Company Presentation HELLA KGaA Hueck & Co. FY 2016/17 - PowerPoint PPT Presentation

Company Presentation HELLA KGaA Hueck & Co. FY 2016/17 HF-7761DE_C (2013-10)

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 Such statements and estimates are valid on the date of publication and can be superseded.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 Company Presentation | FY 2016/17

HELLA – Company Presentation FY 2016/17 Agenda � Financial Highlights FY 2016/17 � Financial Results FY 2016/17 � Outlook BACKUP 3 HELLA Company Presentation | FY 2016/17

Positive sales growth and strong EBIT increase in FY 2016/17 Financial Highlights FY 2016/17 ■ HELLA Group currency and portfolio adjusted sales grew by 4.3% Sales YoY to 6.6 bill. EUR ■ Acceleration of adjusted sales growth to 6.5% in Q4 ■ Adjusted Gross Profit margin at 27.5% (+0.5%-points YoY), Q4 at 27.6% due to higher Automotive margin after efficient project ramp- ups ■ Adjusted EBIT +57 mill. EUR (+12.0% YoY) at 534 mill. EUR , Q4 Profitability +29 mill. EUR (+22.3% YoY) at 161 mill. EUR ■ Adjusted EBIT margin at 8.1% (+0.6%-points YoY), Q4 adj. EBIT margin +1.1%-points at 8.9% due to lower R&D ratio and higher Gross Profit margin ■ Adjusted Free Cash Flow from operating activities 1 decreased by 6 mill. EUR (-3.9% YoY) to 149 mill. EUR mainly due to higher net CAPEX, Q4 -31 mill. EUR to 43 mill. EUR Liquidity ■ Cash and short term financial assets of 1,098 mill. EUR, debt repayment of 300 mill EUR in September 2017 1) Calculation of adj. Free Cash Flow from operating activities revised by reclassification of interest payments, see page 13 and APPENDIX 4 HELLA Company Presentation | FY 2016/17

HELLA top line growth with expected development in FY 16/17 Financial Highlights FY 2016/17 HELLA group sales (EUR millions) Comment ■ Currency and portfolio adjusted growth HELLA Group at 4.3% -39 ■ HELLA reported Group sales increased by 233 mill. EUR (+3.7%) 272 +4.3% 3.7% to 6,585 mill. EUR : − Automotive + 3.8% to 5,029 mill. EUR. 6,585 Demand for energy management products drives electronic business. 6,352 Growth in electronics and lighting impacted by the preparation for ramp- ups in H1 FY16/17. H2 FY 16/17 with strong increase in growth dynamics FY 15/16 adj.* growth FX and FY 16/17 − Aftermarket +3.7% to 1,222 mill. EUR disposal with positive development in all segments − Special Applications +0.3% to 385 mill. EUR , portfolio adjusted sales growth at 5.2% 5 HELLA Company Presentation | FY 2016/17

Automotive growth in H2 FY 16/17 above market Financial Highlights FY 2016/17 HELLA Automotive external sales by region (in EUR millions) Global Europe North & South America Asia & RoW 4,980 3,180 3,174 948 858 4,804 795 2,880 4,364 828 2,738 -0.2% 714 769 3,924 +3.7% +7.9% +10.4% +10.1% +14.4% +5.2% 632 +11.4% +7.6% 555 +11.2% +21.8% +28.6% 646 537 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 13/14 FY 14/15 FY 15/16 FY 16/17 Light vehicle production (in million units) Global Europe North & South America Asia & RoW 94.6 21.9 20.8 50.3 20.7 20.7 21.3 89.5 +0.2% 46.5 +2.7% 87.7 20.3 45.3 86.3 +5.7% 20.5 20.1 44.6 +8.2% +2.1% +4.7% +2.6% +1.6% -1.2% +1.4% +1.3% +1.7% FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 13/14 FY 14/15 FY 15/16 FY 16/17 HELLA Automotive growth vs. market (Light vehicle production growth): +9.6% +8.0% -2.0% +3.9% +5.7% -2.9% +21.6% +8.9% +13.0% +27.0% +8.7% -0.3% Please note that where sums and percentages in the presentation have been rounded, differences may arise as a result of commercial rounding. Source: HELLA; IHS (as of July 2017) 6 HELLA Company Presentation | FY 2016/17

HELLA – Company Presentation FY 2016/17 Agenda � Financial Highlights FY 2016/17 � Financial Results FY 2016/17 � Outlook BACKUP 7 HELLA Company Presentation | FY 2016/17

Improved productivity in Automotive results in GPM increase Financial results FY 2016/17 EUR millions and % sales Adjusted Gross Profit ■ Adjusted Gross Profit increased by 97 mill. EUR 1,812 1,715 (+6%) to 1,812 mill. EUR 1,554 1,477 +97 ■ Adjusted Gross Profit +161 +77 margin improved by 0.5%- points to 27.5%. Adj. ■ Efficient production ramp-ups, Gross positive product mix effect Profit FY 13/14 FY 14/15 FY 15/16 FY 16/17 with increasing content and Adjusted Gross Profit margin high utilization drove margin Adj. Gross 27.6 27.5 Profit 27.0 Margin 26.6 +0.5 -1.0 +0.4 FY 13/14 FY 14/15 FY 15/16 FY 16/17 8 8 HELLA Company Presentation | FY 2016/17

High R&D expenses to secure future growth Financial results FY 2016/17 EUR millions and % sales R&D expenses ■ Absolute R&D expenses 636 623 increased by 13 mill. EUR (+2% 3.7% 544 514 +13 YoY) to 636 mill. EUR mainly to 3.4% +80 prepare future projects and to +30 secure technology leadership R&D ■ Focus on advanced lighting and driver assistance systems & energy management FY 13/14 FY 14/15 FY 15/16 FY 16/17 products R&D expenses ratio ■ FY16/17 ratio decreased by 0.2%-points to 9.7% due 9.8 9.6 9.7 9.3 to high comparable basis in -0.2 8.1% -0.3 +0.5 FY 15/16 R&D 7.8% ■ Ratio accounts for increased ratio order intake and conscious investments in opportunities as well as low capitalization FY 13/14 FY 14/15 FY 15/16 FY 16/17 level 9 HELLA Company Presentation | FY 2016/17

Relatively stable development of SG&A costs Financial results FY 2016/17 EUR millions and % sales Adjusted SG&A expenses ■ Distribution expenses +12 mill. EUR 695 (+2.5% YoY) to 506 mill. EUR driven by 669 3.7% 3.7% 621 604 higher Aftermarket sales and business +26 3.4% +48 3.4% extension in Poland +16 Adj. ■ Adj. other income and expenses -2 mill. SG&A EUR (-4.1% YoY) to 41 mill. EUR ■ Admin. expenses +12 mill. EUR (+5.4%) to 230 mill. EUR due to investments in corporate functions & systems FY 13/14 FY 14/15 FY 15/16 FY 16/17 8.1% Adjusted SG&A expenses ratio ■ SG&A ratio at 10.5%, ratio of structural 7.8% costs shows a stable development 11.3 10.6 10.5 10.5 − Distribution cost ratio -0.1%-points 8.1% -0.7 -0.1 0.0 to 7.7% Adj. − Administrative cost ratio 7.8% SG&A +0.1%-points to 3.5% ratio − Adjusted other income and expenses -0.1%-points to 0.6% FY 13/14 FY 14/15 FY 15/16 FY 16/17 10 HELLA Company Presentation | FY 2016/17

Adjusted EBIT and EBIT margin above prior-year’s level Financial results FY 2016/17 EUR millions and % sales Adjusted EBIT ■ Adjusted EBIT increased by 534 57 mill. EUR (+12.0%) to 534 476 445 mill. EUR 399 +57 +32 ■ Increase of Adj. Gross Profit +46 Adj. and under proportional EBIT increase of R&D expenses in Automotive main driver FY 13/14 FY 14/15 FY 15/16 FY 16/17 Adjusted EBIT margin ■ Adj. EBIT margin increased by 0.6%-points to 8.1% 8.1 mainly due to increased GPM 7.6 7.5 7.5 (+0.5%-points) and lower R&D Adj. -0.1 +0.6 +0.2 expenses (-0.2%-points) EBIT margin FY 13/14 FY 14/15 FY 15/16 FY 16/17 11 11 HELLA Company Presentation | FY 2016/17