Gestamp Automocion S.a. · BME:GEST
Gestamp Automocion — Q1 2020 Earnings Presentation
24 slides from Gestamp Automocion's earnings presentation, May 18, 2020
Slide 1: Q1 2020 Results Presentation
Q1 2020 Results Presentation May 18th, 2020 G-LAB FAMILY FROM THE GESTAMP´S G-LAB PROGRAM
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, 2020. 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 2020 Financial Overview Closing Remarks © Gestamp 2020 3
Slide 4: Key Highlights for Q1 2020
Key Highlights for Q1 2020 • The first quarter of 2020 has been impacted by the unprecedented challenge of the COVID-19 pandemic and Gestamp has been able to outperform the market as a result of new projects and lower exposure to Asia ‒ Q1 20 Revenues decreased by 7.3% reported (-6.1% at constant FX
Slide 5: Financial Performance in Q1 2020
Financial Performance in Q1 2020 (In €m) Q1 2019 Q1 2020 Total Revenue 2,170 2,011 EBITDA 249 193 EBITDA margin (%) 11.5% 9.6% EBIT 110 43 EBIT margin (%) 5.1% 2.1% Net Income 41 14 Net debt 2,379 2,402 Operating Leases (IFRS 16) 408 427 Q1 2020 Revenue decreased by 6.1% at constant FX and EBITDA de
Slide 6: Automotive Growth Q1 2020 vs. Q1 2019
Automotive Growth Q1 2020 vs. Q1 2019 Gestamp Revenue Growth at Constant FX vs. Market Production Growth in Gestamp Markets Eastern Europe 0.4% NAFTA Western Europe 5.7% -12.1% Market Gestamp -10.4% Asia -21.1% -9.2% Market Gestamp Market Gestamp -26.8% Mercosur Lower exposure to Asia with GEST 13%
Slide 7: Financial Performance
Financial Performance EBITDA (1) Net Income Considerations (In €m) (In €m) • EBITDA of €193m in Q1 20, a 22.6% -€56m -€27m decrease vs. Q1 19 • Net Income reached €14m in Q1 20, 249 impacted by 193 41 ‒ Abrupt decrease in activity and limited lead-time to adjust costs 14 ‒ D&A as a result of high in
Slide 8: Significant Lower Production Volume in 2020E
Significant Lower Production Volume in 2020E IHS Light Vehicle Production for 2020 (growth % vs. 2019) Expected Volume Recovery in H2 2020 & 2021 (Mveh) (Mveh) IHS Market Production 1.8% -35.1% -10.6% +33.0% +1.8% 100 1.7% 96.2 vs. H1 19 vs. H2 19 vs. H1 20 vs. H2 20 94.9 95 -0.2% +2.5% vs. 88.6 -1.
Slide 9: Global Light Vehicle Market Dynamics
Global Light Vehicle Market Dynamics Challenging Auto Market Environment Volumes to Recover >90m Vehicles? • Auto sector was already in a complicated situation pre COVID-19 • Declining auto production market since 2017, year in which LVP reached 97m units Past − 2018: -1.0% vs. 2017 − 2019: -5.6% vs
Slide 10: Relevant Measures in Place to Address Current Volatile Environment
Relevant Measures in Place to Address Current Volatile Environment Health and Safety of Employees and Service to Customers • The priority at Gestamp has been and will continue to be the safety of its > 43,000 employees • The service to its customers in this uncertain environment Labour Flexibili
Slide 11: Measures as We Restart Operations
Measures as We Restart Operations PROTOCOLS – Guaranteeing the Health and Safety of our employees around the world with clearly defined measures for re-opening of production facilities and HQs CUSTOMERS – Maintaining a close relationship with our clients to coordinate the start-up of activities in t
Slide 12: Agenda
Agenda Key Highlights for Q1 2020 Financial Overview Closing Remarks © Gestamp 2020 12
Slide 13: Western Europe Financial Overview
Western Europe Financial Overview Considerations (In €m) • Revenue decrease of 10.2% reaching €895m − Continued challenging market conditions across 997 almost all countries, especially during the 895 second half of March due to COVID-19 Revenue − Lower production levels with sudden stoppages, espec
Slide 14: Eastern Europe Financial Overview
Eastern Europe Financial Overview Considerations (In €m) • Revenue decline of 2.7% reaching €314m − Impacted by clients’ shutdowns during the last 322 two weeks of March due to COVID-19 314 Revenue − FX headwinds, mainly in Turkey Q1 2019 Q1 2020 Growth at constant FX: 0.4% vs. market growth of -12.
Slide 15: NAFTA Financial Overview
NAFTA Financial Overview Considerations (In €m) • Revenue growth of 7.5%, above market growth backed by 460 495 − Contribution of project ramp-ups pre-COVID-19; although Revenue − Partially offset by production stoppages in March due to COVID-19 Q1 2019 Q1 2020 Growth at constant FX: 5.7% vs. market
Slide 16: Mercosur Financial Overview
Mercosur Financial Overview Considerations (In €m) • Revenue decrease of 10.2% reaching €125m − Strong negative impact from FX 139 • Customer planning changes in new project ramp- 125 Revenue ups in Brazil • Impact coming from unexpected closure of customers’ plants in the last weeks of March due to
Slide 17: Asia Financial Overview
Asia Financial Overview Considerations (In €m) • Revenue decline of -27.1%, reaching €183m − Decline in China due to COVID-19 impact 251 • Current levels of activity are already recovering in Revenue China with all of our facilities in production 183 − Capacity utilization rates currently increasing
Slide 18: Capital Expenditure Overview Q1 2020
Capital Expenditure Overview Q1 2020 Capex Breakdown Considerations (In €m) Capex as % Capex as % • Capex reduction to €146m in Q1 2020, reducing 9.2% 7.2% of revenue of revenue total capex by 27% or €54m vs. Q1 19 ‒ Preserving committed projects and 200 revaluating client needs in an evolving envir
Slide 19: Net Financial Debt Position Q1 2020 and Debt Maturities 2020 & 2021
Net Financial Debt Position Q1 2020 and Debt Maturities 2020 & 2021 Net Financial Debt Q1 Net Debt Seasonality – Excl. IFRS 16 Considerations • Net debt ex-IFRS 16 stood at €2,402m, implying a ND/EBITDA of 2.59x 145 73 • Q1 net debt seasonality better than previous years – net financial debt increas
Slide 20: Liquidity Position as of Q1 2020
Liquidity Position as of Q1 2020 Liquidity Position as of Q1 2020 Considerations (In €m) • Current liquidity position amounted c. €2.0bn 2019A €659m €747m €1,818m (vs. €1.8bn in Q4 2019), an increase of €170m vs. full year €1,017m(1) • As of March 31st liquidity was split between 313 1,988 €971m rel
Slide 21: Agenda
Agenda Key Highlights for Q1 2020 Financial Overview Closing Remarks © Gestamp 2020 21
Slide 22: Our Solidarity in the Face of COVID-19
Our Solidarity in the Face of COVID-19 Production of Sanitary Material Donations of Sanitary Material Several global solidarity initiatives including donations and production of sanitary material to hospitals © Gestamp 2020 22
Slide 23: Closing Remarks
Closing Remarks • During Q1 2020 we have been able to manage the business fairly well despite the uncertain market environment as a result of the COVID-19 pandemic • Strong financial position with c. €2bn liquidity as of Q1 2020 which we will continue to focus on over the coming quarters • Relevant
Slide 24: Investor Relations
Investor Relations +34 91 275 28 72 investorrelations@gestamp.com www.gestamp.com © Gestamp 2020 © Gestamp 2020 24