Slide 1: 9M 2020 Results Presentation
G-LAB FAMILY FROM THE GESTAMP´S G-LAB PROGRAM 9M 2020 Results Presentation October 29th, 2020
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 September 30, 2020. 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
Slide 3: Agenda
Agenda Key Highlights for Q3 and 9M 2020 Financial Overview Outlook and Remarks © Gestamp 2020 3
Slide 4: Key Highlights for Q3 and 9M 2020
Key Highlights for Q3 and 9M 2020 Performance in Q3 has been solid with a 7.1% outperformance of L.V. Production volumes (1), continued improvement in profitability and FCF generation DURING THIS PERIOD • Solid top line growth with market • We reiterate our Guidance for FY 20 outperformance across r
Slide 5: Financial Performance in Q3 2020
Financial Performance in Q3 2020 (In €m) Q3 2019 Q3 2020 Total Revenue 2,059 2,038 EBITDA 234 244 EBITDA margin (%) 11.4% 12.0% EBIT 94 105 EBIT margin (%) 4.5% 5.2% Net Income 28 28 Net debt 2,664 2,348 Operating Leases (IFRS 16) 407 368 Q3 2020 Revenue increased by 5.3% at constant FX and EBITDA i
Slide 6: Financial Performance in 9M 2020
Financial Performance in 9M 2020 (In €m) – Excluding Transformation Cost 9M 2019 9M 2020 Total Revenue 6,572 5,083 EBITDA 755 460 EBITDA margin (%) 11.5% 9.1% EBIT 338 18 EBIT margin (%) 5.1% 0.4% Net Income 128 -92 Net debt 2,664 2,348 Operating Leases (IFRS 16) 407 368 9M 2020 Revenue decreased by
Slide 7: Automotive Growth 9M 2020 vs. 9M 2019
Automotive Growth 9M 2020 vs. 9M 2019 Gestamp Revenue Growth at Constant FX vs. Market Production Growth in Gestamp Markets Eastern Europe NAFTA Western Europe -23.4% -14.3% Market Gestamp -18.0% -24.7% Asia -25.5% -33.6% Market Gestamp Market Gestamp -10.2% Mercosur -16.7% Market Gestamp Total in 9
Slide 8: Continued Cost Savings During the Quarter
Continued Cost Savings During the Quarter Implementation of Flexibility Measures (Labour + Other General Expenses) H1 2020 vs. H1 2019 Q3 2020 vs. Q3 2019 Strong cost saving mode in H1 -€1,468m -€21m to adjust to COVID-19 crisis Revenue -32.5% decrease -1.0% decrease Further cost reductions in Q3 de
Slide 9: Update on Gestamp's Transformation Plan
Update Updateon onGestamp‘s Gestamp‘sTransformation PlanPlan Transformation Changing Context For Gestamp Will Require The Same Proven Resilience Shown In 2008/2009 High Growth Period Normalized Growth Increase Of Corporate / Cost Reduction Of Support Support Structures Functions Concentration Of Pro
Slide 10: Financial Performance
Financial Performance EBITDA Net Income Considerations (In €m) (In €m) • EBITDA higher than in Q3 2019 +10.3 +0.4 despite 1.0% decline in Revenues 234.0 244.3 28.0 28.4 • Net Income of €28.4m slightly higher than Q3 2019, despite higher ‒ Exchange losses due to FX headwinds ‒ Minority outflow due to
Slide 11: Agenda
Agenda Key Highlights for Q3 and 9M 2020 Financial Overview Outlook and Remarks © Gestamp 2020 11
Slide 12: Revenue and EBITDA Summary Overview
Revenue and EBITDA Summary Overview (In €m) 6,572 2,059 5,083 Revenue 2,038 Q3 2019 Q3 2020 9M 2019 9M 2020 Growth at constant FX: 5.3% Growth at constant FX: -19.5% (In €m) EBITDA 11.4% 12.0% 11.5% 9.1% margin (%) 755 244 EBITDA (excl. Transf. Costs) 234 460 Q3 2019 Q3 2020 9M 2019 9M 2020 Growth a
Slide 13: Western Europe Financial Overview
Western Europe Financial Overview Considerations (In €m) • Solid recovery of activity levels, after a 2,869 challenging Q2, with a 2.6% Revenue 829 2,161 increase vs. Q3 2019 808 Revenue ‒ Particularly strong in Iberia; but ‒ Weaker in the UK due to a slower recovery of volumes Q3 2019 Q3 2020 9M 20
Slide 14: Eastern Europe Financial Overview
Eastern Europe Financial Overview Considerations (In €m) • Revenue growth of 6.8% during Q3 2020 vs. Q3 2019 due to 296 973 774 ‒ A recovery of volumes; and Revenue normalization of new project 277 ramp-ups ‒ Despite strong FX headwinds (mainly Q3 2019 Q3 2020 9M 2019 9M 2020 Turkey and Russia) as w
Slide 15: NAFTA Financial Overview
NAFTA Financial Overview Considerations (In €m) • Revenues during the quarter slightly higher 1,486 than Q3 2019 at constant FX 546 1,178 ‒ Growth in the US due to pick-up of Revenue activity as well as normalization of 513 ramp-ups; but partially offset by ‒ Slower recovery of activity levels in Q3
Slide 16: Mercosur Financial Overview
Mercosur Financial Overview Considerations (In €m) • Revenue in Q3 2020 impacted by very 447 significant FX headwinds as well as the 152 delay of activity vs. the rest of the regions Revenue 271 • EBITDA margin in Q3 2020 impacted by 128 ‒ Slower recovery of activity levels; Q3 2019 Q3 2020 9M 2019
Slide 17: Asia Financial Overview
Asia Financial Overview Considerations (In €m) • Revenue growth of 2.2% at constant FX vs. Q3 2019 798 276 272 700 Revenue ‒ Solid growth in China; but ‒ Partially offset due to slower recovery of volumes in India Q3 2019 Q3 2020 9M 2019 9M 2020 • Strong EBITDA margin during Q3 2020 Growth at consta
Slide 18: Further Capital Expenditure Decline during 9M 2020
Further Capital Expenditure Decline during 9M 2020 Capex Breakdown Considerations (In €m) • Gestamp has been able to reduce capex and Capex as % Capex as % demonstrate resilience in difficult times 9.0% 7.2% of revenue of revenue • Strict capex control resulting in a -38% decline during 9M 2020 to €
Slide 19: Reduction of Net Debt Position in 9M 2020
Reduction of Net Debt Position in 9M 2020 LTM Net Debt Evolution (9M 2019 to 9M 2020) Considerations (In €m) • Net Debt (excl. IFRS 16) reduction of €316m in 9M 2020 vs. 9M 2019 despite being a negative 2,664 period in terms of net debt seasonality 2,348 ‒ Free cash flow generation of €364m over FCF
Slide 20: Increased Liquidity Position during 9M 2020
Increased Liquidity Position during 9M 2020 Liquidity Evolution Liquidity Position Composition as of 9M 2020 Considerations (In €m) (In €m) +636 • Improved liquidity position as a prudent 2,454 308 2,454 financial policy 2,143 260 • Liquidity position increased to €2.5bn 1,988 (vs. €2.1bn in Q2 2020
Slide 21: Agenda
Agenda Key Highlights for Q3 and 9M 2020 Financial Overview Outlook and Remarks © Gestamp 2020 21
Slide 22: Confirmed Outlook for 2020 Published in H1 2020
Confirmed Outlook for 2020 Published in H1 2020 We confirm our FY 2020 Guidance provided during our H1 2020 results presentation after a solid Q3 Outlook for 2020 Confirmed Capex at ~ €500m (2) EBITDA margin of 9-10% (1) Net Debt at around 2019 Levels (1) (2) (Sharp reduction of -37% vs. 2019) Imp
Slide 23: Closing Remarks
Closing Remarks Solid Q3 with an increase in EBITDA and strong FCF generation despite continued challenging market conditions Short-Term Long-Term Q3 EBITDA 2020 > previous year Future growth fueled by lower with consolidation of cost savings in capex intensity due to optimization line with our Tran
Slide 24: Investor Relations
Investor Relations +34 91 275 28 72 investorrelations@gestamp.com www.gestamp.com © Gestamp 2020 © Gestamp 2020 24