Schaeffler AG (SFFLY) Q4 2024 Earnings Call Transcript

2025-03-05 09:28:29 ET

Schaeffler AG (SFFLY)

Q4 2024 Earnings Conference Call

March 05, 2025 06:00 AM ET

Company Participants

Heiko Eber - Head, Investor Relations

Klaus Rosenfeld - Chief Executive Officer

Claus Bauer - Chief Financial Officer

Conference Call Participants

Christoph Laskawi - Deutsche Bank

Akshat Kacker - JPMorgan

Horst Schneider - Bank of America

Sanjay Bhagwani - Citi

Presentation

Operator

Ladies and gentlemen, welcome to the Schaeffler Group Q4 and Full Year 2024 Earnings Conference Call and Live Webcast. I am Yusef, the Chorus Call operator. I would like to remind you that all participants will be in a listen-only mode. And that the conference is being recorded. The presentation will be followed by a Q&A session. [Operator Instructions] The conference must not be recorded for publication or broadcast.

At this time, it's my pleasure to hand over to Heiko Eber, Head of Investor Relations. Please go ahead.

Heiko Eber

Thank you very much operator. Ladies and gentlemen, I'm very happy to welcome you to our today's call on the financial results 2024. The press release, the following presentation and our annual report has been published today at 8 a.m. CET on our Investor Relations home page. And for sure, we will provide a recording and a transcript of this website after the call.

Now, before we take a look at today's agenda, I'm sure that you have all taken notice of our well-known disclaimer. Looking at the agenda, Klaus Rosenfeld, our CEO, and Claus Bauer, our CFO, have joined the conference call to guide you through the key information in our presentation. And of course, we will also discuss our guidance for 2025. Afterwards, both gentlemen will be available for our Q&A session.

And now, without further ado, let me hand over to our CEO, Klaus Rosenfeld.

Klaus Rosenfeld

Thank you, Heiko. Ladies and gentlemen welcome to our earnings call. I start on Page 4 of the presentation that you received and would like to quickly summarize the key messages for the past full year, you see it here on this page, mix performance in 2024, sales up by nearly 13% but more or less driven by the full consolidation of Vitesco in the fourth quarter.

From an organic point of view, certainly worth to mention that VLS continued to grow also in the fourth quarter very nicely with double-digit growth for the full year, margin at 4.5%, certainly a blended margin of the Schaeffler's standalone businesses plus Vitesco for the specific consolidation logic in the year 2024. Schaeffler standalone margin would have been somewhere at around 6% and that then explains, the delta is then explained by the consolidation of Vitesco at Schaeffler, IFRS.

Free cash flow I think a positive development, strong better than expected 363 million. And that is true, despite a lower EBIT as well as the integration and financing costs that Claus will explain. You see our guidance. Our guidance are not for the three segments we reported in 2024 plus other, but guidance for the four new segments with the structure that we already indicated E-Mob, PTC, VLS and the Bearings & Industrial Solutions part plus another column that I will explain in more detail. For sure that guidance becomes even more readable, if you get the pro formas, they are not ready yet today but they will be provided in due course and Claus will explain that in more detail....

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