49
Company Presentation November 2013
Company Presentation
November 2013
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1 Track record in process optimisation and development of new markets
New senior management team
Andreas Rydzewski
With SHW since 2008
22 years experience in the automotive
supplier industry
2006 – 2008 Consultant
2002 – 2006 ThyssenKrupp Drauz
Nothelfer
CEO and Member of the Management
Board
1991 – 2002 Thyssen Umformtechnik
Member of the Management Board
Member of Management Board
Brake Discs
Sascha Rosengart
CFO
Dr. Thomas Buchholz
With SHW since 2013
23 years experience in the automotive
supplier industry
2008 – 2013 TI Automotive
Member of the Management Board
1992 – 2008 Mahle
Member of the Management Board
CEO
Pumps & Engine Components
With SHW since 2013
10 years experience in the automotive
supplier industry
2010 – 2013 Hengst Automotive
CFO and Member of the Management
Board
2003 – 2010 Tower Automotive
Finance Director Assembly Division
Europe
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2 Operational success story with strong financial results
Pumps & Engine Components
Brake Discs
Key product strength:
high fuel saving potential
Two plants in Germany, one plant in
Brazil
100% subsidiaries in Brazil and China
US and Canadian subsidiary in course
of incorporation
Number of employees: approx. 665
Product advantage: weight reduction
Casting and machining in Germany
Number of employees: approx. 370
Long-standing relationships as Tier 1 supplier
Focus on customised products for CO2-reduction
Origin in 1365
Cutting-edge technology for environmental friendly mobility
Total sales 2012: € 325 m
Pumps & Engine Components
73.1% Brake Discs
26.9%
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3
Increasingly challenging CO2-emission targets across key end-markets in
the coming years trigger fundamental changes in the automotive industry
USA EU
China Brazil
SHW’s energy-efficient solutions well positioned to benefit from increasing demand for fuel saving products
Proposed targets Historical performance Enacted targets
154
135
60
80
100
120
140
160
180
200
220
240
260
2010 2013 2016 2019 2022 2025
Gra
ms C
O2 p
er
kilo
mete
r
161
117
60
80
100
120
140
160
180
200
220
240
260
2010 2013 2016 2019 2022 2025
Gra
ms C
O2 p
er
kilo
mete
r
Stated targets (CO2 /km)
2015 2020
Passenger Cars 161 117
Stated targets (CO2 /km)
2017 2020
Passenger Cars 154 135
130
95 73
175
147
60
80
100
120
140
160
180
200
220
240
260
2010 2013 2016 2019 2022 2025
Gra
ms C
O2 p
er
kilo
mete
r
Car LCV
Source: ICCT
160
144
121
93
180
166
144
109
60
80
100
120
140
160
180
200
220
240
260
2010 2013 2016 2019 2022 2025
Gra
ms C
O2 p
er
kilo
mete
r
Car LCV
Stated targets (CO2 /km)
2015 2017 2020 2025
Passenger Cars 130 - 95 68-78
LCV - 175 147 -
Stated targets (CO2 /km)
2015 2017 2020 2025
Passenger Cars 160 144 121 93
LCV 180 166 144 109
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4 SHW’s key products mission critical to meet CO2-targets
CO2-targets of EU commission for 2020 keep OEMs under pressure
CO2-targets (g/km)
Source: ICCT
2011
2015
2020
2012
2015
2020
143
138
129
133
118
134
122
128
122
140
139
128
132
119
133
128
128
130
101
100
92
96
86
96
92
93
94
Stricter regulatory
environment worldwide
Challenging CO2-targets
Changes in measurement
cycle might effectively
further tighten standards
Compliance with CO2-targets
key driver in the automotive
industry
Focus to meet CO2-fleet
emissions is on:
Higher engine-efficiency
Weight reduction
OEMs invest heavily
worldwide
Comments
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5
Relevance of SHW products for fuel saving
Excellent match between CO2-reduction technologies and SHW’s product portfolio
1) SHW product is a component of respective technology package
Roland Berger: technologies for fuel reduction
Range possible CO2 savings
Technology
12
Saving potential in %
0 6 7 8 9 4 5 1 2 3 10 11
Camshaft phaser
1
Vacuum pump1)
2
Variable oil pump
Balancer shaft unit1)
3
4
Variable water pump
E-pump for start-stop
5
6
Aluminium camshaft phaser1)
Oil pump for dual-clutch1)
7 8
Variable valve timing / lift
Gasoline direct injection
1
2
Reduced engine friction
Downsizing
Cylinder deactivation
Start-stop
Optimised cooling circuit
Weight reduction
Electrically assisted steering
3
4
5
6
7
Dual-clutch transmission
Optimised gearbox ratios
8
Selected SHW products
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6 SHW components enable an achievement of up to more than 10% in fuel reduction
Key products mission critical to meet CO2-targets of clients
Reduced engine friction
through controlled oil
supply for engines 1 - 2%
Variable valve timing 2 - 3%
Start-stop function for
automatic transmissions,
also applicable in hybrids 3 - 6%
Selected key components Bottom line
1) New European Driving Cycle (“NEDC”)
Vari
ab
le
oil p
um
p
Fuel reduction potential1) Application SHW product
Ca
ms
ha
ft
ph
aser
Ele
ctr
ica
l o
il p
um
p
BLUE TECHNOLOGY
Focus on hybrids to reduce luxury
segment CO2-emissions
Dual clutch transmissions and
downsized gasoline engines >10%
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7
Trendsetter for CO2-relevant pumps and engine components (I)
SHW’s innovations since 2000
2011
Surface densified
sprocket
2010
Electric gearbox oil
pump for start-stop
2007
Vane pump in
engines
2006
Fixed displacement
oil-/vacuum pump
2006
Map controlled
engine oil pump
2006
Variable external
gear pump
2005
Transmission oil
pump for dual clutch
2004
Aluminium camshaft
phaser
2002
Variable
engine oil pump
2000
Balancer shaft
with oil pump
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Fixed displacement
engine oil pump
1978
First-to-market through excellence in innovation
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8
Trendsetter for CO2-relevant pumps and engine components (II)
SHW’s innovations since 2000
2013
Balancer shaft with
variable oil-/vacuum
pump
2013
Scissor gear
2012
2012
Camshaft phaser for
diesel engines
2012 2013 ….
First-to-market through excellence in innovation
Variable oil-/
vacuum-pump
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9 Pioneer in oil-pumps applications for hybrids
Hybrids represent an additional growth opportunity
Europe – Powertrain volumes (%)
2025
41%
8%
11%
24%
4%
12%
2020
50%
12%
15%
14%
2%
7%
2011
99%
1%
Internal Combustion Engine
Mild Hybrid
Strong Hybrid
Plug-in Hybrid
Range Extender
Electric Vehicle
Source: A.T. Kearney
Hybrid vehicles Electrical vehicles
0
• Mercedes S400
First European hybrid
• Chevrolet Tahoe
First US hybrid
• Chevrolet Volt / Opel
Ampera
First E-vehicle with
range extender
• Delivery of prototypes
for battery electric
vehicles
• Development of new
pump applications
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10 Successful market penetration and higher technological content
Value contribution per vehicle consistently increasing (I)
1) Increase of value per pump/brake disc for illustrative purposes only and not representative for other
components developed over the past years
Illustration of value per pump1)
0
20
40
60
80
100
Complexity
€ / per component
Fixed displacement
engine oil pump
€ 12 / unit
Variable engine oil pump
c. € 20 / unit
Electric gearbox oil pump for start-stop
c. € 80 / unit Variable oil-/
vacuum pump
c. € 40 / unit
Sales split – Pumps Passenger Cars*
Pri
ce
per
un
it
2014 2013 2012 2011
Fixed displacement pumps
Other Gearbox oil pumps
Oil-/vacuum pumps
Variable oil pumps
34.6%
35.6%
13.9%
12.6%
22.0% 18.2%
34.4% 25.7%
22.6% 25.1%
11.5% 10.9%
11.8% 17.1% 20.1% 26.3%
34.0% 31.5%
9.0%
*Column height represents sales development
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11 Successful market penetration and higher technological content
Value contribution per vehicle consistently increasing (II)
Illustration of value per disc1)
0
20
40
60
80
100
€ / per component
Unprocessed brake discs
c. € 12 / unit
Ready-to-install brake
discs
c. € 26 / unit
Composite brake discs
c. € 72 / unit
Complexity
Sales split – Brake Discs*
Pri
ce
pe
r u
nit
2014 2012 2011 2013
Ready-to-install brake discs
Composite brake discs Unprocessed brake discs
Other
17.6%
16.7% 13.9%
12.6%
56.8%
56.1% 52.2%
51.7%
22.4% 23.7% 28.7%
31.9%
3.2% 3.5% 5.3% 3.8%
1) Increase of value per pump/brake disc for illustrative purposes only and not representative for other
components developed over the past years *Column height represents sales development
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12 New order for higher volume executive car segment
Know-how and market leader for composite brake discs
Composite brake discs
Audi R8
LeMans
Porsche
Cayenne Turbo S BMW M5
Mercedes-Benz
AMG S-Class
Bentley
Mulsanne
Lamborghini
Gallardo
Porsche 911
GT3 Cup
Porsche
Panamera Turbo Audi RS 6
Composite Brake Discs - Sales (€m)
17.1
31.3
15.3 12.2
43.4 47.6
2014 2015 2012 2013 2017 2016
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13
CEO Agenda
Operational
performance
• Special focus on supply chain management optimisation to reduce logistic costs,
inventory of purchased components by implementation of state-of-the-art
production tools
• Implementation of lean management principles to increase productivity
significantly
Further Growth by
Product Innovation
• Generate further growth with new CO2-reducing product innovations (e.g.
variable transmission oil pumps and map controlled oil-/vacuum pumps)
• Reorganisation of the product development process and enhancing the project
management with focus on time to market and design to costs
• Brake Discs: development of further vehicle segments for composite brake discs
• Customers: expand customer portfolio in both business segments
Internationalisation
• Allocate adequate resources for the globalisation projects (will be integrated in
budget process)
• Define clear targets and responsibilities for the North American and Chinese
projects
• Build up competitive supplier base
Internationalisation will be financed by productivity gains
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Globalisation strategy
• Utilise global trend towards CO2-reduction
• Follow European / German OEMs for their global needs to support their global sourcing strategy
• Build-up development resources in NAFTA region
• Build-up project and management resources for global projects
• Verify joint venture and acquisition options
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15
Globalisation targets
Sales target in five years from now
(€m) 2012 2013e 2018e Growth 12-13e CAGR 12-18e**
NAFTA / Latin America 5 5 100
Asia-Pacific - - 100
Europe 320 347-357 420
Total 325 352-362 620 9.7%* 11.3%**
* Based on mid point of 2013 guidance
** CAGR 13e-18e 11.7%
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Restart in North America under way
• Formation of a sales and development
company in Toronto area
• US subsidiary in course of incorporation
• Acquisition of new orders started
• Greenfield project intended
• Acquisition targets under review
• Expansion of existing business with
Truck & Off-Highway applications
• First Prototypes for upcoming local
serial production ordered
Light vehicle production (< 6 t) – North America (m units)
Source: PwC Autofacts – October 2013
SHW seamlessly ties up with activities in US market
Source: www.edpa.org
2015
17.5
2014
16.8
2013
16.2
2012
15.4
3.6%
2017
18.4
2016
17.9
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Ramp-up in Brazil under-way, first China contracts under final negotiations
• First order by Ford in place
• Start of operation in Q4/2013
• Sub-suppliers selected
• Customer RFQ’s sales activities ongoing
Brazil, Sao Paulo (Vinhedo)
7.9%
2017
6.1
2016
5.8
2015
5.2
2014
4.7
2013
4.5
2012
4.2
Source: PwC Autofacts – October 2013
• New opportunities with OEMs
• Production building rented
• Selection of Chinese employees started
• Currently sourcing and sales activities
China, Shanghai (Jinshan district)
2013
18.5
2012
16.7
+9.7%
23.1
2014
20.7
25.2
2017
26.6
2015 2016
Light vehicle production (< 6 t) – South America (m units)
Light vehicle production (< 6 t) – China (m units)
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CFO Agenda
SAP
• SAP stabilisation concluded
• SAP optimisation, review and simplification of process flows in all departments
and modules
Controlling
• Enhancement of production controlling in the following areas:
Implementation of shop floor KPIs
Execution and monitoring of productivity roadmaps in all departments
Execution of monthly business reviews with plant management teams
Working Capital
Management
• Close monitoring of receivables and overdues
• Increase of consignment stocks for suppliers
• Re-work of the stock range controlling and planning
Internationalisation
• Support in implementing the internationalisation strategy
• Break down of strategic product and market objectives into individual measures
and activities
• Support in implementing and monitoring the objectives
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19
Financials
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Pleasing Q3 results
Clearly outperforming European car market
• Group sales: € 92.6m (+12.7%)
• Adj. EBITDA: € 11.1m (+27.1%)
• Adj. EBIT: € 7.4m (+32.4%)
• Net income from continued operations: € 4.9m (+38.0%)
• ROCE (LTM): 16.4%
• Free Cash flow: € +1.2m
• Optimisation of SAP started
• Product launches proceeded consistently stable and on schedule
Highlights Q3/2013
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Group
Sales by quarter (€m)
Q4
72.3
Q3
92.6 82.1
Q2
91.8 85.6
Q1
84.6 85.4
12.7% 7.3% -1.0%
2013
2012
6.3%
9M/2013
269.0
9M/2012
253.1
Sales (€m)
Further growth acceleration in Q3
27.1% 17.1%
-31.9%
Q4
6.2
Q3
11.1
8.7
Q2
11.0
9.4
Q1
6.5
9.6 2013
2012
EBITDA (€m) EBITDA by quarter (€m)
3.3%
9M/2012 9M/2013
10.6%
27.7 28.6
10.9%
1.4 0.0 EBITDA
Adjustments
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22
Group
14.7 14.7
EAT by quarter (€m)
+8.7%
-58.1%
Q4
1.9
Q3
4.9
3.5
Q2
4.7 4.4
Q1
1.9
4.5
38.0%
2013
2012
-7.0%
9M/2013
11.5
9M/2012
12.4
EAT (€m)
+10.0% -59.4%
Q4
3.0
Q3
6.9
5.1
Q2
6.6 6.0
Q1
2.5
6.3
36.4%
2013
2012
-7.4%
9M/2013
16.0
9M/2012
17.3
EBT (€m) EBT by quarter (€m)
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23
TOP 10 customers
1.9 2.2
Sales by customer (€m)
SHW well positioned with German OEMs
52.6
Hilite 4.8
5.2
ThyssenKrupp 9.5
8.4
PSA 7.3
Other 54.1
8.9
Volvo Cars 12.4
10.2
Ford 5.4
9.0
Porsche 16.0
12.8
BMW 28.9
30.9
Daimler 44.7
35.7
VW 67.1
67.2
AUDI 14.8
16.2
9M/2013
9M/2012
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24
Pumps & Engine Components
Sales by quarter (€m)
16.5% +9.2% +1.6%
Q4
52.8
Q3
69.9
60.0
Q2
68.6 62.8
Q1
63.3 62.3
2013
2012
Sales (€m)
P&EC back on track
23.8% +6.3%
-35.2%
Q4
3.7
Q3
9.5
7.7
Q2
8.8 8.3
Q1
5.3
8.2
2013
2012
EBITDA (€m) EBITDA by quarter (€m)
+9.0%
9M/2013
201.8
159.3
21.0 20.3
9M/2012
185.1
141.6
21.7 21.8
Passenger Car
Truck & Off-Highway
Powder Metallurgy
Other
-2.3%
9M/2013
23.6
11.7%
9M/2012
24.1
13.0%
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25
Brake Discs
Sales by quarter (€m)
2.6% +2.1% -8.1%
Q4
19.5
Q3
22.7 22.1
Q2
23.2 22.7
Q1
21.2 23.1
Sales (€m)
Brake Discs remain on the road to success
58.4%
+48.4%
+6.6%
Q4
2.5
Q3
2.0
1.2
Q2
2.6
1.7
Q1
1.5 1.4
EBITDA (€m) EBITDA by quarter (€m)
-1.2%
9M/2013
67.2
16.7
34.9
11.6 4.0
9M/2012
68.0
19.7
8.8 3.1
36.3 Unprocessed BD
Ready-to-install BD
Composite BD
Other
2013
2012
2013
2012 37.9%
9M/2013
6.1
9.0%
9M/2012
4.4
6.5%
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Capex - Depreciation
14.7 14.7
14.7
Capex* by quarter (€m)
Q3
3.7
Q2
9.2
3.3
Q1
8.1
4.6
9.3
Q4
9.6
2013
2012
Capex* (€m)
High capex for future growth
3.7
Q4
1.0
Q3
3.2
Q2
3.4 3.0
Q1
3.0 2.8
Depreciation (€m) Depreciation by quarter (€m)
2013
2012
+12.1%
9M/2013
10.2
9M/2012
9.1
11.5
130.1%
9M/2013 9M/2012
26.5
2012: calculatory depreciation;
2013: book depreciation
* Additions to tangible
and intangible assets
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27
Cash flow
5.
Again positive free cash flow despite high investments in Q3
(€m) Q3/2013 Q3/2012 9M/2013 9M/2012
Cash flow from operating activities 7.5 -1.2 7.8 3.8
Cash flow from investing activities -6.4 -3.7 -23.6 -11.5
Cash flow before financing activities
(free cash flow) 1.2 -4.9 -15.8 -7.7
Other (esp. dividend payment) 0.0 -0.4 -22.9 -6.3
Change in net cash 1.1 -5.2 -38.6 -14.0
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Working Capital influenced by higher receivables & inventories
Net Working Capital (% of sales)
Medium-term
target: 11%
11.9% 12.4%
14.3%
11.9%
13.6%
11.7%
16.1%
13.3%
16.9%
15.5% 15.9%
Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013
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29
Sound financial profile
Balance sheet as of 30 September, 2013 (€m) Balance sheet as of 31 December, 2012 (€m)*
Other short term
liabilities
(34.0%)
Pensions
(12.7%)
Current
assets
(50.5%)
Non-current
assets
(48.5%)
Equity
(39.7%)
37.9
202.1m
Equity & Liabilites
68.6
21.0
6.6
25.7
80.1
Assets
2.0
98.0
102.1
Equity ratio still around 40 percent
Cash
(1.0%)
Other short term
liabilities
(31.4%)
Pensions
(14.3%)
Current
assets
(43.6%)
Non-current
assets
(45.6%)
Equity
(50.9%)
37.9
180.9m
Equity & Liabilites
56.8
6.2
25.8
92.0
Assets
19.6
82.4
78.8
Other long
term liabilities
(3.4%)
Cash
(10.9%)
Other long term liabilities
(3.3%)
Bank debt
(10.4%)
* Adjustment pursuant IAS 19
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217/217/217
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30
3.3%
2017
18.8
2016
18.3
2015
17.5
2014
16.3
2013
15.8
2012
15.9
5.1%
2017
476,162
2016
440,135
2015
398,439
2014
358,239
2013
368,915
2012
371,980
Source: PwC Autofacts – October 2013 Source: LMC Automotive – Q3/2013
Market environment in Europe slowly brightening
Light vehicle production (< 6 t) – Europe (m units) Truck production (GVW > 6t) - Western Europe (units)
m units 2012 2013 2014 2015 2016 2017 CAGR
VW Group 4.43 4.41 4.61 4.93 4.97 4.99 2.4%
PSA Group 1.98 1.97 2.09 2.12 2.20 2.28 2.9%
Renault-Nissan 1.91 1.81 1.83 2.00 2.17 2.16 2.5%
BMW Group 1.36 1.41 1.37 1.46 1.58 1.67 4.2%
Daimler Group 1.35 1.45 1.52 1.54 1.53 1.62 3.8%
Ford Group 1.06 1.06 1.07 1.11 1.10 1.07 0.0%
GM Group 0.94 0.87 0.87 0.93 1.17 1.27 6.2%
units 2012 2013 2014 2015 2016 2017 CAGR
Mercedes-Benz 91.416 87.832 85.031 92.673 101.031 107,905 3.4%
MAN Group 63,155 59,155 57,193 62,767 68,734 73,386 3.0%
PACCAR 46,806 48,189 47,717 54,366 60,490 66,100 7.1%
IVECO Group 43,238 43,057 41,451 47,873 54,900 60,479 6.9%
Volvo 47,254 46,752 44,423 49,375 54,304 58,955 4.5%
Scania 42,744 47,572 45,732 49,875 54,000 57,934 6.3%
Renault 32,577 31,104 31,337 35,013 39,157 43,000 5.7%
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31
Outlook 2013
• Target 2013: growing stronger than underlying European market
European Union: -0.9% to 15.8 million light vehicles*
North America: +5.0% to 16.2 million light vehicles*
China: +10.7% to 18.5 million light vehicles*
• Numerous new product launches in H2, especially two variable oil-/vacuum pumps for
new 3-cylinder engines of two renowned European OEMs
• Capex cash-effective: between € 26m - € 28m
• Group sales: € 352m - € 362m (previously: € 330m - € 345m)
P&EC sales: € 264m - € 272m (previously: € 240m - € 255m)
BD sales: € 88m - € 90m (previously: around € 90m)
• Group EBITDA: : € 35m - € 38m (previous year level: € 33.9m)
*Source: PwC Autofacts – October 2013
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32
Contact Investor Relations
Michael Schickling
Head of Investor Relations & Corporate Communications
SHW AG
Wilhelmstrasse 67
73433 Aalen-Wasseralfingen
Telephone: +49 (0) 7361 502-462
E-Mail: [email protected]
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33
Back-up
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34
Strategic pillars for profitable growth in the future
Remain leading Tier I supplier for all future power train concepts
Boost further value contribution per vehicle
Increase revenue share of composite brake discs
Expand Truck & Off-Highway segment
International
expansion
Financial
performance
Trendsetting
product
solutions
Brazil: Production Part Approval Process (PPAP) in Q4/2013 / SOP in
Q1/2014 2013
Restart in North America
Targeted development of the Chinese market
Focus on sustainable high margins in Pumps & Engine Components and
further margin improvements in Brake Discs
New credit agreement ensures long-term financing
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35 Independence of each business model allows optimisation of individual production processes
SHW runs three distinct business models
Brake Discs Pumps & Engine Components
Asset intensity Medium Low High
Bad Schussenried (pumps) Wasseralfingen (sinter parts) Tuttlingen / Neuhausen
Automation High Medium Medium
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36 Focus on development and assembly is basis for success
Schussenried plant expanding continuously
• Schussenried plant is main growth driver
• Development and assembly of pumps & engine components for
passengers cars and Truck and Off-Highway applications
• New logistics centre completed in March 2013 to further improve
value chain
• Approx. 420 employees, thereof some 50 in R&D
240
210197
166
135
169167
147133
121
10792
80726964
2012 2011 2009 2005 2010 2006 2008 2007 2004 2003 2002 2001 2000 1999 1998 2013e
Sales (€m)
Share of group 3rd party sales 2012
64%
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37
Wasseralfingen plant: production of sinter metal components
• Press - Sinter - Sizing produces near net shape
components, ready for assembly with minimum or no
machining
• Steel and aluminium sinter components for engines
and transmissions
• Approx. 245 employees
• 34 employees in Corporate Center (Finance, Tax,
Legal and Human Resources)
9%
Pleasant development of location due to improved manufacturing technology
Share of group 3rd party sales 2012
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38
Brake discs compose second business segment
• Foundry in Tuttlingen
• New production of composite brake discs and machining
in Neuhausen
• Rationalisation investments in Tuttlingen in the last years
• 365 employees
27%
Automation as the basis for improved profitability
Share of group 3rd party sales 2012
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39 Partner of choice for leading OEMs and other automotive suppliers
Wide range of application areas and supplier to leading customers
Passenger Cars (2012: 91.6% of total sales) Truck & Off-Highway (2012: 8.4% of total sales)
Gasoline and diesel engines
Hybrid vehicles
Automatic transmissions
Agriculture Construction
Power generation Wind energy
Medium & heavy trucks
E-motor Brake discs
0/77/160
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40
40,3 25,6 13,0 16,7
Truck & Off-Highway segment an important pillar for SHW’s future profitable growth
Untapped growth potential in Truck & Off-Highway business
Sales split by end market (%) Key strengths
Selected customer portfolio
Strong relationships with current
customers
Leveraging technological competence
with competitors of existing
customers
Focus on attractive Truck & Off-
Highway segment:
Higher margin business
Strong growth expectations
Good understanding of product
requirements and market segment
Agriculture Construction
Medium &
heavy trucks E-motor pumps Power generation Wind energy
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41 Unique position in sinter aluminium and composite brake discs
SHW is innovation leader for weight reduction of automotive parts
Key strengths
Example: SHW’s composite brake disc with aluminium pot
Example: SHW’s camshaft phaser made of sintered aluminium
Camshaft phaser
SHW only mass producer of sinter
aluminium parts in Europe
Leading market position in sinter
parts for camshaft phasers
Continuous expansion of sinter
aluminium products
Key strengths
Composite brake discs with
aluminium pot reduce weight
Weight reduction of unsprung
masses improves driving
performance
Riveted disc
Weight
reduction c. 2.0kg / disc
Monobloc Multi-piece
Composite
disc
Standard
casted disc
AWARD
“Award for
Excellence in
Powder Metallurgy”
for aluminium
camshaft phaser
components
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42
CUSTOMER RELATIONSHIPS
Long lasting customer relationships to
leading OEMs
Preferred solution provider and R&D
partner
Constantly renewed / subsequent
orders
TECHNOLOGICAL KNOW-HOW
Long lasting track-record of innovations
(i.e. variable oil pumps, camshaft
phasers, oil-/vacuum pumps)
Mission critical products for efficient
use of engines
Proven quality track record and delivery
reliability
COST EFFICIENT PRODUCTION
Asset light business model for Pumps
& Engine Components
High grade of automation
Lean organisational structure
COMPETENCE IN MATERIALS
Long lasting experience in powder
metallurgy
Only European supplier of aluminium
sinter components via serial production
High entry barriers protect SHW’s market position in competitive environment
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43
Competitive environment: Passenger Cars
Overview of key competitors in main product categories
Fixed displacement
pumps
Variable oil pumps
Oil-vacuum pumps
Oil-water pumps
Balancer shaft units
Electrical transmission
oil pumps
Mechanical transmission
oil pumps
SHW’s expansion of its product portfolio into related product groups has clearly enhanced its competitive edge
Sales (€m)
(Year)
290
(2010a)n/a n/a
4,693
(2009)n/a
213
(2009)
31
(2009)
12,117
(2009)
3,864
(2009)
312
(2009)
293
(2009)
150
(n/a)
26
(2008)
840
(2010e)n/a
826
(2009)n/a
405
(2009)
Variable oil
pump
Invariable oil
pump
Electrical oil
pump
Vacuum
pump
Balancer shaft
unit
Camshaft
phaser
Water pump
Sinter
products
Lightweight
brake discs
Sales (€m)
(Year)
290
(2010a)n/a n/a
4,693
(2009)n/a
213
(2009)
31
(2009)
12,117
(2009)
3,864
(2009)
312
(2009)
293
(2009)
150
(n/a)
26
(2008)
840
(2010e)n/a
826
(2009)n/a
405
(2009)
Variable oil
pump
Invariable oil
pump
Electrical oil
pump
Vacuum
pump
Balancer shaft
unit
Camshaft
phaser
Water pump
Sinter
products
Lightweight
brake discs
Sales (€m)
(Year)
290
(2010a)n/a n/a
4,693
(2009)n/a
213
(2009)
31
(2009)
12,117
(2009)
3,864
(2009)
312
(2009)
293
(2009)
150
(n/a)
26
(2008)
840
(2010e)n/a
826
(2009)n/a
405
(2009)
Variable oil
pump
Invariable oil
pump
Electrical oil
pump
Vacuum
pump
Balancer shaft
unit
Camshaft
phaser
Water pump
Sinter
products
Lightweight
brake discs
Sales (€m)
(Year)
290
(2010a)n/a n/a
4,693
(2009)n/a
213
(2009)
31
(2009)
12,117
(2009)
3,864
(2009)
312
(2009)
293
(2009)
150
(n/a)
26
(2008)
840
(2010e)n/a
826
(2009)n/a
405
(2009)
Variable oil
pump
Invariable oil
pump
Electrical oil
pump
Vacuum
pump
Balancer shaft
unit
Camshaft
phaser
Water pump
Sinter
products
Lightweight
brake discs
P
P
P
P
P
P
P
Vacuum pumps P
Engine
Transmission
Braking system
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44
Competitive environment: Truck & Off-Highway
Overview of key competitors in main product categories
Engine oil pumps
Transmission oil pumps
Fuel pumps
Engine oil pumps
Transmission oil pumps
Fuel pumps
Engine oil pumps
Transmission oil pumps
Sales (€m)
(Year)
290
(2010a)n/a n/a
4,693
(2009)n/a
213
(2009)
31
(2009)
12,117
(2009)
3,864
(2009)
312
(2009)
293
(2009)
150
(n/a)
26
(2008)
840
(2010e)n/a
826
(2009)n/a
405
(2009)
Variable oil
pump
Invariable oil
pump
Electrical oil
pump
Vacuum
pump
Balancer shaft
unit
Camshaft
phaser
Water pump
Sinter
products
Lightweight
brake discs
Sales (€m)
(Year)
290
(2010a)n/a n/a
4,693
(2009)n/a
213
(2009)
31
(2009)
12,117
(2009)
3,864
(2009)
312
(2009)
293
(2009)
150
(n/a)
26
(2008)
840
(2010e)n/a
826
(2009)n/a
405
(2009)
Variable oil
pump
Invariable oil
pump
Electrical oil
pump
Vacuum
pump
Balancer shaft
unit
Camshaft
phaser
Water pump
Sinter
products
Lightweight
brake discs
Sales (€m)
(Year)
290
(2010a)n/a n/a
4,693
(2009)n/a
213
(2009)
31
(2009)
12,117
(2009)
3,864
(2009)
312
(2009)
293
(2009)
150
(n/a)
26
(2008)
840
(2010e)n/a
826
(2009)n/a
405
(2009)
Variable oil
pump
Invariable oil
pump
Electrical oil
pump
Vacuum
pump
Balancer shaft
unit
Camshaft
phaser
Water pump
Sinter
products
Lightweight
brake discs
Sales (€m)
(Year)
290
(2010a)n/a n/a
4,693
(2009)n/a
213
(2009)
31
(2009)
12,117
(2009)
3,864
(2009)
312
(2009)
293
(2009)
150
(n/a)
26
(2008)
840
(2010e)n/a
826
(2009)n/a
405
(2009)
Variable oil
pump
Invariable oil
pump
Electrical oil
pump
Vacuum
pump
Balancer shaft
unit
Camshaft
phaser
Water pump
Sinter
products
Lightweight
brake discs
Sales (€m)
(Year)
290
(2010a)n/a n/a
4,693
(2009)n/a
213
(2009)
31
(2009)
12,117
(2009)
3,864
(2009)
312
(2009)
293
(2009)
150
(n/a)
26
(2008)
840
(2010e)n/a
826
(2009)n/a
405
(2009)
Variable oil
pump
Invariable oil
pump
Electrical oil
pump
Vacuum
pump
Balancer shaft
unit
Camshaft
phaser
Water pump
Sinter
products
Lightweight
brake discs
P
P
P
P
P
P
P
Fuel pumps
Agricultural /
Construction
vehicles
Trucks
Stationary
engines
P
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45
Competitive environment: Powder Metallurgy
Overview of key competitors in main product categories
Components for engine oil pumps
Components for transmission oil
pumps
Synchroniser hubs
Camshaft sprockets
Aluminium camshaft phaser
Iron camshaft phaser
Belt pulleys and chain sprockets
Sales (€m)
(Year)
290
(2010a)n/a n/a
4,693
(2009)n/a
213
(2009)
31
(2009)
12,117
(2009)
3,864
(2009)
312
(2009)
293
(2009)
150
(n/a)
26
(2008)
840
(2010e)n/a
826
(2009)n/a
405
(2009)
Variable oil
pump
Invariable oil
pump
Electrical oil
pump
Vacuum
pump
Balancer shaft
unit
Camshaft
phaser
Water pump
Sinter
products
Lightweight
brake discs
P
P
P
P
P
P
P
P
o
r
i
t
e
0/77/160
171/195/223
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46
Competitive environment: Brake Discs
Overview of key competitors in main product categories
Proven technological leadership by being first to market in all product categories
P
P
P
Sale
s (€m
)
(Year)
290
(2010a)
n/a
n/a
4,6
93
(2009)
n/a
213
(2009)
31
(2009)
12,1
17
(2009)
3,8
64
(2009)
312
(2009)
293
(2009)
150
(n/a
)
26
(2008)
840
(2010e)
n/a
826
(2009)
n/a
405
(2009)
Varia
ble
oil
pum
p
Inva
riable
oil
pum
p
Ele
ctrical o
il
pum
p
Vacu
um
pum
p
Bala
nce
r shaft
unit
Cam
shaft
phase
r
Wate
r pum
p
Sin
ter
pro
ducts
Lig
htw
eig
ht
bra
ke d
iscs
Lightweight
composite
brake discs
Ready-to-
install brake
discs
Unprocessed
ventilated
brake discs
Country
SHW AG Brembo S.p.A. Buderus Guss
GmbH
Fritz Winter Eisen-
gießerei GmbH &
Co. KG
Lingotes
Especiales, S.A.
Fonderia di
Torbole S.p.A.
0/77/160
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47 Sales driven by organic growth with innovative products
Historical Sales Development (excluding STT)
Sales (€m)
162 178 197 194
152 185
225 238
264- 272
71 79
87 92
65
79
92 87
88-90
0
50
100
150
200
250
300
350
400
2005 2006 2007 2008 2009 2010 2011 2012 2013e
Brake Discs
P&EC
5.5%*
* CAGR 2005-2013e based on mid-point 2013e values.
0/77/160
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48
Disclaimer
This document, which has been issued by SHW AG (the “Company” or “SHW”), does not constitute an offer to sell, or the solicitation of an offer to subscribe for or
buy, any shares in the Company, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or
investment decision in relation thereto.
The contents of this presentation are may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part,
for any purpose. Neither the Company nor any other party is under any duty to update or inform you of any changes to such information. In particular, it should be
noted that financial information relating to the Company contained in this document has not been audited and in some cases is based on management information
and estimates.
This material is given in conjunction with an oral presentation and should not be taken out of context.
Certain market data and financial and other figures (including percentages) in this document were rounded in accordance with commercial principles. Figures
rounded may not in all cases add up to the stated totals or the statements made in the underlying sources. For the calculation of percentages used in the text, the
actual figures, rather than the commercially rounded figures, were used. Accordingly, in some cases, the percentages provided in the text may deviate from
percentages based on rounded figures.
Certain statements in this presentation are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and
assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward‐looking statements. These risks,
uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. The Company does not
undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as
otherwise required by applicable laws and regulations. You should not place undue reliance on forward-looking statements, which speak as only of the date of this
presentation. Statements contained in this presentation regarding past trends or events should not be taken as a representation that such trends or events will
continue in the future.
