Slide 1: Q3 & 9M 2024 results
Q3 & 9M 2024 results Turin, Italy – 7th November 2024
Slide 2: Cautionary Statement
INTRODUCTION CAUTIONARY STATEMENT Statements other than statements of historical fact contained in these slides, including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, cap
Slide 3: A quarter of new product introductions
INTRODUCTION A QUARTER OF NEW PRODUCT INTRODUCTIONS IVG closed the quarter with solid Q3 2024 Consolidated Net profitability, leveraging on continuous Revenues at €3.4bn, 7% down positive price realisation and diligent compared to Q3 2023 recast, with cost management, which Consolidated Adjusted EBI
Slide 4: Slide 4
Slide 5: Multi-energy strategy at IAA Transportation 2024 in Hannover
TRUCK MULTI-ENERGY STRATEGY AT IAA TRANSPORTATION 2024 IN HANNOVER eMOOVY (IVECO-Hyundai) S-eWAY RIGID • New segment for IVECO: ≤ 3.5t, fully electric • Driving range up to 400 km • Driving range up to 320 km • Fast charge at 350 kW: 200 km in <45 min • Super-fast charge: up to 100km in <10 min • Ur
Slide 6: Solid market shares, despite phase-out/in of new product range
TRUCK SOLID MARKET SHARES, DESPITE PHASE-OUT/IN OF NEW PRODUCT RANGE LCV INDUSTRY VOLUME M&H (3.5-7.49t) (Units, % change versus Q3 2023) (≥ 7.5t) South Rest of the South Rest of the Europe(1) America(2) World(3) Worldwide Europe(1) America(2) World(3) Worldwide • Q3 2024 European industry volumes w
Slide 7: Continuous pricing discipline and successful launch of new Model Year 2024
TRUCK TRUCK CONTINUOUS PRICING DISCIPLINE AND SUCCESSFUL LAUNCH OF NEW MODEL YEAR 2024 LCV BOOK-TO-BILL RATIO M&H (3.5-7.49t) WORLDWIDE (≥ 7.5t) LIGHT-DUTY TRUCKS • Order intake driven by the continuous pricing discipline and by the pre-buy effect of Model Year 2022 in H1 2024 25 Thousands of units
Slide 8: Production level constantly adapted to expected retail demand
TRUCK TRUCK PRODUCTION LEVEL CONSTANTLY ADAPTED TO EXPECTED RETAIL DEMAND LCV CHANNEL INVENTORY M&H (3.5-7.49t) (≥ 7.5t) • Company inventory expected to lower in Q4, as per normal seasonality • The phase-out of Model Year 2022 and phase-in of Model Year 2024 with our dealers is ongoing and will be c
Slide 9: World Premiere
wo Cc rn ad | | | WORLD PREMIERE |
Slide 10: Growing and solid market shares, with strong pricing positioning
BUS BUS GROWING AND SOLID MARKET SHARES, WITH STRONG PRICING POSITIONING INDUSTRY VOLUME (Units, % change versus Q3 2023) • Market share in Europe of City buses increased by Europe(1) South America(2) Rest of the World(3) Worldwide (18)% +33% (6)% (1)% 11.4% YoY, driven by strong commercial momentum
Slide 11: Order book now covering production into 2026
BUS ORDER BOOK NOW COVERING PRODUCTION INTO 2026 BOOK-TO-BILL RATIO WORLDWIDE 3.5 Thousands of units • Bus deliveries were up 12% versus Q3 2023, and 3.0 1.12 order intake was up 66% versus same period last 2.5 year 0.76* 2.0 • Book-to-bill ratio was at 1.12x at quarter end, almost 50% higher than Q
Slide 12: Powertrain
POWERTRAIN
Slide 13: ICE multi-energy platforms and E-PWT at IAA 2024 in Hannover
POWERTRAIN ICE MULTI-ENERGY PLATFORMS AND E-PWT AT IAA 2024 IN HANNOVER ICE multi-energy Electrification XCURSOR 13-litre hydrogen CURSOR 9-litre hydrogen eAX200-R • Performance up to 490 kWh • Zero CO2 emission solution for • Latest generation of electrified • First multi-fuel single base engine he
Slide 14: Managing the short term, while building a stronger future
POWERTRAIN MANAGING THE SHORT TERM, WHILE BUILDING A STRONGER FUTURE Thousands of units ENGINES SOLD WORLDWIDE • Engines’ volumes down 24% versus Q3 2023, 101.6 mainly driven by off-road applications 77.2 • Our efficiency program levers are well on track to partially offset impact from volumes decli
Slide 15: Defence
DEFENCE
Slide 16: Q3 2024 main product introductions and achievements
DEFENCE Q3 2024 MAIN PRODUCT INTRODUCTIONS AND ACHIEVEMENTS • 5th July 2024 – IDV signs a contract with the Brazilian • Successful delivery of the 200th Manticore Army to provide 420 Light Multirole Vehicles to the Dutch Armed Forces • 2nd August 2024 – IDV and RENK sign a cooperation • Constant ord
Slide 17: Electric products
Separatore con immagini Electric products
Slide 18: Scaling up our heavy-duty zero-emission vehicle range
IVECO GROUP SCALING UP OUR HEAVY-DUTY ZERO-EMISSION VEHICLE RANGE Electric products deliveries worldwide (units) eLCV eBuses(1) eAxles Batteries (3.5-7.49t) > 2,100 > 5,000 > 1,200 > 200 Presented at the end of 2022, first delivery in 2023 9M 2022 9M 2023 9M 2024 9M 2022 9M 2023 9M 2024 9M 2022 9M 2
Slide 19: Q3 2024 financials
Q3 2024 financials 2024 financial data shown in this presentation refer to Continuing Operations only, unless otherwise stated. In accordance with applicable accounting standards, the figures in the Income Statement and Statement of Cash Flows for 2023 comparative periods have been recast consistent
Slide 20: Continuing solid profitability and Adj. Net Profit uplift
Q3 2024 FINANCIALS Continuing solid profitability and Adj. Net Profit uplift, coupled with targeted cash flow recovery Consolidated Industrial Activities €3.4bn Net Revenues €3.4bn €0.39 Adjusted diluted EPS(1) (7.1)% (7.4)% +€0.07 €206mn Adjusted EBIT(1) €167mn €(286)mn Free Cash Flow of Industrial
Slide 21: Net Revenues of Industrial Activities contracting
Q3 2024 FINANCIALS Net Revenues of Industrial Activities contracting due to lower Truck and PT volumes, partially compensated by Bus and Defence positive performance Split by region and business unit – €mn, unless otherwise stated 12% 2% Change YoY 13% Europe (6)% By region South America (3)% 3,623
Slide 22: Pricing discipline and cost optimization underpinning robust Adj. EBIT
Q3 2024 FINANCIALS Pricing discipline and relentless product & other costs optimization underpinning robust Adj. EBIT of Industrial Activities performance Walk by driver – €mn, unless otherwise stated 5.3% 5.0% of which Europe & RoW +€60mn(1) 191 (91) 104 (71) 16 8 10 167 INDUSTRIAL INDUSTRIAL FX |
Slide 23: Profitability trajectory across all industrial businesses
Q3 2024 FINANCIALS Profitability trajectory proceeding apace across all industrial businesses, despite different market dynamics TRUCK DEFENCE • Adj. EBIT at €121mn, €(56)mn YoY, with positive price realization and product • Adj. EBIT at €23mn, +€10mn YoY, driven by higher volumes, a better mix and
Slide 24: Financial Services benefitting from portfolio increase
Q3 2024 FINANCIALS Financial Services benefitting from portfolio increase and further collection improvement ADJUSTED EBIT EQUITY AND RETURN ON ASSETS(1) (2) 2.5% 2.3% 2.3% 2.3% 2.1% 2.1% 2.1% 2.0% 2.0% 2.2% Q3 2024 €39mn 1.9% Q3 2023 €33mn 789 811 844 842 836 867 892 723 752 768 778 9M 2024 €102mn
Slide 25: +€56mn improvement in Free Cash Flow of Industrial Activities
Q3 2024 FINANCIALS +€56mn improvement in Free Cash Flow of Industrial Activities driven by inventory reduction Walk – 30th September and 3M 2024, €mn INDUSTRIAL FREE CASH FLOW: (286) 1,100 394 (49) (379) (72) (195) 15 (58) 11 767 CASH OUT FOR CAPITAL INCREASES, NET CASH Δ IN WORKING Δ IN PROVISIONS
Slide 26: Robust liquidity position and low-risk debt maturity profile
Q3 2024 FINANCIALS Robust liquidity position and low-risk debt maturity profile 30th September 2024, €mn AVAILABLE LIQUIDITY 4,376 Undrawn medium-term committed unsecured credit lines Bank debt Commercial Papers €mn 30th September 2024 31st December 2023 (1) 1,900 Cash & marketable securities Cash a
Slide 27: 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 28: 2024E Industry Volume Outlook
CEO CLOSING REMARKS 2024E INDUSTRY VOLUME OUTLOOK Units, % change versus 2023 Europe(1) South America(2) Rest of the World(3) Worldwide Light Commercial Vehicles ~ +5% FLAT FLAT FLAT / +5% (3.5-7.49t) Medium & Heavy trucks (15)% FLAT (5)% / FLAT (10)% (≥ 7.5t) Buses FLAT FLAT (5)% FLAT (1) 25 Europe
Slide 29: 2024E Financial Guidance Confirmed Once Again
CEO CLOSING REMARKS 2024E FINANCIAL GUIDANCE CONFIRMED ONCE AGAIN 2024E Guidance (excluding Fire Fighting business) Group Adjusted EBIT(1) €920 – 970mn Net Revenues ~ (4)% Industrial Activities (including currency translation effects) versus FY 2023 recast Adjusted EBIT(1) €790 – 840mn Free Cash Flo
Slide 30: CEO's Takeaway Messages
CEO CLOSING REMARKS CEO’S TAKEAWAY MESSAGES Starting from 2025 we will accelerate the implementation of our Efficiency Programme as well as 1 reprioritize some of our investments, reducing our total operational spending(1) without affecting our product plan Committed to continue the successful rolli
Slide 31: 9M 2024 financials
9M 2024 financials 2024 financial data shown in this presentation refer to Continuing Operations only, unless otherwise stated. In accordance with applicable accounting standards, the figures in the Income Statement and Statement of Cash Flows for 2023 comparative periods have been recast consistent
Slide 32: 9M 2024 Industry Volume
9M 2024 FINANCIALS 9M 2024 INDUSTRY VOLUME Units, % change versus 9M 2023 Europe(1) South America(2) Rest of the World(3) Worldwide Light Commercial Vehicles +12% (4)% +14% +12% (3.5-7.49t) Medium & Heavy trucks (8)% +16% (6)% (4)% (≥ 7.5t) Buses +4% +2% (6)% (2)% (1) 25 European countries (the 27 E
Slide 33: 9M 2024 Net Revenues of Industrial Activities
9M 2024 FINANCIALS 9M 2024 NET REVENUES OF INDUSTRIAL ACTIVITIES Split by region and business unit – €mn, unless otherwise stated 13% Change YoY 2% 11% Europe (4)% By region South America (11)% 10,965 10,457 74% North America (14)% INDUST. NET INDUST. NET Rest of the World (3)% REVENUES VOLUME AND M
Slide 34: 9M 2024 Adjusted EBIT of Industrial Activities
9M 2024 FINANCIALS 9M 2024 ADJUSTED EBIT OF INDUSTRIAL ACTIVITIES Walk by driver – €mn, unless otherwise stated 5.6% 6.0% of which Europe & RoW +€85mn(1) 613 (226) 363 75 (22) (35) (135) 632 INDUSTRIAL INDUSTRIAL FX | OTHER AND ADJUSTED EBIT VOLUME AND MIX NET PRICING PRODUCTION COST SG&A R&D ADJUST
Slide 35: 9M 2024 Adjusted EBIT Margin by Industrial Business Unit
9M 2024 FINANCIALS 9M 2024 ADJUSTED EBIT MARGIN BY INDUSTRIAL BUSINESS UNIT TRUCK DEFENCE • Adj. EBIT at €463mn, €(59)mn YoY • Adj. EBIT at €73mn, +€34mn YoY • Adj. EBIT margin at 6.5%, 30bps down YoY • Adj. EBIT margin at 9.6%, 290bps up YoY 9M 2024 6.5% 9M 2024 9.6% 9M 2023 6.8% 9M 2023 6.7% Q3 20
Slide 36: 9M 2024 Net Cash, Working Capital and FCF of Industrial Activities
9M 2024 FINANCIALS 9M 2024 NET CASH, WORKING CAPITAL AND FCF OF INDUSTRIAL ACTIVITIES Walk – 30th September and 9M 2024, €mn €80mn of BOPREAL subscription INDUSTRIAL FREE CASH FLOW: (820) 1,886 1,286 (160) (1,205) (218) (530) 7 (151) (148) 767 CASH OUT FOR CAPITAL INCREASES, NET CASH Δ IN WORKING Δ
Slide 37: Appendix
APPENDIX
Slide 38: Non-EU-IFRS Financial Measures
APPENDIX NON-EU-IFRS FINANCIAL MEASURES Iveco Group monitors its operations using 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’ abili
Slide 39: Geographic Information
APPENDIX 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
Slide 40: Q3 2024 versus 2023 Order Intake, Deliveries and Book-to-Bill
APPENDIX Q3 2024 VERSUS 2023 ORDER INTAKE, DELIVERIES AND BOOK-TO-BILL Excluding Specialty Vehicles (Defence and Fire Fighting). Order intake (#units) Deliveries (#units) Book-to-Bill (x) Q3 2024 Q3 2023 YoY % Q3 2024 Q3 2023 YoY % Q3 2024 Q3 2023 YoY % Trucks 15,768 20,081 (21)% 23,295 27,263 (15)%
Slide 41: 9M 2024 versus 2023 Order Intake, Deliveries and Book-to-Bill
APPENDIX 9M 2024 VERSUS 2023 ORDER INTAKE, DELIVERIES AND BOOK-TO-BILL Excluding Specialty Vehicles (Defence and Fire Fighting). Order intake (#units) Deliveries (#units) Book-to-Bill (x) 9M 2024 9M 2023 YoY % 9M 2024 9M 2023 YoY % 9M 2024 9M 2023 YoY % Trucks 50,967 71,252 (28)% 78,797 86,997 (9)%
Slide 42: Summary Table
APPENDIX SUMMARY TABLE €mn, otherwise stated Q3 2023 9M 2023 Q3 2024 YoY change 9M 2024 YoY change recast recast Truck 2,253 2,550 (11.6)% 7,157 7,686 (6.9)% Bus 547 466 +17.4% 1,573 1,373 +14.6% Defence 264 199 +32.7% 762 578 +31.8% Net Revenues Powertrain 742 952 (22.1)% 2,691 3,200 (15.9)% Elimin
Slide 43: Reconciliation Table (1/6)
APPENDIX RECONCILIATION TABLE (1/6) EBIT to Adjusted EBIT by business unit in Q3 2024 & Q3 2023 recast, and Powertrain Adjusted EBIT walk by driver – €mn Unallocated items, Industrial Financial Truck Bus Defence Powertrain Eliminations Consolidated eliminations & other Activities Services EBIT 119 2
Slide 44: Reconciliation Table (2/6)
APPENDIX RECONCILIATION TABLE (2/6) EBIT to Adjusted EBIT by business unit in 9M 2024 & 9M 2023 recast, and Powertrain Adjusted EBIT walk by driver – €mn Unallocated items, Industrial Financial Truck Bus Defence Powertrain Eliminations Consolidated eliminations & other Activities Services EBIT 455 8
Slide 45: Reconciliation Table (3/6)
APPENDIX RECONCILIATION TABLE (3/6) €mn, unless otherwise stated Q3 2024 Q3 2023 9M 2024 9M 2023 Reported Net profit (loss) from Continuing Operations 102 106 296 290 (a) Adjustments impacting Profit (Loss) before income tax (expense) benefit from Continuing Operations 5 7 153 68 (b) Adjustments imp
Slide 46: Reconciliation Table (4/6)
APPENDIX RECONCILIATION TABLE (4/6) €mn Q3 2024 Q3 2023 9M 2024 9M 2023 Negative impact from the agreement to transfer the Fire Fighting business - - 115 - Costs related to certain claims arising from the EU Commission’s 2016 Antitrust settlement decision 1 - 19 12 Restructuring costs 4 4 14 12 Spin
Slide 47: Reconciliation Table (5/6)
APPENDIX RECONCILIATION TABLE (5/6) Total (Debt) to Net Cash (Debt) Consolidated Industrial Activities Financial Services €mn 30th September 2024 31st December 2023(6) 30th September 2024 31st December 2023(6) 30th September 2024 31st December 2023 Third party (debt) (5,446) (5,768) (1,312) (1,191)
Slide 48: Reconciliation Table (6/6)
APPENDIX RECONCILIATION TABLE (6/6) Industrial Free Cash Flow €mn Q3 2024 Q3 2023 9M 2024 9M 2023 Net cash provided by (used in) Operating Activities from Continuing Operations (136) (172) (273) (228) - Cash flows from Operating Activities of Financial Services net of eliminations 30 (15) (24) (1) =
Slide 49: Investor Relations contacts
Investor Relations contacts E-mail: investor.relations@ivecogroup.com Website: www.ivecogroup.com/investors/contacts Contains confidential proprietary and trade secrets information of Iveco Group. Any use of this work without express written consent is strictly prohibited.
Slide 50: Thank you
THANK YOU IVECO*GROUP WE GO BEYOND