IR Presentation
Dr Martin Zwyssig, CFO, July 2018 Agenda
1. Autoneum at a glance
2. Highlights and Half-Year results 2018
3. Outlook Full Year 2018
4. New mobility trends
Appendix Who we are Autoneum in a nutshell
IR Presentation July 2018 3 Who we are Key facts & figures
Stock listed company 55 production facilities (SIX Swiss Exchange) worldwide
Revenue 2017: Represented in 25 CHF 2203.0 million countries
EBIT margin 2017: 8.1% Over 12000 employees
IR Presentation July 2018 4 Strategic priorities Clear profile as automotive supplier
Focus on acoustic & thermal management Pursue solutions in Grow profitably consolidation automotive and generate free opportunities cash flow
High Performance Culture
Focus on Practice long-term operational partnerships with excellence Leverage global customers technological leadership
IR Presentation July 2018 5 Strategic priorities Strategic Focus Areas 2025
Accelerate Asia Drive Digitalization
Innovate for New Advance Sustainability Mobility
IR Presentation July 2018 6 Organization Group Executive Board
Martin Hirzel CEO 20 years of automotive experience
Dr Martin Zwyssig Matthias Holzammer John T. Lenga Andreas Kolf Fausto Bigi CFO Head BG Europe Head BG North America Head BG Asia Head BG SAMEA 14 years of automotive 27 years of automotive 22 years of automotive 23 years of automotive 22 years of automotive experience experience experience experience experience
IR Presentation July 2018 7 Leading in acoustic and thermal management Four product lines
• Broad range of technologies Interior Floor • Innovative materials and processes Engine Bay • Customized systems and components • Cost effective and lightweight solutions • Total vehicle optimization Body Treatment • Measurement systems and Underbody simulation tools
IR Presentation July 2018 8 Europe
Belgium France Hungary Spain Global Presence ⋅ Genk ⋅ Aubergenville ⋅ Komárom ⋅ A Rúa ⋅ Blainville ⋅ Valldoreix Czech Republic ⋅ Lachapelle-aux-Pots Italy Autoneum ⋅ Bor ⋅ Moissac ⋅ Santhià Sweden Locations with minority shareholders ⋅ Choceň ⋅ Ons-en-Bray ⋅ Gothenburg Associated companies and investments ⋅ Hnátnice Poland Germany ⋅ Katowice Switzerland Licensees ⋅ Grossostheim ⋅ Nowogard ⋅ Sevelen ⋅ Munich ⋅ Winterthur (HQ) ⋅ Rossdorf- Portugal Gundernhausen ⋅ Setúbal ⋅ Sindelfingen Russia Great Britain ⋅ Ryazan ⋅ Halesowen ⋅ Heckmondwike ⋅ Stoke-on-Trent
North America SAMEA Asia
Canada USA Argentina Iran China India Malaysia ⋅ London, Ontario ⋅ Aiken, South Carolina ⋅ Córdoba ⋅ Mashhad ⋅ Changsha ⋅ Behror ⋅ Shah Alam ⋅ Tillsonburg, Ontario ⋅ Bloomsburg, Pennsylvania ⋅ Chongqing ⋅ Chennai ⋅ Jeffersonville, Indiana Brazil South Africa ⋅ Shanghai South Korea Mexico ⋅ Novi, Michigan ⋅ Gravataí ⋅ Rosslyn ⋅ Shenyang Indonesia ⋅ Seoul ⋅ Hermosillo ⋅ Oregon-Lallendorf, Ohio ⋅ São Paulo ⋅ Durban ⋅ Taicang ⋅ Jakarta ⋅ Mexico City ⋅ Oregon-Wynn, Ohio ⋅ Taubaté ⋅ Yantai Taiwan ⋅ San Luis Potosí ⋅ Sunnyvale, California Turkey ⋅ Guangzhou Japan ⋅ Taoyuan ⋅ Silao ⋅ Jackson, Tennessee ⋅ Bursa ⋅ Tianjin ⋅ Tokyo ⋅ Monroe, Ohio ⋅ Wuhan Thailand ⋅ Somerset, Kentucky ⋅ Fuzhou ⋅ Laem Chabang ⋅ Tinley Park, Illinois ⋅ Chonburi ⋅ Valparaiso, Indiana
IR Presentation July 2018 9 Revenue 2017
IR Presentation July 2018 10 Corporate Responsibility Key commitments
• Corporate Responsibility is at the heart of our business and defines everything we do • Commitment to become the Corporate Responsibility benchmark among our industry peers • Commitment to transparency and accountability by reporting according to the GRI Standards on an annual basis • Commitment to proactively shape the environmental and social regulatory agenda
IR Presentation July 2018 11 Agenda
1. Autoneum at a glance
2. Highlights and financial results Half-Year 2018
3. Outlook Full Year 2018
4. New mobility trends
Appendix Business Groups Europe, Asia and SAMEA with above-market revenue growth Revenue increase EBIT margin of 3.9% in Swiss francs at respectable 7.5%
Highlights Half-Year 2018 Shrinking production volumes in Rise of raw material major automotive markets prices continues
Opening of sixth Eastern European Strong capacity expansion plant in Komárom, Hungary and high investments in China Several ramp-ups for models of European OEMs in USA
IR Presentation July 2018 13 Key figures Overview
CHF million HY 2018 HY 2017*
Revenue 1 159.4 1116.0
EBITDA 127.2 130.1 in % of revenue 11.0% 11.7% EBIT 86.4 94.0 in % of revenue 7.5% 8.4% Net profit 60.1 61.7
Investments in tangible assets −72.7 −67.7
Free cash flow −24.1 −36.0
RONA 13.2% 17.1%
Basic earnings per share (EPS) in CHF 10.49 10.42
*Restated to reflect the adoption of IFRS 15.
IR Presentation July 2018 14 Revenue development Organic revenue growth in line with market
CHF million
3.6 21.1 −20.5 7.7 12.1
22.7 −3.3
1 159.4
1 116.0 Organic revenue growth +2.2%
Revenue Currency Disposal of BG Europe BG North BG Asia BG SAMEA Corporate and Revenue HY 2017* translation Brazilian plant America eliminations HY 2018 effect in Betim
*Restated to reflect the adoption of IFRS 15.
IR Presentation July 2018 15 Operating result (EBIT) development Weak US market and expansion in Asia impact profitability
CHF million
Margin Margin 8.7% 3.9% Margin 8.4% 6.7 Margin Margin 7.5% −17.5 Margin 5.5% 8.9% 2.9 3.4
94.0 −2.9 86.4
EBIT BG Europe BG North BG Asia BG SAMEA Corporate and EBIT HY 2017* America eliminations HY 2018
*Restated to reflect the adoption of IFRS 15.
IR Presentation July 2018 16 EBIT development BG North America Lower call-offs, ramp-up costs & operational inefficiencies
CHF million
Margin 7.2%
−0.3 −6.6
Margin −10.5 3.9% 35.9 −4.7 4.6
18.4
EBIT Currency Lower Ramp-up Operational Overhead EBIT HY 2017* translation call-offs costs inefficiencies savings HY 2018 effect
*Restated to reflect the adoption of IFRS 15.
IR Presentation July 2018 17 Income statement Net profit on prior-year level
• Revenue in Swiss francs CHF million HY 2018 HY 2017* increased by 3.9% Revenue 1 159.4 1116.0 • Well balanced funding at attractive interest rates EBIT 86.4 94.0 • Income taxes managed on a Financial result −2.7 −3.1 sustainable level at 28.3% Profit before taxes 83.7 90.8 • Net profit margin of 5.2% on prior-year level Income taxes −23.7 −29.1
Net profit 60.1 61.7
attributable to AUTN shareholders 48.9 48.5
attributable to non-controlling interests 11.2 13.2
*Restated to reflect the adoption of IFRS 15.
IR Presentation July 2018 18 Balance sheet Solid balance sheet
• Continuing capacity CHF million 30.06.2018 31.12.2017* 30.06.2017* development and expansion Total assets 1623.0 1542.9 1393.1 • Increased NWC due to Non-current assets 888.1 853.0 738.1 numerous production Net working capital 140.3 105.5 111.7 ramp-ups and associated stock in Cash and cash equivalents 73.0 103.8 102.1 tooling Borrowings 333.5 288.8 252.2 • Solid equity ratio slightly Net debt 259.8 183.3 149.1 lowered due to increased total assets Shareholders’ equity 666.2 658.3 565.3 and the seasonal dividend payments in % of total assets 41.0% 42.7% 40.6%
Market capitalization 1080.9 1306.6 1223.9
*Restated to reflect the adoption of IFRS 15.
IR Presentation July 2018 19 Cash flow Continuing capacity development and expansion
• Operating cash flow slightly CHF million HY 2018 HY 2017 above prior-year level Cash flows from operating activities 48.5 47.3 • Increased investments in Cash flows used in investing activities −72.6 −83.3 tangible assets due to capacity development Free cash flow −24.1 −36.0 and expansion Cash flows used in financing activities −5.4 −7.4 • Discontinuation of investments in non- Change in cash and cash equivalents −30.9 −47.8 current financial assets Cash and cash equivalents at June 30 73.0 102.1 • Free cash flow has improved, albeit remaining negative for the first half- year
IR Presentation July 2018 20 Agenda
1. Autoneum at a glance
2. Highlights and financial results Half-Year 2018
3. Outlook Full Year 2018
4. New mobility trends
Appendix Market
Rise in global automobile production to 97 million light vehicles (growth rate of 2%)*
Guidance Revenue 2018 Profitability
Organic revenue growth The Group’s EBIT margin of around 3% is expected to be at 7%
*According to IHS.
IR Presentation July 2018 22 Agenda
1. Autoneum at a glance
2. Highlights and financial results Half-Year 2018
3. Outlook Full Year 2018
4. New mobility trends
Appendix New mobility trends Impacting the automotive industry beyond 2020
E-Mobility Connectivity Autonomous Driving Shared Mobility
IR Presentation July 2018 24 Market development of electric vehicles Outlook on Autoneum offering development
2018 2022 2027
Few BEV models on the market More BEV models on the market Many BEV models on the market Pioneering OEMs All OEMs All OEMs – autonomous/shared Low production volume Growing production volume driving
Scenario High production volume • Few pioneer OEMs • New OEMs successful in scaling up • New OEMs successful in scaling up • Automotive start-ups and digital • Traditional OEMs • Traditional OEMs
giants moving into Automotive Players
• Implement disruptive product • Consolidate and improve disruptive • Acoustics as differentiator in all contents product contents segments • Acoustics has to be just right • Acoustics as differentiator in
focus premium segments Technical Technical
• Engineering services • Engineering services • Provide engineering services (simulation in particular) (simulation in particular) (simulation in particular) • Lightweight technologies adapted • Joint developments with OEMs to • Offer disruptive specific products for to BEVs identify consumer needs in new new mobility
actions • Develop innovative products mobility Autoneum Autoneum • Adjust product portfolio
IR Presentation July 2018 25 Autoneum’s current e-car supply Broad range equipped by Autoneum
BMW Chevrolet Nissan Renault Daimler Product family i3 Bolt Leaf Zoe X10 B-Class
Volumes 2017 32,000 30,000 35,000 31,000 4,500
Carpet o o o o systems
Inner dashes / o o interior insulators
Dampers and o o o stiffners
Underbody o o shields
Wheelhouse o o o o outer liners
Engine / / / encapsulations
Hoodliner / o o o Outer dashes
NVH / o development
: Part supplied by Autoneum o: Part supplied by competitors /: Part not required
IR Presentation July 2018 26 Autoneum’s e-car supply 2018 – 2020 Delivery of two new players
2018 2018 2018 2019 2019 2019 2019 2020 New OEM OEM New OEM OEM New OEM OEM OEM OEM OEMs Product family
Carpet o o o o o systems
Inner dashes / o o interior insulators
Dampers and o o o o / o o o stiffners
Underbody o o o o shields
Wheelhouse o o o o o outer liners
Engine RFQ o / o o / / o encapsulations ongoing
Hoodliner / RFQ o / o o / Outer dashes ongoing
NVH RFQ RFQ / / / / / development ongoing ongoing
: Part supplied by Autoneum o: Part supplied by competitors /: Part not required
IR Presentation July 2018 27 Self-driving cars and shared mobility High sales potential
Self-driving cars Wellness, work, Sustainability: Interior architectures: New materials and communication and Sustainability of products the instrument panel will function integration: entertainment: and production processes shrink and leave more room development of novel passengers will expect will be a key element in all for comfortable surfaces attractive surfaces and absolute silence and a future vehicles, independent with acoustic absorption to work on the integration of healthy interior environment of the powertrain and the compensate sound acoustic and thermal degree of autonomous reflecting glass roof functions in new materials driving
Shared mobility Tough interiors: Fleet customization: Aftermarket: Design to cost: resistance to dirt, fleet operators will demand replacing of worn out Autoneum’s leading cleanability and wear technologies to personalize interior parts in shared cars simulation tools help to resistance will play a major the interiors of their vehicles with high utilization might design the best compromise role in fleets of shared cars offer opportunities for new between performance and business cost
IR Presentation July 2018 28 Competence Center New Mobility (CCNM) The mission
Support Organizations • Actively monitor ideas in the start-up Research Startup Ecosystem Big ecosystem and feed innovation in R&T Organizations • Ideas, inventions Companies and research • Start-ups at various • Establish mutual beneficial relations with stages • Entrepreneurs new OEMs • Investors • Advisors • People from related Service • Leverage on digital transformation Universities Providers organizations • Support the global organization with facts Funding and data on new mobility Organizations
CCNM at the heart of the Knowledge management Operational transformation cradle
IR Presentation July 2018 29 New mobility OEMs and start-ups in California, USA Short list ranking by Venture Capital
Product Production Production New OEM Founding Employees EV* AD* SM* Capital Description Capacity Timing
8 prototypes NIO 2014 2000 x x Luxury Electric Car Planned for 2020 $1 billion produced Autonomous electric Zoox 2014 500 x x x Prototype Unknown $300 million car Over 200k First produced in $226 million Tesla 2003 33,000 x x Luxury electric car vehicles sold 2008 (IPO)
Lucid Motors 2007 500 x x Luxury electric car Prototype Planned for 2019 $200 million Faraday $13.75 2014 1400 x x Luxury electric car Prototype Planned for 2018 Future million Performance electric Dubuc Motors 2013 50 x Prototype Planned for 2018 $2 million car
NEXT 2015 10 x x Modular electric bus Prototype Unknown $160K
Hummingbird 2016 50 x Hybrid/electric truck Prototype Unknown N/A EV Performance 900 Reveros First produced in Karma 2015 700 x N/A hybrid/electric car sold 2017 Autonomous electric SF Motors 2016 500 x x Prototype Planned for 2019 N/A Car
Source: Web. *EV: Electric Vehicle, AD: Autonomous Driving, SM: Shared Mobility.
IR Presentation July 2018 30 New mobility Excel at trend analysis to unlock potential
Topics Opportunities
E-motors / Specific treatments, Batteries / Powertrain tonal noise Vehicle diagnostics and simulation architectures Weight down Leverage lightweight portfolio
Aerodynamics Extended underbody coverage
Dominant road noise Textile exterior treatments Customer expectation Leverage recycled fiber Sustainable technologies technologies
Use sound package for thermal Lack of heat sources comfort
Style of interior Innovation in new materials
Ownership Comfort in autonomous New levels of quietness driving
Shared use Durability, cleanability
IR Presentation July 2018 31 Innovating for new mobility Selected carpet technologies
Topic Opportunity
Leverage lightweight Weight down portfolio • Improved control of AFR on main floor carpet Tune-It to optimize carpet acoustic performance Sustainable Leverage recycled fiber • Up to 25% lighter versus conventional technologies technologies latex/LDPE constructions • PET mono-material construction allows to Comfort in re-spin fibers or filaments. Fibers can be New levels of quietness looped back into the carpet substrate autonomous driving
Topic Opportunity
• Improved durability and better aesthetics Shared mobility Durability Di-Light • Carpet is produced with recycled bottle flakes (up to 97% recycled content)
• High stain-resistance due to its hydrophobic BEV Sustainability surface
IR Presentation July 2018 32 Innovating for new mobility Selected exterior acoustics technologies
Topic Opportunity
Leverage lightweight Weight down portfolio
Extended underbody • 100% porous product covering large areas Aerodynamics coverage Ultra- under the vehicle -> reduces interior and exterior noise Textile exterior Dominant road noise Silent • Benchmark fixation point strength and treatments excellent stone impact performance for a high quality and durable product Sustainable Leverage recycled fiber technologies technologies • 100% polyester composition ensures zero carbon emissions (VOC) as well as a full Comfort in New levels of end-of-life recyclability autonomous driving quietness
Topic Opportunity
Leverage lightweight Weight down portfolio
• Benchmark in acoustic performance relevant Textile exterior Dominant road noise Era-Light to underbody treatments • Durable product and consistent performance despite exterior application Sustainable Leverage recycled fiber • Minimum added weight per acoustic technologies technologies performance increase Comfort in New levels of • Potential mono-material solution autonomous driving quietness
IR Presentation July 2018 33 Innovating for new mobility Selected motor noise attenuation technologies
Topic Opportunity
Specific treatments, Powertrain tonal diagnostics and • Combination of Theta-Fiber and Theta-Cell noise simulation Theta- provides outstanding acoustic absorption at light weight FiberCell Leverage lightweight Weight down portfolio
Comfort in New levels of autonomous driving quietness
Topic Opportunity
Leverage lightweight Weight down portfolio Hybrid- • Benchmark in acoustic performance relevant Textile exterior Acoustics Dominant road noise to underbody treatments • Durable product and consistent performance Eco+ despite exterior application Sustainable Leverage recycled fiber • Minimum added weight per acoustic technologies technologies performance increase Comfort in New levels of quietness • Potential mono-material solution autonomous driving
IR Presentation July 2018 34 Conclusion New mobility trends: impact on product portfolio
Product families BEV including private Private autonomous Shared ICE including Shared BEV autonomous ICE autonomous including autonomous
Carpets
Floor insulators
Inner dashes
Wheelhouse liners Underbody panels
Engine bay
Heatshields
IR Presentation July 2018 35 Conclusion New mobility trends support future profitable growth
• New mobility trends such as e-mobility and autonomous/shared driving provide business opportunities for Autoneum • Autoneum benefits from its proven long-standing NVH and thermal expertise • Trends are early anticipated in the innovation pipeline • New OEMs offer potential for outsourcing of NVH development • For Autoneum digitalization is all about operational excellence
Industry trends such as e-mobility and autonomous/shared driving as well as Industry 4.0 support Autoneum’s target of profitable growth
IR Presentation July 2018 36 Contacts and event calendar
Investors and Media Contact Address Financial Analysts Dr Martin Zwyssig Dr Anahid Rickmann Autoneum Holding Ltd CFO Head Corporate Communications & Schlosstalstrasse 43 / P.O. Box Responsibility CH-8406 Winterthur T +41 52 244 82 82 T +41 52 244 83 88 [email protected] [email protected] www.autoneum.com
Important Dates 2019 Publication of Revenue 2018 January 23, 2019 Media and Financial Analysts Conference Financial Year 2018 March 6, 2019 Annual General Meeting 2019 March 28, 2019
Autoneum listed on SIX Swiss Exchange Ticker Symbol AUTN Valor Number 12748036 ISIN CH0127480363
IR Presentation July 2018 37 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 2018 are based on the latest estimates of IHS Global Insight.
© 2018 Autoneum Holding Ltd, all rights reserved
IR Presentation July 2018 38 Appendix Broad product portfolio Our product lines
Engine Bay Interior Floor Underbody Body Treatment
• Engine • Inner dashes • Underbody • Dampers Encapsulations • Tufted carpets systems • Stiffeners • Hoodliners • Non-woven • Wheelhouse • Outer dashes carpets outer liners • Engine top • Floor mats • Floor pans covers • Floor insulators • Battery boxes • Battery covers • Spacers and • Heatshields crash pads
IR Presentation July 2018 40 Revenue split
Body Other Interior floor Underbody Engine bay treatment
• Inner dashes • Underbody shields • Engine mounted parts • Dampers/stiffeners • Trunk parts • Non-woven carpets • Floor pans • Body mounted parts • Sealants • Interior trim parts • Tufted carpets • Heat shields • Engine top cover • Other acoustic parts • Truck parts • Floor insulator • Wheelhouse outer • Hoodliners • Floor mats liners • Outer dashes • Spacers/crash pads • Water box shields
BG Europe 15% 11% 5% 1% 7%
BG North America 29% 5% 4% - 7%
BG Asia 5% 2% 2% 1% 2%
BG SAMEA 2% 1% 1% - 1%
Revenue split 2017 by product line 50% 19% 11% 2% 17%
IR Presentation July 2018 41 Theta-FiberCell - an engine bay innovation Lightweight structural parts at best acoustic
Lightweight 100% porous technologies allow product allows high implementation of acoustic perfor- innovative engine mance. Combination of
encapsulations for CO2 Theta-Fiber and Theta-Cell reduction and acoustic provides outstanding benefit. acoustic absorption at light weight. Engine top cover
Carrier in Theta- Theta-FiberCell Fiber ensures brings thermal resistance to engine insulation, vibration and best-in-class temperature resistance up to mechanical properties even 200°C in peak conditions, after long-term aging at low flammability and high 160°C. self-ignition temperature.
IR Presentation July 2018 42 Hybrid-Acoustics – an interior floor innovation Local tuning of insulation and absorption
According to the Product delivering material variant up high acoustic to 70% of recycled insulation and material is used (mostly absorption. post-industrial cotton fibers).
Lightweight product Thanks to the Inner dash based on porous control of the materials like felt or dynamic stiffness, foam. The parts are easy to the acoustic can be tuned handle and to mount in the locally to meet each car’s vehicle. NVH requirements.
IR Presentation July 2018 43 Di-Light – an interior floor innovation Better durability and perceived quality
Needlepunch Durability of a carpet carpets have until is not strictly now been seen as correlated to its cost-effective textile weight; Di-Light proves that surfaces but prone to with its more resilient fibrous flattening and wear over web layer, it out-performs lifetime. Di-Light is a more heavier standard needle- durable needlepunch carpet. punch carpets. Needlepunch carpet
Carpet is produced Better coverage with with recycled bottle more uniform flakes (up to 97% surface appearance recycled content). gives better aesthetics to floor carpets.
IR Presentation July 2018 44 Ultra-Silent – an underbody innovation Light, durable and acoustic
Lightest product on No use of glass the market helps the fibers ensures customers achieving benchmark fixation the CO₂ targets. point strength and excellent stone impact performance for a high quality and durable product. Underfloor shield
100% polyester 100% porous composition ensures product covering zero carbon emissions large areas under (VOC) as well as a full end- the vehicle reduces interior of-life recyclability. and exterior noise.
IR Presentation July 2018 45 Nero-Acoustics – a body treatment innovation Core competence “acoustic” at low weight
Up to 50% weight Improved damping- reduction compared to-mass to conventional performance dampers – still achieving allowing to reduce the area 20% weight saving weight of the part without compared to previous altering its damping effect. generation of lightweight dampers. Damper
Good conformability Improved process and easy usage in recyclability due to trim or paint shop. the change of filler material.
IR Presentation July 2018 46 Measurement systems Product portfolio
• Core competencies in acoustic and thermal management applied in specialized measurement systems • Innovative systems to measure components and material properties • Developed by experts – resulting in industry standards • Measurement systems set the industry standard and are in use by OEMs, suppliers and laboratories Alpha Cabin
IR Presentation July 2018 47 Simulation tools Product portfolio
• Acoustic and Thermal Simulation tools for full system or component optimization • Scientific analysis combined with understanding of operational boundary in the automotive industry • Best-in-class solutions in concept and development phase and for VA/VE during serial production VisualSISAB: visualization of material thickness of inner dash
IR Presentation July 2018 48