Iveco Group Nv · MIL:IVG
Iveco Group Nv — FY2023 Earnings Presentation
41 slides from Iveco Group Nv's earnings presentation, Feb 9, 2024
Slide 1: FY & Q4 2023 results
FY & Q4 2023 results Turin, Italy – 9th February 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 • All targets met or exceeded with continuous margin improvements across all segments • FY 2023 Consolidated Net Revenues up 12.9% YoY and Consolidated Adjusted EBIT(1) margin at 5.8% up 210bps vs. same period last year Adjusted Diluted EPS(1) at €1.23 per common share • On tra
Slide 4: Q4 2023 Main Achievements
Q4 2023 MAIN ACHIEVEMENTS October October November IVECO CAPITAL and Eurowag HIGHLIGHTS FROM BUSWORLD European Investment Bank to finance Iveco Group for up to €500mn partner to offer integrated • World premiere of our E-WAY H2 hydrogen-powered for the decarbonisation of the transport sector payment
Slide 5: 2023 New Product Launches
2023 NEW PRODUCT LAUNCHES January July October FPT Industrial’s new Cursor 13 hydrogen GATE – Green & Advanced Transport Ecosystem, IDV signed a contract to supply combustion engine debuted at Flachau Ski debuted its pilot programme in Italy, offering a flexible 671 VTLM Lince 2 to Italy. This World
Slide 6: Hyundai Motor Company to Supply an All-Electric LCV Platform to Iveco Group
HYUNDAI MOTOR COMPANY TO SUPPLY AN ALL-ELECTRIC LCV PLATFORM TO IVECO GROUP • Hyundai and IVG together announced a supply agreement on IVECO-badged eLCV for Europe • First model to apply Hyundai’s global all-electric Light Commercial Vehicle (eLCV) platform for an IVECO-badged vehicle in Europe • Hy
Slide 7: 2023 Industry Volume
2023 INDUSTRY VOLUME Units (% change vs. 2022) Europe(1) South America(2) Rest of the World(3) Worldwide Light Commercial Vehicles +13% (15)% +11% +11% (3.5-7.49t) Medium & Heavy trucks +16% (15)% +27% +15% (≥ 7.5t) Buses +20% +25% +5% +13% (1) The 27 European countries where Commercial Vehicles com
Slide 8: Channel Inventory by Quarter
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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Iveco Group's inventory (without the unfinished products) Third pa
Slide 9: 2023 vs. 2022 Order Intake and Deliveries
2023 VS. 2022 ORDER INTAKE AND DELIVERIES Units LCV M&H Buses (3.5-7.49t) (≥ 7.5t) 1.00 0.81 1.05 0.61 1.05 0.98 Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries 2022 2023 2022 2023 2022 2023 Model Year 2024 Book-to-Bill (x) Order intake ali
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 (3.5-7.49t) (≥ 7.5t) 63.6% 45.2% 9.7% 29.6% 8.7% 14.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020
Slide 11: FY 2023 financials
FY 2023 financials Contains confidential proprietary and trade secrets information of Iveco Group. Any use of this work without express written consent is strictly prohibited.
Slide 12: Financial Summary
FINANCIAL SUMMARY (change vs. FY 2022 for Profit & Loss and Cash Flow items, vs. 31st December 2022 for Balance Sheet items) Consolidated Industrial €16.2bn Net Revenues €15.9bn ✔ €1.23 Adjusted diluted EPS(1) +12.9% +12.1% +€0.45 €818mn ✔ ✔ €940mn +€413mn Adjusted EBIT(1) +€394mn €412mn €(278)mn In
Slide 13: Industrial Net Revenues
INDUSTRIAL NET REVENUES Split by region and segment – FY 2023, €mn otherwise stated 13% % change YoY 2% 9% Europe +19% By region South America (22)% North America +6% 76% €15.9bn Rest of the World +10% +12.1% YoY 24% % change YoY Trucks +11% 14,165 15,877 7% By segment 57% Buses +22% NET NET VOLUME
Slide 14: Industrial Adjusted EBIT
INDUSTRIAL ADJUSTED EBIT Walk by segment and driver – FY 2023, €mn otherwise stated 5.2% 3.0% 424 112 1,367 (403) (126) (158) (370) (29) 818 ADJUSTED EBIT PRODUCTION OTHER AND ADJUSTED EBIT VOLUME AND MIX NET PRICING SG&A R&D FX | OTHER FY 2022 COST(1) ELIMINATIONS FY 2023 Segments View C&SV 415 101
Slide 15: Financial Services
FINANCIAL SERVICES FY and 31st December 2023 – €mn otherwise stated Adjusted EBIT Equity and Return on Assets(1) (2) 2.5% 2.3% 1.9% 1.8% 1.9% 2.1% 2.1% 2.3% 2.3% 2.1% 1.7% 1.7% FY 2023 122 844 842 789 768 778 811 724 725 743 740 723 752 FY 2022 103 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023
Slide 16: Industrial Activities FCF, Net Cash and Working Capital
INDUSTRIAL ACTIVITIES FCF, NET CASH AND WORKING CAPITAL Walk and dynamics – FY 2023, €mn Free Cash Flow €412mn Includes Financial charges Includes €(149)mn due to negative ARS devaluation ARS devaluation, and €(41)mn of USD-linked bonds purchases 1,727 1,648 (226) 353 (388) (967) (8) (55) (232) 1,85
Slide 17: Debt Maturity Profile and Available Liquidity
DEBT MATURITY PROFILE AND AVAILABLE LIQUIDITY 31st December 2023, €mn Available Liquidity 4,748 Undrawn medium-term committed unsecured credit lines Bank debt Capital market Cash & marketable securities (1) €mn 31st December 2023 31st December 2022 2,000 Cash and cash equivalents 2,698 2,288 Total c
Slide 18: 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 19: 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 FLAT - 5% FLAT (5)% - FLAT FLAT (3.5-7.49t) Medium & Heavy trucks (20) – (15)% FLAT – 5% ~ (5)% (15) – (10)% (≥ 7.5t) Buses FLAT 5% FLAT FLAT (1) The 27 Europea
Slide 20: 2024E Preliminary Financial Guidance
2024E PRELIMINARY FINANCIAL GUIDANCE EU-IFRS 2024E Guidance Group Adjusted EBIT(1) €900 - 950mn Net Revenues ~ (5)% (including currency translation effects) vs. FY 2023 Industrial Activities Adjusted EBIT(1) €770 - 820mn Free Cash Flow(1) €350 - 400mn Investments(2) ~ €1bn (1) This item is a non-EU-
Slide 21: CEO Takeaway Messages
CEO TAKEAWAY MESSAGES FY 2024E preliminary financial guidance is based on current industry outlook, evolving order backlogs and no signs of unusual levels of order cancellations. Stable or slightly up adjusted EBIT margin driven by positive net price contribution, although at a lower-level vs FY 202
Slide 22: Q4 2023 financials
Q4 2023 financials Contains confidential proprietary and trade secrets information of Iveco Group. Any use of this work without express written consent is strictly prohibited.
Slide 23: Q4 2023 Industry Volume
Q4 2023 INDUSTRY VOLUME Units (% change vs. Q4 2022) Europe(1) South America(2) Rest of the World(3) Worldwide Light Commercial Vehicles +15% (1)% +24% +17% (3.5-7.49t) Medium & Heavy trucks FLAT (12)% +22% +8% (≥ 7.5t) Buses +20% FLAT +5% +8% (1) The 27 European countries where Commercial Vehicles
Slide 24: Industrial Net Revenues
INDUSTRIAL NET REVENUES Split by region and segment, and walk – Q4 2023, €mn otherwise stated 14% 2% % change YoY 3% Europe +18% By region South America (67)% North America +2% 81% €4.8bn Rest of the World +30% +9.5% YoY 20% % change YoY Trucks (1)% 4,355 4,770 10% By segment 53% Buses +45% NET NET
Slide 25: Industrial Adjusted EBIT
INDUSTRIAL ADJUSTED EBIT Walk by segment and driver – Q4 2023, €mn otherwise stated 5.0% 4.3% 187 (23) 368 (121) (44) (71) (67) 9 238 ADJUSTED EBIT PRODUCTION OTHER AND ADJUSTED EBIT VOLUME AND MIX NET PRICING SG&A R&D FX | OTHER Q4 2022 COST(1) ELIMINATIONS Q4 2023 Segments View C&SV 166 (17) 368 (
Slide 26: Industrial Activities FCF, Net Cash and Working Capital
INDUSTRIAL ACTIVITIES FCF, NET CASH AND WORKING CAPITAL Walk and dynamics – Q4 2023, €mn Free Cash Flow €1,249mn Includes Financial Includes ARS charges negative ARS devaluation, and USD- devaluation linked bonds purchases 725 463 (101) 1,432 (101) (428) (16) (16) (106) 1,852 CASH OUT FOR CAPITAL IN
Slide 27: Appendix
APPENDIX
Slide 28: Summary Table (1/2)
SUMMARY TABLE (1/2) Q4 2023 vs. Q4 2022, €mn otherwise stated Profit & Loss Q4 2023 Q4 2022 Change Revenues by segment Q4 2023 Q4 2022 % change CONSOLIDATED Commercial and Specialty Vehicles 4,212 3,819 +10.3% Net revenues 4,877 4,418 +459 Powertrain 1,058 1,056 +0.2% Adjusted EBIT 264 206 +58 Elimi
Slide 29: Summary Table (2/2)
SUMMARY TABLE (2/2) FY 2023 vs. FY 2022, €mn otherwise stated Profit & Loss FY 2023 FY 2022 Change Revenues by segment FY 2023 FY 2022 % change CONSOLIDATED Commercial and Specialty Vehicles 13,778 12,100 +13.9% Net revenues 16,213 14,357 +1,856 Powertrain 4,258 3,960 +7.5% Adjusted EBIT 940 527 +41
Slide 30: Reconciliation Table (1/6)
RECONCILIATION TABLE (1/6) EBIT to Adjusted EBIT by segment of Q4 2023 & Q4 2022 – €mn Unallocated items, Commercial and Total Powertrain eliminations and Financial Services Eliminations Total Specialty Vehicles Industrial Activities Q4 2023 other EBIT 180 66 (43) 203 26 - 229 Adjustments: Restructu
Slide 31: Reconciliation Table (2/6)
RECONCILIATION TABLE (2/6) EBIT to Adjusted EBIT by segment of FY 2023 & FY 2022 – €mn Unallocated items, Commercial and Total Powertrain eliminations and Financial Services Eliminations Total Specialty Vehicles Industrial Activities FY 2023 other EBIT 749 241 (289) 701 136 - 837 Adjustments: Restru
Slide 32: Reconciliation Table (3/6)
RECONCILIATION TABLE (3/6) Adjusted net profit (loss) and Adjusted income tax (expense) benefit to Consolidated Profit (Loss) and Income tax (expense) benefit and calculation of Adjusted diluted EPS and Adjusted ETR €mn otherwise stated Q4 2023 Q4 2022 FY 2023 FY 2022 Profit (Loss) (20) 91 234 159 (
Slide 33: Reconciliation Table (4/6)
RECONCILIATION TABLE (4/6) €mn Q4 2023 Q4 2022 FY 2023 FY 2022 Acquisition of full ownership of Nikola Iveco Europe GmbH - - 43 - Restructuring costs 23 9 35 15 Costs related to certain claims arising from the EU Commission’s 2016 Antitrust 7 - 19 - settlement and FPT emissions investigation closure
Slide 34: Reconciliation Table (5/6)
RECONCILIATION TABLE (5/6) Total (Debt) to Net Cash (Debt) Consolidated Industrial Activities Financial Services €mn 31st December 2023 31st December 2022 31st December 2023 31st December 2022 31st December 2023 31st December 2022 Third party (debt) (5,768) (4,156) (1,191) (739) (4,577) (3,417) (1)
Slide 35: Reconciliation Table (6/6)
RECONCILIATION TABLE (6/6) Industrial Free Cash Flow €mn Q4 2023 Q4 2022 FY 2023 FY 2022 Net cash provided by (used in) Operating Activities 1,641 1,428 1,336 1,407 - Cash flows from Operating Activities of Financial Services net of eliminations 52 57 51 (9) = Operating cash flow of Industrial Activ
Slide 36: Book-to-Bill (1/2)
BOOK-TO-BILL (1/2) Book-to-Bill (x) Order intake (#units) Deliveries (#units) Q4 2023 Q4 2022 YoY % Q4 2023 Q4 2022 YoY % Q4 2023 Q4 2022 YoY % Trucks 0.52 0.84 (38)% 20,287 31,521 (36)% 39,275 37,722 4% LCV 0.54 0.87 (38)% 15,646 23,004 (32)% 28,777 26,300 9% Europe M&H 0.44 0.75 (41)% 4,641 8,517
Slide 37: Book-to-Bill (2/2)
BOOK-TO-BILL (2/2) Book-to-Bill (x) Order intake (#units) Deliveries (#units) FY 2023 FY 2022 YoY % FY 2023 FY 2022 YoY % FY 2023 FY 2022 YoY % Trucks 0.72 1.01 (28)% 91,539 119,653 (23)% 126,272 118,333 7% LCV 0.79 1.00 (21)% 71,053 87,875 (19)% 89,530 87,445 2% Europe M&H 0.56 1.03 (46)% 20,486 31
Slide 38: 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 39: 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 40: 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 41: Thank You
THANK YOU IVECO*GROUP WE GO BEYOND