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Schaeffler Capital Market Presentation
"Mobility for tomorrow"
December 2014
Page 2 · Schaeffler Group · Capital Market Presentation · December 2014
Disclaimer
This presentation contains forward-looking statements. The words "anticipate", "assume", "believe", "estimate", "expect", "intend","may", "plan", "project", "should" and similar expressions are used to identify forward-looking statements. Forward-lookingstatements are statements that are not historical facts; they include statements about Schaeffler Group's beliefs and expectationsand the assumptions underlying them. These statements are based on plans, estimates and projections as they are currentlyavailable to the management of Schaeffler AG. Forward-looking statements therefore speak only as of the date they are made, andSchaeffler Group undertakes no obligation to update any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. These statements are based on Schaeffler AGmanagement's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differmaterially from those described in the forward-looking statements. Actual results may differ from those set forth in the forward-looking statements as a result of various factors (including, but not limited to, future global economic conditions, changed marketconditions affecting the automotive industry, intense competition in the markets in which we operate and costs of compliance withapplicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting our markets, and otherfactors beyond our control).
This presentation is intended to provide a general overview of Schaeffler Group’s business and does not purport to deal with allaspects and details regarding Schaeffler Group. Accordingly, neither Schaeffler Group nor any of its directors, officers, employees oradvisers nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance shouldbe placed on, the accuracy or completeness of the information contained in the presentation or of the views given or implied. NeitherSchaeffler Group nor any of its directors, officers, employees or advisors nor any other person shall have any liability whatsoever forany errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this information or its contents orotherwise arising in connection therewith.
The material contained in this presentation reflects current legislation and the business and financial affairs of Schaeffler Groupwhich are subject to change and audit.
Page 3 · Schaeffler Group · Capital Market Presentation · December 2014
in EUR mn
Number of patent registrations in Germany1)
1 Schaeffler at a glanceSchaeffler – A leading technology provider
1) Incl. Germany, Western, Southern and Eastern Europe, Middle East, Africa, Russia and India
Schaeffler Group at a glance
Sales by segment Sales by region
73% Automotive
27%Industrial
58% Europe¹)11%Greater China
Asia/Pacific10%
21%Americas
Number of patent registrations in Germany1)
2010
CAGR +11%
9.5
2011
7.3
2009
11.110.7
2013
11.2
2012
Strong sales growth from 2009 - 2013in EUR bn
4 Leading manufacturer of high-precision componentsand systems for automotive and industrialapplications
4 Global footprint with approx. 79,000 employees inmore than 50 countries
4 Above industry average profitability andrevenue growth
4 Strategic participation in Continental AG
Page 4 · Schaeffler Group · Capital Market Presentation · December 2014
in EUR bn
EBIT and EBITDA 2004 - 20131)
1 Schaeffler at a glanceA strong history of above average growth
1) 2004-2005 according to German GAAP, 2006-2013 according to IFRS
11.2
2012
11.1
2011
10.7
2010
9.5
2009
7.3
2008
8.9
2007
9.0
2006
8.3
2005
7.9
2004
7.3
CAGR +5%
2013
0.81.0 1.1 1.1 1.0
0.7
1.51.7
1.4 1.4
2.1
1.7
2007 2010
2.2
20132)2012
2.0
2011
2.1
2009
1.1
1.7
20082006
1.7
2005
1.5
2004
1.4
Development of sales 2004 - 20131)
in EUR bn
8.4% -1.2% -17.6% 29.4% 12.6%7.2% 8.7% 4.7%
Sales growth
4.0% 0.9%
EBITDA margin
19.4% 19.4% 15.0% 22.1% 21.0%19.0% 19.5% 19.9%EBIT margin
12.6% 11.7% 6.1% 15.9% 15.8%10.8% 12.2% 12.9%
18.8%
12.7%
EBIT EBITDA
18.4%
12.6%
2) Adjusted EBIT and EBITDA
Page 5 · Schaeffler Group · Capital Market Presentation · December 2014
Transmission Systems
Chassis Systems
Engine Systems
Aftermarket
Production Machinery
Energy and Raw Material
Aerospace
Mobility
Aftermarket
1 Schaeffler at a glanceTwo divisions with top three positions in core market sectors
Automotive Industrial
Page 6 · Schaeffler Group · Capital Market Presentation · December 2014
1 Schaeffler at a glanceAutomotive – Broad mix of components and systems
Page 7 · Schaeffler Group · Capital Market Presentation · December 2014
Yoketype andstud typetrackrollers Axial/radial roller
bearingswith an outsidediameter of up to4250 mm(up to 12000 mmavailable onspecial request)
Smallest ball bearingwith a 1 mm inside diameter
Sphericalplainbearings
Cylindricalrollerbearingswithdisc cage
Radialinsertballbearings
Needlerollerbearings
Linearguidancesystems
MainspindlebearingsSpherical
rollerbearings
Taperedrollerbearings
Cage-guidedcylindricalcylindricalrollerbearings
Directdrives
INA/FAG catalog with 40,000 itemsRotary tablebearings withmeasuringsystem
Enginebearings
Ballrollerbearings
Housings
The Industrial division delivers solutions and services with around 225,000 products for more than 40,000 customersin over 60 sectors worldwide
1 Schaeffler at a glanceIndustrial – Competence in bearings
Page 8 · Schaeffler Group · Capital Market Presentation · December 2014
1 Schaeffler at a glanceOur key success factors – Quality, Technology and Innovation
826
1,832
20122010
1,854
2,100
2011 2013
1,146
2008 2009
1,641
#5 #5 #4 #4 #4 #2
1) Source: Deutsches Patent- und Markenamt (DPMA)
Rank in Germany
Number of patent registrations in Germany1) Core technologies
… basic materials (steel) … inhouse tool design
… precisionmanufacturing… surface treatment
Page 9 · Schaeffler Group · Capital Market Presentation · December 2014
Urban mobility2Environmentally friendly drives 1
Interurban mobility 3 Energy chain4
"Mobility for
tomorrow"
2 Mobility for tomorrowStrategy refocused – "Mobility for tomorrow"
Page 10 · Schaeffler Group · Capital Market Presentation · December 2014
2 Mobility for tomorrowEnvironmentally friendly drives
Reduced losses
Increased variability
Electrification
Efficiency forenvironmentalfriendly drives
1
Page 11 · Schaeffler Group · Capital Market Presentation · December 2014
2 Mobility for tomorrowCombustion engine remains dominant but will be further electrified
● Trends
Powertrain concepts CO2 legislation worldwide
98%
80%
56%
2%
19%
35%
1%9%
Hybrids Electric
2013 2020 2030
Light vehicle production
Source: University of Duisburg-Essen, 2012
Combustion engine 80
100
120
140
160
180
200
220
240
260
2000 2005 2010 2015 2020 2025
China: 117 gin 2020
EU: 95 gin 2020
Japan: 105 gin 2020
USA: 109 gin 2025
Source: icct, 2013
Light vehiclesin g CO2
Proposed targetEnacted target
USA: incl. light duty vehicles
1
Page 12 · Schaeffler Group · Capital Market Presentation · December 2014
2 Mobility for tomorrowPossible approaches to reduce the fleet-CO2-emissions
Three approaches
2. Downsizing /Downspeeding
3. Hybridization/Electrification
Example:New Mercedes-Benz S-classwith 4 cylinders
Example:Toyota Prius – most successfulhybrid on the market
1. Optimizationconventionalpowertrain
+ +Threefold approach
1
Page 13 · Schaeffler Group · Capital Market Presentation · December 2014
Schaeffler EfficientFuture Mobility India
Schaeffler EfficientFuture Mobility NorthAmerica
SchaefflerHybrid Schaeffler CO2ncept-10%
SchaefflerACTIVeDRIVE
Fiesta eWheelDrive
ChinaConcept Car
1. GasolineTechnology Car
2. Diesel Eco Drive3. 48V Democar
Schaeffler EfficientFuture Mobility India
Schaeffler EfficientFuture Mobility NorthAmerica
SchaefflerHybrid Schaeffler CO2ncept-10%
SchaefflerACTIVeDRIVE
Fiesta eWheelDrive
ChinaConcept Car
Diesel EcoDrive
System 48V
Gasoline Technology Car
2 Mobility for tomorrowMarket specific concepts to fulfill regional requirements1
Page 14 · Schaeffler Group · Capital Market Presentation · December 2014
2 Mobility for tomorrowMeeting stringent US emission targets of 2020 already today
Fuel reduction in %
Technology City HighwayBelt Drive FrictionOptimization 1.0 1.0
Valve Train FrictionOptimization 0.5 0.5
Balance ShaftBearings 0.6 1.0
ThermalManagementModule
1.0 1.0
Adaptive GrillShutters 0.2 0.8
Engine Start-Stop 6.0 2.0AWD Disconnect 2.0 6.0
Wheel BearingsOptimization 0.5 1.0
TC with CentrifugalPendulum-typeAbsorber
3.0 1.0
Total: ~15 ~14
§ Developed in North America for market-specificdemands and customer requirements
§ Schaeffler shows solutions for optimizing NorthAmerican combustion engines and drive trains
§ Additional fuel savings potential up to 15%
Efficient Future Mobility –Schaeffler North America Demonstration Vehicle
1
Page 15 · Schaeffler Group · Capital Market Presentation · December 2014
§ Ford Focus, 1.0l 3-cylinder, turbo charger, 92 kW, 114 g/kmCO2, Start/Stop, EU5
§ Mild Hybridization 48V BSA, thermal management module,coated tappets, decoupling belt tensioner, optimized turbocharger, engine control unit, injection system, heatedcatalyst, low-pressure EGR, hydr. clutch actuator, DMF withcentrifugal pendulum absorber
§ Fuel savings potential ~15% (aim ~17%: 95 g/km) andemission reduction EU6c
Gasoline Technology Car Fuel reduction in % (simulation according to NEDC)
Measure ReductionStart/stop 20 km/h 1.1Recuperation 2.6
Torque repartition 0.8
Dedicated braking pedal 0.5Free gear selection 5.4
External exhaust gas recirculation (EGR) 2.0
Electric heatable catalyst 2.0Thermal management module (real simulation) 1.0
Total ~15Total incl. synergies between measures ~17
Emission reduction
In addition to fuel savings, emission reduction(NMHC, NOx, CO, PM) was achieved to comply withthe guideline EU6c.
2 Mobility for tomorrowLatest concept car shows further fuel saving potential1
Page 16 · Schaeffler Group · Capital Market Presentation · December 2014
2 Mobility for tomorrowUrban Mobility
2025:8.0 bn people60% in metropolitan regions
Today:7.1 bn people50% in metropolitan regions
2
Page 17 · Schaeffler Group · Capital Market Presentation · December 2014
LEVs volume per application worldwide Forecast sales E-Bikes
2 Mobility for tomorrowStrong market development LEVs and e-bikes
0
10
20
30
40
50
2012 2013 2014 2015 2016 2017 2018
Restl. Welt
Westeuropa
China
0,E+00
1,E+07
2,E+07
3,E+07
4,E+07
5,E+07
6,E+07
7,E+07
8,E+07
9,E+07Golf cars
Micro EV quadricycle
LEvs for disabled
E-Scooter /e-MC
E-bike /Pedelec
Source: Light Electric Vehicles, Mobility Vehicles, E-Motorcycles and Micro-Evs(Quadricycles) 2013-2023, IDTechEx 2013
Source: Pike Research 2012
Units in mn. Units in mn.
§ By 2018, the E-bike market is growing globally at anannual rate of 7.4%.
§ 2018, the annual sales will be at 47 mn., with almost 95%of the market in China.
§ Majority of E-bikes in China without pedals, in WesternEurope almost exclusively Pedelecs.
Rest of world
Western Europe90
80
70
60
50
40
30
20
10
0
2
Page 18 · Schaeffler Group · Capital Market Presentation · December 2014
Schaeffler employees in Chinausing e-bikes and e-scooters
§ NEVs are defined as fully electric or hybridvehicles on four wheels
§ Subsidies for Battery Electric Vehicles (150 kmrange) and Hybrid Electric Vehicles (50 km range)
§ Minimum speed requirement: 100 km/h
§ Openness towards newtechnologies
§ Increasing income§ Pursuit of individual mobility§ Around 20-30 million
e-bikes and e-scooters aresold each year in China
E-bikes and e-scooters
New Energy Vehicles (NEVs)
Schaeffler innovationElectric motor, power electronics, brake, and coolingsystem are installed inside the wheel rim
Driving systems especially forurban use§ Space-saving vehicle concept§ Increased maneuverability
and safety
Concept vehicle Ford Fiesta eWheelDrive
Strong focus on electric mobility in China E-wheel drive
2 Mobility for tomorrowOffering solutions for urban mobility requirements2
Page 19 · Schaeffler Group · Capital Market Presentation · December 2014
2 Mobility for tomorrowInterurban Mobility
0%
20%
40%
60%
80%
100%
CO2 emissions of road freight transport
1991 2004 2025
per tone-kilometer(1991 = 100 %)
Source: UBA, IFEU
3
Page 20 · Schaeffler Group · Capital Market Presentation · December 2014
2 Mobility for tomorrowKey technology partner for high speed trains
Schaeffler test rig
Schaeffler test rig for railway axlebox bearings, Schweinfurt, DE and Anting, CN
Mechatronic systems for freight traffic
§ FAG axlebox bearing forhigh-speed trains
§ Key influencing factorscan be tested in advance.
§ Different route profilescan be simulated underfield conditions.
Rollingbearing unit
Generator
Electronicsmodule
§ Mechatronic functions in axlebox bearings
§ The integrated wheelset generator allows energy forfreight transport to be supplied and includes a monitoringsystem for freight trains
3
Page 21 · Schaeffler Group · Capital Market Presentation · December 2014
2 Mobility for tomorrowHigh precision components for the aerospace industry
Schaeffler aerospace solutions Technology development
Main shaft andgearbox bearings,
e.g. for Airbus A380
Materials
Surface
Bearing AnalysisMicro Structure
§ Materials and heat treatment technologies
§ Surface Engineering
§ Non-destructive test methods for new materials
§ Development of coatings
§ Design Integration
§ Advanced Cooling Concepts
§ Dynamic analysis & Simulation
§ Bearing rig testing
§ Condition Monitoring (“Intelligent Bearing”)
3
Page 22 · Schaeffler Group · Capital Market Presentation · December 2014
2 Mobility for tomorrowEnergy chain
Solar- und WindenergieGlobal investments in new power plants andinfrastructure 2011-2020
Power grids 44%(Infrastructure)
Coal12%Gas 6%
Oil 1%
Nuclear 6%
Wind 12%
Water 8%
Solar PV 7%Other Regenerative 4%
Source: International Energy Agency (2011): World Energy Outlook
4
Page 23 · Schaeffler Group · Capital Market Presentation · December 2014
For ocean currentpower plants,Schaeffler developsbearing supports thatcan be directlyinstalled in water. Thewater is the mediumthat provides thelubrication.
Schaeffler uses aspecial steel that isresistant to corrosionfor the rolling bearingrings.
Large-size bearing test rig in Schweinfurt, Germany
Schaeffler's spherical roller bearing "X-life" is the classicbearing variant for the rotor main shaft in wind turbines.
Wave power Wind power
2 Mobility for tomorrowInnovative solutions for regenerative energies4
Page 24 · Schaeffler Group · Capital Market Presentation · December 2014
9M 14 9M 13 9M 14vs. 9M 13 Q3 14 Q3 13 Q3 14
vs. Q3 13
Sales 9,024 8,425 +7,1% 3,034 2,811 +7.9%
EBITDA 1,688 1,514 +11.5% 589 472 +24.8%
EBITDA margin 18.7 18.0 +0.7%pts. 19.4 16.8 +2.6%pts.
EBIT 1,215 1,038 +17.1% 428 314 +36.3%
EBIT margin 13.5 12.3 +1.2%pts. 14.1 11.2 +2.9%pts
Net income 936 1,020 -84 mn 362 459 -97 mn
Working capital1) 2,906 2,343 +563 mn 2,906 2,343 +563 mn
Capex 500 343 +157 mn 202 114 +88 mn
Free cash flow2) 103 589 -486 mn 282 203 +79 mn
Net debt1) 6,306 5,890 +416 mn 6,306 5,890 +416 mn
Leverage ratio1) 3) 2.6 2.6 - 2.6 2.6 -
3 Results 9M 2014Overview results 9M 2014
1) Prior year figure as per December 31, 2013 2) Excluding one-off effects of EUR 529 mn, FCF is EUR 632 mn 3) Net financial debt excl. shareholder loans to adjusted EBITDA ratio
in EUR mn
Page 25 · Schaeffler Group · Capital Market Presentation · December 2014
3 Results 9M 2014Sales above EUR 9 bn in 9M 2014
9.9%
11.9%
20.4%57.8%
Americas1,839 / +3.4%
Greater China1,076 / +24.5%
Europe5,213 / +5.1%
Asia/Pacific896 / +8.9%
1) Market view (= location of customers)
Q1 Q2
+7.1%1)
vs. 9M 20133,014
Q1
2,976
Q4
2,780
Q3
2,811
Q2
2,756 2,858
11,205
2013 2014
Gross profit margin in %
28.7 28.8 27.2 28.7
28.3
28.1
Salesin EUR mn
9M 2014 sales by region1)
in EUR mn / Y-o-y growth
9M 14 9M 13 D D excl.FX effects
Automotive 6,667 6,129 +8.8% 10.5%
Industrial 2,357 2,296 +2.7% 4.9%
Total 9,024 8,425 +7.1% 9.0%
Sales by divisionin EUR mn
9,024
29.1
28.9
Q3
29.3
3,034
8,425
1) Includes negative FX effects of 1.9%
Page 26 · Schaeffler Group · Capital Market Presentation · December 2014
Europe
+8%
Asia/Pacific
+11%
+2%
Greater China+32%
+10%
Production of light vehicles9M 2014 vs 9M 2013(IHS Automotive)
Operational sales growthSchaeffler Automotive (OEM)9M 2014 vs 9M 2013(by location of customer)
+14%
+1%
Americas2)
+4%
3 Results 9M 2014Sales Automotive – Continued growth above market
World production: +4%Schaeffler Automotive OEM: +12%
(operational sales growth)
1) Schaeffler Automotive sales growth by region is not necessarily an indication of actual end-customer demand by region (e.g. European sales include components and systems sold to customers inEurope who ultimately export the final product to customer locations in North and South America as well as in Asia/Pacific).
2) Operational sales growth Schaeffler Automotive (OEM) in North America +22% (light vehicles production +6%) and in South America -17% (light vehicle production -17%)
Sales development Automotive1) Regional distribution
Key aspects
§ Schaeffler Automotive again strongly outgrew globalautomotive production in 9M 2014
§ All business divisions and all regions contributed tooverall growth
§ Strong growth in China especially in BD Trans-mission Systems (e.g. double clutch systems)
§ Nearly full utilization of current production capacityin the first nine months 2014
57%21%
10%
12%
Americas
Greater China
Europe
Asia/Pacific
Page 27 · Schaeffler Group · Capital Market Presentation · December 2014
3 Results 9M 2014Sales Industrial – Positive trend continues
Sales trend
Key aspects§ Sales Industrial with improving trend; FX-adjusted
growth rate +4.9% (as reported 2.7%)
§ Order intake shows significantly positive trend,orders on hand exceed prior-year level
§ Strong sales increase in Greater China across allsectors except Aerospace and Heavy Industries
§ Revenues in Asia / Pacific and Europe above prioryear level, revenues in the Americas regionimpacted by currency translation
59%19%
12%
10%
Americas
Greater China
Europe
Asia/Pacific
Regional distribution
in EUR mn 9M 2014 9M 2013 D
Industrial Applications 1,463 1,445 +1.2%
Industrial Aftermarket 894 851 +5.1%
Total 2,357 2,296 +2.7%
Sales 9M 2014 vs. 9M 2013
908870
839
789769 770 757 745
2012 2013 2014
764789 804
Page 28 · Schaeffler Group · Capital Market Presentation · December 2014
1) Positive one-off effect from the release of provision for antitrust fine in Q1 2014 (EUR 9 mn) andnegative one-off effect from compensation payments in Q2 (EUR 11 mn)
1,0381,2171,215 2111
599
One-offeffects1)
EBIT9M 14
-25
Sales R&DCOGS
-37-372
Sales Admin OthersEBIT9M 13
Adj.EBIT9M 14
12.3 13.5
9M 14EBIT
9M 13EBIT D
9M 14margin
Automotive 932 800 +16.5% 14.0%
Industrial 283 238 +18.9% 12.0%
Total 1,215 1,038 +17.1% 13.5%
13.5
314
-56
405 373
355 36948
324
+17.1%vs. 9M 2013
38411
4149362
380
3 Results 9M 2014EBIT margin at 13.5% – Earnings quality above target range
EBITin EUR mn
∆ EBITin EUR mn
Adjusted EBIT margin in %
12.9 12.9 12.9 11.7
12.9
12.713.6
13.5
EBIT per divisionin EUR mn
Margin in %1,215
Q1 Q2Q1Q4Q3Q2
2013 2014
Q3
14.1
428
1,038
982
Page 29 · Schaeffler Group · Capital Market Presentation · December 2014
3 Results 9M 2014Net income EUR 936 mn
Net income 9M 20141)
in EUR mn
Net income1)
in EUR mn
362382
-155
459
328
233192
1) Net income attributable to the shareholders of the parent company
865 936
Q1 Q2Q1Q4Q3Q2
2013 2014
Q3
Sales Costs EBIT Taxes/minorities
Netincome
Financialresult
9,024
-7,809
1,215 +548
-631
-196
936
Investmentresult
1 2
Page 30 · Schaeffler Group · Capital Market Presentation · December 2014
Free cash flowin EUR mn
3 Results 9M 2014Free cash flow 9M 2014 of EUR 103 mn impacted by Q2 one-off effects
Free cash flow 9M 2014in EUR mn
- -13 282
Q3 2014
-202-41 --68 17
282
-160
-19
40
203
334
52
424
500
168 227
103155
371
1,688
Freecashflow
Other
82
Taxes
1581)
Interestpayments
CapexΔ Networkingcapital
EBITDA
386103
One-offeffects
Refinancing
Anti-trustfine
Divi-dendfromConti-nental
589 -
529
1) Q2 2014: Prepayment fee EUR 114 mn + accrued interest EUR 29 mn + transaction cost EUR 15 mn
Q1 Q2Q1Q4Q3Q2
2013 2014
Q3
Page 31 · Schaeffler Group · Capital Market Presentation · December 2014
3 Results 9M 2014Leverage ratio at 2.6x
Net financial debtin EUR mn 12/31/13 09/30/14
Gross debt 6,190 6,981
- Cash 300 675
= Net financial debt 5,890 6,306
- Shareholder loans 443 537
= Net financial debt(w/o shareholder loans) 5,447 5,769
÷ LTM EBITDA adjusted 2,062 2,190
= Leverage ratio 2.6 2.6
645 537607443
6,834
301
6,3066,3626,1725,8905,729
284
6,475
343
Shareholder Loans
Leverage ratio (Net financial debt w/o shareholder loans / LTM Adjusted EBITDA)
Development leverage ratioin EUR mn
Gross debt
7,292 7,037 6,089 6,190 6,8336,395
Cash position
458 562 360 300 471223
Q1 Q2Q1Q4Q3Q2
2013 2014
Q3
6,981
675500
1,2121,000
600
1,766
201920182017
1,269
201620152014 20222020 2021
Maturity profile (after October 2014 refinancing)in EUR mn1)
1) Assuming EUR/USD=1.28 as of October 16, 2014
Existing bonds New loans
3.33.1
2.7 2.6 2.6 2.7 2.6
Page 32 · Schaeffler Group · Capital Market Presentation · December 2014
4 Financing and corporate structureFinancing structure continuously improved
Continuous capitalstructure
optimization
Financingstructure
OpCo/HoldCo
Corporatestructure
Schaeffler Group
June / July2012 Bank consortium further enhanced, issuance of €326 mn retail bond
September2012
Reduction of liabilities at Schaeffler Holding by €1.6 bn, shareholderstructure simplified
December2012
Refinancing of €5.6 bn OpCo facilities enhancing covenant, repayment andstructural flexibility
February2013
Repricing transaction of €1.6 bn equivalent OpCo facilities withinstitutional lenders
April2013
Restructuring of OpCo facilities and additional issuance of €1.25 bnhigh-yield bonds
July2013
Comprehensive refinancing of HoldCo indebtedness of €3.75 bn including issuanceof PIK Toggle Notes
September2013
Reduction of liabilities at Schaeffler Group and Schaeffler Holding byapprox. €1.3 bn
May2014
Refinancing of €3.5 bn OpCo debt by placing €2.0 bn of new secured and unsecuredbonds and €1.5 bn of new institutional term loans
January2012
Comprehensive refinancing of OpCo indebtedness of €8.0 bn includingfirst-time issuance of high-yield bonds
October2014
€1.8 bn equivalent OpCo loan refinancing and OpCo/HoldCo bond consent processcompleted to align terms and conditions; €1.0 bn OpCo RCF committed
Refinancing of €1.9 bn of HoldCo debt with €700 mn HoldCo bank loansand €1.2 bn HoldCo bonds
October2014
Key development steps
Page 33 · Schaeffler Group · Capital Market Presentation · December 2014
4 Financing and corporate structureCorporate structure before and after latest refinancing transaction
SchaefflerHolding
Finance B.V.
SchaefflerBeteiligungs-
holding2)
100%
Schaeffler AG1)
SchaefflerVerwaltungs
GmbH
100%
100%
100%
Continental AGINA
BeteiligungsGmbH (“IBH”)3)
OpCo
Loans
100%
SchaefflerFinance B.V.
OpCo
Bonds
54.0%
Freefloat
11.8%
100%
TopCo
HoldCo
OpCo
HoldCo
Bonds
HoldCo
Loans
Guarantee
34.2%
SchaefflerTechnologiesGmbH & Co. KG
4) Schaeffler Beteiligungsholding guarantee and SVZ (formerly Schaeffler AG) guarantee willremain in place until fall-away conditions have been met (SVZ guarantee for benefit ofOpCo debt to fall-away upon consent by or refinancing of 2017 OpCo Notes)
SchaefflerHolding
Finance B.V.
SchaefflerBeteiligungs-
holding4)
100%
SVZ (formerlySchaeffler AG)4)
SchaefflerVerwaltungs
GmbH
100%
Continental AGSchaeffler AG
(formerly IBH)
OpCo
Loans
100%
SchaefflerFinance B.V.
OpCo
Bonds
54.0%
Freefloat
11.8%
100%
TopCo
HoldCo
OpCo
HoldCo
Bonds
HoldCo
Loans
Guarantee
34.2%
SchaefflerTechnologiesGmbH & Co. KG
INA-Holding SchaefflerGmbH & Co. KG
Schaeffler HoldingGmbH & Co. KG
100%
100%
INA-Holding SchaefflerGmbH & Co. KG
Schaeffler HoldingGmbH & Co. KG
Previous corporate structure Current corporate structure
1) Schaeffler AG was converted into a GmbH and renamed Schaeffler Verwaltungs Zwei GmbH2) Schaeffler Beteiligungsholding has also issued a guarantee in favor of all OpCo loans/bonds3) IBH GmbH was converted into an AG and renamed Schaeffler AG
Page 34 · Schaeffler Group · Capital Market Presentation · December 2014
Leading positions in growing markets1
Quality, technology and innovation leadership2
Shaping "Mobility for tomorrow" by focusing on four key areas3
Strong profitable growth and sustainable cash flow generation4
Continuous optimization of balance sheet5
4 Financing and corporate structureKey investment highlights
Page 35 · Schaeffler Group · Capital Market Presentation · December 2014
5 OutlookGuidance 2014 unchanged
ProfitabilityGrowth
Quality Innovation
Sales growth
Capex
Quality policy
Employees
EBIT margin
Free cash flow
R&D expenses
Innovation
>7%1)
6-8% of sales
12-13%
Positive
Further improve
~ 3,000 new jobs
5% of sales
Maintain leadingposition in patentapplications
1) FX adjusted
Page 36 · Schaeffler Group · Capital Market Presentation · December 2014
Schaeffler IR contact
Financial calendar 2014
phone: + 49 9132 82 4440fax: + 49 9132 82 [email protected]/ir
Results FY 2014 March 26, 2015Results Q1 2014 May 21, 2015
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