Strong margins compared with other auto suppliers and bearings manufacturers. Leading market positions and recognized technological leadership. Favorable long-term growth prospects, supported notably by the drive for lower carbon emissions. Good geographic, product, and end-market diversity. Exposure to the cyclical and highly competitive auto industry and industrial bearings markets. High debt burden at group level, inherited from the acquisition of Germany-based automotive supplier Continental AG. Limited free cash flow generation due to the capital-intensive nature of the business. Long dated maturity profile. Adequate liquidity. The stable outlook on German manufacturing group Schaeffler AG reflects Standard&Poor's Ratings Services' opinion that the group will maintain a strong operating performance in 2015-2016, including an adjusted EBITDA margin of approximately 18%. We
