CIE Automotive, S.a. · BME:CIE
CIE Automotive — Investor Presentation (March 2014)
42 slides from CIE Automotive's investor presentation, March 2014
Slide 1: Company Presentation
Company Presentation Industrial Group specialized in Managing High Value Added Processes March 2014 1
Slide 2: Disclaimer
DISCLAIMER • This document includes or may include statements or estimates about intentions, expectations or forecasts of CIE AUTOMOTIVE or of its management body on the present date, regarding several issues such as the evolution of its business and the company’s financial results. These statements
Slide 3: Table of Contents
TABLE OF CONTENTS 1 What is CIE Automotive? 2 Automotive Project 3 Applied Innovation Project 4 Update on results: FY2013 5 Strategic Thinking 2013-2017 Industrial Group specialized in Managing High Value Added Processes 3
Slide 4: What is CIE Automotive? Developing two projects
WHAT IS CIE AUTOMOTIVE? DEVELOPING TWO PROJECTS Automotive Applied components Innovation NEW project facing UNIQUE business model DIGITALIZATION in developed SUCCESFULLY productive activities, by since 1996, with a solid applying knowledge and TRACK RECORD with IRR innovation to achive over 20% EFFI
Slide 5: CIE Automotive project and M&A track record
WHAT IS CIE AUTOMOTIVE? Mkt Cap: 930 Mio€ (1) Sales 2013: 1.696 Mio€ (2) Employees ~ 25.000 (3) EBITDA 2013: 240 Mio€ CIE Automotive project carried forward in the context of the necessary consolidation of an atomized sector, proving a succesful M&A track record: • Over 65 M&A transactions s
Slide 6: What is CIE Automotive? History and transactions
WHAT IS CIE AUTOMOTIVE? Joamar CIE Maroc CIE Metal Pemsa Ramos A. Apolo Blue Unitools CIE Plasty CIE Kataforesis GSB-TBK Pemsa Saltillo Nugar Norma SBC Cromado Inyectametal C.Vilanova CIE Celaya CIE China Praga Louny Matic Nanging Forg. Udalbide Gameko Promoauto Century Autometal Plasfil Jardim Sist
Slide 7: Table of Contents
TABLE OF CONTENTS 1 What is CIE Automotive? 2 Automotive Project 3 Applied Innovation Project 4 Update on results: FY2013 5 Strategic Thinking 2013-2017 Industrial Group specialized in Managing High Value Added Processes 7
Slide 8: CIE Culture: What makes this project unique?
CIE CULTURE: WHAT MAKES THIS PROJECT UNIQUE? Working on our key differentiating factors Multi- Multi- Value Investment Diversifi localization, technology, creating control cation as a our own a flexibilty managemen and return defence answer instrument t model exigence Industrial Group specialized in
Slide 9: Multilocalization: our differential answer to economic cycle
MULTILOCALIZATION: OUR DIFFERENCIAL ANSWER TO ECONOMIC CYCLE USA FRANCE UK CZECH REP. GERMANY LITHUANIA CIE USA CIE Compiegne Stokes Schöneweiss CIE LT Forge CIE Plasty Cz CIE Autometal CPI 1 RS Automotive CIE Unitools Press Cz GSA CIE Autometal CPI 2 Jeco CIE Metal Cz PORTUGAL ITALY CIE Kataforesis
Slide 10: Multilocalization: a necessary geographical balance
MULTILOCALIZATION: A NECESSARY GEOGRAPHICAL BALANCE AUTOMOTIVE SALES BY GEOGRAPHICAL AREA (2013 Automotive sales, proforma including a complete year of all Mahindra CIE companies) 80 production plants Nafta 18% 20.000 employees Brazil Europe 7 R&D centers 17% 49% 4 main markets Asia 16% > 6.000 refe
Slide 11: Diversification: our commercial defense
DIVERSIFICATION: OUR COMMERCIAL DEFENSE AUTOMOTIVE SALES BY CUSTOMER (2013 Automotive sales, proforma including a complete year of all Mahindra CIE companies) OTHERS: • AUTOLIV • BMW • BOSCH • DAF • DELPHI DIESEL • HONDA • HYUNDAI • KS MAHLE • LEAR • MAGNA • MARUTI SUZUKI • NTN • TKP • VALEO • ZF -
Slide 12: Multitechnology: a flexibility instrument
MULTITECHNOLOGY: A FLEXIBILITY INSTRUMENT TECHNOLOGY INTEGRATION WORLDWIDE CIE is one of the few Tier 2 suppliers able to offer the integration of a whole range of different technologies and subprocesses in most of Automotive geographical main markets Aluminum Oil Stamping Oil Plastic Oil Pan Pan Pa
Slide 13: Multitechnology: a wide product range instrument
MULTITECHNOLOGY: A WIDE PRODUCT RANGE INSTRUMENT ALUMINIUM PRODUCTS Gear Housing Camshaft Bearing Steering Housings Camshaft Cover FORGING PRODUCTS Crankshafts CV- Joints Axle Shaft Axle Beam STAMPING & TUBE FORMING PRODUCTS Body in White Brake Booster Seat Structure MACHINING PRODUCTS Hubs, Outer R
Slide 14: Multitechnology: a wide product range instrument
MULTITECHNOLOGY: A WIDE PRODUCT RANGE INSTRUMENT PLASTIC PRODUCTS Emblems Ashtray Arm Rest Trim Parts CASTING PRODUCTS Turbo housing Crankshaft Differential housing Brake drum ROOF SYSTEM PRODUCTS Glazing Panoramic Roof Shading MULTI- TECHNOLOGY Gasoline & Diesel Injection Rails PRODUCTS Oil Pan For
Slide 15: Product portfolio aligned with sector key demand drivers
MULTITECHNOLOGY: A WIDE PRODUCT RANGE INSTRUMENT PRODUCT PORTFOLIO ALIGNED WITH SECTOR KEY DEMAND DRIVERS 1 Globalization and reduction of the amount of platforms 2 Engine downsizing 3 Mid size vehicles hybridisation 4 Active and passive safety features standard in all regions 5 Systems electrificat
Slide 16: Creating value: our customized management model
CREATING VALUE: OUR CUSTOMIZED MANAGEMENT MODEL Cash flow GENERATION is the key Strategy metric in Optimized cost definition management structure by INVOLVING decisions increasing whole team INDIRECT Lean structure PRODUCTIVITY that allows DECENTRALIZE DECISION D management MAKING to be structure, w
Slide 17: Investment control: resources efficiency
INVESTMENT CONTROL: RESOURCES EFFICIENCY FLEXIBLE MACHINERY valid to produce for different customers and platforms, allowing HIGH SATURATION level of facilities and an optimised use of productive capacity. ≈4% recurrent investment level that allows maintenance and 2-3% organic growth. STRICT INVESTM
Slide 18: Our commitment to environment
OUR COMMITMENT TO ENVIROMENT • CIE’s environmental commitment of Automotive project. • Focused on used recycled oils collection and production of biofuel from them. • Vertical business integration up to distribution. • Minimum investment planned, associated to organic growth. • Slightly positive EBI
Slide 19: Table of Contents
TABLE OF CONTENTS 1 What is CIE Automotive? 2 Automotive Project 3 Applied Innovation Project 4 Update on results: FY2013 5 Strategic Thinking 2013-2017 Industrial Group specialized in Managing High Value Added Processes 19
Slide 20: Applied Innovation: Technological Services
WHAT IS DOMINION? APPLIED INNOVATION: TECHNOLOGICAL SERVICES Applying innovation through (1) Sensoring and DIGITALIZATION, which goes into… (2) integral SERVICE CENTERS, where… (3) BIG DATA management is applied, before… (4) DEPLOYING adequate resources Industrial Group specialized in Managing High
Slide 21: Applied Innovation: Solutions & EPCs
WHAT IS DOMINION? APPLIED INNOVATION: SOLUTIONS & EPCs Applying innovation through INTEGRATION of KNOWLEDGE platforms and management of complete INVESTMENT PROJECTS Industrial Group specialized in Managing High Value Added Processes 21
Slide 22: Differencial positioning: strategic value drivers
STRATEGIC VALUE DRIVERS DIFFERENCIAL POSITIONING • Creating competitive advantages through cost leadership. • Freeing capital and using the resources more efficiently. EFFICIENCY AND • Keeping an updated innovative and universal offer. TECHNOLOGICAL • Incorporating into the market those solutions th
Slide 23: What will Dominion be?
WHAT WILL DOMINION BE? Sales > 500 Mio€ with > 6.000 NECESSARY INCREASE IN people SINERGIC SIZE Beroa purchase Low option with investment MULTISECTORIAL formula of 3 yrs payment 2017 level requirements TECHONOLOGICAL allows self- finance SERVICES AND SOLUTIONS & EPCs PROJECT BECOME TRUE High convers
Slide 24: Table of Contents
TABLE OF CONTENTS 1 What is CIE Automotive? 2 Automotive Project 3 Applied Innovation Project 4 Update on results: FY2013 5 Strategic Thinking 2013-2017 Industrial Group specialized in Managing High Value Added Processes 24
Slide 25: CIE Automotive Group Results 2013
CIE AUTOMOTIVE GROUP RESULTS 2013 (million Euros) 312012 Marzo 31 Marzo 2013 (Millones de euros) 2009 2010 Turnover 1.645,7 1.760,3 8,5% Adjusted Turnover * 1.562,5 1.696,0 EBITDA 224,1 240,1 7,2% % EBITDA o/ Adjusted Turnover 14,3% 14,2% EBIT 141,4 150,4 6,4% % EBIT o/ Adjusted Turnover 9,0% 8,9% P
Slide 26: Quarterly Results Evolution
QUARTERLY RESULTS EVOLUTION 2010/2011/2012/2013 Group Evolution without Mahindra effect 4Q Quarterly Ebitda Margin Evolution 2013 Ex 15,4% 14,7% (million Euros) 2012 Mahindra 14,4% 14,4% 14,6% 14,4% 14,4% 13,9% 14,3% (*) 14,3% 13,8% 14,1% 14,0% 13,1% 13,1% 13,7% Turnover 1.645,7 1.672,0 12,3% 63,3 6
Slide 27: Financial Position 2013
FINANCIAL POSITION 2013 Net Financial Debt Evolution NFD/Equity Evolution Net Financial Debt (mill. €) NFD/EBITDA (x) NFD/Equity (x) 4,0X 538 574 535 507 2,1x 4,6x 408 1,8x 1,9x 3,0x 394 2,6x 2,6x 342 2,4X 1,4x 2,0X 1,0X 1,8X 0,8X 0,7x 1,5x 1,0X 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010
Slide 28: Automotive Results 2013
AUTOMOTIVE RESULTS 2013 (million Euros) 31 Marzo 2012 2013 (Millones de euros) 2009 Turnover 1.308,5 1.483,3 13,4% EBITDA 207,0 223,2 7,8% % EBITDA o/ turnover 15,8% 15,0% EBIT 132,1 142,0 7,5% % EBIT o/ turnover 10,1% 9,6% Note: EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Incom
Slide 29: Automotive Results 2013: Ex-Autometal and Autometal
AUTOMOTIVE RESULTS 2013 Ex - Autometal (million Euros) 2012 2013 • Sales volume drop due to exit of CIE Forging companies from the Turnover 667,5 593,6 scope of consolidation in 2S2013 EBITDA 99,1 99,5 • Sales level maintenance compared to same period and 2012 same scope of consolidation aligned wit
Slide 30: Dominion Results 2013
DOMINION RESULTS 2013 (million Euros) 2012 31 Marzo 2013 31 Marzo 2009 2010 Turnover 138,3 156,3 +13,0% EBITDA 13,0 13,2 +0,6% % EBITDA o/ turnover 9,5% 8,4% EBIT 9,0 8,2 % EBIT o/ turnover 6,5% 5,2% EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income • Sales improvement by 13% c
Slide 31: Biofuels Results 2013
BIOFUELS RESULTS 2013 31 Marzo 31 Marzo (million Euros) 2012 2009 2013 2010 (Millones de euros) Turnover 198,9 120,7 -51,2% Adjusted Turnover* 115,7 56,4 -6,0% EBITDA 3,9 3,7 EBIT 0,3 0,2 Notes: (*) Proforma value calculated by deducting turnover of diesel oil used for blending EBITDA: Net Operating
Slide 32: Table of Contents
TABLE OF CONTENTS 1 What is CIE Automotive? 2 Automotive Project 3 Applied Innovation Project 4 Update on results: FY2013 5 Strategic Thinking 2013-2017 Industrial Group specialized in Managing High Value Added Processes 32
Slide 33: Strategic Thinking 2013-2017: Reafirming our strategy
STRATEGIC THINKING 2013-2017: REAFIRMING OUR STRATEGY 2013-2017 we analyzed CIE and its environment In the Strategic Plan Automotive industry is undergoing a fast transformation in order to adapt itself to main trends of the Sector… Increasing Great importance of concentration in Asian Market few bi
Slide 34: Already proved unique business model: sales and EBITDA evolution
STRATEGIC THINKING 2013-2017: REAFIRMING OUR STRATEGY Already proved unique bussines model: Sustainable and profitable growth history SALES evolution (Mio€) EBITDA evolution (Mio€) 1.696 240 481 53 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2002 2003 2004 2005 2006 2007 2008 2009 20
Slide 35: Already proved unique business model: healthy balance sheet
STRATEGIC THINKING 2013-2017: REAFIRMING OUR STRATEGY Already proved unique bussines model: Healthy balance sheet NFD/EBITDA evolution NFD/EQUITY evolution Net Financial Debt / Equity (x) 4,0X 538 574 535 507 Net Financial Debt (Mio €) 2,1x 4,6x 1,8x 1,9x 408 3,0x 394 2,6x 2,6x 342 2,4X 1,4x 2,0X 1,
Slide 36: 2017 goals: sales and EBITDA targets
STRATEGIC THINKING 2013-2017: REAFIRMING OUR STRATEGY 2013-2017 we set the following overall goals: In the Strategic Plan Sales evolution (Mio€) EBITDA evolution (Mio€) 3500 500 3000 450 400 2500 350 2000 300 250 1500 200 1000 150 100 500 50 0 2017 2017 TARGET TARGET >3 BIL€ ≈ 14% Industrial Group s
Slide 37: 2017 goals: EBIT and RONA targets
STRATEGIC THINKING 2013-2017: REAFIRMING OUR STRATEGY 2013-2017 we set the following overall goals: In the Strategic Plan % EBIT evolution % RONA evolution 10,0% 25,0% 9,0% 8,0% 20,0% 7,0% 6,0% 15,0% 5,0% 4,0% 10,0% 3,0% 2,0% 5,0% 1,0% 0,0% 0,0% 2017 2017 2017 2017 TARGET TARGET >9% ≈20% Industrial
Slide 38: Today these strategic objectives are a reality
STRATEGIC THINKING 2013-2017: REAFIRMING OUR STRATEGY Today these strategic objectives are… …a reality Strategic Plan aims the profitable growth of the Group, generating high value for shareholder Industrial Group specialized in Managing High Value Added Processes 38
Slide 39: Strategic plan: 2013 to 2015 targets
STRATEGIC THINKING 2013-2017: REAFIRMING OUR STRATEGY SALES SALES ≈1.800 ≈2.700 Mio€ Mio€ NFD / NFD / Ebitda 2.4x 2013 CAPEX 500 Mio€ Ebitda ≈2.0x 2015 CAPEX 700 Mio€ EBIT ≈9% EBIT >8% • European market growth. • Productive means adequation in Brazil. • Nafta Greenfields performance. • Action plan r
Slide 40: Strategic plan consolidation: our next reality
STRATEGIC THINKING 2013-2017: REAFIRMING OUR STRATEGY SALES SALES ≈2.700 >3.000 Mio€ Mio€ NFD / NFD / CAPEX Ebitda ≈2.0x 2015 CAPEX 700 Mio€ Ebitda <1.5x 2017 1.000 Mio€ EBIT >8% EBIT >9% STRATEGIC PLAN CONSOLIDATION: OUR NEXT REALITY Industrial Group specialized in Managing High Value Added Process
Slide 41: Turnover over 3.000 Mio€
STRATEGIC THINKING 2013-2017: REAFIRMING OUR STRATEGY Turnover over 3.000 Mio€ Asia CAGR > 15% Asia Europe America Europe America Sales 2012 Sales 2017 Consolidating a significant market share in the Asian market, continuing with the strategy of emerging markets growth Industrial Group specialized i
Slide 42: Thank You
THANK YOU Industrial Group specialized in Managing High Value Added Processes 42