Iveco Group Nv · MIL:IVG
Iveco Group Nv — Q1 2023 Earnings Presentation
33 slides from Iveco Group Nv's earnings presentation, May 11, 2023
Slide 1: Q1 2023 results
Q1 2023 results Turin, Italy – 11th May 2023
Slide 2: Forward-looking statements
FORWARD-LOOKING STATEMENTS 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 (or loss) per
Slide 3: CEO Executive Summary
CEO EXECUTIVE SUMMARY • Profitability improvements across all segments with positive pricing more than offsetting energy and production costs. Heavy trucks EBIT positive on a stand-alone basis • Consolidated Net Revenues up 11.5% vs Q1 2022 and Adjusted EBIT(1) margin at 4.8% despite significant sup
Slide 4: Main achievements
MAIN ACHIEVEMENTS January February March 3Y-agreement to supply up to 150 E-WAY IVECO BUS wins public tender for 120 Intent to transfer Nordic retail commercial full electric city buses to Busitalia (Ferrovie dello E-WAY electric buses in Italy operations to Hedin Mobility Group Stato Italiane) in I
Slide 5: Subsequent events
SUBSEQUENT EVENTS 17th April 12th April IVECO BUS wins major IVECO BUS will support local tender from Prague Public public transport in Italy with Transit Company for up to more than 1,000 new buses 140 URBANWAY articulated through Consip hybrid buses 14th April 18th April IVG publishes its first In
Slide 6: Nikola-Iveco European Joint Venture: Update
NIKOLA-IVECO EUROPEAN JOINT VENTURE: UPDATE Iveco Group bought Nikola’s 50% ownership in the Europe JV Before After NIKOLA IVECO IVECO E-HDT EUROPE GMBH EUROPE GMBH 50% Nikola 50% Iveco Group 100% Iveco Group • License of Nikola Tre • License of IVECO S-Way • Complete vehicle proprietary technology
Slide 7: First Sustainability Report
FIRST SUSTAINABILITY REPORT Available on the Company’s website, the 2022 Sustainability Report is prepared in accordance with the GRI Standards and includes correspondence tables for the main international standards: Sustainability Accounting Standards Board (SASB) World Economic Forum (WEF) Taskfor
Slide 8: Q1 2023 Industry Volume
Q1 2023 INDUSTRY VOLUME Units (% change vs. Q1 2022) Europe (1) South America (2) Rest of the World (3) Worldwide Light Commercial Vehicles +8% (6)% (6)% +4% (3.5-7.49t) Medium & Heavy trucks +20% +1% +5% +11% (≥ 7.5t) Buses +11% +54% +7% +17% (1) The 27 EU countries where Commercial Vehicles compet
Slide 9: Channel Inventory by Quarter
CHANNEL INVENTORY BY QUARTER Units LCV M&H (3.5-7.49t) (≥ 7.5t) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 ‘23 2019 2020 2021 2022 ‘23 Iveco Group's inventory Third party dealer inventory Retails Production Company Invent
Slide 10: Order Intake and Deliveries
ORDER INTAKE AND DELIVERIES Units LCV M&H Buses (3.5-7.49t) (≥ 7.5t) 1.05 1.31 1.40 0.91 0.98 1.30 Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Book-to-Bill Order intake remained solid, abo
Slide 11: Market Share in Europe by Quarter
MARKET SHARE IN EUROPE BY QUARTER Preliminary registration units (excluding United Kingdom and Ireland) LCV M&H (3.5-7.49t) (≥ 7.5t) 21% 70% 58,9% 18% 60% 15% 50% 43,6% 12% 40% 30,9% 8,5% 9% 30% 13,9% 6% 7,7% 20% 3% 10% 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 12: Q1 2023 financials
Q1 2023 financials Contains confidential proprietary and trade secrets information of Iveco Group. Any use of this work without express written consent is strictly prohibited.
Slide 13: Financial Summary
FINANCIAL SUMMARY (change vs. Q1 2022 for P&L and CF items, vs. 31st December 2022 for BS items) Consolidated Industrial €3.4bn Net Revenues €3.3bn €0.21 Adjusted diluted EPS(1) +11.5% +10.6% +€0.06 €162mn Adjusted EBIT(1) €134mn €(593)mn Industrial Free Cash Flow(1) +€60mn +€52mn €(427)mn 4.8% Adju
Slide 14: Industrial Net Revenues
INDUSTRIAL NET REVENUES Split by region and segment, and walk – Q1 2023, €mn 13% 2% % Chg. YoY 11% Europe +13% By region South America +14% North America +14% 74% Rest of the World (7)% €3.3bn +10.6% YoY 28% % Chg. YoY 3,010 3,328 Trucks +11% By segment 56% NET NET 6% Buses +14% REVENUES VOLUME AND
Slide 15: Industrial Adjusted EBIT
INDUSTRIAL ADJUSTED EBIT Walk by segment & driver – Q1 2023, €mn 4.0% 2.7% 82 30 256 (128) (24) (17) (66) 2 134 ADJUSTED EBIT PRODUCTION OTHER AND ADJUSTED EBIT VOLUME AND MIX NET PRICING SG&A R&D FX | OTHER Q1 2022 COST(1) ELIMINATIONS Q1 2023 Segments View C&SV 93 21 256 (133) (23) (14) (73) 127 P
Slide 16: Financial Services
FINANCIAL SERVICES Q1 2023 vs. Q1 2022 – €mn Adjusted EBIT Equity(1) and Return on Assets(2) 800 2,5% 2,3% 3,0% 2,1% 2,1% 1,7% 1,7% 1,9% 1,8% 1,9% 750 2,0% Q1 2023 28 789 768 778 700 743 740 752 1,0% 724 725 723 650 0,0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 2022 20 2021 2022 ‘23 Equity RoA Managed portfoli
Slide 17: Industrial Net Cash, Working Capital and FCF
INDUSTRIAL NET CASH, WORKING CAPITAL AND FCF Walk and dynamics – Q1 2023, €mn Industrial FCF €(593)mn 1,727 328 (28) (546) (212) (147) 12 - (31) 1,103 IND. NET CASH IA ADJUSTED CASH FOR INTEREST Δ IN WORKING Δ IN PROVISIONS PP&E CAPEX(2) AND DIVIDENDS & IND. NET CASH OTHER CHANGES FX & OTHER 31-Dec-
Slide 18: Debt Maturity Profile and Available Liquidity
DEBT MATURITY PROFILE AND AVAILABLE LIQUIDITY €mn Available Liquidity 3.980 Cash & marketable securities (1) Undrawn medium-term committed unsecured credit lines Capital market Bank debt 2.051 Cash and cash equivalents(2) 1,879 Undrawn committed facilities 2,051 Total cash maturities Other current f
Slide 19: 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 20: 2023E Preliminary Industry Volume Outlook
2023E PRELIMINARY INDUSTRY VOLUME OUTLOOK Units (% change vs. FY 2022) Europe (1) South America (2) Rest of the World (3) Worldwide Light Commercial Vehicles +15% ~ (15)% +5% +5-10% (3.5-7.49t) Medium & Heavy trucks +0-5% ~ (20)% +0-5% (5)% - Flat (≥ 7.5t) Buses +10% (15)-(10)% +5-10% ~ +5% (1) The
Slide 21: 2023E Preliminary Financial Guidance
2023E PRELIMINARY FINANCIAL GUIDANCE IFRS Previous New 2023 Outlook 2023 Guidance Group Adjusted EBIT(2) €550-590mn €600-640mn Net Revenues +2-3% +3-5% (including currency translation effects) vs. FY 2022 vs. FY 2022 Industrial Activities Adjusted EBIT(2) €460-500mn €510-550mn SG&A ~ 6.0% ~ 6.0% ove
Slide 22: CEO Takeaway Messages
CEO TAKEAWAY MESSAGES Our financial guidance are based on current visibility. Industry dynamics in 2H 2023 still potentially impacted by as yet unclear macro developments as well as supply chain issues. Transactions already announced included in the updated targets Our profitability path is continui
Slide 23: Appendix
Appendix Contains confidential proprietary and trade secrets information of Iveco Group. Any use of this work without express written consent is strictly prohibited.
Slide 24: Reconciliation Table (1/6)
RECONCILIATION TABLE (1/6) EBIT to Adjusted EBIT by segment of Q1 2023 & Q1 2022 – €mn Unallocated items, Total Commercial and Powertrain eliminations and Industrial Financial Services Eliminations Total Q1 2023 Specialty Vehicles other Activities EBIT 125 61 (113) 73 35 - 108 Adjustments: Restructu
Slide 25: Reconciliation Table (2/6)
RECONCILIATION TABLE (2/6) Adjusted net profit (loss) and Adjusted income tax (expense) benefit to Consolidated Profit (Loss) and Income tax (expense) benefit and calculation of Adjusted diluted EPS and Adjusted ETR €mn Q1 2023 Q1 2022 Profit (Loss) 10 (15) (a) Adjustments impacting Profit (loss) be
Slide 26: Reconciliation Table (3/6)
RECONCILIATION TABLE (3/6) €mn Q1 2023 Q1 2022 Restructuring costs 2 1 Spin-off costs 2 4 Agreed acquisition of full ownership of Nikola Iveco Europe GmbH 43 - Costs related to certain claims arising from the EU Commission’s 2016 antitrust settlement 7 - Russia and Ukraine – impairment of certain as
Slide 27: Reconciliation Table (4/6)
RECONCILIATION TABLE (4/6) Total (Debt) to Net Cash (Debt) – 31st March 2023 & 31st December 2022 Consolidated Industrial Activities Financial Services €mn 31st March 2023 31st December 2022 31st March 2023 31st December 2022 31st March 2023 31st December 2022 Third party (debt) (4,061) (4,156) (726
Slide 28: Reconciliation Table (5/6)
RECONCILIATION TABLE (5/6) Cash and cash equivalents to Available Liquidity – From 31st December 2021 to 31st March 2023 €mn 31st March 2023 31st December 2022 (1) Cash and cash equivalents 1,879 2,288 Undrawn committed facilities 2,051 2,000 Other current financial assets(2) 20 26 Financial receiva
Slide 29: Reconciliation Table (6/6)
RECONCILIATION TABLE (6/6) Industrial Free Cash Flow €mn Q1 2023 Q1 2022 Net cash provided by (used in) Operating Activities (504) (101) - Cash flows from Operating Activities of Financial Services net of eliminations 46 37 = Operating cash flow of Industrial Activities (458) (64) - Investments in p
Slide 30: Book-to-Bill
BOOK-TO-BILL Book-to-Bill Order intake Deliveries Q1 2023 Q1 2022 YoY % Q1 2023 Q1 2022 YoY % Q1 2023 Q1 2022 YoY % Trucks 1.13 1.17 (4)% 26,451 30,893 (14)% 23,494 26,408 (11)% LCV 1.23 1.08 +13% 19,545 22,891 (15)% 15,912 21,103 (25)% Europe M&H 0.91 1.51 (40)% 6,906 8,002 (14)% 7,582 5,305 +43% B
Slide 31: 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 32: 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 33: IR contacts
IR contacts Federico Donati, Head of Investor Relations Luis Cordova, Investor Relations Claudia Zolin, Investor Relations Specialist Enza Marsala, Investor Relations Assistant E-mail: investor.relations@ivecogroup.com Website: www.ivecogroup.com/investors/contacts Contains confidential proprietary