Gestamp Automocion S.a. · BME:GEST
Gestamp Automocion — Q1 2019 Earnings Presentation
22 slides from Gestamp Automocion's earnings presentation, May 6, 2019
Slide 1: Presentation of Q1 2019 Results
Presentation of Q1 2019 Results May 6th, 2019 © Gestamp 2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for use at this presentation of our results as of and for the quarter ended March 31, 2019. By attending the conference call meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following li
Slide 3: Agenda
Agenda Key Highlights for Q1 2019 Financial Overview Closing Remarks © Gestamp 2019 3
Slide 4: Key Highlights for Q1 2019
Key Highlights for Q1 2019 • Revenues during Q1 2019 have performed well with an increase of 5.4% (6.8% at constant FX) driven by the positive impact from new projects that have started operations, resulting in an outperformance of the auto production market which has remained challenging • In terms
Slide 5: Gestamp's Financial Performance in Q1 2019
Gestamp’s Financial Performance in Q1 2019 (In €m) Q1 2018 Q1 2019 Total Revenue 2,058 2,170 EBITDA 231 249 EBITDA margin (%) 11.2% 11.5% EBIT 129 110 EBIT margin (%) 6.3% 5.1% Net Income 63 41 Net debt 2,100 2,379 Operating Leases (IFRS 16) Not applicable 408 Q1 2019 Revenue increased by 6.8% at co
Slide 6: Global Auto Market Update
Global Auto Market Update • The automotive market environment has remained challenging and the first quarter of the year experienced a 5.8%(1) decline in global light vehicle production volumes • All regions in which Gestamp is present saw volume decreases during Q1 with Western Europe (-6.6%)(1) an
Slide 7: Automotive Growth Q1 2019 vs. Q1 2018
Automotive Growth Q1 2019 vs. Q1 2018 Gestamp Revenue Growth at Constant FX vs. Market Production Growth in Gestamp’s Footprint Eastern Europe 25.0% NAFTA Western Europe 29.8% -0.8% Market Gestamp -6.6% -6.6% -1.9% Market Gestamp Asia Market Gestamp 0.5% Mercosur -7.7% 30.3% Market Gestamp Total in
Slide 8: Update on Gestamp's Recent Developments
Update on Gestamp’s Recent Developments Strengthening Presence A Twofold Approach Increasing Footprint – with Local Chinese OEMs to the EV Market Plant Openings in 2019 New Product: Battery Box Lightweight Safety • Signed two MoUs with local Chinese • Enhanced lightweight and safety • Inauguration o
Slide 9: Financial Performance
Financial Performance EBITDA (1) Net Income Considerations (In €m) (In €m) + €17m • EBITDA of €249m, a 7.5% increase - €22m or 9.1% at constant FX, including €249m the impact from IFRS 16 €231m - €6m €225m €63m • Net Income reached €41m, Excl. IFRS 16 impacted by - €21m €42m Excl. IFRS 16 €41m ‒ Inc
Slide 10: Divergence in Growth, Investments and Ramp-ups in Q1 2019
Divergence in Growth, Investments and Ramp-ups in Q1 2019 • Different business mix vs. Q1 2018 which has a temporary negative impact on EBITDA and EBIT profitability (excl. IFRS 16) • Growth and profitability driven by underlying market dynamics as well as ramp-up of recently deployed growth capex I
Slide 11: Agenda
Agenda Key Highlights for Q1 2019 Financial Overview Closing Remarks © Gestamp 2019 11
Slide 12: Revenue and EBITDA Summary Overview
Revenue and EBITDA Summary Overview Considerations (In €m) • Revenue increase of 5.4% or 6.8% at constant FX, reaching €2,170m − Solid growth in NAFTA, Eastern Europe and 2,058 2,170 Mercosur Revenue − Continued FX headwinds mainly in Turkey and Argentina − Negative market performance in Asia partia
Slide 13: Western Europe Financial Overview
Western Europe Financial Overview Considerations (In €m) • Revenue decrease of 6.5%, reaching €997m − Lower production levels especially in Germany, 1,067 and lower volumes in the UK mainly due to 997 Brexit uncertainty Revenue − Slower ramp-up of some projects and customer stoppages leading to lowe
Slide 14: Eastern Europe Financial Overview
Eastern Europe Financial Overview Considerations (In €m) • Revenue growth of 13.3% or 25.0% at constant FX reaching €322m − Strong performance in almost all countries in the 322 region, partially offset by FX headwinds (mainly Revenue 285 in Turkey) − Solid growth coming from ramp-ups of projects Q1
Slide 15: NAFTA Financial Overview
NAFTA Financial Overview Considerations (In €m) • Revenue growth of 39.3%, reaching €460m − Growth in both the US and Mexico as a result 460 of project ramp-ups Revenue − Strong above-market growth in both countries 330 as evolution is linked to new projects Q1 2018 Q1 2019 Like for like growth: 29.
Slide 16: Mercosur Financial Overview
Mercosur Financial Overview Considerations (In €m) • Revenue growth of 6.5%, reaching €139m − Strong growth in Brazil partially offset by volume reduction in Argentina 139 Revenue 131 − High FX impact Note: Argentina hyperinflation IFRS adjustment of -€0.4m for Q1 2019 Q1 2018 Q1 2019 Like for like
Slide 17: Asia Financial Overview
Asia Financial Overview Considerations (In €m) • Revenue growth of 2.0%, reaching €251m − Weaker market dynamics especially in China 251 with double digit declines as well as volume 246 Revenue declines in India − Chinese market expected to recover during the upcoming quarters − JV with BHAP already
Slide 18: Capital Expenditure Overview Q1 2019
Capital Expenditure Overview Q1 2019 Capex Breakdown Considerations (In €m) Capex as % Capex as % • Gestamp has continued to make investments 13.5% 9.2% of revenue of revenue to support high-quality projects expected to drive profitable future growth 278 Intangible 23 1.1% • Capex in line with guida
Slide 19: Net Financial Debt Position
Net Financial Debt Position Net Financial Debt (x) / EBITDA Considerations €2,233m €2,379m €2,787m • Leverage increase of 0.2x is in line with historical Q1 seasonality 2.66 2.49 • Net debt increase of €145m during Q1 2.32 − €38m impact from interim dividend paid during the quarter Q1 Seasonality (e
Slide 20: Agenda
Agenda Key Highlights for Q1 2019 Financial Overview Closing Remarks © Gestamp 2019 20
Slide 21: Closing Remarks
Closing Remarks • Good revenue growth driven by ramp-up of new projects outperforming the auto production market, which has remained challenging • Group profitability expected to grow in H2 due to better expected volumes and increasing maturity of the new projects • OEMs are looking for new developm
Slide 22: Working for a Safer and Lighter Car
Working for a Safer and Lighter Car www.gestamp.com Investor relations Phone: +34 91 275 28 72 Email: investorrelations@gestamp.com Web: www.gestamp.com © Gestamp 2019 © Gestamp 2019