Berenberg Energy Efficiency anConstruction Conference Zurich

Returning to the path of profitable growth
Berenberg Energy Efficiency & Construction Conference
Zurich, 7th June 2016
Financials and strategy
Preparing the return to profitable growth
> 2015 in a nutshell
> Financial figures 2015
> Financial results Q1 2016
> Financial goals 2016 and beyond
> Strategic roadmap for returning to profitable growth
1
2015 in a nutshell
1.
2015 represents another year of strong sales growth with profit margin at previous
year's level
2.
Positive net liquidity position due to strong operating free cash flow and capital
increase
3.
Dividend of € 1.00 per share proposed to the AGM
4.
Operational efficiency measures show first positive results in the Powder Metallurgy
and have been completed by the end of Q1 2016 with further profitability gains
5.
SHW succeeded in expanding its international footprint to China and North America
6.
Successful ongoing development of new products to further penetrate the fast
growing market for transmission oil pumps
2
Positive market development expected to continue
Light Vehicle Production
(< 6 t) (m units)
SHW Group Sales (€m)
Global
7.8%
102.1
CAGR
430.0
2.6%
463.5
> SHW grew faster than the
market in 2015
87.4
2014
2020
2014
> Combustion engines incl.
hybrids continue to dominate
2015
Engine Production
(m units)
Transmission Production
(m units)
Europe
Global
27
24
21
18
15
12
9
6
3
0
120
80
60
40
20
2020
2025
> Europe stays most important
Diesel market
> Global automatic
transmission solutions
expected to grow on
average by 2.2 per cent until
2025 to 59.9 m units
100
2015
> Global vehicle production
expected to increase on
average by 2.6 per cent to
102.1 m units until 2020
0
2015
2020
2025
Source: IHS, April 2016
SHW well positioned to benefit from market trends and global mobility demand
3
Key financial figures 2015
€m
2015
2014
Group sales
463.5
430.0
+7.8%
Incoming orders
445.0
453.5
-1.9%
Adj. EBITDA
43.5
40.6
+7.0%
Depreciation (excl. PPA)
22.5
18.3
+23.5%
Adj. EBIT
21.0
22.5
-6.5%
Net income for the period
14.4
10.7
+34.4%
EPS (in €)
2.26
1.83
+23.7%
DPS (in €)
1.001
1.001
7.0
7.2
Investments2
23.9
34.8
Operating free cash flow
18.1
-5.4
Net cash / Net debt
12.3
-14.4
ROCE (%)
16.2
17.7
1,287
1,173
Working Capital Ratio (%)
No. of employees (average)
1
2
in %
> Sales grew by 7.8 per cent
due to continuous high
customer demand
> EBITDA margin with 9.4 per
cent at previous year’s level
> Net income positively
influenced by income from
investments
> Dividend of € 1.00 per share
proposed to AGM
-31.2%
+9.7%
> Clear improvement of
operating free cash flow and
capital increase led to net
change in net cash of € 26.7
million
Proposal to the Annual General Meeting on the 10th of May 2016
Additions to property, plant and equipment and intangible assets.
Figures in line with the readjusted guidance
4
Group
Sales and EBITDA
> Sales driven by high
customer call-offs from
mainly European OEMs
Sales by quarter (€m)
Sales (€m)
7.8%
430.0
463.5
2014
2015
Adj. EBITDA (€m)
123.1
118.3
117.0
109.4
107.3
108.6 105.0
104.8
Q1
Q2
Q3
Q4
Adj. EBITDA by quarter (€m)1
7.0%
40.6
43.5
9.4%
9.4%
2014
2015
> Stable adj. EBITDA margin
of 9.4 percent amounting to
€ 43.5 million
11.0 11.1 11.9 11.3
10.0 9.4 10.5
8.8
8.4% 9.4%
10.3% 9.7%
10.3% 8.5%
Q2
Q3
Q1
2014
1 Readjustment
> Pumps and Engine
Components business
segment has made a
substantial contribution to
earnings improvement
8.7% 10.0%
Q4
2015
of Q2 / Q3 figures in 2014 due to non-recurring serial start-up costs
Results within target range
5
Customer sales
113.4
117.4
VW
83.8
81.3
Daimler
32.6
Audi
36.0
36.9
23.4
30.8
Volvo Cars
Thyssen
Krupp
12.3
23.4
13.2
16.8
Hilite
9.7
10.6
PSA
12.0
7.1
Other
> VW ‘Dieselgate’ had no
visible effect on SHW sales
in 2015
21.8
22.9
Porsche
Ford
> Dependency on the VW
group expected to decrease
by internationalisation and
diversification towards
transmission oil pumps from
2018 onwards
47.1
BMW
> Strong business
relationships with European
premium OEMs
71.7
69.2
2014
2015
International growth and diversified product range will lead to a
more balanced customer structure
6
Business Segment: Pumps and Engine Components
2014
Sales and EBITDA
Sales (€m)
2015
Sales by quarter (€m)
> Sales Industry: -7.0 per cent
9.5%
333.6
2014
365.2
2015
80.6
9.3
33.1
35.2
9.9%
9.6%
2015
82.6
98.2
Q2
85.6 93.3 84.8 81.1
Q3
Q4
Adj. EBITDA by quarter (€m)1
6.5%
1 Readjustment
92.5
Q1
Adj. EBITDA (€m)
2014
> Sales Passenger Cars:
+12.7 per cent
9.0 9.0
9.3
9.2
7.8
7.5
7.4
9.3% 10.0%
10.9% 9.1%
10.8% 8.3%
8.7% 11.4%
Q1
Q2
Q3
Q4
of Q2 / Q3 figures in 2014 due to non-recurring serial start-up costs
> Sales Powder Metallurgy2:
+8.3 per cent
> Slight decline of adj. EBITDA
margin to 9.6 per cent due to
non timely realisation of
efficiency measures in
Powder Metallurgy
> Operations in Canada and
China develop according to
plan; difficult market
environment in Brazil
2 Including
inter-company sales
Operational and logistical bottlenecks significantly reduced –
SHW is now on the home straight to realise sustainable profitability gains
7
Business Segment: Brake Discs
Sales and EBITDA
2014
Sales (€m)
Sales by quarter (€m)
1.9%
98.3
96.5
2014
2015
2015
24.2 24.5 24.7 24.9 23.8 25.1 23.8 23.9
Q1
Adj. EBITDA (€m)
Q2
Q3
Q4
Adj. EBITDA by quarter (€m)
> Total number of brake discs:
4.24 m units
> Number of composite brake
discs: +48 per cent to 0.38 m
units
> Adj. EBITDA further positively
impacted by product mix
effects in favour of composite
brake discs and higher
degree of automation
8.0%
9.1
9.8
1.7
9.4%
2014
2.1
2.5
3.0
2.7
2.2
2.7
2.1
10.0%
2015
7.2% 8.7%
10.1%11.9%
Q1
Q2
9.1%10.8%
Q3
11.2% 8.3%
Q4
The Brake Discs business segment reached the 10 per cent margin threshold
8
Net working capital ratio
Development of net working capital ratio
11.3%
> Despite sales increase of 7.8
per cent, net working capital
increased only by 5.4 per
cent to € 32.5 million
11.7%
11.3%
10.5% 10.4%
9.7%
7.2%
Medium-term
target: 11%
7.0%
> Consequent working capital
management and seasonal
influences resulted in a low
working capital ratio at year
end
> Average working capital ratio
further reduced in 2015
Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015
SHW is building a track record of meeting its working capital goals
9
Investments and depreciation
Investments (€m)
-31.2%
34.8
Investments by quarter (€m)
9.2
23.9
8.0%
5.2%
2014
2015
8.8 8.1
6.2
4.2%
2014
2014
6.7
5.0
4.6
8.8% 5.3%
8.2% 6.6%
6.2%14.2%
9.3% 4.4%
Q1
Q2
Q3
Q4
Depreciation by quarter (€m)
Depreciation (€m)
23.5%
22.5
18.3
10.1
5.0
4.0
5.5
4.5
6.0
6.0
4.8
4.9
> Reduced investments in
2015 correlates with sales
forecast in 2016 and is an
effect of diligent investment
discipline
> Delays in implementing
efficiency measures led to
corresponding slight
investments deferrals
> Depreciation ratio increased
due to high investment
levels in previous years
4.9%
2015
3.8% 4.3%
4.2% 4.5%
4.4%15.1%
4.5% 5.7%
Q1
Q2
Q3
Q4
2015
Higher investments in 2016 / 2017 as
basis for profitable growth in the subsequent years
10
Cash Flow
(€m)1
Cash flow from operating
activities
Q4/2015
Q4/2014
23.9
18.3
40.9
29.9
Cash flow from investing
activities
- tangible and intangible
assets
-2.3
-7.8
-22.8
-35.2
Operating free cash flow
21.7
10.6
18.1
-5.4
Cash flow from investing
activities
- financial assets
-0.1
-0.3
-9.0
-0.3
Total free cash flow
21.6
10.3
9.1
-5.6
Other (esp. capital increase)
0.0
0.0
17.6
-5.8
Change in net cash
21.6
10.3
26.7
-11.5
1 Figures
12M/2015 12M/2014
> Strong operating cash flow
due to higher net profit,
depreciation, provisions and
lower capital expenditure
result in a positive operating
free cash flow of € 18.1
million
> Due to strong operating free
cash flow and capital
increase SHW managed to
achieve a positive net cash
position
include rounding adjustments
Operating free cash flow indicates stabilised operations
11
Sound financial profile
Assets
209.5m
Liabilities
230.5m
209.5m
230.5m
> Non-current assets increased due
to investments accounted for
using the equity method
80.2
84.5
90.2
> Current assets decreased due to
an optimised accounts receivable
and inventory management
116.2
> Equity ratio increased to 50.4 per
cent
28.1
7.3
14.6
135.5
26.3
15.1
2.5
119.0
75.0
0.3
2014
Current assets
Non-current assets
70.4
14.8
2015
Cash
2014
2015
Equity
Bank debt
Pensions
Other short-term liabilities
> Long-term liabilities increased
due to pending second instalment
of paid in capital into Brake Disc
JV
> Positive net cash of € 12.3 million
due to positive operating free
cash flow and capital increase
Other long-term liabilities
Sound balance safeguards strategic flexibility
12
Q1 2016 in a nutshell
1.
Sales after three months lower than previous year – as expected
2.
EBITDA margin increased to 10.1 per cent
3.
Sales and earnings forecast for the year as a whole confirmed
4.
The measures to boost productivity in Powder Metallurgy were completed as
scheduled with positive margin effects - further steady profitability gains expected
5.
Final decision on eastern European production location expected in the course of
Q2 2016
6.
Successful ongoing development of new products to further penetrate the fast growing
market for transmission oil pumps
13
Stable market environment in Q1 2016
Light Vehicle Production
(< 6 t) (m units)
6.1 6.3
SHW Group Sales (€m)
117.0
5.4 5.5
106.6
4.3 4.5
> Moderate increase of global
light vehicle production by
0.9 per cent to 22.8 million
units with strong regional
discrepancies
> Combustion engines incl.
hybrids continue to dominate
0.8 0.6
China
Europe
North
America
South
America
Global Engine Production
(m units)
17.8
1. Quarter 2015
1. Quarter 2016
Global Transmission Production
(m units)
18.0
11,9
10,3
4.7
Gasoline
12,5
> Europe stays most important
Diesel market
9,8
4.7
Diesel
> Anticipated consumer
reluctance regarding Diesel
engines failed to appear
Manual
Automatic
> Above-average growth rates
for automatic transmissions
– global production
increased by 5.1 per cent to
12.5 million units
Source: IHS, April 2016
SHW well positioned to benefit from market trends and global mobility demand
14
Group
Sales by quarter (€m)
Sales (€m)
-8.9%
117.0
Q1
2015
106.6
Q1
2016
Adj. EBITDA (€m)
123.1
117.0 106.6
Q1
Q2
118.3
Q3
105.0
Q4
Adj. EBITDA by quarter (€m)
-2.5%
11.0
10.8
9.4%
10.1%
Q1
2015
Q1
2016
11.0 10.8
9.4% 10.1%
Q1
11.9
9.7%
Q2
10.0
10.5
8.5%
10.0%
Q3
2015
> Sales development in the
Pumps and Engine
Components business
segment as expected
> Sales in the Brake Discs
business segment suffered
due to factors including
significantly lower scrap
prices on account of reduced
material surcharges.
> Despite a decline in sales
adj. EBITDA margin
increased from 9.4 per cent
to 10.1 per cent amounting
to € 10.8 million
Q4
2016
Results within target range
15
Financial figures Q1 2016
€m1
Q1
2016
Q1
2015
Group sales
106.6
117.0
-8.9%
Adj. EBITDA
10.8
11.0
-2.5%
10.1%
9.4%
Depreciation (excl. PPA)
5.9
5.0
+19.3%
Adj. EBIT
4.8
6.1
-20.5%
4.5%
5.2%
14.4%
16.9%
3.3
4.1
-19.0%
0.51
0.67
-22.9%
Investments2
5.0
6.2
-19.6%
as % of sales
4.7%
5.3%
Working capital as % of sales
10.6%
10.5%
Equity ratio
51.0%
48.0%
-6.7
-9.9
5.6
-8.9
as % of sales
as % of sales
ROCE
Net income for the period
EPS (in €)
Operating free cash flow
Net cash / net debt
1 Figures
Change
-32.6%
> Sales development as
expected
> Adj. EBITDA margin of 10.1
per cent exceeds previous
year’s and quarter level
> Investment-related upswing
in depreciation influence adj.
EBIT, net income for the
period and ROCE
> Strong liquidity position due
to high operating free cash
flow of € 21.3 million in the
last 12 months
> Dividend of € 1.00 per share
proposed to the AGM to be
held on May 10
include rounding differences
2 Additions
to tangible and intangible assets
Figures in line with the guidance for 2016
16
Customer sales
28.7
VW
25.6
21.7
Daimler
17.7
12.6
Audi
9.5
9.3
7.6
7.0
Volvo Cars
Thyssen
Krupp
4.7
5.2
Porsche
5.6
4.6
5.6
Ford
Hilite
PSA
Other
> Decline relates to two
volume products whose
sales figures were lower
than in the previous year
due to a customer’s
switchover of technology as
well as the transition to a
successor product
9.6
BMW
> Expected decrease in sales
with Daimler Group and VW
Group
3.6
2.6
2.7
1.9
2.0
16.5
19.2
Q1 2015
Q1 2016
International growth and diversified product range will lead to a
more balanced customer structure
17
Business segment: Pumps and Engine Components
Sales (€m)
Sales by quarter (€m)
-7.1%
92.5
85.9
92.5 85.9 98.2
93.3
> Sales Passenger Cars:
-7.5 per cent
81.1
> Sales Industry: -1.3 per cent
> Sales Powder Metallurgy1:
-8.8 per cent
Q1
2015
Q1
2016
Adj. EBITDA (€m)
+3.0%
9.5
9.3
10.0%
Q1
Q3
Q4
Adj. EBITDA by quarter (€m)
9.3 9.5
9.0
9.2
Q1
2016
Q1
9.1%
Q2
> Despite sales decrease rise
in adj. EBITDA to € 9.5
million and a margin of 11.1
per cent
7.8
> Considerably lower costs for
external processing,
finishing and special
shipments
11.1%
10.0% 11.1%
Q1
2015
Q2
8.3%
11.4%
Q3
2015
Q4
2016
1 Excluding
inter-company sales
Operational efficiency programme successfully concluded by the end of Q1 2016
with positive effects on operating result and margin
18
Business segment: Brake Discs
Sales (€m)
Sales by quarter (€m)
-15.5%
24.5
20.7
Q1
2015
Q1
2016
24.5
24.9
23.9
20.7
Q1
Adj. EBITDA (€m)
Q2
Q3
3.0
2.7
2.1
> Positive product mix effects
made up for lower capacity
utilisation
7.7%
8.7% 7.7%
Q1
2015
> Sales development further
influenced by significantly
lower scrap prices
> Adj. EBITDA margin only
decreased to 7.7 per cent
2.1
1.6
8.7%
Q4
Adj. EBITDA by quarter (€m)
-25.2%
2.1
1.6
25.1
> Sales development influenced
by a decline in one-piece
brake discs and a rise in
composite brake discs
Q1
2016
Q1
11.9%
Q2
10.8%
8.3%
Q3
2015
Q4
2016
Due to product mix effects and improved process workflows
the 10 per cent margin threshold remains attainable
19
Net working capital ratio
> Net working capital
increased year-over-year by
€ 1.6 million to € 48.0 million
11.7%
11.3%
10.6%
10.5% 10.4%
9.7%
7.2%
7.0%
> With 10.6 per cent, net
working capital ratio lies
slightly below the
sustainable target of 11.0 per
cent
> Particularly targeted trade
receivables management
contributed to a low net
working capital ratio
Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016
Medium-term
target: 11%
SHW is building a track record of meeting its working capital goals
20
Investments and depreciation
Investments (€m)
-19.6%
6.2
5.0
5.3%
4.7%
Q1
2015
Q1
2016
Investments by quarter (€m)
8.1
6.2
5.0
5.3% 4.7%
Q1
4.3%
Q2
5.0
5.9
4.2%
4.4%
Q3
Q4
> For 2016 an investment ratio
of approx. 6 to 7 per cent is
envisaged
5.5
6.0
6.0
5.1%
5.7%
5.6%
4.3% 5.6%
Q1
2015
4.6
> Depreciation ratio increased
due to high investment
levels in previous years
Depreciation by quarter (€m)
Depreciation (€m)
+18.4%
5.9
5.0
6.6%
5.0
> Investments in Q1 2016
declined to € 5.0 million
Q1
2016
Q1
4.5%
Q2
Q3
2015
Q4
2016
Higher investments in 2016 / 2017 as
basis for capital-efficient growth in the subsequent years
21
Cash Flow
(€m)1
Q1/2016
Q1/2015
Cash flow from operating activities
-1.7
-1.4
Cash flow from investing activities
- tangible and intangible assets
-5.0
-8.5
Operating free cash flow
-6.7
-9.9
Cash flow from investing activities
- financial assets
-0.0
-8.9
Total free cash flow
-6.7
-18.8
Other (esp. capital increase)
-0.1
24.3
Change in net cash
-6.8
5.5
1 Figures
> Operating free cash flow
impacted by the businessdriven build-up of inventories
and receivables and
positively affected by a lower
degree of investing activities
> Cash flow from investing
activities in financial assets
in Q1 2015 amounting to €
8.9 million was caused by
the first cash instalment into
the Chinese Brake Discs
joint venture
include rounding adjustments
Operating free cash flow influenced by a lower degree of investments
22
Sound financial profile
Assets
234.4m
Liabilities
233.5 m
234.4m
233.5 m
112.6
128.2
119.1
134.0
27.9
10.0
105.1
26.2
7.1
2.2 8.1
91.8
76.7
1.1
7.8
31.03.2015
31.03.2016
31.03.2015
> Current assets decreased
due to an optimised
accounts receivable and
inventory management
> Strong net liquidity position
due to high operating free
cash flow of € 21.3 million in
the last 12 months
77.9
31.03.2016
Equity
Bank debt
Non-current assets
Pensions
Other short-term liabilities
Current assets
Other long-term liabilities
Cash
> Non-current assets
increased due to
investments accounted for
using the equity method
> Equity ratio increased from
48.0 per cent to 51.0 per
cent mainly triggered by the
net period surpluses of the
last 12 months
Sound balance sheet safeguards strategic flexibility
23
Financial goals – Sales and EBITDA
Phase I: Consolidation
SHW Europe
463.5
440 – 460
Phase II: Capital-efficient growth
SHW International
440 – 460
570 – 600
630 – 660
480 – 505
Sales
(€m)
14%
13%
12%
11%
10%
9%
As of 2018:
EBITDA margin ≥12%
EBITDA
43.5
43 – 47
(€m)
2015
2016E
2017E
2018E
2019E
2020E
After years of strong sales growth SHW now enters into a phase of consolidation to
pave the way for the next capital-efficient growth phase from 2018 onwards
24
Financial goals – Investments and depreciation
Phase I: Consolidation
23.9
32 – 35
Phase II: Capital-efficient growth
32 – 35
26 – 29
27 – 30
29 – 32
Investments
(€m)
Dep
22.5
21 – 23
25 – 27
26 – 28
2017E
2018E
31 – 33
31 – 33
2019E
2020E
(€m)
2015
2016E
Investments in the consolidation phase trigger strong sales
and profitability growth from 2018 onwards
25
Financial goals – Miscellaneous
Capital
structure
> Sustainable and strong capital structure with a balance sheet equity ratio of at least 30
per cent to 40 per cent
Debt ratio
> Leverage potential to increase net debt / adj. EBITDA ratio to a maximum of 2.5
Liquidity
> High flexibility in terms of financial and strategic headroom: syndicated loan facilities
plus additional baskets
Free cash
flow
> Focus on optimising operating free cash flow
Dividend
policy
> Results-oriented dividend policy with a pay-out ratio of 30 per cent to 40 per cent of the
net income for the year taking into account the financing requirements of SHW
26
SHW’s strategic roadmap
Phase I: Consolidation
Phase II: Capital-efficient growth
Operational excellence
Internationalisation
Innovation
2015
2016
2017
2018
2019
2020
After a phase of consolidation SHW will get back on the track for capital efficient
growth
27
Our strategic priorities – Enhance operational excellence I
Lean management
Production
excellence
>
>
>
>
>
Shorter cycle times in Powder Metallurgy
Press tool optimisation in order to achieve higher process stability
Modification of material for more precise shape
Automation of crack detection and visual inspection
Release of temporary workers from Q4 2015 onwards
Organisation
> Further development of process and matrix organisation
> Close integration of business critical departments (e.g. procurement, sales, R&D) within
the production network of Aalen-Wasseralfingen and Bad Schussenried
Procurement
& supplier
excellence
> Reorganisation of the purchasing and supplier management
> Centralising of certain functions in one location
Leadership
> Shopfloor management and low levels of hierarchy
> Successful implementation of continuous improvement process
> Cross-functional teams
Execution of measures increase production efficiency
and trigger performance improvements
28
Our strategic priorities – Enhance operational excellence II
Capacity and production lots increase
Demandcapacity
imbalance
> Investments of approx. € 20m (2014–2016) in Powder Metallurgy business
Powder
Metallurgy
> Sufficient capacity and flexibility for bigger, economical batch sizes in Powder Metallurgy
> Less freight services and logistics costs
> Reduction of third party expenses
Pumps
Assembly
> Positive effects on Pumps Assembly division
> Operations can run smoothly; no capacity or logistical constraints
Investments improve efficiency and profitability of Powder Metallurgy business,
positively impacting also pump assembly division
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Our strategic priorities – Enhance operational excellence
Production network optimisation eastern Europe
Relocation phase
Production phase
H1/2016
2017
> Decision on target
> Partial start of production
location
> Legal set-up and building
of infrastructure
> Further relocation of
assembly lines
> Sales expected to amount
H2/2016
to a double-digit million
> Relocation and
euro amount
commissioning of first
> Low single-digit million
infrastructure investment
costs
> Annual sales in eastern
Europe to be expected
above € 100m in 2020
> Further added value
potential by increasing
vertical integration
assembly line
Earnings improvements should reach high single-digit million Euro range by 2020
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Our strategic priorities – Drive internationalisation I
Bad Schussenried
Aalen-Wasseralfingen
Toronto
Germany
Germany
Canada
LongKou
China
Neuhausen ob Eck
Germany
Tuttlingen-Ludwigstal
Germany
Shanghai
China
Sao Paulo
Brazil
SHW is present in all strategic markets
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Our strategic priorities – Drive internationalisation II
Pumps & Engine Components
2015
2016
2017
2018
2019
2020
NAFTA
Re-entry into the market
SOP for North American OEM
China
SOP for North American OEM
Start of operating activities
SOP for Chinese OEM (transmission pumps)
Other
Production capacity shift to eastern Europe
SOP for North American OEM in Europe
SOP Eastern Europe
Brazilian subsidiary and ramping up of production
First equity investments
Further expansion of production network
Phase of competition and penetration
Enhanced international presence as catalyst for further international growth
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Our strategic priorities – Drive internationalisation III
Brake Discs
2015
2016
2017
2018
2019
2020
NAFTA
Development of market entry strategy
Market entry
SOP and ramp-up
China
SOP JV for unprocessed Brake Discs
Switch to production of processed Brake Discs
Other
Ongoing evaluation of further cooperation possibilities
First equity investments
Further expansion of production network
Phase of competition and penetration
Enhanced international presence as catalyst for further international growth
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Our strategic priorities – Leverage innovation leadership I
> SHW’s prototypes delivered to OEMs and Tier 1 suppliers
Two stroke
vane pump
> R&D experts were able to optimise performance of two stroke vane pump:
> Weight reduction
> Efficiency increase up to 85 per cent
> CO2 emission reduction in NEDC of up to 2g per CO2/km
> Electrical double stage oil pump combines two pumps in one solution
Scalable power
pack for electric
transmission oil
pumps
> Offers two pressure stages:
> High pressure stage enabling gearing
> Low pressure stage serving as coolant and lube oil pump
> Savings in space and thus weight reduction
Primary and secondary transmission oil pumps
are a further strategic growth segment for SHW
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Our strategic priorities – Leverage innovation leadership II
Standard casted
ventilated disc
SHW Patent
Weight reduction
about 2 kg/disc
High end casted
wave disc
Weight reduction
> 2 kg/disc
Weight reduction, improved comfort + performance
> SHW is innovation leader for weight reduction of automotive parts
> Composite brake discs with aluminium pot reduce weight
> Weight reduction of unsprung masses improves driving performance
The megatrend weight reduction is a key driver for the Brake Discs division
35
Your key takeaways
We have delivered results according to our guidance corridor and improved the
operating margin to 10.1 per cent on a Group level and to 11.1 per cent in the P&EC
business segment
We have successfully concluded the efficiency programmes in the Powder
Metallurgy and are now entering a phase of continuous improvement processes
We prepare the ground for SHW’s return to strong, capital-efficient growth
On our way to 2020, we will enhance our operational excellence, drive
internationalisation and leverage our innovation leadership
With our focus on CO2 saving and weight reduction technologies, we have an
excellent exposure to fundamental industry trends
36
Financial Calendar 2016
Dates
Events
29 July
Interim Report (January – June 2016)
28 October
Interim Report (January – September 2016)
37
Contact Investor Relations
Michael Schickling
Head of Investor Relations & Corporate Communications
Telephone: +49 (0) 7361 502-462
E-Mail: [email protected]
Anja K. Siehler
Senior Manager Investor Relations & Corporate
Communications
Telephone: +49 (0) 7361 502-469
E-Mail: [email protected]
38
Disclaimer
No offer or investment recommendation
This document, which has been issued by SHW AG (the “Company” or “SHW”), does not constitute an offer to sell, or the solicitation of an offer to subscribe for or
buy, any shares in the Company, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or
investment decision in relation thereto.
The contents of this presentation are may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part,
for any purpose. Neither the Company nor any other party is under any duty to update or inform you of any changes to such information. In particular, it should be
noted that financial information relating to the Company contained in this document has not been audited and in some cases is based on management information
and estimates.
This material is given in conjunction with an oral presentation and should not be taken out of context.
Certain market data and financial and other figures (including percentages) in this document were rounded in accordance with commercial principles. Figures
rounded may not in all cases add up to the stated totals or the statements made in the underlying sources. For the calculation of percentages used in the text, the
actual figures, rather than the commercially rounded figures, were used. Accordingly, in some cases, the percentages provided in the text may deviate from
percentages based on rounded figures.
Future Oriented Statements
Certain statements in this presentation are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and
assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward‐looking statements. These risks,
uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein.
No obligation to update the information
The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or
otherwise, except as otherwise required by applicable laws and regulations. You should not place undue reliance on forward-looking statements, which speak as
only of the date of this presentation. Statements contained in this presentation regarding past trends or events should not be taken as a representation that such
trends or events will continue in the future.
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