Iveco Group Nv · MIL:IVG
Iveco Group Nv — Q1 2024 Earnings Presentation
34 slides from Iveco Group Nv's earnings presentation, May 10, 2024
Slide 1: Q1 2024 results
Q1 2024 results Turin, Italy – 10th May 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: CEO Executive Summary
CEO EXECUTIVE SUMMARY • Solid start of the year, with consistent profitability improvements across business units on the back of lower product cost and positive net price realization • Q1 2024 Consolidated Net Revenues in line with Q1 2023 recast, with Consolidated Adjusted EBIT margin at 6.9%, 170b
Slide 4: Q1 2024 Iveco Group's Main Achievements
Q1 2024 IVECO GROUP’S MAIN ACHIEVEMENTS • January 2024 • March 2024 • March 2024 Iveco Group chooses BASF as first Iveco Group unveils new Strategic Plan to Hyundai Motor and Iveco Group expand recycling partner for electric vehicle 2028 and “Unlimited Pathways” for its five their partnership to exp
Slide 5: Q1 2024 Main Achievements by Industrial Business Unit
Q1 2024 MAIN ACHIEVEMENTS BY INDUSTRIAL BUSINESS UNIT TRUCK BUS • February 2024 • January 2024 Hyundai Motor Company to supply an IVECO BUS wins its largest zero- all-electric Light Commercial Vehicle emission vehicle contract in Italy from its global eLCV platform to Iveco with more than 400 electr
Slide 6: Q1 2024 Main Achievements by Industrial Business Unit
Q1 2024 MAIN ACHIEVEMENTS BY INDUSTRIAL BUSINESS UNIT DEFENCE POWERTRAIN • March 2024 • January 2024 Official handover of the first unit of FPT Industrial engines power the IDV’s MUV 4×4 TCN vehicle to the construction of the longest immersed Austrian Armed Forces tunnel in the world • March 2024 FP
Slide 7: Q1 2024 Industry Volume
Q1 2024 INDUSTRY VOLUME Units (% change vs. Q1 2023) Europe(1) South America(2) Rest of the World(3) Worldwide Light Commercial Vehicles +15% (17)% +25% +17% (3.5-7.49t) Medium & Heavy trucks (3)% (7)% (2)% (3)% (≥ 7.5t) Buses FLAT (19)% (4)% (7)% (1) The 27 European countries where Commercial Vehic
Slide 8: Trucks' Channel Inventory by Quarter
TRUCKS’ 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 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2019 2020 2021 2022 2023 ‘24 2019 2020 2021 2022 2023 ‘24 Iveco Group's inventory (without the unfinis
Slide 9: Order Intake, Deliveries and Book-to-Bill
ORDER INTAKE, DELIVERIES AND BOOK-TO-BILL Thousands units, unless otherwise stated LCV M&H Buses (3.5-7.49t) (≥ 7.5t) 30 1.31 0.68 25 20 1.01* 15 0.76 10 1.34* 1.21 5 0 Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Q1 2023 Q1 2024 Q1 2023
Slide 10: Market Share in Europe by Quarter
MARKET SHARE IN EUROPE BY QUARTER Preliminary registration units (excluding United Kingdom and Ireland(1)) LCV M&H City and Intercity buses (3.5-7.49t) (≥ 7.5t) 64.3% 50.5% 38.2% 30.4% 8.7% 7.5% 13.7% 13.0% 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 Q1 Q2 Q3 Q4 Q1
Slide 11: Q1 2024 financials
Q1 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 12: Financial Summary
FINANCIAL SUMMARY Change vs. Q1 2023 recast for Profit & Loss and Cash Flow items, vs. 31 st December 2023 for Balance Sheet items Consolidated Industrial Activities €3.4bn Net Revenues €3.3bn €0.57 Adjusted diluted EPS(1) +0.1% (0.2)% +€0.32 €233mn Adjusted EBIT(1) €201mn €(436)mn Free Cash Flow of
Slide 13: Net Revenues of Industrial Activities
NET REVENUES OF INDUSTRIAL ACTIVITIES Split by region and business unit – €mn, unless otherwise stated 13% Change YoY 2% 8% Europe +5% By region South America (31)% 3,290 3,283 North America (6)% 77% INDUST. NET INDUST. NET Rest of the World +0% REVENUES VOLUME AND MIX GROSS PRICING FX REVENUES Q1 2
Slide 14: Adjusted EBIT of Industrial Activities
ADJUSTED EBIT OF INDUSTRIAL ACTIVITIES Walk by driver – €mn, unless otherwise stated 6.1% 4.4% 146 (37) 94 144 (32) (23) (92) 201 INDUSTRIAL INDUSTRIAL FX | OTHER AND ADJUSTED EBIT VOLUME AND MIX NET PRICING PRODUCTION COST SG&A R&D ADJUSTED EBIT ELIMINATIONS Q1 2023 Q1 2024 Numbers may not add due
Slide 15: Adjusted EBIT and Margin by Industrial Business Unit
ADJUSTED EBIT AND ADJ. EBIT MARGIN BY INDUSTRIAL BUSINESS UNIT TRUCK DEFENCE • Adj. EBIT at €152mn, +€32mn YoY driven by lower product costs and positive • Adj. EBIT at €22mn, +€16mn YoY driven by higher volumes and a favourable price realisation, only partially offset by lower volumes in South Amer
Slide 16: Financial Services
FINANCIAL SERVICES Q1 2024 and 31st March 2024 Adjusted EBIT Equity and Return on Assets(1) (2) 2.5% 2.3% 2.1% 2.1% 2.3% 2.3% 2.1% 2.0% 1.7% 1.7% 1.9% 1.8% 1.9% Q1 2024 €32mn 844 842 836 789 768 778 811 Q1 2023 €28mn 724 725 743 740 723 752 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 ‘24 E
Slide 17: Net Cash, Working Capital and FCF of Industrial Activities
NET CASH, WORKING CAPITAL AND FCF OF INDUSTRIAL ACTIVITIES Walk – 31st March and Q1 2024, €mn Industrial Free Cash Flow: (436) €87mn of BOPREAL subscription 1,886 413 (37) (588) (82) (125) (17) (31) (137) 1,282 CASH OUT FOR CAPITAL INCREASES, NET CASH Δ IN WORKING Δ IN PROVISIONS PP&E CAPEX(2) AND N
Slide 18: Debt Maturity Profile and Available Liquidity
DEBT MATURITY PROFILE AND AVAILABLE LIQUIDITY 31st March 2024, €mn Available Liquidity 4,685 Undrawn medium-term committed unsecured credit lines Bank debt Capital market (1) Cash & marketable securities €mn 31st March 2024 31st December 2023 2,000 Cash and cash equivalents 2,611 2,698 Undrawn commi
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: 2024E Industry Volume Outlook
2024E INDUSTRY VOLUME OUTLOOK Units (% change vs. 2023) Europe(1) South America(2) Rest of the World(3) Worldwide Light Commercial Vehicles ~ +5% FLAT FLAT FLAT – 5% (3.5-7.49t) Medium & Heavy trucks (20) – (15)% ~ (5)% (5)% – FLAT (15) – (10)% (≥ 7.5t) Buses FLAT FLAT ~ (5)% FLAT (1) The 27 Europea
Slide 21: 2024E Preliminary Financial Guidance Recast Confirmed
2024E PRELIMINARY FINANCIAL GUIDANCE RECAST CONFIRMED 2024E Guidance (excluding Fire Fighting business) Group Adjusted EBIT(1) €920 – 970mn Net Revenues ~ (4)% vs. FY 2023 recast Industrial Activities (including currency translation effects) Adjusted EBIT(1) €790 – 840mn Free Cash Flow(1) €350 – 400
Slide 22: CEO Takeaway Messages
CEO TAKEAWAY MESSAGES FY 2024E preliminary financial guidance confirmed on the back of a solid start of the year and evolving order backlog. Such guidance includes a prudent view on the second half of the year Adjusted EBIT margin also confirmed up YoY in Defence, Bus and Powertrain business units,
Slide 23: Appendix
APPENDIX
Slide 24: 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 25: 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 26: Summary Table
SUMMARY TABLE €mn, otherwise stated Net Revenues by business unit Q1 2024 Q1 2023 recast % change Truck 2,339 2,287 +2.3% Bus 414 407 +1.7% Defence 213 159 +34.0% Powertrain 969 1,113 (12.9)% Eliminations and other (652) (676) +3.6% INDUSTRIAL ACTIVITIES 3,283 3,290 (0.2)% Financial Services 145 99
Slide 27: Reconciliation Table (1/5)
RECONCILIATION TABLE (1/5) EBIT to Adjusted EBIT by business unit in Q1 2024 & Q1 2023 recast, and Powertrain Adjusted EBIT walk by driver – €mn Unallocated items, Industrial Financial Truck Bus Defence Powertrain Eliminations Consolidated Q1 2024 eliminations & other Activities Services EBIT 150 21
Slide 28: Reconciliation Table (2/5)
RECONCILIATION TABLE (2/5) €mn, unless otherwise stated Q1 2024 Q1 2023 Reported Net profit (loss) from Continuing Operations 22 23 (a) Adjustments impacting Profit (Loss) before income tax (expense) benefit from Continuing Operations 137 54 (b) Adjustments impacting income tax (expense) benefit fro
Slide 29: Reconciliation Table (3/5)
RECONCILIATION TABLE (3/5) €mn Q1 2024 Q1 2023 Negative impact from the agreement to transfer the Fire Fighting business 115 - Costs related to certain claims arising from the EU Commission’s 2016 Antitrust settlement 17 7 Restructuring costs 5 2 Acquisition of full ownership of Nikola Iveco Europe
Slide 30: Reconciliation Table (4/5)
RECONCILIATION TABLE (4/5) Total (Debt) to Net Cash (Debt) Consolidated Industrial Activities Financial Services €mn 31st March 2024 31st December 2023(6) 31st March 2024 31st December 2023(6) 31st March 2024 31st December 2023 Third party (debt) (5,612) (5,768) (1,153) (1,191) (4,459) (4,577) Inter
Slide 31: Reconciliation Table (5/5)
RECONCILIATION TABLE (5/5) Industrial Free Cash Flow €mn Q1 2024 Q1 2023 Net cash provided by (used in) Operating Activities from Continuing Operations (316) (460) - Cash flows from Operating Activities of Financial Services net of eliminations 22 46 = Operating cash flow of Industrial Activities fr
Slide 32: Book-to-Bill
BOOK-TO-BILL Excluding Specialty Vehicles (Defence and Fire Fighting). Book-to-Bill (x) Order intake (#units) Deliveries (#units) Q1 2024 Q1 2023 YoY % Q1 2024 Q1 2023 YoY % Q1 2024 Q1 2023 YoY % Trucks 0.67 1.13 (41)% 18,073 26,451 (32)% 27,065 23,494 15% LCV 0.66 1.23 (46)% 14,066 19,545 (28)% 21,
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
Slide 34: Thank You
THANK YOU IVECO*GROUP WE GO BEYOND