DGAP-News: Schaeffler AG: Schaeffler delivers solid results in challenging environment

• Slight revenue increase in H1/2022 of 3.1 percent at constant currency despite pandemic-related lockdown in Greater China
• EBIT margin before special items of 6.1 percent (prior year: 10.0 percent) held back by higher procurement costs
• Free cash flow before cash in- and outflows for M&A activities for H1 of
  -204 million euros (prior year: 243 million euros) affected by one-off restructuring payments
• Full-year guidance for 2022 confirmed
• Transformation consistently continued: strong order intake at Automotive Technologies, 50:50 joint venture Innoplate, acquisition of Ewellix

Herzogenaurach | August 4, 2022 | Global automotive and industrial supplier Schaeffler published its interim financial report for the first half of 2022 today. The Schaeffler Groups revenue for the first six months amounted to 7,548 million euros (prior year: 7,014 million euros). The 3.1 percent constant-currency increase in revenue compared to the prior year period was mostly attributable to favorable price realization. Revenue for the second quarter of 2022 rose by 4.4 percent at constant currency to 3,790 million euros (prior year: 3,454 million euros). 

The Automotive Technologies division reported a slight constant-currency revenue decline of 1.0 percent for the first half of the year. The revenue trend of the Automotive Technologies division for the first six months was primarily attributable to volatile customer call-offs due to the persistently challenging environment in the automotive sector. Despite considerable decreases in Automotive Aftermarket division revenue in the Central & Eastern Europe subregion resulting from the war in Ukraine, the division reported constant currency growth of 3.2 percent compared to the prior year period. Industrial division revenue for the first six months was up by considerably 13.6 percent at constant currency.

Regional trends varied. While the Europe (6.0 percent), Americas (9.5 percent), and Asia/Pacific (3.4 percent) regions reported constant-currency revenue growth, Greater China region revenue declined by 8.0 percent. The decline was largely due to lockdown measures imposed in the second quarter to contain the coronavirus pandemic that adversely affected the economy in the region.

The Schaeffler Group reported 458 million euros (prior year: 702 million euros) in EBIT before special items in the first six months. This represents an EBIT margin before special items of 6.1 percent (prior year: 10.0 percent). The softer EBIT margin before special items for the reporting period was primarily attributable to significantly higher procurement costs that were only partly offset by adjustments to sales prices. The pandemic-related revenue declines in Greater China put further pressure on the EBIT margin. EBIT for the reporting period was adversely impacted by 24 million euros in special items mainly related to planned structural measures.

The second quarter of 2022 was a remarkable one, not just because of the lockdowns which directly affected us at our largest campus in Taicang. We succeeded in proactively and prudently managing the cost impacts, some of which were significant, the increasing inflationary pressure, and the strains in the supply chains. We are more than pleased with the solid results the Schaeffler Group delivered in this challenging environment, stated Claus Bauer, CFO of Schaeffler AG.

Automotive Technologies with strong order intake
The Automotive Technologies division delivered 4,515 million euros (prior year: 4,365 million euros) in revenue for the first six months. The 1.0 percent decrease at constant-currency is primarily due to the difficult environment in the automotive sector which experienced a decline in production volumes. Disruptions in global supply chains further increased volatility of customer call-offs. These bottlenecks were mainly attributable to the persistent shortage of semiconductors. Additional drivers were the implications of the war in Ukraine and the coronavirus pandemic. In contrast, passing on significantly increased procurement costs favorably impacted revenue development.

The E-Mobility and Chassis Systems business divisions continued to expand their revenue in almost all regions during the reporting period, generating constant-currency growth rates of 13.0 and 19.0 percent. This growth was primarily driven by product ramp-ups.

Overall, revenue for the reporting period outperformed global automobile production which declined by 1.8 percent during the first half of 2022^[1]. Automotive Technologies division outperformance was 0.8 percentage points. The volume of order intake for the first six months rose in a volatile environment, totaling 6.6 billion euros, more than in the previous two years. The E-Mobility business division won 3.2 billion euros of these orders, already meeting the full-year target for 2022 in the first six months.

You can find press photos of the Board of Managing Directors here: www.schaeffler.com/en/executive-board

Forward-looking statements and projections

Certain statements in this press release 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. No one undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should not place any undue reliance on forward-looking statements which speak only as of the date of this press release. Statements contained in this press release regarding past trends or events should not be taken as representation that such trends or events will continue in the future. The cautionary statements set out above should be considered in connection with any subsequent written or oral forward-looking statements that Schaeffler, or persons acting on its behalf, may issue.

Schaeffler Group We pioneer motion

As a leading global supplier to the automotive and industrial sectors, the Schaeffler Group has been driving forward groundbreaking inventions and developments in the fields of motion and mobility for over 75 years. With innovative technologies, products, and services for electric mobility, CO-efficient drives, Industry 4.0, digitalization, and renewable energies, the company is a reliable partner for making motion and mobility more efficient, intelligent, and sustainable. The technology company manufactures high-precision components and systems for powertrain and chassis applications as well as rolling and plain bearing solutions for a large number of industrial applications. The Schaeffler Group generated sales of approximately EUR 13.9 billion in 2021. With around 83,000 employees, Schaeffler is one of the worlds largest family companies. With more than 1,800 patent applications in 2021, Schaeffler is Germanys third most innovative company according to the DPMA (German Patent and Trademark Office).

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 ^[1] Source: IHS Markit (part of S&P Global), July 2022.