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
vehicles
Light Light
vehicles Commercial Commercial
IR-Presentation 2020-07 8 Facts and figures 2019 Key financials
2297.4 Revenue by region (in %) Revenue by customer (in %) CHF million Revenue SAMEA 14 5 4 Asia 2 12 * 12 2 1.5% 2 5 Europe 11 EBIT margin 39 5 *Without one-time effects from impairment of fixed assets.
5 9 North America 6 44 ‒77.7 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 10 Global cooperation Proximity to customers
Research and Development Center / Regional acoustic Customer interface / Vehicle manufacturers Product Management and Development Centers Customer Business Units
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 11 Advance 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
130 Launch of three innovations with a high community projects sustainability performance implemented globally
IR-Presentation 2020-07 2712 About Autoneum Did you know…?
750000 km Worth trying out: Acoustic Garage 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 13 Agenda
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, Turnaround in North America light vehicle production 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 15 Coronavirus 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 16 Turnaround 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 17 Key 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 19 Operating 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 −10.0 Margin −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 20 Income 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 21 Balance 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 22 Cash 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 • Free cash flow has strongly Change in cash and cash equivalents −36.3 140.0 176.3 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 23 Net 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 24 Agenda
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 26 Business 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 27 Agenda
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 29 Electrification 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 30 Electrification of drive system Traditional automotive brands keep the lead
• By 2027, production share of Traditional Brands 86.9 −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 automotive brand Traditional Other 0.7 +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 2027 those of Volvo or JLR in the mid- to long-term Source: IHS Markit July 2020. IR-Presentation 2020-07 31 Innovate 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
Aerodynamics Expanding underbody business
trends Road noise Insulation of exterior noise Inner dashes Sustainable technologies Recycled fibers
mobility Tailored acoustic solutions, diagnostics Powertrain noises and simulations Wheelhouse
New 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 32 Research 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 34 Extensive 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 35 Extensive 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 36 50 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 37 Software 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 38 Contacts 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 [email protected] [email protected] 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 39 Disclaimer
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 40 Autoneum. Mastering sound and heat.