Slide 1: FY 2019 Results Presentation
FY 2019 Results Presentation February 27th, 2020 © Gestamp 2020 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for use at this presentation of our results as of and for the quarter ended December 31, 2019. By attending the conference call meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following
Slide 3: Agenda
Agenda Key Highlights for FY 2019 and Q4 2019 Financial Overview Guidance and Closing Remarks © Gestamp 2020 3
Slide 4: Key Highlights for FY 2019 and Q4 2019
Key Highlights for FY 2019 and Q4 2019 • Gestamp has outperformed the market by c. 12 p.p. and has achieved its revised 2019 full year targets, despite weak market conditions during 2019 ‒ FY 19 Revenues increased by 6.1% reported (6.3% at constant FX) vs. the market at -5.6%1 ‒ FY 19 EBITDA growth
Slide 5: Financial Performance in Q4 2019
Financial Performance in Q4 2019 (In €m) Q4 2018 Q4 2019 Total Revenue 2,392 2,493 EBITDA 279 317 EBITDA margin (%) 11.7% 12.7% EBIT 161 166 EBIT margin (%) 6.7% 6.7% Net Income 94 84 Net debt 2,233 2,329 Operating Leases (IFRS 16) Not applicable (395) 393 Q4 2019 Revenue increased by 4.6% at consta
Slide 6: Financial Performance in FY 2019
Financial Performance in FY 2019 (In €m) FY 2018 FY 2019 Total Revenue 8,548 9,065 EBITDA 961 1,072 EBITDA margin (%) 11.2% 11.8% EBIT 527 504 EBIT margin (%) 6.2% 5.6% Net Income 258 212 Net debt 2,233 2,329 Operating Leases (IFRS 16) Not applicable (395) 393 FY 2019 Revenue increased by 6.3% at co
Slide 7: Automotive Growth FY 2019 vs. FY 2018
Automotive Growth FY 2019 vs. FY 2018 Gestamp Revenue Growth at Constant FX vs. Market Production Growth in Gestamp Markets Eastern Europe 20.4% NAFTA Western Europe 13.0% -0.4% Market Gestamp -4.7% -5.9% -3.7% Market Gestamp Asia Market Gestamp 11.2% Mercosur 28.1% -6.3% Market Gestamp Total in Our
Slide 8: Financial Performance
Financial Performance EBITDA (1) Net Income Considerations (In €m) (In €m) • EBITDA of €1,072m in FY 19, a 11.6% +€111m increase or 11.7% at constant FX, -€46m including the impact from IFRS 16 1,072 +€38m 961 -€10m • Net Income reached €212m in FY 19, improving trend vs. 9M 2019 but still 258 212 i
Slide 9: Gestamp's Presence in China
Gestamp’s Presence in China Gestamp’s Footprint in China Key Figures for 2019A Production Plants R&D Centers 11 + 2 €847m 9% Gestamp of Total Sales in Gestamp China Sales Gestamp’s employees 3,988 in China © Gestamp 2020 9
Slide 10: Gestamp's Update on China Situation
Gestamp’s Update on China Situation • Health and safety of our people and families is our number one priority ‒ No confirmed or suspected employees infected • Ongoing dialogue with all of our customers in order to assess the situation to return to normal business activity as soon as feasible • Curre
Slide 11: Challenging Auto Production Market Environment
Challenging Auto Production Market Environment IHS Light Vehicle Production for 2019 (growth % vs. 2018) IHS Light Vehicle Production for 2020 (Mveh) IHS as of Dec-18 vs. Feb-20 IHS Market Production (Mveh) 0.4% 95.0 94.5 94.5 -10m -0.9% 97.0 94.0 93.3 93.5 93.0 87.2 92.5 92.0 91.5 -3.7% 90.8 91.0 9
Slide 12: Our Measures to Adapt to the Current Market Environment
Our Measures to Adapt to the Current Market Environment Key Measures • Capex moderation in 2019 down to 8.8% of Revenues (vs. 10.8% in 2018) • Gestamp’s invested capital provides a solid geographical footprint and Capex technological portfolio Moderation • Further capex moderation from maximizing ex
Slide 13: Agenda
Agenda Key Highlights for FY 2019 and Q4 2019 Financial Overview Guidance and Closing Remarks © Gestamp 2020 13
Slide 14: Revenue and EBITDA Summary Overview
Revenue and EBITDA Summary Overview (In €m) 9,065 8,548 2,493 Revenue 2,392 Q4 2018 Q4 2019 FY 2018 FY 2019 Like for like growth: 4.6% Like for like growth: 6.3% (In €m) EBITDA 11.7% 12.7% 11.2% 11.8% margin (%) 1,072 317 961 EBITDA 279 Q4 2018 Q4 2019 FY 2018 FY 2019 Like for like growth: 5.7% Like
Slide 15: Western Europe Financial Overview
Western Europe Financial Overview Considerations (In €m) • Q4 Revenue decrease of 5.3% reaching €1,043m − Continued challenging market conditions across 4,101 almost all countries 1,101 3,911 1,043 Revenue − Impacted by lower tooling revenues but partially offset by contribution of ramp-ups in Iberi
Slide 16: Eastern Europe Financial Overview
Eastern Europe Financial Overview Considerations (In €m) • Q4 Revenue reaching €407m − Solid growth of 17.8% across almost all 1,380 countries, mainly driven by ramp-ups in Turkey, 1,187 Czech Republic and Slovakia Revenue 407 345 • FY Revenue growth of 16.2% − Similar trends as in the quarter. Cont
Slide 17: NAFTA Financial Overview
NAFTA Financial Overview Considerations (In €m) • Q4 Revenue reaching €490m − Impacted by temporary client-specific 1,976 production adjustments in their facilities 492 490 Revenue 1,659 • FY Revenue growth of 19.1% reaching €1,976m − Growth mainly driven by the contribution of new projects, althoug
Slide 18: Mercosur Financial Overview
Mercosur Financial Overview Considerations (In €m) • Q4 Revenue increase of 30.8%, strong above- market growth backed by 656 − New project launches in Brasil as well as higher 208 585 tooling revenues partially offset by Revenue 159 − A decrease in Argentina • FY Revenue of €656m resulting in 12.0%
Slide 19: Asia Financial Overview
Asia Financial Overview Considerations (In €m) • Q4 Revenue increase of 16.9% reaching €345m − Above-market growth in a continued 1,143 challenging market dynamics 345 1,016 Revenue • FY Revenue growth of 12.5% 295 − Similar trends as for the quarter well backed by the contribution of BHAP JV Q4 201
Slide 20: Capital Expenditure Overview FY 2019
Capital Expenditure Overview FY 2019 Capex Breakdown Considerations (In €m) • Gestamp has moderated its investments Capex as % Capex as % reducing total capex by €124m vs. FY 2018 10.8% 8.8% of revenue of revenue 920 • Capex to revenues ratio was 8.8% in 2019, Intangible 112 1.3% slightly below the
Slide 21: Net Financial Debt Position
Net Financial Debt Position Net Financial Debt Q4 Cash Flow Generation – Excl. IFRS 16 Considerations NFD Delta (€m) 2019 (€m) -€265m -€335m • Net financial debt decreased by €335m in Q4 (-€350m incl. IFRS 16) – cash generation Net Debt 2,329 Net Debt / EBITDA (x) in Q4 higher than previous years Op
Slide 22: ESG is Part of our Business Strategy
ESG is Part of our Business Strategy Sustainability Model Mitigate Climate Change Circular Economy Climate Change: Working for a safer and lighter car Gestamp: B (Av. Sector C) Sustainable use of resources Water Gestamp: B- (Av. Sector B-) Health & Safety Talent Management Equal Opportun
Slide 23: Agenda
Agenda Key Highlights for FY 2019 and Q4 2019 Financial Overview Guidance and Closing Remarks © Gestamp 2020 23
Slide 24: Status Update on 2019 Targets
Status Update on 2019 Targets Revised Guidance 2019 2019 Results (Constant FX & excl. IFRS 16) (Constant FX & excl. IFRS 16) Revenues Revenue growth: Mid single digit 6.3% EBITDA > EBITDA 2018 (€961m) €988m(1) Capex ~ 9.0% of revenues 8.8% ~ 2.4x Leverage 2.37x Net Debt / EBITDA Dividend Pay-out rat
Slide 25: Outlook for 2020
Outlook for 2020 Guidance 2020 Revenues Mid-single digit outperformance vs. the market EBITDA > EBITDA 2019 Capex as % of Revenues Approaching 7.5%1 FCF Positive Dividend Pay-out ratio: c.30% of Net Income Continued outperformance with a focus on FCF generation Note: On a constant FX basis. Excludin
Slide 26: Upcoming 2020 Capital Markets Day
Upcoming 2020 Capital Markets Day Market environment: Rapidly changing market trends, C.A.S.E and outsourcing trend Strategic positioning: Leading market position in BiW, Chassis and Mechanisms Car of the future: R&D focused on lightweight solutions and new products (e.g. battery box) 2020 Capital M
Slide 27: Strengthening of our Footprint in Strategic Locations for OEMs
Strengthening of our Footprint in Strategic Locations for OEMs Strong Strategic Position • Gestamp’s invested capital provides a solid geographical Overview of enhanced footprint footprint and technological portfolio 2017 2019 ‒ Global manufacturing footprint in close proximity to our customers Prod
Slide 28: Closing Remarks
Closing Remarks • In 2019 Gestamp continued to deliver both Revenue and EBITDA growth and achieved its revised 2019 full year targets despite challenging market conditions ‒ Capex and net leverage slightly better than revised guidance • Ongoing implementation of measures to adapt to the current mark
Slide 29: Investor Relations
Investor Relations +34 91 275 28 72 investorrelations@gestamp.com www.gestamp.com © Gestamp 2020 © Gestamp 2020 29