Slide 1: Presentation of Q1 2018 Results
Presentation of Q1 2018 Results May 7th, 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 March 31, 2018. 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 li
Slide 3: Agenda
Agenda Key Highlights for Q1 2018 Financial Overview Closing Remarks © Gestamp 2018 3
Slide 4: Key Highlights for Q1 2018
Key Highlights for Q1 2018 • First quarter results for 2018 have been positive, showing a favorable evolution of our industrial operations in line with what we anticipated during 4Q 2017 • Even if Revenues in the quarter have been affected by weaker auto markets, FX headwinds and less tooling sales,
Slide 5: Gestamp's Financial Performance in Q1 2018
Gestamp’s Financial Performance in Q1 2018 (In €m) Q1 2017 Q1 2018 Total Revenue 2,096 2,058 EBITDA 222 231 EBITDA margin (%) 10.6% 11.2% EBIT 120 129 EBIT margin (%) 5.7% 6.3% Net Income 55 63 Net debt 1,980 2,100 Q1 2018 Revenue increased by 3.8% at constant FX and EBITDA increased by 10.1% at con
Slide 6: Revenue Considerations for Q1 2018
Revenue Considerations for Q1 2018 • Revenue growth for the first quarter of 2018 was significantly impacted by devaluation of our main currencies against the Euro, lower tooling sales and working days seasonality ‒ Revenue growth of > 11% when excluding the aforementioned impacts Q1 2018 Revenue Gr
Slide 7: Global Auto Market Update
Global Auto Market Update • Global light vehicle production declined 0.7% during Q1 2018 (vs. Q1 2017) impacted by the number of working days but with good performance expected for the full year 2018 at a 2.4% growth rate ‒ Growth in Q1 mainly driven by South America (+19.0%), Eastern Europe (+11.1%
Slide 8: Automotive Growth Q1 2018 vs. Q1 2017
Automotive Growth Q1 2018 vs. Q1 2017 Gestamp Revenue Growth at Constant FX vs. Market Production Growth in Gestamp’s Footprint Eastern Europe 34.0% NAFTA Western Europe 1.8% Market Gestamp -1.5% -2.5% -5.2% Market Gestamp -2.9% Market Gestamp Asia 0.5% Mercosur -1.2% 42.5% Market Gestamp Total in O
Slide 9: Financial Performance
Financial Performance EBITDA(1) Net Income Considerations (In €m) (In €m) • EBITDA performance in line with + €9m expectations, despite FX impact + €8m and seasonality €231m €222m ‒ EBITDA of €231m in Q1 18 or €63m €55m 10.1% growth at constant FX ‒ Increase of Net Income by €8m to €63m in Q1 2018 Q
Slide 10: Agenda
Agenda Key Highlights for Q1 2018 Financial Overview Closing Remarks © Gestamp 2018 10
Slide 11: Revenue and EBITDA Summary Overview
Revenue and EBITDA Summary Overview Considerations (In €m) • Revenue increase of 3.8% which turns into a 1.8% decrease due to FX impacts − Currency depreciation especially in the US, 2,096 2,058 Mercosur, Turkey and China Revenue − Significantly lower tooling revenues vs. very strong Q1 2017 especia
Slide 12: Western Europe Financial Overview
Western Europe Financial Overview Considerations (In €m) • Revenue decrease of 3.1% impacted by FX 1,100 − Significantly lower tooling revenues 1,067 − Mid-high single digit growth excluding the impact of tooling and FX Revenue − Excluding tooling: solid growth in Spain, Portugal and France due to r
Slide 13: Eastern Europe Financial Overview
Eastern Europe Financial Overview Considerations (In €m) • Revenue growth of 27.2% or 34.0% at constant FX 285 − Strong performance in almost all countries in 224 the region Revenue − Continued growth as a result of − Ramp-ups in Turkey (FCA and Ford); Poland (VW Crafter); Hungary (Audi); Romania (D
Slide 14: NAFTA Financial Overview
NAFTA Financial Overview Considerations (In €m) • Very high impact of FX and tooling • Revenue decreased by more than 10% due to FX headwinds 393 • Excluding tooling our sales performance would have been positive Revenue − Planned change-over of large programs 330 resulting in lower volumes − Projec
Slide 15: Mercosur Financial Overview
Mercosur Financial Overview Considerations (In €m) • Revenue growth of 12.3% or 42.5% at constant FX − Strong above-market growth at constant FX as a result of new program wins entering ramp-up 131 Revenue − Growth partially offset by FX depreciation 117 Q1 2017 Q1 2018 Growth at constant FX: 42.5%
Slide 16: Asia Financial Overview
Asia Financial Overview Considerations (In €m) • Revenue increase of 0.5% at constant FX with a c. 7% drag from FX 263 − Similar performance in all areas: China, India Revenue and Korea 246 • Latest market forecasts show an improvement of vehicle production in China Q1 2017 Q1 2018 Growth at constan
Slide 17: Capital Expenditure Overview Q1 2018
Capital Expenditure Overview Q1 2018 Capex Breakdown Considerations (In €m) • During the first quarter of 2018 Gestamp has Capex as % Capex as % 10.7% 13.5% of revenues of revenues continued to make significant investments to support high-quality projects which provide 278 high revenue visibility an
Slide 18: Net Financial Debt Position
Net Financial Debt Position Net Financial Debt / EBITDA (x) Net Financial Debt / EBITDA (x) — Q1 Seasonality Net Financial Net Financial Debt (€m) €1,561m €1,629m €1,980m €2,100m Debt Delta (€m) +€347m +€202m 2.3 2.3 2.3 2.3 2.3 2.1 2.1 1.9 Q1 2015A Q1 2016A Q1 2017A Q1 2018A Q4 2016A Q1 2017A Q4 20
Slide 19: Debt Profile Extended
Debt Profile Extended Gross Debt Maturity Profile: 31st March Pro-forma(1) Managing Debt Profile (In €m) 613 613 Maturities • Key guidelines 586 586 520 Pro-forma 497 − Extending gross debt maturity 417 − Amortizing short term debt 392 392 362 Gap to accommodate 333 298 future extensions • Key actio
Slide 20: Agenda
Agenda Key Highlights for Q1 2018 Financial Overview Closing Remarks © Gestamp 2018 20
Slide 21: Closing Remarks
Closing Remarks • Macro and Auto sector environment during the first three months of 2018 have been challenging, with currency depreciations vs. the Euro and weaker than expected market dynamics with lower production volumes in some regions • In that context, Gestamp has experienced a positive quart
Slide 22: 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