Iveco Group Nv · MIL:IVG
Iveco Group Nv — Investor Day (March 2024)
13 slides from Iveco Group Nv's investor day presentation, Mar 14, 2024
Slide 1: Capital Markets Day 14 March 2024
IVECO*GROUP CAPITAL MARKETS DAY —14'" MARCH 2024
Slide 2: Cautionary Statement
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, capital expendit
Slide 3: Financial Services: Unlimited Pathways
FINANCIAL SERVICES FINANCIAL SERVICES UNLIMITED PATHWAYS 60
Slide 4: Who We Are: Financial Services
WHO WE ARE FINANCIAL SERVICES Mobility enablers with a unique business model and a solid track record €6.9bn1 AVERAGE MANAGED PORTFOLIO PAY-PER-USE (additional ~€5bn CNH portfolio) FINTECH START-UP for green mobility WHOLESALE (~55%) On book RETAIL (~45%) Off book2 Tailored Financing Full credit cyc
Slide 5: Market Trends: Increasing need for services and unique business models
MARKET TRENDS FINANCIAL SERVICES Increasing need for services and unique business models to win in a volatile market VOLATILE MARKET SERVITIZATION NEW BUSINESS ENVIRONMENT MODELS Unstable macroeconomic conditions with Customer preference shifting from traditional Growth of bundled fee-based service
Slide 6: Key Achievements: Built a resilient and profitable foundation
KEY ACHIEVEMENTS FINANCIAL SERVICES CAPITAL STRUCTURE Secured funding with ~80% of committed lines, including retail partners PORTFOLIO QUALITY Reduced past due to ~2%, constantly improving Built a resilient and REMUNERATION Optimal SG&A with through-the-cycle Return on Assets consistently at ~2% pr
Slide 7: Strategic Priorities: Scale-up GATE and grow service offering
STRATEGIC PRIORITIES FINANCIAL SERVICES Scale-up GATE and grow service offering on a lean cost structure RESILIENT MOBILITY SERVICE GATE STRUCTURE COST PLATFORM SCALE-UP Serve Iveco Group brands, dealers and end- Grow service business through existing and new Expand GATE as a brand-agnostic platform
Slide 8: Focus on GATE: Full service rental ecosystem
FOCUS ON GATE FINANCIAL SERVICES Drive the green transition with a full service rental ecosystem Green LCV and HDT equipment only (EV, H2 and Bio LNG/CNG) Today 2024 2026 2028 Flexible pay-per-use package 2025 2027 offering to cater to all customers' needs First telematic-powered customised price en
Slide 9: Ambition: Transform into a mobility service platform
AMBITION FINANCIAL SERVICES Transform into a mobility service platform, preserving optimal remuneration CAGR 2023A-2028E Iveco Group average managed portfolio (excluding CNH) (€bn) 2022A-2028E >5% 8-9 6.9 7-8 On book 5.7 Off book 2022A 2023A 2026E 2028E Invested Equity (€bn) 2022A-2028E 0.8 0.8 ~1.0
Slide 10: Ambition: Key Contributors
AMBITION FINANCIAL SERVICES Mitigation of cost of risk, given possible credit deterioration Contained SG&A level at ~1%1 per year, leveraging also analytics and digital tools ~7pp retail penetration increase, with key partners securing funding Key Contributors Geographic expansion of service card an
Slide 11: Main Takeaways: Pioneer new services with a solid capital foundation
MAIN TAKEAWAYS FINANCIAL SERVICES Pioneer new services with a solid Capital foundation 1 2 3 Maintain optimal funding and costs to properly remunerate allocated capital Grow new services to evolve towards a fee-based mobility service platform Scale-up GATE ZEV platform to support Europe's industry e
Slide 12: Non-EU-IFRS Financial Measures
NON-EU-IFRS FINANCIAL MEASURES Iveco Group monitors its operations through the use of 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’ a
Slide 13: 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