Gestamp Automocion S.a. · BME:GEST
Gestamp Automocion — FY2020 Earnings Presentation
30 slides from Gestamp Automocion's earnings presentation, Feb 24, 2021
Slide 1: FY 2020 Results Presentation
G-LAB FAMILY FROM THE GESTAMP´S G-LAB PROGRAM FY 2020 Results Presentation February 24th, 2021
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, 2020. 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 Highlights for Q4 and FY 2020 Financial Overview Outlook and Remarks © Gestamp 2021 3
Slide 4: 2020: A Year of Two Halves
2020: A Year of Two Halves Within unprecedented challenging times Gestamp has proven the resilience, flexibility and strength of its business model, as demonstrated over 2020 H1 2020 H2 2020 COVID19: Emergency Situation Volume Recovery Implementation of a Reaction Plan Flexibility Measures Safety of
Slide 5: The Resilience of Our Business Model
The Resilience of Our Business Model Over periods of crisis, Gestamp has shown the resilience and cash flow generation capacity of its business model During the COVID-19 crisis, Gestamp was able Same resilience proven in 2009 to generate strong FCF… Net debt (excl. IFRS16) -19.8% FCF € 271m in 2020
Slide 6: Meeting Our 2020 Targets
Meeting Our 2020 Targets July 2020 October 2020 FY 2020A Net Debt (1) At around 2019 Levels Below 2019 levels €2,058m (-€271m vs. 2019) EBITDA margin (2) 9-10% 9-10% 10.2% (High end of range) ~ €500m €494m Capex (1) ~ €500m (On track) (-38% vs. 2019) After a Difficult Year, Gestamp Achieved FY 20 Gu
Slide 7: Financial Performance in FY 2020
Financial Performance in FY 2020 (In €m) – Excluding Transformation Cost FY 2019 FY 2020 Total Revenue 9,065 7,456 EBITDA 1,072 757 EBITDA margin (%) 11.8% 10.2% EBIT 504 158 EBIT margin (%) 5.6% 2.1% Net Income 212 -71 Capex (excl. IFRS 16) 796 494 Net debt (excl. IFRS 16) 2,329 2,058 Operating Lea
Slide 8: Financial Performance in Q4 2020
Financial Performance in Q4 2020 Revenue and EBITDA margin % - excl. Transformation Plan EBITDA (€m) EBITDA margin % Revenue 317 193 23 244 297 2,493 2,500 2,373 18 2,038 16 2,011 2,000 12.7% 14 12.5% 12 1,500 12.0% 10 1,034 8 1,000 9.6% 6 500 4 2 2.3% 0 0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q4
Slide 9: Auto Overview 2020
Auto Overview 2020 Global Light Vehicle Production evolution by quarter (%) Total WORLD LV Production 2020: -16.1% • The market has experienced two different dynamics o The Chinese with most of the impact taking place in February but with a strong recovery in H2; and o The European and US one with s
Slide 10: Automotive Growth FY 2020 vs. FY 2019
Automotive Growth FY 2020 vs. FY 2019 Gestamp Revenue Growth at Constant FX vs. Market Production Growth in Gestamp Markets Eastern Europe -3.5% NAFTA Western Europe -16.3% Market Gestamp -11.8% -18.6% Asia -19.1% -26.2% Market Gestamp Market Gestamp -8.9% Mercosur -10.3% Market Gestamp -18.8% -30.7
Slide 11: Proven Flexibility During The Year
Proven Flexibility During The Year Implementation of Flexibility Measures (Labour + Other General Expenses) Q4 2020 vs. Q4 2019 FY 2020 vs. FY 2019 Revenue -€120m -€1,609m Revenue stabilisation -4.8% decrease -17.8% decrease during H2 2020 Cost €61m €462m Reductions focused on Savings -8.7% decrease
Slide 12: Focus on Continuous Improvement
Focus on Continuous Improvement Transformation Plan to drive structural margin improvement ALREADY IN PROGRESS IN H2 2020 Fully focused on achieving the 13% EBITDA margin target of 2022 Note: EBITDA incl. IFRS 16 and excl. Transformation Plan impact © Gestamp 2021 12
Slide 13: Agenda
Agenda Key Highlights for Q4 and FY 2020 Financial Overview Outlook and Remarks © Gestamp 2021 13
Slide 14: Actions to Protect and Reinforce Our Financial Position
Actions to Protect and Reinforce Our Financial Position H1 2020 H2 2020 H2 2020 EBITDA Margin Emergency Measures Continued Focus on 12.3% to Address COVID 19 Implementation Net Debt (1) Reduction in 2020 Tight cost control Continued cost reduction and Strict capex reduction efficiency improvem
Slide 15: H2 2020 Financial Recovery
H2 2020 Financial Recovery Revenues (in €m) EBITDA (in €m, excluding Transformation Cost) Performance at constant FX: -30.8% Performance at constant FX: +3.5% Performance at constant FX: -58.2% Performance at constant FX: +5.1% -32.5% -3.1% -58.5% -1.7% 4,513 4,552 4,411 521 551 541 3,045 216 11.5%
Slide 16: Market Recovery at Different Speeds
Market Recovery at Different Speeds Revenues (€m) EBITDA (€m) EBITDA Margin (%) FY 2019 FY 2020 Var. (%) FY 2019 FY 2020 Var. (%) FY 2019 FY 2020 H2 2020 3,911 3,180 -18.7% 400 265 -33.8% Western Europe 10.2% 8.3% 10.8% Outperformance: 7.4 p.p. Performance at constant FX: -33.8% 1,380 1,209 -12.4% 2
Slide 17: Focus on Free Cash Flow Generation
Focus on Free Cash Flow Generation Actions Taken During 2020 to Preserve Cash and FCF • Tight Cost Control – Improving labour flexibility Lower EBITDA Focus on and efficiency of our operations FCF • Strict Capex Reduction – Without impacting our -€302m (1) commitments with -38% decrease customers +€
Slide 18: Significant Capital Expenditure Decline during FY 2020
Significant Capital Expenditure Decline during FY 2020 Reported Capex Breakdown (excl. IFRS 16) (In €m) Capex as % Capex as % Capex as % of revenue of revenue of revenue 10.8% 8.8% 6.6% 920 -€302m 1.3% 112 796 1.2% 108 5.7% 484 339 494 3.7% 1.0% 77 159 2.1% 324 349 3.8% 3.9% 3.5% 258 FY 2018A FY 201
Slide 19: Strong Net Debt Reduction
Strong Net Debt Reduction Net debt (excl. IFRS16) Net Debt / EBITDA (excl. IFRS 16 & Transformation Plan) 3.9x Free Cash flow generation of €271m 3.4x 3.1x -11.6% 2.6x 2,329 2,058 Q1 2020 H1 2020 9M 2020 FY 2020 FY 2018 FY 2019 FY 2020 Net Debt (excl. IFRS 16) 2,233 2,329 2,058 Operating Leases (IFR
Slide 20: Robust Liquidity Position
Robust Liquidity Position Liquidity Position as of FY 2020 Liquidity Trend (In €m) (In €m) 302 2,873 €+1,055m 235 31 2,336 +58% 2,305 2,873 2,143 1,818 Cash & Cash Other Current Total Cash LT Undrawn ST Undrawn Total Liquidity Liquidity Liquidity Liquidity Equivalents Financial Assets Credit Lines C
Slide 21: Upcoming 2021 Capital Markets Day
Upcoming 2021 Capital Markets Day Market environment: Rapidly changing market trends, increasing EV and outsourcing trend Strategic positioning: Leading market position in BiW, Chassis and Mechanisms Financial targets: Update on mid-term outlook and financial metrics ESG: Part of our DNA and long-te
Slide 22: Our ESG Efforts Are Acknowledged by the Market
Our ESG Efforts Are Acknowledged by the Market 7/40 position OEMs and suppliers 53/100 (+3 pts) Top 2% metal industry 7/40 position suppliers suppliers 68/100 (+3 pts) 65/100 (+5 pts) A More Sustainable The Sustainability Gestamp raised score to B Yearbook 2021 Sector average: C Top 15% - Autos Incl
Slide 23: Agenda
Agenda Key Highlights for Q4 and FY 2020 Financial Overview Outlook and Remarks © Gestamp 2021 23
Slide 24: Automotive Market in 2021
Automotive Market in 2021 IHS Light Vehicle Production Evolution (Mveh) Supply Chain uncertainty caused by Electronic Systems Suppliers IHS Risk Prediction for Q1 2021 95.1 94.2 89.0 Global -982 Kveh 84.6 China -347 Kveh 74.6 Europe -178 Kveh NAFTA -230 Kveh 2017 A 2018 A 2019 A 2020 A 2021 E Positi
Slide 25: Outlook for 2021
Outlook for 2021 Guidance 2021 Revenues Mid-single digit outperformance to the market EBITDA margin EBITDA margin >12% Capex (1) ~ 7% of revenues Net Debt (1) (2) < €2 bn Continued growth with a focus on FCF generation Note: On a constant FX basis. Excluding the systemic effect of coronavirus. (1) E
Slide 26: Laying the Foundations for Sustainable Growth
Laying the Foundations for Sustainable Growth Science Based Target (SBTI) Objective: Compromise to reduce our C02 emissions by 30% (Scope 1 & Scope 2) before 2030 First Auto Signatory in Spain Power Purchase Agreement signed on February 17th with 203 Gwh 100% 50,000 t 13% 25% % of renewable energy
Slide 27: Closing Remarks
Closing Remarks • 2020 has been an unprecedented year, but Gestamp has managed to react fast to preserve our business while building the path towards a new stage of development of the company • Gestamp has demonstrated its commitment with the wellbeing of our communities by donating and producing sa
Slide 28: Investor Relations
Investor Relations +34 91 275 28 72 investorrelations@gestamp.com www.gestamp.com © Gestamp 2021 © Gestamp 2021 28
Slide 29: Appendix
Agenda Appendix © Gestamp 2021 29
Slide 30: Financial Calendar 2021
Financial Calendar 2021 Gestamp Financial Calendar Exane BNP & Jefferies Geneva Motor Show Conference March 10th, 2021 First Quarter 2021 Earnings Release May 6th, 2021 Annual Shareholders’ Meeting May 6th, 2021 UBS Pan European Small & Mid Cap Conference May 13th, 2021 Capital Markets Day Mid June,