HELLA Capital Markets Day
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CAPITAL MARKETS DAY 2015 HELLA KGaA Hueck & Co London 02 December 2015 HF-7761DE_C (2012-12) Disclaimer This document was prepared with reasonable care. However, no responsibility can be assumed for the correctness of the provided information. In addition, this document contains summary information only and does not purport to be comprehensive and is not intended to be (and should not be construed as) a basis of any analysis or other evaluation. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, targets, estimates and opinions contained herein. This document may contain forward-looking statements and information on the markets in which the HELLA Group is active as well as on the business development of the HELLA Group. These statements are based on various assumptions relating, for example, to the development of the economies of individual countries, and in particular of the automotive industry. Various known and unknown risks, uncertainties and other factors (including those discussed in HELLA’s public reports) could lead to material differences between the actual future results, financial situation, development or performance of the HELLA Group and/or relevant markets and the statements and estimates given here. We do not update forward-looking statements and estimates retrospectively. Such statements and estimates are valid on the date of publication and can be superseded. This document contains an English translation of the accounts of the Company and its subsidiaries. In the event of a discrepancy between the English translation herein and the official German version of such accounts, the official German version is the legal valid and binding version of the accounts and shall prevail. 2 HELLA Capital Markets Day 2015 | 02 December 2015 HELLA Capital Markets Day 2015 Agenda for today Time (GMT) Subject Speaker 08:30 – 09:00 Arrival Transactionand Registration summary Dr. Kerstin Dodel, Head of Investor 09:00 – 09:05 Welcome Company overview and Relations 09:05 – 09:30 HELLA’s Strategic Growth Path Dr. Rolf Breidenbach, CEO Road toinvestment Future Mobility highlights Dr. Kristian Döscher, Head of Global 09:30 – 10:00 Company overview and Market Trends & Outlook for HELLA Marketing Original Equipment New Trendsinvestment in LED-Lighting highlights- Dr. Michael Kleinkes, Head of Design & 10:00 – 10:40 Future Possibilities for Styling and Functionality Development Lighting 10:40 – 11:00 Coffee BusinessBreak overview All Smart Solutions for Automated Driving, Increased Michael Jaeger, Member of the Executive 11:00 – 11:40 Efficiency and Connectivity Board Electronics 11:40 – 12:10 Financial Overview and Perspectives Dr. Wolfgang Ollig, CFO 12:10 – 13:30 Q&A All 13:30 Lunch All 14:30 Expected End of CMD 3 HELLA Capital Markets Day 2015 | 02 December 2015 HELLA’s Strategic Growth Path CAPITAL MARKETS DAY 2015 Dr. Rolf Breidenbach, CEO London 02 December 2015 HF-7761DE_C (2012-12) How will HELLA’s growth path continue? Above market growth in the last 10 years Investors and analysts comments HELLA Group sales, EURbn* ”…we understood your historical CAGR* 5.8 growth, how can we assess your 10.0% p.a. 5.3 future sales development?...” 5.0 8.7% p.a. 4.7 4.4 3.9 ”…outperformance has been 50% 3.7 3.6 3.4 in the past, at a market growth of 2- 3.3 3.1 3% in the upcoming years, is that maybe too conservative for the Sustainable long term growth across the future?...“ cycle during the last ten years (CAGR of 6.5% p.a. since FY 2004/05 vs. 4% market) ”…investors are still hesitating about your future growth rates, whereas they have no concerns with high 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 growth rates of your competitors...” *Sales as reported w/o adjustments for consolidation or accounting changes 5 HELLA Capital Markets Day 2015 | 02 December 2015 HELLA’s automotive segments are growing stronger than the market HELLA’s positioning for future growth HELLA in market leadership positions1 Automotive Lighting Market size 2014 (EUR5bn) # 1 market position in LED headlamps Market growth, CAGR 2014-19E Europe 30% 8% LED Headlamps # 3-4 global market position in OE Europe passenger car lighting Global Automotive Lighting 6% #1-2 European market position in OE Global Automotive passenger car lighting Electronics + 4% CAGRe Global 2% LVP* Automotive Electronics # 2-3 global position in defined automotive electronic segments 0% 0% 10% 20% 30% 40% 50% Market share, 2014 # 1-2 European position Source: External market study commissioned by HELLA (2014), HELLA analysis 1) All figures related to selected markets and product categories based on HELLA‘s *expected 5-years CAGR portfolio, as covered in the market study 6 HELLA Capital Markets Day 2015 | 02 December 2015 Value added of Lighting and Electronics in automotive expected to rise due to further innovations Value share of modules in the auto industry Increasing value added captured HELLA's core OE segment HELLA’s segments show healthy growth due to an ongoing trend towards sophisticated applications 800bn EUR = 100% Value share trend and innovation Supplier gain increasing share in 19 Other value chain – need and frequency for innovations lead to more outsourcing 8 Exterior by OEMs 9 Power transmission 13 Chassis Automotive electronics experienced rapid innovation process 12 Electronics & electrics (incl. Lighting and LBAS) Innovations shifting from single, 16 Combustion engine standalone solutions to complex & aggregates system or module innovations 23 Interior 2014 Source: External market study commissioned by HELLA (2014), HELLA analysis 7 HELLA Capital Markets Day 2015 | 02 December 2015 HELLA is well positioned to benefit from the fundamental market trends in the future Lighting Electronics (selected products) (selected products) Market trends Environment/ Energy efficiency LED Cooling Valve Efficiency Fuel System and Energy Management Rear lamp Actuator technologies for ICE & PHEV powertrains Matrix-LED 48V DC/DC Efficient lighting technologies like LED Headlight Converter Safety Driver safety / automated driving 77GHz Light based assistance systems and Front radar optimal illumination Sensors for detection of the driving HD headlamps systems 24 GHz Rear environment (Advanced Front-Lighting) radar Styling Styling and comfort LED Styling Optical elements for individual styling with Headlight LED or OLED lighting technology OLED Rear Design- Enhanced personalization and lamp driven Remote keys interactions (vehicle to environment) BCM ComfortComfort Individualized and designed parts Ambient Interior Structural Lighting Health Sensor Unique combination of competence set in advanced electronics and lighting technologies 8 HELLA Capital Markets Day 2015 | 02 December 2015 Broad automotive product portfolio in strong growing areas Market growth, CAGR 2014 - 2019E Hella products (examples) Full-LED headlamps and rear lamps OLED rear lamps Engine Compartment Actuators (waste gate, TAS, TOS) Rear applications DC/DC converter Intelligent battery sensors Hybrid rear lamps Interior lighting systems Vacuum pumps Radio transmitter keys Small lamps (e.g. fog, CHMSL, side turn indicator) Electrical power steering Moderate growth: Accelerator pedal sensors 2-5% p.a. Body control modules HELLA with clear strategic focus on areas that show attractive growth potential (emission reduction, safety increase) Electronic components projected to substantially benefit from higher electronic content in future cars Multiple innovative products already on the market and innovations to come from current pipeline Source: External market study commissioned by HELLA (2014), HELLA analysis 9 HELLA Capital Markets Day 2015 | 02 December 2015 HELLA’s automotive portfolio has outperformed the market by 600bsp, acceleration to >900bsp in the last 3 years HELLA market outperformance in Automotive Sources of growth by business divisions 88 87 90 HELLA one of the 82 7% 81 85 technology leaders in +3% 75 80 LED with competence set in Light Based Assistance 70 75 Automotive 70 Systems +13%** 5,835 Lighting 65 57 5,343 LVP* 60 Next development steps +13%** 4,835 (m) 4,637 55 in lighting solutions and 4,198 50 LED penetration strong 45 organic growth drivers EUR 3,405 4,364 40 m 3,924 HELLA solutions played 2,940 3,436 3,316 35 key role in automotive 3,029 30 progress since decades 2,476 25 2,049 20 Automotive 15 Electronics Well positioned in 10 automotive trends energy 1,321 1,399 1,419 1,471 891 929 1,169 5 efficiency and automated 0 driving 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 *Global Light Vehicle Production; ** CAGR Automotive segment only (external sales) including FX 10 HELLA Capital Markets Day 2015 | 02 December 2015 Aftermarket and Special OE will contribute to growth and profitability HELLA’s positioning for future growth HELLA in market leadership positions1 Leadership in European Aftermarket # 1-3 in IAM, WD, and diagnostic Market size* 2014 (€1bn) systems HELLA Aftermarket generating Market growth, CAGR 2014-19E structurally slower but stable 6% growth Stable cash flow generation by 5% HELLA Aftermarket Future market discontinuities 4% + . Consolidation Wholesale* SOE Lighting . Digitalization 3% Europe CAGR . Changing customer preferences Wholesale** 2% IAM Garage Europe CAGR Leadership in Special OE 1% Diagnostics* IAM** # 1 in Special OE Lighting Europe 0% The transfer of competence offers 0% 10% 20% 30% 40% 50% 60% opportunities like