Gestamp Automocion S.a. · BME:GEST

Gestamp Automocion — H1 2021 Earnings Presentation

21 slides from Gestamp Automocion's earnings presentation, Jul 26, 2021

  1. Slide 1: H1 2021 Results Presentation

    July 26th, 2021 H1 2021 Results Presentation G-LAB FAMILY FROM THE GESTAMP´S G-LAB PROGRAM

  2. Slide 2: Disclaimer

    Disclaimer This presentation has been prepared solely for use at this presentation of our results as of and for the first half ended June 30th, 2021. By attending the conference call meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the followin

  3. Slide 3: Agenda

    Agenda Highlights for H1 2021 Financial Overview Outlook and Remarks © Gestamp 2021 3

  4. Slide 4: Focus on Profitability and FCF Generation

    Focus on Profitability and FCF Generation Solid results in H1 despite a more complex volume momentum in Q2 due to the semiconductors shortage impact 1 2 3 Lower production Preserving profitability: 10.8 p.p. Market volumes in Q2 vs. Q1 EBITDA margin outperformance in H1 (1) (semiconductor shortage)

  5. Slide 5: Financial Performance in H1 2021

    Financial Performance in H1 2021 (In million Euros – excl. TP) H1 2020 H1 2021 Total Revenue 3,045 4,076 EBITDA 216 498 EBITDA margin (%) 7.1% 12.2% EBIT -87 208 EBIT margin (%) -2.9% 5.1% Net Income -120 83 Capex (excl. IFRS 16) 257 212 Net debt (excl. IFRS 16) 2,652 2,066 Operating Leases (IFRS 16

  6. Slide 6: Financial Performance in Q2 2021

    Financial Performance in Q2 2021 (In million Euros – excl. TP) Q2 2020 Q2 2021 Total Revenue 1,034 1,967 EBITDA 23 240 EBITDA margin (%) 2.3% 12.2% EBIT -130 96 EBIT margin (%) -12.6% 4.9% Net Income -134 32 Capex (excl. IFRS 16) 111 102 Q2 2021 Revenue increased by 95.9% at constant FX and EBITDA i

  7. Slide 7: Automotive Growth H1 2021 vs. H1 2020

    Automotive Growth H1 2021 vs. H1 2020 Gestamp Revenue Growth at Constant FX vs. Market Production Growth in Gestamp Markets Eastern Europe 47.1% 32.4% NAFTA Western Europe 35.7% Market Gestamp 44.0% 35.2% 26.1% Asia Market Gestamp Market Gestamp 26.6% 22.3% Mercosur Market Gestamp 97.2% 63.1% Total

  8. Slide 8: Supply Chain Disruptions Impact on Production Volumes

    Supply Chain Disruptions Impact on Production Volumes Quarterly forecast - Supply Chain Disruptions – Semiconductors Global Light Vehicle production volumes in IHS quantifies the volumes lost in -1.44 Mveh for Q1 Q2 21 were -15.1% below those of Q2 19, and -2.59 Mveh for Q2, and forecasts -0.86 Mveh

  9. Slide 9: Outlook for the Auto Market in the Coming Quarters

    Outlook for the Auto Market in the Coming Quarters NAFTA LV Inventory Assessment (1) (Days Supply) -39.7% 101 Global LV Production (1) 72 70 72 68 73 70 70 73 66 +1.9% 46 47 48 42 89.0 90.7 82.0 29 29 74.6 Q3-21E Q1-18A Q2-18A Q3-18A Q4-18A Q1-19A Q2-19A Q3-19A Q4-19A Q1-20A Q2-20A Q3-20A Q4-20A Q1-

  10. Slide 10: Transformation Plan – Execution on Track

    Transformation Plan – Execution on Track H1 2019 H1 2020 H1 2021 Execution of the first phase of LABEX €826m €665m €731m our Transformation Plan Less project launches and OPEX €590m €400m €506m greenfields Focus on industrial and 86.7% operational efficiencies LABEX + OPEX / 78.5% Gross 75.9% Margin

  11. Slide 11: Continuous Financial Performance Enhancement

    Continuous Financial Performance Enhancement EBITDA Margin Trend (%) Considerations • Strong profitability track record and 12.7% 12.5% 12.3% 12.2% 11.6% 12.0% QoQ variation despite the lower 11.4% volumes in Q2 21 vs. Q1 21 thanks 9.6% to: − Cost reduction measures from the Transformation Plan − Op

  12. Slide 12: Agenda

    Agenda Key Highlights for H1 2021 Financial Overview Outlook and Remarks © Gestamp 2021 12

  13. Slide 13: Consolidating Positive Performance Despite Tough Market Conditions

    Consolidating Positive Performance Despite Tough Market Conditions Revenues (€m) EBITDA (€m) EBITDA Margin (%) H1 20 H1 21 Var. (%) H1 20 H1 21 Var. (%) H1 2020 H1 2021 1,332 1,810 35.9 % 64 193 198.9 % Western Europe 4.8% 10.6% Outperformance: +9.6 p.p. Performance at constant FX: +198.6 % 478 640

  14. Slide 14: Capex Control Still Within Our Top Priorities

    Capex Control Still Within Our Top Priorities Reported Capex Breakdown (excl. IFRS 16) (In €m) Capex as % Capex as % Capex as % of revenue of revenue of revenue 9.2% 8.4% 5.2% 417 1.9% 57 257 6.0% 183 212 1.3% 40 0.9% 37 3.3% 101 1.5% 63 5.8% 176 3.8% 116 2.7% 112 H1 2019 H1 2020 H1 2021 Recurrent G

  15. Slide 15: Focus on Generating Free Cash Flow

    Focus on Generating Free Cash Flow (In million Euros) + EBITDA 498 FCF Generation (€m) +/- ∆ Working Capital -41 91 - Capex (1) -321 71 - Taxes -18 +/- Other Non-Cash Items (2) -23 19 = Operating Free Cash Flow 95 - Financial Interests -76 = Free Cash Flow (3) H1 2021 Excl. Factoring H1 2021 (4) 19

  16. Slide 16: Net Debt Reduction in H1 2021

    Net Debt Reduction in H1 2021 Net debt (excl. IFRS16) Considerations (In €m) H1 2020 FY 2020 H1 2021 • Net debt reached €2,066m (excl. IFRS 16) at H1 Net Debt (excl. IFRS 16) 2,652 2,058 2,066 2021, remaining broadly stable vs. FY 2020 Operating Leases (IFRS 16) 386 427 414 • Continued improvement o

  17. Slide 17: 2023 Bonds Redemption, Moody's Upgrade and Minority Repurchase

    2023 Bonds Redemption, Moody’s Upgrade and Minority Repurchase Successfully redeemed at par value all of our €500m senior secured notes due in 2023 1 Debt maturities as of June 30th after repurchase Focus on improving Use of our (in €m) credit rating Our motivations outstanding to repurchase liquidi

  18. Slide 18: Agenda

    Agenda Key Highlights for H1 2021 Financial Overview Outlook and Remarks © Gestamp 2021 18

  19. Slide 19: Upgrading Guidance for 2021

    Upgrading Guidance for 2021 Former Guidance 2021 Revised Guidance 2021 Mid-single digit outperformance Mid-single digit outperformance Revenues to the market to the market EBITDA margin EBITDA margin >12% EBITDA margin >12% Capex (1) ~ 7% of revenues < 6.5% of revenues > €100m reduction vs. Net Debt

  20. Slide 20: Closing Remarks: Key Highlights and Outlook for 2021

    Closing Remarks: Key Highlights and Outlook for 2021 MARKET OUTPERFORMANCE OF 10.8 p.p. IN H1 2021 (1) 1 Diversified customer base and product portfolio to face any adverse market scenario EBITDA MARGINS ABOVE 12% 2 Solid EBITDA margins despite lower volumes, proving the success of our Transformatio

  21. Slide 21: Investor Relations

    Investor Relations +34 91 275 28 72 investorrelations@gestamp.com www.gestamp.com © Gestamp 2021 © Gestamp 2021 21

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