HELLA Investor Update
Results Q1 FY 2024 (Jan 1, 2024 - Mar 31, 2024)
April 25th, 2024
Summary
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Highlights
Financial Results Q1 FY 2024
Outlook FY 2024
Key takeaways
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Highlights
Q1 FY 2024 highlights
Successful placement of promissory note loan totaling €200m
- Transaction significantly oversubscribed and increased from €100m to €200m
- Issued with terms of 3, 5, 7 years maturing March '27, '29, and '31
- Serves primary to refinance a bond maturing in May '24
Completion of the sale of the 50% share in BHTC
- Agreement signed on October 2nd, 2023; purchase price is based on an EV €600m
- Closing April 2nd, 2024
- Capital gain around €100m, proceeds of €205m in Q2 FY 2024
Selective order intake for high content technologies
- Demand for Headlamp, IL* and CBL* packages from German and international OEMs, SOPs 2025 and 2027
- Strong order intake for energy management and lighting electronics for international OEMs, SOP 2024 to 2026
Publication of Sustainability Report 2023
- Doubling of scope compared to the last report, including a total of around 60 KPIs in more detail than ever before
- Please uselinkdownload the entire Sustainability Report 2023 (chapter in the Annual Report, from page 81)
*IL=Interior Lighting, CBL: Car Body Lighting
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HELLA Investor Update | Q1 FY 2024 | Conference Call, April 25, 2024
Solid start to the fiscal year 2024 with sales and margin development in Q1 as expected
Modest sales growth within a market environment which is slightly down
- Organic sales +2.2%* vs. -0.8% overall market growth
- Positive development in Lighting and
Lifecycle Solutions - Electronics at €738m, -2.2% organic growth
- Lighting at €988m, +5.8%* organic growth
- LCS at €275,+1.4% organic growth
- Group reported sales growth at 0.6%
*includes full consolidation (+€77m) of HBBL (Chinese lighting joint venture Beijing Hella
BHAP Automotive Lighting) after its shareholders agreed on the continuation and strategic development of the joint venture that was founded in 2014. HBBL was previously accounted by the equity method
5HELLA Investor Update | Q1 FY 2024 | Conference Call, April 25, 2024
Operating Income and OI margin as expected at PY level
- Operating Income constant at €111m, OI margin at 5.6%
- Improved gross profit margin
- Partly offset by higher R&D and increased SG&A
- Net Cash Flow at -€51m, NCF/Sales at - 2.6%
- CAPEX increased by 23.9% to €195m, primarily due to investments for series projects and for further automation
- Increase of Working Capital
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Financial Results Q1 FY 2024
Slightly lower sales momentum in Q1 FY 2024 in market environment which is slightly down
- Organic sales Q1 FY 2024 up 2.2%*, €-30mnegative FX in first 3 months
- Reported sales Q1 FY 2024 up by 0.6%
- Sales development primarily driven by growth in Lighting
- Electronics with positive radar business
- Growth in the Independent Aftermarket
Group Sales
in €m
+0.6% | |||
1,990 | 43 | -30 | 2,002 |
+2.2%*
-1.5%
mainly USD and CNY
LVP global -0.8%
Sales Q1 FY 2023 | Organic | Currency | Sales Q1 FY 2024 |
*includes full consolidation (+€77m) of HBBL
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HELLA Investor Update | Q1 FY 2024 | Conference Call, April 25, 2024
Lighting with profitability improvement due to growth and savings
LIGHTING
In €m | Q1 FY 2023 | Q1 FY 2024 | |
External Sales (€m) | 946 | 988 | vs. LVP |
YoY organic* | +5.8% | growth | |
of -0.8% | |||
YoY FX** | -1.3% | ||
Intersegment Sales | 9 | 14 | |
Total Sales | 955 | 1,002 | |
Operating Income | 23 | 30 | |
% of Total Sales | 2.4% | 3.0% | |
- includes full consolidation (+€77m) of HBBL
**approximation based on internal analyses
- Growth driven mainly outside Europe
- Full consolidation of HBBL
- Demand for latest lighting technologies from manufacturers of electric vehicles in Asia and Americas
- Ramp-upof new programs in the Americas
- Growth in China negatively impacted by change of important car models
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Operating Income +€8m (+33.8%) to €30m;
OI margin improvement by 70bps to 3.0% - Positive operating leverage and accretive impact of full HBBL consolidation
- SG&A savings with lower personnel and other external costs
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HELLA Investor Update | Q1 FY 2024 | Conference Call, April 25, 2024
Electronics with margin improvements despite weaker top line
ELECTRONICS
In €m | Q1 FY 2023 | Q1 FY 2024 | |
vs. LVP | |||
External Sales | 763 | 738 | |
growth | |||
-2.2% | |||
YoY organic | of -0.8% | ||
YoY FX* | -1.1% | ||
Intersegment Sales | 79 | 75 | |
Total Sales | 842 | 813 | |
Operating Income | 48 | 51 | |
% of Total Sales | 5.7% | 6.3% | |
- Slight sales decline due to customer mix effects and delayed project launches
- Radar business with continuous growth
- Negative customer mix effects in Europe and Asia
- Slowdown of electrification in Europe at the beginning of 2024 and delayed series launches
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Operating Income +€4m (+7.3%) to €51m;
OI margin improvement by 60bps to 6.3% - Improved gross profit margin with reduced material costs
- Lower R&D expenses with less external services and SG&A cost savings
*approximation based on internal analyses
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HELLA Investor Update | Q1 FY 2024 | Conference Call, April 25, 2024
LCS with further sales growth and good operational performance
LCS
In €m | Q1 FY 2023 | Q1 FY 2024 |
External Sales | 280 | 275 |
YoY organic | +1.4 | |
YoY FX* | -3.1% | |
Intersegment Sales | 3 | 3 |
Total Sales | 283 | 278 |
Operating Income | 37 | 34 |
% of Total Sales | 13.1% | 12.1% |
*approximation based on internal analyses
- Organic growth due to successful spare parts business
- Continuous growth of the spare parts business in Europe esp. in the UK, Poland, and Turkey
- Workshop business negatively impacted by high PY-basis with strong particle counter demand
- Lower investment activities in core segments of the commercial vehicle business like Agriculture and Trailer
- Operating Income -€3m(-8.5%) to €34m; OI margin down by 90bps to 12.1%
- Higher GP margin due to improved product mix
- Rising R&D with higher personnel costs
- Increased SG&A costs with additional logistics and marketing costs and expenses related to the acquisition of 50% of Hella Pagid
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HELLA Investor Update | Q1 FY 2024 | Conference Call, April 25, 2024
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Hella GmbH & Co. KGaA published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 06:52:06 UTC.