Schaeffler AG Business Report FY ended Dec. 2014

Business Highlights

Financial overview

(in million EUR)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Rate of Change (%) Factors
  Sales 12,124 11,205 8.2 -
  EBIT 1,523 1,008 51.1 -
Automotive Division
  Sales 8,983 8,164 10.0 1)
  EBIT 1,234 683 80.7 -
Sales of Automotive Division's business units
  Engine Systems 2,266 2,035 11.4 2)
  Transmission Systems 3,826 3,322 15.2 3)
  Chassis Systems 1,364 1,313 3.9 4)
  Automotive Aftermarket 1,527 1,494 2.2 -

1) Automotive
-In 2014, revenue increased by 10.0% from the prior year to EUR 8,983 million. Excluding the adverse impact of currency translation of 0.7%, the increase amounted to 10.7%.

-By region, the Greater China reported the highest rate of 34.4% in revenue growth. The Company's "in the region – for the region" localization strategy is among the reasons behind this growth rate. Revenue in the Asia/Pacific region rose by 7.0%, revenue in the Europe region grew by 6.9% and revenue in the Americas region increased by 8.0%.

2) Engine Systems
-In 2014, the Engine Systems reported revenue growth of 11.4%. Especially, the top-selling product groups camshaft phasing units and valve train components, ranging from mechanical valve lash adjustment elements to fully variable valve train systems (e.g. UniAir), generated considerable additional revenue. The Greater China and Americas regions, in particular, contributed to this growth. The Engine Systems accounted for 25.2% of the Automotive Division's sales in 2014.

3) Transmission Systems
-In 2014, the Transmission Systems revenue increased by 15.2%, primarily as a result of growth generated by dry double clutches and actuator products. Sales of the top-selling dual-mass flywheel and torque converter product groups showed an encouragingly strong performance. The Greater China region showed a significantly positive performance. The Transmission Systems accounted for 42.6% of the Automotive Division's sales in 2014.

4) Chassis Systems
-In 2014, the Chassis Systems posted 3.9% revenue growth, mainly driven by the solid performance of ball screw drives used for instance in electromechanical power steering systems and chassis solutions (e.g. in electromechanical parking brakes). Especially, the Greater China and Europe regions generated significant additional revenue. The Chassis Systems accounted for 15.2% of the Automotive Division's sales in 2014.

Group Realignment

-The group structure was realigned in 2014. Schaeffler AG, a wholly-owned subsidiary of Schaeffler Verwaltungs GmbH, was changed to a limited liability company ("Gesellschaft mit beschränkter Haftung") when that change was entered into the Commercial Register on October 23, 2014. It was also renamed Schaeffler Verwaltung Zwei GmbH as of that date. On October 24, 2014 (date entered in the Commercial Register), INA Beteiligungsgesellschaft mit beschränkter Haftung was changed to a stock corporation ("Aktiengesellschaft") and renamed Schaeffler AG. As a result, Schaeffler Verwaltungs GmbH and Schaeffler Verwaltung Zwei GmbH held a combined 46.0% stake in Continental. As Schaeffler AG or the Company does not hold any direct or indirect investments in Continental, the Company does not include Continental in its consolidated accounting.

"Mobility for tomorrow" Strategy

-In late 2013, the Company developed its strategic concept "Mobility for tomorrow." Under this concept, the Company focuses on the four fields "eco-friendly drives," "urban mobility," "interurban mobility," and "energy chain."

-Under the "eco-friendly drives" area, the Company works on key components such as variable valve-control systems, thermal management modules, wet and dry double-clutches, and electronic control modules that help reduce CO2 emissions of conventional drives based on internal combustion engines. In addition, for the Company's automotive customers, innovative products for the field of electric mobility, such as the electric axle drive, the wheel hub drive "E-Wheel Drive," or hybrid modules, play an increasing role in achieving lower CO2 emission targets.

-As part of its strategic concept "Mobility for tomorrow," the Company has developed different concept cars for the different markets; Efficient Future Mobility India, Efficient Future Mobility North America, Efficient Future Mobility China, Gasoline Technology Car (GTC), System 48V, ACTIVeDRIVE, and Fiesta eWheelDrive.

Cooperation with Continental

Gasoline Technology Car (GTC)
-During the International Vienna Motor Symposium in May 2014, the Company and Continental presented the Gasoline Technology Car (GTC) that uses mild hybrid technologies. The GTC is based on the Ford Focus with 1.0-liter EcoBoost three-cylinder engine. The GTC reduced CO2 emissions by 17%. The new technologies are expected to meet Euro 6 standards, which are due to come into effect between 2017 and 2018.

Key mild hybrid technologies for the GTC
Supplier Components


Fuel injection unit
Engine control unit (ECU)
48-Volt Eco Drive System (electric traction motor/generator, 48V lithium-ion battery, DC-DC converter)
Schaeffler Power transmission
Decoupling tensioner
Thermal management module
Electronic clutch (e-clutch)
Emitec Electrically heatable catalytic converter

Asia Pacific Business

-The Company is poised to double its sales in the Asia Pacific region to more than EUR 2 billion by 2020. The share of Asia Pacific business of the Company's total sales is expected to increase to 15% from current 10% by the same year. The Company aims to receive more orders in the area of clutch and transmission parts and 48V hybrid systems mainly in the Japanese and Chinese markets. By enhancing its R&D capabilities in Japan and setting up a new plant in Thailand, the Company intends to meet the needs of automakers in terms of both production and development. Expanding its business in the growing markets will allow the Company to improve profitability. (From an article in the Nikkan Jidosha Shimbun on November 21, 2014)


-The Company and Honda Motor developed a 7-speed wet-type dual clutch transmission (DCT) for the all-new Legend. Main components of the DCT including dual clutches are made and supplied by the Company. The transmission is assembled at Honda's Hamamatsu Factory in Shizuoka Prefecture. The Fit Hybrid and Vezel Hybrid already adopt DCTs but the Legend is the first Honda model to use a wet-type DCT. (From an article in the Nikkan Jidosha Shimbun November 12, 2014)

-The Company received its first order for its centrifugal pendulum dampers for use in automatic transmissions (ATs) from Toyota Motor. The Company will start supplying the products to Toyota in 2015. A centrifugal pendulum damper is used to dampen engine vibration. Recently, engines are designed to generate more vibration as automakers seek fuel-efficiency improvements. The Company's independently developed centrifugal pendulum damper incorporates a technology for absorbing vibration through its pendulum mechanism. The damper changes its frequency according to revolution speed of the engine; thus, it provides superior vibration damping even at low revolutions. Mass-production of the product began in 2008. The dampers have been chosen mainly by European makers, and are used for ATs of Mercedes Benz and manual transmissions of BMW. (From an article in the Nikkan Jidosha Shimbun on October 29, 2014)

UK Project: ACTIVE (Advanced Combustion Turbocharge Inline Variable Valvetrain Engine)

-Schaeffler (UK) Ltd is one of 11 UK-based technology partners involved in the ACTIVE (Advanced Combustion Turbocharge Inline Variable Valvetrain Engine) project, a multi-million pound investment by government and industry. ACTIVE is focused on Ford's 1.0-litre EcoBoost engine and will accelerate the introduction of future-generation low carbon technologies, including advanced turbocharging, advanced combustion system development and variable Valvetrain technology, targeting significant CO2 savings. Ford and its partners will receive a GBP 13.1 million grant for their GBP 100 million program to upgrade the EcoBoost engine. The 11 partners include Ford, Schaeffler UK, Continental, and UEES (Unipart Eberspaecher Exhaust Systems). Schaeffler currently supplies mechanical tappets and the VCT (variable cam timing) system for use on Ford's 3-cylinder 1.0-liter EcoBoost engine. (From a press release on May 23, 2014)


Presenter Awards Products
GM Supplier Quality Excellence Award -
Automotive News 2014 PACE Awards Fuel-saving and vibration-reducing torque converter
Shanghai GKN HUAYU Driveline Systems (SDS) 2013 Supplier Quality Award -
- Innovation of the Year E-Wheel Drive
- Silver Materialica Design + Technology Award Coating system Triondur



R&D Expense

(in million EUR)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 626 611 593
% of Sales 5.2 5.5 5.3


R&D Structures

-As of December 31, 2014, the Company employed 6,387 R&D staff in 16 R&D centers.
-Number of R&D locations by region: Europe (9), Americas (4), Greater China (1), Asia/Pacific (2)
-With 2,518 new patents registered in Germany, the Company once again ranked second among the most innovative companies in Germany in 2014. 2,772 inventions were reported internally in 2014 (prior year: 2,584).
-In 2014, the Company established a Technology Board to further bolster the Company's innovative ability.

R&D Facilities

-The Company announced that it will strengthen development operations for Japanese automakers. Its Japanese subsidiary and research and development base will be relocated within Yokohama City in May 2015. The site will be expanded threefold to 6,000 square meters by 2020. The number of employees will also be doubled. By the end of 2015, the Company will set up a contact center in Utsunomiya City, Tochigi Prefecture, to provide services for Honda Motor Co., Ltd. In addition, an engine and transmission parts production plant will be built in Chonburi, Thailand. The plant will begin operations in the first half of 2016 to supply its products mainly for Japanese automakers. In Thailand, the Company currently uses a part of the plant of Continental AG, its group company. Construction of the 55,000-square-meter plant will begin in the first half of 2015. Initially, the plant will produce clutch discs, clutch pressure plates, belt tensioners, rings for synchronizers and clutch release systems on five lines. (From an article in the Nikkan Jidosha Shimbun on October 30, 2014)

Product Development

New torque converter Intelligent Torque Converter (iTC)
-The Company developed a new torque converter for automatic transmissions, intelligent torque converter (iTC) that features thinner body. The Company integrated a turbine and a lock-up clutch into one component in order to make the converter 10% thinner than conventional torque converters and create additional room for vibration dampers. The Company plans to propose the new product to automakers, aiming to start its mass production within a few years. (From an article in the Nikkan Jidosha Shimbun on May 26, 2014) >>> 2014 JSAE Automotive Engineering Exposition

Compact 48V electric drive module
-The Company developed a compact 48V electric drive module that includes a clutch and planetary transmission, which can be placed either on the front or the rear axle of the vehicle. The use of a 48V electric system that has an output of up to 12kW opens up operational possibilities that were previously the exclusive domain of vehicles equipped with high-voltage hybrid components, including "crawling" in traffic jams – electrically powered driving in dense inner-city traffic, i.e. moving off, driving at low speeds, and parking using electric power. (From a press release on April 4, 2014)

New detent bearing
-The Company offers an integral solution for the bearing support of gearshift elements without affecting the design envelope. The Company's new detent bearing offers an alternative solution for locking gearshift forks in situations where the available design space and using conventional detent pins and locking contours is difficult. The new combination comprising a locking function and a bearing for rotary and linear motion (RLF) provides an interesting alternative for designers, as detent bearings can be integrated into both the outer and center walls of transmissions. The level of integration can be further increased by implementing a sensor in the detent bearing if the gear position of the gearshift fork has also to be detected and the shift travel measured. This sensor bearing is particularly suited to use in automated manual transmissions such as dual clutch transmissions and automated sequential gearboxes. (From a press release on February 19, 2014)


Investment Activities

Capital Expenditure

(in million EUR)
FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 943 573 827
-Automotive 754 441 618

Investment Outside Germany

-The Company announced that it has inaugurated its first manufacturing facility in Russia. The Company will deliver its products to domestic and overseas automobile manufacturers and the railway industry from its new production plant in Ulyanovsk. The plant is currently producing clutches and manual transmission components on two production lines. It currently has over 100 employees with a total of around 300 jobs planned. (From a press release on October 13, 2014)

-The Company held an opening ceremony for its Hall 5 at the Taicang manufacturing campus in Jiangsu Province, China. Construction of Hall 5 at the Schaeffler Taicang manufacturing campus began in April 2013 and trial production commenced following its completion in January this year. Built as an extension of Plant 3, this latest production facility will primarily manufacture wet double clutches and hydraulic torque converters. Both types of product are key components for automatic transmissions, and this is the first time that they are being manufactured in China. (From a press release on April 17, 2014)