WABCO Holdings Inc. (NYSE:WBC) Q2 2020 Earnings Conference Call - Final Transcript

Aug 07, 2020 • 10:00 am ET


WABCO Holdings Inc. (NYSE:WBC) Q2 2020 Earnings Conference Call - Final Transcript


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Dear ladies and gentlemen, welcome to the Investor Relations Conference Call of ZF. [Operator Instructions]. After the presentation, there will be an opportunity to ask questions. [Operator Instructions].

May I now hand you over to Charbel Chamoun, who will lead you through this conference. Please go ahead.

Charbel Chamoun

Ladies and gentlemen, welcome to the Investors and Analyst Call of the ZF Friedrichshafen AG. Today, we will present and explain our half-year figures 2020. With us is our CFO, Dr. Konstantin Sauer and Ulf Loleit, Head of Corporate Finance.

During the next 30 minutes Konstantin and Wolf will give you an update on the recent events and an overview of the first six months of 2020. Furthermore, we will provide you with details of the financial results. Afterwards, we will open up for questions.

And with that, I'm pleased to hand over to Dr. Konstantin Sauer.

Dr. Konstantin Sauer

Yes.Thank you, Charbel. Ladies and gentlemen, I also would like to welcome you to our conference call. The corona pandemic has had a profound impact on the lives of most people on the planet, almost overnight and in a way that none of us could have imagined. More than half of mankind is affected by restrictions in everyday life and is feeling the economic consequences.

Significant parts of the global economy have suffered massive slumps. Many in new forms of cooperation and social life, like remote working or home schooling are changing our habits and patterns of behavior established over decades, and also putting them to the test. In some cases, such as business travel or trade fairs, these changes will be permanent, if there are -- there has already been developments triggered by [Indecipherable]. And the corona crises is also significantly accelerating the changes that have already begun in the entire automotive industry. Especially in Europe, the electrification of the driveline has received a new imperious and will now happen even faster than previously assumed.

We are experiencing a radical shift towards software and central data processing. Several car manufacturers and suppliers are strongly building up their software development capacities. Before we turn to the figures in detail and how the corona pandemic has affected them, I would like to go into a few events of the first half of 2020 that is very important for us, for ZF.

With our strategy of next generation mobility, we have defined the long-term picture and defined our goal. This puts us on the right track in the core areas of transformation, the order situation has developed well despite, obviously, the unprecedented conditions in the first half of the year. We were able to win a number of key orders in the areas of e-mobility, advanced driver assistance systems, as well as the sensors and actuators required for them.

Software solutions are playing an increasingly important role in all areas. Order intake for bus transmissions and electric bus drives as well as in the aftermarket is also showing positive trend. ZF's Wind Power division is also benefiting from strong