Iveco Group Nv · MIL:IVG
Iveco Group Nv — H1 2023 Earnings Presentation
40 slides from Iveco Group Nv's earnings presentation, Aug 2, 2023
Slide 1: Q2 & H1 2023 results
Q2 & H1 2023 results Turin, Italy – 2nd August 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS All statements other than statements of historical fact contained in the slides presented today, including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per
Slide 3: CEO Executive Summary
CEO EXECUTIVE SUMMARY • Strong profitability improvements across all segments, particularly in Trucks, with a steadily improving re-positioning of our vehicles supported a strong price realization more than offsetting cost. Heavy trucks EBIT further improved on a stand-alone basis • Q2 2023 Consolid
Slide 4: Main Achievements in Q2 2023
MAIN ACHIEVEMENTS IN Q2 2023 Intent to transfer Nordic retail commercial May June operations to Hedin Mobility Group by the New partnership phase with Nikola IDV wins major Swedish Armed Forces end of 2023 Corporation: Iveco Group assumed 100% contract for up to 3,000 Light Multi-Purpose ownership o
Slide 5: Subsequent Events
SUBSEQUENT EVENTS 3rd July 6th July 12th July GATE (Green & Advanced Transport Automated truck by IVECO and Plus now GTT (Gruppo Torinese Trasporti) with Ecosystem) opens the door to the future on public roads in Germany IVECO BUS, ENEL X and Iveco Orecchia • The launch of GATE in Italy provides a t
Slide 6: Sustainability Highlights in Q2 2023
SUSTAINABILITY HIGHLIGHTS IN Q2 2023 IVG published its 2022 Sustainability Report Essentials, New MSCI rating assessment upgraded to 'A' from 'BBB’ an executive summary of its Sustainability Report available in The upgrade is mainly driven by increased disclosure in labour 8 languages management and
Slide 7: Q2 2023 Industry Volume
Q2 2023 INDUSTRY VOLUME Units (% change vs. Q2 2022) Europe(1) South America(2) Rest of the World(3) Worldwide Light Commercial Vehicles +12% (21)% +14% +11% (3.5-7.49t) Medium & Heavy trucks +18% (23)% +38% +19% (≥ 7.5t) Buses +1% +37% +7% +11% (1) The 27 EU countries where Commercial Vehicles comp
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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Iveco Group's inventory Third party dealer inventory Retails Production >80% o
Slide 9: Order Intake and Deliveries
ORDER INTAKE AND DELIVERIES Units LCV M&H Buses (3.5-7.49t) (≥ 7.5t) 1.22 0.74 1.33 0.61 1.14 0.76 Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Book-to-Bill (x) Order intake aligned with 20
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) 61,4% 49,3% 30,4% 8,5% 13,5% 7,7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2019 2020 2021 2022 20
Slide 11: Q2 2023 financials
Q2 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. Q2 2022 for Profit & Loss and Cash Flow items, vs. 31 st December 2022 for Balance Sheet items) Consolidated Industrial €4.2bn Net Revenues €4.1bn €0.57 Adjusted diluted EPS(1) +24.0% +23.4% +€0.37 €301mn Adjusted EBIT(1) €266mn €131mn Industrial Free Cash Flow(1) +€183
Slide 13: Industrial Net Revenues
INDUSTRIAL NET REVENUES Split by region and segment, and walk – Q2 2023, €mn otherwise stated 11% 2% % change YoY 11% Europe +33% By region South America +0% North America +4% 76% €4.1bn Rest of the World +0% +23.4% YoY 24% % change YoY Trucks +32% 3,329 4,108 6% By segment 59% Buses +17% NET NET VO
Slide 14: Industrial Adjusted EBIT
INDUSTRIAL ADJUSTED EBIT Walk by segment and driver – Q2 2023, €mn otherwise stated 6.5% 2.7% 91 87 367 (122) (19) (26) (94) (17) 266 ADJUSTED EBIT PRODUCTION OTHER AND ADJUSTED EBIT VOLUME AND MIX NET PRICING SG&A R&D FX | OTHER Q2 2022 COST(1) ELIMINATIONS Q2 2023 Segments View C&SV 78 84 367 (132
Slide 15: Financial Services
FINANCIAL SERVICES Q2 & June 2023, €mn otherwise stated Adjusted EBIT Equity and Return on Assets(1) (2) 2,5% 2,3% 2,1% 2,1% 2,3% 1,7% 1,7% 1,9% 1,8% 1,9% Q2 2023 35 789 778 811 743 740 752 768 724 725 723 Q2 2022 27 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 Equity RoA Managed portfolio and Retai
Slide 16: Industrial Net Cash, Working Capital and FCF
INDUSTRIAL NET CASH, WORKING CAPITAL AND FCF Walk and dynamics – Q2 2023, €mn Industrial FCF €131mn 1,103 470 (74) 46 (72) (182) (57) (21) (47) 1,166 CAPITAL INCREASES, IND. NET CASH IA ADJUSTED CASH FOR INTEREST Δ IN WORKING Δ IN PROVISIONS PP&E CAPEX(2) AND IND. NET CASH OTHER CHANGES DIVIDENDS AN
Slide 17: Debt Maturity Profile and Available Liquidity
DEBT MATURITY PROFILE AND AVAILABLE LIQUIDITY June 2023, €mn Available Liquidity 3.764 Bank debt Capital market Undrawn medium-term committed unsecured credit lines Cash & marketable securities (1) €mn 30th June 2023 31st December 2022 2.006 Cash and cash equivalents (2) 1,701 2,288 Total cash matur
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: 2023E Preliminary Industry Volume Outlook
2023E PRELIMINARY INDUSTRY VOLUME OUTLOOK Units (% change vs. FY 2022) Europe(1) South America(2) Rest of the World(3) Worldwide Light Commercial Vehicles +10-15% ~ (15)% +5% +5-10% (3.5-7.49t) Medium & Heavy trucks +10% ~ (20)% +15% +10% (≥ 7.5t) Buses ~ +10% ~ Flat% +5-10% ~ +5% (1) The 27 EU coun
Slide 20: 2023E Preliminary Financial Guidance
2023E PRELIMINARY FINANCIAL GUIDANCE EU-IFRS Previous 2023 Guidance New 2023 Guidance Group Adjusted EBIT(1) €600-640mn €750-800mn Net Revenues +3-5% +5-8% (including currency translation effects) vs. FY 2022 vs. FY 2022 Industrial Activities Adjusted EBIT(1) €510-550mn €650-700mn SG&A ~ 6.0% ~ 6.0%
Slide 21: CEO Takeaway Messages
CEO TAKEAWAY MESSAGES Our further upgraded financial guidance is based on current visibility and considers still potential impacts from pricing dynamics in the fourth quarter and continuous supply chain issues. Transactions already announced as well as FY projected shares buy-backs are included in t
Slide 22: H1 2023 financials
H1 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: H1 2023 Industry Volume
H1 2023 INDUSTRY VOLUME Units (% change vs. H1 2022) Europe(1) South America(2) Rest of the World(3) Worldwide Light Commercial Vehicles +10% (14)% (0.4)% +6% (3.5-7.49t) Medium & Heavy trucks +19% (12)% +29% +18% (≥ 7.5t) Buses +6% +45% +7% +14% (1) The 27 EU countries where Commercial Vehicles com
Slide 24: Industrial Net Revenues
INDUSTRIAL NET REVENUES Split by region and segment, and walk – H1 2023, €mn otherwise stated 12% % change YoY 2% 11% Europe +24% By region South America +6% North America +8% 75% €7.4bn Rest of the World (3)% +17.3% YoY 26% % change YoY Trucks +22% 6,339 7,436 By segment 6% 58% Buses +16% NET VOLUM
Slide 25: Industrial Adjusted EBIT
INDUSTRIAL ADJUSTED EBIT Walk by segment and driver – H1 2023, €mn otherwise stated 5.4% 2.7% 173 116 624 (251) (44) (43) (160) (16) 400 ADJUSTED EBIT PRODUCTION OTHER AND ADJUSTED EBIT VOLUME AND MIX NET PRICING SG&A R&D FX | OTHER H1 2022 COST(1) ELIMINATIONS H1 2023 Segments View C&SV 171 104. 62
Slide 26: Industrial Net Cash and Working Capital
INDUSTRIAL NET CASH AND WORKING CAPITAL Walk and dynamics – H1 2023, €mn Industrial FCF €462mn 1,727 798 (102) (500) (284) (329) (45) (21) (78) 1,166 CAPITAL INCREASES, NET IND. CASH IA ADJUSTED CASH FOR INTEREST Δ IN WORKING Δ IN PROVISIONS PP&E CAPEX(2) AND IND. NET CASH OTHER CHANGES DIVIDENDS AN
Slide 27: Appendix
Appendix Contains confidential proprietary and trade secrets information of Iveco Group. Any use of this work without express written consent is strictly prohibited.
Slide 28: Summary Table (1/2)
SUMMARY TABLE (1/2) Q2 2023 vs. Q2 2022, €mn otherwise stated Profit & Loss Q2 2023 Q2 2022 Change Revenues by segment Q2 2023 Q2 2022 % change CONSOLIDATED Commercial and Specialty Vehicles 3,563 2,790 +27.7% Net revenues 4,180 3,371 +809 Powertrain 1,135 1,023 +10.9% Adjusted EBIT 301 118 +183 Eli
Slide 29: Summary Table (2/2)
SUMMARY TABLE (2/2) H1 2023 vs. H1 2022, €mn otherwise stated Profit & Loss H1 2023 H1 2022 Change Revenues by segment H1 2023 H1 2022 % change CONSOLIDATED Commercial and Specialty Vehicles 6,368 5,294 +20.3% Net revenues 7,579 6,419 +1,160 Powertrain 2,248 1,998 +12.5% Adjusted EBIT 463 220 +243 E
Slide 30: Reconciliation Table (1/6)
RECONCILIATION TABLE (1/6) EBIT to Adjusted EBIT by segment of Q2 2023 & Q2 2022 – €mn Unallocated items, Commercial and Total Powertrain eliminations and Financial Services Eliminations Total Specialty Vehicles Industrial Activities Q2 2023 other EBIT 248 64 (58) 254 40 - 294 Adjustments: Restructu
Slide 31: Reconciliation Table (2/6)
RECONCILIATION TABLE (2/6) EBIT to Adjusted EBIT by segment of H1 2023 & H1 2022 – €mn Unallocated items, Commercial and Total Powertrain eliminations and Financial Services Eliminations Total Specialty Vehicles Industrial Activities H1 2023 other EBIT 373 125 (171) 327 75 - 402 Adjustments: Restruc
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 Q2 2023 Q2 2022 H1 2023 H1 2022 Profit (Loss) 150 36 160 21 (a)
Slide 33: Reconciliation Table (4/6)
RECONCILIATION TABLE (4/6) €mn Q2 2023 Q2 2022 H1 2023 H1 2022 Acquisition of full ownership of Nikola Iveco Europe GmbH - - 43 - Costs related to certain claims arising from the EU Commission’s 2016 antitrust settlement 5 - 12 - Restructuring costs 6 3 8 4 Spin-off costs 1 6 3 10 Impacts from Russi
Slide 34: Reconciliation Table (5/6)
RECONCILIATION TABLE (5/6) Total (Debt) to Net Cash (Debt) Consolidated Industrial Activities Financial Services €mn 30th June 2023 31st December 2022 30th June 2023 31st December 2022 30th June 2023 31st December 2022 Third party (debt) (4,391) (4,156) (722) (739) (3,669) (3,417) (1) Intersegment n
Slide 35: Reconciliation Table (6/6)
RECONCILIATION TABLE (6/6) Industrial Free Cash Flow €mn Q2 2023 Q2 2022 H1 2023 H1 2022 Net cash provided by (used in) Operating Activities 402 113 (102) 12 - Cash flows from Operating Activities of Financial Services net of eliminations (32) (46) 14 (9) = Operating cash flow of Industrial Activiti
Slide 36: Book-to-Bill (1/2)
BOOK-TO-BILL (1/2) Book-to-Bill (x) Order intake (#units) Deliveries (#units) Q2 2023 Q2 2022 YoY % Q2 2023 Q2 2022 YoY % Q2 2023 Q2 2022 YoY % Trucks 0.68 1.29 (47)% 24,720 34,189 (28)% 36,240 26,536 +37% LCV 0.75 1.23 (39)% 19,443 24,467 (21)% 26,047 19,879 +31% Europe M&H 0.52 1.46 (65)% 5,277 9,
Slide 37: Book-to-Bill (2/2)
BOOK-TO-BILL (2/2) Book-to-Bill (x) Order intake (#units) Deliveries (#units) H1 2023 H1 2022 YoY % H1 2023 H1 2022 YoY % H1 2023 H1 2022 YoY % Trucks 0.86 1.23 (30)% 51,171 65,082 (21)% 59,734 52,956 +13% LCV 0.93 1.16 (20)% 38,988 47,358 (18)% 41,959 40,982 +2% Europe M&H 0.69 1.48 (54)% 12,183 17
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