Slide 1: Presentation of 9M 2019 Results
Presentation of 9M 2019 Results October 31st, 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 September 30, 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 followin
Slide 3: Agenda
Agenda Key Highlights for Q3 and 9M 2019 Financial Overview Closing Remarks © Gestamp 2019 3
Slide 4: Key Highlights for Q3 and 9M 2019
Key Highlights for Q3 and 9M 2019 • In Q3 2019 the auto production volume decline has moderated when compared to previous quarters but volumes have continued to decrease by -3.2%, despite the already low comparable base from Q3 2018 • In that context, Gestamp has outperformed the auto production mar
Slide 5: Gestamp’s Financial Performance in Q3 2019
Gestamp’s Financial Performance in Q3 2019 (In €m) Q3 2018 Q3 2019 Total Revenue 1,894 2,059 EBITDA 196 234 EBITDA margin (%) 10.3% 11.4% EBIT 92 94 EBIT margin (%) 4.8% 4.5% Net Income 31 28 Net debt 2,498 2,664 Operating Leases (IFRS 16) Not applicable 407 Q3 2019 Revenue increased by 6.3% at cons
Slide 6: Gestamp’s Financial Performance in 9M 2019
Gestamp’s Financial Performance in 9M 2019 (In €m) 9M 2018 9M 2019 Total Revenue 6,155 6,572 EBITDA 681 755 EBITDA margin (%) 11.1% 11.5% EBIT 366 338 EBIT margin (%) 6.0% 5.1% Net Income 163 128 Net debt 2,498 2,664 Operating Leases (IFRS 16) Not applicable 407 9M 2019 Revenue increased by 7.0% at
Slide 7: Update on Current Market Environment
Update on Current Market Environment IHS 2019 Global Light Vehicle Production IHS Light Vehicle Production H2 Evolution IHS Global Vehicle Production (Mveh) for 2019E IHS Global Vehicle Production (Mveh) for H2 2019E 102 July 2019 October 2019 101 2.2% 2.5% 2.2% 99.5 99.5 100 99.1 1.9% -4.2% -4.2% 9
Slide 8: Automotive Growth 9M 2019 vs. 9M 2018
Automotive Growth 9M 2019 vs. 9M 2018 Gestamp Revenue Growth at Constant FX vs. Market Production Growth in Gestamp’s Footprint Eastern Europe 21.1% NAFTA Western Europe 1.2% 20.2% Market Gestamp -4.4% -6.2% -1.8% Market Gestamp Asia Market Gestamp 9.6% Mercosur 18.7% -7.1% Market Gestamp Total in O
Slide 9: Financial Performance
Financial Performance EBITDA (1) Net Income Considerations (In €m) (In €m) • EBITDA of €755m in 9M 19, a 10.8% +€74m increase or 11.1% at constant FX, -€35m including the impact from IFRS 16 €755m +€38m €681m -€3m • Improving Net Income trend, closing €163m the gap vs. 2018 €128m ‒ Net Income in Q3
Slide 10: Cost Flexibility and Focus on FCF
Cost Flexibility and Focus on FCF Action Plan Capex • Capex for 2017 and 2018 amounted to €1.7bn and 10.2% of Revenue Moderation • Capex moderation for 2019 down to ~9.0% of Revenue and further moderation by 2020E • Action plan to adjust operations and our corporate cost structure following a high g
Slide 11: Agenda
Agenda Key Highlights for Q3 and 9M 2019 Financial Overview Closing Remarks © Gestamp 2019 11
Slide 12: Revenue and EBITDA Summary Overview
Revenue and EBITDA Summary Overview (In €m) 6,572 2,059 6,155 Revenue 1,894 Q3 2018 Q3 2019 9M 2018 9M 2019 Like for like growth: 6.3% Like for like growth: 7.0% (In €m) EBITDA 10.3% 11.4% 11.1% 11.5% margin (%) 755 EBITDA 681 234 196 Q3 2018 Q3 2019 9M 2018 9M 2019 Like for like growth: 5.0% Like f
Slide 13: Western Europe Financial Overview
Western Europe Financial Overview Considerations (In €m) • Q3 Revenue decrease of 6.6% reaching €808m − Challenging market conditions across almost all 865 3,000 countries Revenue 808 2,869 − Longer production stoppages during the summer months when compared to 2018 • 9M Revenue of €2,869m resulting
Slide 14: Eastern Europe Financial Overview
Eastern Europe Financial Overview Considerations (In €m) • Q3 Revenue reaching €277m but moderating growth vs. H1 2019 due to 973 − Lower tooling revenues and longer stoppages 277 during the summer; but Revenue 841 269 − Positive contribution from ramp-up of new projects mainly in Slovakia / Czech R
Slide 15: NAFTA Financial Overview
NAFTA Financial Overview Considerations (In €m) • Q3 Revenue growth of 33.2% reaching €546m 1,486 − Strong growth in the US mainly driven by the 546 contribution of new projects, although 1,167 410 ramping-up slower than expected Revenue • 9M Revenue reaching €1,486m − Similar trends as seen during
Slide 16: Mercosur Financial Overview
Mercosur Financial Overview Considerations (In €m) • Q3 Revenue increase of 11.2%, reaching €152m − Strong above-market growth in Brazil from new 447 project launches; partially offset by a 152 426 Revenue 137 − Strong decrease in Argentina mainly linked to market conditions and FX headwinds • 9M Re
Slide 17: Asia Financial Overview
Asia Financial Overview Considerations (In €m) • Q3 Revenue increase of 29.1% reaching €276m − Outperforming market volume growth despite 798 challenging market dynamics in China and India 276 Revenue 720 − Strong growth mainly driven by contribution from BHAP JV 214 • 9M Revenue growth of 10.7% dri
Slide 18: Capital Expenditure Overview 9M 2019
Capital Expenditure Overview 9M 2019 Capex Breakdown Considerations (In €m) • Gestamp has continued to moderate its investments, reducing total capex by €162m Capex as % Capex as % 12.2% 9.0% vs. 9M 2018 of revenue of revenue 751 • Capex over revenues stood at 9.0% as of Intangible 87 1.4% September
Slide 19: Net Financial Debt Position
Net Financial Debt Position Net Financial Debt / EBITDA (x) Q3 Seasonality – Excl. IFRS 16 Considerations Net Financial NFD Delta €2,664m €3,072m +€289m +€178m • Net financial debt increase of €178m in Q3 Debt (€m) (€m) (€184m incl. IFRS 16) lower than last year, even when adjusted for lower dividen
Slide 20: Agenda
Agenda Key Highlights for Q3 and 9M 2019 Financial Overview Closing Remarks © Gestamp 2019 20
Slide 21: 2019 Guidance Update
2019 Guidance Update Guidance 20191 Updated Guidance 20191 Revenue growth: Revenue growth: Revenues High single digit Mid single digit EBITDA growth: Slightly higher than EBITDA > EBITDA 2018 revenues Capex ~ 9.5% of revenues ~ 9.0% of revenues < 2.2x ~ 2.4x Leverage Net Debt / EBITDA Net Debt / EBI
Slide 22: Closing Remarks
Closing Remarks • During 9M 2019 Gestamp has continued to deliver Revenue and EBITDA growth despite the challenging automotive production environment • Gestamp is adapting to the auto market dynamics with the continued implementation of cost efficiencies and capex moderation, both of which already n
Slide 23: Working for a Safer and Lighter Car – Investor Relations
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