From the Sector

Mit Relive-1 lanciert Autoneum einen innovativen Tuftingteppich, der höchsten Ansprüchen an nachhaltige Mobilität gerecht wird. Die mit dem «Autoneum Pure.»-Label für besondere Umweltfreundlichkeit ausgezeichnete Tuftingtechnologie für die Kompaktbis Premiumklasse ist gegenüber dem in diesen Fahrzeugsegmenten üblichen Teppichstandard zudem langlebiger und überzeugt mit einer exzellenten Reinigungsfähigkeit.

Die globale Nachfrage nach innovativen Fahrzeugen der Zukunft und nachhaltigen Mobilitätsformen steigt. Automobilhersteller und Zulieferer fokussieren sich in der Fahrzeugentwicklung entsprechend verstärkt auf ressourcenschonende Leichtbaukomponenten und Produktionsprozesse. Darüber hinaus sind Optik und Haptik der Passagierkabine ausschlaggebend für die Kaufentscheidung, da das Auto in Zukunft verstärkt für Arbeit und Erholung genutzt wird. Hier beeinflussen Teppichsysteme durch ihre Grösse die Qualitätswahrnehmung entscheidend. Mit Relive-1 bietet Autoneum neu eine Premiumtechnologie für Fahrzeugteppiche an, die nicht nur mit ihrem ästhetischen Erscheinungsbild punktet, sondern auch eine überdurchschnittliche Umweltbilanz aufweist. Unter anderem überzeugen Teppiche aus Relive-1 durch einen besonders nachhaltigen Einsatz von Rohmaterialien: So werden für die Herstellung der Teppichfasern nur rezyklierte PET-Flaschen verwendet. Autoneum verwertet diesen Rohstoff wieder, schont so natürliche Ressourcen und verringert Plastikmüll – und sorgt gleichzeitig dafür, dass aus ausgedienten PET-Flaschen neue, hochwertige Teppichsysteme für kommende Fahrzeuggenerationen kosteneffizient produziert werden können. Darüber hinaus stellt Relive-1 einen bedeutenden Schritt zu Monomaterial-Konstruktionen und somit zu einer abfallfreien Fertigung von Tuftingteppichen dar.

Gleichzeitig steht Relive-1 einmal mehr für die überdurchschnittliche Produktqualität von Autoneum: Im Vergleich zu Standardteppichen der Kompakt- bis Oberklasse sind Relive-1-Teppiche dank signifikant höherer Abriebfestigkeit robuster und durch die vertikale Ausrichtung der Fasern sowie wasserabweisende Wirkung des Polyesters leicht zu reinigen. So können kleine Partikel wie Holzsplitter, Staub oder Steine, aber auch Flüssigkeiten problemlos und ohne Rückstände entfernt werden, was ein entscheidender Vorteil bei häufig in der Freizeit genutzten Fahrzeugen wie SUVs ist. Die Verbindung von herausragender Leistung und Nachhaltigkeit definiert heute bei Fahrzeugen der Premiumklasse den neuen Luxusstandard.

The coronavirus pandemic and its massive impact on the automotive industry led to an un-precedented market slump in the first half of 2020 and a corresponding revenue decline at Autoneum. Revenue in local currencies fell by –32.7% compared to the prior-year period, and in Swiss francs by –36.8% to CHF 730.6 million. The turnaround program for the North American sites made further progress in the first six months and is showing the targeted results. However, they were clearly overcompensated by the massive impact of the corona-virus crisis, which led to a negative net result of CHF –54.9 million despite comprehensive cost flexibilization measures.

Like the entire automobile industry, Autoneum was massively impacted by the effects of the corona-virus pandemic in the first half of the year. The temporary plant closures at almost all customers in every region, especially in the second quarter of the year, not only led to an unprecedented market collapse, but also to a production stop at all 55 Autoneum sites. Starting in February in China and one month later in all other regions, vehicle manufacturers temporarily shut down production completely. The corresponding massive drop in global vehicle production led to a slump in revenue at Autoneum of –32.7% in local currencies. This reflects the development of the market in the first half of 2020, which contracted by –33.2% year-on-year. Revenue in Swiss francs at Autoneum fell by –36.8% to CHF 730.6 million (prior-year period: CHF 1 156.1 million). Revenue development in all Business Groups outperformed the respective markets, particularly in Asia and the SAMEA (South America, Middle East and Africa) region.

 Like the entire automobile industry, Autoneum was massively impacted by the effects of the corona-virus pandemic in the first half of the year. The temporary plant closures at almost all customers in every region, especially in the second quarter of the year, not only led to an unprecedented market collapse, but also to a production stop at all 55 Autoneum sites. Starting in February in China and one month later in all other regions, vehicle manufacturers temporarily shut down production com-pletely. The corresponding massive drop in global vehicle production led to a slump in revenue at Autoneum of –32.7% in local currencies. This reflects the development of the market in the first half of 2020, which contracted by –33.2% year-on-year. Revenue in Swiss francs at Autoneum fell by –36.8% to CHF 730.6 million (prior-year period: CHF 1 156.1 million). Revenue development in all Business Groups outperformed the respective markets, particularly in Asia and the SAMEA (South America, Middle East and Africa) region.

Autoneum promptly responded to the pandemic-related market slump by adopting extensive cost-cutting measures in all regions. These include the reduction of employee costs by, among other things, adjusting time accounts, introducing short-time work at eligible locations and temporary layoffs as well as headcount reduction, mainly among temporary workers. In addition, operating expenditures were limited to the absolutely necessary. The investment volume for 2020, already reduced from previous years, was downsized even further. Autoneum continues to benefit in this regard from the high level of investments undertaken in recent years.

 Although the coronavirus crisis and the measures taken to contain it dominated Autoneum’s course of business in the first half of 2020, the Company achieved necessary operational and financial im-provements during this period. The comprehensive turnaround program for the North American sites made further progress and is on track. Efficiency improvements already achieved there had a posi-tive effect on the figures of the first half-year, but were significantly overcompensated by the substan-tial impact of the COVID-19 crisis. Savings and cost flexibilization measures taken immediately and implemented worldwide in view of the revenue loss could not offset the ongoing, capacity-related fixed costs. This led at the Group level to a negative EBIT of CHF –31.8 million (prior-year period: CHF 16.4 million), which equates to an EBIT margin of –4.4% (prior-year period: 1.4%). The net result decreased because of the severe revenue shortfall to CHF –54.9 million (prior-year period: CHF –6.0 million).

Outlook
For 2020 Autoneum expects revenue to develop at market level. Although customers’ production volumes should increase again in the second half of 2020 compared with the first semester, latest fore-casts indicate that they will remain clearly below the level of the second half of 2019. Immediately implemented and ongoing cost reduction measures as well as further operational optimizations also within the turnaround program in North America will lead to improvements in the second half of the year. Due to the current uncertainties, a reliable statement on the net result for the full year 2020 thus cannot be made. With regard to the mid-term targets, a recovery of the profitability level is expected, but it will largely depend on the market development.

Technologies with an excellent environmental performance throughout the entire product life cycle – that is what “Autoneum Pure.” stands for. In future, components that meet the highest standards in terms of sustainability and eco-friendliness can be identified at a glance under this label. This also includes the innovation “Mono-Liner” for wheelhouse outer liners.

As innovation leader in acoustic and thermal management, Autoneum continuously invests in the development and production of resource-saving components that make cars lighter and thus more climate-friendly. In view of an increasing sustainability awareness and the correspondingly greater information needs on environmentally-friendly vehicle components, the Company has now launched Autoneum Pure. The label determines particularly sustainable technologies, thereby guiding car manufacturers in product selection for future models.

Autoneum Pure is based on a comprehensive set of criteria assessing the sustainability performance of a product in all four phases of its life cycle: material procurement, production, use and end of life. For example, components with a high content of recyclable materials or those that achieve significant weight savings compared to comparable standard components qualify for the “Autoneum Pure.” label. Autoneum already offers various multifunctional technologies that meet the high standards for Autoneum Pure products: Ultra-Silent for underbody systems or battery undercovers, Di-Light for carpet systems, Prime-Light and IFP-R2 for inner dashes and floor insulators as well as Hybrid-Acoustics PET for e-motor encapsulations and engine-mounted parts, which was launched in fall 2019.

With Mono-Liner, the latest innovation for wheelhouse outer liners is also included in the Autoneum Pure portfolio. Among other things, the Mono-Liner-based components convince thanks to their lightweight construction, thereby contributing to lower vehicle weight with correspondingly less fuel consumption and emissions. The excellent life cycle assessment is also based on their particularly resource-saving manufacturing: Production cut offs of the components, which consist to a large extent of recycled PET fibers, can be processed into pellets and completely returned to the manufacturing process as fibers. An SUV and a crossover model from a US vehicle manufacturer already benefit from Mono-Liner wheelhouse outer liners.

Anahid Rickmann, Head of Corporate Communications & Responsibility, explains: “With Autoneum Pure we are the first automotive supplier to establish a sustainability label in the field of acoustic and thermal management. Autoneum Pure is part of the Company's Advance Sustainability  Strategy 2025 and sets industry standards in product communication.”

The corona pandemic has a significant impact on the global economy and thus also on the global automotive industry. The temporary plant closures at almost all customers in all regions will result in a revenue decline at Autoneum in the current year, the extent of which cannot yet be estimated.

In addition to the ongoing cost-saving programs, Autoneum has therefore decided on a comprehensive set of measures to further increase the flexibility of personnel and material expenses. This includes staff adjustments, e.g. by reducing the number of temporary employees in plants. In addition, short-time work at the Swiss sites, the Group’s headquarters in Winterthur and at the Sevelen plant (canton of Sankt Gallen), as well as short-time work in some other European countries and temporary closures of production facilities in various regions in line with those of customers are being implemented. With these measures, Autoneum is at the same time making its contribution to protecting the workforce, breaking chains of infection and containing the spread of this pandemic.

Despite the above-mentioned countermeasures and in light of the advancing spread of the coronavirus, Autoneum does not expect to achieve its targets for the business year 2020. Due to the considerable uncertainties regarding the course and duration of the pandemic, no updated outlook is provided for 2020 for the time being.

Net result impacted by operating losses and high impairments in North America

In 2019, Autoneum grew organically by 2.5% and has thereby significantly outperformed the declining market. In Swiss francs, revenue rose slightly to CHF 2 297.4 million. However, as previously communicated, operational inefficiencies in North America and impairments on fixed assets in that region had a particularly strong impact on profitability and led to a net loss of CHF –77.7 million. The Board of Directors therefore proposes that no dividend bedistributed for the 2019 financial year. Based on the new turnaround program launched in North America at the beginning of this year, significant profitability increases are expected for 2020.

2019 was an extremely challenging year for the automobile industry. The continuing weakness of the global economy, ongoing trade disputes and the increasing regulation of mobility impacted vehicle demand negatively. But 2019 was also a year of change for Autoneum internally. An in-depth analysis carried out by the new Group Management in the fall showed a need to reevaluate the Group’s performance over the short- to medium-term. In Business Group North America, the operational and commercial problems have proven more extensive than originally assumed. As a result, the turnaround program launched in spring 2019 was replaced at the beginning of 2020 with a dedicated and far more comprehensive program for the North American sites.

Revenue growth despite a shrinking global market
As a result of weak demand, the number of light vehicles produced worldwide fell again sharply in 2019 compared to the previous year; whereby the decline of almost –6% was much steeper than in 2018. Thanks to numerous production ramp-ups and a favorable model portfolio, Autoneum generated organic revenue growth1 of 2.5%, despite the global market cooling. Revenue consolidated in Swiss francs rose by 0.7% from CHF 2 281.5 million to CHF 2 297.4 million.

Profitability2 impacted by operational inefficiencies and impairments
Operational inefficiencies in North America and impairments on fixed assets in this region were the main reason for the – first-ever – negative net result in 2019. In addition, the sharp drop in automobile production in Europe and China as well as associated lower utilization of production capacities in the affected Business Groups also burdened the Group’s profitability. EBITDA excluding IFRS 16 effects decreased to CHF 126.0 million (2018: CHF 197.2 million), which corresponds to an EBITDA margin of 5.5% (2018: 8.6%). One-time charges from impairments in the amount of CHF –68.0 million had a negative impact on EBIT, reducing it to CHF –32.9 million (2018: CHF 114.1 million). Without these one-time charges, EBIT amounted to CHF 35.0 million. The EBIT margin 1 Change in revenue in local currencies, adjusted for hyperinflation. 2 The figures for the 2019 financial year include IFRS 16 effects. Autoneum Management Ltd . Media Release . March 4, 2020 Page 2/5 excluding impairments was at 1.5% in 2019, and taking those into account the margin decreased to –1.4% (2018: 5.0%).

The two major shareholders Michael Pieper and Peter Spuhler have granted Autoneum Holding Ltd two subordinated loans of CHF 20 million each. This not only emphasizes their personal and financial engagement, but also their confidence in the Company. The loans have a fixed term until January 15, 2021. Michael Pieper explained: “Strategically and with its product portfolio, the Company is very well positioned for the challenges related to the transformation of the automotive industry.” Peter Spuhler underlined: “The loan is a sign of my confidence in the Company and its potential.”

Lighter, quieter and more environmentally-friendly vehicles ‒ this is what Hybrid-Acoustics PET from Autoneum stands for. The product innovation for the engine bay is not only characterized by its lightweight construction and noise protection optimized for electric vehicles, it also convinces through sustainability: Components made of Hybrid-Acoustics PET consist entirely of PET, which is largely obtained from recycled fibers, and thus meet customer demand for environmentally-friendly mobility solutions.

With Hybrid-Acoustics PET, Autoneum has adapted its textile interior technology Hybrid-Acoustics for use in the engine compartment. The patented innovation is based on a unique fiber material that acts as an insulator and absorber at the same time. Among others, Hybrid-Acoustics PET is used to encapsulate electric motors, thereby reducing noise directly at the source and particularly attenuating high-frequency sounds of the electric drive unit. This key technology accordingly ensures optimum noise protection in the passenger cabin and greater driving comfort.

Der Verwaltungsrat der Autoneum Holding AG ernennt Bernhard Wiehl, den langjährigen Leiter Finance & Controlling der Business Group Europe, mit sofortiger Wirkung zum Chief Financial Officer (CFO) und Mitglied der Konzernleitung. Der bisherige CFO Dr. Martin Zwyssig hat sich entschieden, Autoneum zu verlassen.
 
Bernhard Wiehl verantwortet seit 2013 den Bereich Finance & Controlling der Business Group Europe. Auch dank seiner finanziellen Führung hat sich diese Business Group mit ihren zahlreichen Landesgesellschaften in den vergangenen Jahren hochprofitabel entwickelt. Vor seinem Eintritt bei Autoneum hatte er leitende Finanz- und Controlling-Funktionen bei verschiedenen Zulieferern der Automobilindustrie inne und verfügt daher über umfassende Erfahrung in der finanziellen Führung von international tätigen Automobilzulieferern. Mit den Herausforderungen der Automobilindustrie im globalen Umfeld ist er bestens vertraut. Von 2007 bis 2013 war er Leiter Finance & Controlling und Mitglied der Geschäftsleitung der Divisionen Licht und Elektronik beim deutschen Autozulieferer Hella und von 2004 bis 2007 unter anderem für das Controlling der Europa-Sparte des Zulieferers Hydraulik-Ring zuständig. Seinen beruflichen Werdegang startete er 1995 bei TRW Automotive in Deutschland. Bernhard Wiehl hat Maschinenbau und Wirtschaftsingenieurwesen an der Fachhochschule Esslingen, Deutschland, studiert und ist diplomierter Wirtschaftsingenieur (FH).
 
Bernhard Wiehls Vorgänger Dr. Martin Zwyssig hat sich entschieden, das Unternehmen zu verlassen und eine neue berufliche Herausforderung anzunehmen. Der Verwaltungsrat und CEO Matthias Holzammer danken Martin Zwyssig für seinen Einsatz für das Unternehmen und wünschen ihm für die berufliche und private Zukunft alles Gute. 

With the announcement of the eligible vehicle models, the World Car Awards 2020 kickedoff today at the IAA Motor Show in Frankfurt, Germany. This year again, the majority of contenders is equipped with lightweight components for acoustic and thermal management from Autoneum. The world’s leading automobile industry awards will be presented at the New York Motor Show in the spring of 2020.

A total of 46 new vehicle models have passed the initial screening and are now contenders for trophies in the categories “World Car of the Year”, “World Luxury Car”, “World Performance Car”, “World Urban Car” and “World Car Design of the Year”, including five new fully-electric models alone. Whether it’s a lightweight underbody, a noise-absorbing carpet system or a heat-reducing engine encapsulation – most of the eligible vehicles benefit from Autoneum’s innovation leadership in thermal and acoustic management. Autoneum’s expertise extends to new forms of mobility such as electric vehicles: Also thanks to numerous Autoneum components, Jaguar’s fully-electric SUV “I-PACE” impressed the jurors for the World Car Awards 2019, which was the first model ever to be named “World Car of the Year”, “World Car Design of the Year” and “World Green Car” at the same time.

On the occasion of today’s eligibility announcement, Autoneum CEO Martin Hirzel said: “Once again, the contenders are testimony to our innovation leadership. The World Car Awards also confirm our forward-looking approach: Nominated e-models feature Autoneum components as well. Welcoming our industry’s transformation early on, we today supply environmentally sustainable, lightweight components for most electric models available worldwide.”

Gerry Malloy, President of the World Car Awards Association, added: “As a market leader, Autoneum is the ideal partner for us. Our shared commitment to innovation was a decisive factor in forming a partnership back in 2014. Nowadays, this is a crucial aspect for manufacturers and suppliers who wish to remain successful in times of industrial and technological change.”

The World Car Awards, which have been presented annually since 2004, are the world’s leading nd most widely recognized automotive industry awards. A jury comprising of more than 80 international automotive journalists selects winners in five categories. The winners of the 2020 World Car Awards will be announced in April next year at the New York Motor Show.

In a strongly declining market, Autoneum increased revenue in local currencies by 1.9% in the first six months of 2019 thanks to numerous model ramp-ups. At CHF 1 156.1 million, revenue in Swiss francs reached the previous year’s level (CHF 1 159.4 million). All four Business Groups outperformed the market. The turnaround program in North America is showing progress, but the persisting operational inefficiencies at two US plants continue to impact the profitability of the entire Group, as already communicated. Accordingly, EBIT fell to CHF 16.4 million in the first semester, while the anticipated negative net result totaled CHF –6.0 million.

The weak global macroeconomic environment, ongoing trade disputes and the resulting uncertainty among car manufacturers and consumers led to a further sharp decline in global light vehicle production in the first half of 2019. In this difficult market environment, Autoneum was able to increase its revenue by 1.9% in local currencies in the first six months compared to the prior-year period, particularly thanks to numerous model ramp-ups. At CHF 1 156.1 million, revenue in Swiss francs reached the prior-year’s level (CHF 1 159.4 million). While the number of vehicles produced in all regions declined, Business Groups (BG) North America, Asia and SAMEA (South America, Middle East and Africa) grew and outperformed the respective market developments, two of them significantly. Only at Business Group Europe did the sharp drop in production volumes among vehicle manufacturers result in fewer call-offs and lower year-on-year revenue.