Iveco Group Nv · MIL:IVG
Iveco Group Nv — Q2 2022 Earnings Presentation
35 slides from Iveco Group Nv's earnings presentation, Jul 28, 2022
Slide 1: Iveco Group N.V. Q2 2022 Financial Results
Iveco Group N.V. | Q2 2022 Financial Results Turin, Italy – 28th July 2022
Slide 2: Safe Harbor Statement and Disclosures
Safe Harbor Statement and Disclosures All statements other than statements of historical fact contained in the slides presented today, including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (o
Slide 3: CEO Executive Summary
Q2 2022 | CEO Executive Summary • Second quarter performance ahead of our preliminary indication mainly on the back of better mix and price realization; component shortages still affected quarterly performance with some availability improvements at June-end • Consolidated Net Revenues were up 1.5% v
Slide 4: Main Facts
Q2 2022 | Main Facts 28th April - IVECO and Eni sign a Letter of Intent for the sustainable 20th June - IVECO BUS announces plans to restart production in Italy mobility of commercial vehicles The vehicles will be based on state-of-the-art technologies, including those linked to The two companies wi
Slide 5: Industry Volume
Q2 2022 | Industry Volume Industry statistics in units (Q2 2022 % change vs. Q2 2021) Europe (*) South America (*) Rest of the World (*) Worldwide LCV (24)% 13% (27)% (23)% (3.5-7.49t) M&H (2)% (5)% (12)% (7)% (≥7.5t) Buses (11)% (4)% 4% (1)% Total Industry Volume % change Q2 2022 vs. Q2 2021 reflec
Slide 6: Channel Inventory
Q2 2022 | Channel Inventory Iveco Group and Dealer units statistics LCV M&H (3.5-7.49t) (≥7.5t) Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Company inventory Third party dealer inventory Retails Production Q2 2022 Financial
Slide 7: WW - Deliveries and Order Intake
Q2 2022 | WW - Deliveries and Order Intake Trucks and Buses units statistics LCV M&H Buses (3.5-7.49t) (≥7.5t) 1.10 1.22 1.42 1.33 1.20 1.26 Deliveries Order intake Deliveries Order intake Deliveries Order intake Deliveries Order intake Deliveries Order intake Deliveries Order intake Q2 2021 Q2 2022
Slide 8: EU Preliminary Market Share
Q2 2022 | EU Preliminary Market Share Registration units LCV M&H (3.5-7.49t) (≥7.5t) 63.8% 74.0% Supply chain and component 14.5% shortages 64.0% 13.5% 54.0% 12.5% 11.5% 44.0% 39.2% 33.4% 10.5% 34.0% 9.5% 24.0% 8.5% 7.7% 15.3% 7.5% 14.0% 7.0% 6.5% 4.0% 5.5% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21
Slide 9: BEYOND – Iveco Group Days | 13-17th July 2022
BEYOND – Iveco Group Days | 13-17th July 2022 FPT Industrial to power the first Liquified Natural Gas (LNG) trucks on India’s roads “…poised to outsmart and outpace Our global powertrain brand and Blue Energy Motors, a zero-emission truck technology much greater competitor groups company headquarter
Slide 10: Financials | Q2 2022
IVECO*»GROUP veco | IVECO ErFPT | IDV @asren MA nmacinus Financials | Q2 2022
Slide 11: Financial Summary
Q2 2022 | Financial Summary Financial results presented under IFRS Industrial Net Revenues Industrial Free Cash Flow • Up 1.1% to €3.3bn, mainly due to strong positive price realization • At €(111)m, €293mn lower compared to Q2 2021, due to working €3.3bn more than offsetting negative volume and mix
Slide 12: Industrial Activities Net Revenues
Q2 2022 | Industrial Activities Net Revenues Q2 2022 split by region and segment, and walk 14% % Chg. YoY 3% Europe (4)% 13% By Region South America 45% 70% North America 55% Rest of the World (2)% €3.3bn +1.1% YoY 27% % Chg. YoY 3,292 3,329 By Business Trucks 1% Unit 55% NET REVENUES NET REVENUES 7
Slide 13: Industrial Activities Adjusted EBIT
Q2 2022 | Industrial Activities Adjusted EBIT Walk by segment & driver – IFRS (€mn) 3.3% 2.7% 110 1 132 (146) (3) 1 (12) 8 91 ADJUSTED EBIT ELIMINATIONS AND ADJUSTED EBIT VOLUME AND MIX NET PRICING PRODUCTION COST (1) SG&A R&D FX | OTHER Q2 2021 OTHER Q2 2022 Segments View C&SV 94 24 132 (151) (5) 2
Slide 14: Financial Services
Q2 2022 | Financial Services Adjusted EBIT and Managed Portfolio Adjusted EBIT Equity and Profitability ratio(1) (€mn) 760 2.1% 2.5% 1.9% 1.8% 1.9% 750 1.7% 1.7% 2.0% Q2 2022 27 740 1.5% 730 752 1.0% 720 744 740 710 723 725 723 0.5% Q2 2021 16 700 0.0% Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 Financial Services
Slide 15: Net Industrial Cash walk, WC and Industrial FCF dynamics
Q2 2022 | Net Industrial Cash walk, WC and Industrial FCF dynamics IFRS (€mn) Industrial FCF €(111)mn 765 283 (11) (133) (72) (151) (27) - (29) 625 NET IND. CASH IA | ADJUSTED CASH INTEREST Δ IN WORKING Δ IN PROVISIONS & DIVIDENDS & EQUITY NET IND. CASH INVESTMENTS (2) OTHER CHANGES FX & OTHER 31st
Slide 16: Debt maturity profile and Available liquidity
30th June 2022 | Debt maturity profile and Available liquidity Total available liquidity (€mn) 3,495 IFRS – €m 30th June 2022 Total cash maturities €816mn Cash and cash equivalents 1,431 Undrawn committed facilities 2,000 Other current financial assets(1) 41 516 Financial receivables from CNH Indust
Slide 17: CEO | Closing remarks
IVECO*»GROUP IVECO HEULIEZ IVECO | IVECO ErFPT | IDV @asren MA nmacinus CEO | Closing remarks
Slide 18: FY 2022E Preliminary Industry Outlook
FY 2022E | Preliminary Industry Outlook Units (% change vs. FY 2021) Europe (*) South America (*) Rest of the World (*) Worldwide LCV (10)% - (5)% ~(5)% (25)% - (20)% ~(10)% (3.5-7.49t) M&H ~5% Flat - 5% (10)% - (5)% ~Flat (≥7.5t) Buses ~5% 10% - 15% ~5% ~5% Preliminary financial outlook based on cu
Slide 19: FY 2022E Preliminary Financial Outlook
FY 2022E | Preliminary Financial Outlook IFRS FY 2022E Group Adjusted EBIT €400 - 420mn Industrial Activities Net Revenues Up 3% - 4% (including currency translation effects) vs. FY 2021 SG&A < 6.5% over Net Sales Net Industrial Cash(1) ~ €1.2bn Preliminary financial outlook based on current visibil
Slide 20: CEO | Takeaway messages
CEO | Takeaway messages • Supply chain and raw material costs (including energy) to remain headwinds in H2 while expectation is for a better availability of semiconductors vs. H1 2022. FY 2022 product cost expected to be offset by pricing • Laser focus on our inventories level managing our order boo
Slide 21: Appendix
IVECO*»GROUP IVECO HEULIEZ IVECO | IVECO ErFPT | IDV @asren MA nmacinus Appendix
Slide 22: H1 2022 Industrial Activities Net Revenues
H1 2022 | Industrial Activities Net Revenues H1 2022 split by region and segment, and walk 15% % Chg. YoY 2% Europe (4)% 12% By Region South America 54% 71% North America 40% Rest of the World (6)% €6.3bn +1.3% YoY 27% % Chg. YoY 6,257 6,339 By Business Trucks 3% Unit 56% NET REVENUES NET REVENUES 6
Slide 23: H1 2022 Industrial Activities Adjusted EBIT
H1 2022 | Industrial Activities Adjusted EBIT Walk by segment & driver – IFRS (€mn) 3.6% 2.7% 226 4 248 (265) (12) 11 (24) (15) 173 ADJUSTED EBIT ELIMINATIONS AND ADJUSTED EBIT VOLUME AND MIX NET PRICING PRODUCTION COST (1) SG&A R&D FX | OTHER H1 2021 OTHER H1 2022 Segments View C&SV 153 63 248 (254
Slide 24: Reconciliation Table (1/7)
Q2 2022 | Reconciliation Table (1/7) Reconciliation of EBIT to Adjusted EBIT by segment of Q2 2022 and Q2 2021 Unallocated items, Commercial and Total Powertrain eliminations and Financial Services Eliminations Total Specialty Vehicles Industrial Activities Q2 2022 other EBIT 59 47 (40) 66 27 - 93 A
Slide 25: Reconciliation Table (2/7)
H1 2022 | Reconciliation Table (2/7) Reconciliation of EBIT to Adjusted EBIT by segment of H1 2022 and H1 2021 Unallocated items, Commercial and Total Powertrain eliminations and Financial Services Eliminations Total Specialty Vehicles Industrial Activities H1 2022 other EBIT 120 92 (103) 109 25 - 1
Slide 26: Reconciliation Table (3/7)
Q2 & H1 2022 | Reconciliation Table (3/7) Reconciliation of Adjusted net profit (loss) and Adjusted income tax (expense) benefit to Consolidated Profit (Loss) and Income tax (expense) benefit and calculation Adjusted ETR under IFRS IFRS – €m Q2 2022 Q2 2021 H1 2022 H1 2021 Profit (Loss) 36 76 21 143
Slide 27: Reconciliation Table (4/7)
Q2 & H1 2022 | Reconciliation Table (4/7) Reconciliation of Adjusted net profit (loss) and Adjusted income tax (expense) benefit to Consolidated Profit (Loss) and Income tax (expense) benefit and calculation Adjusted ETR under IFRS IFRS – €m Q2 2022 Q2 2021 H1 2022 H1 2021 Restructuring costs 3 2 4
Slide 28: Reconciliation Table (5/7)
30th June 2022 | Reconciliation Table (5/7) Total (Debt) to Net Cash (Debt) Consolidated Industrial Activities Financial Services IFRS – €m 30th June 2022 31st December 2021 30th June 2022 31st December 2021 30th June 2022 31st December 2021 Third party (debt) (3,268) (2,709) (748) (220) (2,520) (2,
Slide 29: Reconciliation Table (6/7)
30th June 2022 | Reconciliation Table (6/7) Cash and cash equivalents to Available liquidity IFRS – €m 30th June 2022 31st March 2022 31st December 2021 Cash and cash equivalents 1,431 1,738 897 Undrawn committed facilities 2,000 1,613 41 Other current financial assets(1) 41 25 54 Financial receivab
Slide 30: Reconciliation Table (7/7)
Q2 & H1 2022 | Reconciliation Table (7/7) Industrial FCF IFRS – €m Q2 2022 Q2 2021 H1 2022 H1 2021 Net cash provided by (used in) Operating Activities 113 375 12 181 - Cash flows from Operating Activities of Financial Services net of eliminations (46) (16) (9) (36) = Operating cash flow of Industria
Slide 31: Q2 2022 Book to Bill
Q2 2022 | Book to Bill Q2 2022 vs. Q2 2021 Book to Bill Order intake Deliveries Q2 2022 Q2 2021 ∆ Q2 2022 Q2 2021 ∆ Q2 2022 Q2 2021 ∆ Trucks 1.29 1.22 6% 34,189 39,308 (13)% 26,548 32,255 (18)% Light-duty trucks (LCV) 1.23 1.07 15% 24,467 27,234 (10)% 19,879 25,364 (22)% Europe Medium and heavy truc
Slide 32: H1 2022 Book to Bill
H1 2022 | Book to Bill H1 2022 vs. H1 2021 Book to Bill Order intake Deliveries H1 2022 H1 2021 ∆ H1 2022 H1 2021 ∆ H1 2022 H1 2021 ∆ Trucks 1.23 1.53 (20)% 65,082 88,695 (27)% 52,956 57,972 (9)% Light-duty trucks (LCV) 1.16 1.47 (21)% 47,358 65,122 (27)% 40,982 44,328 (8)% Europe Medium and heavy t
Slide 33: Non-IFRS financial measures
Non-IFRS financial measures Iveco Group monitors its operations through the use of several non-IFRS financial measures. Iveco Group’s management believes that these non-IFRS financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to
Slide 34: Geographic information
Geographic information Financials - The composition of our regions is as follow: • Europe: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine and Balkans; • South America: Central and South America, and the Caribbean Islands; • North America: United
Slide 35: IR contacts
IR contacts Federico Donati – Head of Investor Relations Luis Cordova – Investor Relations Claudia Zolin – Investor Relations Analyst Enza Marsala – Investor Relations Assistant E-mail: investor.relations@ivecogroup.com Website: www.ivecogroup.com/investors/contacts