Schaeffler AG Business Report FY ended Dec. 2015
|(in million EUR)|
|FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||Rate of Change (%)||Factors|
|Sales of Automotive Division's business units|
1) Net Sales
-In the fiscal year ended December 31, 2015, the Company’s sales increased by 9.1% over the previous fiscal year to EUR 13,226 million. Excluding the positive effect of foreign currency translation, the Company’s sales grew by 3.5%. The increase in sales was driven by higher volumes in the Automotive division and was partially offset by a decline in the Industrial division.
-The Company’s EBIT dropped by 7.9% to EUR 1,402 million in the fiscal year ended December 31, 2015. The primary cause for the decrease in EBIT was special items, including a EUR 238 million provision for legal risks in connection with EU antitrust proceedings, and EUR 36 million due to the realignment of the Industrial division.
3) Automotive division sales
-Sales for the Company’s Automotive division increased by 11.2% in the fiscal year ended December 31, 2015 to EUR 9,993 million. The growth of the Automotive division surpassed growth in global production volumes for passenger cars and light commercial vehicles, due to an increase of Company products installed per vehicle. Demand for the Company’s automotive offerings was particularly strong in the U.S.
4) Engine Systems
-The Engine Systems business unit had sales of EUR 2,585 million in the fiscal year ended December 31, 2015, an increase of 14.1% from the previous year. The growth in sales was due to increased sales of variable valvetrain components and accessory drive products. Production startups, such as the thermal management module, also contributed to the increase in sales.
5) Transmission Systems
-Sales for the Transmission Systems business unit increased by 10.8% to EUR 4,240 million in the fiscal year ended December 31, 2015. Increased sales for automated transmission components, clutches and gearing components in manual transmissions, and dual-mass flywheels were a factor in the business unit’s growth.
6) Chassis Systems
-The Company’s Chassis Systems business unit grew by 7.9% to EUR 1,468 million in the fiscal year ended December 31, 2015. The growth was driven by the solid performance of the newest generation of wheel bearings.
7) Automotive Aftermarket
-During the fiscal year ended December 31, 2015, the Company’s Automotive Aftermarket business unit had sales of EUR 1,700 million, an increase of 10.8% from the previous year. This was due to higher sales in the Americas and Europe regions, which stemmed from increased market coverage from an expanded customer base.
-Schaeffler Engineering GmbH merged with Ingenieurgesellschaft fur Triebwerkstechnik mbH (IFT), a 100% subsidiary of Schaeffler Technologies AG & Co KG. Following this merger, the engineering service provider will operate under the Schaeffler Engineering GmbH name. The merging of the two service providers was planned ever since the takeover of IFT by the Company in 2013. (From a press release on July 7, 2015)
-The Company completed its IPO on October 8, 2015. In total, 75 million non-voting common shares were placed with institutional investors. Gross proceeds amount to approximately EUR 938 million. The non-voting common shares will be traded as of October 9, 2015 on the regulated market (Prime Standard) of the Frankfurt Stock Exchange. (From a press release on October 8, 2015)
-Schaeffler Japan Co., Ltd. in Yokohama, a subsidiary of the Company, is exploring business opportunities in the Japanese aftermarket. In 2011, the Company appointed sales personnel dedicated to aftermarket business to develop a new customer base among parts traders and maintenance shops. In the spring of 2015, the Company appointed sales staff to work with car dealers. The newly appointed sales representatives have begun marketing drivetrain and chassis components targeting new car dealers. (From an article in the Nikkan Jidosha Shimbun on July 8, 2015)
-The Company announced that its Nanjing Plant in China will start producing truck wheel bearings later in 2015. Its annual production volume is expected to reach 500,000 units. (From news releases issued by multiple sources on June 9, 2015)
-The Company announced that it has received Ford Motor's "World Excellence Award" in the category of "Smart Pillar." Products that the Company provides for Ford include clutch systems, dual mass flywheels, finger followers with hydraulic pivot elements, camshaft phasing units, and bearing solutions for the drivetrain. (From a press release on June 17, 2015)
-The Company announced that it has received a gold award in the category of Value Analysis from Toyota Motor Europe. The Company currently produces engine and transmission components for Toyota in seven European plants. The product portfolio includes mechanical tappets, clutches, dual mass flywheels, detent pins and hydraulic pivot elements. (From a press release on May 6, 2015)
|(in million EUR)|
|FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||FY ended Dec. 31, 2013|
|% of Sales||5.4||5.1||5.5|
-As of December 31, 2015, the Company has approximately 6,650 employees working in research and development across 17 research and development centers.
-In 2015, the Company reported 2,643 inventions internally.
-The Company's research and development centers are distributed as follows:
- Europe: 9 centers
- Americas: 5 centers
- Greater China: 1 center
- Asia-Pacific: 2 centers
-The Company announced that its office in Bangkok, Thailand has received the Schaeffler Technology Center (STC) certification and is now a part of the corporate Global Technology Network. Schaeffler Technology Centers are only given the certification after a thorough audit in which the organizations have to demonstrate a specific range of high-standard knowledge in twelve competencies relating to bearings solutions such as mounting services and failure analysis. (From a press release on August 6, 2015)
-The Company’s subsidiary, Schaeffler Japan Co., Ltd., unveiled its new head office and Central Research Institute, which was moved to Yokohama Business Park in Hodogaya-ku, from Kanagawa-ku, Yokohama, in May 2015. The new institute has a total floor space of 4,700 square meters, a significant increase from the 2,000 square meters of the older facility. The Institute has seven development teams: RAP Laboratory, Laboratory Operation, Test Laboratory, Design/CAE, Material Laboratory, Tribology/Chemistry Laboratory, and Metrology Laboratory. "Development methods change with the evolution of automobiles. This institute will play a key role in Schaeffler Group's growth for the next 10 years, serving as a bridge between the company's bases in Europe and Japan," says Schaeffler Japan's Managing Director Shinzo Yotsumoto. The Company is planning to increase the number of employees from 270 to 500 from by 2020, and also planning to introduce testing facilities such as evaluation equipment of engine systems. (From an article in the Nikkan Jidosha Shimbun on August 4, 2015)
-The Company will develop materials and processing technologies in collaboration with Japanese universities and research institutions. The Company's Japanese development center has primarily conducted joint development and adaptation projects with Japanese OEMs and has not focused on developing materials and processing technologies prior to the announcement. The Company has judged that developing new materials and processing technologies in Japan will raise the quality of its products. (From an article in the Nikkan Jidosha Shimbun on April 7, 2015)
-The Company announced that it is participating in a project called "Intelligent Assisted Steering System with Optimum Energy Efficiency for Electric Vehicles (e2-Lenk)" with the Karlsruhe Institute for Technology (KIT). The project is subsidized by the Federal Ministry for Education and Research (BMBF) and focuses on a new assisted steering concept. In conventional vehicles, the internal combustion engine not only accelerates the car but also supplies on-board assist systems, such as the assisted steering system, with power. In electric vehicles, this energy comes from the battery and also reduces the range as a result. In the project, the steering system is assisted in an energy-efficient manner by intelligent control of the drive torques transmitted to the individual wheels. The BMBF will provide approximately EUR 0.6 million over three years for the project. (From a press release on March 30, 2015)
Next-generation electric drive system
-The Company will begin mass production of its next-generation electric drive system in 2017. The system incorporates an electric motor to the rear axle or the transmission clutch and will be supplied to Asian automakers producing plug-in hybrids. This will be the first time that the Company produces electric drive systems in volume. The Company will pursue sales of the system to automakers by highlighting its versatility in applications to various power sources and transmissions. (From an article in the Nikkan Jidosha Shimbun on December 8, 2015)
Electromechanical active roll control system
-The Company announced that its electromechanical active roll control system will go into volume production. This system replaces the standard hydraulic stabilizers that minimize the rolling motion of the vehicle body when going around curves or during quick evasive maneuvers. In turn, this reduces fuel consumption by up to 0.3 liters/100 km compared to hydraulic systems. The technology also makes it possible to effectively prevent any vehicle yaw. In preparation for the volume production launch of the new system, The Company has built completely new production facilities at its Schweinfurt location in Germany. (From a press release on September 3, 2015)
Schaeffler Future Mobility China concept car
-The Company has developed a concept car called Schaeffler Future Mobility China, which utilizes a P2 hybrid system. The P2 system signifies that the electric motor is located between engine and transmission, while a dedicated hybrid clutch disconnects the combustion engine during electric drive. Other concept car powertrain components include an efficient double clutch transmission and a 3-cylinder 1.0L turbocharged engine. These replace the 4-cylinder 1.6L engine and automatic transmission present in the base vehicle, a Changan Eado 2013 sedan. (From a press release on April 19, 2015)
Planetary screw drive for electromechanical linear actuators
-The Company has developed a new planetary screw drive for electromechanical linear actuators. The new planetary screw drive can support very high loads at small spindle pitches of less than 5 mm. The high power density of the new planetary screw drive enables its use as a substitute for hydraulic drives. (From an article in the Nikkan Jidosha Shimbun on April 14, 2015)
-The Company has developed a electronic clutch (E-clutch) as an automatic alternative to mechanical or hydraulic systems. The system can operate the clutch either in specific situations, or fully automate all clutch operations. This allows vehicles with manual transmissions to implement fuel-saving driving strategies by techniques such as disconnecting the engine from the transmission or electrically supported driving.
|(in million EUR)|
|FY ended Dec. 31, 2015||FY ended Dec. 31, 2014||FY ended Dec. 31, 2013|
-During the fiscal year ended December 31, 2015, the Company's capital expenditures were invested in the following categories:
- 38% was invested in additions to expand production capacity.
- 31% was invested for new product startups.
- 14% was invested to replace plants.
- 11% was invested to expand plant functionalities.
- 4% was invested for rationalization measures.
Investment Outside Germany
-The Company announced the opening of its new plant in Huejotzingo, Puebla, Mexico. The new plant specializes in the manufacture of torque converters for U.S. and Japanese automobile manufacturers. It has a production area of approximately 16,000 square meters and a research and development center. The plant will have approximately 550 employees. Plans for future expansions of the plant are already underway. (From a press release on December 18, 2015)
-With investments of more than EUR 92.5 million and the creation of 960 new jobs over a period of three to five years, the Company's new manufacturing plant in Svitavy, the Czech Republic will provide a significant boost to the Company's sustainable growth in Eastern Europe. The foundation stone was laid on November 4 to mark the start of construction on the new manufacturing hall in Svitavy's industrial district. EUR 18.5 million will be spent on the construction of the new manufacturing hall. Production will begin in the fall of 2016. The plant is expected to operate at full capacity by 2019. The plant will primarily focus on manufacturing thermal management modules. A large proportion of the investment will be used for the procurement of new machines. (From a press release on November 5, 2015)
-The Company announced that it celebrated the foundation stone laying ceremony for a greenfield manufacturing facility at Chonburi, Thailand. The new facility will significantly expand the production footprint of the Company in the Asia Pacific region and especially in Southeast Asia with the introduction of new product lines. The new manufacturing facility will be built at a 55,000-square-meter site. Start of production is planned for the first quarter of 2016. The product lines that will be launched in phase 1 include clutch discs and clutch pressure plates, mechanical and hydraulic belt tensioners, synchronizer rings, clutch release bearings and clutch release systems. (From a press release on February 9, 2015)