Iveco Group Nv · MIL:IVG
Iveco Group Nv — Q3 2023 Earnings Presentation
39 slides from Iveco Group Nv's earnings presentation, Nov 1, 2023
Slide 1: Q3 & 9M 2023 results
Q3 & 9M 2023 results Turin, Italy – 1st November 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 • Continuous margin improvements across all segments, with solid price realisation more than offsetting cost. Confirmed Heavy trucks’ EBIT positive. Light trucks’ adjusted EBIT margin at double digit on a stand-alone basis • Q3 2023 Consolidated Net Revenues up 6.7% YoY and Con
Slide 4: Q3 2023 & Most Recent Main Achievements
Q3 2023 & MOST RECENT MAIN ACHIEVEMENTS August October October FPT Industrial IVECO CAPITAL and Eurowag partner HIGHLIGHTS FROM BUSWORLD unveils its C16 Two to offer integrated Payment Solutions for • World premiere of our new E-WAY H2 hydrogen-powered Stage Turbo engine Commercial and Industrial Ve
Slide 5: Q3 2023 Industry Volume
Q3 2023 INDUSTRY VOLUME Units (% change vs. Q3 2022) Europe(1) South America(2) Rest of the World(3) Worldwide Light Commercial Vehicles +16% (24)% +16% +14% (3.5-7.49t) Medium & Heavy trucks +29% (24)% +22% +15% (≥ 7.5t) Buses +25% +16% +5% 12% (1) The 27 EU countries where Commercial Vehicles comp
Slide 6: 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 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Iveco Group's inventory (without the unfinished products) Third party de
Slide 7: Order Intake and Deliveries
ORDER INTAKE AND DELIVERIES Units LCV M&H Buses (3.5-7.49t) (≥ 7.5t) 0.90 0.83 0.81 0.57 0.93 0.73 Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Book-to-Bill (x) Order intake aligned with 20
Slide 8: 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) 60.1% 48.2% 31.1% 8.2% 13.5% 7.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2
Slide 9: Q3 2023 financials
Q3 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 10: Financial Summary
FINANCIAL SUMMARY (change vs. Q3 2022 for Profit & Loss and Cash Flow items, vs. 31st December 2022 for Balance Sheet items) Consolidated Industrial €3.8bn Net Revenues €3.7bn €0.28 Adjusted diluted EPS(1) +6.7% +5.8% +€0.18 €213mn Adjusted EBIT(1) €180mn €(375)mn Industrial Free Cash Flow(1) +€112m
Slide 11: Industrial Net Revenues
INDUSTRIAL NET REVENUES Split by region and segment, and walk – Q3 2023, €mn otherwise stated 13% % change YoY 2% Europe +11% 13% By region South America (21)% 72% North America +6% €3.7bn Rest of the World +13% +5.8% YoY 23% % change YoY Trucks +6% 3,471 3,671 6% By segment 60% Buses +3% NET REVENU
Slide 12: Industrial Adjusted EBIT
INDUSTRIAL ADJUSTED EBIT Walk by segment and driver – Q3 2023, €mn otherwise stated 4.9% 1.8% 64 19 376 (31) (38) (43) (142) (22) 180 ADJUSTED EBIT PRODUCTION OTHER AND ADJUSTED EBIT VOLUME AND MIX NET PRICING SG&A R&D FX | OTHER Q3 2022 COST(1) ELIMINATIONS Q3 2023 Segments View C&SV 78 14 376 (52)
Slide 13: Financial Services
FINANCIAL SERVICES Q3 & September 2023, €mn otherwise stated Adjusted EBIT Equity and Return on Assets(1) (2) 2.5% 2.3% 1.9% 1.8% 1.9% 2.1% 2.1% 2.3% 2.3% 1.7% 1.7% Q3 2023 33 811 844 752 789 768 778 724 725 743 740 723 Q3 2022 37 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 Equity RoA Managed po
Slide 14: Industrial Net Cash, Working Capital and FCF
INDUSTRIAL NET CASH, WORKING CAPITAL AND FCF Walk and dynamics – Q3 2023, €mn Industrial FCF €(375)mn 1,166 387 (23) (579) (3) (210) 53 (18) (48) 725 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 15: Debt Maturity Profile and Available Liquidity
DEBT MATURITY PROFILE AND AVAILABLE LIQUIDITY 30th September 2023, €mn Available Liquidity Bank debt 3,506 Capital market Undrawn medium-term committed unsecured credit lines Cash & marketable securities (1) €mn 30th September 2023 31st December 2022 Cash and cash equivalents 1,453 2,288 2,000 Total
Slide 16: 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 17: 2023E Industry Volume Outlook
2023E INDUSTRY VOLUME OUTLOOK Units (% change vs. FY 2022) Europe(1) South America(2) Rest of the World(3) Worldwide Light Commercial Vehicles +10-15% ~ (20)% ~ +5% +10% (3.5-7.49t) Medium & Heavy trucks +15% (20)-(25)% ~ +20% +10-15% (≥ 7.5t) Buses +15% +10-15% +5% ~ +10% (1) The 27 EU countries wh
Slide 18: 2023E Financial Guidance
2023E FINANCIAL GUIDANCE EU-IFRS Previous 2023 Guidance New 2023 Guidance Group Adjusted EBIT(1) €750-800mn €870-900mn Net Revenues +5-8% +8-9% (including currency translation effects) vs. FY 2022 vs. FY 2022 Industrial Activities Adjusted EBIT(1) €650-700mn €770-800mn SG&A ~ 6.0% ~ 6.0% over Net Re
Slide 19: CEO Takeaway Messages
CEO TAKEAWAY MESSAGES Increased financial guidance are based on solid third quarter performance, current industry outlook, evolving order backlogs and no signs of unusual levels of order cancellations and considers a fourth quarter profitability performance stable or slightly better than previous ye
Slide 20: 9M 2023 financials
9M 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 21: 9M 2023 Industry Volume
9M 2023 INDUSTRY VOLUME Units (% change vs. 9M 2022) Europe(1) South America(2) Rest of the World(3) Worldwide Light Commercial Vehicles +12% (19)% +4% +8% (3.5-7.49t) Medium & Heavy trucks +22% (16)% +26% +17% (≥ 7.5t) Buses +19% +35% +5% +15% (1) The 27 EU countries where Commercial Vehicles compe
Slide 22: Industrial Net Revenues
INDUSTRIAL NET REVENUES Split by region and segment, and walk – 9M 2023, €mn otherwise stated 12% % change YoY 2% 12% Europe +19% By region South America (6)% 74% North America +7% €11.1bn Rest of the World +2% +13.2% YoY 25% % change YoY Trucks +16% 9,810 11,107 By segment 6% 58% Buses +11% NET VOL
Slide 23: Industrial Adjusted EBIT
INDUSTRIAL ADJUSTED EBIT Walk by segment and driver – 9M 2023, €mn otherwise stated 5.2% 2.4% 237 135 999 (282) (82) (86) (303) (38) 580 ADJUSTED EBIT PRODUCTION OTHER AND ADJUSTED EBIT VOLUME AND MIX NET PRICING SG&A R&D FX | OTHER 9M 2022 COST(1) ELIMINATIONS 9M 2023 Segments View C&SV 249 118 999
Slide 24: Industrial Net Cash and Working Capital
INDUSTRIAL NET CASH AND WORKING CAPITAL Walk and dynamics – 9M 2023, €mn Industrial FCF €(837)mn 1,727 1,185 (125) (1,079) (287) (539) 8 (39) (126) 725 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
Slide 25: Appendix
APPENDIX
Slide 26: Summary Table (1/2)
SUMMARY TABLE (1/2) Q3 2023 vs. Q3 2022, €mn otherwise stated Profit & Loss Q3 2023 Q3 2022 Change Revenues by segment Q3 2023 Q3 2022 % change CONSOLIDATED Commercial and Specialty Vehicles 3,198 2,987 +7.1% Net revenues 3,757 3,520 +237 Powertrain 952 906 +5.1% Adjusted EBIT 213 101 +112 Eliminati
Slide 27: Summary Table (2/2)
SUMMARY TABLE (2/2) 9M 2023 vs. 9M 2022, €mn otherwise stated Profit & Loss 9M 2023 9M 2022 Change Revenues by segment 9M 2023 9M 2022 % change CONSOLIDATED Commercial and Specialty Vehicles 9,566 8,281 +15.5% Net revenues 11,336 9,939 +1,397 Powertrain 3,200 2,904 +10.2% Adjusted EBIT 676 321 +355
Slide 28: Reconciliation Table (1/6)
RECONCILIATION TABLE (1/6) EBIT to Adjusted EBIT by segment of Q3 2023 & Q3 2022 – €mn Unallocated items, Total Commercial and Powertrain eliminations and Industrial Financial Services Eliminations Total Specialty Vehicles Q3 2023 other Activities EBIT 196 50 (75) 171 35 - 206 Adjustments: Restructu
Slide 29: Reconciliation Table (2/6)
RECONCILIATION TABLE (2/6) EBIT to Adjusted EBIT by segment of 9M 2023 & 9M 2022 – €mn Unallocated items, Total Commercial and Powertrain eliminations and Industrial Financial Services Eliminations Total Specialty Vehicles 9M 2023 other Activities EBIT 569 175 (246) 498 110 - 608 Adjustments: Restru
Slide 30: Reconciliation Table (5/6)
RECONCILIATION TABLE (5/6) Total (Debt) to Net Cash (Debt) Consolidated Industrial Activities Financial Services €mn 30th September 2023 31st December 2022 30th September 2023 31st December 2022 30th September 2023 31st December 2022 Third party (debt) (4,500) (4,156) (708) (739) (3,792) (3,417) (1)
Slide 31: Reconciliation Table (6/6)
RECONCILIATION TABLE (6/6) Industrial Free Cash Flow €mn Q3 2023 Q3 2022 9M 2023 9M 2022 Net cash provided by (used in) Operating Activities (203) (33) (305) (21) - Cash flows from Operating Activities of Financial Services net of eliminations (15) (57) (1) (66) = Operating cash flow of Industrial A
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 Q3 2023 Q3 2022 9M 2023 9M 2022 Profit (Loss) 94 47 254 68 (a)
Slide 33: Reconciliation Table (4/6)
RECONCILIATION TABLE (4/6) €mn Q3 2023 Q3 2022 9M 2023 9M 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 - - 12 - Restructuring costs 4 2 12 6 Spin-off costs 4 8 7 18 Impacts from Russ
Slide 34: Book-to-Bill (1/2)
BOOK-TO-BILL (1/2) Book-to-Bill (x) Order intake (#units) Deliveries (#units) Q3 2023 Q3 2022 YoY % Q3 2023 Q3 2022 YoY % Q3 2023 Q3 2022 YoY % Trucks 0.74 0.83 (12)% 20,081 23,050 (13)% 27,263 27,667 (1)% LCV 0.87 0.87 +1% 16,419 17,513 (6)% 18,794 20,163 (7)% Europe M&H 0.43 0.74 (41)% 3,662 5,537
Slide 35: Book-to-Bill (2/2)
BOOK-TO-BILL (2/2) Book-to-Bill (x) Order intake (#units) Deliveries (#units) 9M 2023 9M 2022 YoY % 9M 2023 9M 2022 YoY % 9M 2023 9M 2022 YoY % Trucks 0.82 1.09 (25)% 71,252 88,132 (19)% 86,997 80,611 +8% LCV 0.91 1.06 (14)% 55,407 64,871 (15)% 60,753 61,145 (1)% Europe M&H 0.60 1.19 (49)% 15,845 23
Slide 36: 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 37: 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 38: 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
Slide 39: Thank You
THANK YOU IVECO*GROUP WE GO BEYOND