Stellantis N.v. · EURONEXT:STLAP
Stellantis — Fiat Chrysler Automobiles — Investor Day (June 2018)
21 slides from Stellantis's investor day presentation, Jun 1, 2018
Slide 1: 2018–2022 Business Plan: Financial Overview
• 2018 – 2022 BUSINESS PLAN • FINANCIAL OVERVIEW RICHARD PALMER • CHIEF FINANCIAL OFFICER •
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT • This document and the related presentation contain forward-looking statements. In particular, these forward-looking statements include statements regarding future financial performance and the Company’s expectations as to the achievement of certain targeted metrics, including
Slide 3: FCA Results Excluding Magneti Marelli
FCA RESULTS EXCLUDING MAGNETI MARELLI • FCA RESULTS EXCLUDING MAGNETI MARELLI Spin-off expected to be completed by end of 2018 or early 2019 In April 2018, FCA BoD authorized development of plan to separate the Magneti Marelli business • Plan to distribute shares of separated business to FCA shareho
Slide 4: Industry Outlook
INDUSTRY OUTLOOK • Source: IHS Global Insight, Wards and Group estimates M Units NAFTA • (total vehicle sales including medium/heavy trucks) NAFTA U.S. LATAM Brazil LATAM • (passenger cars and LCVs) INDUSTRY OUTLOOK Global industry expected to remain strong with continued growth in APAC, LATAM and E
Slide 5: Industry Sales Mix
INDUSTRY SALES MIX • INDUSTRY SALES MIX White-space products and key renewals positioned to capitalize on growing consumer preference towards UVs in all regions Source: IHS Global Insight. Excludes medium and heavy trucks, and buses. Figures may not add due to rounding % of total industry EMEA 51% 3
Slide 6: Key Financial Targets (ex. Magneti Marelli)
KEY FINANCIAL TARGETS (ex. Magneti Marelli) • KEY FINANCIAL TARGETS (ex. Magneti Marelli) Targeted growth builds on solid foundation established in prior Plan INDUSTRIAL FREE CASH FLOWS €B, except as otherwise stated % = Adjusted EBIT margin ADJUSTED EBIT AND MARGIN 6.3% 2017 – 2022 CAGR1 17% 6.8% x
Slide 7: Portfolio Renewal
PORTFOLIO RENEWAL • PORTFOLIO RENEWAL By 2022, nearly 80% of global volume generated from white-space or renewed products VOLUME FROM NEW OR RENEWED VEHICLES1 2018 – 2022 CAPEX Portfolio expansion with white-space products • Renewal of key high volume products • More than 75% of capex relates to glo
Slide 8: Group Revenues
GROUP REVENUES • GROUP REVENUES Top line growth from higher volumes and increased mix of Jeep, Alfa Romeo and Maserati products NET REVENUES 2022E 2017 All figures exclude Magneti Marelli business. WHITE-SPACE PRODUCTS AND BEVs Metric ton truck Wagoneer Low B-segment SUV Grand Wagoneer D-segment UV
Slide 9: Cost Savings
COST SAVINGS • Manufacturing efficiencies • Continued focus on World Class Manufacturing • Emphasis on process and quality improvements through digital manufacturing initiatives 2018 – 2022 COST SAVINGS COST SAVINGS Industrial rationalization delivers cost savings of ~€10B over Plan period • ARCHITE
Slide 10: Group Adjusted EBIT Walk
GROUP ADJUSTED EBIT WALK • 2017 Volume Net price Industrial costs SG&A FX & other 2022E 13 – 16 6.6 6.3% 9.0% to 11.0% U.S. FinCo 2022E • incl. U.S. FinCo Mix 6 – 8 15 – 17 ( evenly split) 1 €B % = Adjusted EBIT margin GROUP ADJUSTED EBIT WALK Continued strong profitability growth with double-digit
Slide 11: Segment Performance
SEGMENT PERFORMANCE • SEGMENT PERFORMANCE Group to outpace industry growth worldwide, with double-digit margin targeted by end of Plan in nearly all segments Investments in global brands driving profitability improvement in all regions • Key product renewals in NAFTA and LATAM • Higher JV income fro
Slide 12: NAFTA Industry Downturn Scenario
NAFTA INDUSTRY DOWNTURN SCENARIO • NAFTA SAAR NAFTA INDUSTRY DOWNTURN SCENARIO Multiple levers available to remain profitable NAFTA downturn assumptions • 30% SAAR reduction in 2020 CY to 14.4M units • U.S. SAAR reduced to 12.0M units Cost actions to offset 30% volume loss • Variable labor costs dow
Slide 13: Cash Generation & Capital Allocation
CASH GENERATION & CAPITAL ALLOCATION • CASH GENERATION & CAPITAL ALLOCATION Strong industrial cash flow generation provides new opportunities to further enhance shareholder value Capital allocation priorities • Continue to invest in product, technology and infrastructure • Discretionary pension fund
Slide 14: Capex
CAPEX • Continued cadence of key product renewals • Investments in white-space products to expand portfolio in high-margin segments • Electrification investments facilitate regulatory compliance • Average spending over Plan period at 7% of Net revenues 8.1 7.4 – 7.9 9 CAPEX (including capitalized de
Slide 15: Liquidity and Debt
LIQUIDITY AND DEBT • LIQUIDITY AND DEBT Efficient capital structure achieved through deleveraging, with longer debt maturity profile €B GROSS INDUSTRIAL DEBT MATURITIES As of Mar 31 ‘18 (Cash principal maturities) Maintain strong liquidity of €20B to support business throughout the Plan • Gross indu
Slide 16: Credit Rating Profile
CREDIT RATING PROFILE • CREDIT RATING PROFILE Committed to achieve and maintain investment grade ratings INVESTMENT GRADE CREDIT METRICS Investment grade credit metrics Minimum investment grade level Investment grade zone Commitment to investment grade rating • FCA credit ratings greatly improved si
Slide 17: Key Financial Targets (ex. Magneti Marelli)
KEY FINANCIAL TARGETS (ex. Magneti Marelli) • KEY FINANCIAL TARGETS (ex. Magneti Marelli) Commitment to deliver continued growth • (1) Based on current shares outstanding and dilutive instruments • (2) Includes dividend payments and pension funding. Does not reflect cash outflows for share buybacks
Slide 18: Appendix
7 FCA CAPITAL MARKETS DAY Appendix 18
Slide 19: Supplemental Financial Measures
Supplemental Financial Measures • Supplemental Financial Measures FCA monitors its operations through the use of various supplemental financial measures that may not be comparable to other similarly titled measures of other companies. Accordingly, investors and analysts should exercise appropriate c
Slide 20: Reconciliations
RECONCILIATIONS • RECONCILIATIONS Net profit to Adjusted EBIT1 Reconciliations are only provided to the most directly comparable IFRS financial statement line item for Adjusted EBIT, Adjusted net profit and Adjusted diluted EPS for historical periods as the income or expense excluded from these non-
Slide 21: Reconciliations (cont’d)
RECONCILIATIONS (cont’d) • RECONCILIATIONS (cont’d) Cash flows from operating activities to Industrial free cash flows Debt to Net industrial cash (debt)