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