ElringKlinger AG Business Report FY ended Dec. 2019
Financial Overview |
(in million EUR) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | Rate of Change (%) | Factors | |
| Overall | ||||
| Net Sales | 1,727.0 | 1,699.0 | 1.6 | 1) |
| EBITDA | 181.0 | 196.6 | (7.9) | - |
| Original Equipment segment | ||||
| Sales | 1,423.4 | 1407.7 | 1.1 | 2) |
Factors
1) Net Sales
-In the fiscal year ended December 31, 2019, the Company’s net sales increased by 1.6% to EUR 1,727.0 million. Exchange rate gains on currencies including the US dollar, Mexican peso and Swiss franc contributed EUR 25.1 million, accounting for an increase of 1.5%. On the other hand, the change in scope of consolidation due to the sale of Hug in 2018 resulted in a loss of EUR 6.2 million. Excluding the above effects, revenues increased by 0.5%.
2) Original Equipment segment sales
-Sales in the Company’s Original Equipment segment increased by 1.1% in the fiscal year ended December 31, 2019 to EUR 1,423.4 million. While the Lightweighting/Elastomer Technology and E-Mobility divisions had increased sales, the other divisions experienced a decrease in sales.
Business Development
-The Company informed that by 2030, the proportion of revenue generated from sales within battery and fuel cell technology is to rise from around 7% at present to over 25%. With a continued focus on its core business, ElringKlinger sold the Swiss Hug Group in 2018, thus divesting itself of an entity that specializes in exhaust gas purification. ElringKlinger also disposed of its interest in new enerday GmbH, a company based in Neubrandenburg, Germany, and will in future concentrate solely on low-temperature PEM fuel cells within the area of fuel cell technology. A prime example is the Technology Center for electromobility currently being established at the Group's headquarters in Dettingen/Erms, the focus being on battery and fuel cell applications. The facility is expected to be operational in the first quarter of 2020. (From a press release on March 27, 2019)
Business Partnership
-The Company and the Dutch VDL Groep announced cooperation in the field of fuel cell technology. They are participating in the European funded project "H2Haul". In addition to the sub-projects of other project partners, three VDL vehicles will be equipped with fuel cell systems from ElringKlinger and tested in real operation by the Belgian retail corporation Colruyt Group. The "H2Haul" project makes a significant contribution to preparing the market for the further use of the technology in the 2020s. The ElringKlinger fuel cell module will then be used in buses and coaches, among other applications. The project was made possible by a EUR 12 million grant from the Fuel Cells and Hydrogen Joint Undertaking (FCH JU). Stacks from ElringKlinger for integration into customer systems are available with an electrical output of 2 to 150 kW. As an option, they can be equipped with peripheral components and system functionalities integrated into the end plate module, thus significantly simplifying and reducing the cost of the fuel cell system. (From a press release on October 21, 2019)
Contracts
ｰAnnounced that it has signed a series contract with a global US electric vehicle manufacturer to deliver cockpit cross-car beams for its new full-electric model. The order will initially run for five years and has a total volume in the mid to high double-digit million euro range. Production at the Californian site in Fremont (USA) is scheduled to start in 2020. ElringKlinger uses an innovative production process that combines hydroforming and injection molding in a single process step to produce lightweight plastic components for car bodies. The resulting hybrid components made of plastic and metal combine the advantages of both materials: high dimensional accuracy of complex geometries with minimum tolerances and considerable structural strength in the event of a crash. At the same time, significant weight advantages over conventional metal variants can be achieved. (From a press release on November 12, 2019)
R&D Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | |
| Overall | 80.8 | 87.2 | 75.9 |
| % of Sales | 4.7 | 5.1 | 4.6 |
Note: Figures include capitalized research and development costs.
R&D Structure
-As of December 31, 2019, there were 611 staff members engaged in research and development. The company mainly conducts R&D activities in Germany and Southfield, Michigan, USA.
R&D Activities
-In the fiscal year ending December 31, 2019, the company had applied for 81 patents.
-In the fiscal year ending December 31, 2019, the company conducted R&D activities in the following areas.
-Specialty gaskets
- Sealing system fitted with a compact check valve for exhaust gas recirculation system.
-Shield technology
- Temperature control system inside the exhaust pipe
-Lightweighting
- Underbody protection products for battery systems.
- Cross car beam, front end carrier and adapter design improvement, addition of new functions, production process optimization, material selections review.
-Alternative drive technology
- Improvement of cell housing, pressure equalization units, and air-input and venting elements for battery cells.
-The Company informed that it has succeeded in developing a low-temperature fuel cell stack (NM12) with a very high-power density. As part of the VOLUMETRIQ project sponsored by the European Commission, the NM12 stacks are suitable for use in both passenger cars and commercial vehicles as well as in other applications requiring a high level of performance. Other key partners involved in the development of the cell components include Johnson Matthey Fuel Cells, Solvay Specialty Polymers, and CNRS Montpellier. The NM12 platform has exceptional performance characteristics: the volumetric power density is 5.7 kW/l. The current density of 2.5 A/cm² is another central objective to have been achieved as part of this project. (From a press release on November 21, 2019)
Capital Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | |
| Overall | 130.0 | 178.6 | 166.2 |
Investments outside Germany
-The Company opened a new BRL 25 million factory in its industrial complex in Piracicaba, Brazil, site of the company's headquarters in South America. The new 6,200-square-meter facility has a 4,500-square-meter production area which will produce plastic parts including camshaft, intake manifold and gearbox covers. ElringKlinger specializes in parts for the automotive and industrial sectors, including head gaskets, plastic modules for head and crankcase covers, low weight plastic components, acoustic system protection devices, battery modules and fuel cells for hybrid and electric vehicles, as well as offering testing services for engines, tool technology. (From multiple sources on April 18, 2019)