Gestamp Automocion S.a. · BME:GEST
Gestamp Automocion — Investor Day (June 2021)
116 slides from Gestamp Automocion's investor day presentation, Jun 15, 2021
Slide 1: Capital Markets Day
Mar ets Day Gestamp 4 \\ SES Wane mA
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for use at this Capital Markets Day held on June 15th, 2021. By attending the webcast where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. This presentation is not an offer fo
Slide 3: Gestamp
Gestamp 4 MANUFACTURERS
Slide 4: 2021 Capital Markets Day – Agenda
2021 Capital Markets Day – Agenda Main Topics Speakers 1. Gestamp’s Strategy Francisco J. Riberas Automotive Market and 2. Jon Barrenechea Gestamp’s Positioning 3. Operational Excellence and Capex Fernando Macías 4. Financial Profile Carmen de Pablo Mid-term Vision Francisco J. Riberas Ignacio Martí
Slide 5: Gestamp's Strategy
Gestamp’s Strategy Francisco J. Riberas 5
Slide 6: Gestamp's Positioning & Strategy
Gestamp’s Positioning & Strategy Above market growth backed on selective investments Since IPO targeting future OEMs needs Gestamp’s resilient business model has been proved During 2020 again under an unprecedented market collapse For 2021-22 Focus on positive cash generation profile Gestamp’s key p
Slide 7: Since IPO – Strategic Objectives Set during the IPO
Since IPO – Strategic Objectives Set during the IPO Global Strategic Partner of Choice to OEMs Technological Leader across Products Outstanding Market Outperformance Enhanced Financial Profile Family DNA and Long-Term Vision as Cultural Pillars 7
Slide 8: Since IPO – Strategic Partner
Since IPO – Strategic Partner Global Strategic Partner ofkey Gestamp’s Choice successto factors Strategic OEMs Suppliers Regional Technology Globalization Operational Financial Suppliers Excellence Robustness Outstanding Market Outperformance Gestamp in global rankings1 by product Local Suppliers Pr
Slide 9: Since IPO – Market Overperformance
Since IPO – Market Overperformance From 2016 to 2019 growth well above the market CAGR 2016-19A +10.6 pp2 9.5% WEST EAST REGION MERCOSUR NAFTA ASIA EUROPE EUROPE Gestamp vs. Market Auto +3.3 pp +25.8 pp +36.2 pp +9.7 pp +5.1 pp Production (pp)2 (1.1)% Market Auto Production1 Consistently outperformi
Slide 10: Since IPO – Expanded Footprint
Since IPO – Expanded Footprint 17 New plants Across All Key Automotive Regions New Plants 2017 – 2021 NAFTA Eastern Europe ü Gestamp Chattanooga II – May 2017 ü Gestamp Romania – February 2017 – Acquisition ü Edscha San Luis Potosí – September 2018 ü Gestamp Nitra – June 2019 ü Gestamp San Luis Poto
Slide 11: Since IPO – Strategic Investment Policy
Since IPO – Strategic Investment Policy 100% strategic €2.5bn investments, mostly Cumulative Capex related to organic 2017-2019 growth and linked to client orders Enhanced competitive position to cope with future opportunities 11
Slide 12: Since IPO – Enhanced Financial Profile
Since IPO – Enhanced Financial Profile During the IPO Gestamp communicated the objective of enhancing its Financial Profile – We have not been successful Challenging Auto Market Environment 1 Lower Margins EBITDA Margin FY 2016 FY 2019 • Lower than expected volumes (excl. IFRS 16) (%) • - 1% LV prod
Slide 13: 2020 – Auto Market Already Facing Difficulties Prior to Covid-19
2020 – Auto Market Already Facing Difficulties Prior to Covid-19 Light Vehicle Production 2017A-2019A1 Annual LV Production; Mn vehicles -6.2 Mn • 2017-19 volume drop allowed us to identify and define 95.1 required changes within the 94.2 Company 89.0 • The Covid-19 outbreak accelerated and consolid
Slide 14: 2020 – Macro Collapse
2020 – Macro Collapse 2020 Covid-19 Impact on Economies Worldwide1 YoY GDP evolution 2 Worldwide 5.8% 4.0% 2.8% 2.2% 2.3% 1.3% 1.4% (3.3)% (3.5)% (6.6)% (8.0)% (9.9)% 2019A 2020A Global economy severally affected by Covid-19 with a GDP collapse of -3.3% in 2020 (1) Source: WEO (April 2021) (2) Euro
Slide 15: 2020 – Auto Market Collapse
2020 – Auto Market Collapse 2019 and 2020 Global Light Vehicle Production Quarterly Evolution1 Quarterly LV Production in Mn vehicles -16.2% YoY World LV production in 2020A 23.6 23.0 22.8 22.1 -22% 21.1 20.5 -43% 17.8 12.6 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2019A 2020A
Slide 16: 2020 – Pillars Action Plan
2020 – 4 Pillars Action Plan Short Term Priorities… … to Assure Long Term Survival Cash People Preservation Covid-19 Plan Labour Customers Flexibility Gestamp’s rapid response has minimized Covid-19 negative effects 16
Slide 17: 2020 – Resilience
2020 – Resilience Implemented High Cash …Resulting in CF Generation …Proving Again our Business Impact Measures… During Covid-19 Year… Model Resilience €462m CF generation of €145m Cost savings in 2009 €(16.7)% decrease from 2019 Net Debt Reduction (excl. IFRS 16) CF2 €271m €302m in 2020 -19.8% Cape
Slide 18: 2021 & 2022 – Main Objectives
2021 & 2022 – Main Objectives Working Towards the Gestamp of the Future • Assured top line growth with continued market outperformance 2021-22 • Strong EBITDA generation via Focus profitability improvements – continuing our 2020 efforts on FCF • Strategic and controlled capex allocation policies • W
Slide 19: From 2015A to 2020A Gestamp has Overperformed the Market
From 2015A to 2020A Gestamp has Overperformed the Market Gestamp Revenue Growth vs. Market Production Growth in Gestamp Markets1 Gestamp’s weighted outperformance 5.8 pp 9.2 pp 9.3 pp 11.4 pp 10.7 pp 7.8 pp 12.3% 8.2% 10.8% 10.2% 6.3% 2.4% 3.1% 1.5% -1.2% -4.4% -13.6% -21.4% 2015A 2016A 2017A 2018A
Slide 20: 2021 & 2022 – Consolidating Profitability
2021 & 2022 – Consolidating Profitability Run-rate EBITDA1 Profitability after Transformation Plan % EBITDA margin Industry 4.0 23.0 33 13.0% OPERATIONAL 11.8% 22 STABILIZATION Sharp decrease in FIXED COST Greenfields 11 REDUCTION Regularization of Effort to historical 10.2% VOLUMES homogenize, prob
Slide 21: 2021 & 2022 – Financial Outlook
2021 & 2022 – Financial Outlook Financial Priorities Increased Strategic Capex Working Capital Profitability Control Management FCF Generation Clear Cash Allocation Strategy Back to Minority Deleveraging1 Dividend Pay-Out Repurchase Towards <2.0x Clearly defined path to sustainable FCF generation to
Slide 22: Corporate Values
Corporate Values Family DNA Underpin corporate principles Corporate Long Term Governance Vision Best-in-class standards As a value creator Committed to Society Environmental Sustainability 22
Slide 23: Beyond 2022 – Solid Value Levers for the Future
Beyond 2022 – Solid Value Levers for the Future Maintaining our Strategic Pillars… ….while thinking about the future Technology/Product R&D Developments Global Footprint Industry 4.0 Operational Excellence ATENEA Solid Financial Profile ESG Gestamp to further consolidate its sustainable leading posi
Slide 24: Automotive Market and Gestamp's Positioning
Automotive Market and Gestamp’s Positioning Jon Barrenechea 24
Slide 25: Gestamp Has Consistently Overperformed the Market…
Gestamp Has Consistently Overperformed the Market… Gestamp’s Revenue1 vs LV Global Production2 Evolution in base 100 CAGR 13-19A 190 190 180 180 +10.7% 170 170 160 160 Market Overperformance 150 150 140 140 Market Overperformance +9.9 pp 130 130 120 120 110 100 100 0.8% 90 2013A 2013A 2014A 2014A 20
Slide 26: …on the Back of a Clear Strategic Vision
…on the Back of a Clear Strategic Vision Strategic Plan to Become a Key Supplier in the Automotive Sector Strategic axes Strategic pillars Operational Financial Globalization Technology Excellence Soundness 24 years — From a Spanish “Build-to-Print” to a global “Mega-Supplier” 26
Slide 27: Unexpected Market Evolution since the IPO...
Unexpected Market Evolution since the IPO... Global LV Production Evolution Estimate in 2017 vs Real Production1 LV Production in Mn vehicles CAGR 16-20E • Global Light Vehicle production in 2020 was 27 105 105 2017 IHS Estimate Mn units lower than the +2.2% production forecast at the 100 100 Real t
Slide 28: …Worsened by the 2020 Unprecedented Market Collapse
…Worsened by the 2020 Unprecedented Market Collapse YoY Quarterly Evolution of LV Production by Region1 YoY quarter evolution YoY quarter evolution Europe Asia (45.8)% (45.8)% (59.9)% (59.9)% (54.5)% (54.5)% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q4 2019 Q1 2
Slide 29: Automotive Production Recovery – Geographies
Automotive Production Recovery – Geographies Market Expected Evolution by Geography1 LV Production in Mn vehicles CAGR 20-25E 5% 96 90 7% 3% 2% 4% 11% 75 4% 9% • Worldwide vehicle 5% 2% 8% production is expected to 13% 5% 3% 14% grow at 5% CAGR 20A-25E 9% 17% 5% 13% 19% • The regions expected to gro
Slide 30: Automotive Production Recovery – Price Segments
Automotive Production Recovery – Price Segments Market Expected Evolution by Price segment1,2 LV Production in Mn vehicles CAGR 20-25E 96 5% 90 15% 7% 75 14% • Mid price segment expected to drive future growth 14% 35% 7% ü Mid and Premium 34% segments expected to 32% grow at the expense of the Entry
Slide 31: Electrical Vehicle to Lead Future Growth…
Electrical Vehicle to Lead Future Growth… Major OEMs Have Announced Clear Sharp Increase of xEVs Expected in Strategies towards xEV1 Upcoming Years Global LV Production2 Propulsion breakdown 50% of global sales to be BEVs by 2025, 100% by 2030 100% 98% of models offering xEV options in Europe in 202
Slide 32: …Creating Market Opportunities for New EV Players…
…Creating Market Opportunities for New EV Players… New EV Players1 Expected Evolution in 2020-25E2 LV Production in Mn vehicles • Significant growth 3x opportunity arising from 2.0 new players within the EV market 1.8 1.7 ü 15 new EV manufacturers since 2007 1.4 ü Having already introduced 1.2 10 ne
Slide 33: …While Expanding OEMs Needs for Further Outsourcing
…While Expanding OEMs Needs for Further Outsourcing €30bn Market Potential from OEM Outsourcing until 2025E1 Total Addressable BiW, Chassis, Mechanisms & Battery Box Market, OEM Captive vs Outsourcing, 2020A-25E (€bn)1 CAGR 20-25E • Increasing OEM outsourcing €bn Gestamp’s total Addressable Market 1
Slide 34: Gestamp's Strategic Growth Pillars
Gestamp’s Strategic Growth Pillars Technological and Product Leadership 3 1 Strategic Reliable Pillars Partner Global Footprint 2 34
Slide 35: Technological Leadership to Provide Strategic Solutions
1 Technological Leadership to Provide Strategic Solutions Trusted partner of OEMs by making their vehicles… COST/ SAFER LIGHTER BENEFIT RATIO …answering to new …helping to meet stringent Safety CO2 emissions Requirements, regulations and a key buying criteria consumer expectations in terms of reduce
Slide 36: Technological Solutions for Active and Passive Safety
1 Technological Solutions for Active and Passive Safety Rising Requirements for Safer Components and Designs Mature Markets Emerging Markets ü Car purchases driven by high ratings ü Convergence towards ü Focus turning towards active EuroNCAP standards in the next safety and pedestrian 10 years (e.g.
Slide 37: Technological Solutions to Meet CO2 Emission Targets
1 Technological Solutions to Meet CO Emission Targets 2 CO2 Emission Regulations Evermore Stringent Globally1 CO2 emission targets in g/km (NEDC normalized) -21% -17% -14% -15% 117 119 105 95 99 93 902 81 2020 2025 2020 2025 2021 2025 2021 2025 Gestamp’s Light-Weight Solutions and EV positioning Cri
Slide 38: A Global Strategy with a Local Reach
2 A Global Strategy with a Local Reach Global Industry… … with local requirements • Increasing number of global platforms • Proximity as a criteria • OEM consolidation through M&As and • Heterogeneous market demands JVs to create global super-players • Supply chains under revision • Mature logistics
Slide 39: Clearly Differentiated Geographic Strategies
2 Clearly Differentiated Geographic Strategies Addressable Market1 Footprint Strategy Amounts in €bn • Unique footprint with Europe CAGR European OEMs 2020A-25E ü Capture Platform shift +9% towards EV 20.2 • Embedded within OEM’s value Sized chain 13.1 footprint ü Co-developments ü Anticipate future
Slide 40: Clearly Differentiated Geographic Strategies (Cont'd)
2 Clearly Differentiated Geographic Strategies (Cont’d) Addressable Market1 Footprint Strategy Amounts in €bn • Increase market penetration China through Amounts in €bn +10% ü Unique technological CAGR capabilities 2020A-25E Footprint ü Joint Venture strategy 13.6 22.1 under • Segment focus developm
Slide 41: The Increase in the Number of Global Platforms…
3 The Increase in the Number of Global Platforms… Increase in the Number of Global Platforms1,2 # of Global Platforms +29% 27 21 53% 40% 2019A 2025E • OEMs focused on platform % % of vehicles (in volume) on Global Platforms consolidation as a mean of: ü Reducing R&D costs ü Optimizing industrial Ave
Slide 42: …Requires a Global Reliable Partner such as Gestamp
3 …Requires Gestamp a Global Reliable Partner such as Gestamp’s Presence on Global Platforms1,2 # of Global Platforms in which Gestamp is present +35% Rev. increase in • Gestamp is strategically absolute terms positioned to absorb growth >35% >40% coming from platform of Gestamp Revenue of Gestamp R
Slide 43: Becoming a Strategic Supplier across Asian OEMs…
3 Becoming a Strategic Supplier across Asian OEMs… Japanese OEMs Chinese OEMs Indian OEMs ü Expanded footprint with Hot ü Technology as the entry point to ü Best-positioned to absorb growth Stamping capabilities in Japan Chinese OEMs from convergence in Product and ü Increasing presence with global
Slide 44: …and New Players, Representing a Significant Opportunity
3 Significant …and New Players, Representing a Opportunity +9.5 Mn vehicles to be produced by New players1 during 2020A - 25E Gestamp already collaborating with some of the top New Comers (1) New Players defined as OEMs starting production after 2007 with at least 10 kveh in 2025. Source: IHS Markit
Slide 45: Operational Excellence and Capex
Operational Excellence and Capex Fernando Macías 45
Slide 46: Operational Excellence as a Core Gestamp's Principle
Operational Excellence as a Core Gestamp’s Principle Quality Quality Operational Excellence has Service been key in Gestamp’s story Cost Effectiveness 46
Slide 47: Previous Years' Growth Model Faced Some Constraints
Previous Years’ Growth Model Faced Some Constraints 1 High Capex Deployment 2 EBITDA Ramp-Up 12 launches of greenfield project, Significant Investments deployed to with operational ramp-up periods benefit from strategic opportunities negatively impacting margins Tight labour market in NAFTA and Mark
Slide 48: Strategic Investment Plan to Meet OEMs Needs…
1 Strategic Investment Plan to Meet With OEMs Needs… Gestamp’s Footprint as of 2019A Industrial Plants Gestamp NAFTA • 16 plants (+4 since IPO) East Europe • 19 plants (+2 since IPO) Mercosur • 13 plants Asia (+2 since IPO) • 18 plants West Europe (+5 since IPO) • 46Al plants (+2a since IPO) b a m a
Slide 49: …Has Resulted in an Intensive Capex Profile…
1 …Has Resulted in an Intensive Capex Profile… Capex1 Evolution 2016-2019A Amounts in €m 10.8 9.6% 9.7% 8.8% 9.7% % 920 3,238 796 112 796 400 726 96 108 84 808 2,838 700 688 642 2016A 2017A 2018A 2019A Cumulative Capex 2016A-19A % Capex o/ Rev. Tangible Capex Intangible Capex (excl. IFRS 16) Intensi
Slide 50: …in a Period of Unexpected Vehicle Production Volumes
1 …in a Period of Unexpected Vehicle Production Volumes Compared to IPO volume expectations, in 2020A Light Vehicle Production volumes dropped by 27 Mn units The drop in vehicle volumes affected new plants’ ramp-ups 50
Slide 51: Limited Operational Performance…
2 Limited Operational Performance… EBITDA margin below the expectations we had in the IPO Profitability expansion limited by identified issues 51
Slide 52: …with Margins Affected by Identified Issues…
2 …with Margins Affected by Identified Issues… High organic growth New countries added to footprint Increase of NAFTA as a clear labour costs example of higher High Complexity than expected New technologies complexity included in plants impacting margins New Products included in plants Tight labour
Slide 53: …such as NAFTA Profit Warning in September 2017
2 …such as NAFTA Profit Warning in September 2017 Dedicated all the necessary resources in order to readdress the situation ü Full leadership support ü Management team reinforcement ü Temporary support of technical employees and production ü Action plan to solve inefficiencies +5.7pp EBITDA margin i
Slide 54: Gestamp to Further Expand its Cash Generation Capacity
Gestamp to Further Expand its Cash Generation Capacity 1 New Capex Profile 2 Enhanced Operational Excellence Footprint sized to cope with most of New organization created to promote our future potential growth operational excellence Optimization of the current Efficiency improvements, expecting capa
Slide 55: Future Capex Allocation Strategy: Our Priorities
1 Future Capex Allocation Strategy: Our Priorities Asia Premium Electric Leveraging on our Segments Vehicle existing investments Capex Increasing our asset Priorities utilization Focusing new Capex Efficiency R&D strategically Leveraging on our solid asset base, the new Capex profile will target val
Slide 56: Organizational Structure Focused on Growth Delivery
2 Organizational Structure Focused on Growth Delivery Organizational Structure to Leverage Global Synergies Gestamp’s Old Structure CEO • Organizational structure with vertical reporting to promote flexibility West East NAFTA Mercosur Asia Europe Europe • No centralized Industrial function – in each
Slide 57: Efficiencies at the Core of Operations Management
2 Efficiencies at the Core of Operations Management Re-organization under the new COO figure Objectives Gestamp’s New Structure Standardization and Industrial EXECUTIVE CHAIRMAN KPIs homogenization COO Assuring BP Objectives West Optimizing Current Capacity East NAFTA Mercosur Asia Europe Europe Tal
Slide 58: Financial Profile
Financial Profile Carmen de Pablo 58
Slide 59: Key Issues Impacting our Financial Performance Since IPO
Key Issues Impacting our Financial Performance Since IPO 2019 LV Production (Mn veh.) Global Light Vehicle production below forecasts Market at the time of the IPO, further worsened by Volumes Covid-19 outbreak 99 89 2019E (IHS Jan ’17) 2019A .........................................................
Slide 60: 2019: Already a Difficult Year
2019: Already a Difficult Year FY 2019 Amounts in €m Revenues 9,065 Mainly driven by the contribution of new projects Outperformance pp1 +11.5 pp 1 (despite slower than expected ramp-ups) EBITDA 1,072 EBITDA margin dilution due to high ramp-ups and % margin 11.8% margin inefficiencies Net income 212
Slide 61: Actions Taken to Preserve our Financial Position
Actions Taken to Preserve our Financial Position By the End of 2019 2020, a Year of Two Halves Normalization measures to H1: Holistic and Transversal Plan H2: Solid Performance adapt to changing market dynamics: Employees Safety Volume Recovery Flexibility Measures Customer Service Flexibility measu
Slide 62: 2020 Resulted in a Solid Financial Performance
2020 Resulted in a Solid Financial Performance FY 2020 Amounts in €m – Excluding Transformation Cost Revenues 7,456 Revenue stabilisation during H2 2020 Outperformance pp1 +7.8 pp1 Labour and Operating expenses in line with EBITDA 757 Transformation Plan objectives, especially noticeable % margin 10
Slide 63: Clear Path to Achieve our Mid-Term Goals…
Clear Path to Achieve our Mid-Term Goals… 2020 2021-2022 Post 2022 • Emergency measures to • Focus on positive FCF • Gestamp’s leadership address Covid-19 generation as top priority… positions enables to capture future growth • Transformation Plan ü Cost control and margin ü Further product and impl
Slide 64: …Reiterating our Outlook for 2021
…Reiterating our Outlook for 2021 Guidance 2021 Revenues Mid-single digit outperformance to the market EBITDA margin EBITDA margin >12% Capex1 ~ 7% of revenues Net Debt1,2 < €2 bn Focus on increasing profitability and FCF generation (1) Excluding IFRS 16 (2) Excluding the impact of the Transformatio
Slide 65: Solid Q1 Results on the Right Track towards Achieving 2021 Targets
Solid Q1 Results on the Right Track towards Achieving 2021 Targets Q1 2021 Capturing Market outperformance of 7.9 pp Growth on a weighted basis in Q11 Revenues Revenues increased by 11.7% on a constant FX basis EBITDA margin EBITDA margin improvement of 2.7 pp vs. Q1 20 up to 12.3% Focused on FCF Ne
Slide 66: Financial Strategy Key Premises
Financial Strategy Key Premises Focus on Free Cash Flow • EBITDA generation • Strict Capex control Lower cost Mitigate of financing financial risks • Working Capital management ....................................... Focus on Debt and Liquidity Enhance Improve • Repurchase €500m 2023 bond from €2.9B
Slide 67: Focus on Free Cash Flow
Focus on Free Cash Flow Historical Free Cash Flow Free Cash Flow Definition Development (2017-2020) Amounts in €m + EBITDA +/- ∆ Working Capital 356 - Capex1 - Taxes 37 +/- Other Non-Cash Items2 (171) = Operating Free Cash Flow (284) - Financial Interests 2017A 2018A 2019A 2020A = Free Cash Flow3 Co
Slide 68: Free Cash Flow Focus and Capital Allocation Policies
Free Cash Flow Focus and Capital Allocation Policies …Efficiently Allocated, Creating Policies Focused on FCF Generation… Value for Shareholders EBITDA Profitability Organic / Inorganic 1 (M&A) Projects 5 2 Capex ......................... Tax Moderation Efficiencies Leverage Reduction Key Levers to
Slide 69: Improved Debt Maturity Profile and Solid Liquidity
Improved Debt Maturity Profile and Solid Liquidity Debt Maturity Profile Q1 21 Liquidity Position as of Q1 21 Pro-Forma Pro-Forma Amounts in €m Amounts in €m Net Debt Avg. Maturity 1,000 315 2,384 of 4.7 years1 28 931 174 €1,959m 696 at Q1 21 560 675 66 56 50 495 972 1,509 1,459 60 757 619 630 201 4
Slide 70: Shareholders' Remuneration Policy
Shareholders’ Remuneration Policy Dividend Evolution – 30% Pay-out Ratio Unchanged Amounts in €m COVID-19 impact 72 78 66 30% Pay-out Ratio (Previous Year Net Income) 32 2017A 2018A 2019A 2020A 2021E 2022E 2023E 2024E 2025E Shareholders’ remuneration policy based on a clear cash allocation strategy
Slide 71: Outlook – 2022
Outlook – 2022 FY 2019 Guidance 2022 Mid-single digit Mid-single digit Strong level of visibility with >95% of Revenues growth Outperformance Revenues covered by order book Driven by volume growth, fixed costs EBITDA margin 11.8% 13.0% reduction and operational stabilization Focus on generating valu
Slide 72: Mid-Term Vision
Mid-Term Vision Francisco J. Riberas 72
Slide 73: Mid Term Ambition – 2023 to 2025
Mid Term Ambition – 2023 to 2025 2025 Ambition 2022 Revenues Above market growth Solid EBITDA margin Further margin expansion financial position FCF Maintaining a Positive FCF Focus on FCF & efficiencies Stable Dividend Policy – assuming Dividends NI growth Beyond 2022, Gestamp will be able to focus
Slide 74: Mid Term Ambition – Inorganic Growth
Mid Term Ambition – Inorganic Growth Gestamp’s Revenue Evolution Gestamp has a solid track record Amounts in €m in growing through acquisitions and Joint-Ventures • Major acquisitions of global +19% companies Revenue CAGR 1998A – 2019A Metal Forming 9,065 • Approx. 50% plants through acquisitions an
Slide 75: Mid Term Ambition – Organic Growth
Mid Term Ambition – Organic Growth Gestamp’s Plant Evolution # Plants x11 • In the Future Gestamp will focus Plants on: 1998A – 2021A ü Filling existing capacities ü Many replacement vehicle opportunities (carry-over) 113 ü Potential new Greenfields: • Our ambitious Electric Vehicle objective • Cons
Slide 76: Mid Term Pillars
Mid Term Pillars Electric R&D Vehicle 1 2 Mid Term 5 Pillars 3 ESG Industry 4.0 4 ATENEA 76
Slide 77: R&D
a | ie | Pee Le ; M Ae , Gestamp R&D = \ ZA Ngnacio Martin
Slide 78: Gestamp Holistic Approach to R&D
Gestamp Holistic Approach to R&D Full R&D scope Committed to the future Sustainability Decarburization and green supply * Technology * Materials Innovation Crash, Safety, Comfort, Cost * Products Electrification EV Solutions BiW, Chassis & Mechanisms product 13 sites working as a network & assembly
Slide 79: Gestamp's Technology is Critical for OEMs
Gestamp’s Technology is Critical for OEMs Technology to fulfill safety regulations 6 key OEM requirements CO2 Car to car Wide range of technologies to achieve the right balance between Cost / Performance / Weight New MPDB and Car to Car significant impact OEMs require high technological solutions to
Slide 80: Complete Range of Engineering Capabilities
Complete Range of Engineering Capabilities Full engineering capabilities Wide scope of technologies 1 2 Research Innovation Material labs Development all regions 3-year programs 6 Prototypes 3 Product & / Testing Process Unparalleled Technology Expertise Crash & development performance labs all OEM’
Slide 81: Unique Proprietary Validation Systems (G-LAB's)
Unique Proprietary Validation Systems (G-LAB’s) Unique tool based on numerical demonstrators covering wide range of market segments G-LAB virtual models Validation of Gestamp innovations Development Benefits thanks to advanced virtual Validation Models 81
Slide 82: Strategic Partner for the OEM's Development of Solutions
Strategic Partner for the OEM’s Development of Solutions Co-development collaboration with OEM’s Win-win strategy with OEM Basic research in material and process technologies Innovation roadmap and future mobility concepts OEMs awards CO-DEVELOPMENT 2-3 years in advance activities Best support for o
Slide 83: Key Milestones in Gestamp's Development
Key Milestones in Gestamp’s Development (Some Examples) 1997 1998-2001 2002 2004 2006 – 2009 2010 2011 2013 2013 – 2017 2017 6 new plants Gestamp opened and IPO Foundation HardTech Group Group Metal Forming 2 under Acquisition Acquisition Acquisition construction JV in in Asia Americas Multi-technol
Slide 84: Product Leadership in EV Solutions…
Product Leadership in EV Solutions… Five main areas of Gestamp’s product portfolio applications SAFETY CAGE REAR SYSTEM • Occupants protection • Passengers integrity • Battery protection • Comfort CLOSURES & HINGES • Lightweight • Comfort FRONT SYSTEM • Occupants protection PLATFORM • Battery protec
Slide 85: EV Differences and understanding
EV Differences and understanding Different challenges for EV From internal combustion engine … … New Safety requirements for Electrical Vehicles leading to BIW architecture and Chassis adaptations BIW Chassis Conception challenges: • Adapt BIW & Chassis architecture • Adapt Surrounding components fu
Slide 86: EV Differences and understanding
EV Differences and understanding Long distance car Small city car People mover LDC SCC UPM Urban Environment Gestamp technologies Different technologies required Small battery and closures full in fiber New Fiber and Alu center in Bilbao 2022 Battery protected by BIW ................................
Slide 87: Capital Markets Day
Capital Markets Day Gestamp 87
Slide 88: Success: VW EV Platforms
Success: VW EV Platforms 2012 2021 ICE MQB platform nominations Co-development work for New EV products in BIW, Chassis and Mechanism MEB/PPE 100% EV platform • Introduction of high • New material grades for PH • Battery Box aluminum / content of PH multi-material mix • Sliding door solution • Devel
Slide 89: Innovation roadmap in EVs
Innovation roadmap in EVs TT21-23 BIW TECHNOLOGIES, MATERIALS AND PRODUCT INNOVATIONS ..................................... 2020 2021 2022 2023 2024 PROJECT 6/3/19 LDC 3-year 1 2 3 plan 6 3 19 TECHNOLOGIES MATERIALS SOME PRODUCT EXAMPLES … SCC Floor Battery COLD STAMPING Battery protections CTP HOT
Slide 90: Side crash with innovations
Side crash with innovations 2021 90
Slide 91: Industry 4.0
Industry 4.0 René González 91
Slide 92: Industry 4.0 Driving Manufacturing Excellence
Industry 4.0 Driving Manufacturing Excellence From Digital Factory… …Towards the Smart Factory Connected Virtual Transparent Autonomous Efficient Flexible Decrease Optimize 100% 100% Asset Capital Cut Lead Operational Raw Material Customer Utilization Optimization Times Costs Utilization satisfactio
Slide 93: Gestamp Digital Factory - Today
Gestamp Digital Factory - Today Digital Smart In-house concepts, developments & technology knowledge Digital Deep Knowledge of Digital Standards for Technologies applied to Industry all the Activity Resources > 100 Orchestration Edge 5G IoT Projects Computing Virtual Could > 50 Big Data Computing Co
Slide 94: Connected Factory Case Study: Hot Stamping Lines
Connected Factory Case Study: Hot Stamping Lines Digital Smart Goal: Increase Efficiency of Hot stamping Lines >3,000 variables 75% of analyzed per line the activity connected High data >70 bn of data frequency registration (100 ms) every day Global platform: Real-time analysis, 25 plants in 12 adva
Slide 95: Connected Factory Case Study: Single Plant
Connected Factory Case Study: Single Plant Digital Smart Smart Goal: Support to Achieve Plant’s Targets IoT2 connected production Quality control From Nov. 2020 to through Digital April 2021: +40% Quality Certificate overall performance (DQC)1 Maintenance Line app deployed virtualization Achievement
Slide 96: Gestamp's Road-Map to Digital
Gestamp’s Road-Map to Digital Digital Smart Smart Strategy for the Rollout Current Activity New Programs Progressive plan to transition Large scale introduction of towards digitalization digitalization ü Support plants where we can ü New Greenfields born digital add more value due to their ü New pro
Slide 97: Smart Factory
Smart Factory Digital Smart Cloud Services 5G Strategy/Management/Automation Multisource data combination integrating Massive Distributed Edge traditional and new technologies for factory Connectivity Computing management 97
Slide 98: Flexi-Manufacturing as an Answer to the Future Challenges
Flexi-Manufacturing as an Answer to the Future Challenges Digital Smart New Flexi Assembly Concept Pioneer innovation to make Gestamp more competitive and reduce our business profile risk Traditional Manufacturing New Flexi-Manufacturing 98
Slide 99: Flexi-Manufacturing as an Answer to the Future Challenges
Flexi-Manufacturing as an Answer to the Future Challenges Digital Smart Traditional Manufacturing New Flexi-Manufacturing Specific Installations Generic Installations Concatenated Installations Individual Installations Transport with Robots/Forklifts Transport with AGV Isolated Areas Connected Areas
Slide 100: Flexi-Manufacturing a Leading Smart Factory Project
Flexi-Manufacturing a Leading Smart Factory Project Digital Smart Generic & Flexible Scalable Capacity to produce different Capacity to expand and products and variants in the integrate new versions same line/installation effectively Economic Adaptability to Feasibility Competitive system, profitabl
Slide 101: ATENEA
Gestamp ATENEA PStricia Riberas Se
Slide 102: Project ATENEA – Case for Change
Project ATENEA – Case for Change Leveraging our successful past…. …towards a sustainable future 19% 17% 91 Focus of CAGR CAGR new revenue employee plants growth growth Processes 1997 2019 Systems • Integration of similarly sized companies with their own culture: Data Culture and organization • 67 Pl
Slide 103: Project ATENEA – Objective
Project ATENEA – Objective OBJECTIVE: Consolidate our Operational Excellence in our plants and transition towards higher value-added Corporate functions Industry 4.0 13.0% 11.8% OPERATIONAL STABILISATION FIXED COST 10.2% REDUCTION VOLUMES ATENEA focuses on improving efficiency and effectiveness by w
Slide 104: Project ATENEA – Ecosystem
Project ATENEA – Ecosystem Operations Industry 4.0 Systems Quality and Data Operations Strategy etc. Corporate Functions Organization Finance Purchasing and Culture Commercial Human Resources etc. 104
Slide 105: Project ATENEA – Matrix
Project ATENEA – Matrix Corporate Functions Transformation Office COO Commercial Finance … initiatives COO Divisions Initiative 2 Initiative 2 Initiative 2 Initiative 2 Initiative 1 Initiative 1 Initiative 1 Initiative 1 Initiative i Initiative i Initiative i Initiative i Cross- Transversal Global D
Slide 106: Project ATENEA – Transformation waves
Project ATENEA – Transformation waves Illustrative 2021 2022 2023 Program and Initiatives Jun Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 H1 A1 Program I A1.1 Initiative 1 A1.2 Initiative 1 Initiative 2 A1.2 Initiative 1 Initiative 2 B2 Program II B2.1 Initiative 1 Initiative 2 Initiative 3 B2.2 Initiative
Slide 107: Project ATENEA – Leadership
Project ATENEA – Leadership President and Process owner Top Leadership support and responsibility Challenger Activist Leveraging Single point of contact Transformation our Office strengths to build Enabler our future Organization’s entrepreneurial spirit Change manager 107
Slide 108: Project ATENEA – Monitorization
Project ATENEA – Monitorization Progress made in ATENEA will be visible for the Organization Governance • Transformation Committee Tool • Transformation Office update • Clear KPIs and milestones • Functional workstream Visibility meetings • Tool for follow-up • Town Halls • Functional workshops • Si
Slide 109: Project ATENEA – Start
Project ATENEA – Start Examples of projects • Case for Change • Review roles and responsibilities of Corporate/Divisions • Full organization • Data Strategy – building a cross functional data lake • Implemented in waves • Reviewing client quotation process • RPA tools applied to Purchasing and Finan
Slide 110: ESG
ESG Francisco J. Riberas César Cernuda 110
Slide 111: Safer & Lighter
Safer & Lighter Products & Activity 111
Slide 112: ESG at the Heart of our Business Strategy
ESG at the Heart of our Business Strategy EUROPEAN GREEN DEAL CONTRIBUTING TO 2030 AGENDA 112
Slide 113: Towards a "Greener" Gestamp
Towards a “Greener” Gestamp Our Road To CO2 Neutrality Circular Economy • Visible CO2 carbon footprint & GHG since 2012 Reporting in CDP • Our main raw materials (Steel and aluminum) are 100% recyclable • Signed & approved Science Based Target Objectives: • Circular Economy model in which, through •
Slide 114: Contributing to our Society
Contributing to our Society Safety as our First Diverse & inclusive Making a positive priority culture impact in society • R&D development towards • +40K employees • 5,515 employees participated in SAFER vehicles volunteer activities in 2019 • 89 nationalities • 21,745 direct beneficiaries of • Gest
Slide 115: A strong Corporate Governance
A strong Corporate Governance Board of Directors’ best practices Policies and Organization • Majority of Independent Directors at the Board • Listed Company since 2017 • Over 30% of women in Board • Code of Conduct since 2011 • Diverse skill set throughout the Board • Ethics Committee • New ESG Comm
Slide 116: Capital Markets Day
Markets Day Gestamp 4 x * Zz,