Gestamp Automocion S.a. · BME:GEST
Gestamp Automocion — FY2018 Earnings Presentation
24 slides from Gestamp Automocion's earnings presentation, Feb 28, 2019
Slide 1: FY 2018 Results Presentation
FY 2018 Results Presentation February 28th, 2019 © Gestamp 2019
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, 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
Slide 3: Agenda
Agenda Key Highlights for FY 2018 and Q4 2018 Financial Overview Closing Remarks © Gestamp 2019 3
Slide 4: Key Highlights for FY 2018 and Q4 2018
Key Highlights for FY 2018 and Q4 2018 • Gestamp has achieved its 2018 full year targets for Revenue and EBITDA despite having experienced a more challenging than expected H2 as a result of the underlying market conditions ‒ Revenues increased by 4.2% (10.2% at constant FX) ‒ In terms of profitabili
Slide 5: Global Auto Market Update
Global Auto Market Update • The automotive sector experienced a solid first half of the year with 2.2%(1) growth in global light vehicle production but a challenging second half with a 4.3%(1) drop in volumes (-2.9% in Q3 and -5.6% in Q4)(1) • The 5.6% volume decline during Q4 was mainly driven by t
Slide 6: Automotive Growth FY 2018 vs. FY 2017
Automotive Growth FY 2018 vs. FY 2017 Gestamp Revenue Growth at Constant FX vs. Market Production Growth in Gestamp’s Footprint Eastern Europe 27.3% NAFTA Western Europe 2.9% 17.7% 2.5% Market Gestamp 0.4% -4.2% Market Gestamp Market Gestamp Asia Mercosur -1.5% -4.5% 42.9% Market Gestamp Total in Ou
Slide 7: Gestamp's Financial Performance in Q4 2018
Gestamp’s Financial Performance in Q4 2018 (In €m) Q4 2017 Q4 2018 Total Revenue 2,197 2,392 EBITDA 262 279 EBITDA margin (%) 11.9% 11.7% EBIT 164 161 EBIT margin (%) 7.4% 6.7% Net Income 87 94 Q4 2018 Revenue increased by 13.8% at constant FX(1) and EBITDA increased by 13.2% at constant FX(1) (1) R
Slide 8: Gestamp's Financial Performance in FY 2018
Gestamp’s Financial Performance in FY 2018 (In €m) FY 2017 FY 2018 Total Revenue 8,202 8,548 EBITDA 890 961 EBITDA margin (%) 10.9% 11.2% EBIT 485 527 EBIT margin (%) 5.9% 6.2% Net Income 240 258 Net debt 1,898 2,233 FY 2018 Revenue increased by 10.2% at constant FX(1) and EBITDA increased by 15.8%
Slide 9: Financial Performance
Financial Performance EBITDA(1) Net Income Considerations • EBITDA of €961m for FY 2018 or +€17m +€71m +€7m +€18m 15.8% growth at constant FX in line with our targets €262m €279m €961m €240m €258m • Net Income growth of €18m in FY €890m €94m 2018 but negatively impacted by €87m ‒ Increase in financi
Slide 10: Status Update of our Operations in NAFTA
Status Update of our Operations in NAFTA NAFTA Performance – September 2017 NAFTA Performance – Update Information published on September 11th, 2017 • Simultaneous launch of a large number of projects in NAFTA led to operational constraints that resulted in one-off costs incurred in H2 2017 Robust
Slide 11: Agenda
Agenda Key Highlights for FY 2018 and Q4 2018 Financial Overview Closing Remarks © Gestamp 2019 11
Slide 12: Revenue and EBITDA Summary Overview
Revenue and EBITDA Summary Overview (In €m) Considerations • Q4 Revenue increase of 8.9% or 13.8%(1) at constant FX, reaching €2,392m − Growth in Western Europe from higher tooling 2,392 8,202 8,548 and NAFTA, partially offset by a decrease in Asia 2,197 and Mercosur Revenue − FX headwinds especiall
Slide 13: Western Europe Financial Overview
Western Europe Financial Overview (In €m) Considerations • Q4 Revenue increase of 15.7% reaching €1,101m − Very strong contribution from tooling revenues 4,011 4,101 compared with Q4 2017 Revenue 1,101 − Revenue decrease when excluding tooling as still 952 impacted by WLTP • FY Revenue increase of 2
Slide 14: Eastern Europe Financial Overview
Eastern Europe Financial Overview (In €m) Considerations • Q4 Revenue remained flat at €345m − Solid growth across almost all countries offset by 1,187 345 345 1,043 − Strong FX headwinds mainly in Turkey; and Revenue − Lower tooling revenues in Poland & Romania • FY Revenue growth of 13.7% reaching
Slide 15: NAFTA Financial Overview
NAFTA Financial Overview Considerations (In €m) • Q4 Revenue growth of 21.2% reaching €492m − Growth in both the US and Mexico as a result 1,659 1,483 of project ramp-ups 492 Revenue 406 • FY Revenue growth of 11.9% reaching €1,659m − Strong market outperformance as a result of ramp-up of new projec
Slide 16: Mercosur Financial Overview
Mercosur Financial Overview (In €m) Considerations • Q4 Revenue decreased by 6.5% reaching €159m, − Much lower tooling revenues than in Q4 2017, 562 585 growth in Q4 when excluding tooling impact 170 159 − High impact of currency devaluation and Revenue hyperinflation adjustment but strong Gestamp p
Slide 17: Asia Financial Overview
Asia Financial Overview (In €m) Considerations • Q4 Revenue decrease of 9.0% reaching €295m − Decrease mainly driven by weaker market 1,102 1,016 dynamics especially in China related to certain 324 295 OEMs, and in India Revenue • FY Revenue fell 7.8% reaching €1,016m based on similar reasons as for
Slide 18: Capital Expenditure Overview FY 2018
Capital Expenditure Overview FY 2018 Capex Breakdown Considerations (In €m) • Moderation of total capex in Q4, with total capex 32% Capex as % 9.7% 10.8% 7.1% below the 9M quarterly of revenues average 920 • Capex for FY 2018 higher than expected mainly driven 112 112 1.3% 796 by higher growth capex
Slide 19: Net Financial Debt Position
Net Financial Debt Position Net Financial Debt / EBITDA (x) Considerations Net Financial Debt (€m) €2,150m €1,898m €2,100m €2,209m €2,498m €2,233m • Leverage 0.2x above Dec-2017 level, as a result of 2.65 − Higher capex; and working capital 2.43 2.34 2.39 2.32 2.13 related to growth • €265m debt red
Slide 20: Status Update on 2018 Targets
Status Update on 2018 Targets Guidance 2018 2018 Results (at Constant FX) (at Constant FX) Revenues Revenue growth: High single digit 10.2% EBITDA EBITDA growth: Slightly higher than revenues 15.8% Capex In line with 2017 10.8% Leverage In line with 2017 2.3x Dividend Pay-out ratio: c.30% of Net Inc
Slide 21: Outlook for 2019
Outlook for 2019 Guidance 2019 (Constant FX and excluding IFRS 16) Revenues Revenue growth: High single digit EBITDA EBITDA growth: Slightly higher than revenues Capex ~ 9.5% of revenues < 2.2x Leverage Net Debt / EBITDA Dividend Pay-out ratio: c.30% of Net Income Growth weighted towards H2 2019 Not
Slide 22: Agenda
Agenda Key Highlights for FY 2018 and Q4 2018 Financial Overview Closing Remarks © Gestamp 2019 22
Slide 23: Closing Remarks
Closing Remarks • Despite a challenging 2018 auto environment Gestamp has achieved its Revenue and EBITDA targets with growth of 10.2% and 15.8% at constant FX, respectively • Gestamp has continued to be a preferred partner for its clients and during 2018 has opened 6 new facilities and currently ha
Slide 24: Working for a Safer and Lighter Car Investor Relations
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 2019 © Gestamp 2019