Iveco Group Nv · MIL:IVG
Iveco Group Nv — Q4 2024 Earnings Presentation
53 slides from Iveco Group Nv's earnings presentation, Feb 7, 2025
Slide 1: Q4 & FY 2024 results
Q4 & FY 2024 results Turin, Italy – 7th February 2025
Slide 2: Cautionary Statement
INTRODUCTION CAUTIONARY STATEMENT Statements other than statements of historical fact contained in these slides, including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, cap
Slide 3: A year of solid performance and new product introductions
INTRODUCTION A YEAR OF SOLID PERFORMANCE AND NEW PRODUCT INTRODUCTIONS IVG closed the year with solid profitability, FY 2024 Consolidated Net Revenues at on continuous positive price realisation and €15.3bn, -4% versus FY23, with Consolidated diligent cost management, which Adj. EBIT margin +30bps y
Slide 4: Truck
Slide 5: Model Year 2024: a complete and powerful range
TRUCK MODEL YEAR 2024: A COMPLETE AND POWERFUL RANGE • During Q4 2024 we had almost 100% of our Model Year 2024 configurations (Diesel, Natural Gas, Electric, 4x2, 4x4, … etc.) in production. The comprehensive and powerful range will bolster our leadership position in Light-Duty Truck and further st
Slide 6: Solid full year market shares with continuous pricing discipline
TRUCK SOLID FULL YEAR MARKET SHARES WITH CONTINUOUS PRICING DISCIPLINE LCV M&H (3.5-7.49t) (≥ 7.5t) INDUSTRY VOLUME(1) (Units, % change versus FY 2023) South Rest of the South Rest of the • FY 2024 European industry volumes were +12% in Europe 25 America World Worldwide Europe 25 America World World
Slide 7: Phase-out/in of new product range proceeding as planned
TRUCK TRUCK PHASE-OUT/IN OF NEW PRODUCT RANGE PROCEEDING AS PLANNED LCV M&H LIGHT-DUTY TRUCKS (3.5-7.49t) (≥ 7.5t) • Q424 European order intake down 21% by design BOOK-TO-BILL RATIO to manage the phase-out of Model Year 2022 and WORLDWIDE the phase-in of Model Year 2024 in the dealer network 120 Tho
Slide 8: Production level maintained below retail demand
TRUCK TRUCK PRODUCTION LEVEL MAINTAINED BELOW RETAIL DEMAND LCV M&H (3.5-7.49t) (≥ 7.5t) CHANNEL INVENTORY • The phase-out of Model Year 2022 and phase-in of Model Year 2024 in light duty trucks with our dealers is ongoing and will be largely completed, as already communicated, by Q1 2025 • Inventor
Slide 9: Bus
BUS ~~ (f) evecreie
Slide 10: Embracing technology neutrality: versatile solutions with accelerated zero-emission offering
BUS BUS EMBRACING TECHNOLOGY NEUTRALITY: VERSATILE SOLUTIONS COUPLED WITH ACCELERATED ZERO-EMISSION OFFERING • In Q424 first deliveries of Intercity Low Entry • Annonay plant electrification ramp-up. Both Elec, mainly in Italy and Benelux plants by Q125 will run at full capacity in Citybus • 3-Dec –
Slide 11: 2024 saw a further strengthening in core market segments
BUS BUS 2024 SAW A FURTHER STRENGTHENING IN CORE MARKET SEGMENTS INDUSTRY VOLUME(1) • Intercity segment leadership strengthened in (Units, % change versus FY 2023) Europe 25 South America Rest of the World Worldwide Europe, confirming for the FY 2024 at 50.5% market +10% +8% Not available +9% share
Slide 12: Positive momentum through successful tendering strategy
BUS WE MAINTAINED A POSITIVE MOMENTUM THROUGH OUR SUCCESSFUL TENDERING STRATEGY, WHILE ACCELERATING DELIVERIES BOOK-TO-BILL RATIO WORLDWIDE • Bus deliveries were 8% up and order intake 6% up versus FY 2023 • Book-to-bill ratio was at 1.00x at the end of FY 16 Thousands of units 2024, roughly unchang
Slide 13: Powertrain
POWERTRAIN
Slide 14: ICE multi-energy platforms and e-Powertrain launched in Q4 2024
POWERTRAIN ICE MULTI-ENERGY PLATFORMS AND E-POWERTRAIN LAUNCHED IN Q4 2024 XCURSOR 13-litre elected alternative energy engine of the year • 11-Nov –XCURSOR 13-litre, the first multi-fuel single base engine optimised to run on multiple fuels, won the first alternative engine award, blazing a trail fo
Slide 15: Focus on short-term while building a stronger future
POWERTRAIN FOCUS ON SHORT-TERM WHILE BUILDING A STRONGER FUTURE Thousands of units. 460,6 ENGINES SOLD WORLDWIDE 364,0 • Continued slowdown in demand driven by lower total industry volume and customer ongoing destocking actions, with stronger impact on off- vs on- road FY 2023 FY 2024 • Engines’ vol
Slide 16: Defence
DEFENCE
Slide 17: Q4 2024 main contracts and achievements
DEFENCE Q4 2024 MAIN CONTRACTS AND ACHIEVEMENTS • 11-Nov – Preliminary agreement to supply functional parts for future contracts within the Leonardo and Rheinmetall joint venture. IDV’s participation will be 12 to 15% of the JV total activities for the development and production of tracked combat gr
Slide 18: IVG Board is considering separating the Defence business through a spin-off
DEFENCE IVG BOARD IS CONSIDERING SEPARATING THE DEFENCE BUSINESS DURING 2025 THROUGH A SPIN-OFF • In view of the different trends in the commercial vehicles and defence markets, and the increasingly different requirements for the long-term success of both businesses, the Board of Directors of Iveco
Slide 19: Electric products
Separatore con immagini Electric products
Slide 20: EV portfolio gaining momentum entering into 2025
IVECO GROUP EV PORTFOLIO GAINING MOMENTUM ENTERING INTO 2025 Electric products deliveries worldwide (units) eLCV eBuses(1) eAxles Batteries (3.5-7.49t) > 2,950 > 9,900 > 1,700 > 880 Presented at the end of 2022, first delivery in 2023 FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 F
Slide 21: FY 2024 financials
FY 2024 financials 2024 financial data shown in this presentation refer to Continuing Operations only, unless otherwise stated. In accordance with applicable accounting standards, the figures in the Income Statement and Statement of Cash Flows for 2023 comparative periods have been recast consistent
Slide 22: Continuing solid profitability and net profit uplift, with robust cash flow
FY 2024 FINANCIALS CONTINUING SOLID PROFITABILITY AND NET PROFIT UPLIFT, COUPLED WITH ROBUST CASH FLOW GENERATION Change versus FY 2023 recast for Profit & Loss and Cash Flow items, versus 31 st December 2023 for Balance Sheet items Consolidated Industrial Activities €15.3bn Net Revenues €14.9bn €2.
Slide 23: Net revenues of Industrial Activities in line with guidance
FY 2024 FINANCIALS POSITIVE PERFORMANCE IN BUS AND DEFENCE, WITH NET REVENUES OF INDUSTRIAL ACTIVITIES IN LINE WITH GUIDANCE Split by region and business unit – €mn, unless otherwise stated 13% Change YoY 2% 11% Europe (7)% By region South America +18% 15,640 14,948 74% North America (12)% €14.9bn I
Slide 24: Pricing discipline and cost optimization supporting profitability improvement
FY 2024 FINANCIALS PRICING DISCIPLINE AND CONTINUOUS PRODUCT AND OTHER COSTS OPTIMIZATION SUPPORTING PROFITABILITY IMPROVEMENT Walk by driver – €mn, unless otherwise stated 5.4% 5.7% of which Europe & RoW +€92mn 849 (447) 480 27 (5) (8) (45) 851 INDUSTRIAL INDUSTRIAL FX | OTHER AND ADJUSTED EBIT VOL
Slide 25: Solid profitability across all industrial business units
FY 2024 FINANCIALS SOLID PROFITABILITY ACROSS ALL THE INDUSTRIAL BUSINESS UNITS, DESPITE DIFFERENT MARKET DYNAMICS TRUCK DEFENCE • Adj. EBIT at €556mn, €(62)mn YoY, with positive price realisation and a • Adj. EBIT at €113mn, +€37mn YoY, driven by higher volumes and a better mix reduction in product
Slide 26: Financial Services increasing retail penetration and continuing growth with equity partnerships
FY 2024 FINANCIALS FINANCIAL SERVICES IS INCREASING THE RETAIL PENETRATION AND CONTINUING ITS GROWTH PATH WITH EQUITY PARTNERSHIPS ADJUSTED EBIT EQUITY AND RETURN ON ASSETS(1) (2) 2,5% 2,3% 1,9% 2,1% 2,1% 2,3% 2,3% 2,1% 2,0% 2,0% 2,2% 2,0% Q4 2024 €29mn Q4 2023 €26mn 892 723 752 789 768 778 811 844
Slide 27: Free cash flow of Industrial Activities at the high-end of guidance
FY 2024 FINANCIALS FREE CASH FLOW OF INDUSTRIAL ACTIVITIES AT THE HIGH-END OF THE TARGETED GUIDANCE Walk – 31st December and FY 2024, €mn INDUSTRIAL FREE CASH FLOW: 402 Includes financial charges due to negative ARS devaluation 1,886 1,756 (273) (49) (109) (932) 9 (179) (259) 1,850 CASH OUT FOR CAPI
Slide 28: Robust liquidity position and low-risk debt maturity profile
FY 2024 FINANCIALS ROBUST LIQUIDITY POSITION AND LOW-RISK DEBT MATURITY PROFILE 31st December 2024, €mn AVAILABLE LIQUIDITY 5.474 Undrawn medium-term committed unsecured credit lines Bank debt Commercial Papers €mn 31st December 2024 31st December 2023 (1) 1.900 Cash & marketable securities Cash and
Slide 29: CEO closing remarks
CEO closing remarks Contains confidential proprietary and trade secrets information of Iveco Group. Any use of this work without express written consent is strictly prohibited.
Slide 30: 2025E preliminary industry volume outlook
CEO CLOSING REMARKS 2025E PRELIMINARY INDUSTRY VOLUME OUTLOOK Units, % change versus FY 2024 South Rest of the Europe 27(1) America(2) World(2) European trucks industry in 2025 confirmed as follows: Light Commercial Vehicles (5)%-FLAT ~ +10% (5)%-FLAT LCV at ~670k units ((5)% - flat vs FY 2024) (3.5
Slide 31: 2025E preliminary financial guidance
CEO CLOSING REMARKS 2025E PRELIMINARY FINANCIAL GUIDANCE 2025E preliminary Guidance Group Adjusted EBIT(1) €980 – 1,030mn FLAT Industrial Activities Net Revenues (including currency translation effects) versus FY 2024 Adjusted EBIT(1) €850 – 900mn Free Cash Flow(1) €400 – 450mn (1) This item is a no
Slide 32: Efficiency programme acceleration and investments reprioritization
CEO CLOSING REMARKS EFFICIENCY PROGRAMME ACCELERATION AND INVESTMENTS REPRIORITIZATION Starting from 2025 and continuing in 2026 we will accelerate the implementation of our Efficiency Programme, as well as reprioritize some of our investments, reducing our total operational spending(1) without affe
Slide 33: CEO's takeaway messages
CEO CLOSING REMARKS CEO’S TAKEAWAY MESSAGES FY 2025E preliminary financial guidance is based on current industry outlook and assumes Truck’s first 1 half of the year still low and a recovery in the second half. Order book in both Bus and Defence are solid, and in Powertrain continuous execution on c
Slide 34: Q4 2024 financials
Q4 2024 financials 2024 financial data shown in this presentation refer to Continuing Operations only, unless otherwise stated. In accordance with applicable accounting standards, the figures in the Income Statement and Statement of Cash Flows for 2023 comparative periods have been recast consistent
Slide 35: Q4 2024 industry volume
Q4 2024 FINANCIALS Q4 2024 INDUSTRY VOLUME Units, % change versus Q4 2023 Europe 25(1) South America(1) Rest of the World(1) Worldwide Light Commercial Vehicles +13% +16% +8% +12% (3.5-7.49t) Medium & Heavy trucks (3)% +17% (6)% (2)% (≥ 7.5t) Buses (9)% +31% Not available +10% (1) Source and geograp
Slide 36: Q4 2024 net revenues of Industrial Activities
Q4 2024 FINANCIALS Q4 2024 NET REVENUES OF INDUSTRIAL ACTIVITIES Split by region and business unit – €mn, unless otherwise stated 13% Devaluation of Argentine Change YoY 2% Peso in Q423 12% Europe (13)% By region South America +242% 4,675 4,491 73% North America (8)% INDUST. NET INDUST. NET Rest of
Slide 37: Q4 2024 adjusted EBIT of Industrial Activities
Q4 2024 FINANCIALS Q4 2024 ADJUSTED EBIT OF INDUSTRIAL ACTIVITIES Walk by driver – €mn, unless otherwise stated 5.0% 4.9% of which Europe & RoW +€7mn 236 (221) 117 (49) 18 27 91 219 INDUSTRIAL INDUSTRIAL FX | OTHER AND ADJUSTED EBIT VOLUME AND MIX NET PRICING PRODUCTION COST SG&A R&D ADJUSTED EBIT E
Slide 38: Q4 2024 adjusted EBIT margin by industrial business unit
Q4 2024 FINANCIALS Q4 2024 ADJUSTED EBIT MARGIN BY INDUSTRIAL BUSINESS UNIT TRUCK DEFENCE • Adj. EBIT at €93mn, €(3)mn YoY • Adj. EBIT at €40mn, +€3mn YoY • Adj. EBIT margin at 3.3%, flat YoY • Adj. EBIT margin at 10.8%, 170bps up YoY Q4 2024 3,3% Q4 2024 10,8% Q4 2023 3,3% Q4 2023 9,1% Q4 2022 3,8%
Slide 39: Q4 2024 net cash, working capital and FCF of Industrial Activities
Q4 2024 FINANCIALS Q4 2024 NET CASH, WORKING CAPITAL AND FCF OF INDUSTRIAL ACTIVITIES Walk – 31st December and Q4 2024, €mn INDUSTRIAL FREE CASH FLOW: 1,222 Includes financial charges due to negative ARS devaluation 767 470 (113) 1,156 109 (402) 2 (28) (111) 1,850 CASH OUT FOR CAPITAL INCREASES, NET
Slide 40: Appendix
APPENDIX IVECO*GROUP WE GO BEYOND
Slide 41: Non-EU-IFRS financial measures
APPENDIX NON-EU-IFRS FINANCIAL MEASURES Iveco Group monitors its operations using several non-EU-IFRS financial measures. Iveco Group’s management believes that these non-EU-IFRS financial measures provide useful and relevant information regarding its operating results and enhance the readers’ abili
Slide 42: Geographic information
APPENDIX 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
Slide 43: Q4 2024 versus 2023 order intake, deliveries and book-to-bill
APPENDIX Q4 2024 VERSUS 2023 ORDER INTAKE, DELIVERIES AND BOOK-TO-BILL Excluding Specialty Vehicles (Defence and Fire Fighting). Order intake (#units) Deliveries (#units) Book-to-Bill (x) Q4 2024 Q4 2023 YoY % Q4 2024 Q4 2023 YoY % Q4 2024 Q4 2023 YoY % Trucks 17,675 20,287 (13)% 30,960 39,275 (21)%
Slide 44: FY 2024 versus 2023 order intake, deliveries and book-to-bill
APPENDIX FY 2024 VERSUS 2023 ORDER INTAKE, DELIVERIES AND BOOK-TO-BILL Excluding Specialty Vehicles (Defence and Fire Fighting). Order intake (#units) Deliveries (#units) Book-to-Bill (x) FY 2024 FY 2023 YoY % FY 2024 FY 2023 YoY % FY 2024 FY 2023 YoY % Trucks 68,642 91,539 (25)% 109,757 126,268** (
Slide 45: Summary table
APPENDIX SUMMARY TABLE €mn, otherwise stated Q4 2023 FY 2023 Q4 2024 YoY change FY 2024 YoY change recast recast Truck 2,803 2,931 (4.4)% 9,960 10,617 (6.2)% Bus 988 887 +11.4% 2,561 2,260 +13.3% Defence 371 406 (8.6)% 1,133 984 +15.1% Net Revenues Powertrain 855 1,058 (19.2)% 3,546 4,258 (16.7)% El
Slide 46: Reconciliation table (1/6)
APPENDIX RECONCILIATION TABLE (1/6) EBIT to Adjusted EBIT by business unit in Q4 2024 & Q4 2023 recast, and Powertrain Adjusted EBIT walk by driver – €mn Unallocated items, Industrial Financial Truck Bus Defence Powertrain Eliminations Consolidated eliminations & other Activities Services EBIT 87 58
Slide 47: Reconciliation table (2/6)
APPENDIX RECONCILIATION TABLE (2/6) EBIT to Adjusted EBIT by business unit in FY 2024 & FY 2023 recast, and Powertrain Adjusted EBIT walk by driver – €mn Unallocated items, Industrial Financial Truck Bus Defence Powertrain Eliminations Consolidated eliminations & other Activities Services EBIT 542 1
Slide 48: Reconciliation table (3/6)
APPENDIX RECONCILIATION TABLE (3/6) €mn, unless otherwise stated Q4 2024 Q4 2023 FY 2024 FY 2023 Reported Net profit (loss) from Continuing Operations 98 (22) 394 268 (a) Adjustments impacting Profit (Loss) before income tax (expense) benefit from Continuing Operations 155 37 308 105 (b) Adjustments
Slide 49: Reconciliation table (4/6)
APPENDIX RECONCILIATION TABLE (4/6) €mn Q4 2024 Q4 2023 FY 2024 FY 2023 Loss from the transfer of the Fire Fighting business 30 - 145 - Costs for actions related to EPA/CARB newly-introduced post-sale in field verification program on North American market 96 - 96 - Chinese operations reorganisation
Slide 50: Reconciliation table (5/6)
APPENDIX RECONCILIATION TABLE (5/6) Total (Debt) to Net Cash (Debt) Consolidated Industrial Activities Financial Services €mn 31st December 2024 31st December 2023(6) 31st December 2024 31st December 2023(6) 31st December 2024 31st December 2023 Third party (debt) (6,155) (5,768) (1,584) (1,191) (4,
Slide 51: Reconciliation table (6/6)
APPENDIX RECONCILIATION TABLE (6/6) Industrial Free Cash Flow €mn Q4 2024 Q4 2023 FY 2024 FY 2023 Net cash provided by (used in) Operating Activities from Continuing Operations 1,579 1,594 1,306 1,366 - Cash flows from Operating Activities of Financial Services net of eliminations 43 52 19 51 = Oper
Slide 52: Investor Relations contacts
Investor Relations contacts E-mail: investor.relations@ivecogroup.com Website: www.ivecogroup.com/investors/contacts Contains confidential proprietary and trade secrets information of Iveco Group. Any use of this work without express written consent is strictly prohibited.
Slide 53: Thank you
THANK YOU IVECO*GROUP WE GO BEYOND