FTE Holding GmbH Bond Presentation Financial Figures 2016 May 5 th - - PowerPoint PPT Presentation

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FTE Holding GmbH Bond Presentation Financial Figures 2016 May 5 th - - PowerPoint PPT Presentation

FTE Holding GmbH Bond Presentation Financial Figures 2016 May 5 th , 2017 FTE automotive Innovation drives Disclaimer This document and any related presentations have been prepared by FTE Holding GmbH (the Company) and its consolidated


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FTE automotive – Innovation drives

FTE Holding GmbH Bond Presentation Financial Figures 2016

May 5th, 2017

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FTE automotive – Innovation drives Financial Figures - 2016 2 FTE Holding GmbH

Disclaimer

This document and any related presentations have been prepared by FTE Holding GmbH (the “Company”) and its consolidated subsidiaries (the “Group”) solely for use at its presentation to investors held in connection with the presentation of its financial results. The information contained in these materials (“Information”) has been provided by the Company and not been independently verified. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company’s financial or trading position or prospects. The information and opinions in these materials are provided as at the date of this presentation and are subject to change without notice. Neither the Company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of these materials or their contents or

  • therwise arising in connection with the materials, or any action taken buy you or any of your officers, employees, agents or associates on the basis of the Information.

The Information contained herein does not constitute investment, legal, accounting, regulatory, taxation or other advice and the Information does not take into account your investment objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters and the market and for making your own independent assessment of the Information. You are solely responsible for seeking independent professional advice in relation to the Information. Investors and prospective investors in the securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such issuer and the nature of the securities. This document contains, and any related presentation may contain, financial information regarding the businesses and assets of the Group. Such financial information may not have been audited, reviewed or verified by any independent accounting firm. The inclusion of such financial information in this document or any related presentation should not be regarded as a representation or warranty by the Group or its affiliates, advisors or representatives or any other person as to the accuracy or completeness of such information’s portrayal of the financial condition or results of operations by the Group and should not be relied upon when making an investment decision. This presentation includes certain forward-looking statements. Actual results could differ materially from those included in the forward-looking statements due to various risks and uncertainties, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings and availability of financing. This document and any related presentation does not constitute an offer or invitation to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. Any decision to purchase securities in the context of an offering should be made on the basis of information contained in the offering memorandum published in relation to such an offering. Any securities offered by the Company or any of its subsidiaries have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption to registration, or in any other jurisdiction absent compliance with the securities laws of such jurisdiction. This document may not be acted on or relied on by persons who are not eligible to invest in securities offered by the Company. Any investment or investment activity to which this communication relates is available only to persons eligible to invest in securities offered by the Company and will be engaged in

  • nly with such persons.

By receiving this document or participating in this presentation, you agree to be bound by the foregoing limitations.

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FTE automotive – Innovation drives Financial Figures - 2016 3 FTE Holding GmbH

Presentation of FTE Holding GmbH Financial Figures 2016

Andreas Thumm, CEO Niklas Beyes, CFO

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FTE automotive – Innovation drives Financial Figures - 2016 4 FTE Holding GmbH

Leading Global Automotive Supplier of Mission Critical Products

Sales Breakdown

2016 Sales: € 551 million Hydraulic Clutches

(51% of 2016 Sales)

Brakes

(24% of 2016 Sales)

Other

(11% of 2016 Sales)

DCT

(14% of 2016 Sales)

What Does It Do?

  • Mechanism for

connecting and disconnecting an engine and the transmission system in a vehicle

  • Application in manual

transmissions

  • Device for slowing or

stopping a moving vehicle, typically by applying pressure to the wheels

  • Brake calipers
  • Components used for

clutch and brake applications - largely spare parts

  • Electro hydraulic

products

  • DCT (dual clutch

transmission) is an automatic transmission system with two parallel clutches Average Content per Car

  • €10 - €30
  • €10 - €40
  • N/A
  • €20 - €80
  • Core business

accounting for majority of profits

  • Defendable business

with attractive margins

  • Solid mid-term growth

potential

  • Adjacent business to

Clutches

  • Sale to OEMs but

also into aftermarket, which offers attractive margins

  • Mostly aftermarket

business ‒ Resilient business ‒ Attractive margins

  • Attractive, high growth

with DCT technology IAM 22% OEM 73% Europe (w/o Germany) 39% Germany 29%

By Channel By Geography

Key Products

  • Master and slave

cylinders

  • Concentric slave

cylinders

  • Clutch pipe

assemblies

  • Includes some spare

parts (aftermarket)

  • Drum brakes
  • Wheel cylinders
  • Brake-pipe systems
  • Brake boosters
  • Includes some spare

parts (aftermarket)

  • Brake calipers
  • Spare parts

(aftermarket)

  • Controlled pistons

(CPx)

  • Special hydraulics
  • CSC for dual clutch
  • Lubrication oil pump
  • Gear shift module

Americas 13% RoW 1% Asia 18% OES 5%

Top OEM Customers

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FTE automotive – Innovation drives Financial Figures - 2016 5 FTE Holding GmbH

FTE market position Global market / technology leader New applications and products New products with metal-to-plastic substitution New products Mid-size player, lower strategic focus area Channel coverage OE + AM OE + AM OE + AM AM OE + AM Products

CMC / CSC Con- centric CSC Clutch Pipes / Hoses Sensors GSM DCT CPx Park- Lock Actuator1 Cooling Oil Valves Trans- mission Fluid Pump Lubri- cation Oil Pump Cooling Oil Pump1 Start- Stop Pump1 Brake caliper remanu- facturing Brake hoses Brake boosters

MT / AMT

     

DCT

          

AT

     

CVT

   

Hybrid / electric powertrain

      

 Product use within application

Manual Shift Technology Electric Shift Technology Electric Pump Technology Brake Reman Brake Actuation

Overview of FTE product portfolio

Notes: 1 Not yet in serial production

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FTE automotive – Innovation drives Financial Figures - 2016 6 FTE Holding GmbH

Revenues

Quarterly Revenues

€ million

Growth rate by region: +33% in Asia +6% in Europe

  • 1% in Americas

Growth rate by product group: +72% for EST / EPT products +3% for BAT products

125.8 134.4 124.4 138.8 147.9 133.1 131.5

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

120.3

Revenues

€ million

Revenues in 2016 were impacted by:

  • growing business for EST / EPT products

in China and Europe

504.9 551.3

2015 2016

9.2%

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FTE automotive – Innovation drives Financial Figures - 2016 7 FTE Holding GmbH

Adjusted EBITDA

21.6 23.0 22.1 22.7 27.4 23.4 21.2

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

20.1

Adjusted EBITDA

€ million

Adjusted EBITDA in 2016 was mainly impacted by:

  • higher sales volume
  • lower one-time expenses
  • partly offset by unfavorable currency effects

compared to previous year

86.8 94.7

2015 2016

9.1%

Quarterly Adjusted EBITDA

€ million

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FTE automotive – Innovation drives Financial Figures - 2016 8 FTE Holding GmbH

Capital Expenditure and Trade Working Capital

Quarterly Capex

€ million

Capex in 2016: €°33.9 million in 2015: €°29.9 million In 2016 Capex included investments:

  • in new customer projects (~14m€)
  • for replacement and cost reduction projects (~6m€)
  • for capitalization of R&D costs (~10m€)
  • for other (~4m€)

Trade working capital in 2016 was mainly driven by:

  • growing business

5.5 7.3 8.7 258.7 6.2 8.1 8.1 11.5

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

8.4 133.5 140.3 119.8 151.1 154.4 154.8 123.7

Mar 31, 2015 Jun 30, 2015 Sep 30, 2015 Dec 31, 2015 Mar 31, 2016 Jun 30, 2016 Sep 30, 2016 Dec 31, 2016

140.4

Trade working capital

€ million

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FTE automotive – Innovation drives Financial Figures - 2016 9 FTE Holding GmbH

Net Cash Flow from operating activities and Cash

Quarterly Net Cash Flow from operating activities (incl. interests and taxes)

€ million

Net Cash Flow from operating activities in 2016: € 49.4 million in 2015: € 45.4 million Net Cash Flow from operating activities in 2016 was mainly impacted by:

  • higher working capital for growing business
  • higher severance payments
  • lower tax reimbursements
  • bond interest payments of € 12 million

in January and July each Cash was mainly affected by:

  • partial RCF repayment of € 5 million

in Q4-2015, Q2&Q4-2016 each

  • bond interest payments of € 12 million

in January and July each

  • 4.5

10.8 31.3

  • 18.2

23.2 6.1 38.3

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

7.8 19.6 23.0 40.5 15.7 25.8 24.5 46.8

Mar 31, 2015 Jun 30, 2015 Sep 30, 2015 Dec 31, 2015 Mar 31, 2016 Jun 30, 2016 Sep 30, 2016 Dec 31, 2016

22.8

Cash

€ million

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FTE automotive – Innovation drives Financial Figures - 2016 10 FTE Holding GmbH

Net Financial Debt and Last Twelve Months Adjusted EBITDA

232.8 257.6 243.8 216.5

Dec 31, 2015 Mar 31, 2016 Jun 30, 2016 Sep 30, 2016 Dec 31, 2016

242.5

Net financial debt

€ million

86.8 87.9 92.3 95.6 94.7

Dec 31, 2015 Mar 31, 2016 Jun 30, 2016 Sep 30, 2016 Dec 31, 2016

Adjusted EBITDA LTM

€ million

2.7 2.9 2.6 2.6 2.3

Dec 31, 2015 Mar 31, 2016 Jun 30, 2016 Sep 30, 2016 Dec 31, 2016

Ratio of net financial debt to Adjusted EBITDA LTM

€ million

  • Cash amount and net financial debt were affected

by interest payments of € 12 million Q1&Q3-2016 each; partial RCF repayment of € 5.0 million Q2&Q4-2016 each

  • Adjusted EBITDA LTM was at € 94.7 million,

mainly due to growing business

  • Leverage at 2.3x as a consequence of net debt

development

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FTE automotive – Innovation drives Financial Figures - 2016 11 FTE Holding GmbH

Glossary of Terms

Glossary of Terms

AM Aftermarket AMT Automated manual transmission AT Automatic transmission BAT Brake Actuation Technology CPx Controlled pistons CSC Concentric slave cylinder CVT Continuously variable transmission DCT Dual clutch transmission dCSC Concentric slave cylinder for dual clutch EM Emerging Markets EST Electric Shift Technology EPT Electric Pump Technology HCC High Cost Countries IAM Independent Aftermarket LCC Low Cost Countries MST Manual Shift Transmission MT Manual transmission OEM Original Equipment Manufacturer OES Original Equipment Supplier PPM Parts Per Million