Iveco Group Nv · MIL:IVG
Iveco Group Nv — Investor Day (November 2021)
52 slides from Iveco Group Nv's investor day presentation, Nov 18, 2021
Slide 1: On the Road to a New Energy Future
On the Road to a New Energy Future Turin, November 18, 2021 1
Slide 2: Disclaimer (1/2)
DISCLAIMER (1/2) Advertisement: This presentation is an advertisement for the purposes of Regulation (EU) 2017/1129, as amended (the “Prospectus Regulation”) relating to the intention of Iveco Group N.V. (the "Company") to proceed with the proposed first admission to listing and trading of all of th
Slide 3: Disclaimer (2/2)
DISCLAIMER (2/2) This announcement does not constitute an offer of securities to the public in the United Kingdom. This announcement is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of A
Slide 4: Safe Harbour Statement and Disclosure
SAFE HARBOUR STATEMENT AND DISCLOSURE All statements other than statements of historical fact contained in the slides presented today including statements regarding our competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to reve
Slide 5: Agenda
AGENDA Welcome & Agenda F. Donati 2.30pm CET On the Road ... ... to Independence S. Heywood ... with a Strong Team and a Clear Strategy G. Marx ... in a Changing Industry Context & M. Liccardo … with Innovation and Partnerships & A. Stupenengo ... to a Step Change in Performance & O. Incisa ... to a
Slide 6: On the Road to Independence
Suzanne Heywood On the Road to Independence OPENING REMARKS 6
Slide 7: Demerger Rationale
DEMERGER RATIONALE ACHIEVING OUR FULL POTENTIAL CNH INDUSTRIAL TODAY Customers with diverging needs Financial Commercial & Agriculture Construction Services Specialty Vehicles Powertrain Varying market outlooks Different competitive dynamics and strategic $28.1 starting points Revenues1 BILLION US G
Slide 8: Demerger Overview
DEMERGER OVERVIEW CREATING TWO GLOBAL LEADERS Separately listed No cross-shareholding Financial Commercial & Power- Financial Agriculture Construction Services Specialty Vehicles train Services Strong governance Solid capital structures $ 15.5 BILLION Revenues1 €B11.9 ILLION Clear strategies and US
Slide 9: Demerger Roadmap
DEMERGER ROADMAP PROGRESSING TOWARDS INDEPENDENCE FOR IVECO GROUP Non-deal Road Show Iveco Group Listing: Nov 19-24 Sole listing on Euronext Milan CNHI EGM Today Dec 23 Share Structure: First day of Mirroring CNH Industrial's, Prospectus trading2 including special voting shares published1 Jan 3, 202
Slide 10: ESG Approach
ESG APPROACH COMMITTED TO A SUSTAINABLE FUTURE Safety First Target zero serious injuries in our workplace and leadership in making our roads safer for everyone Inclusive and Engaging Clear targets Develop our inclusive and engaging work environment and strengthen relationships set throughout with ou
Slide 11: On the Road with a Clear Strategy and a Strong Team
Gerrit Marx On the Road with a Clear Strategy and a Strong Team IVECO GROUP STRATEGY 11
Slide 12: Our Global Footprint
OUR GLOBAL FOOTPRINT WORLDWIDE PRESENCE WITH A STRONG EUROPEAN BASE Iveco Group 2019A Key Financials (IFRS) EUROPE [Industrial Activities] # of Units Sold: 112K % of Net Revenues: 78% ~€12bn Manufacturing Plants: 20 Total Net Revenues R&D Centres: 21 ~€0.4bn Adj. EBIT 3.6% N O R T H S O U T H R E S
Slide 13: Solid Foundations
SOLID FOUNDATIONS HEALTHY MOMENTUM FOR AN ONGOING TRANSFORMATION PRODUCT RANGE OPERATIONAL ALTERNATIVE COLLABORATIONS LIFECYCLE & POSITIONING PERFORMANCE POWERTRAIN & PARTNERSHIPS SERVICES Good market share Efficient and nimble Alternative Successful approach Full financial in multiple and organisat
Slide 14: Future Proof Points
FUTURE PROOF POINTS OUR AMBITIONS FOR THE NEXT FIVE YEARS PRODUCT RANGE OPERATIONAL ALTERNATIVE COLLABORATIONS LIFECYCLE & POSITIONING PERFORMANCE POWERTRAIN & PARTNERSHIPS SERVICES Continue the HDT1 Continuously improve Lead in core Grow existing Venture into turnaround in Europe quality and reduce
Slide 15: Win-Win Collaborations & Partnerships
WIN-WIN COLLABORATIONS & PARTNERSHIPS A DISTINCTIVE AND SUCCESSFUL APPROACH Product technology, Distinctive Approach … investment and know-how Establish balanced relationships based on joint monetisation model Partner with lean organisations without inflating structures Combine capabilities to rapid
Slide 16: Closed-Loop Total Cost of Ownership
CLOSED-LOOP TOTAL COST OF OWNERSHIP MAKING A DIFFERENCE – EVERY MILE O N T H E R O A D W I T H A C L E A R S T R A T E G Y A N D A S T R O N G T E A M 16
Slide 17: Sustainability Leadership
SUSTAINABILITY LEADERSHIP OUR OBJECTIVES AND COMMITMENTS Net Zero Carbon Safety First Circular Inclusive by 2040 and Engaging Our -50% in absolute CO2 -40% in employee injury 60% of water 20% of management People & emissions in our plants frequency rate 2026 vs recycled by 2026 positions held by 203
Slide 18: Leadership Team
LEADERSHIP TEAM EXPERIENCED AND FOCUSED GERRIT MARX CEO BUSINESS UNITS CLAUDIO SIMONE SYLVAIN LUCA DOMENICO CATALANO THOMAS OLIVATI BLAISE SRA NUCERA DEFENCE HILSE FINANCIAL POWERTRAIN TRUCK BUS VEHICLES FIREFIGHTING SERVICES FRANCESCO TANZI1 FINANCE EFFECTIVE CLEAR CUSTOMER-CENTRIC BUSINESS UNIT OR
Slide 19: Reflections on a Future Rich in Opportunity
REFLECTIONS ON A FUTURE RICH IN OPPORTUNITY ON THE ROAD WITH NEW ENERGY AND THE AMBITION TO CAPITALISE ON OUR STRENGTHS 1 One of Europe’s most agile & entrepreneurial commercial vehicle and powertrain groups: Offering a full range of vehicles Strong and independent powertrain business Best-in-class
Slide 20: On the Road in a Changing Industry Context
Gerrit Marx & Marco Liccardo On the Road in a Changing Industry Context INDUSTRY OVERVIEW 20
Slide 21: Fundamental Industry Changes
FUNDAMENTAL INDUSTRY CHANGES KEY TRENDS RESHAPING THE SECTOR Changing mobility needs New emissions targets Transforming industry landscape Technology advancements are creating opportunities O N T H E R O A D I N A C H A N G I N G I N D U S T R Y C O N T E X T 21
Slide 22: Changing Mobility Needs
CHANGING MOBILITY NEEDS INDUSTRY FOCUS ON CIRCULAR CARBON-NEUTRALITY & ZERO TAILPIPE EMISSIONS Net-Zero Ambitions Eco-Friendly Delivery Innovative Solutions Zero Carbon emissions All shipments net zero Electrification of last mile globally for all transport carbon by 2040, with 50% delivery - goal t
Slide 23: New Targets: Roadmap to Zero Emissions
NEW TARGETS: ROADMAP TO ZERO EMISSIONS AMBITIOUS REGULATORY PATH TO A MORE SUSTAINABLE INDUSTRY FUTURE Europe 2021 2025 2030 15% 30%+ Euro VI Fleet CO2 reduction Euro VII Fleet CO2 reduction MHDT Drive to net-zero 50%+ emissions Fleet CO2 reduction Euro VI 15% Euro VII of passenger cars EU Green Dea
Slide 24: Changing Industry Landscape
CHANGING INDUSTRY LANDSCAPE CUSTOMER EXPECTATIONS TRANSFORMING THE ECOSYSTEM End-customer Shipment tracking Forecasting driven ecosystem and condition Full data transparency Delivery time & ETA1 precision Production capacity and Cost efficiency network status & certainty End-to-end performance Trans
Slide 25: Technology Advancements
TECHNOLOGY ADVANCEMENTS ACCELERATING INDUSTRY TRANSFORMATION Projected Market Development Iveco Group Ambition TCO parity (First application)1 Further extend renewable fuels engine Today 2022 2024 2026 2028 2030 line-up Energy transition Grow leading e-Bus range; Intercity and H2 Range Extender to c
Slide 26: Expanding Opportunities
EXPANDING OPPORTUNITIES CHANGING MODELS AND LARGER ADDRESSABLE MARKET • Global MHDT1 Main use cases Industry Financing & leasing Use-based maintenance plans 2/3 Fleet & freight and insurance Current management Fuel and safety monitoring & conventional business advising, freight exchange and trailer
Slide 27: More to Come
MORE TO COME ADJACENT MARKETS ENABLED BY COMMERCIAL VEHICLES Emerging and established companies’ OEM of choice for innovation O N T H E R O A D I N A C H A N G I N G I N D U S T R Y C O N T E X T 27
Slide 28: On the Road with Innovation and Partnerships
Gerrit Marx & Annalisa Stupenengo On the Road with Innovation and Partnerships KEY INVESTMENT HIGHLIGHTS 28
Slide 29: On the Road with Innovation and Partnerships
ON THE ROAD WITH INNOVATION AND PARTNERSHIPS PRODUCT RANGE OPERATIONAL ALTERNATIVE COLLABORATIONS LIFECYCLE & POSITIONING PERFORMANCE POWERTRAIN & PARTNERSHIPS SERVICES O N T H E R O A D W I T H I N N O V A T I O N A N D P A R T N E R S H I P S 29
Slide 30: Product Range and Positioning
PRODUCT RANGE AND POSITIONING WELL-DIVERSIFIED OFFERING AND GLOBAL POWERTRAIN LEADER Light Commercial Medium & Heavy Bus Specialty Vehicles Powertrain Vehicles Duty Trucks 25% market share in Leader in growing CNG 26% market share Broad range of Global leader with best- Europe (professional and LNG
Slide 31: Product Range and Positioning: Key Initiatives
PRODUCT RANGE AND POSITIONING A LEADER IN LCV, BUS AND PT; ADDRESSING OPPORTUNITIES IN MHDT Light Commercial Medium & Heavy Bus Specialty Vehicles Powertrain Vehicles Duty Trucks Profitability1 Profitability1 Profitability1 Profitability1 Profitability1 Market Share Market Share Market Share Market
Slide 32: Performance Step-Change
PERFORMANCE STEP-CHANGE G R O U P W I D E O P E R AT I O N A L E X C E L L E N C E P R O G R A M M E T O L I F T P R O F I TA B I L I T Y Current • Grow Iveco customer and connected services offering Profitability • Roll out commercial excellence initiative • Enlarge FPTs non-captive engine customer
Slide 33: Zero Emissions – Expanding Vehicle Line-up
ZERO EMISSIONS – EXPANDING VEHICLE LINE-UP TAILORING OUR ZEV OFFERING TO EVOLVING CUSTOMER NEEDS Urban Delivery Regional Delivery Long-Haul Delivery Natural Gas Vehicles IVECO Eurocargo and S-Way xNG Battery Electric Vehicles NIKOLA TRE BEV EU (H1‘24)1 Medium & Hydrogen NIKOLA TRE FCEV EU (H1‘24) He
Slide 34: Collaborating & Partnering 'The Iveco Way'
COLLABORATING & PARTNERING ‘THE IVECO WAY’ EFFECTIVE INVESTMENT DRIVING BETTER INNOVATION Current Collaborations Product technology, & Partnerships investment and know-how New markets and business models Service and energy ecosystem Joint success is always the aim O N T H E R O A D W I T H I N N O V
Slide 35: Iveco and Nikola: A Powerful Combination
COLLABORATING & PARTNERING ‘THE IVECO WAY’ IVECO AND NIKOLA: A POWERFUL COMBINATION BATTERY ELECTRIC Development, Production and Commercialisation of Area New Range of Alternative Propulsion Vehicles 50/50 JV for production of Nikola TRE modular platform for BEV (Battery) and FCEV (Hydrogen) HDT Sco
Slide 36: Innovative Customer Solutions and Services
COLLABORATING & PARTNERING ‘THE IVECO WAY’ INNOVATIVE CUSTOMER SOLUTIONS AND SERVICES Area AI Powered Services Autonomous Driving Technology Battery Systems Technology Scope Integration of artificial intelligence- Co-development of PlusDrive L2+ and Development and production of based services & too
Slide 37: Lifecycle Services – End-to-End Care
LIFECYCLE SERVICES – END-TO-END CARE ADDRESSING CHANGING CONSUMER REQUIREMENTS End-Customer requirement Purchase Usage Customer Service Resale Vehicle data gathering IVECO ON delivering Customer uptime and Flexible options to Delivery time to offer the right vehicle and fleet downtime protection man
Slide 38: Lifecycle Services – Connected Solutions
LIFECYCLE SERVICES – CONNECTED SOLUTIONS ADVANCED CUSTOMER-FOCUSED TECHNOLOGY Technologies Solutions Autonomous Driving Operating Cost Productivity Reduce Increase FUEL CONSUMPTION FLEET Assistance Systems Driving style evaluation Real-time fleet for reduced fuel and management energy consumption. d
Slide 39: On the Road to a Step Change in Performance
Gerrit Marx & Oddone Incisa On the Road to a Step Change in Performance FINANCIAL AMBITION 39
Slide 40: Financial Ambition
FINANCIAL AMBITION TARGETING A STEP CHANGE IN PERFORMANCE 2019A- 2020A- 2021A- 12M 12M 9M 2026E 2026E vs 2019A IFRS €16.5bn CAGR Net Revenues €11.8bn €10.3bn €9.2bn to €17.5bn up to 5.0% Industrial Investments1 4.2% 3.9% 3.3% ~5.0% +80 BPS Activities 5.0% Adj. EBIT Margin % 3.6% (0.9%) 2.8% up to +2
Slide 41: Net Revenues Growth
NET REVENUES GROWTH GROWING THROUGH NEW PRODUCTS AND STRONG DEMAND Net Revenues of Industrial Activities IFRS, €bn CAGR IVECO GROUP C&SV +~5% CAGR +4.5% to 5.0% ~12 ~14 9 8 2019A 2020A 2024E 2026E ~17 ~15 CAGR 12 PT1 +~4% 10 4 3 ~4 ~5 2019A 2020A 2024E 2026E 2019A 2019A 2020A 2020A 2024E 2024E 2026E
Slide 42: Increasing Profitability
INCREASING PROFITABILITY TRANSFORMATION PROGRAMME DRIVING NEXT LEVEL PERFORMANCE Adj. EBIT Margin [%] of Industrial Activities IFRS €0.5bn DRIVE €0.5bn 0.5 5.0% 4.0% to 6.0% 3.6% to 5.0% 2019A Short-term Volume, Operations, SG&A, 2024E Run-rate SG&A, 2026E Raw Material & Price Quality R&D Improvemen
Slide 43: Ramping-Up Investment
RAMPING-UP INVESTMENT STAYING AT THE FOREFRONT OF INNOVATION Investments1 Investment Allocation IFRS, €bn New Energy Advanced 17% ~0.9 Driver +75% Assistance ~0.8 Systems, Digital & General 2022E - Safety 2026E 0.5 Regulation ~4.1 0.4 32% Conventional Product Maintenance & 2019A 1 2020A 2 2024E 3 20
Slide 44: Free Cash Flow and Leverage
FREE CASH FLOW AND LEVERAGE FREE CASH FLOW EXPANSION Industrial Activities IFRS, €bn 1.5 IFRS, €bn 2019A 2020A 2024E 2026E to 2.0 1.2 to 1.4 Third Party Debt 0.3 0.2 0.5 to 1.0 0.5 to 1.0 1.3 1.2 Net Leverage1 (1.0x) (1.6x) ~(0.9x) ~(1.0x) 0.5 0.3 Available 0.0 (0.1) Liquidity (Group) 1.8 1.6 ~3.5 ~
Slide 45: Expanding Financial Services
EXPANDING FINANCIAL SERVICES FULL RANGE OF CUSTOMER FOCUSED FINANCE SOLUTIONS Net Profit Managed average receivable portfolio, including JVs IFRS, €m IFRS, €bn Off-Book ~47% On-Book 2024E Retail and wholesale ~53% 6.0 to financing to Through the 7.0 customers and Group’s wholly- dealers through 77 >
Slide 46: Financial Policy
FINANCIAL POLICY KEY PRINCIPLES FOR PRESERVING A STRONG BALANCE SHEET Cash Deployment Framework (’22E-’26E) IFRS, €bn Solid Balance Clear and Aligned ~4.5 Sheet Management Shareholders ~10% Incentives Organic and Investments ~90% Shareholder Inorganic Growth Remuneration Investment O N T H E R O A D
Slide 47: On the Road to a New Energy Future
Gerrit Marx On the Road to a New Energy Future CLOSING REMARKS 47
Slide 48: Real Change – Real Transformation
REAL CHANGE – REAL TRANSFORMATION DILIGENT DAY BY DAY EXECUTION Rigorous Execution Resilient Organisation Partnership-Fueled Transformation Clear Strategic and Operational Priorities Aligned Incentives Experienced Leadership O N T H E R O A D T O A T O A N E W E N E R G Y F U T U R E 48
Slide 49: Product Range & Positioning summary
PRODUCT RANGE OPERATIONAL ALTERNATIVE COLLABORATIONS LIFECYCLE & POSITIONING PERFORMANCE POWERTRAIN & PARTNERSHIPS SERVICES Build on leadership Improve quality Offer solutions for specific Target best-fit and Deliver best TCO and customer missions think-alike partners customer experience Repositioni
Slide 50: Non-IFRS Financial Measures
NON-IFRS FINANCIAL MEASURES The Presentation also contains non-IFRS financial measures including adjusted EBIT of Industrial Activities, adjusted net profit (loss), free cash flow of Industrial Activities and net cash (debt) of Industrial Activities. The non-IFRS financial measures presented are not
Slide 51: Disclaimer (1/2)
DISCLAIMER (1/2) Advertisement: This presentation is an advertisement for the purposes of Regulation (EU) 2017/1129, as amended (the “Prospectus Regulation”) relating to the intention of Iveco Group N.V. (the "Company") to proceed with the proposed first admission to listing and trading of all of th
Slide 52: Disclaimer (2/2)
DISCLAIMER (2/2) This announcement does not constitute an offer of securities to the public in the United Kingdom. This announcement is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of A