Results H1 2013
Schaeffler Group
Klaus Rosenfeld, CFO
Herzogenaurach
August 28, 2013
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 forwardlooking 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 and audit.
Page 2
Schaeffler
Results H1 2013
August 28, 2013
Agenda
Overview
Results H1 2013
Financing and Capital Structure
Outlook
Page 3
Schaeffler
Results H1 2013
August 28, 2013
1 Overview
Strong Automotive business drives H1 2013 results
H1 2013 Group Sales with 5.6 billion Euro on prior year level
Automotive sales growth with 6.2% significantly above market
Industrial sales -13.5% due to challenging market conditions
Schaeffler eWheel Drive Concept Car
Superior earnings quality maintained; EBIT margin stable
at 12.9%
Free Cash Flow increased to 386 million Euro
Production of spherical roller bearings
Page 4
Successful 3.875 billion Euro refinancing of Schaeffler Holding
debt – placement of 1.5 billon Euro equivalent HoldCo bonds
Schaeffler
Results H1 2013
August 28, 2013
Agenda
Overview
Results H1 2013
Financing and Capital Structure
Outlook
Page 5
Schaeffler
Results H1 2013
August 28, 2013
2 Results H1 2013
Second quarter with positive sales and cash flow trends
H1 2013
H1 2012
Q2 2013
Q2 2012
in EUR mn
in EUR mn
in EUR mn / %
in EUR mn
in EUR mn
in EUR mn / %
Sales
5,614
5,652
-0.7%
2,858
2,794
+2.3%
EBITDA
1,042
1,079
-3.4%
530
530
0.0%
EBITDA margin
18.6
19.1
-0.5%pts.
18.5
19.0
-0.5%pts.
EBIT
724
780
-7.2%
369
379
-2.6%
EBIT margin
12.9
13.8
-0.9%pts.
12.9
13.6
-0.7%pts.
Net income1)
561
504
+11.3%
328
269
+21.9%
Free cash flow
386
30
+356 mn
334
137
+197 mn
Leverage ratio2)
3.1x
3.2x
-0.1x
3.1x
3.2x
-0.1x
1) Attributable to shareholders of the parent company; prior year amount restated for initial application of net interest approach required by IAS 19 (rev. 2011)
2) Excluding shareholder loans
Page 6
Schaeffler
Results H1 2013
August 28, 2013
2 Results H1 2013
Group sales slightly down by 0.7%
Sales
H1 2013 sales by region1)
in EUR mn
in EUR mn and y-o-y growth
-0.7%
Asia/Pacific
vs. H1 2012
2,697 2,682 2,703
2,612
2,858 2,794
2,770 2,703
1,253 / -0.1%
2,756
22%
2,858
South America
273 / -2.2%
5%
57%
Europe
3,181 / -1.9%
16%
North America
907 / +3.7%
10,694
5,614
11,125
Sales by division
Q1
Q2
Q3
Q4
Q1
Q2
30% 31% 28%
31%
30%
Q4
Q2
Q1
2012
2013
31% 30% 31% 27%
29% 29%
2011
Gross
profit 32%
margin
Q3
30%
29%
in EUR mn
29%
H1 2013
H1 2012
Automotive
4,076
3,837
+6.2%
Industrial
1,538
1,778
-13.5%
Total
5,614
5,652
-0.7%
1) Market view (= location of customers)
Page 7
Schaeffler
Results H1 2013
August 28, 2013
2 Results H1 2013
Strong growth in Automotive – Industrial sales stabilizing
Sales Industrial
Sales Automotive
in EUR mn
in EUR mn
+6.2%
vs. H1 2012
1,821
1,933 1,904 1,918 1,903
1,988 2,088
1,768 1,814 1,754
-13.5%
vs. H1 2012
856
7,658
7,157
Q1
Q2
Q3
Q4
Q1
Q2
Gross
profit
29%
margin
27% 28% 25%
28%
Page 8
4,076
Q3
Q4
2012
2011
26%
Q1
Q2
28%
27% 28%
Q1
870
854
Q2
Gross
profit 39% 36%
margin
Results H1 2013
38%
August 28, 2013
839
788
3,405
Q3
Q4
Q1
Q2
38% 35%
36%
768
770
1,538
Q3
Q4
Q1
Q2
2012
2013
39% 36% 36% 28%
33% 32%
2011
27%
Schaeffler
908
876
3,463
2013
28% 28% 29% 26%
28%
877
37%
32%
33%
2 Results H1 2013
Automotive – Sales growth strongly outpacing market growth
Regional development Automotive1)
Key aspects
Europe
Asia/Pacific
+13%
4%
Positive development in all regions except for
South America
+3%
Sales in Europe a.o. driven by non-European
demand and strong aftermarket business
-6%
Positive development of fully variable valve
control systems (MultiAir) in North America
World Production:
+1%
Schaeffler Automotive: +6%
North America
South America
+16%
Production of light vehicles
H1 2013 vs. H1 2012
(IHS Global Insight)
Various start- and ramp-ups for Chinese
customers
Strong operational growth (+12%) in South
America negatively impacted by FX effects
+9%
3%
Schaeffler Automotive significantly outgrew global
automotive production in H1 2013
3%
General growth trend is supported by both
established (e.g. dry double clutches) and
innovative products (e.g. electromechanical
parking brakes)
Sales growth
Schaeffler Automotive
H1 2013 vs. H1 2012
(by location of customer)
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 in
Europe who ultimately export the final product to customer locations in North and South America as well as Asia/Pacific).
Page 9
Schaeffler
Results H1 2013
August 28, 2013
2 Results H1 2013
Industrial – Challenging market conditions remain
Key aspects
Sales of key industrial business units
Other ~15%
Production Machinery
Aftermarket: Inventory reductions of dealers led
to significant sales decrease, especially in
Asia/Pacific
Power Transmission
Renewable Energies
Off-Highway Equip.
Industrial
Aftermarket ~40%
Sales decreased in all sectors apart from
Heavy Industries and Aerospace
Production Machinery: Strong competition from
Japanese competitors for machine tools,
structural shift in printing machinery sector
Aerospace
Heavy Industries
Renewable Energies: Overcapacities and pricing
competition remain in all regions
Sales H1 2013 vs. H1 2012
Power Transmission: Significant cool-down of
demand, especially in Asia/Pacific and Europe
Aftermarket
Off-Highway Equipment: Decrease in both
construction and agricultural machinery
Production Machinery
Renewable Energies
Power Transmission
Off-Highway Equipment
Heavy Industries
Outlook: Positive order intake hints at slight
business improvement over the next quarters;
however, no major turnaround in underlying
demand expected
Aerospace
Page 10
Schaeffler
Results H1 2013
August 28, 2013
2 Results H1 2013
EBIT margin stable at 12.9%
EBIT
EBIT
in EUR mn
in EUR mn
780
+37
-38
-56 mn
vs. H1 2012
472
+4
-68
-6
COGS
R&D
724
+15
466
411
401
379
364
369
355
340
269
EBIT
Sales
H1 2012
EBIT
margin
1,689
Q1
Q2
Q4
Q1
Q2
Q3
Q4
2012
2011
Q1
Q2
2013
EBIT margin
17.5% 15.3% 17.2% 13.0%
16.4%
Page 11
15.2%
14.0%
13.6% 13.1% 10.0%
13.8%
Admin
Other
-0.9%pts.
EBIT
H1 2013
12.9%
724
1,413
Q3
13.8%
Selling
11.6%
12.9% 12.9%
12.9%
Schaeffler
Results H1 2013
Sales
-0.6%pts.
+6.2% Auto; -13.5% Industrial
COGS
-1.2%pts.
Residual fixed costs in Industrial
R&D
-0.1%pts.
5.3% of sales
Selling
+0.0%pts.
In line with lower sales volume
Admin
+0.3%pts.
Transaction one-offs in Q1 2012
Other
+0.7%pts.
Mainly positive FX effects
August 28, 2013
2 Results H1 2013
Automotive EBIT strong – Industrial EBIT weak
EBIT Automotive
EBIT Industrial
in Mio. EUR
in Mio. EUR
+76 mn
vs. H1 2012
301
302
294
262
244
259
277
260
234
217
-132 mn
171
172
vs. H1 2012
157
149
123
120
104
78
1,074
Q1
Q2
997
Q3
Q4
Q1
Q2
2011
Q3
Q4
2012
Q1
Q2
Q2
416
Q3
Q4
Q1
Q2
2011
Q3
35
Q4
145
Q1
Q2
2012
2013
17.3% 13.8% 12.4% 4.4%
10.2% 8.7%
EBIT margin
16.5% 14.8% 16.2% 12.4%
Page 12
Q1
2013
EBIT margin
15.7%
615
579
67
14.3%
12.6% 13.6% 13.6% 12.3%
13.1%
12.9%
14.0% 14.5%
14.2%
Schaeffler
Results H1 2013
20.0% 17.0% 19.6% 14.4%
18.5%
August 28, 2013
17.1%
15.6%
8.5%
9.4%
2 Results H1 2013
Net income EUR 561 million
Net income H1 2013¹)
Net income¹)
in EUR mn
in EUR mn
5,614
438
363
328
724
-4,890
269
561
235
-216
146
-310
233
225
203
140
102
1
Sales
Costs
EBIT
Financial
result
2
889
Taxes/
Investment
minorities
result
Net
income
Q1
Q2
Q3
2011
1) Net income attributable to the shareholders of the parent company; comparative
amounts have been adjusted in connection with the initial application of IAS 19
(rev. 2011)
Page 13
Schaeffler
Results H1 2013
August 28, 2013
869
Q4
Q1
Q2
Q3
2012
561
Q4
Q1
Q2
2013
2 Results H1 2013
1
Financial result minus EUR 310 million
Financial result¹)
Composition of financial result¹)
in EUR mn
in EUR mn
40
310
Interest expenses financial debt
27
287
269
31
231
214
218
211
174
74
177
167
143
118
132
1
Q1
733
23
310
680
63
Q2
Q3
2011
Q4
Q1
Q2
Q3
2012
Q4
Q1
Non-Cash
Q2
2013
Financial Fair value
changes
result
and FX
(P&L)
effects
1) For presentation purposes negative results are shown as positive figures
Page 14
Schaeffler
Results H1 2013
August 28, 2013
Cash
Cash Hedging Transaction
Others Transaction Accrued
Cash
interest financial interest
accrued
costs
costs / other
(mainly
result expenses
financial
pension
debt
expenses)
2 Results H1 2013
2
At equity result EUR 363 million
Net income Continental¹)
At equity result from Continental
in EUR mn
in EUR mn
2012
2013
Q1
Q2
Q3
Q4
FY
Q1
Q2
Net Income
Continental
483
520
449
432
Conti shares
(30/06/13: 36,14%)
174
189
162
PPA
-38
-40
0
136
H1
1,884
441
701 1,142
156
681
160
253
413
-38
-39
-155
-25
-25
-50
0
0
27
27
0
0
0
149
124
144
553
135
228
363
701
520
483
368
449
432
441
348
315
211
Other
1,242
Q1
Q2
Q3
Q4
Q1
EBIT1) 634
647
7,714 7,912
636
Q2
Q3
Q4
2012
2011
Sales 7,346 7,533
1,142
1,884
680
8,320
8,187
766
843
Q1
At Equity Result
Q2
2013
8,134 8,096
745
720
8,033 8,541
747
883
1) 2012 before adjustments in connection with the initial application of IAS 19 (rev. 2011)
Page 15
Schaeffler
Results H1 2013
August 28, 2013
2 Results H1 2013
Free cash flow EUR 386 million
EBITDA
Free cash flow H1 2013
in EUR mn
in EUR mn
334
259
137
92
52
80
162
-107
613
1,042
605
549
552
530
520
512
473
Q1
530
Q2
Q3
2012
Q1
Q4
Q2
2013
162
-157
432
-229
-287
386
-145
Q1
Q2
Q3
1,042
2,031
2,243
Q4
Q1
Q2
Q3
Q4
2012
2011
Q1
Q2
EBITDA
Net
working
capital
Capex
Dividends
530
-43
-108
162
2013
Interest Taxes/
payments other
Free
cash
flow
EBITDA margin in %
22.7
20.6
22.4
18.1
19.2
19.0
18.8
16.0
2,285
2,243
2,179
2,157
2,072
2,031
18.6% 18.5%
Q2
2013
LTM EBITDA
2,226
Page 16
2,225
1,994
Schaeffler
1,994
Results H1 2013
August 28, 2013
-99
-108
334
2 Results H1 2013
Working capital efficiency improved – Capex adjusted to market needs
Working Capital
Capex spent2)
in EUR mn
in EUR mn
2,547 2,562
2,667
2,642
2,723 2,677
259
2,616 2,613
2,432
2,411
250
222
206
200
188
188
121
120
108
773
Q1
Q2
Q3
Q4
Q1
24.8
25.2
22.5
1) Calculation based on LTM sales
Page 17
Q3
Q4
2012
2011
in % 25.4
of
sales1)
Q2
24.3
24.8
24.3
Q1
Q1
Q2
Q2
21.9
23.7
23.6
Q3
in %
of
sales
4.4
7.0
7.6
7.2%
Inventories
Schaeffler
Q4
Q1
2) Cash view
Results H1 2013
August 28, 2013
Q2
Q3
Q4
2012
2011
2013
229
860
9.9
8.7
7.9
7.2
7.7%
Q1
Q2
2013
7.0
4.4
3.8
4.1%
2 Results H1 2013
Net financial debt reduced by EUR 619 million
Net financial debt / Leverage ratio¹)
Available funds
in EUR mn
in EUR mn
-619 mn
vs. H1 2012
7,145 7,088
7,164 7,094 6,940 6,828
6,834
6,475
6,124 6,069
1,503
1,376
1,243
1,049
2.9x
2.7x 2.7x
16
6
3.2x
3.2x
3.2x 3.2x
3.3x
420
280
266
242
323
301
343
Q1
Q2
Q3
Q4
Q1
Q2
600
Q2
Q1
3.0x
Q3
Q4
2012
2011
Gross 6,482 6,422 7,645 7,485
debt
Cash
358
position
353
500
397
7,455 7,412
291
318
298
433
Leverage ratio (Net financial debt / LTM EBITDA)
1,093
7,292
7,037
458
562
Shareholder loans
Q1
Q2
Q3
Schaeffler
Results H1 2013
Q4
Q1
2011
Q2
1,244
Cash and cash equivalents
August 28, 2013
Q3
2012
Revolving Facility and Ancillary Lines
1) Excluding shareholder loans
Page 18
1,141 1,165
3.1x
2013
7,238 7,261
1,140
1,401
Q4
Q1
Q2
2013
Agenda
Overview
Results H1 2013
Financing and Capital Structure
Outlook
Page 19
Schaeffler
Results H1 2013
August 28, 2013
3 Financing and capital structure
Overview corporate and capital structure
Chart simplified
for illustration
purposes
Corporate structure
Capital structure
Debt instrument
Schaeffler Holding
Schaeffler
Holding
Schaeffler Holding
6.875% SSNs 2018 (EUR)1)
100%
Schaeffler
Verwaltungs
GmbH
Junior
Term Loans
Junior RCF
HoldCo
Bonds
100%
S Holding
Finance B.V.
100%
100%
Senior
Term Loans
RCF
Schaeffler
NewCo
100%
Senior
Bonds
Schaeffler
Finance B.V.
36.1%
50.1%
Continental AG
100%
Schaeffler
Technologies
AG & Co. KG
Total
6.875%
Aug 18
B2 / B-
6.875%
Aug 18
B2 / B-
Junior Term Loan B1
1,200
Junior Term Loan B2
450
Junior Term Loan B3
525 E+1.25% + 5.25% PIK
Schaeffler
Results H1 2013
-
Schaeffler Holding Debt
3,744
Senior Term Loan D
1,204
E+5.75%
Jun-17
Not rated
8.50% PIK
Jun-17
Not rated
Jun-17
Not rated
E+5.75%
Jun-17
Not rated
E+3.25%
E+3.75%
Jul 16
Not rated
2)
Jan 17
Ba3 / B+
Senior Term Loan C EUR
625
Senior Term Loan C USD
~1,308
L+3.25%2)
Jan 17
Ba3 / B+
-
E+3.25%
Jul 16
Not rated
Ba3 / B+
3,136
6.75% SSNs 2017 (EUR)
326
6.75%
Jul-17
7.75% SSNs 2017 (EUR)
800
7.75%
Feb-17
Ba3 / B+
7.75% SSNs 2017 (USD)3)
~462
7.75%
Feb-17
Ba3 / B+
4.25% SSNs 2018 (EUR)
600
4.25%
May-18
Ba3 / B+
8.75% SSNs 2019 (EUR)
400
8.75%
Feb-19
Ba3 / B+
8.50% SSNs 2019 (USD) 3)
~385
8.50%
Feb-19
Ba3 / B+
4.75% SSNs 2021 (USD) 3)
~654
4.75%
May-21
Ba3 / B+
Total Outstanding Bonds
3,626
Schaeffler Group Debt
6,762
Total Debt
1) Senior Secured PIK Toggle Notes
Page 20
Rating
800
Total Senior Facilities
Schaeffler Group
Free
float
Schaeffler AG
Maturity
~769
Senior RCF (EUR 1,000 mn)
Schaeffler Group
Interest
6.875% SSNs 2018 (USD)1) 3)
Junior RCF (200mn)
13.8%
August
28, 2013
August 28, 2013
10,506
2) Floor of 1.00%
3) Assuming EUR/USD = 1.30
3 Financing and capital structure
Strong ability to pay cash interest at Holding level
Chart simplified
for illustration
purposes
New structure
Schaeffler Holding
Key aspects
Solid cash flow generation on Schaeffler Group
level to make upstream payments to Schaeffler
Holding (FCF in H1 2013: EUR 386 mn)
Schaeffler
Holding
GmbH & Co. KG
Sufficient Restricted Payment Basket to serve
Holding cash needs for permitted uses
100%
HoldCo
Debt Service
Schaeffler
Verwaltungs
GmbH
13.8%
100%
YTD
06/13
381
386
In addition, Conti dividend from 13.8% stake
(27.6 mn shares) at Holding level
Conti
Dividend
2012
Free Cash Flow
1)
OpCo RPB
Permitted HoldCo Purposes
3)
Cash to HoldCo
2)
210
90
89
4)
245
39
0
Additional upfront EUR 50 mn Cash Interest
Reserve Account established in July 2013
(to be replenished by future Conti dividends)
First two installments payable in 2014 of
Schaeffler Holding Bonds must be paid entirely
in cash
Upstream
Cash
Payment
Schaeffler Group
Schaeffler AG
Continental AG
1) RPB = Annual Restricted Payment Basket
2) Permitted purposes are administration cost, interest and taxes
4) Excluding withholding tax on Schaeffler AG dividend of EUR 79 mn
Page 21
Schaeffler
Results H1 2013
August 28, 2013
3) Cash upstreamed to HoldCo under permitted purposes
Agenda
Overview
Results H1 2013
Financing and Capital Structure
Outlook
Page 22
Schaeffler
Results H1 2013
August 28, 2013
4 Outlook
Sales guidance reduced – Profitability targets unchanged
Growth
Profitability
Target 2013
Target 2013
New guidance:
~ 1-2 %
Sales growth
~4%
EBIT margin
~13 %
Capex
5-7 % of sales
Free cash flow
Sustainably positive
Quality
Innovation
Target 2013
Target 2013
Quality policy
Employees
Page 23
Further improve
~ 2,000 new jobs
Schaeffler
Results H1 2013
R&D expenses
~ 5 % of sales
Innovation
Maintain leading
position in patent
applications
August 28, 2013
Schaeffler IR contact
Investor Relations
Financial Calendar 2013
phone: + 49 9132 82 4440
fax:
+ 49 9132 82 4444
ir@schaeffler.com
www.schaeffler-group.com/ir
Q2 2013 results: August 28, 2013
Q3 2013 results: November 19, 2013
Q4 2013 results: March 20, 2014
Backup
Consolidated income statement
1 st six months
2 nd quarter
in € m illions
Revenue
Cost of sales
2013
5,614
-4,001
2012
5,652
-3,933
Change in %
-0.7
1.7
1,613
1,719
-6.2
822
834
Change in %
2.3
3.9
-1.4
Research and development expenses
Selling expenses
Administrative expenses
Other income
Other expenses
Earnings before financial result, share of net income of
equity-accounted investees, and income taxes (EBIT)
Gross profit
-300
-378
-226
35
-20
-294
-382
-241
17
-39
2.0
-1.0
-6.2
> 100
-48.7
-148
-190
-113
11
-13
-147
-191
-114
7
-10
0.7
-0.5
-0.9
57.1
30.0
724
780
-7.2
369
379
-2.6
Financial income 1)
Financial expense 1)
23
-333
19
-404
21.1
-17.6
-28
-115
-6
-168
Financial result 1)
Share of net income of equity-accounted investees
-310
-385
-19.5
-143
-174
> 100
-31.5
-17.8
363
777
286
681
26.9
14.1
228
454
150
355
52.0
27.9
-212
-170
24.7
-123
-82
50.0
565
511
10.6
331
273
21.2
561
504
11.3
328
269
21.9
4
7
-42.9
3
4
-25.0
Earnings before income taxes
1)
Income taxes
Net income
1)
Attributable to shareholders of the parent company
1)
Attributable to non-controlling interests
1)
Prior year amounts restated for initial application of IAS 19 (rev. 2011), see condensed notes to consolidated
interim financial statements for details.
Page 25
Schaeffler
Results H1 2013
August 28, 2013
2013
2,858
-2,036
2012
2,794
-1,960
Backup
Consolidated statement of financial position – Assets
in € millions
ASSETS
Intangible assets
Property, plant and equipment
Investments in equity-accounted investees
Other investments
Other assets
Income tax receivables
Deferred tax assets
Total non-current assets
12/31/2012
546
3,385
5,367
14
132
16
399
9,859
554
3,515
5,040
14
150
17
364
9,654
556
3,510
5,067
14
109
18
384
9,658
-1.4
-3.7
6.5
0.0
-12.0
-5.9
9.6
2.1
1,536
1,864
228
61
562
4,251
1,495
1,626
231
107
433
3,892
1,653
1,876
198
103
318
4,148
2.7
14.6
-1.3
-43.0
29.8
9.2
14,110
13,546
13,806
4.2
Inventories
Trade receivables
Other assets
Income tax receivables
Cash and cash equivalents
Total current assets
Total assets
1)
Page 26
June 30, 2013 compared to December 31, 2012.
Schaeffler
Results H1 2013
August 28, 2013
06/30/2012 Change in %
1)
06/30/2013
Backup
Consolidated statement of financial position – Liabilities
in € millions
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital
12/31/2012
500
2,338
-571
500
2,027
-479
500
1,530
-222
0.0
15.3
19.2
2,267
2,048
1,808
10.7
58
2,325
60
2,108
57
1,865
-3.3
10.3
Provisions
Financial debt
Income tax payables
Other liabilities
Deferred tax liabilities
Total non-current liabilities
1,525
55
6,739
324
76
191
8,910
1,553
75
7,140
267
240
119
9,394
1,391
73
6,869
204
298
102
8,937
-1.8
-26.7
-5.6
21.3
-68.3
60.5
-5.2
Provisions
Financial debt
Trade payables
Income tax payables
Other liabilities
Total current liabilities
238
298
924
165
1,250
2,875
223
121
794
232
674
2,044
193
543
930
195
1,143
3,004
6.7
> 100
16.4
-28.9
85.5
40.7
14,110
13,546
13,806
4.2
Reserves 2)
Accumulated other comprehensive income (loss) 2)
Equity attributable to shareholders of the parent
company
Non-controlling interests
Total shareholders' equity
Provisions for pensions and similar obligations
2)
Total shareholders' equity and liabilities
1)
06/30/2012 Change in %
June 30, 2013 compared to December 31, 2012.
Prior year amounts restated for initial application of IAS 19 (rev. 2011), see condensed notes to consolidated interim financial statements for
details.
2)
Page 27
1)
06/30/2013
Schaeffler
Results H1 2013
August 28, 2013
Backup
Consolidated statement of cash flows – Operating cash flow
1st six months
in € millions
Operating activities
EBIT
Interest paid
Interest received
Income taxes paid
Dividends received
Depreciation, amortization and impairments
Gains (losses) on disposal of assets
Other non-cash items
Changes in:
• Inventories
• Trade receivables
• Trade payables
• Provisions for pensions and similar obligations
• Other assets, liabilities and provisions
Cash flows from operating activities 1)
1)
Page 28
2nd quarter
2013
2012 Change in %
2013
2012 Change in %
724
-290
3
-153
162
318
0
-14
780
-259
4
-132
80
299
0
-30
-7.2
12.0
-25.0
15.9
> 100
6.4
0.0
-53.3
369
-100
1
-95
162
161
0
-4
379
-93
2
-78
80
151
1
-11
-2.6
7.5
-50.0
21.8
> 100
6.6
-100
-63.6
-60
-259
162
-12
25
606
-78
-252
67
-33
49
495
-23.1
2.8
> 100
-63.6
-49.0
22.4
-31
-48
36
-3
-14
434
-24
38
-54
-25
-8
358
29.2
-88.0
75.0
21.2
Excluding interest payments, cash flow s from operating activities for the period from 01/01 to 06/30/2013 amount to EUR 896 m (prior year: EUR 754 m)
Schaeffler
Results H1 2013
August 28, 2013
Backup
Consolidated statement of cash flows – Investing and financing cash flow
1st six months
2013
2012 Change in %
in € millions
Investing activities
Proceeds from disposals of intangible assets and
property, plant and equipment
Capital expenditures on intangible assets
Capital expenditures on property, plant and equipment
Investments in other financial investments
Other investing activities
Cash used in investing activities
4
8
-50.0
2
1
100
-8
-221
-2
7
-220
-20
-452
-1
0
-465
-60.0
-51.1
100
-52.7
-4
-104
-1
7
-100
-11
-211
0
1
-221
-63.6
-50.7
> 100
-54.8
-1
5
-278
0
26
-248
-1
170
-102
-13
-166
-112
0.0
-97.1
> 100
-100
> 100
-1
4
-264
0
44
-217
-1
0
-91
0
-22
-114
0.0
> 100
0.0
90.4
138
-82
-
117
23
> 100
-9
3
-
-13
4
-
Cash and cash equivalents as at beginning of period
433
397
9.1
458
291
57.4
Cash and cash equivalents as at end of period
562
318
76.7
562
318
76.7
Financing activities
Dividends paid to non-controlling interests
Receipts from loans
Repayments of loans
Acquisitions in stages
Other financing activities 2)
Cash used in financing activities
Net increase (decrease) in cash and cash
equivalents
Effects of foreign exchange rate changes on cash and
cash equivalents
2)
Page 29
2nd quarter
2013
2012 Change in %
Including payments to the shareholder, Schaeffler Verw altungs GmbH, of EUR m nil (prior year: EUR 165 m).
Schaeffler
Results H1 2013
August 28, 2013
Backup
Consolidated segment information
Automotive
st
in € millions
Revenue
Cost of sales
Gross profit
EBIT
- in % of revenue
Depreciation, amortization and impairments
Inventories 3)
Trade receivables 3)
Property, plant and equipment 3)
Additions to intangible assets and property, plant and equipment
Industrial
st
1 six months 1 six months
2013 2012 2013 2012
4,076 3,837 1,538 1,778
-2,963 -2,781 -1,038 -1,115
1,113 1,056
500
663
579
503
145
277
14.2
13.1
9.4
15.6
-224
-208
-94
-91
898
920
638
733
1,353 1,288
511
588
2,372 2,413 1,013 1,097
161
339
43
120
Automotive
nd
in € millions
Revenue
Cost of sales
Gross profit
EBIT
- in % of revenue
Depreciation, amortization and impairments
Inventories 3)
Trade receivables 3)
Property, plant and equipment 3)
Additions to intangible assets and property, plant and equipment
2 quarter
2013 2012
2,088 1,904
-1,511 -1,380
577
524
302
259
14.5
13.6
-113
-106
898
920
1,353 1,288
2,372 2,413
82
162
nd
2 quarter
2013 2012
770
870
-525
-560
245
310
67
120
8.7
13.8
-48
-45
638
733
511
588
1,013 1,097
19
62
2)
Prior year information based on 2013 segment structure.
Other revenues not attributable to a segment.
3)
Schaeffler
Results H1 2013
1 six months
2013
2012
0
37
0
-37
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Industrial
1)
Page 30
Other
August 28, 2013
Total
st
st
1)
2)
1 six months
2013 2012
5,614 5,652
-4,001 -3,933
1,613 1,719
724
780
12.9
13.8
-318
-299
1,536 1,653
1,864 1,876
3,385 3,510
204
459
Other
nd
2
2013
0
0
0
0
0
0
0
0
0
quarter
2012
20
-20
0
0
0
0
0
0
0
Total
nd
1)
2)
2 quarter
2013 2012
2,858 2,794
-2,036 -1,960
822
834
369
379
12.9
13.6
-161
-151
1,536 1,653
1,864 1,876
3,385 3,510
101
224
Other cost of sales not attributable to a segment.
Amounts as at June 30.
Backup
Summary Q1 2012 – Q2 2013
Q1
Q2
Q3
2012
Q4
2,858
549
19.2
401
14.0
235
2,794
530
19.0
379
13.6
269
2,770
520
18.8
364
13.1
225
2,703
432
16.0
269
10.0
140
2,756
512
18.6
355
12.9
233
2,858
530
18.5
369
12.9
328
13,449
1,617
12.0
6,884
3.2
13,806
1,865
13.5
6,828
3.2
13,936
2,060
14.8
6,698
3.2
13,546
2,108
15.6
6,505
3.2
13,960
2,110
15.1
6,533
3.3
14,110
2,325
16.5
6,132
3.1
235
224
199
169
103
101
-107
137
92
259
52
334
74,948
75,868
76,656
76,099
76,186
76,840
in € millions
Income statement
Revenue
EBITDA
- in % of revenue
EBIT
- in % of revenue
Net income 1)
Statement of financial position
Total assets
Shareholders' equity
- in % of total assets
2)
Net financial debt 3)
- Net financial debt to EBITDA ratio 4)
Additions to intangible assets and
property, plant and equipment 5)
Q1
2013
Q2
Statement of cash flows
Free cash flow 6)
Employees
Headcount (at end of reporting period)
1)
Attributable to shareholders of the parent company; comparative amounts restated for initial application of IAS 19 (rev. 2011),
see condensed notes to consolidated interim financial statements for details.
Page 31
2)
Including non-controlling interests.
3)
Excluding shareholder loans.
4)
EBITDA based on the last tw elve months.
5)
Additions to intangible assets and property, plant and equipment f or the quarter.
6)
Free cash flow for the quarter.
Schaeffler
Results H1 2013
August 28, 2013
Backup
Overview Senior Financing
Maturity profile1)
Key aspects
in EUR mn
Balanced financing mix of bank loans, institutional
loans and bonds (approx. 50% loans and 50% high
yield bonds)
7.0
Senior
Term Loan D
~€1.2 bn –
3 years
TL A
6.0
Strong banking syndicate with ten international
renowned banks
E+3.25%
SFA
5.0
4.0
3.0
Institutional Loan C (EUR/USD)
+3.75%
~€1.9 bn – 5 years
L-Floor2)
+3.25%
HY Bond 2017 (EUR/USD)
~€1.3 bn – 5 years
Staggered maturity profile with maturities up to 2021
7.75% EUR
7.75% USD
HY Retail Bond ~€0.3 bn – 5 y 6.75% EUR
2.0
HY Bond 2019 (EUR/USD) ~€0.8 bn – 7y
1.0
Cost of debt significantly improved to around 6%
E-Floor2)
TL A
B+
B+
Moody's corporate rating:
Moody's issue rating:
B1
Ba3
4.25% EUR
4.75% USD
HY Bonds ~€1.25 bn – 5 and 8 years
TL B1
HY-Bonds
8.75% EUR
8.50% USD
S&P corporate rating:
S&P issue rating:
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
1) Without Revolving Credit Facility of EUR 1.0 billion
2) Euribor-Floor and Libor-Floor 1.00%
Page 32
Schaeffler
Results H1 2013
August 28, 2013
Backup
Useful links and references
Schaeffler Investor
Relations website
http://www.schaeffler-group.com/content.schaefflergroup.de/en/investorrelations/IR.jsp
Annual and
interim reports
http://www.schaefflergroup.com/content.schaefflergroup.de/en/investorrelations/newsir/reports/report_2013.jsp
Investor Relations news
and publications
http://www.schaefflergroup.com/content.schaefflergroup.de/en/investorrelations/newsir/irreleases/News.jsp
Schaeffler press
releases
http://www.schaeffler-group.com/content.schaefflergroup.de/en/press/press-releases/press-releases.jsp
Sustainability at
Schaeffler
http://www.schaeffler-group.com/content.schaefflergroup.de/en/mediathek/library/library-detaillanguage.jsp?id=3448715
Schaeffler FAQ
http://www.schaeffler-group.com/content.schaefflergroup.de/en/investorrelations/faq/faq.jsp
Page 33
Schaeffler
Results H1 2013
August 28, 2013