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Supplier Study
2019
After years of excellent growth,
the market environment is getting
difficult
August 2019
Contents
A B C D
The The The The
status future strategies contacts
Increasingly The transfor- Suppliers have Roland Berger
difficult environ- mation of the different and Lazard
ment after record automotive opportunities to Automotive
profits until last industry is well prepare for the teams
year underway future
© Roland Berger/Lazard 2
Executive Summary (1/2)
> After record years, the automotive industry is facing a difficult time with multiple market uncertainties and a global
production volume decline by -5% in H1/2019 vs. H1/2018
> Especially the slowdown in the world's largest market, China, since H2/2018 is causing problems for the global
suppliers
> As a result – 2019 will not be a year of recovery, but rather stay challenging for automotive suppliers. The average
industry margin is expected to fall below 7% for the first time in the last seven years driving sector valuations below
10-year average
> Amidst a weakening market environment some structural changes have taken place:
Profitability of China/NAFTA-based suppliers is shrinking. However, it is still better than that of European peers. Although
Japanese suppliers improved in comparison with previous years, they remain well below other regions
Tire and chassis suppliers are leading in margins. Interior players remain at the bottom of the automotive suppliers field
Profitability of product innovators came down to 7.3% EBIT margin in the last year, reducing their relative advantage in comparison
with process specialists
> Digitization appears to be one of the most important near-term topics for suppliers as it touches multiple dimensions:
the potential to create new business models, offer new products and services, and improve the efficiency of
operational and administrative processes
> In the long term the mobility landscape of today will change – especially as new market entrants possess a non-
automotive mindset and capture parts of the future automotive business
> For traditional automotive suppliers the risks in the market are high: on the one hand, they could potentially
miss out on new revenue opportunities, and on the other hand, they face increasing price pressure from the
OEM side, who have to deal with increasing capital requirements and declining profit pools themselves
> For traditional suppliers, access to capital may become tougher. Equity investors favor other industries whereas
financing banks are becoming more cautious about cyclicality and long-term threats, especially for many small
traditional suppliers. In addition, M&A activities in the sector have gone down recently, with Chinese investors,
representing an important buyer group, becoming less active
> While many small traditional players will face difficult times, new global entrants and technology system integrators are
generally well-positioned for tomorrow's changes. Performance-improvement programs, accelerated capacity
adjustments and pro-active portfolio management are recommended countermeasures for most suppliers
A B C D
The The The The
status future strategies contacts
Increasingly The transfor- Suppliers have Roland Berger
difficult environ- mation of the different and Lazard
ment after record automotive opportunities to Automotive
profits until last industry is well prepare for the teams
year underway future
© Roland Berger/Lazard 5
Within the first half of 2019 the global automotive markets
significantly weakened relative to 2018
Recent developments in the automotive industry
H1/18 vs. H1/19 [m units]1) Automotive headlines
-5%
"Again a Schaeffler profit "Lear 2Q Profit Falls Amid "Nissan to Cut 12,500 Jobs
48.4 warning" Global Vehicle Production as Its Profit Plunges"
46.0
Others 6.0 Handelsblatt Online – 07/19 Decline" Dow Jones Newswires Chinese –
5.6 Dow Jones Institutional News – 07/19
"Insolvency of Eisenmann 07/19
Japan/
6.6 Group – Next large "Ford's Shrinking China
South Korea 6.5 Business Is Hurting Its
automotive supplier failed" "Weak automotive economy
South America 1.7 starting to badger Hella" Global Ambitions"
1.7 Wirtschaftswoche Online – 07/19
Reuters – 07/19 Dow Jones Institutional News –
NAFTA 8.7 "Bosch sees car production 07/19
8.6 "Michelin margins hit by auto
falling 5% in 2019" "There is a storm brewing"
ReutersNews – 07/19 slump despite price hikes" AUTOMOBIL PRODUKTION –
ReutersNews – 07/19 07/19
Europe2) 11.9 "Goodyear Tire & Rubber's
11.2 "Slackness in sales –
Profit, Revenue Miss "Due to weakening
Estimates" Automotive economy in the automotive markets press
Dow Jones Institutional News – downturn" supplier Schuler cuts 500
07/19 Handelsblatt Online – 07/19 jobs"
China3) 13.5 12.4 Handelsblatt – 07/19
"U.S. auto sales seen "Renault Profit Drops, Hit by
slipping in July" Lower Sales, Nissan Payout"
H1/2018 H1/2019 ReutersNews – 07/19 Dow Jones Institutional News –
07/19
1) Global light vehicle production volume 2) Excluding CIS and Turkey 3) Greater China
2014 2015 2016 2017 2018 2019e 2014 2015 2016 2017 2018 2019e 2014 2015 2016 2017 2018 2019e
2014 2015 2016 2017 2018 2019e 2014 2015 2016 2017 2018 2019e 2014 2015 2016 2017 2018 2019e
1) Incl. light commercial vehicles; 2) CAGR 2014-2018; 3) Excluding CIS and Turkey; 4) Greater China
Indexed [2012=100]
126 127 7.2 7.3 7.1 7.1 7.2 7.2
120 123 ~120–125
6.8
113
107
100
~6.0–6.3
YoY [%]
5 7 6 6
2 3 1
Aug 10
Aug 11
Aug 12
Aug 13
Aug 14
Aug 15
Aug 16
Aug 17
Aug 18
Aug 19
the stagnation in their home market
Aug 10
Aug 11
Aug 12
Aug 13
Aug 14
Aug 15
Aug 16
Aug 17
Aug 18
Aug 19
of growth areas for the
supplier sector
Selected automotive OEMs3) Selected automotive suppliers4)
1) NTM = Next twelve months; 2) Excluding the distorting impact of the economic crisis (Aug–Dec 2009 multiples); 3) BMW, Daimler, Ford, General Motors, Honda, Toyota and Volkswagen;
4) American Axle, Autoliv, BorgWarner, Brembo, Continental, Dana, Delphi, Faurecia, Hella, Magna, Norma and Valeo
> Chinese-based suppliers achieved > Mid-size suppliers (EUR 1.0 to 2.5 > Tire suppliers benefit from their > Process specialists are able to
the highest EBIT margins with bn revenues) could realize the aftermarket business and continue catch up to product innovators in
~9.0% in 2018 highest EBIT margins with ~8.7% to realize high EBIT margins of terms of EBIT margins
> NAFTA-based suppliers profit from > Large suppliers with >EUR 10 bn ~11.3% > The systematic "lean" focus of the
their previous restructuring efforts revenues achieved above average > Chassis suppliers also last years pays off with 6.6% EBIT
reaching ~8.4% EBIT margins EBIT margins of ~7.3% outperform the market and reach margins
> However, in both regions EBIT margins of ~8.1% driven by
deterioration expected for 2019 recent technology trends
> Japanese suppliers have > Very large suppliers (EUR 5.0 bn > Powertrain suppliers lost ground > Product innovators are growing
improved but remain at a low level to 10.0 bn revenues) fall behind and achieved below-average strongly but have difficulties
of ~5.8% EBIT margins with an EBIT margin of 6.5% margins translating this further into above-
> Globally, suppliers expected to > Small suppliers (EUR 0.5 bn to > Interior suppliers still trail their average EBIT margins
face margin declines in 2019 1.0 bn revenues) fail in terms of peers, with recently increasing
translating above-average growth margins but still waiting for future
into profitability improvements customization trends to realize
Tire suppliers benefit from favorable raw material costs & business
model – Chassis suppliers well positioned for future technologies
Key supplier performance indicators by product focus 2018 [%]
Revenue ~0.4% ~2.7% ~4.5% ~5.4% ~3.3% ~3.6% > Tire suppliers can benefit from their
CAGR aftermarket business; favorable raw
2012–2018 materials price developments in the past
helped to achieve far-above-average
11.3 margins
8.1 > Chassis suppliers achieve above-
7.4 average margins due to advanced
2018 = 7.2 6.9 driver assistance and active safety
6.4 > Powertrain margins further pressurized
5.6 by intensified competition, the cost of
(multiple) innovations and the rise of
electric vehicles
EBIT margin > Exterior suppliers have been growing
2018 strongly. Margins benefited from raw
materials price developments and
increasing importance of light weight
with high-quality material
> Electrics/infotainment suppliers still
below average although importance of
Tires Chassis Power- Exterior Electrics/ Interior components is increasing – intensified
train Infotainm. competition
> Interior suppliers don't see a recovery
Product innovators have not kept the high margin levels of the
previous years and have to focus on process efficiency in the future
Key supplier performance indicators by business model 2018 [%]
Revenue ~5.4% ~3.8% > On average, innovative products feature
CAGR higher differentiation potential and
2012–2018 greater OEM willingness to pay higher
prices
7.3
> But overall profit margins of product
6.6 innovators came under pressure due
to increasing OEM price pressure and
intensified competition
> Efficiency improvements, e.g.
subsequent to Industry 4.0 opportunities
EBIT margin and lean approaches seem to pay off
for process specialists
2018
> Gap between process specialists and
product innovators reduced over the
last years; reason to be seen in the
MADE3) trends and the resulting
financial/operational challenges,
especially for product innovators
1) Top (low) performance based on above-average (below-average) revenue growth 2012–2018, ROCE 2012–2018 and ROCE 2018; 2) EBIT after restructuring items
A B C D
The The The The
status future strategies contacts
Increasingly The transfor- Suppliers have Roland Berger
difficult environ- mation of the different and Lazard
ment after record automotive opportunities to Automotive
profits until last industry is well prepare for the teams
year underway. future
© Roland Berger/Lazard 17
The importance of mobility- and digitization-related business models
significantly increased while electrified mobility is becoming normality
MADE temperature check 2017 vs. today
2017 2019
Market trends 1 Prerequisites for electric vehicles constantly getting better, e.g. further
emission regulations and ICE city bans, decreasing battery costs or
improving infrastructure
2 Beside new forms of mobility also the mobility mix itself is changing
Sales numbers for electrified cars still low – But, despite the auto-
motive market cool-down in H2/2018, all markets saw growth for xEV
EV/PHEV/FCEV sales in 2018 [% of total vehicle sales]
2018
29 28 1,166 61 14 363 53 72 33 52 13 10 <1 <1 2 <1 <1
7.1
5.3
4.3
29,3
24,4
21,0
17,5
8,8 8,2
7,0
5,1 5,7
4,3 2,9
2,9 2,9 2,9 2,3 1,3
2,5
1,3 1,3 1,6 2,3 1,1 2,3 1,9
1,0 1,4
0,4
0,9 0,6 1,1 0,6 1,0 0,9 0,3 0,5 0,3 0,3 0,3 0,1
Netherlands Dubai China South Singapore Japan France UK Germany Belgium Sweden Italy USA Spain Russia India Bahrain
Korea
July 2017 July 2018 July 2019
40% 40%
50% 50% 50%
60% 60% 60% 65% 70% 70% 70% 75% 80% 80% 80%
60% 60%
50% 50% 50%
40% 40% 40% 35% 30% 30% 30% 25% 20% 20% 20%
Choice of mode in less than 40% of trips Choice of mode in more than 40% of trips
Source: RB online survey Jan 2019: 16,180 participants - Participants by country: Belgium 1,004; China 1,006; France 1,006; Germany 1,004; India 1,008; Italy 1,012;
Japan 1,060; Netherlands 1,001; Russia 1,011; Singapore 1,004; South Korea 1,009; Spain 1,009; Sweden 1,001; UAE 1,009; UK 1,036; USA 1,01; Lazard 22
3 Uncertainty remains over technical development path
Indicator Rating: Progress regarding type approval progress for No Initial Basic regulatory Regulation Regulation in No limitation
autonomous vehicles discussion discussions set in progress decision phase for approval
Source: Roland Berger Automotive Disruption Radar, Lazard 23
4 Data-based and digital business models enable new business potential
1 Digitization
processes
of business
2 Digitization of products
and services 3 Digitization of entire
business models
> Workflow automation and RPA to > Capturing of product and customer > Introduction of disruptive business
digitize inter- and intracompany data for additional services, e.g. models, e.g. mobility-as-a-service
business processes (e.g. P2P, PEP) telematics and predictive service > Cloud-based service offerings
and standardized tasks offerings > Innovative applications, e.g.
> Industry 4.0 solutions for shop floor > Introduction of smart products, mobility apps, eCar wallets
automation (e.g. predictive traceability and mobility solutions, or > Digitization of sales channels
maintenance, testing) infotainment features > Use of blockchain technology for
> Car connectivity and V2I (vehicle to e.g. IoT, smart contracts, fleet
infrastructure) communication management
Limited: Low:
High: Few can, Diversified and
Technological Many do, players with new tech players
sophistication all should traditional portfolio only
handicapped
Traditional OEMs are facing pressure from many sides, not only in
new expansion areas but also in their core business
Pressure on traditional OEMs
Electric mobility New
MaaS
New mobility > High pressure on
OEM margins from
2025 business concepts 2025 e-mobility and new-
mobility concepts
More intensive competition New Maas business slower > In addition, further
due to new entrants with advan- than expected to ramp up pressure from
tages over established players emission regulations
Fierce competition due to and potential fines
Falling margins due to electri- new entrants with advantages
fied vehicles either because of over established players > OEMs will try to, at
simplified (BEV) or more cost Tradi- least partially, pass
intensive (HEV) powertrain tional Late to follow-up: negative effects on
core Traditionally leading OEMs in their earnings to their
Lower EBIT due to rising business follower position supply base
costs and portfolio shifts
Strong need for investment
High investments in into automated driving and
powertrain electrification and artificial intelligence and to
new technologies scale up
High costs associated with Decreasing brand loyalty
personnel transformation and design relevance
OEM/OES
business 2019
Positive impact on business Negative impact on business Neutral
4.5
General Motors USD bn > More efficient production
Improvement targets
OEMs to handle their
cost reduction current challenges
by 2020
> Leaner product portfolio
> Reduction of material costs > Nearly all large cost-
cutting programs
have a material-cost-
6.0
Porsche EUR bn > More efficient production reduction element,
op. result
by 2025
> Digital business models thus are targeting the
> Reduction of material costs supply base
> Suppliers have to
define measures to
4.0
Mercedes-Benz EUR bn > More efficient production
op. result defend themselves
by 2025
> Quicker introduction of new products against cost-saving
> Reduction of material costs programs and to
handle their financing
requirements in parallel
2.5
Jaguar/ GBP bn > Layoffs
Land Rover cash flow
by mid-2020
> Reduction of non-product investments
> Reduction of material costs
Source: Handelsblatt; Wirtschaftswoche; Reuters; General Motors; Daimler; Jaguar/Land Rover; Porsche, Roland Berger/Lazard 27
7 New players enter the automotive business across the entire value chain
Ride-hailing
Traditional OEMs with providers
OEMs Integrated MSP mobility service
offerings
CaaS Established
premium/sports- New xEV OEMs
lifestyle brand car OEMs
Traditional Consumer
Device suppliers and electronics
New OEMs manufacturer OEM volume OEMs manufacturers
Selected
Ø out of traditional
OES business suppliers and
OEMs
Service enabler/ Technology Semi-conductor
Component suppliers or battery
New OES manufacturer OES manufacturers
Players like Amazon enter different areas of the market and win on
scale, coverage or pricing, and even offer better user experience
Focus trend: E-commerce players' positioning in automotive aftermarket in the USA
Large portfolio Cost-efficient Fast delivery (still gap) > Amazon sales in the
Wholesale automotive aftermarket
100,000
Number of SKUs offered (500–1,200) bps Stocker already passed the
by regional aftermarket
retailers across their
USD 1 bn milestone
∑ = 20–32%
network
Last mile > Amazon not only offers
Number of SKUs
offered by national
delivery parts for Do-It-Yourself
2,000 15% Amazon
aftermarket Fulfillment but also services for
retailers or WDs Op Margin Tgt
across ∑= center Do-It-For-Me
Number 15–20% Admin costs > Pressure on speed of delivery: Same day
their
network
of SKUs 4–6%
Customer in certain cities, 1–2 days in most cities > Amazon leverages its
Amazon 3% and aiming for delivery within 1 hour by sales channels for B2C
Orders/day for each SKU
3x
Aug 13
Aug 18
Aug 10
Aug 11
Aug 12
Aug 14
Aug 15
Aug 16
Aug 17
Aug 19
# of automotive supplier M&A transactions Share of Chinese M&A activity in the supplier space
252 20%
232
17%
183 178 13%
12%
11%
66
2015 2016 2017 2018 H1 2019 2015 2016 2017 2018 H1 2019
Environment becomes more difficult – especially for smaller suppliers looking for a sale or merger
Note: Transactions considered: announced/completed, >75% stake, automotive suppliers, worldwide
Share of private equity buyers in mid-cap M&A transactions (2018)1) Selected debt capital and rating views
"Weakening demand for cars and trucks has pushed credit rating
company Moody's to cut its outlook for the auto industry from stable
to negative. Slowing economic growth, a better-than-expected end
to 2018 and a host of potential political pitfalls are all expected to
dampen global auto sales in 2019, Moody's said in a research note
Monday."
CNBC – MAR-2019
Automotive Chemicals Healthcare Industrials
suppliers (ex. auto)
Note: Transactions considered: announced/completed, >75% stake, worldwide with disclosed deal value
Source: Dealogic, Roland Berger/Lazard, Press
1) Deal value between EUR 100 m and EUR 500 m; i.e. 13% of buyers were private equity buyers, while 87% were strategic acquirers 2) Translated 33
9 Access to capital is expected to become tougher
Key: Acquirer/Target
Note: Excluding financial sponsor–led transactions. Some 2019 transactions are signed, but not yet closed.
Outsourcing of non-
OEMs Market differentiating parts Technology/
Reduced consolidation
Availability of Smart products & legislation
importance of New components
skilled workforce
high end variant
New market
New car Growing importance of
Price pressure entrants Digital
concepts software and electronics
on suppliers business
models Increasing quality/
durability requirements
High capital Capital
Reduced
Car Stagnation/potential ICE share Type approval
requirements markets/
decline of volumes for R&D
buyers Digital business
New
customers
process financing
models Light- Attractiveness Secure financing to
New mobility weight of equity story master disruption
Customization concepts
of interior Trade wars
A B C D
The The The The
status future strategies contacts
Increasingly The transfor- Suppliers have Roland Berger
difficult environ- mation of the different and Lazard
ment after record automotive opportunities to Automotive
profits until last industry is well prepare for the teams
year underway future
© Roland Berger/Lazard 36
The predicted transformation of the automotive industry becomes
reality – Suppliers have to find their individual strategy to deal with it
Current situation for automotive suppliers
size
Financial
strength /
Product
portfolio
Market
environment
General > Portfolio of single > Broad portfolio of > Portfolio of > Portfolio focus > Broad portfolio, > Large integrators
characteristics parts or simple single parts and complex parts on innovation/ also for growing with broad
components components or modules new technologies segments portfolio
> Commoditized > OEM customers > Commoditized > Technology > High capital > System-relevant
portfolio as well as direct portfolio leader/disruptor requirements for as of today
> Business model sales > Among the > Limited OEM new tech- > Attacked from
under pressure > Market consoli- market leaders access nologies multiple sides
> Limited ability to dation ongoing > Sizes allows for > Agile > Financially strong
leverage scales scale effects organizations
Strategic How to survive How to position in a How to secure How to enter/disrupt How to identify the How to participate
questions despite strong consolidating and profitability in an the automotive right innovations for in future growth
headwinds? digitizing market? adverse market? market? the future? segments?
Small/weak/threatened Large/strong/growing
Source: Roland Berger/Lazard 40
Exemplary strategic mission statements for the archetypes show
that suppliers should adjust strategies to their specific situations
Top challenges per supplier archetype
Archetype Selected top challenges Strategic mission statement
Small > Price pressure > Secure long-term funding Survival of the fittest – Cost
traditional player > Potential volume decline > Scale effects & Industry 4.0 optimization throughout the entire
> Electrification and digitization > Attracting talent organization is key
Aftermarket > Electric vehicles > Client structure (end client, Eat or be eaten – Compensate for
player > Market consolidation OEM, mobility provider) negative business implications from
> Low-cost competitors > Upcoming digital products e-mobility trend
Global > Price pressure > Industry 4.0 Defend current positioning – Process
commodity leader > Potential volume decline > Capital requirements excellence is the basis to generate
> Electrification and digitization > Platform projects capital and to ensure long-term success
Global new > Automotive standards > R&D expenses If you can think it, you can do it –
entrant > Customer access > Workforce availability Leverage existing know-how to generate
> Established competitors > Technology acceptance new business within automotive industry
Traditional > Price pressure > Internal cultural change Offense is the best defense – Focus on
diversified player > R&D expense allocation > Increasing competition cost-efficiency or proactive portfolio
> Portfolio commoditization for growth segments transition to future growth segments
Technology > Electrification and digitization > Increasing competition Remain system-relevant – Make the
system integrator > Autonomous driving > Financing needs company irreplaceable for OEMs and
> Breaking up of systems > Internal cultural change leverage positioning into new fields
–– 0 + + Impact on supplier business: (strongly) negative, no impact, (strongly) positive 1) M = Mobility A = Autonomous D = Digitization E = Electrification 2) Relative to each other
Source: Roland Berger/Lazard 42
1 Small traditional player
Electrification > Changing car concepts require a different product portfolio from suppliers
and digitization > Increasing importance of lightweight solutions to increase EV range
> Car-as-a-service trend causes shift away from lucrative high-end variants
as not-owned cars become less of a status symbol
Securing long- > Creditors more cautious with long-term commitments especially for small
term funding suppliers in domains at risk
> Difficult to find equity investors at the same time How to survive
despite strong
Attracting > Small companies struggle to attract the right talent due to limited brand
talent recognition or unfavorable location headwinds?
Source: Roland Berger/Lazard 43
1 Small traditional player
IAM1) Industry > In the independent aftermarket, strong industry consolidation is underway
consolidation > Small aftermarket companies might be swallowed by industry giants
> Market already partly dominated by large, multinational parts distribution
groups Low High
New > Aftermarket is attractive for either low-cost suppliers, especially from Asia
competitors or global online marketplaces, due to relatively low entry barriers
for commodities > Overall very price-sensitive client base due to higher vehicle age –
risk of being substituted because of lower client loyalty
How to
Client > Very different client groups (end customers vs. OEMs) to be handled
structure > New client groups evolving, e.g. global mobility providers position in a
consolidating
Online sales > Increasing importance of online sales channel
and upcoming > New online players evolving and digitizing
digital products > Service-focused and customer-oriented business models gain importance market?
1) IAM = independent aftermarket
Electrification > Changing car concepts require different product portfolio from suppliers
and digitization > Increasing importance of lightweight solutions to increase EV range Low High
> Car-as-a-service trend causes shift away from lucrative high-end variants
as not-owned cars become less of a status symbol
Capital > R&D spending for lightweight solutions and advanced engineering due to
requirements new car concepts How to secure
> Transformation process within operations needs to be financed
profitability in an
Platform > Purchasing co-operations on OEM side as well as further efforts to leverage adverse
scale effects based on car platforms
projects
> Losing platform projects can become a serious issue for a supplier market?
Source: Roland Berger/Lazard 47
3 Global commodity leader
Competition > Certain fields, e.g. battery or electronics, are attacked by multiple suppliers Low High
> Many new entrants with strong financial background
R&D > New technologies require companies to invest heavily in R&D during a time
expenses of an uncertain automotive future
> Besides R&D expenses, lobbying also partially required
Autonomous > As the competition for future core technologies is in full force, auton-
driving omous driving has the potential to re-shuffle the automotive value chain
– however, there are large capex requirements, with uncertain payback
Low High
Breaking up > OEMs defend their margin potential and may manufacture future key
of systems technologies in-house, stepping away from complete system outsourcing
Increasing > New players, e.g. for automated driving or BEV1), push into the market
competition > Digital players have identified automotive as a future growth segment
Financing > Traditional and new technologies require R&D investments in parallel
needs > Pre-financing of manufacturing equipment for new technologies
> Financing of M&A activities (market shares and/or new technologies)
How to
participate in
Internal > Software and electronics specialists become employee target group,
cultural bringing a different cultural mindset into the company future growth
change > Organizations need to become more flexible and agile
> Employees expect an innovation-friendly environment
segments?
1) BEV – Battery electric vehicle
Especially diversified players and system integrators can benefit from the
right portfolio mix combining attractive profit levels and growth potential
✓
8,0x 8,0x
space1) R² = 0.08 investors consider
6,0x 6,0x
operational
excellence/
4,0x 4,0x
margin levels
more important
EBITDA margin '19E Sales CAGR '19E–'21E
2,0x 2,0x
than growth
8% 12% 16% 20% (2%) 0% 2% 4% 6% 8% expectations
✓
EV/Sales '19E Limited relationship between EV/Sales '19E R² = 0.87
space2) profitability and valuation growth areas,
4,0x 4,0x
R² = 0.03 investors consider
growth
2,0x 2,0x
expectations/
potential more
important than
EBITDA margin '19E Sales CAGR '19E–'21E
0,0x 0,0x current margin
5% 10% 15% 20% 0% 30% 60% 90% levels
1) Illustrative peers: American Axle, Autoliv, BorgWarner, Brembo, Continental, Dana, Delphi, Hella, Magna, Norma and Valeo
2) Illustrative peers: Akasol, Aumann, Tesla, Visteon and Voltabox
A B C D
The The The The
status future strategies contacts
Increasingly The transfor- Suppliers have Roland Berger
difficult environ- mation of the different and Lazard
ment after record automotive opportunities to Automotive
profits until last industry is well prepare for the teams
year underway future
© Roland Berger/Lazard 58
Please contact us for further information
Florian Daniel
Principal
+49 89 9230-8374
florian.daniel@rolandberger.com
This presentation is based on publicly available information that has not been independently verified by Lazard or RB. Any estimates and projections contained herein
involve significant elements of subjective judgment and analysis, which may or may not be correct. Neither Lazard, nor any of its affiliates, nor any of its direct or indirect
shareholders, nor any of its or their respective members, employees or agents, nor RB provides any guarantee or warranty (express or implied) or assumes any
responsibility with respect to the authenticity, origin, validity, accuracy or completeness of the information and data contained herein or assumes any obligation for
damages, losses or costs (including, without limitation, any direct or consequential losses) resulting from any errors or omissions in this presentation.
The economic estimates, projections and valuations contained in this presentation are necessarily based on current market conditions, which may change significantly
over a short period of time. In addition, this presentation contains certain forward-looking statements regarding, among other things, the future financial performance of
automotive suppliers, which may include projections based on growth strategies, business plans and trends in the automotive sector and global markets. These
forward-looking statements are only predictions based on current expectations; the actual future results, levels of activity and/or financial performance of automotive
suppliers may differ materially from the predictions contained in this presentation. Changes and events occurring after the date hereof may, therefore, affect the validity
of the statements contained in this presentation, and neither Lazard nor RB assumes any obligation to update and/or revise this presentation or the information and
data upon which it has been based.
60