IR Presentation, July 2020 - Bernhard Wiehl, CFO - Autoneum. Mastering sound and heat.
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Bernhard Wiehl, CFO IR Presentation, July 2020 Autoneum. Mastering sound and heat.
Agenda 1. About Autoneum 2. Results Half-Year 2020 3. Outlook 2020 4. Technology trends IR-Presentation 2020-07 2
About Autoneum
At a glance
2019 in
review
Stock-listed company Represented in 25 Acoustic expertise for 3 customer awards for
(SIX Swiss Exchange) countries half a century in Canada Argentinian plant
Around
13000
employees worldwide 55 production facilities Innovations for e-cars: Online configurator
worldwide Alpha-Liner and Acoustic Garage
Hybrid-Acoustics PET
IR-Presentation 2020-07 3
Strategic orientation
Focus on future mobility
Strategic priorities
Strategic focus areas
IR-Presentation 2020-07 4
Organization
Group Executive Board
Matthias Bernhard Wiehl Dr Alexandra Greg Sibley Andreas Kolf Fausto Bigi
Holzammer Bendler
CEO CFO Head Head Head Head
BG Europe BG North America BG Asia BG SAMEA
IR-Presentation 2020-07 5
Leading in acoustic and heat management
Our products
Engine bay Body treatment
• Engine encapsulations • Dampers
• Hoodliners and outer • Stiffeners
dashes
• Engine and battery
covers
Interior floor
• Inner dashes
Underbody • Floor insulators
• Underbody shields • Tufted carpets
• Wheelhouse outer • Needlepunch carpets
liners • Floor mats
• Battery pans • Spacers and crash
• Heatshields pads
IR-Presentation 2020-07 6
Global footprint
Present in all automotive markets
Europe
Autoneum
Locations with minority shareholders
Belgium France Italy Sweden Associated companies and investments
⋅ Genk ⋅ Aubergenville ⋅ Santhià ⋅ Gothenburg Licensees
⋅ Blainville
Czech Republic ⋅ Lachapelle-aux-Pots Poland Switzerland
⋅ Bor ⋅ Moissac ⋅ Katowice ⋅ Sevelen
⋅ Choceň ⋅ Ons-en-Bray ⋅ Nowogard ⋅ Winterthur (HQ)
⋅ Hnátnice
Germany Portugal United Kingdom
⋅ Munich ⋅ Setúbal ⋅ Halesowen
⋅ Rossdorf- ⋅ Heckmondwike
Gundernhausen Russia ⋅ Stoke-on-Trent
⋅ Sindelfingen ⋅ Ryazan
Hungary Spain
⋅ Komárom ⋅ A Rúa
⋅ Valldoreix
North America Asia
China India Malaysia
Canada USA
⋅ Changsha ⋅ Behror ⋅ Shah Alam
⋅ London, Ontario ⋅ Aiken, South Carolina
⋅ Chongqing ⋅ Chennai
⋅ Tillsonburg, Ontario ⋅ Bloomsburg, Pennsylvania
⋅ Pinghu South Korea
⋅ Jeffersonville, Indiana
⋅ Shanghai Indonesia ⋅ Seoul
Mexico ⋅ Novi, Michigan SAMEA ⋅ Shenyang ⋅ Jakarta
⋅ Hermosillo ⋅ Oregon, Ohio
⋅ Taicang Thailand
⋅ Mexico City ⋅ Jackson, Tennessee
⋅ Yantai Japan ⋅ Laem Chabang
⋅ San Luis Potosí ⋅ Monroe, Ohio Argentina South Africa ⋅ Guangzhou ⋅ Oguchi ⋅ Chonburi
⋅ Silao ⋅ Somerset, Kentucky ⋅ Córdoba ⋅ Rosslyn ⋅ Tianjin ⋅ Tokyo
⋅ Tinley Park, Illinois ⋅ Durban ⋅ Wuhan
⋅ Valparaiso, Indiana Brazil ⋅ Fuzhou
⋅ Gravataí Turkey
⋅ São Paulo ⋅ Bursa
⋅ Taubaté
IR-Presentation 2020-07 7
Customers Most car manufacturers worldwide Light vehicles Commercial vehicles IR-Presentation 2020-07 8
Facts and figures 2019
Key financials
Revenue by region (in %) Revenue by customer (in %)
2297.4
CHF million
Revenue
SAMEA 14
5 4
Asia 2 12
*
1.5% 12
Europe 5
2
2
EBIT margin 11
39
* Without one-time effects from impairment of fixed assets.
5
5
9
‒77.7 North America 6
44
6 7
6 7
CHF million
Net result
IR-Presentation 2020-07 9
2019 revenue split by product line
Interior floor with highest share of Group revenue
Interior floor Underbody Engine bay Body treatment Other
• Non-woven carpets • Underbody shields • Engine and body • Dampers/stiffeners • Trunk parts
• Tufted carpets • Floor pans mounted parts • Other acoustic parts • Interior trim parts
• Inner dashes • Heat shields • Engine top cover • Truck parts
• Floor insulator • Wheelhouse outer • Hoodliners
• Floor mats liners • Outer dashes
• Spacers/crash pads • Water box shields
BG Europe 18% 10% 5% 1% 3%
BG North America 33% 6% 4% - 3%
BG Asia 6% 2% 1% 1% 1%
BG SAMEA 3% 2% 1% - -
59% 21% 10% 2% 8%
IR-Presentation 2020-07 10Global cooperation
Proximity to customers
Research and Development Center / Regional acoustic Customer interface /
and Development Centers Customer Business Units Vehicle manufacturers
Product Management
Aubergenville, France
Katowice, Poland
Gundernhausen, Germany
Europe Sevelen, Switzerland
Winterthur, Switzerland
Novi (MI), USA
· Vehicle acoustics
· Thermal management North America
· Products/materials &
processes
· Benchmarking Shanghai, China
· Testbench Tokyo, Japan (ATN Auto Acoustics)
Asia
São Paulo, Brazil
SAMEA
IR-Presentation 2020-07 11Advance Sustainability Strategy 2025
Key achievements in 2019
More than 60
With its Advance Sustainability eco-efficiency projects:
Strategy 2025, Autoneum has
defined an ambitious set of Waste reduction
environmental, social and ethical
Energy consumption
targets
Water usage
Launch of three
130
innovations with a high community projects
sustainability performance implemented globally
IR-Presentation 2020-07 27
12About Autoneum
Did you know…?
Worth trying out: Acoustic Garage
750000 km
offers a billion combinations for Length of all Ultra-Silent fibers
Autoneum can be found in 8 of the ideal noise protection package produced per hour: enough to get
the 10 best-selling vehicle to the moon and back!
models in Germany
1 sec
At Autoneum’s Swiss plant in A third of all cars produced
Sevelen one heatshield is worldwide are equipped with
manufactured every second Autoneum components
IR-Presentation 2020-07 13Agenda 1. About Autoneum 2. Results Half-Year 2020 3. Outlook 2020 4. Technology trends IR-Presentation 2020-07 14
31.2
–33.2% CHF million
Significant decline of global Earnings before interest, taxes,
light vehicle production Turnaround in North America
depreciation and amortization
on track
(EBITDA)
–32.7% Half-Year
Organic revenue decrease
2020
Free cash flow improved
considerably by CHF 40.6 million
730.6
CHF million
Revenue in Swiss francs Launch of “Autoneum Pure.”
Two Business Groups to boost product sustainability
outperformed market remarkably
IR-Presentation 2020-07 15Coronavirus pandemic
Massive impact on automobile production and revenue
LV production in million units ‒32.7%*
Autoneum revenue in CHF million
‒33.2% 1 156.1
45.1
‒9.0%* ‒55.0%* 730.6
‒22.2% ‒44.5% 30.1
561.2 594.9
22.9 22.1 485.3
17.8
12.3 245.3
Q1 Q1 Q2 Q2 HY1 HY1 Q1 Q1 Q2 Q2 HY2 HY2
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
LV production Revenue
Source: IHS Markit July 2020 / Autoneum. *Change in local currencies.
IR-Presentation 2020-07 16Turnaround in North America (NA)
Significant improvements achieved
• Management team of BG North America further strengthened
• Further headcount reduction in plants and BG overhead by around 480 FTE
• Scrap rate reduced from 3.7% in HY1 2019 to 2.5% in HY1 2020
• Waste intensity improved by 50% due to higher recycling content and reduced scrap rates
within 12 months
• Relocation of carpet production for two German OEMs from Bloomsburg (PA) and London,
Canada, back to Aiken (SC) savings of CHF 1 million p.a.
• Successful price negotiations with customers of Aiken plant on product changes in Q2 2020
• Above-mentioned actions and other operational improvements led to significant reduction
of losses in HY1 2020 vs HY1 2019
Next steps
• Relocation of other labor-intensive products from USA/Canada to San Luis Potosí, Mexico
• Further optimization of indirect labor & manufacturing expenses towards benchmark level
• Further increase of recycling content in felt and Ultra-Silent production
• Localization of raw material sourcing in USA and Mexico
• Optimization of transportation costs and transport network
IR-Presentation 2020-07 17Key figures Overview CHF million HY1 2019 HY1 2020 Change Revenue 1 156.1 730.6 −425.5 Organic revenue growth in % (change in pp) 1.9% −32.7% −34.6 EBITDA 79.0 31.2 −47.8 in % of revenue (change in pp) 6.8% 4.3% −2.6 EBIT 16.4 −31.8 −48.3 in % of revenue (change in pp) 1.4% −4.4% −5.8 Net result −6.0 −54.9 −48.9 Investments in tangible assets −64.0 −15.9 48.1 Free cash flow −54.5 −13.9 40.6 Basic earnings per share (EPS) in CHF −3.33 −12.33 −9.0 IR-Presentation 2020-07 18
Revenue development
Crisis-related revenue slump in all Business Groups
CHF million
−179.1
−175.9
1 156.1 4.9
−11.7 −16.0 − −47.6
−11.7 730.6
Organic revenue decline: −32.7%
Revenue BG Europe BG North BG Asia BG SAMEA Corporate and Currency Revenue
HY1 2019 America eliminations translation/ HY1 2020
hyperinflation
effect
IR-Presentation 2020-07 19Operating result (EBIT) development
Corona overcompensates NA turnaround achievements
CHF million
Margin
1.4%
16.4
−29.5
Margin Margin
4.5% 5.0% −31.8
Margin
−10.0
−1.7% −1.2 −5.1
Margin −2.3
−13.8% Margin
−4.4%
EBIT BG Europe BG North BG Asia BG SAMEA Corporate and EBIT
HY1 2019 America eliminations HY1 2020
IR-Presentation 2020-07 20Income statement
Net result burdened by uncovered fixed costs
• Revenue in Swiss francs
CHF million HY1 2019 HY1 2020 Change
decreased by −36.8%
Revenue 1 156.1 730.6 −425.5 • Financial result deteriorated
EBITDA 79.0 31.2 −47.8 mainly due to negative
EBIT 16.4 −31.8 −48.3 currency effects
Financial result −11.3 −25.5 −14.2 • Income taxes benefited from
Earnings before taxes 5.1 −57.3 −62.4 lower earnings before taxes
and tax incentives
Income taxes −11.0 2.4 13.5
Net result −6.0 −54.9 −48.9 • Overall net result impacted by
uncovered fixed costs due to
attributable to AUTN shareholders −15.5 −57.3 −41.8
revenue slump
attributable to non-controlling interests 9.5 2.4 −7.2
IR-Presentation 2020-07 21Balance sheet
Long-term financing secured on a sustainable basis
• Investments in tangible assets
CHF million 31.12.2019 30.06.2020 Change
reduced by CHF 48.1 million
Total assets 1 839.1 1 781.9 −57.3 compared to HY1 2019
Non-current assets (excl. leased assets) 858.0 763.4 −94.6 • Seasonally higher net working
Leased assets 316.7 279.6 −37.2 capital, but CHF 35.1 million
Net working capital 86.2 103.6 −17.3
below HY1 2019 level
Cash and cash equivalents 98.7 238.7 140.0 • Long-term credit facility of
Borrowings (excl. lease liabilities) 433.7 611.5 177.8 CHF 350 million amended and
two subordinated loans of
Lease liabilities 324.6 301.5 −23.1
CHF 20 million each extended
Net debt (excl. lease liabilities) 335.0 372.8 37.8
Shareholders’ equity 498.9 371.0 −127.9
• Equity ratio lowered to 20.8%
mainly due to the negative net
in % of total assets (change in pp) 27.1% 20.8% −6.3 result and currency translation
effects
IR-Presentation 2020-07 22Cash flow
Substantially reduced investments in tangible assets
• Operating cash flow only
CHF million HY1 2019 HY1 2020 Change slightly below prior-year level
due to strict management of
Cash flows from operating activities 10.1 0.9 −9.2 net working capital
Cash flows used in investing activities −64.6 −14.9 49.8
• Investments in tangible
Free cash flow −54.5 −13.9 40.6 assets reduced by CHF 48.1
million
Cash flows from financing activities 18.0 162.0 144.1
Change in cash and cash equivalents −36.3 140.0 176.3
• Free cash flow has strongly
improved, albeit remaining
Cash and cash equivalents at June 30 56.8 238.7 181.9 negative for the first half
IR-Presentation 2020-07 23Net debt
Net debt increased accordingly
CHF million
−1.6 −4.3
−5.1 −12.9
−13.9
372.8
335.0
Net debt FCF Dividends Repayment Purchase of Currency Net debt
(excl. to minority of lease treasury translation (excl.
lease shareholders liabilities shares effect lease
liabilities) liabilities)
31.12.2019 30.06.2020
IR-Presentation 2020-07 24Agenda 1. About Autoneum 2. Results Half-Year 2020 3. Outlook 2020 4. Technology trends IR-Presentation 2020-07 25
Global light vehicle production forecast
2019 production levels not to be reached before 2024
LV production in million units
_11.1%
• Significant market drop of
–21.9% for full year 2020
‒21.9%
forecasted
89.0 88.1 90.8
84.6 • 2021 production volume
79.1 expected to be –11.1% below
69.5 2019 level but higher than 2020
‒33.2% ‒10.2% volume
45.1 43.9
39.4 • Adjustment of cost structure to
30.1 the lower production levels
started in Q1 2020 and will be
concluded until end of 2020
HY1 HY1 HY2 HY2 2019 2020 2021 2022 2023 2024
2019 2020 2019 2020
Source: IHS Markit July 2020.
IR-Presentation 2020-07 26Business performance heavily influenced by pandemic evolution
Outlook
Market
• Significant decline of global automobile production in 2020.*
• Although customers' production volumes should increase again in the second half of 2020, latest forecasts indicate that they will
remain clearly below the level of the second half of 2019.
Revenue
• Revenue is expected to develop at market level in 2020.
Profitability
• Immediately implemented and ongoing cost reduction measures as well as further operational optimizations also within the
turnaround program in North America will lead to improvements in the second half of the year.
• Due to the current uncertainties, a reliable statement on the net result for the full year 2020 thus cannot be made. With regard
to the mid-term targets, a recovery of the profitability level is expected, but it will largely depend on the market development.
*IHS Markit July 2020.
IR-Presentation 2020-07 27Agenda 1. About Autoneum 2. Results Half-Year 2020 3. Outlook 2020 4. Technology trends IR-Presentation 2020-07 28
Electrification of drive system
Hybrid to become the predominant drive system
In million units
100
80
60
40
20 Electric
Hybrid
ICE
0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Source: IHS Markit July 2020.
IR-Presentation 2020-07 29Electrification of drive system
Impact on current product portfolio
• Autoneum’s product
Products ICEs Hybrids BEVs
portfolio is well applicable in
all types of drive systems
Carpets
• For Autoneum’s product
Floor insulators portfolio hybrids are the
most attractive
Inner dashes
• In BEVs heatshields are
obsolete, but the omission
Underbody
systems will be compensated by
WOLs and dedicated BEV
Wheelhouse outer parts in development
liners (WOL)
Heatshields
Engine bay
IR-Presentation 2020-07 30Electrification of drive system
Traditional automotive brands keep the lead
86.9 • By 2027, production share of
Traditional Brands
−4% traditional automotive brands
(ICE/Hybrid) 83.4 is still likely to be >98%
Traditional Chinese 0.7
+169% • 88% of all BEVs to be
Brands (BEV) 2.0 produced by 2027 will still be
owned by a traditional
0.7 automotive brand
Traditional Other
+1.329%
Brands (BEV) 9.8
0.2 • More than 50 new BEV
New BEV Brands +317% brands, 80% Chinese (e.g.
0.8 Nio, X-Peng, Byton, Aiways)
• Tesla production volume is
0.4
Tesla +113% 2019 expected to be higher than
0.8 those of Volvo or JLR in the
2027
mid- to long-term
Source: IHS Markit July 2020.
IR-Presentation 2020-07 31Innovate for new mobility
Megatrends support growth
Topics Opportunities Components
Acoustic components with thermal
Missing heat sources
properties
Carpet systems
Lightweight construction expertise and
Reducing vehicle weight
product portfolio
New mobility trends
Aerodynamics Expanding underbody business
Road noise Insulation of exterior noise Inner dashes
Sustainable technologies Recycled fibers
Tailored acoustic solutions, diagnostics
Powertrain noises Wheelhouse
and simulations
outer liners
Aesthetics in the interior and trunk Material innovations
Comfort in autonomous vehicles New noise insulation requirements
Underbody
systems
Shared use Cleanability and durability
IR-Presentation 2020-07 32Research and development Facts and figures Global network 15 customer projects for Around 90% of all with R&D headquarters in vehicle pre-development innovations brought Winterthur, Switzerland to the market Suppy of eleven new Scientific leadership of the Over 300 employees electric cars in China Automotive Acoustics Conference worldwide IR-Presentation 2020-07 33
Extensive product portfolio
Selected innovations
Technology Technology
Di-Light Hybrid-
Acoustics
Application Application
• Needlepunch carpets • Inner dashes
• Floor insulators
Advantages
• Strong performance Advantages
with low weight • Insulates and absorbs noise
• Made from up to 97% PET simultaneously
• Highly resilient and wear- • Based on recycled cotton
resistant fibers
• Lightweight
IR-Presentation 2020-07 34Extensive product portfolio
Selected innovations
Technology Technology
Alpha-Liner Theta-FiberCell
Application Application
• Wheelhouse outer liners • Engine encapsulations
• Engine covers
Advantages
• Optimum protection Advantages
against tire noise • Lightweight
• Primarily made from fiber-foam solution
recycled PET • Heat insulation and tem-
• Low weight at high perature stability up to 200° C
acoustic performance • High acoustic absorption
IR-Presentation 2020-07 35Extensive product portfolio
Sustainability champions
Ultra-Silent
• 100% PET
• 60% lighter than underbodies made of plastic
Prime-Light
• Made of 40% recycled cotton fibers
• Fully recyclable
Hybrid-Acoustics PET
• Made of 100% PET with up to 50% recycled content
• 40% lighter than alternative insulation products
IR-Presentation 2020-07 3650 years of cutting-edge technology
Measurement systems
Autoneum is leading provider of measure-
ment systems for vehicle acoustics
Innovative systems for measuring
NVH behavior (noise, vibration, harshness)
Global industry standard
Used by automotive manufacturers,
suppliers and laboratories
IR-Presentation 2020-07 37Software for component optimization
Simulation
Acoustic Garage – first online
configurator around noise protection in
vehicles (acoustics.autoneum.com)
Programs developed in-house for
optimizing vehicle NVH behavior
“Best in class” solutions for vehicle
development and production
Tailored for vehicle manufacturers’
individual requirements
IR-Presentation 2020-07 38Contacts and Event Calendar
Investors and Financial Analysts Media Contact Address
Bernhard Weber Dr Anahid Rickmann Autoneum Holding Ltd
Head Financial Services & IR Head Corporate Communications & Schlosstalstrasse 43 / P.O. Box
Responsibility CH-8406 Winterthur
T +41 52 244 82 07 T +41 52 244 83 88
investor@autoneum.com media.inquiry@autoneum.com www.autoneum.com
Important Dates 2021 SIX Swiss Exchange Stock Listing:
Publication of Revenue Financial Year 2020 January 21, 2021
Media Conference Financial Year 2020 March 3, 2021 Ticker symbol AUTN
Securities number 12748036
Annual General Meeting 2021 March 24, 2021
ISIN CH0127480363
IR-Presentation 2020-07 39Disclaimer
Autoneum is making great efforts to include accurate and up-to-date information in this document, however we make no representations or
warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability
whatsoever for the use of it.
The information provided in this document is not intended nor may be construed as an offer or solicitation for the purchase or disposal, trading
or any transaction in any Autoneum securities. Investors must not rely on this information for investment decisions.
All statements in this report which do not reflect historical facts are statements related to the future which offer no guarantee with regard to
future performance; they are subject to risks and uncertainties including, but not limited to, future global economic conditions, exchange rates,
legal provisions, market conditions, activities by competitors and other factors outside the Company's control. The vehicle production figures for
2020 and forward looking are based on the latest estimates of IHS Markit.
© 2020 Autoneum Holding Ltd, all rights reserved.
IR-Presentation 2020-07 40Autoneum. Mastering sound and heat.
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