PRESS RELEASE: HELLA GmbH & Co. KGaA: Thanks to a slight market recovery and strict cost discipline, HELLA sees good business development over the first half of the year

01/14/2021 | 01:02am
Rolf Breidenbach
DGAP-News: HELLA GmbH & Co. KGaA / Key word(s): Half Year Results/Half Year Results 
HELLA GmbH & Co. KGaA: Thanks to a slight market recovery and strict cost discipline, HELLA sees good business 
development over the first half of the year 
2021-01-14 / 07:00 
The issuer is solely responsible for the content of this announcement. 
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Thanks to a slight market recovery and strict cost discipline, HELLA sees good business development over the first half 
of the year 
- Currency and portfolio-adjusted consolidated sales decrease by 2.5 percent in the first half of fiscal year 2020/2021 
to EUR 3.2 billion (second quarter: +4.7 percent) 
- Adjusted earnings before interest and taxes increase to EUR 269 million; adjusted EBIT margin improves to 8.7 percent 
(second quarter: 12.1 percent) 
- Reported EBIT is at EUR 94 million due to provisions relating to the programme aimed at increasing competitiveness over 
the long term 
- Automotive segment with strong business development in the second quarter; Aftermarket sees significantly improved 
profitability; Special Applications' sales at prior-year level 
- Guidance for the full fiscal year 2020/2021 has already been raised in December despite continuing market 
uncertainties 
Lippstadt, 14 January 2021. International automotive supplier HELLA today presented its results for the first six 
months of the current fiscal year 2020/2021 (1 June to 30 November 2020). The key performance indicators reveal good 
business development overall and confirm the provisional key data published on 7 December 2020. In a market environment 
still in decline, currency and portfolio-adjusted consolidated sales decreased only moderately by 2.5 percent to EUR 3.2 
billion (prior year: EUR 3.2 billion). This development is primarily attributable to a strong second quarter of the 
fiscal year. Following a slight market recovery, adjusted consolidated sales increased by 4.7 percent over this period 
in comparison to the prior year. 
Due to the better sales development and the ongoing strict cost discipline, the adjusted earnings before interest and 
taxes (adjusted EBIT) rose to EUR 269 million in the first six months (prior year: EUR 253 million). The adjusted EBIT 
margin is thus 8.7 percent (prior year: 7.8 percent). In terms of earnings, the second quarter was particularly strong 
with a margin of 12.1 percent (prior year: 8.3 percent). Against the backdrop of the provisions of EUR 169 million 
recognised in the first quarter for the programme aimed at increasing competitiveness over the long term, the reported 
EBIT stood at EUR 94 million in the half of the fiscal year (prior year: EUR 230 million), which corresponds to a reported 
EBIT margin of 3.0 percent (prior year: 7.0 percent). In the selective second quarter, the reported EBIT margin was 
11.9 percent (previous year: 6.8 percent). 
"Even if the conditions for business remain challenging, not least due to the Covid-19 pandemic, the market environment 
has brightened somewhat over the last few months. This has provided us with additional tailwind," said HELLA CEO Dr. 
Rolf Breidenbach. "The good development of our business underscores once again that we have set the right course for 
the future. We are currently benefiting not only from our timely and consistent cost management measures but also from 
our strategic positioning in line with the major market trends such as electromobility, autonomous driving and digital 
light." 
Automotive segment with strong business development in the second quarter 
In the face of the decline in global light vehicle production as a consequence of the coronavirus pandemic, the 
Automotive segment's sales fell by 4.3 percent to EUR 2.7 billion in the first half of the fiscal year (prior year: EUR 2.8 
billion). In the wake of the slight market recovery towards the end of the year, segment sales rose above the 
prior-year level again in the second quarter. Thanks to stringent cost management, the Automotive segment's earnings 
before interest and taxes (EBIT) increased to EUR 218 million in the first six months (prior year: EUR 211 million). The 
EBIT margin therefore stands at 8.1 percent (prior year: 7.4 percent). 
Aftermarket sees significantly improved profitability 
The sales of the Aftermarket segment dropped by 3.1 percent to EUR 241 million in the first half of the fiscal year 
(prior year: EUR 249 million). This development resulted in particular from weaker business in the independent 
aftermarket due to the coronavirus. A market recovery also started to emerge here in the second quarter, however. 
Furthermore, there were positive developments in the business with workshop equipment as a result of rising investing 
activities on the part of independent garages. Product mix effects and successful cost management have led to a 
significant improvement in the segment's profitability in the half-year period. For instance, the EBIT rose to EUR 29 
million (prior year: EUR 25 million), which corresponds to an EBIT margin of 11.9 percent (prior year: 10.0 percent). 
Special Applications' sales at prior-year level 
At EUR 167 million, sales in the Special Applications segment over the first half of the year stood at just about the 
prior-year level (prior year: EUR 168 million). While the business with agricultural machinery continued to record good 
sales development, other customer groups were confronted with ongoing market weakness in connection with the Covid-19 
pandemic. Due to lower utilisation overall, product mix effects and higher development costs, this segment's EBIT 
totalled EUR 19 million in the first six months (prior year: EUR 20 million). The EBIT margin is therefore 11.3 percent 
(prior year: 11.9 percent). 
Guidance for the full fiscal year 2020/2021 has already been raised in December despite continuing market uncertainties 
In view of the business performance to date, which has exceeded the expectations made at the beginning of the fiscal 
year, and the current industry outlook, HELLA had already raised the Company outlook for the current fiscal year 2020/ 
2021 (1 June 2020 to 31 May 2021) on 7 December 2020. The Company is now anticipating currency and portfolio-adjusted 
sales in the range from around EUR 6.1 billion to EUR 6.6 billion (previously: EUR 5.6 billion to EUR 6.1 billion) and an 
adjusted EBIT margin in the range from around 6.0 percent to 8.0 percent (previously: 4.0 percent to 6.0 percent). The 
income totalling around EUR 100 million (before tax) that is expected from the sale of the camera software business to 
Volkswagen's Car.Software Org initiated in September should be added to this figure. The Company's outlook is based on 
the assumption that there will be no material impact on HELLA's business as a result of possible plant closures due to 
prolonged Covid-19 lockdowns. Furthermore, the risks from potential bottlenecks in the global supply chains have 
increased additionally, especially with regard to the availability of electronic components. 
"While we are looking to the future with a little more optimism for now, this should not distract from the great 
uncertainty and challenges still prevailing on the markets," emphasises HELLA's CEO, Dr. Rolf Breidenbach. "For 
instance, the full impact of the coronavirus pandemic is far from foreseeable. We are also increasingly identifying 
risks arising from potential bottlenecks in the global supply chains for materials. In addition, competitive and cost 
pressure is continuing to rise in the industry. It is all the more important for us to consistently pursue the 
programme aimed at increasing competitiveness over the long term that has already been launched and to use it as a 
basis for securing our position as one of the world's leading automotive suppliers far into the future." 
 
Selected key financial figures in EUR millions or as a percentage of sales for the first six months (1 June to 30 
November): 
                                                            Fiscal year Fiscal year Change 
                                                             2020/2021   2019/2020 
Sales                                                          3,158       3,239    -2.5% 
currency and portfolio-adjusted 
Sales                                                          3,100       3,313    -6.4% 
reported 
Adjusted earnings before interest and taxes (adjusted EBIT)     269         253     +6.2% 
Earnings before interest and taxes (EBIT)                       94          230     -59.3% 
Adjusted EBIT margin                                           8.7%        7.8%     +0.9pp 
EBIT margin                                                    3.0%        7.0%     -3.9pp 

Where sums and percentages have been rounded, differences may arise as a result of commercial rounding.

The financial report on the first half of fiscal year 2020/2021 can now be downloaded from the website of HELLA GmbH & Co. KGaA.

Please note: This text and corresponding photo material can also be found in our press database at: www.hella.com/press

HELLA GmbH & Co. KGaA, Lippstadt: HELLA is a listed, global, family-owned company with more than 125 locations in around 35 countries. With sales of EUR 5.8 billion in fiscal year 2019/2020 and 36,000 employees, HELLA is one of the leading automotive suppliers. Specialising in innovative lighting systems and vehicle electronics, HELLA has been an important partner for the automotive industry and the aftermarket for more than one hundred years. Furthermore, in its Special Applications segment, HELLA develops, manufactures and sells lighting and electronic products for specialist vehicles. For further information, please contact: Dr. Markus Richter Company spokesman HELLA GmbH & Co. KGaA Rixbecker Street 75 59552 Lippstadt Germany Phone: +49 (0)2941 38-7545 Fax: +49 (0)2941 38-477545 Markus.Richter@hella.com www.hella.com -----------------------------------------------------------------------------------------------------------------------

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