Iveco Group Nv · MIL:IVG
Iveco Group Nv — Investor Day (March 2024)
83 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: Agenda
AGENDA Welcome FEDERICO DONATI, Head of Investor Relations SUZANNE HEYWOOD, Executive Chair Opening Remarks GERRIT MARX, CEO Group Pathway GERRIT MARX, CEO Powertrain Pathway 13:30-15:15 SYLVAIN BLAISE, President Powertrain Bus Pathway DOMENICO NUCERA, President Bus Defence Pathway CLAUDIO CATALANO,
Slide 4: Product Portfolio
OPENING REMARKS Progress since Investor Day 2021 Product Portfolio Completely renewed Model Year ’24 range Electric Daily, including fuel cell version Electric City and Intercity bus line-up Multi-energy S-Way heavy-duty truck 3
Slide 5: Partnerships
OPENING REMARKS Progress since Investor Day 2021 Partnerships Chassis-cab with Hyundai Motor Company Autonomous trucks with PLUS On-board AI vocal companion with AWS On-time delivery of Amphibious Vehicles with BAE Systems 4
Slide 6: Future Power Technology
OPENING REMARKS Progress since Investor Day 2021 Future Power Technology ePowertrain plant in Turin eDriveline full-liner portfolio New multi-fuel Cursor launch ICE consolidator, including new fuels 5
Slide 7: Life Cycle Services
OPENING REMARKS Progress since Investor Day 2021 Life Cycle Services GATE pay-per-use ZEV rental options Driver & fleet-centric digital services Mobility card & digital payment hub Component recycling, including batteries 6
Slide 8: Sustainability
OPENING REMARKS Progress since Investor Day 2021 Sustainability Carbon footprint Workplace and product safety Life cycle thinking Inclusion and engagement 7
Slide 9: Solid Delivery
OPENING REMARKS Progress since Investor Day 2021 Solid Delivery Consistent financial results Real transformation Lean central functions 8
Slide 10: Progress since Investor Day 2021
OPENING REMARKS Progress since Investor Day 2021 Product Portfolio Partnerships Future Power Technology Life Cycle Services Sustainability Solid Delivery 9
Slide 11: Achieved strong results ahead of 2021 Investor Day plan
NUMBERS INCLUDE MAGIRUS OPENING REMARKS Achieved strong results ahead of 2021 Investor Day plan Net Revenues of Industrial Activities Adj. Ebit Margin of Industrial Activities (€bn) 2023A-2026E (%) 2023A-2026E 15.9 ~17 ~15 5.2% ~5-6% ~4-5% D ay Plan Day Plan s tor s tor Inve Inve 2021 2021 2023A 202
Slide 12: On-time delivery of transformational projects
OPENING REMARKS On-time delivery of transformational projects 2022 2022 2022 2022 2023 2023 2023 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Electrification New F28 Zero-emission Turin Battery and XC13 multi-fuel eAxles for Maserati with Microvast off-road engine portfolio and ePowertrain ePropulsion unveil XC13 u
Slide 13: Responding to global trends
OPENING REMARKS Responding to global trends CLIMATE CHANGE GEOPOLITICS MACROECONOMICS REGULATIONS Cut 50% of Scope 1 & 2 Focus on our supply chain's Diversify funding and Invest €5.5bn and 38% of Scope 3 resilience to disruptions, optimise cash management for an innovative, of Group CO2 emissions ma
Slide 14: One cohesive team delivering on our promises
OPENING REMARKS Expectations for today PROGRESS Deep insight on 2021 Investor Day commitments ACCELERATION Updated Adjusted EBIT guidance and financial ambition One cohesive team delivering on our promises VISIBILITY First-time disclosure of performance by Business Unit ACCOUNTABILITY Detailed view
Slide 15: 2023 results by Business Unit
NUMBERS EXCLUDE MAGIRUS GROUP PATHWAY 2023 results by Business Unit Consolidated Revenues: €16.0bn Group Adj. EBIT: 6.1% POWERTRAIN BUS DEFENCE TRUCK FINANCIAL SERVICES Net Revenues: €4.3bn Net Revenues: €2.3bn Net Revenues: €1.0bn Net Revenues: €10.6bn Portfolio: €6.9bn Adj. EBIT: 5.9% Adj. EBIT: 4
Slide 16: Synergies across the Group
GROUP PATHWAY Synergies across the Group Technological Operational Shared vehicle platforms Joint talent pool Multi-Energy pathway to Zero-Emissions Procurement and manufacturing efficiency Hardware to Software transition Optimised cash management with Financial Services Vertical integration with Po
Slide 17: United by shared values
GROUP PATHWAY United by shared values 16
Slide 18: One passionate and united team
GROUP PATHWAY One passionate and united team ON STAGE TODAY GERRIT MARX CEO BUSINESS UNITS SYLVAIN DOMENICO CLAUDIO LUCA SIMONE THOMAS BLAISE NUCERA CATALANO SRA OLIVATI HILSE POWERTRAIN BUS DEFENCE TRUCK FINANCIAL FIRE FIGHTING SERVICES SUPPORT & INDUSTRIAL FUNCTIONS ANNA MARCO ANGEL R. ANGELA FRAN
Slide 19: Empowering unlimited pathways for each Business Unit by 2028
GROUP PATHWAY Empowering unlimited pathways for each Business Unit by 2028 POWERTRAIN BUS DEFENCE TRUCK FINANCIAL SERVICES Reach double-digit Lead European people Continue to innovate Maintain lead in LCV, Pioneer new margins and advance transport industry and on a solid advance MHDT margins service
Slide 20: Accelerating into the future: four strategic pillars
GROUP PATHWAY Accelerating into the future TECHNOLOGICAL FINANCIAL STRATEGIC SUSTAINABILITY INNOVATION DISCIPLINE PARTNERSHIPS LEADERSHIP FOUR STRATEGIC PILLARS 19
Slide 21: Our innovation journey
GROUP PATHWAY Our innovation journey ENERGY TRANSITION AI & SOFTWARE DEFINED VEHICLES AUTONOMOUS DRIVING Net zero carbon by 2040 500k+ connected vehicles by 2030 Beyond Level 2+ technologies Multi-propulsion approach for green >140k vehicles and >250k engines PlusDrive system on-board mobility (bio-
Slide 22: Extending DRIVE programme
NUMBERS EXCLUDE MAGIRUS GROUP PATHWAY Extending DRIVE programme Adj. Ebit Margin of Industrial Activities €1bn from renewed DRIVE programme (€bn, %) 2019A-2028E €0.4bn €0.6bn €0.6bn Volume & mix 5.4% Price €0.3bn 3.8% 2019A Operations, Volume, mix, R&D, 2023A Run-rate R&D, 2026E Run-rate R&D, 2028E
Slide 23: Partnering the 'Iveco Group Way'
GROUP PATHWAY Partnering the ‘Iveco Group Way’ 22
Slide 24: Accelerating progress by working with partners
GROUP PATHWAY Accelerating progress by working with partners Product technology, investments & know-how Partnership agreement to co-develop Amphibious Vehicles for U.S. Marine Corps New markets & business models Distribution agreement for electric chassis-cab and Light Professional Vehicle Joint exp
Slide 25: Our sustainability journey
GROUP PATHWAY Our sustainability journey Monitored KPIs Year End 2023 vs. 2021 Investor Day Targets Scope 1 & 2 absolute CO2 emissions in our plants (vs 2019) -20% -50% by 2030 Scope 3 CO2 emissions from use of sold vehicles per vehicle/km1 (vs 20222) -6% -38% by 2030 CARBON FOOTPRINT Absolute CO2 e
Slide 26: Setting more ambitious sustainability targets
GROUP PATHWAY Setting more ambitious sustainability targets CARBON FOOTPRINT WORKPLACE AND LIFE CYCLE THINKING INCLUSION AND ENGAGEMENT PRODUCT SAFETY Net Zero Carbon 30% by 2040 of office positions held by female office workers by 2028 100% 75% of total electricity consumption from Activities proce
Slide 27: Key financial targets for 2028
NUMBERS EXCLUDE MAGIRUS GROUP PATHWAY NET REVENUES GROWTH UP TO 5% CAGR 2023-2028 INDUSTRIAL ACTIVITIES PROFITABILITY EXPANSION UP TO 3pp ADJ. EBIT MARGIN 2028 VS 2023 Key financial targets INDUSTRIAL FREE CASH FLOW >2X 2028 VS 2023 for 2028 IVECO GROUP EARNINGS PER SHARE >2X ADJ. DILUTED EPS 2028 V
Slide 28: Powertrain
POWERTRAIN POWERTRAIN UNLIMITED PATHWAYS 27
Slide 29: Who we are: Powertrain
WHO WE ARE POWERTRAIN One of the top-3 independent engine manufactures in the world INTERNAL COMBUSTION ENGINES ePOWERTRAINS >450k units/year sold ON-ROAD OFF-ROAD POWER GEN & MARINE eDRIVELINE ENERGY STORAGE ~50% ~40% ~10% > 50K > 1.3 GWh of ICE Net Revenues of ICE Net Revenues of ICE Net Revenues
Slide 30: ICE still predominant as alternative fuels and electrification grow
MARKET TRENDS POWERTRAIN ICE still predominant as alternative fuels and electrification grow ICE MARKET ALTERNATIVE FUELS SERVITIZATION CONSOLIDATION & ELECTRIFICATION ICE still predominant over next decade: Electric Vehicles growing: Shifting profit pools with new use-cases Diesel >70% on-road engi
Slide 31: Commercial success and multi-energy technology advancement
KEY ACHIEVEMENTS POWERTRAIN RENEWED PORTFOLIO Recently launched multi-fuel light and heavy ICE ALTERNATIVE FUELS First multi-fuel single-base Cursor engine: diesel, natural gas, hydrogen and renewable fuels Commercial success ePOWERTRAIN Best-in-class performance covering full line-up of commercial
Slide 32: Improve ICE profitability, grow Parts & Customer Service and ePowertrain
STRATEGIC PRIORITIES POWERTRAIN Improve ICE profitability, grow Parts & Customer Service and ePowertrain ICE OPERATIONAL PARTS & CUSTOMER ePOWERTRAIN EXCELLENCE SERVICE SCALE-UP GROWTH Unlock manufacturing, engineering and Expand Parts & Customer Service business Consolidate leading position, tappin
Slide 33: Transition to mass-production & regional expansion
FOCUS ON ePOWERTRAIN POWERTRAIN Transition to mass-production & regional expansion Up to 2023 2024 to 2028 2028+ ePowertrain next gen First Full eAxle range TECHNOLOGY for sustainable customer ePowertrain portfolio development TCO and performance BUSINESS Pilots and Customer, geography and Target ne
Slide 34: Achieve double-digit Adj. EBIT margin
AMBITION POWERTRAIN Achieve double-digit Adj. EBIT margin Net Revenues CAGR (€bn) 2022A-2028E 2023A-2028E +6% 5.0-5.5 5.5-6.0 4.0 4.3 2022A 2023A 2026E 2028E Adj. EBIT Margin (%) 2022A-2028E 4.7% 5.9% 8.5-9.5% 9.5-10.5% Key Contributors Existing contracts account Focus on high margin ICE, ePowertrai
Slide 35: Reach double-digit margins and advance the energy transition
MAIN TAKEAWAYS POWERTRAIN Reach double-digit margins and advance the energy transition 1 2 3 Increase ICE profitability by executing Operational Excellence programme Scale-up Parts & Customer Service by strengthening network and extending Build leading ePowertrain to accompany end-customers on their
Slide 36: Bus
BUS BUS UNLIMITED PATHWAYS 35
Slide 37: Who we are: Bus
WHO WE ARE BUS Global player and co-leader in Europe with robust profitability INTERCITY CITY BUS MINIBUS COACH ~ 50 % of Net Revenues ~30 of Net Revenues % ~ 15 of Net Revenues % ~ 5 % of Net Revenues ~200K > 1.5K ELECTRIC BUSES SOLD > 5.5K EMPLOYEES BUSES RUNNING WORLDWIDE PRODUCTION PRESENCE 2 CO
Slide 38: Energy transition is reshaping market dynamics
MARKET TRENDS BUS Energy transition is reshaping market dynamics DECARBONISATION NEW BUSINESS WIDER COMPETITIVE MODELS ARENA City bus in Europe decarbonised at Shifting mobility demand with new municipality New players from emerging countries 90% by 2030 and 100% by 2035 needs and untapped profit po
Slide 39: Expanded offering and geographical reach
KEY ACHIEVEMENTS BUS COMPLETE MULTI-ENERGY OFFERING BEV, FCEV, CNG, Diesel and bio-fuel line-up, including hybrid solutions SOLID AND INCREASING ORDER BOOK ~1.1x order book to net revenues ratio, with revenue coverage >12 months >1,500 zero-emission buses in order book at end of 2023 Expanded offeri
Slide 40: Replicate Intercity success in City Buses and accelerate growth outside Europe
STRATEGIC PRIORITIES BUS Replicate Intercity success in City Buses and accelerate growth outside Europe REINFORCE INTERCITY REPLICATE SUCCESS GEOGRAPHICAL LEADERSHIP ON CITY BUS EXPANSION Build on current range's strengths in Europe while Invest in new, TCO-driven, e-born vehicle Step-up profitable
Slide 41: A clear transformative roadmap for urban electromobility
FOCUS ON CITY BUS BUS A clear transformative roadmap for urban electromobility LEADER IN: ELECTRIC BUSES COSTS SERVECES PORTFOLIO ELECTRIC VEHICLE E-BORN VEHICLE OPERATIONAL ELECTROMOBILITY ELECTRIFICATION ORDER BOOK ARCHITECTURE EXCELLENCE SOLUTIONS >€ 100mn ~ 4x ~ € 300mn ~25% ~ €100mn invested si
Slide 42: Increase scale of business and optimise operations for higher profitability
AMBITION BUS Increase scale of business and optimise operations for higher profitability CAGR Net Revenues 2023A-2028E (€bn) 2022A-2028E +8% 3.0-3.5 2.8-3.3 2.3 1.9 2022A 2023A 2026E 2028E Adj. EBIT Margin 4.2% 4.8% 6-7% 7-8% (%) 2022A-2028E Key Contributors Sustain investments in Improve commercial
Slide 43: Lead European people transport industry and expand profitability
MAIN TAKEAWAYS BUS Lead European people transport industry and expand profitability 1 2 3 Reinforce Intercity leadership through a multi-energy strategy Replicate Intercity success in City bus building on zero-emission and Expand geographical reach beyond core European markets + Evaluate potential i
Slide 44: Defence
POWERTRAIN DEFENCE UNLIMITED PATHWAYS 43
Slide 45: Who we are: Defence
WHO WE ARE DEFENCE Experts in innovative technologies for mobility, survivability and protection LAND DEFENCE & CIVIL AMPHIBIOUS ARMOURED VEHICLES TRUCKS ARMOURED VEHICLES UNCREWED MULTIROLE DEFENCE GROUND VEHICLES VEHICLES PROPULSION SYSTEMS > 1.8K EMPLOYEES 250 R&D ENGINEERS 9 COMMERCIAL OFFICES 3
Slide 46: Technology, collaboration and supply chain readiness are critical
MARKET TRENDS DEFENCE Technology, collaboration and supply chain readiness are critical to meet customer demand ADVANCED COLLABORATION SUPPLY CHAIN TECHNOLOGIES READINESS Technology advancement enables increased Complex programmes require multinational consortia Conflicts and geopolitical tensions o
Slide 47: Structured to deliver an outstanding order book and sustain growth
KEY ACHIEVEMENTS DEFENCE COMMERCIAL GROWTH Order book 8x bigger in 2023 vs 2018, net revenues growth at 14% CAGR 2018-2023 PRODUCT MIX IMPROVEMENT High profit armoured and multirole segments accounting for ~40% of order book in 2023 vs ~20% in 2018 EXPANDED GLOBAL REACH Structured to deliver an Ente
Slide 48: Advance technologies, enter new markets and efficiently deliver order book
STRATEGIC PRIORITIES DEFENCE Advance technologies, enter new markets and efficiently deliver order book TECHNOLOGICAL INTERNATIONAL ORDER BOOK EDGE STRATEGY EXECUTION Continue to lead in protection and mobility Enter new geographies through partnerships, Deliver orders and service profitably with mi
Slide 49: Solid foundation for future growth
FOCUS ON ORDER BOOK DEFENCE Solid foundation for future growth Order Book (€bn) 2018A-2023A >4 2.4 2.0 1.3 1.1 0.5 2018A 2019A 2020A 2021A 2022A 2023A CLEAR PATHWAY AHEAD WITH >60% OF CUMULATIVE 2024-2028 NET REVENUES COVERED BY ORDERS AND AWARDED PROGRAMMES 48
Slide 50: Increase profitability with efficient delivery of an optimised order portfolio
AMBITION DEFENCE Increase profitability with efficient delivery of an optimised order portfolio Net Revenues CAGR 2023A-2028E (€bn) 2022A-2028E +4% 1.1-1.2 1.2-1.3 1.0 0.8 2022A 2023A 2026E 2028E Adj. EBIT Margin (%) 2022A-2028E 7.7% 7.7% 11-12% 12-13% Key Contributors >60% of 2024-2028 Increased re
Slide 51: Continue to innovate on a solid growth path
MAIN TAKEAWAYS DEFENCE Continue to innovate on a solid growth path 1 2 3 Deliver an outstanding order book to continue growth Expand internationally focusing on higher-profit segments Continue to invest & develop advanced technologies + Strengthen ecosystem to enter new geographies and introduce add
Slide 52: Truck
TRUCK TRUCK UNLIMITED PATHWAYS 51
Slide 53: Who we are: Truck
WHO WE ARE TRUCK Leading professional player with full multi-fuel line-up across ranges LIGHT COMMERCIAL VEHICLES MEDIUM-DUTY HEAVY-DUTY ~45% ~15% ~40% of Net Revenues of Net Revenues of Net Revenues Includes EVCO, former Nikola-IVECO-Europe JV >250 people of which 150 in R&D >€300mn invested > 16 K
Slide 54: Technology is changing the driver experience
MARKET TRENDS TRUCK Technology is changing the driver experience ENERGY SOFTWARE DEFINED AUTONOMOUS TRANSITION VEHICLES DRIVING Shift towards alternative propulsion, resulting in Moving profit pools from hardware to software, with Rising adoption of autonomous driving 35-40% expected ZEV penetration
Slide 55: Consistent acceleration with a strong professional DNA
KEY ACHIEVEMENTS TRUCK FAST-PACED GROWTH 10% Net Revenues CAGR 2019-2023, with ~500 bps Adj. EBIT margin increase MODEL YEAR ‘24 FULL-RANGE Multi-tech, superior on-board experience, top-tier TCO, connectivity and safety features Consistent acceleration with a strong professional DNA LEADERSHIP IN LC
Slide 56: Expand Light, Medium and Heavy truck competitiveness
STRATEGIC PRIORITIES TRUCK Expand Light, Medium and Heavy truck competitiveness OPERATIONAL PROFESSIONAL LCV MHDT FULL EXCELLENCE LEADERSHIP POTENTIAL Reduce costs through commercial levers, Expand LCV line-up with MY27 and new EV light Enhance competitiveness through ZEV lineup design-to-value and
Slide 57: New missions and technology to confirm professional DNA
FOCUS ON LCV TRUCK New missions and technology to confirm professional DNA PORTFOLIO EXPANSION ALTERNATIVE PROPULSION 2.5-3.5t EV chassis-cab developed by New EV launches, pioneering H2 solutions Hyundai, bringing professional Daily for mid-haul missions with faster charging DNA to a new segment, al
Slide 58: Upscale portfolio, fostering product synergies and partnerships
FOCUS ON MHDT TRUCK Upscale portfolio, fostering product synergies and partnerships MODEL YEAR ‘24 NEW HEAVY-DUTY TRUCK CABIN Top-tier TCO with custom fuel advice, New cabin co-developed up to 10% efficiency and new with Ford Otosan1 to enhance ergonomics for enhanced comfort competitiveness EVCO SC
Slide 59: Enhance profitability to sustain performance in a dynamic environment
AMBITION TRUCK Enhance profitability to sustain performance in a dynamic environment Net Revenues CAGR (€bn) 2022A-2028E 2023A-2028E +1% 10.6 11-11.5 10-10.5 9.5 2022A 2023A 2026E 2028E Adj. EBIT Margin (%) 2022A-2028E 3.3% 5.8% 5.5-6.5% 6.5-7.5% Key Contributors Consolidate market share Sustain pro
Slide 60: Maintain lead in LCV, advance MHDT margins
MAIN TAKEAWAYS TRUCK Maintain lead in LCV, advance MHDT margins 1 2 3 Confirm professional LCV leadership, including light chassis-cab developed by Elevate HDT with ZEV line-up and new cabin developed with Preserve profitability with procurement, design-to-value and + Further explore Partner network
Slide 61: Financial Services
FINANCIAL SERVICES FINANCIAL SERVICES UNLIMITED PATHWAYS 60
Slide 62: 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 63: 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 64: 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 65: Scale-up GATE and grow service offering on a lean cost structure
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 66: Drive the green transition with a 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 67: 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 68: 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 69: 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 70: Finance
FINANCE 69
Slide 71: Laser-focused priorities underpin our ambition for financial excellence
FINANCIAL EXCELLENCE FINANCE Laser-focused priorities underpin our ambition for financial excellence ROBUST DISCIPLINED AND SOUND AND ENDURING PROFITABILITY UPLIFT RESILIENT FLEXIBLE CAPITAL VALUE TO IN ALL BUSINESSES INVESTMENTS STRUCTURE SHAREHOLDERS Relentless focus on Operational Create long-ter
Slide 72: Ambitious yet solid financial pathway safeguarded by proven track record
NUMBERS EXCLUDE MAGIRUS TRACK RECORD AND FUTURE PATHWAY FINANCE Ambitious yet solid financial pathway safeguarded by proven track record Net Revenues & Adj. EBIT margin of Industrial activities ALL INDUSTRIAL BUSINESSES CONTRIBUTING (€bn, %) 2022A-2028E TO 2028 PROFITABILITY UPLIFT POWERTRAIN 15.6 ~
Slide 73: Self-help DRIVE programme delivering a balanced impact
NUMBERS EXCLUDE MAGIRUS ROBUST PROFITABILITY UPLIFT FINANCE Self-help DRIVE programme delivering a balanced impact over the plan Adj. EBIT margin of Industrial Activities walk (%) €0.6bn DRIVE €0.4bn 7-8% 6-7% 5.4% 3.3% 2.6% 2021A 2022A 2023A Volume & Operations, R&D, 2026E Volume & Operations, R&D,
Slide 74: Resilient, flexible and sustainable investment plan
NUMBERS EXCLUDE MAGIRUS DISCIPLINED INVESTMENTS FINANCE Resilient, flexible and sustainable investment plan to maximise competitive edge Investments1 by Business Unit Investments1 by technology Other2 Product Upgrade 20% New Energy Powertrain 42% & Evolution ~€5.5bn ~€5.5bn Cumulated Cumulated Truck
Slide 75: Strong cash from operations and consistent high cash conversion
NUMBERS EXCLUDE MAGIRUS CASH MANAGEMENT FINANCE Strong cash from operations and consistent high cash conversion as key commitments Free Cash Flow of Industrial Activities yearly evolution Cumulated Free Cash Flow of Industrial Activities bridge (€bn) 2023A-2028E (€bn) 2024E-2028E >2x ~0.9 ~10 ~0.6 0
Slide 76: Sound and low-risk capital structure
NUMBERS EXCLUDE MAGIRUS FLEXIBLE CAPITAL STRUCTURE FINANCE Sound and low-risk capital structure to maintain room for optionalities Available liquidity walk Key highlights (€bn) 2023A-2028E First dividend to be distributed in April 2024 at 25% of reported Group Net Income, future distributions in acc
Slide 77: Continuous effort to optimise below-the-line cost items
FINANCIAL UPSIDES FINANCE Continuous effort to optimise below-the-line cost items FOREIGN INTEREST CAPTIVE FISCAL EXCHANGE RATES RATES FINANCING PROFILE Conservative assumptions on Conservative assumptions on Assumed in continuity with Continuous tax profile evolution of interest rate environment, h
Slide 78: Industrial Activities mid to long-term targets
NUMBERS EXCLUDE MAGIRUS MID TO LONG-TERM TARGETS FINANCE 2023 2026 targets 2028 targets 2023 to 2028 15.6bn ~€17bn ~€19bn 5.0% INDUSTRIAL ACTIVITIES Net Revenues € Up to CAGR Adj. EBIT margin 5.4% 6-7% 7-8% Up to + 300 BPS Free Cash Flow € 0.4bn ~€ 0.6bn ~€ 0.9bn > 2x increase 0.4bn ~€ 0.7bn ~€ 0.9b
Slide 79: 2024E preliminary financial guidance
NUMBERS EXCLUDE MAGIRUS 2024E PRELIMINARY FINANCIAL GUIDANCE (EU-IFRS) FINANCE 2024E Guidance IVECO GROUP Adjusted EBIT € 920 - 970mn Net Revenues (including currency translation effects) ~(4)% Financial outlook INDUSTRIAL ACTIVITIES based on current Adjusted EBIT1 € 790 - 840mn visibility Free Cash
Slide 80: What to expect from Iveco Group
CLOSING REMARKS What to expect from Iveco Group Solid Delivery Product Portfolio Partnerships Execute as one team our Continuously Strengthen and unlimited pathways, innovate product expand partners always playing range towards low ecosystem to for the upside and and zero emissions accelerate our im
Slide 81: Upsides to our unlimited pathways
CLOSING REMARKS + Advance technology and reduce costs through CO-DEVELOPMENT + Accelerate EVCO scale-up through new partners Upsides to our unlimited pathways + Realise better margin on ELECTRIC TRUCKS vs conservative assumptions + Onboard additional equity partners for GATE + Capture new opportunit
Slide 82: 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 83: 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