Schaeffler : 2021-05-20 Schaeffler Group – Berenberg Conference USA 2021 (Virtual)

Schaeffler AG Investor Presentation

Marc McGrath, CEO Americas

May 20, 2021

Agenda

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Schaeffler Group Q1/2021 Financials

Schaeffler Group Q1/2021 Business Highlights & Deep Dive Americas Region

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1 Schaeffler Group Q1/2021 Financials

Schaeffler Group at a glance - We are an Automotive and Industrial supplier

3 Divisions

In % of Sales 2020

Industrial 25%

EUR 12.6 bn

Automotive

Aftermarket

13%

Automotive

Technologies 62%

Schaeffler Group

• Leading position in technology and innovation
• Diversified customer base serving 10 customer sectors
• Market leading product offering from components, systems to services
• Global footprint with 75 plants and 20 R&D centers
• ~84,000 employees in more than 50 countries
• Highly experienced leadership team with focus on execution

4 Regions

In % of Sales 2020

Asia/Pacific

13%

Greater	EUR 12.6 bn
China
23%

Americas 21%

Europe 43%

Well-diversified Automotive and Industrial supplier with global reach and synergistic businesses

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1 Schaeffler Group Q1/2021 Financials

Roadmap 2025 - Building on our strong foundations and innovating as diversified Automotive and Industrial Group

Automotive Technologies

	Mature			New
	We				We
	HARVEST				BUILD
	with our				Competencies in
	enabler-				Power Electronics &
	Technologies				Hydrogen
	We				We
	EXIT/DIVEST
				GROW
	expiring businesses
				in Electrified
	& consolidate our
				Powertrains
	footprint

We drive the transition to innovative propulsion and chassis technologies, to conquer leadership positions in New Business

Automotive Aftermarket

Platform	▪ One-stop-shop
business	▪ Consolidated distribution
Advanced
repair	▪ Plug & Play solutions
solutions	▪ Also available for hybrids ​
& services

Wheel

bearings for ▪ Independent of drive train passenger ▪ High-performance parts cars

We capture growth opportunities in new markets

and maintain a high margin level

Industrial

Driving innovation with systems and services

Robotics	Wireless condition	Hydrogen
solutions	monitoring	solutions

Pushing growth in our core business

Large-size wind	Rail bearings	Agricultural
bearings		technologies

We further build on our profitability track record, while entering in promising new technologies

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1 Schaeffler Group Q1/2021 Financials

Strong Q1 2021 - Sales growth driven by China, double-digit margins in all divisions

Key messages

Q1 sales +11.2%1, with recovery in Greater China in Automotive

1. Technologies as main driver (+74%1)
   Q1 Gross margin with positive yoy development driven by
2. Automotive Technologies; double-digit EBIT margin2 in all divisions, supported by continuous overhead cost control
   FCF3 positive with EUR 130 mn, supported by higher EBITDA and
3. lower Capex; below PY due to restructuring cash-outs and Net Working Capital outflows
   ROCE4 sequentially clearly up at 12.5% (Q1 20: 12.8%), supported by
4. strict capital discipline leading to a substantial decrease of Capital Employed
   Restructuring program initiated in September 2020 progressing well
5. - Overall Net HCO reduction agreed as planned, financial impact unchanged
   Guidance for 2021 upgraded - Higher sales growth1 and EBIT margin2,
6. FCF3 more than EUR 300 mn

1 FX-adjusted | 2 Before special items | 3 Before cash in- and outflows for M&A activities | 4 Before special items, LTM

Sales growth1Gross margin

+11.2%	26.9%
EUR 3,560 mn	Q1 2020: 24.0%

EBIT margin2Free Cash Flow3

11.3%	EUR 130 mn
Q1 2020: 6.5%	Q1 2020: EUR 137 mn

May 12, 2021 Q1 2021 Schaeffler AG earnings

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