Gestamp Automocion S.a. · BME:GEST
Gestamp Automocion — FY2017 Earnings Presentation
24 slides from Gestamp Automocion's earnings presentation, Feb 26, 2018
Slide 1: Presentation of FY 2017 Results
Presentation of FY 2017 Results February 26th, 2018 © Gestamp 2018
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, 2017. 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 Q4 and FY 2017 Financial Overview Closing Remarks © Gestamp 2018 3
Slide 4: Key Highlights for Q4 and FY 2017
Key Highlights for Q4 and FY 2017 • Fourth quarter results for 2017 have been good despite increased FX headwinds as Revenue and EBITDA grew by 4.5% and 8.1% at constant FX, respectively − Good performance across almost all regions especially in Mercosur, Eastern Europe and Asia − Recovery of operat
Slide 5: Gestamp's Financial Performance During Q4 2017
Gestamp’s Financial Performance During Q4 2017 (In € MM) Q4 2016 Q4 2017 Total Revenue 2,192 2,197 EBITDA 256 262 EBIT 159 164 Net Income 92 87 Q4 2017 Revenue and EBITDA increased by 4.5% and 8.1% respectively at constant FX © Gestamp 2018 5
Slide 6: Gestamp's Financial Performance During FY 2017
Gestamp’s Financial Performance During FY 2017 (In € MM) FY 2016 FY 2017 Total Revenue 7,549 8,202 EBITDA 841 890 EBITDA margin (%) 11.1% 10.9% EBIT 463 485 EBIT margin (%) 6.1% 5.9% Net Income 221 240 Net debt 1,633 1,898 2017 Revenue and EBITDA increased by 11.0% and 8.8% respectively at constant
Slide 7: Status Update on 2017 Targets
Status Update on 2017 Targets Guidance 2017 New Guidance 2017 2017 Results (at Constant FX) (at Constant FX) (at Constant FX) Revenue growth Revenue growth Revenues 11.0% 7-9% 7-9% EBITDA growth EBITDA growth EBITDA 8.8% 9-11% 5-8% < 2.0x ~ 2.0x Leverage 2.1x Net debt / EBITDA Net debt / EBITDA Guid
Slide 8: Automotive Growth FY 2017 vs. FY 2016
Automotive Growth FY 2017 vs. FY 2016 Gestamp Revenue Growth at Constant FX vs. Market Production Growth in Gestamp’s Footprint Eastern Europe 27.9% NAFTA Western Europe 6.9% 9.9% Market Gestamp -1.9% -3.3% 0.0% Market Gestamp Asia Market Gestamp 8.4% Mercosur 2.1% 40.8% Market Gestamp 20.8% Total i
Slide 9: OEMs Focus on CASE to Increase Opportunities for Global Suppliers
OEMs Focus on CASE to Increase Opportunities for Global Suppliers CASE is not disruptive for Gestamp’s business Lightweight & Safety continues to be key OEMs Confirmation / acceleration of OEM´s strategy towards CASE(1) More Opportunities for OEMs need to Key Strategic Increase Outsourcing Suppliers
Slide 10: Delivering on Strategic Initiatives
Delivering on Strategic Initiatives Further strengthening relationships Strategically close to OEMs in terms of Enhance Gestamp’s relationships with with local Chinese & Indian OEMs footprint and product development Japanese OEMs globally JV with BHAP in China Entry into Morocco Plant Acquisition in
Slide 11: Financial Performance
Financial Performance EBITDA(1) Net Income Considerations • Strong performance, ahead of +€6m +€49m -€5m +€19m guidance, despite one-off costs in €92m NAFTA announced in September €890m €87m €240m €262m ‒ EBITDA of €890m in 2017 or €256m €841m €221m 8.8% growth at constant FX ‒ Increase of Net Incom
Slide 12: Agenda
Agenda Key Highlights for Q4 and FY 2017 Financial Overview Closing Remarks © Gestamp 2018 12
Slide 13: Revenue and EBITDA Summary Overview
Revenue and EBITDA Summary Overview (In € MM) Considerations • Moderate Q4 Revenue growth − Increased FX headwinds 8,202 − Moderation of tooling revenues vs. very 7,549 strong Q4 2016 2,192 2,197 Revenue • Solid FY revenue growth − Strong growth in Mercosur and Eastern Europe and solid performance i
Slide 14: Western Europe Financial Overview
Western Europe Financial Overview (In € MM) Considerations • Q4 Revenue impacted by 4,011 3,704 − Lower tooling revenues 955 952 − FX headwinds in the UK Revenue • FY Revenue growth of 8.3% or 9.9% at constant FX − Solid double digit growth across most Q4 2016 Q4 2017 FY 2016 FY 2017 countries Growt
Slide 15: Eastern Europe Financial Overview
Eastern Europe Financial Overview (In € MM) Considerations • Q4 Revenue 1,043 − Strong performance in almost all 4.9% 859 countries partially offset by lower 329 345 tooling revenues than in Q4 2016 Revenue • FY Revenue growth of 21.4% or 27.9% at constant FX − Continuing growth in activity particul
Slide 16: NAFTA Financial Overview
NAFTA Financial Overview (In € MM) Considerations -4.1% • Q4 and FY Revenue − In line with expectations but impacted by -13.9% 1,546 1,483 − Change-over of large programs Revenue 471 resulting in lower volumes in 406 certain models in the US and Mexico − FX headwinds throughout the year, Q4 2016 Q4
Slide 17: Mercosur Financial Overview
Mercosur Financial Overview (In € MM) Considerations • Strong Q4 revenue growth 562 • FY Revenue growth of 40.1% or 40.8% at constant FX 401 Revenue 170 − Strong above-market growth: new 121 program wins entering ramp-up phase − Increase of production volumes in existing and new programs Q4 2016 Q4
Slide 18: Asia Financial Overview
Asia Financial Overview (In € MM) Considerations • Q4 Revenue growth of 6.9% at constant FX 1,102 • FY Revenue growth of 6.2% or 8.4% at 1,038 constant FX 316 324 Revenue − Good performance in India in our Pune plants − Moderate growth in China impacted by FX Q4 2016 Q4 2017 FY 2016 FY 2017 headwind
Slide 19: Capital Expenditure Overview FY 2017
Capital Expenditure Overview FY 2017 Capex Breakdown Considerations (In € MM) • During the year of 2017 Gestamp has continued to make significant investments to Capex as % Capex as % 9.6% 9.7% support high-quality projects which provide of revenues of revenues high revenue visibility and are expecte
Slide 20: Net Financial Debt Position
Net Financial Debt Position Net Financial Debt / EBITDA (x) Considerations • Increase in Net Debt in 2017 mainly driven by the high number of projects under construction or in 2,15 2,13 ramp-up 1,96 1,94 − All projects are backed by firm orders providing a high degree of visibility − Projects under
Slide 21: Outlook for 2018
Outlook for 2018 Guidance 2018 (Constant FX) Revenues Revenue growth: High single digit EBITDA EBITDA growth: Slightly higher than revenues Capex In line with 2017 Leverage In line with 2017 Dividend Pay-out ratio: c.30% of Net Income Note: Based on organic growth and on a constant FX basis © Gestam
Slide 22: Agenda
Agenda Key Highlights for Q4 and FY 2017 Financial Overview Closing Remarks © Gestamp 2018 22
Slide 23: Closing Remarks
Closing Remarks • Solid FY 2017 results with strong Revenue and EBITDA growth despite FX headwinds as well as the already announced operational issues in NAFTA − The operations in NAFTA are well on track and performing in line with the action plan established at the time of the performance update in
Slide 24: Working for a Safer and Lighter Car
Working for a Safer and Lighter Car www.gestamp.com Investor relations Phone: +34 91 275 28 72 Email: investorrelations@gestamp.com Web: www.gestamp.com © Gestamp 2018 © Gestamp 2018