Schaeffler Capital Market Presentation
April 2016
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-looking statements are statements that are not historical facts; they include statements about Schaeffler Group's
beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and
projections as they are currently available to the management of Schaeffler AG. Forward-looking statements therefore
speak only as of the date they are made, and Schaeffler 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
AG management's current expectations and are subject to a number of factors and uncertainties that could cause actual
results to differ materially 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 market conditions affecting the automotive industry, intense competition in the markets in which we
operate and costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other
conditions affecting our markets, and other factors beyond our control).
This presentation is intended to provide a general overview of Schaeffler Group’s business and does not purport to deal
with all aspects and details regarding Schaeffler Group. Accordingly, neither Schaeffler Group nor any of its directors,
officers, employees or advisers nor any other person makes any representation or warranty, express or implied, as to, and
accordingly no reliance should be placed on, the accuracy or completeness of the information contained in the presentation
or of the views given or implied. Neither Schaeffler Group nor any of its directors, officers, employees or advisors nor any
other person shall have any liability whatsoever for any errors or omissions or any loss howsoever arising, directly or
indirectly, from any use of this information or its contents or otherwise arising in connection therewith.
The material contained in this presentation reflects current legislation and the business and financial affairs of Schaeffler
Group which are subject to change.
2
Schaeffler AG - Capital Market Presentation
Agenda
1
2
3
4
3
Overview
Business profile and investment highlights
Financial Results FY 2015
Outlook and Summary
Schaeffler AG - Capital Market Presentation
1 Overview
Schaeffler Group – A leading integrated automotive and industrial supplier
Key financials
Schaeffler at a glance





Leading integrated automotive and industrial supplier of highprecision components and systems
in EUR mn unless otherwise indicated
2014
12,124
2015
13,226
Global footprint with around 84,000 employees at about 170
locations in more than 50 countries
Sales
% growth (y-o-y)
8.2%
9.1%
Balanced business portfolio across sectors, geographies
and diversified customer base with leading market positions
EBITDA2)
2,210
2,370
% margin
18.2%
17.9%
Sizeable aftermarket exposure contributes to stable
financial performance
EBIT2)
1,561
1,676
% margin
12.9%
12.7%
Highly attractive profitability and cash returns
EBIT2)
margin Automotive
14.0%
13.6%
EBIT2)
margin Industrial
9.6%
9.7%
2) Before one-off effects
Sales by division (20151))
Sales by region (2015)3)
Asia/Pacific
Industrial
OEM
10%
16%
Industrial
Distribution
8%
21%
13%
Automotive
Aftermarket
Greater China4)
79%
63%
1) Pro-forma 2015 numbers with new Industrial structure
4
14%
53%
Automotive
OEM
22%
Americas
3) Market view (= location of customer)
4) China, Hong Kong and Taiwan
5) EMEA, Russia and India
Schaeffler AG - Capital Market Presentation
Europe5)
1 Overview
Strong track record of above-average growth and profitability
Development of sales
2006 – 20151)
Development of EBIT
2006 – 20151)
in EUR bn
in EUR bn
1.7
13.2
12.1
CAGR +5%
10.7
9.0
11.1
1.5
11.2
9.5
8.9
1.1
1.72)
1.62)
1.5
1.42)
1.5
1.4
1.1
1.0
8.3
13% margin
7.3
12% margin
1.0
0.4
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Group EBIT
Sales growth (y-o-y)
4.7% 8.4% -1.2% -17.6% 29.4% 12.6%
4.0%
0.7%
1) 2006-2010 relates to financials of a different entity (Schaeffler VZ GmbH)
5
EBIT margin (in %)
EBIT margin (before one-off effects)
8.2%
9.1%
12.9% 12.6% 11.7% 6.1%
2) Before one-off effects
Schaeffler AG - Capital Market Presentation
15.9% 16.2% 13.2% 12.8% 12.9% 12.7%
1 Overview
Proactive cash flow management over the cycle
Development of capital exenditures
2006 – 20151)
Development of operating cash flow
2006 – 20151)
in EUR mn
in EUR mn
1,372
1,2712)
1,137
933
920
1,069
1,021
1,025
978
1,091
1,133
1,027
890
860
857
773
597
8% of sales
572
6% of sales
321
361
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2006
2007
2008
2009
2010
2011
2012
2013
394
393
566
304
301
473
2014
2015
Free Cash Flow
in % of sales
11.2% 10.2% 11.0%
482
4.4%
3.8%
7.2%
7.7%
5.1%
7.1%
1) 2006-2010 relates to financials of a different entity (Schaeffler VZ GmbH)
6
246
7.7%
2) Adjusted for EU antitrust fine of EUR 371 mn
Schaeffler AG - Capital Market Presentation
4192)
370
1 Overview
Our success factors – Quality, technology and innovation
Outstanding application expertise and production
technology
Significant R&D spend
in EUR mn
720
1
593
611
622
2012
2013
2014
2015
+5.5%
+5.1%
+5.4%
Quality, Technology and Innovation:
State-of-the-art Plants, R&D and testing facilities
 Rank 2 in number of patent registrations in Germany

2
High level of application and system expertise:
Automotive: Know-how of the entire drivetrain allows
offering of customized (patented) solutions
 Industrial: Deep bearings product know-how allows
offering of high-quality standard as well as customized
solutions

in % of
sales
+5.3%
Best-in-class innovation platform
Unique manufacturing process and production know-how
allowing for production of complex parts at low cost, high
3
quality and in high volumes:
Technology leader in Cold Forming, Forging and
Heat Treatment
 In-house Industrial Engineering with more than 9,800
people (covers entire manufacturing process)
 In-house Tool Management & Prototyping with more than
4,400 people
 In-house Special Machinery department with more than
1,400 people
No of patents registered1)
2.518
1.854

2012
Rank in
Germany
#4
1) German Patent and Trademark Office
7
Schaeffler AG - Capital Market Presentation
2.100
2013
#2
2014
#2
2.334
2015
#2
2 Business profile and investment highlights
Customers base – Global and diversified
Automotive customers
Other customers ~40%
~ 75% of
Schaeffler sales
Industrial customers
Other customers ~85%
Top 10 customers
Top 10 customers
~60% of Automotive
sales
~15% of Industrial
sales
Total: ~8,000 customers
Top 10 customers
8
~ 25% of
Schaeffler sales
Total: ~14,000 customers
Top 10 customers
Schaeffler AG - Capital Market Presentation
2 Business profile and investment highlights
Product offering – Leader for critical components / systems in Automotive
~70% of Automotive
division sales are
non-bearing related
Engine systems
Rolling
bearings
Valve train
components
(26% of sales in 2015)
Strut
bearings
Torque
converter
Variable
camshaft timer
Transmission systems
(42% of sales in 2015)
Ball screw drives for
steering systems
Belt & Chain
drive systems
Thermomanagement
Wheel bearings
Chassis systems
Balancer shaft
Automotive Aftermarket
Roll stabilizer
(17% of sales in 2015)
9
Schaeffler AG - Capital Market Presentation
(15% of sales in 2015)
2 Business profile and investment highlights
Product offering – Leader bearing supplier to over 60 industrial sectors
~ 85% of Industrial division
sales are bearing related
Cylindrical
roller bearings
with disc cage
Spherical
plain
bearings
Rotary table
bearings with
measuring
Active
system
magnetic
bearings
Linear guidance systems
Radial insert
ball bearings
Cage-guided
cylindrical
roller
bearings
Yoke type
and stud type
track rollers
Housings
Tapered
roller
bearings
Smallest
ball bearing
with a 1 mm
inside diameter
10
Needle
roller
bearings
Spherical
roller
bearings
Main
spindle
bearings
Direct
drives
Engine
bearings
Axial/radial
roller bearings with an
outside diameter
of up to 4,250 mm
(up to 12,000 mm
available on special
request)
Industrial Applications
Industrial Aftermarket
(63% of sales in 2015)
(37% of sales in 2015)
Schaeffler AG - Capital Market Presentation
2 Business profile and investment highlights
Footprint – Integrated global manufacturing & R&D
Global footprint
US






Europe
Cheraw (2)
Danbury
Fort Mill (2)
Joplin
Spartanburg
Troy
Wooster
Germany
China





Europe





Anting
Nanjing
Suzhou
Taicang (3)
Yinchuan (2)
South Korea
Canada
Mexico

Stratford (2)
Japan
Irapuato
Puebla


Ansan
Changwon
Jeonju



Yokohama

Bühl
Herzogenaurach
Homburg (3)
Schweinfurt (2)
+ 17 other
German sites
Austria

Berndorf-St. Veit
Czech Republic

Lanskroun
Italy

Momo
Portugal

Caldas da Rainha
Romania

Braşov
Russia

Uljanowsk
Thailand
Vietnam
Brazil



Manufacturing sites
R&D Centers
11
Port Elizabeth
Manufacturing sites
R&D Centers
Europe
Rayong
Americas
France



Bien Hoa City
Sorocaba (2)
South Africa


Calais
Chevilly
Haguenau (2)
Slovakia


Kysucké Nové Mesto
Skalica
India



Hosur
Pune
Vadodara (2)
Great Britain



Greater
China
Asia/Pacific
Total
48
14
7
5
74
9
5
1
2
17
Schaeffler AG - Capital Market Presentation
Llanelli
Plymouth
Sheffield
Hungary


Debrecen
Szombathely
Spain

Elgoibar
Switzerland

Romanshorn
2 Business profile and investment highlights
Our strategic concept – Long-term growth from "Mobility for tomorrow"
Key mega trends
Society trends
Technology trends
Environmental
trends
Economic trends
4 focus areas








Eco-friendly drives
Increasing complexity
Digitalization
Renewable energies
Availability of resources
3
Interurban mobility
Globalization
Affordability
Offering solutions in Automotive…
12
1
Urbanization
Population growth
… and in Industrial
Schaeffler AG - Capital Market Presentation
“Mobility for
tomorrow”
Urban mobility
2
Energy chain
4
2 Business profile and investment highlights
Schaeffler equity story
3 pillars
1
Out-performance
in Automotive
2
Margin upside
in Industrial

2015 FX-adjusted sales growth of 5.8%, EBIT margin before
special items at 13.6%

Best-in-class business with superior growth and margin profile

Out-performance of global light vehicle production on average
by 6% per annum over the last five years

2015 FX-adjusted sales growth of -3.2%, EBIT margin before
special items at 9.7%

Margin upside from CORE program: EBIT margin target of 13%
by 2018

Strategic sales target: Industrial division contributes 25% to
Group sales by 2020

Free Cash Flow generation of EUR 370 mn in 2015 with
significant upside potential from lower interest costs going
forward

Further deleveraging from operational cash flow (EUR750mn
by 2018)
3
Upside on Free
Cash Flow
generation
13
Schaeffler AG - Capital Market Presentation
Profitable
growth
2 Business profile and investment highlights
Automotive division again strongly outperforms the market in FY 2015
1
in EUR mn
Sales and EBIT margin
FY 14
FY 15
in EUR mn
w/o FX effects
2012
8,986
8,986
8,164
7,658
Growth
rate
(y-o-y)
EBIT –
margin1)

2013
2014
2015
+7.0%
+6.6%
+10.0%
+11.2%
13.5%
13.0%
14.0%
13.6%
Engine
Systems
Transmission
Systems
2,266
2,585
3,826
4,240
Chassis
Systems
1,360
1,468
Automotive
Aftermarket
1,534
1,700
Total
8,986
9,993
14.1%
6.1%
10.8%
4.9%
7.9%
3.3%
10.8%
9.9%
11.2%
5.8%
1) Before one-off effects
Sales and market development Automotive
Europe
Americas
Greater China
Key aspects
Asia/Pacific
+13%
+5%
+11%
+7%
+2%
+2%
-1%
World production:
+1.0%
Schaeffler Automotive: +5.8%
(w/o FX effects)
-3%
 Europe: Temporary under-performance due to
phase-out of two larger transmission contracts
 Americas: Ramp-up Chrysler engine with UniAir
system; Strong demand for torque converters
 Greater China: High demand for torque converters
and ramp-up of wet double clutch
 Asia/Pacific: High demand for torque converters,
ball screw and wheel bearings
Production of light vehicles FY 15 vs FY 14 (IHS)
Sales growth (w/o FX effects) Schaeffler Automotive FY 15 vs FY 14
14
Schaeffler AG - Capital Market Presentation
2 Business profile and investment highlights
1
Automotive – Best-in-class business with superior growth and margin
Combustion engine dominant but will be further electrified...
…to meet CO2 reduction targets
Powertrain concepts
1%
9%
19%
35%
98%
80%
185
g CO2/km
2%
CO2 legislation enacted worldwide
220
China: 117g in
20201)
US: 106g
in 2020
150
56%
115
2014
2013
2020
Combustion engine
2030
Hybrids
Electric
Key CO2 emission reduction trends…
Engine

80
2000
2005
Transmission
Chassis
Hybridization
Electrification
15




Friction reduction
Efficiency increase

Friction reduction
Torsional vibration
isolation

Friction reduction
Weight reduction



Micro&Mild hybrid
Full hybrid
Plug-In hybrid
2015
US: 97g
in 2025
2020
2025

...and our market leading solutions

Thermal management
Start-Stop systems



2010
EU: 95g
in 2020
1) Proposed 2020 targets
Source: icct (November 2014)
Source: University of Duisburg-Essen, IHS

Japan: 122g in
2020



Increased automation
More gears
Clutch-by-Wire


Power on demand
48 V solutions


1)


Electric Vehicle
48 V solutions


High precision components and systems for increased variability in
combustion engines
Dominant market position in valve-train components
Innovative Thermal Management Module
Most comprehensive product offering for all transmission
technologies; broad bearings portfolio
Outstanding know-how in damper technologies, clutches, torque
converters and actuators
Mechatronic systems offerings
Strong market position in wheel bearings
48V and high-voltage Hybrid modules for Full and Plug-in Hybrids
Complete electric axles for 48V and high-voltage systems for allelectric driving and implementation of all-wheel drive
1) Part of BD Transmission Systems
Schaeffler AG - Capital Market Presentation
2 Business profile and investment highlights
1
Automotive – Best-in-class business with superior growth and margin
Leading sector margins
Content per vehicle growth1)
EBIT margin (%)
Europe
Americas
Greater China
Asia/Pacific
16%
14%
+2%
+10%
+16%
12%
10%
+8%
8%
6%
4%
2%
Global content 2010 (EUR): 61
Global content 2015 (EUR): 81
CAGR 2010 – 2015: +6%
1) Content per vehicle is calculated as ratio of relevant Schaeffler
Automotive sales (excl truck sales, aftermarket sales and FX effects)
to regional number of light vehicles produced
Product content per vehicle 2010
Product content per vehicle 2015
Source: IHS Automotive for light vehicle production
Example: Schaeffler China Concept Car
Schaeffler Automotive2)
European automotive suppliers3)
0%
2008
2009
2010
2011
2012
2013
2014
2015
2) Before one-off effects
3) European auto suppliers EBIT margins calculated as average of EBIT margins for Autoliv, Brembo, Continental, ElringKlinger, GKN,
Hella, Leoni, Norma, Stabilus and Valeo
Source: Bloomberg
Fuel reduction potential of 25% - 65%
P2 Hybrid Module with dry disconnection clutch
Dry dual clutch, Electromechanical clutch & gear actuation, control software
Optimized combustion engine: VCT on intake-/exhaust-side & coated
tappets, electric water pump
PROtroniC hybrid powertrain prototype control unit from Schaeffler
Engineering
16

A worldwide applicable plug-in hybrid powertrain with 6.4 kWh
battery, developed in China to fulfill stringent future fuel economy
targets

Hybridized 6-speed dry DCT, enabling on-demand connection of engine
thanks to P2 module with 41 kW / 180 Nm e-Motor

1.0l, 3-cylinder gasoline turbo engine, 92 kW / 170 Nm, front-wheel
drive
 Outstanding fuel saving compared to original vehicle:
•
•
- 25% with depleted battery
- 65% in plug-in operation
 Excellent driving dynamics (boost) & comfort
Schaeffler AG - Capital Market Presentation
2 Business profile and investment highlights
2
Industrial division with mixed development in FY 2015
Sales and EBIT margin
Sales development Industrial
in EUR mn
Old structure
in EUR mn
3,406
3,233
3,138
3,041
FY 14
FY 15

w/o FX effects
Growth rate
(y-o-y)
EBITmargin1)
2012
2013
2014
2015
-1.6%
-10.7%
+3.2%
+3.0%
12.7%
10.7%
9.6%
9.7%
Industrial
Applications
1,977
2,051
Industrial
Aftermarket
1,161
1,182
Total
3,138
3,233
3.7%
-2.7%
1.8%
-4.0%
3.0%
-3.2%
1) Before one-off effects
Industrial Applications sales by sector cluster
New structure
vs. prev. year (w/o FX effects)
Key aspects

Wind
Two-Wheelers
Rail
Aerospace
Industrial Automation
Raw Materials
-15%
17
-10%
-5%
+5%
+10%
+15%


Positive development in Wind, especially in China
Continuing weak market globally in Raw Materials,
especially Ming and Steel, Oil and Gas

Industrial Distribution:
 Weakness in North America as well as in Asia/Pacific,
mainly in Oil & Gas and Mining

New structure: Industrial Distribution no longer includes MRO
sales (as of Jan. 2016)
Offroad
Power Transmission
Applications business with mixed development across sectors
+20%
Schaeffler AG - Capital Market Presentation
2 Business profile and investment highlights
2
Industrial – Growth and margin upside from program CORE
Key issues Industrial division
Strategic target
1 Sales development and profitability below expectation
2 Decreasing market share with high-volume products
3 Delivery performance with room for improvement
4 Production footprint geared towards Europe
Industrial business
contributes 25% to Group
sales
by 2020
Re-energizing
Re-energizing
Industrialthe
Division
Industrial
business
by Program CORE
5 Product and business portfolio very broad
6 Organizational structure with too much emphasis
on central functions
13% EBIT margin
by 2018
Profitability target
18
Schaeffler AG - Capital Market Presentation
2 Business profile and investment highlights
2
Industrial – Growth and margin upside from program CORE
Program CORE
Overview of Program CORE
Key elements
1
Optimized
product and
service portfolio
Actions




2
High delivery
performance



3
Higher customer
orientation



4
Cost savings
and efficiency
improvements


Strengthen high-volume market sales
Balance customized product
business/engineering solutions
Enforce market penetration of service/
digitalization
Establish European distribution centers
(EDC) with target investment of EUR 200
mn to ensure immediate product
availability
Increase level of standardization
Implement high runner product program
with 24/48h delivery time
Strengthen sales organizations in the
regions
Strengthen regional engineering/ customer
support centers
Establish dedicated global key account
management
Reduce workforce by up to 500 people
Re-dimension central departments
Drive cost saving program including
material cost, efficiency gains and
overhead reduction

Program CORE announced on Aug. 20, 2015 with 4 main
drivers (Growth, Overhead, Delivery Performance, Efficiency)
and overall target 13% EBIT margin in 2018

Phase 1 (until Dec. 2015) fully completed, new organization
structure and management team in place

Phase 2 (until Dec. 2017) started, new sector approach with
8 sector clusters implemented

Completion ratio (as of March 15, 2016): 10% for overall
program
0%
Phase 1
2015
Phase 2
2016 – 2017

Preparation
Preparation
Preparation
100%
10%
Phase 3
2018 and beyond
Enhanced growth
Analysis
Delivery performance
of lean processes
 Implementation
 Overhead
 Efficiency
2015
7/1/15
19
Completion Ratio
Indicative plan
Schaeffler AG - Capital Market Presentation
2016
3/15/16
2017
2018
2 Business profile and investment highlights
3
Strong underlying free cash flow generation
Key aspects
Free Cash Flow
in EURm
EBITDA
2014
2015
 Free Cash Flow increased to EUR 543 mn before one-
2,172
2,096
(520)
(508)
8
43
Income taxes paid
(277)
(358)
Working capital change
(121)
(116)
 Free Cash Flow includes EUR 37 mn interest received
Others
(362)
215
CF from Operations
900
1,372
from Loan Note Receivables (EUR 72 mn according to
P&L)
One-time effects
4851)
1732)
1,385
1,545
Capex
(857)
(1,025)
in % of Sales
7.1%
7.7%
5
23
(852)
(1,002)
48
370
FCF before one-offs
533
543
Cash & cash equivalents
636
799
Interest paid
Interest received
CF from Op. before one-offs
Others
CF from Investments
Free Cash Flow
1) EUR 114 mn refinancing charges and EUR 371 mn reversal of EU antitrust
provisions 2) EUR 173 mn refinancing charges for early redemption of bond
20
offs despite a 20% increase in capital expenditures
 Free Cash Flow used to pay-out dividend (EUR 251 mn)
and to significantly reduce debt (EUR 259 mn)
Cash bridge
-173
in EUR mn
207
-197
197
-810
810
-259
636
-251
543
Cash inflow
Cash
2014
FCF
before
one-off
effects
IPO
Schaeffler AG - Capital Market Presentation
LNR
96
799
Cash outflow
Bonds
Makewhole
premium
Dividend Other
Cash
2015
2 Business profile and investment highlights
O3 Cash flow generation – Further develeraging expected going forward
Corporate structure (as of April 5, 2016)
Key elements
Simplified view
 Net debt lowered by EUR 1,061 mn in Q4 2015
(versus 9/30/15)
Family Shareholders
 Leverage ratio at 2.1x1); Target leverage ratio <1.5x
by 2018
Schaeffler Verwaltungs
GmbH
 Net debt does not include Loan Note Receivables of
EUR 1,773m (secured by share pledges over c23 mn
Continental AG shares)
Schaeffler Verwaltung
Zwei GmbH
100%
Free
float
75.1% of
share
capital
36%
1) Before one-off effects
10%
Free
float
54%
24.9% of
share
capital
Net financial debt
in EUR mn
EUR 6.0 bn
810 mn
2.7x
Schaeffler AG
Continental AG
Deleveraging
FCF Q4
from IPO
/ Other
30/9/2015
21
Schaeffler AG - Capital Market Presentation
EUR 4.9 bn
2.1x1)
31/12/2015
750 mn
Mid-term
target
Deleveraging
from FCF in
the next 3 years
< 1.5x
31/12/2018
3 Financial Results FY 2015
Overview key financials FY 2015
in EUR mn
1
Sales
2
EBIT
FY 14
FY 15
12,124
13,226
1,523
1,402
1,5612)
12.6%
EBIT margin
Q4 14
+9.1%
3,100
+3.5%1)
-7.9%
1,6762)
293
151
9.5%
+21.9%
4.7%
70
-67.5%
370
+670.8%
135
178
+31.9%
857
1,025
+19.6%
357
282
-21.0%
Capex ratio
7.1%
7.7%
11.5%
8.7%
Net debt
5,778
4,889
5,778
4,889
Capex
48
-48.5%
4182)
215
Free cash flow
591
+1.3%1)
-9.6%
4
654
+4.6%
12.9%2)
Net income
12.7%2)
3,244
3432)
+7.4%
10.6%
12.9%2)
Q4 15 Q4 15 vs. Q4 14
11.1%2)
3
2,172
EBITDA
2,096
2,3702)
Leverage ratio2)
2.6x
2.1x
6
Schaeffler Value Added2)
885
931
6
RoCE2)
23.1%
22.5%
1) FX-adj.
-15.4%
-3.5%
2,2102)
5
22
FY 15 vs. FY 14
469
+7.2%
+5.2%
2) Before one-off effects
Schaeffler AG - Capital Market Presentation
331
-15.4%
-29.4%
5192)
5982)
2.6x
2.1x
172
232
23.1%
22.5%
+15.2%
+34.9%
3 Financial Results FY 2015
1
Sales FY 2015 up 9.1% – FX-adj. up 3.5%
Sales
FY 2015 sales by region
in EUR mn
Y-o-y growth (w/o FX effects)
Asia/Pacific
+13.5% (+5.0%)
10%
Greater China
3,345
2,976
3,014
3,034
+23.5% (+6.0%)
3,387
3,250
3,100
14%
3,244
53%
22%
Europe
Americas
+2.1% (+1.0%)
+17.5% (+8.2%)
Sales by division
12,124
Q1
Q2
Q3
Y-o-y growth (w/o FX effects)
13,226
Q4
Q1
2014
Q2
Q3
2015
Gross profit margin in %
28.7
27.7
28.9
28.2
23
27.5
28.3
28.0
28.6
28.7
FY 14
FY 15

(w/o FX
effects)
Q4 14
Q4 15

(w/o FX
effects)
Automotive
8,986
9,993
11.2%
(5.8%)
2,316
2,482
7.2%
(3.8%)
Industrial
3,138
3,233
3.0%
(-3.2%)
784
762
-2.8%
(-6.1%)
Total
12,124
13,226
9.1%
(3.5%)
3,100
3,244
4.6%
(1.3%)
Q4
29.3
Schaeffler AG - Capital Market Presentation
3 Financial Results FY 2015
2
EBIT margin FY 2015 12.7%1)
Key aspects
EBIT1)
in EUR mn
 FY 15 EBIT1) margin slightly below previous year due
406
441
7
429
383
433
384
to increase in R&D expenses and temporarily higher
freight costs
418
 Adjustments: one-off effects in EBIT 2015 include
343
50
provisions for restructuring for program CORE
(EUR 36 mn) and provisions for legal claims
(EUR 238 mn)
267
434
418
293
1,561
1,676
-12
Q1
Q2
Q3
Q4
Q1
Q2
2014
Q3
151
EBIT1) by division
Q4
in EUR mn
EBIT margin in %
14.0
14.1
12.7
9.5
13.0
13.3
11.3
4.7
10.6
12.6
14.1
12.7
12.9
1) Before one-off effects
24
FY 15

Q4 14
Q4 15
Automotive
1,260
1,362
+8.1%
326
356
Margin
14.0%
13.6%
14.1%
14.3%
301
314
17
62
Margin
9.6%
9.7%
2.2%
8.1%
Total
1,561
1,676
343
418
Margin
12.9%
12.7%
11.1%
12.9%
Industrial
EBIT1) margin in %
13.6
FY 14
2015
11.1
13.2
13.3
11.3
12.7
12.9
Schaeffler AG - Capital Market Presentation
+4.3%
+7.4%

+9.2%
+264.7%
+21.9%
3 Financial Results FY 2015
3
Net income FY 2015 EUR 591 mn
Net income1)
Reconciliation of net income
in EUR mn
in EUR mn
654
229
220
215
-121
72
Δ EBIT
Δ Financial
Result
-8
-6
Δ Taxes
Δ Minorities
591
212
167
142
FY 2014
70
654
591
Key aspects
 Improved financial result led to higher net income
 Tax rate at 29% up from 27% in the previous year
-10
Q1
period mainly due to positive one-off effects in 2014
Q2
Q3
Q4
Q1
Q2
2014
Q3
2015
Q4
 EPS 2015 at 1.28 Euro2)
 Proposed dividend 35 cents per share (payout ratio of
28.9% of net income excluding one-off effects)
 Special dividend of 15 cents per share
1) Attributable to the shareholders of the parent company
25
FY 2015
2) In accordance with IAS 33
Schaeffler AG - Capital Market Presentation
3 Financial Results FY 2015
4
Free cash flow FY 2015 EUR 370 mn
Free cash flow FY 2015
∆ Free Cash Flow FY 2015 vs. FY 2014
in EUR mn
in EUR mn
370
2,096
-116
48
76
595
5
168
47
81
Net
Interest
payments
Taxes
-1,025
FCF
FY 2014
-292
370
-358
Δ
Working
Capital
Capex
Interest
Capex
Other
FCF
FY 2015
Tax
238
Other
Free cash
flow
 Capex increased by EUR 168 mn
 FCF impacted by significant Other line (includes
provision for legal claims of EUR 238 mn and for
restructuring of EUR 36 mn in 2015 and antitrust fine
of EUR 371 mn in 2014, respectively)
1) One-off effect from refinancing transaction in Q2 2015
26
Δ
Working
Capital
Key aspects
-1731)
EBITDA
EBITDA
Schaeffler AG - Capital Market Presentation
3 Financial Results FY 2015
5
Leverage ratio FY 2015 2.1x
Net financial debt
Change in net financial debt
in EUR mn
in EUR mn
286
5,529
5,768
5,755
5,778
6,190
6,245
5,778
-163
5,950
-1,266
4,889
44
210
2.6
2.7
Q1
Q2
2.6
2.6
2.7
Q3
Q4
Q1
2.7
2.6
Q2
2014
Q3
2.1
Q4
2015
Q4 2014
FX effect
Δ Cash Repayment
Bond
Position Term Loan1) refinancing2)
Other
4,889
Q4 2015
Key aspects
 Net financial debt significantly impacted by FX effects
Leverage ratio (Net financial debt w/o shareholder loans / LTM EBITDA adj. for one-off effects)
(high portion of U.S. denominated debt)
 Partial repayment of institutional loans (USD and
Gross debt
5,751
6,226
6,443
6,414
6,799
6,665
6,674
5,688
675
636
609
420
724
799
EUR tranche) in June 2015, Oct 2015 and Nov 2015
Cash & cash equivalents
222
27
471
1) Voluntary prepayment of institutional term loans
2) The value of the bonds issued in April exceeds the value of the redeemed
bonds
Schaeffler AG - Capital Market Presentation
3 Financial Results FY 2015
6
Schaeffler Value Added 931 EUR mn – RoCE 22.5%
Schaeffler Value Added1)
in EUR mn
803
787
Key aspects Schaeffler Value Added
+46 mn
885
931
 Schaeffler Value Added2) measures internal value
creation on a group-wide basis
 Schaeffler Value Added increased in 2015 to
EUR 931 mn (up EUR 46 mn versus 2014)
EBIT1)
2012
2013
2014
2015
1,469
1,436
1,561
1,676
 Cost of Capital: 10% (pre-tax)
2) Defined as EBIT minus Cost of Capital (10% * Ø Capital Employed)
Return on Capital Employed1)
22.1%
22.1%
Key aspects RoCE3)
23.1%
22.5%
 RoCE measures capital efficiency on a pre-tax basis
 RoCE stable at 22.5%, in-line with previous years
 Capital Employed increased by 10.3% driven by 20%
increase in capital expenditures in 2015
Capital
Employed
(in EURm)
2012
2013
2014
2015
6,661
6,485
6,756
7,455
1) Before one-off effects
28
3) Defined as EBIT / Ø Capital Employed
Schaeffler AG - Capital Market Presentation
4 Outlook and Summary
Guidance 2016
Sales growth
EBIT-Margin
2015
Guidance 2016
2015
Guidance 2016
3.5%
3-5%
12.7%
12-13%
FX-adjusted
FX-adjusted
before one-off effects
before one-off effects
Free Cash Flow
Market assumptions
2015
Guidance 2016
 Automotive: global Light Vehicle production
growth of around 2%
EUR 370 mn
29
̴ EUR 600 mn
 Industrial: low single-digit growth in global
Industrial production
Schaeffler AG - Capital Market Presentation
Financial calendar 2016
30
March 15, 2016
Results FY 2015
March 17, 2016
BofAML Global Industrial Conference, London
April 22, 2016
Annual General Meeting, Nuremberg
May 12, 2016
Results Q1 2016
June 7, 2016
JP Morgan Annual Autos Conference, London
June 8, 2016
UniCredit Automotive Credit Conference, London
June 9, 2016
Deutsche Bank European Leveraged Finance Conference, London
June 10, 2016
dbAccess German, Swiss, Austrian Conference, Berlin
July 20, 2016
Capital Market Day, London
Schaeffler AG - Capital Market Presentation
IR contact
Investor Relations
phone: + 49 9132 82 4440
Christoph Beumelburg
+49 (0)9132 82 5414
fax:
Niels Fehre
+49 (0)9132 82 85805
Susanne Sievers
+49 (0)9132 82 4408
+ 49 9132 82 4444
Email:ir@schaeffler.com
Web: www.schaeffler.com/ir
31
Schaeffler AG - Capital Market Presentation
Backup
Sales per division
Sales Automotive
Sales Industrial
in EUR mn
in EUR mn
2,510
2,212
2,227
2,231
2,554
2,447
2,316
2,482
835
833
803
803
787
784
764
8,986
Q1
Q2
9,993
Q3
Q4
Q1
2014
Q2
+9.1%
+8.4%
Q3
Q4
+10.8%
32
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
-4.7%
-6.1%
2015
2014
2015
+11.5%
3,233
3,138
Growth rate y-o-y (w/o FX effects)
+14.3%
762
Growth rate y-o-y (w/o FX effects)
+6.7%
+7.1%
+5.6%
+5.8%
+3.8%
+3.0%
+5.3%
+5.9%
+4.3%
Schaeffler AG - Capital Market Presentation
+3.0%
1.3%
-2.9%
-3.2%
Backup
EBIT per division
EBIT Automotive
EBIT Industrial
in EUR mn
in EUR mn
314
319
301
326
352
349
7
356
305
34
110
231
92
92
82
81
79
342
326
62
292
36
17
1,260
301
1,362
-12
Q1
Q3
Q4
Q1
2014
Q2
Q3
Q4
1
Q1
2015
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2015
EBIT1) margin in %
13.5
14.3
14.0
14.1
13.9
11.9
14.4
13.6
14.3
12.0
10.4
13.7
9.6
1) Before one-off effects
33
26
16
2014
EBIT1) margin in %
14.2
17
125
Q2
314
Schaeffler AG - Capital Market Presentation
2.2
11.0
9.5
10.1
9.7
8.1
Backup
Automotive division
Sales and market development Automotive
Europe
Americas
Greater China
Key aspects
Asia/Pacific
+13%
+5%
+11%
+7%
+2%
+2%
-1%
-3%
 Americas:
Production of light vehicles FY 15 vs FY 14 (IHS)
Sales growth (w/o FX effects) Schaeffler Automotive FY 15 vs FY 14
FY 14
FY 15

 Ramp-up Chrysler engine with UniAir system
Q4 14
Q4 15
(w/o FX
effects)

(w/o FX
effects)
Engine
Systems
2,266
2,585
14.1%
(6.1%)
592
648
9.5%
(4.1%)
Transmission
Systems
3,826
4,240
10.8%
(4.9%)
1,012
1,076
6.3%
(2.6%)
346
370
6.9%
(4.1%)
Chassis
Systems
1,360
1,468
7.9%
(3.3%)
Automotive
Aftermarket
1,534
1,700
10.8%
(9.9%)
366
388
6.0%
(7.0%)
Total
8,986
9,993
11.2%
(5.8%)
2,316
2,482
7.2%
(3.8%)
34
 Under-performance in FY 2015 as strong
demand for dual mass flywheels and ramp-up of
variable cam timers could not fully compensate
phase-out of two larger transmission contracts
 Change of a Japanese customer allocation from
Europe to Asia/Pacific
World production:
+1.0%
Schaeffler Automotive: +5.8%
(w/o FX effects)
in EUR mn
 Europe:
 Strong demand for torque converters and
launch of new repair kits in the Aftermarket
 Greater China:
 Strong recovery after temporary weakness in Q3
 High demand for torque converters, ramp-up of
wet double clutch at a German OEM
 Asia/Pacific:
 High demand for torque converters, ball screw
and wheel bearings
Schaeffler AG - Capital Market Presentation
Backup
Industrial division
Industrial Applications sales by sector cluster
New structure
8 sector clusters
vs. prev. year (w/o FX effects)
Wind
Industrial Aftermarket
Two-Wheelers
+
Wind
Aerospace
Offroad
Power Transmission
Industrial Distribution
Rail
10%
Raw Materials
Rail
Two-Wheelers
Industrial Automation
8%
7%
Aerospace
Industrial Automation
33%
37%
Offroad
63%
Power Transmission
-10%
-5%
+5%
+10%
+15%
Sales development Industrial
Industrial
Applications
Old structure
1,977

(w/o FX
effects)
2,051
3.7%
(-2.7%)
1,161
1,182
1.8%
(-4.0%)
Total
3,138
3,233
3.0%
(-3.2%)
Q4 14
Q4 15

(w/o FX
effects)
480
-1.6%
(-5.7%)
296
282
-4.7%
(-7.4%)
784
762
-2.8%
(-6.1%)
488
7%
5%
4%
14%
New structure1)
Key aspects

FY 15
Industrial
Aftermarket
35
Old structure
+20%
in EUR mn
FY 14
Industrial
Applications
13%
Raw Materials
-15%
67%
Industrial OEM business with mixed development across
sectors



Positive development in Wind, especially in China
Continuing weak market globally in Raw Materials,
especially Ming and Steel, Oil and Gas
Industrial Distribution:
 Weakness in North America as well as in Asia/Pacific,
mainly in Oil & Gas and Mining
1) Pro-forma 2015 numbers; Industrial Distribution does not include MRO sales
Schaeffler AG - Capital Market Presentation
Backup
Financial Result
Financial Result1)
Reconciliation Financial Result
in EUR mn
in EUR mn
-79
375
-196
EUR -72 mn
vs FY 2014
547
272
Non-cash
valuation
effects loans /
bonds
12M
2015
176
as reported
161
125
122
100
85
22
547
619
Q1
Q2
Q3
2014
Q4
Q1
Q2
Q3
Q4
2015
1) For presentation purposes negative results are shown as positive figures
2) Including non-cash valuation effects of EUR 77 mn from refinancing
transactions in 2014
36
One-off
effects
refinancing
2015
12M 2015
excl. one-offs and
valuation effects
12M 14
12M 15

Q4 14
Q4 15

Cash interest
266
255
-11
85
83
-2
Accrued interest
54
41
-13
-6
-18
-12
Other
100
-24
-124
3
-8
-11
420
272
-148
82
57
-25
-22
79
101
-46
26
72
2212)
196
-25
-14
2
16
619
547
-72
22
85
63
in EUR mn
Financial Result
excl. one-offs and
valuation effects
Non-cash valuation
effects
One-off effects
refinancing
Reported Financial
Result
Schaeffler AG - Capital Market Presentation
Backup
Working Capital and Capex
Working capital
Capex2)
in EUR mn
in EUR mn
2,696
2,778
3,022
2,900
357
2,944
2,880
2,548
2,662
282
244
257
242
202
155
143
857
Q1
Q2
Q3
Q4
Q1
Q2
2014
Q3
Q4
Q2
Q3
Q1
Q2
Q3
Q4
2015
In % of sales
24.0
24.6
21.0
21.0
24.2
22.0
22.9
20.1
5.2
4.7
20.1
6.7
7.1
2) Cash view
37
Q4
2014
2015
In % of sales
23.6
Q1
1,025
Schaeffler AG - Capital Market Presentation
11.5
7.3
7.6
7.4
7.7
8.7
Backup
Overview on current corporate and financing structure
Corporate structure (as of April 5, 2016)
TopCo
Financing structure (as of December 31, 2015)
INA-Holding Schaeffler
GmbH & Co. KG
Schaeffler Holding
(HoldCo)
100%
Schaeffler
Verwaltungs
GmbH
Loans
HoldCo
Schaeffler
Holding
Finance B.V.
Bonds
100%
Schaeffler
Verwaltung Zwei
GmbH
OpCo
Loans
OpCo
Bonds
Schaeffler AG
Schaeffler
Finance B.V.
Free
float
36.0%
10.0%
54.0%
Continental AG
Schaeffler
Technologies
AG & Co. KG
1) Loan note receivables of EUR 1,773m secured by share pledges over 23,250,361 Continental AG
shares
38
E+4.25%
Oct-20
Not rated
-
E+4.25%
Oct-20
Not rated
6.875% SSNs 2018 (EUR)3)
800
6.875%
Aug-18
Ba3 / B
6.875% SSNs 2018 (USD)3)
1.000
6.875%
Aug-18
Ba3 / B
6.25% SSNs 2019 (USD)3)
475
6.25%
Nov-19
Ba3 / B
5.75% SSNs 2021 (EUR)3)
350
5.75%
Nov-21
Ba3 / B
6.75% SSNs 2022 (USD)3)
675
6.75%
Nov-22
Ba3 / B
OpCo Term Loan B (EUR)
250
E4)+3.50%
May-20
Ba2 /BB-
OpCo Term Loan B (USD)
440
L4)+3.50%
May-20
Ba2 /BB-
-
E+2.6875%
Oct-19
Not rated
HoldCo RCF (EUR 200 mn)
HoldCo Bonds:
OpCo Bonds:
Schaeffler Group
(OpCo)
OpCo
75.1%
5002)
OpCo RCF (EUR 1,000 mn)
Loan note
receivables1)
24.9%
Rating
OpCo Loans:
100%
Free
float
Maturity
HoldCo Term Loan (EUR)
Schaeffler Holding
GmbH & Co. KG
HoldCo
Interest
HoldCo Loans:
100%
HoldCo
Nominal
(mn)
Debt instrument
4.25% SSNs 2018 (EUR)
600
4.25%
May-18
Ba2 / BB-
2.75% SSNs 2019 (EUR)
500
2.75%
May-19
Ba2 / BB-
3.25% Unsec.Ns 2019 (EUR)
500
3.25%
May-19
B1 / B
2.50% SSNs 2020 (EUR)
400
2.50%
May-20
Ba2 / BB-
4.75% SSNs 2021 (USD)
850
4.75%
May-21
Ba2 / BB-
4.25% SSNs 2021 (USD)
700
4.25%
May-21
Ba2 / BB-
3.50% SSNs 2022 (EUR)
500
3.50%
May-22
Ba2 / BB-
4.75% SSNs 2023 (USD)
600
4.75%
May-23
Ba2 / BB-
3.25% SSNs 2025 (EUR)
600
3.25%
May-25
Ba2 / BB-
2) Up to EUR 600 mn
3) Senior Secured PIK Toggle Notes
4) Floor of 0.75 %
Schaeffler AG - Capital Market Presentation