Overview Key strengths Key risks Leading supplier of several products, such as transmission and engine components and bearings, to car manufacturers and industrial end markets. Reliance on volatile auto production and cyclical demand in industrial end markets depresses profitability in our forecast for 2024-2025. Broad geographic reach: of 2023 sales, 21% were generated in China, 22% in the Americas, 44% in Europe, and the rest in Asia-Pacific. Recurring restructuring costs weigh on margins and constrain free operating cash flow (FOCF); as demonstrated in our forecasts for 2024-2026, while Schaeffler is integrating Vitesco. Resilient aftermarket sales (14% of 2023 revenue) provide some cushion against volatile auto production cycles and are accretive to margins. Investment will remain high as the sector shifts
