Fuel cell

EDU

SystemsModulesComponents Customers‘needs


ElringKlinger’s sales structure of products will change

Group strategy

Sales split (actual and ambition) – in % of total sales

79%

7%

5%

Functional

components

Structural

lightweight

and e-mobility

products

9%

Non-automotive

productsAftermarket

Actual 2018 Ambition 2030

<55%

Structural

lightweight and

e-mobility

products

Functional

components

>25%

~10%

Aftermarket ~10%

Non-automotive

products


Nominated e-mobility volumes create a healthy basis for future sales

Group strategy

Nominated volumes* – in EUR million

2022e2019e

~60%

~25%

~40%~35%

2020e

~50%

~25%~35%

~15%

2021e

~15%

~55%

~30%

~15%

2023e

EDU Fuel cell systems Battery systems and components

• Strong growth particularly in the

fuel cell and battery business

• Acceleration especially after

ramp-up years 2019 and 2020

• Includes systems as well as

components nominations by

different OEMs worldwide

* Scheduled revenues in e-mobility products according to received OEM nomination letters, final revenues dependent on definitely called volumes

1,000


New US OEM

Cross-car beam

SOP 2020

Major new contract wins for new business fields

Group strategy

New US OEM

Cross-car beam

SOP 2020

New US OEM

#

Front-end carrier

Battery system

SOP 2021

Chinese OEMs

Fuel cell systems

More than

20 development

projects


Higher degree of vertical integration results in more content per car

Group strategy

Present Future

Content per car – in EUR

40 - 60 EUR(100-150 EUR incl. cross-car beam)

100 - 10,000 EURContent per car

Financials


Strong sales growth despite market downturn

Q3 2019

412 391498

420 438

Q1Q3 2018 Q3 2019Q4 Q2

+6.3%FX adjusted: 0.8%

Organic

+9.9+2.4%

Q3 2018

405.8

FX

-0-0%

M&A

+16.2+4.0%

Q3 2019

431.9

+6.4%

Sales – in EUR million

Order intake – in EUR million Order backlog – in EUR million

Sales bridge – in EUR million/ in %

Q4Q3 2018 Q1 Q2 Q3 2019

1,063

1,027 1,020

1,0771,069

+4.0%FX adjusted: +1.9%

406 432 441 434 432

Q1Q3 2018 Q3 2019Q4 Q2

+6.4%


Sales in North America continue to grow strongly

Q3 2019

Sales by region – in EUR million

Share of total sales – in %

2018

22%

(25%)

Asia-Pacific

80 (77)

Germany

97 (103)

19%

(19%)

Rest of Europe

120 (115)

28%

(28%)

4%

(5%)

27%

(23%)

North America

115 (92)

South America and Rest of World

20 (19)

Previous year’s Q3 figures in brackets

EUR

432

million


Sequential improvement of earnings over the 2019 quarters

Q3 2019

Net income (attr. to shareholders) – in EUR mn

EBIT (pre PPA) – in EUR million

EBIT margin (pre PPA) – in % of total sales EBIT (pre PPA) bridge – in EUR million

Earnings per share – in EUR

10.7

Q2

5.9%

Q3 2018 Q4

23.9

Q1 Q3 2019

4.8%

11.86.9

20.8

-13.0%

+2

20.8

+4

Q3 2018

-5

Tariffs/

duties

-4

NAFTA/

Ramp-ups

Cost

savings

Others* Q3 2019

23.9

-13.0%

Q3 2019Q3 2018 Q2Q4 Q1

10.8

-1.2 -1.5

-8.6

6.7

-38.0%

Q1

0.17

Q3 2018 Q4 Q2 Q3 2019

0.11

-0.02 -0.02

-0.14

-35.3%

* Net impact includes increase personnel cost, R&D capitalization and othersDifferences due to rounding


Aftermarket segment expanded its sales and improved its margin

Q3 2019

Sales – in EUR million

EBIT margin – in % of segmental sales

Original Equipment (OE)

38 3745 41 45

15.7%

Q3 2018 Q4 Q1 Q3 2019Q2

18.8%

+20.2%

Aftermarket

3027

3229 30

Q2

21.9%

Q3 2019Q1Q3 2018 Q4

16.3%

-0.3%

Engineered Plastics

2.4

Industrial Parks1.0

Q3 2018 Q2Q4 Q1 Q3 2019

Services

3.3

2.42.5

3.7 3.5 3.13.6

2.3

1.2 1.21.1

2.0

1.1

+9.1%

Industrial Parks & Services

(sales only)

335 365 361 361 353

1.8%

Q1

3.1%

Q4Q3 2018 Q2 Q3 2019

+5.4%


Strong focus on cash flow optimization

Q3 2019

Earnings

Improvement of operating free cash flow

Capex

Disciplined

approach

continued

Net working capital

Measures:

• Extending payment terms for

trade payables

• Reducing level of trade receivables

• Improving inventories

Measures with short and mid-term

impact:

• Group-wide cost reduction program

• Optimizing op. performance in

Switzerland and North America

• Paybacks of duties in Q3


• Reduction of share of overdue receivables

• Reduction of payment periods to <60 days

• …

Gradual improvement of net working capital in 2019

Q3 2019

Net working capital – in EUR million

• Focus on supplier-owned inventories

• Increase of inventory turnover

• …

Balancing trade receivables and trade payables

• Extending payment terms to 60 days

• …

Improving payment terms of trade payables

306 332277 266

401415

393 387

-136 -140 -168 -166

9

606

-9

106

-13-10

Dec. 31,

2018

9

Mar. 31 Jun. 30

-17

499

Sep. 30,

2019

Current contract assets

Inventories

Trade receivables

Trade payables

Current contract liabilities

568478

-15.8%

Optimizing inventories in locations worldwide


Disciplined capex approach continued

Q3 2019

Operating free cash flow – in EUR millionCapex (in PPE) – in EUR million

Capex ratio – in % of total sales

Q2Q4Q3 2018 Q1 Q3 2019

30.8

-46.5

2.6

-19.3

98.6>+100%

25.4

Q3 2018 Q4 Q1 Q2

13.3

Q3 2019

53.9

41.9

5.9

28.8

20.7

-52.9%


Cash flow used for net debt reduction

Q3 2019

Net financial debt – in EUR million Maturity structure of financial debt – in EUR mn

-107-130

48

514

46177

180

Cash and cash

equivalents

Credit linesused

Credit lines

unused

Current <1 year

Non-current

(2-5 years)

3

Non-current

(>5 years)

due 2019

472

617556 520

297

196

187 218

-63 -88 -107

796

Jun. 30

Non-current

financial debt

Dec. 31,

2018

-45

70046

IFRS 16

Sep. 30,

2019

50

Mar. 31

45

Current

financial debt

Cash

and cash

equivalents

724 681

-5.9%

Outlook


Production estimates adjusted downwards monthly

Outlook 2019: Markets

Forecasts global auto production 2019 – in %

Source: JP Morgan, IHS, PWC Autofacts, ElringKlinger research

5.9

Q4e

3.7

Q3

0.2

4.9

3.3

-3.2

3.3

0.2

-1.1

-5.5

Jan 19 Oct 19

Mar 19

May 19

Jul 19

Estimation in

Forecasts auto production China 2019 – in %

11.2

8.8

Q3 Q4e

8.3

6.1

2.0

-5.3-3.8

4.2

-0.8

3.4


Global production forecast for FY 2019

Outlook 2019: Markets

Source: IHS, PWC Autofacts, ElringKlinger research

Light vehicle production growth – in % vs. 2018

-4 to -2 %

North America• Strong demand for SUV

• Trade conflict unresolved

• Strike with impact on

production

-3 to -1%

Europe• Lowered production

schedules

• Brexit unclear

-9 to -7 %

China• Suffering from trade

conflict

• Premium segment still

solid

-3 to -1 %

South America• Slight growth in Brazil

• Growth due to base effect

-6 to -4%

Global


• Optimization of operating performance

in North America

• Further improving fixed cost base in

Switzerland

• Scheduled real estate sale

• Tightened cost saving measures, esp.:

– Reduction of personnel cost

– Reduction of discretionary cost

– Hiring freeze in classical business areas

• Material cost and duties

– Antidumping and countervailing duties

avoided in H2

– Expansion of supplier base

– Incremental effect from higher raw

material prices will phase out

• Personnel cost: Collective wage increase

as of April 2018 with no incremental effect

as from Q2

Various factors with positive impact on FY 2019 earnings

Expectations for FY 2019

External factors Internal factors

Expected EBIT margin pre PPA of around 4 to 5% in FY 2019


2019 – A year of transformation

Outlook 2019: Group

Global LV production:

0 –1%

EBIT margin pre PPA:

~ 4 – 5%

2019

Organic sales:

2 to 4 %-points

above global markets

Mid-term

LV production CAGR:

+2%

Organic sales:

above global markets

EBIT margin pre PPA:

Successive improvement

-6% to -4%

in a challenging environment

(prev.: -4 to -2%)


Further indicators for FY 2019 and in the medium term

Outlook 2019: Group

FY 2018

actual

FY 2019

expected Mid-term

ROCE in % 5.5% Below prior year level Increasing based on

earnings and NWC

improvements

R&D costs

(incl. capitalization)

in % of total sales 5.1% ~ 5 - 6% ~ 5 - 6%

Capex

(in PPE)

in % of total sales 9.6% Below 9% Ongoing disciplined

approach

Net working capital

(NWC)

in % of total sales 33.4%* Below prior year level Slight step-by-step

improvement

Operating FCF in EUR million -86.2 Positive Positive

Equity ratio in % of total assets 42.8% 40 - 50% 40 - 50%

Net debt/EBITDA 3.7 Below prior year level <2.0

* Incl. reclassification due to IFRS 15

Appendix


ElringKlinger Group

Original EquipmentSales: EUR 1,408 million

Employees: 9,23283%

of Group sales

AftermarketSales: EUR 159 million

Employees: 203

9%of Group sales

Engineered PlasticsSales: EUR 118 million

Employees: 784

7%of Group sales

ServicesSales: EUR 10 million

Employees: 204

1%of Group sales

Industrial ParksSales: EUR 4 million

Employees: 2

<1%of Group sales

Sales EUR 1,699 million EBIT (pre PPA) EUR 100.2 million

Employees 10,429 EBIT margin (pre PPA) 5.9 %

Shielding Technology

24%

Specialty Gaskets

19%

Cylinder-head Gaskets

11%

E-Mobility

1%

Exhaust Gas Purification

1%Others <1%

Lightweighting/Elastomer

27%

Structural overview

ElringKlinger

All figures refer to FY 2018


What is driving us

Mission statement

Green mobility

Our vision

Being an essential partner by

(1)Providing technologically sophisticated solutions for customers’ needs

(2)Shaping performance and quality to the next level

(3)Assuming social responsibility as a global corporate player

Our mission


Key figures

Group – Last 5 quarters

Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018

Order intake 438 420 498 391 412

Order backlog 1069 1,063 1,077 1,020 1,027

Sales 432 434 441 432 406

EBITDA 50 39 35 38 48.4

EBIT pre PPA 20.8 10.7 6.9 11.8 23.8

EBIT margin pre PPA (in %) 4.8 2.5 1.6 2.7 5.9

EBIT (reported) 20.3 10.2 6.4 10.6 22.9

EBT 15.3 1.5 5.4 7.2 21.8

Net income attributable to shareholders 6.7 -8.6 -1.5 -1.2 10.8

Earnings per share (in EUR) 0.11 -0.14 -0.02 -0.02 0.17

Capex (in PPE) 25.4 20.7 28.8 41.9 53.9

Operating free cash flow 30.8 98.6 -19.3 2.6 -46.5

Net working capital 478* 499* 606* 567 618

Equity ratio (in %) 40.7 40.7 40.9 42.8 42.1

Net financial debt 682 700 796 724 729

Employees (as at quarter-end) 10,492 10,411 10,485 10,429 10,231

All figures in EUR million unless otherwise described, differences due to rounding * Incl. current contract assets, less current contract liabilities


Segmental figures

Group – Last 5 quarters

Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018

Group Sales 432 434 441 432 406

EBIT (reported) 20.3 10.2 6.4 10.6 22.9

EBIT margin (in %) 4.7 2.3 1.5 2.5 5.6

Original Equipment Sales 353 361 361 365 335

EBIT (reported) 6.4 2.0 -5.3 2.2 10.3

EBIT margin (in %) 1.8 0.6 -1.5 0.6 3.1

Aftermarket Sales 45 40.9 44.7 36.7 37.6

EBIT (reported) 8.5 6.7 7.3 4.1 5.9

EBIT margin (in %) 18.8 16.4 16.3 11.2 15.7

Engineered Plastics Sales 30 28.7 32.2 27.0 30.2

EBIT (reported) 4.9 1.7 4.1 3.7 6.6

EBIT margin (in %) 16.3 5.9 12.7 13.7 21.9

Services Sales 2.4 2.0 2.4 2.5 2.3

EBIT (reported) 0.3 -0.4 0.3 0.3 0.0

EBIT margin (in %) 12.5 -20.0 12.5 10.1 0.0

Industrial Parks Sales 1.2 1.1 1.1 1.2 1.0

EBIT (reported) 0.2 0.1 0.0 0.3 0.1

EBIT margin (in %) 16.7 9.1 0.0 27.3 10.0

All figures in EUR million unless otherwise described, differences due to rounding


Consolidated income statement

Group – FY 2018

2018 2017

Sales revenue 1,699 1,664

Cost of sales -1,329 -1,256

Gross profit 370 408

Gross margin in % 21.8 24.5

Selling expenses -147 -142

General and administrative expenses -84 -77

Research and development costs -76 -71

Other operating income 46 31

Other operating expenses -13 -12

Operating result (EBIT) 96 137

Finance income 33 21

Finance costs -43 -48

Share of result of associates -5 0

Net finance costs -15 -27

Earnings before taxes (EBT) 81 110

Income tax expenses -34 -36

Net income 48 74

of which: attributable to non-controlling interests 4 4

of which: attributable to shareholders of ElringKlinger AG 44 70

Basic and diluted earnings per share (EPS) in EUR 0.69 1.10

All figures in EUR million unless otherwise describe, differences due to rounding


Consolidated statement of financial position

Group – FY 2018


AssetsAs of Dec

31, 2018

As of Dec

31, 2017

Intangible assets 190 190

Property, plant, and equipment 998 930

Investment property 17 17

Financial assets 3 1

Shares in associates 23 29

Non-current income tax assets 0 0

Other non-current assets 15 4

Deferred tax assets 12 17

Non-current assets 1,257 1,188

Inventories 401 370

Current contract assets 6 0

Trade receivables 306 303

Current income tax assets 9 7

Other current assets 51 48

Cash and cash equivalents 45 45

Current assets 816 773

Assets held for sale 6 62

Total assets 2,080 2,022

Liabilities and equityAs of Dec

31, 2018

As of Dec

31, 2017

Share capital 63 63

Capital reserves 118 118

Revenue reserves 721 711

Other reserves -50 -40

Equity attr. to shareh. of ElringKlinger AG 853 852

Non-controlling interest in equity 37 37

Equity 890 890

Provisions for pensions 124 126

Non-current provisions 20 12

Non-current financial liabilities 472 479

Deferred tax liabilities 15 14

Other non-current liabilities 12 4

Non-current liabilities 642 635

Current provisions 11 23

Trade payables 136 119

Current financial liabilities 297 222

Current contract liabilities 10 0

Tax payable 12 15

Other current liabilities 81 96

Current liabilities 547 474

Liabilities in connection with assets held for sale 0 24

Total liabilities and equity 2,080 2,022


Consolidated statement of cash flows

Group – FY 2018


2018 2017

Earnings before taxes (EBT) 81 110

Depreciation/amortization (less write-

ups) of non-current assets 100 101

Net interest 15 13

Change in provisions -6 7

Gains/losses on disposal of non-current

assets 0 1

Share of result of associates 5 0

Change in inventories, trade receivables

and other assets not resulting from

financing and investing activities -52 -115

Change in trade payables and other

liabilities not resulting from financing and

investing activities 20 27

Income taxes paid -31 -51

Interest paid -12 -11

Interest received 1 0

Other non-cash expenses and income -30 11

Net cash from operating activities 92 95

2018 2017

Proceeds from disposals of PPE, intangible

assets and investment property 1 1

Proceeds from disposals of financial assets 3 3

Proceeds from the disposal of subsidiaries 57 0

Payments for investments in intangible

assets -15 -11

Payments for investments in PPE and

investment property -164 -156

Payments for investments in financial assets -3 -3

Payments for the acquisition of associates 0 -29

Payments made/received for the acquisition

of subsidiaries and other entities 0 1

Net cash from investing activities -121 -193

Dividends paid to shareholders and to

non-controlling interests -34 -34

Proceeds from addition of long-term loans 77 235

Payments for the repayment of long-term

loans -73 -44

Changes in current loans 60 -47

Net cash from financing activities 30 109

Changes in cash 1 12

Effects of currency exchange rates on cash -1 -3

Cash at beginning of the period 45 39

Cash at end of period (as per financial

statement) 45 45


Key figures

Group – Last 5 years

2018 2017 2016 2015 2014

Order intake 1,735 1,732 1,694 1,615 1,419

Order backlog 1,020 1,001 933 796 688

Sales 1,699 1,664 1,557 1,507 1,326

EBITDA 197 238 231 223 233

(Adjusted) EBIT pre PPA 100 142 140 140 162

(Adjusted) EBIT margin pre PPA in % 5.9 8.5 9.0 9.3 12.2

EBIT (reported) 96 137 136 135 154

EBT 81 110 124 129 153

Net income attributable to shareholders 44 70 79 92 106

Earnings per share in EUR 0.69 1.10 1.24 1.45 1.67

Dividend per share in EUR 0.00 0.50 0.50 0.55 0.55

Capex (in PPE) 164 156 171 176 147

Operating free cash flow -86 -67 -4 -65 -12

ROCE in % 5.5 8.2 8.7 9.5 12.4

Net working capital 567 553 525 523 466

Equity ratio in % 42.8 44.0 47.2 48.5 49.7

Net financial debt 724 655 539 487 348

Employees (as at Dec. 31) 10,429 9,611 8,591 7,912 7,255



Segmental figures

Group – Last 5 years


2018 2017 2016 2015 2014

Group Sales 1,699 1,664.0 1,557.4 1,507.3 1,325.8

EBIT (reported) 96 137.3 135.6 135.2 154.0

EBIT margin in % 5.7 8.3 8.7 9.0 11.6

Original Equipment Sales 1,407.7 1,382.4 1,294.3 1,255.8 1,089.7

EBIT (reported) 50.7 86.3 88.9 91.2 111.2

EBIT margin in % 3.6 6.2 6.9 7.3 10.2

Aftermarket Sales 159.5 156.7 147.3 142.2 130.7

EBIT (reported) 24.9 31.8 30.5 28.2 25.1

EBIT margin in % 15.6 20.3 20.7 19.8 19.2

Engineered Plastics Sales 117.8 111.1 101.7 96.6 92.9

EBIT (reported) 19.5 18.5 14.9 13.2 15.4

EBIT margin in % 16.6 16.7 14.7 13.7 16.6

Services Sales 9.7 9.5 9.7 8.3 8.1

EBIT (reported) 0.7 1.2 1.6 2.0 1.9

EBIT margin in % 7.2 12.6 16.5 24.1 23.5

Industrial Parks Sales 4.3 4.3 4.5 4.3 4.5

EBIT (reported) 0.3 -0.5 -0.3 0.7 0.4

EBIT margin in % 7.0 n.a. n.a. 16.3 8.9


Product portfolio

Group


Specialty Gaskets


Thermal shielding

Acoustic shielding

Lightweighting/

Elastomer Technology

Door module carrier

Cockpit cross-car beam

Plastic modules

(cam cover)

E-Mobility

Battery module

PEM fuel cell

Electric drive unit (EDU)


ElringKlinger provides a transformed portfolio

Group strategy



Lightweighting/Elastomer

E-Mobility

Specialty Gaskets

Underbody

protection

Metal-

elastomer

gaskets

Front-end

carrier

Tank

shielding

Disk

carrier

Metallic

bipolar

plate

Cross-car

beam

Dampening

pan

Door

module

carrier

Battery

module

Stra

teg

ic a

rea

s

Functional

Components

E-Mobility

Light-

weighting

Engine

shielding

Brake

hat

Side

impact

protection

Cell

casing

Electric

drive train

PEM

Fuel cell

stack

Cell

contact

system

Present Future


Fuel cell systems will be essential for certain applications

• Suitable for long distances, recurring applications (e.g. buses) and commercial vehicles

• High customer interest esp. in Asia perceived, numerous development projects in progress

Group strategy

Why fuel cell technology?

• H2 production by solar or wind power enables

CO2-neutral propulsion

• Better storability of hydrogen

• Use of the existing filling station infrastructure

• Fast refueling

Why ElringKlinger?

• Ready for series production

• Electrical output of 2 to 150kW possible based on

sophisticated metallic bipolar plates

• Optional integration of peripheral components and

system functionalities into the module


Battery technology enables mobility based on renewable resources

• Battery-powered vehicles are an eco-friendly solution for short distances

• First order for the production of complete battery systems received in 2018

Group strategy

Why battery technology?

• Reduced emissions

• Lower operating and maintenance costs

• Electric motor: quiet and efficient

Why ElringKlinger?

• Ready for series production of battery systems

• Long service life due to robust design with cell

clamping concept and use of proven ElringKlinger

busbars

• Cell contact system for prismatic lithium-ion cells in

series production since 2012


Electric drive unit completes full electric product range

Why electric drive unit (EDU)?

• Hybrid, fuel cell and e-vehicles are reliant on highly

efficient electric drives

• EDU reduces the complexity and powertrain

becomes more compact and efficient

Why ElringKlinger?

• ElringKlinger and hofer powertrain offer

complementary core competencies

• High-end solution with focus on small-series

production in sports and luxury car segment

• Compact coaxial electrive drive unit

• Customer-specific planetary gearing in conjunction

with a differential

• EDU is needed in every hybrid and battery driven vehicle.

• High system efficiency ensures a higher electrical range or, alternatively, a reduction in the battery capacity required.

Group strategy


ElringKlinger represented in all important auto regions

Group

South Africa

Southeast Asia

China

Japan

Korea

Eastern

Europe/

Turkey

South

America

Germany

Italy

Spain

France

UK

USA/Canada

Mexico

India

Production locations of global top 15 OEMs ( )

ElringKlinger production sites ( )

147

176 171156 164

11.1 11.7 11.09.3 9.6

2016 2017 20182014 2015

Capex (in PPE)/ratio – in EUR million/in %


Sales increase primarily driven by strong demand in NAFTA

FY 2018: Sales

EKMarket Market EK

+15.5%

27.8%

-1.0%

1.1%

Market EK

-0.4%

+1.2%

+1.4%

Market

-1.3%

EK

Growth LV production vs. sales ElringKlinger (FX adjusted) – in %

Sales by region – in EUR million resp. %

NAFTA

Europe

Asia

25%

30%

21%

19%

5%

Germany

NAFTA

Rest of Europe

Asia-Pacific

South America and Rest of World

36%

15%

11%

33%

5%

2008

2018

FY 2018 Q4 2018

FY 2018

FY 2018


International diversified customer base

FY 2018: Sales

Sales by customer group – in % of total sales

Other

30% (38%)

American

OEMs

18% (19%)

German

OEMs

22% (16%)

French

OEMs

5% (4%)Tier 1

16% (14%)

Aftermarket

9% (9%)

9%

6%

3%

10%

7%

5%

EUR

1,699

million


Focused R&D activities

Group

R&D – in EUR million

R&D ratio – in % of total sales

5.0% 4.7% 4.8% 4.6% 5.1%

9 10 7 411

5861

5771

76

2014

7167

2015 2016 2017 2018

75

64

87

thereof

capitalized

• Integration of tools implies a

technological lead position in the

development of ideas

• Main focus: lightweight components,

e-mobility

• 590 R&D employees at sites of parent

company

• 80 new international patents in 2018

• Target R&D ratio (incl. capitalization):

5 – 6% of total sales, capitalization rate

~20%


Senior management

Group

Dr. Stefan Wolf, CEO (since 2005)

Responsible for Group companies, the corporate units Legal, HR, Strategic Communications, Marketing & Communications and OE Sales as well as the Aftermarket division | With ElringKlinger since 1997 | Chairman of Baden-Württemberg‘s Employers‘ Association of the Metal and Electric Industry (Südwestmetall) | Member of the Management Board of the German Association of the Automotive Industry (VDA)

Theo Becker, CTO (since 2006)

Responsible for the business units E-Mobility, New Business Areas, Tooling Technology divisions as well as the corporate units Purchasing, Real Estate & Facility Management and the Thale plant | With ElringKlinger since 1994

Thomas Jessulat, CFO (since 2016)

Responsible for the corporate units Finance, Controlling, IT, Logistics and Business Development as well as the Industrial Parks division | With ElringKlinger since 2005

Reiner Drews, COO (since 2018)

Responsible for the business units Cylinder-head Gaskets, Specialty Gaskets, Lightweight/ Elastomer Technology and Shielding Technology, the corporate units Production Management and Quality & Environmental Management as well as ElringKlinger AG plants | With ElringKlinger since 2006


140 years of experience and solid shareholder structure

Group

History of ElringKlinger in very brief

1879 Paul Lechler establishes a merchandising business in Stuttgart for technical products and gaskets. 1885 Richard Klinger

establishes an engineering office in Vienna.

1924 The first Lechler cylinder-head gaskets are produced.

1964 Elring production and development moves from Stuttgart to Dettingen/Erms.1993 Elring goes to Asia: The

joint venture Changchun Elring Gaskets Co. Ltd. has been founded.

1994 Elring GmbH merges with Automotive Division of Richard Klinger GmbH to ElringKlinger GmbH.1997 ElringKlinger founds new

plants in UK, Brazil, Mexico, and the U.S. 2000 ElringKlinger GmbH merges

with parent company ZWL Grundbesitz- und Beteiligungs-AG and is renamed as ElringKlinger AG.2001 ElringKlinger AG intensifies

R&D work on fuel cell components, especially on its internal sealing. 2002 Registered shares of

ElringKlinger AG are traded at Frankfurt and at Stuttgart Stock Exchange.

2010 ElringKlinger AG receives its first order for series production of cell contact systems used in lithium-ion batteries.

2013 ElringKlinger AG acquires tool maker Hummel Formen GmbH which enables the company to offer structural lightweight components.2017 ElringKlinger AG acquires a

stake in hofer powertrain and thus, extends its portfolio to alternative drive technologies.

Shareholder structure as at November, 2019

23.6%

Lechler

Family

52.0%

Institutional

investors

24.4%

Private

investors

2018 ElringKlinger sells interest in Hug and in new enerday


IR calendar and contact

Date Event

Jan 21, 2020 Conference Frankfurt

Mar 30, 2020 Annual Report 2019

May 7, 2020 Q1 2020

May 19, 2020 Annual General Meeting

From left to right:

Heiderose Mall, Christoph Staib, Kathrin Graf, Sabrina Haufler, Dr. Jens Winter

ElringKlinger AG

Strategic Communications

Max-Eyth-Str. 2 |

72581 Dettingen/Erms | Germany

E: [email protected]

Investor contacts

Dr. Jens WinterHead of Strategic Communications


T: +49 7123 724 88335

Kathrin GrafSenior Manager Strategic Communications


T: +49 7123 724 88279


Disclaimer

Forward-looking statements and predictions

This presentation contains statements about the future. These statements are based on current

expectations, market evaluations and predictions by the Management Board, and on information

that is currently available to them. The statements about the future should not be interpreted as

guarantees of the future developments and results that they refer to. Whilst the Management

Board is convinced that the statements that have been made, and the convictions and

expectations on which they are based, are realistic, they rely on suppositions that may

conceivably prove to be incorrect; future results and developments are dependent on a multitude

of factors, they involve various risks and imponderabilities that can affect whether the ongoing

development deviates from the expectations that have been expressed. These factors include, for

example, changes to the general economic and business situation, variations of exchange rates

and interest rates, poor acceptance of new products and services, and changes to business

strategy.

elringklinger investor presentation januar 2020 · 2020-01-16 · corporate presentation | january...

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