Iveco Group Nv · MIL:IVG
Iveco Group Nv — Q1 2022 Earnings Presentation
33 slides from Iveco Group Nv's earnings presentation, Apr 26, 2022
Slide 1: Iveco Group N.V. Q1 2022 Financial Results
Iveco Group N.V. | Q1 2022 Financial Results Turin, Italy – 26th April 2022
Slide 2: Safe Harbor Statement and Disclosures
Safe Harbor Statement and Disclosures 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 (o
Slide 3: CEO Executive Summary
Q1 2022 | CEO Executive Summary Solid quarterly performance despite a challenging environment with continuous supply chain concerns, raw material price increases and component shortages (particularly semiconductors) Consolidated Net Revenues were up almost 2% vs. Q1 2021, and Adj. EBIT margin was at
Slide 4: Main facts
Q1 2022 | Main facts New Investment plan of 1bn Reais to promote the sustainable growth in SA The contribution is intended for the development of products and services, the expansion of the dealer network, the locating parts and components, improving processes productivity and increased hiring IVECO
Slide 5: Industry Volume
Q1 2022 | Industry Volume Industry statistics in units (% change vs. Q1 2021) Europe (*) South America (*) Rest of World (*) Worldwide LCV (20%) 4% (13%) (17%) (3.5-7.49T) M&H (1%) 3% (1%) FLAT (>7.5T) Buses (3%) 2% 4% 2% NOTE: Total Industry Volume % change Q1 2022 vs. Q1 2021 reflecting aggregate
Slide 6: Channel Inventory
Q1 2022 | Channel Inventory Iveco Group and Dealer units statistics LCV M&H (3.5-7.49T) (>7.5T) Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Q122 COMPANY INVENTORY THIRD PARTY DEALER INVENTORY RETAIL PRODUCTION Q1 2022 Financial Results | 26th April 2022 6
Slide 7: WW - Deliveries and Order Intake
Q1 2022 | WW - Deliveries and Order Intake Iveco Group | Trucks and Buses units statistics LCV M&H (3.5-7.49T) Buses (>7.5T) 1.87 1.05 1.51 1.39 1.39 0.98 Deliveries Order intake Deliveries Order intake Deliveries Order intake Deliveries Order intake Deliveries Order intake Deliveries Order intake Q
Slide 8: EU Preliminary Market share
Q1 2022 | EU Preliminary Market share Registration units LCV M&H (3.5-7.49T) (>7.5T) Supply Chain and 20,0% component shortages 70,0% 63,4% 18,0% 60,0% 16,0% 14,0% 50,0% 12,0% 42,7% 40,0% 10,0% 31,6% 30,0% 8,0% 7,0% 6,0% 20,0% 15,5% 4,0% 6,4% 10,0% 2,0% 0,0% 0,0% Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q
Slide 9: DRIVE Operational Excellence Programme
DRIVE | Operational Excellence Programme Groupwide programme to lift profitability Commercial Product, Cost and Quality • Grow Iveco customer and connected services offering • Redesign the extended logistics ecosystem • Roll out commercial excellence initiative • De-complexity starting from manufact
Slide 10: Iveco Group 2022 Sustainability Essentials
Q1 2022 | Iveco Group 2022 Sustainability Essentials Selected information on Iveco Group’s: • Sustainability strategy • Strategic Sustainability Targets • ESG Governance • Main KPIs (occupational safety, waste recovered, CO2 emissions and energy consumption) • Assurance statement by an independent c
Slide 11: Financials | Q1 2022
IVECO*»GROUP Financials | Q1 2022
Slide 12: Financial Summary
Q1 2022 | Financial Summary Financial results presented under IFRS Net Revenues Industrial Free Cash Flow €3.0bn • Industrial Activities Net Revenues were up 1.5% to €3.0bn mainly €(166)mn • €137mn improvement vs. Q1 2021 due to lower seasonal working due to positive price realization and better mix
Slide 13: Industrial Activities Net Revenues
Q1 2022 | Industrial Activities Net Revenues Split by region and segment €3.0bn 15% % chg. Y-o-Y 1.5% 28% 2% 11% By Business By Region Unit 57% 5% 72% 10% % Chg. YoY % Chg. YoY Europe (2%) Trucks 6% South America 68% Buses 21% North America 22% Specialty Vehicles 4% Rest of the World (11%) Powertrai
Slide 14: Industrial Activities Adj. EBIT
Q1 2022 | Industrial Activities Adj. EBIT Walk by segment & driver IFRS (€m) 3.9% 2.7% 116 2 116 (119) (10) 10 (10) (23) 82 UNALLOCATED, ADJUSTED EBIT ADJUSTED EBIT VOL & MIX PRICING NET (1) PRODUCTION COST SG&A R&D FX | OTHER ELIMINATIONS & Q1 2021 Q1 2022 OTHER Segments View C&SV 59 39 116 (104) (
Slide 15: Financial Services
Q1 2022 | Financial Services Adj EBIT and Managed Portfolio (€m) Adjusted EBIT Equity and Profitability Ratio 744 740 723 725 723 Q1 2022 20 1,9% 1,8% 1,9% 1,7% 1,7% Q1 2021 18 Q1 Q2 Q3 Q4 Q1 2021 2022 Financial Services Equity ROA (**) Managed Portfolio (*) & Retail Originations(**) Delinquencies o
Slide 16: Net Industrial Cash / (Debt) walk
Q1 2022 | Net Industrial Cash / (Debt) walk Focus on Working Capital dynamics Industrial FCF (166) IFRS (€m) 1,063 279 (41) (127) (175) (96) (6) - (132) 765 CASH INTEREST CHANGE IN WORKING CHANGE IN PROVISIONS & DIVIDENDS & EQUITY 31st Dec 2021 IA | ADJUSTED EBITDA AND TAXES CAPITAL OTHERS (1) INVES
Slide 17: Debt Maturity Profile
31 March 2022 | Debt Maturity Profile Focus on Group Available Liquidity Available Liquidity (€mn) 3.390 31st March IFRS – €m 2022 Debt Maturity Cash and cash equivalents 1.7 €1.1bn Undrawn committed facilities 1.6 575 500 Other current financial assets (1) 0.0 15 0 0 15 Available Liquidity 3.4 As o
Slide 18: CEO Closing Remarks
IVECO*»GROUP CEO | Closing Remarks
Slide 19: FY 2022E Preliminary Industry Outlook
FY 2022E | Preliminary Industry Outlook Units (% change vs. FY 2021) Europe (*) South America (*) Rest of World (*) Worldwide LCV FLAT (10%) (15%) (5%) (3.5-7.49T) M&H FLAT – 5% 5% - 10% (15%) (5%) (>7.5T) Buses 5% ~ 30% ~ 5% 10% Preliminary Industry outlook based on current visibility. Significant
Slide 20: FY 2022E Preliminary Financial Outlook
FY 2022E | Preliminary Financial Outlook Euro IFRS FY 2022E Group Adj EBIT €350mn - €370mn Industrial Activities Net Revenues Flat to up 3% (including currency translation effects) vs. FY 2021 SG&A < 6.5% over Net Sales Net Industrial Cash (1) Slightly up vs. 31 December 2021 Preliminary Financial o
Slide 21: CEO Takeaway messages
CEO | Takeaway messages Q2 2022 is expected to be the quarter most severely impacted by supply chain issues and component shortages. FY 2022 product cost expected to be substantially offset by pricing The operational excellence programme – DRIVE – is proceeding in each of the main four categories pr
Slide 22: Appendix
IVECO*»GROUP Appendix
Slide 23: Financial Services
Financial Services Main economic and financial flows between Industrial Activities and Financial Services Wholesales Retail • Wholesale Financing and Factoring: FS purchases from Industrial Activities the receivables originated • Retail Financing: FS provides loans, leasing and rental to end when a
Slide 24: Reconciliation of EBIT to Adjusted EBIT by segment
Reconciliation of EBIT to Adjusted EBIT by segment Q1 2022 vs. Q1 2021 Q1 2022 Commercial and Unallocated items, Total €m Powertrain Financial Services Eliminations Total Specialty Vehicles eliminations and other Industrial Activities EBIT 61 45 (63) 43 (2) - 41 Adjustments: Restructuring costs 1 -
Slide 25: Reconciliation table
Q1 2022 | Reconciliation table Q1 2022 vs. Q1 2021 Reconciliation of Adj. net profit / (loss) and Adj. income tax (expense) benefit to Consolidated Profit/(loss) and Income tax (expense) benefit and calculation Adj. ETR under IFRS IFRS – €m Q1 2022 (1) Q1 2021 (1) Profit (Loss) (15) 67 (a) Adjustmen
Slide 26: Reconciliation table
Q1 2022 | Reconciliation table Q1 2022 vs. Q1 2021 Reconciliation of Adj. net profit / (loss) and Adj. income tax (expense) benefit to Consolidated Profit/(loss) and Income tax (expense) benefit and calculation Adj. ETR under IFRS IFRS – €m Q1 2022 Q1 2021 (a) Adjustments impacting Profit/(loss) bef
Slide 27: Reconciliation table
31st March 2022 | Reconciliation table Total (Debt) to Net Cash / (Debt) IFRS (€mn) Consolidated Industrial Activities Financial Services 31st March 31st December 31st March 31st December 31st March 31st December 2021 2021 2021 2020 2021 2020 Third party (debt) (3,262) (2,709) (750) (220) (2,512) (2
Slide 28: Reconciliation table
31st March 2022 | Reconciliation table Q1 2022 vs. Q1 2021 IFRS – €mn 31st March 2022 31st December 2021 Cash and cash equivalents 1,738 897 Undrawn committed facilities 1,613 41 Other current financial assets (1) 25 54 Financial receivables from CNH Industrial (2)(*) 14 444 Available Liquidity 3,39
Slide 29: Reconciliation table
Q1 2022 | Reconciliation table Q1 2022 vs. Q1 2021 IFRS – €mn Q1 2022 Q1 2021 Net cash provided by (used in) Operating Activities (101) (194) Cash flows from Operating Activities of Financial Services net of eliminations 37 (20) Operating cash flow of Industrial Activities (64) (214) Investments in
Slide 30: Book to Bill
Book to Bill Q1 2022 vs. Q1 2021 Book to Bill Order intake Deliveries Q1 2022 Q1 2021 ∆ Q1 2022 Q1 2021 ∆ Q1 2022 Q1 2021 ∆ Trucks 1.17 1.92 (39%) 30,893 49,387 (37%) 26,410 25,717 3% Light-duty trucks (LCV) 1.08 2 (46%) 22,891 37,888 (40%) 21,103 18,964 11% Europe Medium and heavy trucks (M&H) 1.51
Slide 31: Non-IFRS Financial Measures
Non-IFRS Financial Measures Iveco Group monitors its operations through the use of several non-IFRS financial measures. Iveco Group’s management believes that these non-IFRS financial measures provide useful and relevant information regarding its operating results and enhance the readers’ ability to
Slide 32: Geographic Information
Geographic Information Financials - The composition of our regions part of the geographic information 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 Caribbea
Slide 33: Investor Relations Team
Investor Relations Team Federico Donati – Head of Investor Relations Luis Cordova – Investor Relations Claudia Zolin – Investor Relations Analyst Enza Marsala – Investor Relations Assistant e-mail: investor.relations@ivecogroup.com website: www.ivecogroup.com