Schaeffler (SHA0) Pre-Close Call summary

Executive summary

• Merger with Vitesco completed on October 1st; Vitesco figures shown standalone for Q3, with full consolidation in Q4 2024.

• Q3 sales growth expected to be slightly negative, following +4.2% in Q2 2024 and +0.4% in Q3 2023, reflecting weak global demand in both automotive and industrial sectors.

• Free cash flow is on track to meet full-year guidance of EUR 200-300 million, with a significant quarter-on-quarter increase.

Trading performance and revenue trends

• Automotive Technologies division continues to outperform peers, especially in e-mobility, despite negative development across all regions.

• Vehicle Lifetime Solutions (aftermarket) maintains strong double-digit sales growth, particularly in Europe.

• Bearings and Industrial Solutions face lower sales year-over-year, especially in wind sector and Europe, with some site shutdowns to adjust capacity.

• Vitesco's sales are flat quarter-on-quarter, with e-mobility showing strong top-line growth despite overall market challenges.

Profitability and margins

• EBIT margin for Automotive Technologies is significantly below prior year and slightly lower quarter-on-quarter, impacted by e-mobility ramp-up.

• EBIT margin remains sequentially unchanged at 4.9% in Q2 2024, down from 8.4% in Q3 2023.

• Vitesco achieves improved adjusted EBIT and profitability, supported by reduction in Non-Core business and e-mobility margin gains.

• Industrial EBIT margin remains clearly below prior year, with Q2 identified as the weakest quarter and only a slight upward trend seen.