Gestamp Automocion S.a. · BME:GEST
Gestamp Automocion — Q1 2013 Earnings Presentation
28 slides from Gestamp Automocion's earnings presentation, Jun 24, 2013
Slide 1: First Quarter 2013 Results
First Quarter 2013 Results 24 June 2013 ©2012 ©2013 GESTAMP GESTAMP 0 0
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for use at this presentation of our results for the quarter ended March 31, 2013. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. This presentati
Slide 3: Presentation of First Quarter 2013 Results
Presentation of First Quarter 2013 Results Francisco J. Riberas Mera, President & CEO Francisco López-Peña, Vice President & CFO Richard Egües, Director of International Financing ©2012 ©2013 GESTAMP GESTAMP 2 2
Slide 4: Key Events - Summary
Key Events - Summary First quarter revenue came in as expected, reflecting weak European industry production volumes, fewer working days in the quarter EBITDA came in as expected as well, reflecting lower volumes in Western Europe but also the effects of several plants which are in ramp-up phase
Slide 5: Industry Production Volumes
Industry Production Volumes Global Production Western European Production (*) Source: Independent third party (*) In Gestamp countries of operations Declines in market volumes in Western Europe in the first quarter 2013 compared to Q1 2012 were significant, but were expected given the relative str
Slide 6: Performance in Q1 2013 in line with expectations
Performance in Q1 2013 in line with expectations Breakdown of P&L, first quarter of 2013 Revenue of over € 1.3 billion generated EBITDA of € 138 million, EBIT of € 64 million and a net income of € 28 million for the quarter Results were in line with budget and were also in accordance with the cu
Slide 7: Revenue and EBITDA : Q1 2013 vs. Q1 2012
Revenue and EBITDA : Q1 2013 vs. Q1 2012 Revenue EBITDA Declines in sales and EBITDA in our Western European operations were mitigated partially by sales in our other regions of operation We estimate that close to 5% of the declines in Q1 is due to the lower number of working days during Q1 2013
Slide 8: Capital Expenditure
Capital Expenditure Cash Capex Cash capex in the first quarter of 2013 was higher than in the first quarter of 2012, but in line with plan Capex programs for 2013 will be relatively front-ended compared with 2012 This capital investment is primarily dedicated to new client orders, new projects
Slide 9: Overview of recent bank and bond (re-)financings
Overview of recent bank and bond (re-)financings Key terms Senior Secured Notes Senior Secured Credit Facilities Issuer / Gestamp Funding Luxembourg S.A. Gestamp Automoción S.A Borrower(s) € 570m Term Loan & € 280m Revolving Credit Amount € 500m & $ 350m (€ 768m equivalent) Facility Ranking Pari pas
Slide 10: Sound Financial Structure
Sound Financial Structure Capitalization, Actual and Pro Forma Pro Forma Maturity Profile Quarter ended March 31, 2013 Actual As adjusted (Millions of Euros) Cash, cash equivalents and current financial assets (1) 253.5 508.4 Senior secured notes (2) ---- 768.7 Term facilities ---- 570.0 Revolving c
Slide 11: Corporate Developments
Corporate Developments Mitsui Competition Clearance Closing expected within 2 weeks Jurisdiction Clearance Submission date EU 13/3/2013 Brazil 12/3/2013 Argentina 5/4/2013 Clearance Post Closing Mexico 20/3/2013 USA 24/5/2013 China 22/2/2013 South Korea 9/5/2013 Turkey Expected befor
Slide 12: Appendix
Appendix Company overview ©2012 ©2013 GESTAMP GESTAMP 11 11
Slide 13: Group structure (simplified)
Group structure (simplified) Corporación Gestamp 65% 35% Other Indebtedness(a) Gestamp (including Senior Parent Guarantee Automoción S.A. Facilities Agreement) 100% Gestamp Funding Senior Secured € 500 million Luxembourg S.A. Notes due 2020 & $ 350 million Funding Loan (Issuer) Gestamp Gestamp Gesta
Slide 14: Gestamp business overview
Gestamp business overview 2012 revenue: €5.75bn Business unit Product category Typical products • Hoods • Roofs Exterior • Fenders • Doors Body-in-white • Floors • Front modules Structural/crash • Pillars • Bumper relevant • Rails • Crash boxes • Wheel arches • Cross car beams Sub-frames/ • Front su
Slide 15: Evolution from local manufacturer to a leading global Tier 1 supplier
Evolution from local manufacturer to a leading global Tier 1 supplier Revenues (€bn) EBITDA (€m) 5.8 700 620 4.8 0.8 600 547 500 0.9 390 3.2 400 2.3 0.5 300 270 2.0 4.9 223 0.1 3.8 200 2.2 2.7 2.0 100 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Organic revenue Acquisition revenue Key company
Slide 16: Diversified product, customer and geographic presence
Diversified product, customer and geographic presence Revenue(a) by customer, 2012 Others • Gestamp‟s current customer base includes all top 12 1.0% 3.5% 1.3% 0.7% OEMs, with good diversification among them 2.7% Industrial • 44% of total revenue in 2012 generated outside vehicles 2.7% 2.8% 30.2% Wes
Slide 17: Global manufacturing, management and R&D footprint
Global manufacturing, management and R&D footprint Manufacturing footprint Haynrode Gestamp has a global Brackwede Westerburg manufacturing and Reimscheid Ludwigsfelde Poznan Wroclaw management footprint, Briey Luleå Pure with 94 plants in 19 Gouzeaucourt Le Theil countries covering Newcastle St P
Slide 18: Technology and quality leadership in the complete value chain
Technology and quality leadership in the complete value chain Vehicle development value chain Supplier level Innovation Strategic 7 5 3 6 4 2 1 New Products Product Developer 7 5 3 6 4 2 1 & New development & Build-to-Print 7 5 3 6 4 2 1 Technolgies Engineering CAD 3D/2D Drawings Benchmarking 3 Tech
Slide 19: Technology and quality leadership – Passive Safety and Weight Reduction
Technology and quality leadership – Passive Safety and Weight Reduction Press Hardening Technology Tools are cooled down 930º C USIBOR Press USIBOR Heating Laser Coils hardening & Blanks 930°C trimming quenching Advanced High Strength steels (AHSS with resistance higher than 600 MPa UTS) offer… • We
Slide 20: Technology and quality leadership – Passive Safety and Weight Reduction
Technology and quality leadership – Passive Safety and Weight Reduction Targets achieved through Press Hardening Vehicle Deceleration [g] Press (full) hardening outstandfing resistance (Protection against deformation) Press (partial) hardening deformation control Press (partial) hardening energy abs
Slide 21: Technology and quality leadership – Mechanisms
Technology and quality leadership – Mechanisms Key product milestones Edscha Spindle Drive Edscha Spindle Stop 1st electrical powered Electrical powered Spindle Drive for door check with obstacle tailgate detection T1 „Brezel Käfer“ BMW X5 1936 1938 1996 2003 2005 2009 2011 2012 2014 2016 Edscha Cor
Slide 22: State-of-the-art global platform
State-of-the-art global platform Revenues (€bn) Growth and Capex 5.8 • Gestamp currently operates 94 plants globally, with additional 4 plants under construction, 3 of which in Asia 0.8 4.8 - Over the past 3 years, over 42 plants added to the Gestamp platform via acquisitions or greenfield 0.9 inves
Slide 23: Customer and geographic diversification driving global platform wins
Customer and geographic diversification driving global platform wins Gestamp is winning complex projects with leading customers around the globe Global Platforms • Complete platform – hot • Front and Rear Chassis • Hot Stamping stamping technology subframes + Hot stamping underbody structural parts
Slide 24: Consistent profitability through the cycle
Consistent profitability through the cycle Double digit EBITDA margins across the cycle 1,500 14% 12.3% 11.7% 11.5% 11.0% 10.8% 12% 1,000 (€m) 547 620 10% 500 390 340 270 307 223 194 8% 92 64 0 6% 2008 2009 2010 2011 2012 EBITDA EBIT EBITDA margin Lean organization with embedded culture of cost savi
Slide 25: Low raw material price exposure and high revenue visibility
Low raw material price exposure and high revenue visibility Raw material (steel) price increases are passed through High revenue visibility No steel price exposure through resale • Each year, most of our revenues from automotive components were derived from projects that are • Steel represents ca. 5
Slide 26: View on the OEM – supplier relationship trend
View on the OEM – supplier relationship trend OEM - supplier interdependency • Price competitiveness • Part and process quality assurance • Strong R&D capabilities • Global footprint • Price competitiveness • Skilled project management teams • Part quality assurance • Financial strength Past Present
Slide 27: OEM - supplier relationship: fostering collaboration while assuring competiveness
OEM - supplier relationship: fostering collaboration while assuring competiveness • Global suppliers. All regions, all brands • Long lasting relationship • Cooperation: Co-development, co-investment in key categories Key suppliers • Relationship based on business plans Tier 1 • First choice for outs
Slide 28: Gestamp Strategy: Three pillars and a solid foundation
Gestamp Strategy Three pillars and a solid foundation, with clear opportunities Mission Be an indispensable strategic partner for a diversified customer base in our business segments Strategy Best-in-class process and Global footprint Operational excellence product technology innovation • To support