Investment thesis

Leading ahead to grow together

1

Robust parental ecosystem

Schaeffler AG’s global reach, technology-led products and quality-focused approach have made us a market leader in all three business segments. Over the past 75 years, it has progressed swiftly on the path of growth and all-round value creation.

Among top 3

Players globally across most segments

1,784*

Registered patents

* Patent applications concern first filings in Germany. The DPMA Chassis and Transmission adapted the counting method in 2020, which is why the 2020 value differs from that of the Sustainability Report 2020.

2

Preferred partner

Our customer-centric approach, strong brand salience and robust distribution network have made us a preferred supplier in industrial and automotive segments. Our diversified range of quality, innovative products is developed on the basis of customer insights and requirements. Moreover, our quick turnaround gives us an edge over our peers.

Among top 3

Suppliers for most leading OEMs in India

3

Resilient value creation

Our well-balanced financial strategy and strong governance practices enable us to grow aggressively, without taking undue risks.

Zero Debt

13.9%

Return on assets

4

Progressively diverse portfolio

Our diversified and complementing products and services help us provide our customers a complete range of solutions. Our innovative offerings enable us to stay relevant and provide customers with unmatched reliability, efficiency, and technology.

Wide-ranging ECT* and aftermarket repair solutions

40,000+

Catalogue products under industrial segments

* Engine, * Patent applications concern first filings in Germany. The DPMA Chassis and Transmission

5

Innovation at the core

Innovation is at the core of our operations and business strategy. Our technological advancements and product innovations are in line with customer requirements. We have been making substantial investments in our local R&D centres, in tandem with our operational strategy. Our India‑based R&D centres have also been increasingly making significant contribution to our global technology team.

` 3,432 million

Invested in R&D over last 5 years

157

Patent application originating from India over last 5 years

6

Strategies to drive growth

Our well-defined strategies encompass all potential opportunities across our businesses and aim to optimise the strengths of our business model. We are working to achieve operational leverage by implementing our strategic goals. These primarily include a continued emphasis on R&D, localisation and technology advancements.

47.8%

Revenue growth

5.1%

Increase in EBIT margin

3.6%

Increase in PAT margin