Ct Automotive Group Plc · LSE:CTA
Ct Automotive — FY2023 Earnings Presentation
24 slides from Ct Automotive's earnings presentation, Jun 6, 2024
Slide 1: Return to strength: 2023 Results
Innovation Defines Us Return to strength CT Automotive Group plc 2023 Results
Slide 2: Agenda
Agenda 1. Highlights Simon Phillips Anna Brown 2. Financial results CEO CFO Simon co-founded CT in 2000, having Anna brings substantial experience in 3. Business review identified an opportunity to disrupt the strategic and operational finance in listed automotive tooling market. companies. Prior to
Slide 3: Our Business
Our Business Fast-growing specialist supplier of interior automotive components for the world’s leading OEMs and Tier-1 manufacturers Leading the way for interior component design Key customers Premium Electric Volume Brands Over Brands vehicles 57 different OEMs models across 22 OEMs End to end pro
Slide 4: Highlights
Highlights Rapid bounce back to profitability © 2024 CT Automotive Group PLC. All rights reserved
Slide 5: Financial highlights
Revenue Gross Profit Financial highlights $124.3m $143.0m $30.9m $14.9m • A tale of two halves • Our markets re-opened in 2023, driving revenue up 15% overall • $9.6m May fundraise unlocked the potential to drive Underlying EBITDA Underlying PBT profitability with 70% of underlying PBT generated in
Slide 6: Operational Highlights
Operational Highlights Market conditions • Strong recovery in volumes following the disruptions in 2021-22 and now aligning closer with customer demand • Agnostic drive train position suits growth in all categories: EV, ICE, PHEV and BEV Manufacturing sites • China benefitted from the reopening of a
Slide 7: Financial Results
Financial Results Improvement across all key metrics © 2024 CT Automotive Group PLC. All rights reserved
Slide 8: Income statement
Income statement $m 2023 2022 • Revenue growth from both production and tooling • Gross profit increased on the back of normalised direct Production 132.0 117.3 labour and materials and margin improvement initiatives Tooling 11.0 7.0 • Underlying EBITDA further benefitted from improved Revenue 143.0
Slide 9: Revenue bridge
Programs Inc/(Dec) in Rev $m Programs Recurring - SOP Pre 2022 9.2 52 Revenue bridge Ended - 2023 Started - 2023 (4.2) 3.0 6 4 2023 External Revenue by Plant ($m): P33A - Started mid 2022 6.8 1 China: 106.7 TOTAL 14.8 Türkiye: 15.6 Mexico: 9.7 Tooling: 11.0 $7.9m Increase in Tooling projects from 12
Slide 10: Gross profit margin bridge
Key drivers: ▪ Normalised labour conditions ▪ Reduction in headcount ▪ Introduction of automation & Gross profit margin bridge robotics ▪ Moving some production to Ganzhou +5.5% +2.7% +1.6% 21.6% 12.0% © 2023 CT Automotive Group PLC. All rights reserved
Slide 11: Underlying EBITDA bridge
Forex FY23 FY22 I/C loans 0.6 (1.5) Trading 0.3 (0.6) Underlying EBITDA bridge Forwards 0.7 (0.8) Translation (0.7) (0.9) Total 0.9 (3.8) ▪ Labour cost saving: $6.1m ▪ Material cost saving: $3.1m $0.9m ▪ Margin on additional sales: $3.0m $4.7m $1.7m $12.2m $16.1m $(7.1)m $3.8m 2022 EBITDA Tooling Pr
Slide 12: Non-recurring items
Non-recurring items $m 1H23 2023 Non-recurring items represent a net cost of $2.4m and include: Costs from historic tooling projects* 0.8 0.9 • $0.9m of costs incurred on previously completed old Impact of hyperinflation - 0.7 tooling projects; • Impact of hyperinflation in Türkiye of $0.7m; Histori
Slide 13: Balance sheet
Balance sheet • Net assets increased to $17.0m supported by the net $9.1m fundraise in May 2023 and $6.3m net profits 31 December 31 December $m 2023 2022 • Strong sales reduced inventory levels, contributing to increase in trade receivables Non-current assets • Customer payment terms normalising an
Slide 14: Net debt bridge
▪ $13.7m EBITDA less WC net movements of $6.6m ▪ $4.6m increase in trade debtors as the customer Net debt bridge payment terms reverted back to normal plus VAT receivable balance in Mexico ▪ $2.5m decrease in trade creditors as supplier payments have returned to normal plus the fund raise proceeds h
Slide 15: Business review
Business review Efficiency initiatives delivering margin improvement © 2024 CT Automotive Group PLC. All rights reserved
Slide 16: Review of key operations: China
Review of key operations: China Tooling • As expected, tooling revenue was weighted towards the second half. Completed 15 tooling projects generating $10.9m revenue • Our internal toolroom is fully utilised and ensures maximum product control and margins • Similar tooling revenue levels are expected
Slide 17: Progress on margin improvement
Progress on margin improvement Driving future profitability • With 70% of production from China, any margin improvement is a major driver of future profitability • Successful cost saving measures initiated in China are then replicated in Türkiye and Mexico, further benefits to come in these location
Slide 18: Review of key operations: Türkiye and Mexico
Review of key operations: Türkiye and Mexico Türkiye Mexico • The economic environment • Opened in late 2022 to support starting to improve our North American customers • Impact of hyperinflation and • Performing as planned, currency movements offset by generating $9.7m revenue cost escalation syste
Slide 19: Outlook
Outlook © 2024 CT Automotive Group PLC. All rights reserved
Slide 20: Strong revenue visibility and new business pipeline
Strong revenue visibility and new business pipeline Revenue visibility • A combination of existing contracts and new business wins 7 new production programs won in 2023 … gives good visibility into FY24-FY25 • Pipeline will continue to build into FY26 and FY27 with new program wins to generate conti
Slide 21: Outlook
Outlook • Margin improvement initiatives made in FY23 expected to annualise in FY24 • Further operational improvements in 1H24 will come through this year and boost margins in 2H24 • As expected, demand volumes have started to align with OEMs’ inventory levels • Strong new business pipeline, buildin
Slide 22: Appendices
Appendices © 2024 CT Automotive Group PLC. All rights reserved
Slide 23: Global Footprint
Global Footprint CT Czechia CT Ganzhou plant 1 CT Ganzhou plant 3 Kolin, Czechia c400 staff c350 staff Warehousing, assembly, Ganzhou, China Ganzhou, China ultrasonic welding for Cut & sew – wrapped trim Light guide injection & CT UK c30 staff European customers parts Armrests/IP assembly, hot Sunde
Slide 24: Disclaimer
Disclaimer The information contained in this document (“Presentation”) has been prepared by CT Automotive Group This Presentation may contain forward-looking statements that involve substantial risks and uncertainties, plc (the “Company”) solely for information purposes and does not purport to be co