Gestamp Automocion S.a. · BME:GEST
Gestamp Automocion — Investor Day (June 2023)
112 slides from Gestamp Automocion's investor day presentation, Jun 20, 2023
Slide 1: Francisco J. Riberas, Executive Chairman
2022-27 Francisco J. Riberas Executive chairman 1
Slide 2: Disclaimer
disclaimer This presentation has been prepared solely for use during the presentation of our Capital Markets Day on June 20th, 2023. By attending the event where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. This presentation is
Slide 3: The Partner Supplier
25 years of Success… The Partner Supplier … have led us to become 3
Slide 4: Gestamp Leading Tier Supplier at a glance
Gestamp Leading Tier 1 Supplier at a glance BIW Chassis Mechanisms 25 years of history have led us to be an Presence in 24 Countries industry leader • 115 Plants(1) & 13 R&D Centers >42k Employees Becoming a listed company in 2017 1. Includes 5 under construction 4
Slide 5: How we have made it
How we have made it A clear and defined Client Technology & Oriented Innovation strategy… Anticipating Trusted Partner Client Needs Operational …focus on execution and Internationalization excellence meeting our commitments Growing where People as the our Client Key to Success needed us 5
Slide 6: Since listing, the industry has witnessed unprecedented times
Since listing, the industry has witnessed unprecedented times M a r k e t v o l u m e s (1) s t i l l 1 3 % High inflation putting Unprecedented rise in below the peak in 2017 p r e s s u r e (2) r a w m a t e r i a l s p r i c e s (3) -13.4% 12,0% Eurozone 1500 MEPS Germany Hot United States Rol le
Slide 7: Record results since listing
Record results since listing FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Revenues (€m) 8,202 4.2% 8,548 6.1% 9,065 -17.8% 7,456 8.5% 8,093 32.5% 10,726 EBITDA(1) (€m) 890 7.9% 961 11.6% 1,072 -29.3% 757(2) 31.7% 998 21.2% 1,210 Net Profit(1) (€m) 240 7.5% 258 -17.6% 212 -133.5% -71(2) n.s. 155 6
Slide 8: How have we done it? Boosting our growth profile
How have we done it? Boosting our growth profile… F O C U S O N Geographic & client Strong & differentiated Technology & Innovation diversification product mix embracing EV Transition FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Market Volumes (1) Mveh 85.8 -0.9% 85.0 -5.1% 80.7 -15.6% 68.1 3.1%
Slide 9: Working to transform our financial profile
…BUT working thoroughly to transform our financial profile Cost control & flexibility to Strengthening our reduce break-even point balance sheet profile EBITDA Margin(1) (%) FCF Generation(3) (€m) Leverage evolution (€m) 2019 - 2022 Evolution (p.p.) 2020 - 2022 FCF Evolution 2019 – 2022 2.5x 1.8x ∑
Slide 10: Where is the world heading over the next years?
Where is the world heading over the next years? 10
Slide 11: Individual Mobility: a reality to all of us
Individual Mobility: a Global light vehicle parc by reality to all of us r e g i o n ( r e g i s t e r e d v e h i c l e s ) (1) (Mveh) % Total 1,573 1,535 1,456 1,370 21% 335 22% 337 v Rising world 331 23% 24% 324 population particularly 91 6% 96 6% 98 6% in developing countries 6% 258 261 17% 262
Slide 12: Mobility needs to be sustainable
But we need to make sure that mobility is SUSTAINABLE The industry challenge is to Mobility brings many benefits for its users… meet mobility needs but …but it is not without a cost to society, mobility is also ensuring a sustainable also responsible for 8%(1) of CO2 emissions future for the next ge
Slide 13: This is the auto industry revolution
This is the auto industry revolution To tackle on the sustainability challenge, the industry is working hard to transform Short-term Long-term Zero emissions Reduced emissions and use of recycled on mobility materials to manufacture a car 13
Slide 14: Short term is about the world moving into electric
ST LT Short term is about the world moving into electric Increasing government and OEM climate action initiatives driving the EV transition Key legislation supporting EV Major vehicle manufacturers have set ambitious adoption across geographies targets for electrification of their fleets by 2030… 50
Slide 15: The EV revolution is going mass market
ST LT The EV revolution is going mass market over the coming years EV volumes are expected to grow at a . . .with S&P Global Mobility volumes ~33% CAGR from 2021 to 2027. . . historically revised upwards EV volume (Mveh)(1) EV volume (Mveh)(1) 41% EV % EV penetration penetration expected 26.8 CAGR:
Slide 16: The next industry challenge: the net zero car
ST LT AND MOVING A STEP BEYOND IS THE NEXT INDUSTRY CHALLENGE: THE NET ZERO CAR ICE EV Net Zero Car A car with zero CO2 means eliminating all emissions linked to the supply chain: from mining, to material refining and production as well as all emissions associated with transportation… Only through t
Slide 17: Bringing circularity to the sector
ST LT Bringing circularity to the sector: the next key step Setting a circular-economy strategy based on the principle of re-using and re-cycling to boost the road to neutrality In particular, circularity around steel, is one of the key challenges in the automotive sector as this is a high emissions
Slide 18: How do we face the 2023-2027 period?
How do we face the 2023 – 2027 period? As the world dives into a new mobility revolution, Gestamp will continue being the Partner Supplier to its customers and walk along with society towards a more sustainable mobility 18
Slide 19: Our value proposition
OUR VALUE PROPOSITION Creating value as the industry transitions towards a sustainable mobility Operational Balanced Strategic Financial Excellence / ESG Positioning Strength Capabilities Focus A longstanding strategy to reinforce our Partner Supplier positioning in this industry revolution 19
Slide 20: Our focus over the next years: main pillars
OUR FOCUS OVER THE NEXT YEARS Growth Ambition Operational Excellence MAIN Trusted Partner Supplier Profitable Growth pillars Technology & Innovation to be Differential Disciplined Balance Sheet Profile Pioneering the Circular Economy: Gescrap 20
Slide 21: Growth Ambition
MAIN pillars Growth Ambition Driven by solid levers i/ Volumes production ii/ Diversified footprint iii/ Outsourcing level iv/ EV penetration 21
Slide 22: Volumes on the recovery path
Volumes ON THE recovery PATH Global Light Vehicle (LV) production expected evolution 2016 – 2027 (Mveh) +0.1% CAGR% Aging Fleet +2.7% CAGR% 2022 LV (years) 93.1 95.1 94.2 92.4 93.9 89.0 88.1 90.8 85.7 12.0 y 82.3 European Union(1) 74.6 77.2 USA(2) 13.1 y China(3) 5.2 y 2016A 2017A 2018A 2019A 2020A
Slide 23: Mature markets to continue growing through 2027
MATURE MARKETS TO CONTINUE GROWING THROUGH 2027 EUROPE - LV production expected evolution 2022 – 2027 (Mveh) 17.6 17.5 17.5 17.6 Our approach 15.8 17.1 9.9 10.9 11.2 11.2 11.1 11.1 ü Target global EV platforms towards the electrification 5.9 6.1 6.3 6.2 6.4 6.5 ü Securing ICE replacements and lifeti
Slide 24: China: the EV revolution
China the ev revolution CHINA - LV production expected evolution 2022 – 2027 (Mveh) China EV The market 29.0 30.3 31.2 ü Booming EV market in China 26.2 26.1 27.6 faster than most forecasts 16.6 18.3 14.0 ü New EV players gaining scale 8.5 11.4 7.1 and market share quickly 2022A 2023E 2024E 2025E 20
Slide 25: India: medium run opportunity
INDIA: MEDIUM RUN Opportunity 2022 population 2022 LV production (M p e o p l e ) (1) v o l u m e s ( Mv e h) (2) The market ü India is one of the countries with the lowest car penetration rate per 1,000 inhabitants almost 7,975 82.3 doubling in the medium term ü Production boosted by increasing inc
Slide 26: Rising outsourcing rates
Rising Outsourcing rates €33bn market potential from outsourcing 2022 - 2027 Gestamp’s total AGR 169 addressable +5% C market (€bn) Gestamp’s total addressable 135 60 market to see an 8% CAGR (36%) 2022-2027E due to: OEM Captive 59 Market (44%) ü Overall market dynamics… 109 ü … but mainly due to CA
Slide 27: EV addressable market to grow by 32% CAGR
EV addressable market to grow by 32% CAGR E V (1) c o m p o n e n t s c o n t r i b u t e t o t h e m o s t s i g n i f i c a n t uplift in market size €bn % of addressable 17% 48% market 52.3 CAGR Drivers for Gestamp growth 10.3 ü Expanding EV penetration 31% ü Higher outsourcing as OEMs prefer to
Slide 28: Target EV by 2027
Target Ev by 2027 Well prepared to tackle the EV opportunity Gestamp EV … reaching >50% related sales(1) 5x revenues(1) by since 2022… 2027 28 Note: Guidance provided on a constant currency basis, assuming current steel prices and based on current market forecasts for volume projections. EV includes
Slide 29: Trusted Partner Supplier
MAIN pillars Trusted Partner Supplier 29
Slide 30: Trusted partner to our traditional clients
Trusted partner to our traditional clients... Diversified client base as we are working with all traditional OEMs... Working with major OEMs within c.1,200 MODELS across all markets CLIENT ORIENTED STRATEGY TRUSTED RELATIONSHIP TRANSITIONING TO EV Focused on providing solutions for Based on providin
Slide 31: Continuing to gain share with EV newcomers
… and continuing to gain share with ev new comers 96.7% 93.8% How can we help 88.1 82.9 ~2x new EV comers? 3.3% 6.2% Providing Industrial Capacity Strong track record of delivering on time and with the required quality features 2.8 5.8 2023E 2027E Cutting Edge Proprietary Technologies Product offeri
Slide 32: Technology & Innovation to be Differential
MAIN pillars Technology & Innovation to be Differential 32
Slide 33: Technology and innovation: strategic pillar
Technology AND INNOVATION: strategic pillar Innovation and anticipation, a key competitive advantage 1 Prototypes & Testing Research 6 Full 2 Virtual engineering Validation Innovation capabilities 5 CO2 Life 3 Cycle Product & Process 4 Global network Co-Developments: key pillar R&D Luleå Co-Developm
Slide 34: Innovation has led us to be leaders in electrification
Innovation has led us to be leaders in electrification Working for our clients over time has enabled us to anticipate their needs and create a differentiated EV product offering Finding the 1 Creation of new parts for EV architecture New proprietary solutions 1/ Safety correct cost / 2/ Weight perfo
Slide 35: Operational Excellence
MAIN pillars Operational Excellence 35
Slide 36: Operational Excellence: a key lever for a new reality
OPERATIONAL Excellence: A KEY LEVER FOR A NEW REALITY One of our strategic pillars ….we need to raise the bar for as we gained scale… a new reality 1/ Client trustworthiness Volatile market environment Strong track record Production volumes & Raw materials 2/ Well defined value stream Transition to
Slide 37: A defined strategy going forward
A DEFINED STRATEGY GOING FORWArD NEW TEAM STRUCTURE CLEAR LEVERS TO PUSH FORWARD Chief Operational Excellence Officer INDUSTRY 4.0 PEOPLE Efficiency Organization Production Industry 4.0 Flexibility Transformation Quality DATA Trustworthy 37
Slide 38: Profitable Growth
MAIN pillars Profitable Growth 38
Slide 39: A clear roadmap to improve our profitability
A clear roadmap to improve our profitability EBITDA Margin (ex. raw materials) Ø Against a backdrop of: • Declining volumes and volatility, maximizing 11.8% 12.7% efficiency in our operations • High inflationary pressure (1) Ø We have redefined our growth strategy to focus on 2019 2022 improved prof
Slide 40: Profitable growth is our priority for the future
Profitable growth is our priority for the future MAIN Core business KPI LEVERS ROCE(1) 1 Selective capex strategy (%) Differentiated 2 value added products 17.5 Operational improvements +350 bps 3 with focus on execution 14.0 4 NAFTA is a focus 2022 2027 1. ROCE defined as: EBIT / (Capital Employed
Slide 41: Gestamp in NAFTA since 2001
GESTAMP IN NAFTA SINCE 2001 R&D Auburn Hills Mason Chelsea Lapeer 2001 2009 - 2012 2016 2019 – 2020 CHATANOOGA I + South CHATANOOGA II + Edscha S.L.Potosi Edscha Michigan Aguascalientes Chelsea + San Luis potosi West Virginia carolina + West virginia Chattanooga I & II South Carolina Alabama 2004 Ed
Slide 42: Our history in NAFTA: lessons learned
OUR HISTORY IN NAFTA: LESSON LEARNED Prior to 2015 2020 to 2021 2016 to 2018 2018 to 2019 2022 Well established Unprecedented Expansion phase Restructuring phase New reality business difficult times Good profitability levels Double down on New management COVID-19 affecting High inflation affecting g
Slide 43: NAFTA: improvement as target
Nafta: improvement as target Executing an in-depth plan to turn around the operations in the region New locally driven leadership team 1 and talent strategy Target of achieving labour stability Our 2 Embracing the EV opportunity: commitment a competitive advantage Double Strong Government support pu
Slide 44: Disciplined capex approach
Disciplined capex approach Clear CAPEX priorities to boost organic growth Invest in technology and v TECHNOLOGICAL innovation as key strategic lever ü Selective capex strategy ü Defined IRR target Strong pipeline of growth v GROWTH opportunities with EV being the main priority ü Strong focus on exec
Slide 45: Strategic Projects Office
STRATEGIC PROJECTs OFFICE Technology Innovation KEY QUOTATIONS Commercial • New proprietary Operations technologies & products • Sizing Purchasing Office Ensuring Finance competitiveness, quality and financial soundness Division 45
Slide 46: Disciplined Balance Sheet Profile
MAIN pillars Disciplined Balance Sheet Profile 46
Slide 47: Disciplined balance sheet approach
Disciplined Balance Sheet approach Net debt to Net Debt (€M) 3.3x LTM EBITDA (x) 2.5x 2.3x 2.3x 2.1x 2.722 1.8x 2.485 2.233 2.266 2.145 Leverage 1.898 1.0-1.5x FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 2023 - 2027 Our Disciplined and selective Focus on Free Cash Flow Approach 1 capex projects
Slide 48: Pioneering the Circular Economy: Gescrap
MAIN pillars Pioneering the Circular Economy: Gescrap 48
Slide 49: Gescrap: growth opportunity for Gestamp
Gescrap: growth opportunity for Gestamp Gestamp has already taken a step forward to push Low CO2 Emission Steel… Carmakers look for ways to increase recycled steel and use their own scrap metal Gescrap has presence in 18 countries with a strong cash generation and a solid financial profile Through G
Slide 50: Gescrap: a leading metal secondary raw material supplier
Gescrap: a leading metal secondary raw material supplier Differentiated positioning, as it is Within its production processes Access to difficult to access clean high-quality & sharing facilities Premium Raw recycled metal products Material Industrial capabilities to manage and transform secondary r
Slide 51: Developing new premium recycled steel
Circularity: Opportunity to cooperate on Developing NEW PREMIUM RECYCLED STEEL New strategy together with steel mills to enhance the “closed loop” recycling process ü Steel mill & Gescrap: Gescrap sells to the steel mill secondary raw material STEEL from Gestamp factories… PRODUCER ü … so that the s
Slide 52: Slide 52
Slide 53: A plan to generate value for our stakeholders
A PLAN TO GENERATE VALUE FOR OUR STAKEHOLDERS Clients + Employees + Shareholders 53
Slide 54: Clients: a client-oriented company
Clients: a client-oriented company Cutting Edge EV proprietary Solutions 1 Defining solutions for our clients in this new industry 2 Global Trustworthy 4 Footprint revolution Partner 3 Differentiated Product Leadership 54
Slide 55: Employees are the cornerstone of our success
Employees are the cornerstone of our success An extraordinary team of highly qualified and vocational professionals drives the success 42,670 of ourstrategy… employees … and operational excellence positioning A diverse group of talented people innovating together to boost a sustainable mobility 55
Slide 56: A defined value proposition for our employees
A DEFINED VALUE PROPOSITION FOR OUR EMPLOYEES Gestamp offers the opportunity to work in a long term project focused on generating solutions that grant a cleaner and safer mobility for society A LONG TERM Work-LIFE + + + STABILITY as we Opportunities as PLAN TO we want to have BALANCE to grant a beli
Slide 57: A journey to generate value for our shareholders
A journey to generate value for our shareholders We deliver Meeting our better Delivering commitments Clear Shareholder 30% Pay-out Remuneration ratio Policy Define Growth Delivering Roadmap disciplined growth Clear Leadership market Strategy positioning Shareholder value creation as the core of our
Slide 58: Management Team
A COMMITED team TO LEAD THE PLAN Executive Chairman & CEO Management Team Division CEOs Chief Chief Chief Chief Chief Chief Human Chief Operational Technology & Chief ESG Commercial Financial Purchasing Excellence Innovation Resources Legal Officer Officer Officer Officer Officer Officer Officer Off
Slide 59: The Partner Supplier
rowth lobal xecution lectrification ustainability Gestamp olid echnology rust the Partner nticipation ncestry supplier obility anagement artnership redictability 59
Slide 60: Ignacio Martín, Chief Technology & Innovation Officer
IGNACIO MARTÍN CHIEF TECHNOLOGY & INNOVATION OFFICER 60
Slide 61: From within: Ernesto Barcelo, Chief ESG Officer
FROM WITHIN Ernesto Barcelo Chief ESG Officer 63
Slide 62: Sector challenges on transition times
SECTOR CHALLENGES on transition times Meeting mobility needs, while ensuring to be sustainable, for our & future generations E Mobility & Materials decarbonization S New Talent scenario & Contribution to Local Communities G New ESG requirements & evolution in the sector’s Value Chain 64 64
Slide 63: Gestamp's ESG journey: 20+ years
Gestamp’s ESG journey: 20+ years of strategic commitment Environmental Policy Joined United Governance considerations Zero Waste ESG Strategic implementation Nations Global to Gestamp´s Initial certification Plan ISO 14001 Compact Public Offering 2003 2008 2017 2021 2023 CAR 2006 2013 2020 2022 Crea
Slide 64: Gestamp is manufacturing sustainability from within
Gestamp is manufacturing sustainability from within ESG STRATEGIC PLAN CO2 Road to neutrality Health and Circularity safety Supply chain Environmental responsible targets management Talent Ethics & good governance Social contribution 66
Slide 65: E + S + G
E + S + G 67
Slide 66: E: CO2 road to neutrality
E CO2 Road to neutrality Circularity Environmental targets 68
Slide 67: Gestamp's contribution to sector challenges
Gestamp’s CONTRIBUTION TO SECTOR CHALLENGES An active role to tackle the sector challenges towards neutrality through a three focus approach The The raw materials The way we and resources we use products we manufacture for manufacturing manufacture 69
Slide 68: Targeting carbon neutrality
TARGETING carbon neutrality. . . Gestamp is working to 2030 2045 2050 reduce GHG(1) emissions in line with the provisions of the Paris Agreement -69% CLIMATE CLIMATE CLIMATE REDUCTION NEUTRAL NEUTRAL NEUTRAL and the requirements of our customers SCOPE SCOPE SCOPE SCOPE 1+2 2 1+2 1+2+3 SBTi(2) valida
Slide 69: Reducing energy and emissions intensity of operations
. . .by Reducing energy and emissions intensity of operations Electrifying production Increasing efficiency Electricity sourcing Long-term efforts to electrify Detailed programmes at Agreements to buy Self-generating gas-based processes plant-level to reduce renewable energy renewable energy use at
Slide 70: The importance of steel recycling: low carbon steel
the importance of STEEL recycling: LOW CARBON STEEL Managing the co-existence of linear and circular economy Steel can be 100% Steel recycling contributes to. . . re-melted to produce material of the same CIRCULAR ECONOMY quality an infinite More efficient and sustainable products amount of times De
Slide 71: Gestamp approach to low carbon steel
GESTAMP APPROACH TO LOW CARBON STEEL Efficient material use Circularity Decarbonized raw materials Increasing the recycled content R&D on weight reduction to save emissions across vehicle life span Acquisition of a relevant stake to Agreements with our key suppliers enter materials value chain and a
Slide 72: S: Health and safety
S Health and safety Talent Social contribution 74
Slide 73: A plan that places people at its core
A plan that places people at its core Creating employment, retaining and attracting the best talent in a safe working environment Tailor-made H&S system Attracting the best Guaranteeing best Working on the prevention of talent for our skills for our occupational health and safety accidents operation
Slide 74: Generating a positive social impact for local communities
Generating a positive social impact for our local communities Adapting to society´s evolving needs Social Action aligned with Business Strategy Generating a positive impact on Gestamp’s Social Action Policy, establishes three priority areas of action society and local communities aligned with the bu
Slide 75: G: Supply chain responsible management
G Supply chain responsible management Ethics & good governance 77
Slide 76: Accelerating growth with a resilient supply chain
ACCELERATING GROWTH WITH A resilient SUPPLY CHAIN From risk management to a partnership to achieve common objectives Supply Chain Risk Management Partnerships Ensuring that ESG risks are well managed Creating strong alliances to achieve ESG goals ESG requirements 360º supplier ESG specifications Col
Slide 77: A leading governance set up
a leading governance set up Strong independent oversight… …with family roots and commitment Long-term strategic focus >2/3 independent directors ü ü on key committees Stable strategic vision… …fostering a sustainable business >50% Strong corporate culture and values independent directors on the boar
Slide 78: Tightly woven ESG governance
Tightly woven esg governance, with ultimate board accountability Strategic Plan Strengthened ESG Department, reporting directly BOARD approval and to the company’s Executive Chairman SUSTAINABILITY transmission of its COMMITTEE progress for the Board’s approval Committee focused on sustainability, h
Slide 79: The ESG Partner Supplier
Gestamp the ESG Partner supplier 81
Slide 80: Patricia Riberas, Chief Operational Excellence Officer
Patricia Riberas Chief operational excellence Officer
Slide 81: We continue to be a leader in a constantly changing industry
We continue to be a leader in a constantly changing industry Gestamp Values Boosted Operational Excellence model MEETING the challenges of our dynamic industry while focusing on our returns on capital employed CLIENTS are the center of the business Stronger Technology and Innovation Operational Exce
Slide 82: Significant manufacturing track record drives standards for the future
Significant manufacturing . . .drives standards track record. . . Since IPO in 2017 for the future 9Greenfields executed 2 Brownfields Only in 2022: INDUSTRY 4.0 100% Global platforms 49 Different OEMs PEOPLE Efficiency 110 Different product >38.000 Unique references types (strategic families) sold
Slide 83: Establishing manufacturing standards of the future
ESTABLISHING Manufacturing Efficiency standards of Flexibility the future 85
Slide 84: Efficient & flexible: continuous improvement mindset
efficient & flexible - CONTINUOUS IMPROVEMENT MINDSET • Performance monitoring through standardized and automated KPIs guiding our continuous improvement mindset (Internal targets illustrative example) CENTRAL • OEE(1): +250 bps (vs 2022) MONITORING • SPS(2): + 2.5% (vs 2022) Shop-floor • Standardiz
Slide 85: Efficient & flexible: continuous improvement mindset
efficient & flexible - CONTINUOUS IMPROVEMENT MINDSET More than 50 KPIs regularly tracked as part of the operations dashboard 87
Slide 86: Efficient & flexible: increased operational cost control
efficient & flexible - INCREASED OPERATIONAL COST CONTROL Energy efficiency Supply chain maintenance • CO2 Energy Efficiency • Packaging optimization • Global organizational platform: i.e. RACKS project structure GESTAMP and GESCRAP: • Standard ways of working 27 Plants to improve results on shop 77
Slide 87: Efficient & flexible: opex & labex adaptability
efficient & flexible - opex & labex adaptability Outstanding operating leveragealready proven during recent crisis (19.5% FY 2020) Adaptable OPEX & LABEX to adjust to all situations of volume fluctuations, i.e.: • Cells with flexible design • Workforce flexibility (21.2%(1) Q1 2023) • Pool of hours
Slide 88: Efficient & flexible: capital optimization: assets
efficient & flexible - capital optimization: assets Capacities optimization Re-use strategy Visualization and simulation of assets’ capacities Solid asset reutilization strategy with strong impact in CAPEX but also reducing launch times Global maintenance strategy Predictive maintenance and continge
Slide 89: Efficient & flexible: capital optimization: capex
efficient & flexible - capital optimization: capex TRADITIONAL Transform small dedicated welding ASSEMBLY FLEXIBILITY cells to flexible cells Flex manufacturing PROVEN CONCEPT (Factory 21) • Load-adjusted CAPEX • CAPEX not dedicated to one single product 1st pilot plant with Flex manufacturing (Spai
Slide 90: © Gestamp 2023
© Gestamp 2023 92
Slide 91: Establishing manufacturing standards: Industry 4.0, People, Data
ESTABLISHING INDUSTRY 4.0 Manufacturing PEOPLE standards of the future DATA 93
Slide 92: Digital: creating an integrated ecosystem
Digital Clear governance model with integrated collaboration and Value maximization through a global community, global reports and strong analytics, developing products to solve business demands functional business / development need Applications and Creating an implementation Public subsidies integ
Slide 93: Digital: I4.0 accelerated growth
Digital - I4.0 accelerated growth PAST (as of 2021) PRESENT & FUTURE ~ 100 IoT projects to connect Production lines >200 IoT production lines already connected by 2024 Real-time & Advanced analytics for PhD , E-coat, Cold, Hydro, Chassis and (2) Specialized analytics Battery Boxes only for PhD(2) ~1
Slide 94: Talent as key enabler of the transformation
talent as key enabler of the transformation ELEVATED HUMAN RESOURCES FUNCTION IMPROVED Employee EXPERIENCE ACROSS Recruiting & Talent ITS life cycle COMPENSATION LEARNING Mobility offboarding Onboarding Assessment UsA BEST PRACTICES GLOBAL TAXONOMY model and • GREAT place GLOBAL to work TALENT certi
Slide 95: Data as key enabler of the transformation
DATA as key enabler of the transformation CUTTING-EDGE DATA STRATEGY Technology Business BUSINESS People and PROCESSES TECHNOLOGY • Business value - • New data governance and • A new state-of-the-art data based methodology management model infrastructure (hypatIA) • Business knowledge • Change manag
Slide 96: © Gestamp 2023
© Gestamp 2023 98
Slide 97: Establishing manufacturing standards: Trustworthy
ESTABLISHING Manufacturing standards of the future Trustworthy 99
Slide 98: Trustworthy: meeting all stakeholders' expectations
Trustworthy - meeting all stakeholders' expectations • Quality Standard Model leveraged in data and analysis • Data protection through risk-prevention technologies (MapVision, Smart Ray) Quality controls • Quality Control Plans digitalization (i.e. Virtual Quality Manager) Tight construction schedul
Slide 99: The Industrial Partner Supplier
Gestamp The INDUSTRIAL Partner supplier 101
Slide 100: Ignacio Mosquera, Chief Financial Officer
Ignacio mosquera Chief financial Officer
Slide 101: We have transformed our financial profile
We have transformed our financial profile We are becoming a reliable financial partner 2017 2022 EBITDA Margin 10.9% 12.7%(1) Free Cash Flow(2) -€182 €255 Ready for next Creating Value Leverage(3) 2.1x 1.8x growth phase for our in EV Shareholders 1. Excluding raw materials impact of €1,206m 2. FCF d
Slide 102: And we deliver on our commitments
And we deliver on our commitments Gestamp at IPO (FY 2016) Strategic objectives Gestamp today (FY 2022) Strategic performance 11.7 p.p. outperformance(1) Continued to Revenue €7.5bn Above market growth and scale vs. market growth Revenue P outperform the market despite unprecedented €10.7bn conditio
Slide 103: Clear financial strategy going forward
Clear financial strategy going forward We deliver Healthy Balance Sheet better Profile Preserving Cash Generation Focus on Profitability Defined Growth Path 105
Slide 104: We aim at beating market growth
We aim at beating market growth as we have done historically Revenue evolution and market outperformance it Mid single dig ance rform Market outpe Positioning EV Market €10.7bn Volume EV related sales(1) 5x since 2022... ...reaching >50% in 2027 2022A 2027E Gestamp is well positioned to benefit from
Slide 105: High visibility of topline growth underpinned by a strong backlog
With high visibility of our topline growth underpinned by a strong backlog 5 y e a r s B a c k l o g (1) ( € B n ) 55.6 36.3 2017 2022 Revenues(2) covered in 5 years 89% 91% 2017 - 2021 2023 - 2027 1. Represents sales of parts that the company expects to record including production and awarded busin
Slide 106: Committed to profitable growth with focus on ROCE
Committed to profitable growth with focus on ROCE Reported EBITDA Margin % growth (2022 – 2027) R O C E (1) % g r o w t h ( 2 0 2 2 – 2 0 2 7 ) bps +150-190 ement prov Margin im NAFTA Operational Improvement + 350 bps 11.3% Volumes Leverage Committed to double digit EBITDA Margin 17.5 2022A 2027E Ef
Slide 107: Disciplined capital allocation policy
Disciplined capital allocation policy ORGANIC GROWTH • Continue to focus on selective profitable and ROCE accretive investment opportunities • ND / EBITDA between 1.0-1.5x by 2027 LEVERAGE • Free Cash Flow(1) between €300- 350M by 2027 BALANCE SHEET • Focus on rating improvement EFFICIENCY • Increas
Slide 108: Gestamp is ready for the future: our targets to 2027
Gestamp is ready for the future Our targets to 2027 Mid Single EV sales 5x +150-190bps 1.0-1.5x +350bps in Digit reaching in the period by 2027 the period >50% Outperformance EBITDA EV Sales(2) Leverage(3) ROCE(4) vs market(1) Margin Note: guidance provided on a constant currency basis, assuming cur
Slide 109: Our value proposition
Our value proposition Accelerate growth Further improve Smart capital allocation and strengthen our cash generation and including attractive leadership accelerate shareholder positioning in EV deleveraging remuneration
Slide 110: The Financial Partner Supplier
Gestamp The FINANCIAL Partner supplier 112
Slide 111: Appendix – alternative performance measures (I)
Appendix – alternative performance measures (I) This results presentation and any related conference call or webcast (including any related question and answer session) (the "Presentation"), in addition to financial information detailed in the Gestamp Group´s financial statements prepared in accorda
Slide 112: Appendix – alternative performance measures (II)
Appendix – alternative performance measures (ii) Ø Capex: Capital Expenditures calculated as sum of additions to other intangible assets and property, plant and equipment Ø EBITDA: Earnings before interests, taxes, depreciation and amortization Ø EBIT: Earnings before interests and taxes Ø FCF: Chan