SCHULER 175 YEARS OF FUTURE CAPITAL MARKET DAY ANDRITZ MUNICH, OCTOBER 8, 2013
AGENDA 1 2 3 4 5 6 Schuler at a glance Market footprint of schuler worldwide Technology fields and range of products Our strategy Growth, innovation and efficiency Financial performance Financial outlook 10/7/2013 COMPANY PRESENTATION 2
SCHULER AT A GLANCE
SCHULER AT A GLANCE Facts and figures Technological and global market leader in the metal forming industry Founded 1839 in Göppingen, Germany Products: Cutting edge presses, automation, dies, process know how, and services for the entire metalforming industry and lightweight vehicle construction Top tier customers: Car manufacturers and their suppliers, packaging, household equipment, aerospace, minting Innovation by technology: Key to our success Schuler Group 2011/12 Sales New orders EBITDA EBITDA margin EBIT EBIT margin Employees incl. apprentices 1.2 bn. 1.3 bn. 118.3 m. 9.6% 95.8 m. 7.8 % 5,443 10/7/2013 COMPANY PRESENTATION 1 as of 09/30/2012 4
MARKET FOOTPRINT OF SCHULER WORLDWIDE
OUR GLOBAL CUSTOMER BASE Automotive OEM Tier 0.5 Tier 1 3 Appliances Railway Aerospace Defense Large Pipes Minting Drives and Generators Packaging 10/7/2013 COMPANY PRESENTATION 6
CUSTOMER REFERENCES MARKET AND TECHNOLOGY LEADERSHIP SINCE 1839 10/7/2013 COMPANY PRESENTATION 7
SCHULER WORLDWIDE USA Canton, MI Germany Great Britain Walsall USA Hastings, MI 32% Spain Barcelona Poland Kędzierzyn Koźle Slovakia Dubnica nad Váhom China Beijing, Jinan, Tianjin Thailand Bangkok France Strasbourg Switzerland Gettnau Italy Turin Mexico Puebla, Saltillo 20% Brazil São Paulo 10/7/2013 COMPANY PRESENTATION China Shanghai, Dalian 33% Russia Moscow India Mumbai, Pune Production & Service Service 8
TECHNOLOGY FIELDS RANGE OF PRODUCTS
PRESS TECHNOLOGY FOR THE AUTOMOTIVE INDUSTRY Press Lines Transfer and ProgDie Presses Tryout Systems 10/7/2013 COMPANY PRESENTATION 10
MASSIVE FORMING TECHNOLOGY FOR THE AUTOMOBILE INDUSTRY, RAILWAY AND AEROSPACE Systems for Cold Forging Systems for Warm Forging Systems for Hot Forging 10/7/2013 COMPANY PRESENTATION 11
HIGHSPEED TECHNOLOGY FOR THE MASS PRODUCTION Packaging Industry Minting Technology Manufacturing of Electric Motor Laminations 10/7/2013 COMPANY PRESENTATION 12
AUTOMATION SOLUTIONS EFFICIENT FROM COIL (UP) TO END OF LINE Blanking Lines From Press to Press End of Line Automation 10/7/2013 COMPANY PRESENTATION 13
PROCESS TECHNOLOGY FROM THE SIMULATION TO SERIES PRODUCTION Engineering Autobody Tools/Transfer Dies Manufacturing 10/7/2013 COMPANY PRESENTATION 14
SCHULER SERVICE MORE PRODUCTIVITY BY IDEAL SERVICE Productivity Safety Partnership Future Competence Inspection and inspection PLUS Pre emptive assessment Overhauling Oil analysis and service Calibration Hotline and hotline PLUS Remote Service Spare part, packet, maintenance kit chain Security check (UVV) and security check PLUS Repair welding Service contracts Used machines At home in Germany Worldwide onsite Service brands Overhauling Modernization Plantand processoptimizing Energy efficiency Plant relocation Schuler academy Individual customer training Production support and services 10/7/2013 COMPANY PRESENTATION 15
OUR STRATEGY GROWTH, INNOVATION AND EFFICIENCY
GROWTH INNOVATION EFFICIENCY GROWTH OF AUTOMOBILE MARKET 2012 19 Light vehicle production in million units CAGR +4.3% 79.0 16.4 21.8 3.5 83.1 18.9 22.4 3.8 15.6 89.0 21.4 23.6 4.3 16.3 2.2 16.2 27.4 million 94.7 23.5 24.6 4.5 17.3 15.8 1.8 2.0 2.4 2.5 2.6 2.6 2.7 15.4 15.8 17.1 17.5 17.9 17.9 18.2 4.3 4.6 5.0 5.3 5.9 6.3 6.3 7.0 2012 2013 2014 2015 2016 2017 2018 2019 98.8 25.2 25.0 4.8 17.9 102.2 26.2 25.8 5.0 18.4 102.2 26.2 25.8 5.0 18.4 106.4 28.1 26.5 5.2 18.7 China Asia (w/o CN) East Europe EU Middle East/Africa North America South America CAGR 2012 19 6.9% 2.8% 5.2% 3.1% 5.7% 2.4% 7.2% 10/7/2013 COMPANY PRESENTATION Source: PwC Autofacts: The North American Automotive Industry Mid Term Outlook, February 8, 2013 17
GROWTH INNOVATION EFFICIENCY PWC AUTOFACTS: GROWTH PER REGION 2012 2019 East Europe 1.7m EU 2.9m North America 2.8m Developing Asia Pacific 17.2m Σ Growth light vehicle production: +27.4m South America 2.7m Middle East/Africa 0.9m 10/7/2013 COMPANY PRESENTATION Developed Asia Pacific 0.8m Source: PwC Autofacts: The North American Automotive Industry Mid Term Outlook, February 8, 2013 18
GROWTH INNOVATION EFFICIENCY DRIVING GROWTH ACROSS THE PORTFOLIO Expanding into other promising segments whilst maintaining a strong focus on the automotive sector (OEM; Tier 0.5; Tier 1 3) Identification and definition of industry groups besides automotive with substantial growth potential (e.g. packaging, drives & generators) Re alignment of the sales force towards targeted growth industries Diversification of customer base improves stability of the business and reduces cyclicality 20% 50% 30% OEM Supplier Non Autonative Automotive OEM Tier 0.5 Tier 1 3 Appliance Railway Aerospace Defense Large Pipes Minting Drives & Generators Packaging Diversify revenue growth and capitalize on opportunities beyond strong market position in automotives 10/7/2013 COMPANY PRESENTATION 19
MACHINE TOOLS MARKET DEVELOPMENT CHINA IS THE WORLD S LARGEST MACHINE TOOLS MARKET WITH 15 BILLION TURNOVER (2012) Production in billion GROWTH INNOVATION EFFICIENCY 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Germany USA Japan China 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 10/7/2013 COMPANY PRESENTATION Quelle: VDW 20
GROWTH INNOVATION EFFICIENCY MARKET DEVELOPMENT IN CHINA CHANGES FOR GERMAN ENGINEERING COMPANIES* Mid price market segment will develop into the largest sub segment of the Chinese engineering market over the next 3 5 years Every fourth German engineering company will have research and development units in China in 3 5 years time Dual business model indispensable for the success of German engineering companies Global expansion and securing of premium range (via innovation) Simultaneous tapping of mid price market segment with new customer groups * Source: China research study of the Institute for SME Research at the University of Mannheim in 10/7/2013 COMPANY PRESENTATION cooperation with the German Engineering Federation (VDMA) 21
GROWTH INNOVATION EFFICIENCY ASIA IN FOCUS EXPANSION OF PRODUCTION AND PROXIMITY TO CUSTOMERS IN CHINA NEW PLANT IN DALIAN: Capacities tripled up to 16,000 square meters, investment volume of approx. 16 million IN SHANGHAI Strategic procurement, supply management, local engineering capacities to be established EXPANSION OF SALES AND SERVICE IN CUSTOMER REGIONS Beijing Dalian Shanghai 10/7/2013 COMPANY PRESENTATION 22
GROWTH VIA IMPROVED SERVICE OFFERINGS INCREASING SALES BY EXPANDING SERVICE PORTFOLIO Growing importance of comprehensive Life Cycle Support and Performance Enhancements for Customer Machinery Installed production base of over 20,000 presses GROWTH INNOVATION EFFICIENCY Realignment and expansion of service range, e.g. service contracts 30% 30% 40% Retrofits Spare parts Repairs, maintenance, others Service (in million) FY 2009/2010 FY 2010/2011 FY 2011/2012 Sales 168.3 216.6 224.7 10/7/2013 COMPANY PRESENTATION 23
GROWTH INNOVATION EFFICIENCY SERVODIRECT TECHNOLOGY REVOLUTIONIZED THE PRESS WORLD Innovation in high technology The ServoDirect drive technology increases flexibility and productivity. 10/7/2013 COMPANY PRESENTATION 24
GROWTH INNOVATION EFFICIENCY CARBON FORMING: RESIN TRANSFER MOULDING FOR CARBON FIBER REINFORCED PLASTICS (CFRP) Innovation in high technology Carbon Forming enables higher component rigidity with reduced weight in lightweight automobile construction. 10/7/2013 COMPANY PRESENTATION Source: BMW 25
GROWTH INNOVATION EFFICIENCY IMPROVED EFFICIENCY BY STRATEGY PROGRAM PROGRAM LAUNCHED FOR COOPERATION BETWEEN ANDRITZ AND SCHULER AIM: Discover potential for optimization and possible synergies MODULES: PROCUREMENT IT TREASURY COMMUNICATION LEGAL COMPLIANCE SYNERGY POTENTIAL ESPECIALLY IN THE FIELD OF PROCUREMENT AND IT FROM POOLING PURCHASING VOLUMES RENEGOTIATION OF SYNDICATED LOAN AGREEMENT SUCCESSFULLY COMPLETED: Continuation of existing syndicated loan agreement ( 450 million, expires in September 2016) with significant interest savings 10/7/2013 COMPANY PRESENTATION 26
FINANCIAL PERFORMANCE
SUCCESSFUL YEARS: SALES DOUBLED, EBITDA QUADRUPLED Sales EBITDA In million In million In % 650.3 958.5 1,226.1 2009/10 2010/11 2011/12 200 180 160 140 120 100 80 60 40 20 0 4.6% 30.0 8.8% 84.8 9.6% 118.3 2009/10 2010/11 2011/12 10/7/2013 COMPANY PRESENTATION 28 10 9 8 7 6 5 4 3 2 1 0
SUCCESSFUL YEARS: NEW ORDERS AND SALES AT RECORD LEVELS New Orders Sales In million In million Rest of World Asia Americas Rest of Europe Germany 818.4 11.3 283.7 195.2 69.1 259.0 +61.2% +37.7% +4.2% +343.7% +60.3% 1,319.0 1,300.9 3.2 1.4% 4.6 390.7 +2.1% 399.1 203.4 19.1% 164.6 306.6 41.2% 180.4 415.1 552.3 +33.0% Rest of World Asia Americas Rest of Europe Germany 650.3 9.2 155.8 154.7 106.6 224.0 +47.4% +98.2% +24.8% +43.0% +32.5% 958.5 7.3 308.8 193.1 152.4 297.0 +27.9% +29.9% 6.9% +61.2% +33.0% 1,226.1 4.5 401.2 179.8 245.7 394.9 2009/10 2010/11 2011/12 2009/10 2010/11 2011/12 10/7/2013 COMPANY PRESENTATION 29
MOST NEW ORDERS FROM GERMANY AND ASIA Germany 42% Asia* Americas** 13% Europe without Germany 31% 14% * Incl. other regions ** North and South America Legend: Production sites of Schuler Basis: FY 2011/12 10/7/2013 COMPANY PRESENTATION 30
EQUITY CONTINUOUSLY STRENGTHENED Net Financial Status In million Equity In million Equity ratio (%) 244.6 137.8 100.2 205.2 116.8 27.1 1900 1900 1900 16.1 22.9 106.3 09/30/2010 09/30/2011 09/30/2012 09/30/2010 09/30/2011* 09/30/2012 10/7/2013 COMPANY PRESENTATION * Prior year figures adjusted according to IAS 19 rev. (2011) 31
STABLE DEVELOPMENT IN FIRST NINE MONTHS OF 2012/13 Key figures (in million) 9 months 2011/12 9 months 2012/13 Change New orders 1,046.3 836.5 20.1% Sales revenues 877.8 851.6 3.0% Order backlog (1) 1,204.2 1,095.5 9.0% Sales of 851.6 million only slightly down on previous year Fall in new orders ( 20.1%) EBITDA EBITDA margin 84.1 9.6% 83.1 9.8% 1.2% EBITDA margin increased to 9.8% EBIT EBIT margin 68.2 7.8% 65.5 7.7% 4.0% Group profit 34.5 34.6 +0.3% Employees (1) (2) 5,347 5,563 +4.0% (1) 10/7/2013 COMPANY PRESENTATION as of June 30 32 (2) incl. apprentices
FINANCIAL OUTLOOK
POSITIVE OUTLOOK FOR 2012/13 INNOVATIVE STRENGTH AUTOMOTIVE INDUSTRY FOCUS ON KEY GROWTH DRIVERS Market and technological leader Comprehensive experience and know how Remains most important market Prospects remain highly promising Existing business as stable basis Focus on important Asian markets Schuler positioning itself in fastest growing markets RELIABLE BUSINESS OUTLOOK 2012/13: New orders between 1.0 and 1.1 billion Sales of around 1.2 billion EBITDA margin of almost 10% 10/7/2013 COMPANY PRESENTATION 34
DISCLAIMER This presentation contains forward looking statements which are subject to risks and uncertainties, in particular regarding future events, future development of value, plans, strategies, expectations, outlook, including statements in connection with potential profits. Schuler AG has based these statements with regard to the future on its expectations with regard to future events and development of value. The actual development may depart significantly from the predictions made in the statements with regard to the future because of the uncertainty which is inherent in estimates, predictions and prognoses. Schuler AG shall not assume any obligation to update the statements with regard to the future and the associated estimates and assumptions, unless there are mandatory statutory provisions to the contrary. Schuler AG shall not assume any warranty for the information provided in this presentation being up to date, accurate, complete or of good quality or for the suitability of the information for specific purposes. Any liability of Schuler AG for loss caused by the use or non use of the information provided or by wrong or incomplete information is excluded. 10/7/2013 COMPANY PRESENTATION 35
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