Gestamp Automocion S.a. · BME:GEST
Gestamp Automocion — H1 2020 Earnings Presentation
31 slides from Gestamp Automocion's earnings presentation, Jul 30, 2020
Slide 1: H1 2020 Results Presentation
July 30th, 2020 H1 2020 Results Presentation G-LAB FAMILY FROM THE GESTAMP´S G-LAB PROGRAM
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 June 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 following lim
Slide 3: Agenda
Agenda Key Highlights for Q2 and H1 2020 Financial Overview Outlook and Remarks © Gestamp 2020 3
Slide 4: Key Highlights for Q2 and H1 2020
Key Highlights for Q2 and H1 2020 Q2 2020 has been the toughest period for the Automotive Sector as well as the Global Economy in the last 75 years with a drop in Global L.V. Production volumes of -45%(1) DURING THIS PERIOD • Gestamp´s business model proven • Preserve and enhance our LT strategy to
Slide 5: Financial Performance in Q2 2020
Financial Performance in Q2 2020 (In €m) – Excluding Transformation Cost Q2 2019 Q2 2020 Total Revenue 2,344 1,034 EBITDA 272 23 EBITDA margin (%) 11.6% 2.3% EBIT 135 -130 EBIT margin (%) 5.8% -12.6% Net Income 59 -134 Net debt 2,486 2,652 Operating Leases (IFRS 16) 402 386 Q2 2020 Revenue decreased
Slide 6: Financial Performance in H1 2020
Financial Performance in H1 2020 (In €m) – Excluding Transformation Cost H1 2019 H1 2020 Total Revenue 4,513 3,045 EBITDA 521 216 EBITDA margin (%) 11.5% 7.1% EBIT 244 -87 EBIT margin (%) 5.4% -2.9% Net Income 100 -120 Net debt 2,486 2,652 Operating Leases (IFRS 16) 402 386 H1 2020 Revenue decreased
Slide 7: Automotive Growth H1 2020 vs. H1 2019
Automotive Growth H1 2020 vs. H1 2019 Gestamp Revenue Growth at Constant FX vs. Market Production Growth in Gestamp Markets Eastern Europe NAFTA Western Europe -33.9% -27.5% Market Gestamp -28.8% -35.4% Asia -39.1% -43.2% Market Gestamp Market Gestamp -16.8% Mercosur -25.7% Market Gestamp Total in O
Slide 8: Automotive Growth H1 2020 vs. H1 2019
Automotive Growth H1 2020 vs. H1 2019 Weighted IHS Growth vs. Gestamp Growth H1 2020 vs. H1 2019 IHS H1 2019 Geographical Split IHS H1 2020 Growth by Region -20% 9% 2% 25% -33% 16% -40% IHS H1 2020 -51% 4% WEIGHTED -44% 25% Growth: -39.0% 19% -32% -28% Gestamp H1 2020 Gestamp H1 2019 Geographical Sp
Slide 9: Difficult Quarter Already Behind – Monthly Performance Improvement
Difficult Quarter Already Behind – Monthly Performance Improvement Revenue Growth Evolution (% vs. 2019) EBITDA Margin Evolution (%) • Revenue evolution expected to perform better as the year progresses, as • Despite sharp declines in Revenue, EBITDA margin almost back to seen in the monthly trend i
Slide 10: Labour Flexibility and Optimization of Cost Base
Labour Flexibility and Optimization of Cost Base Implementation of Flexibility Measures During the Crisis Personnel Expenses reduction Other General Expenses reduction -19.6% -32.1% H1 2020: € 665m H1 2020: € 400m H1 2019: € 827m H1 2019: € 590m (-37.3% Q2 2020 vs Q2 2019) (-55.4% Q2 2020 vs Q2 2019
Slide 11: Strong Focus on Cost Flexibility
Strong Focus on Cost Flexibility Resilient and Flexible Cost Structure – Operating Leverage(1) Q1 2020 Q2 2020 Revenue Revenue -€158m -€1,310m EBITDA EBITDA -€56m -€249m Gestamp will maintain its cost flexibility throughout the year Operating Operating Leverage 35.4% Leverage 19.0% Limited time to
Slide 12: Gestamp's Transformation Plan – Global Context
Gestamp‘s Transformation Plan – Global Context Historical Gestamp Revenues vs IHS LV Production Gestamp Revenues €m IHS LV Production July 2020 (MVeh) IHS LV Production Oct 2019 (MVeh) +2% 95,1 97,2 • Gestamp has maintained a high growth 93,1 94,2 94,2 91,8 sales trend accompanying the auto 88,8 88,
Slide 13: Gestamp's Transformation Plan – Selection of Actions
Gestamp‘s Transformation Plan – Selection of Actions Gestamp had Already Identified Specific Measures Aimed at Increasing Efficiency • Labor force adjustment in W. Europe and America to adapt to lower volumes • Rationalization and consolidation of UK’s footprint (announced plant closures) • LABEX co
Slide 14: Gestamp's Transformation Plan – Actions
Gestamp‘s Transformation Plan – Actions Transformation Plan EBITDA Impact ALL OPERATIONS 13% 11.8% LABEX • Adjustment to new sales level NEW LABEX • Efficiency targets STRUCTURE • Phase 1 – Short Term OPEX • Phase 2 – Structural NEW COSTS (maintenance project, STRUCTURE 2019 2022 centralization, aut
Slide 15: Agenda
Agenda Key Highlights for Q2 and H1 2020 Financial Overview Outlook and Remarks © Gestamp 2020 15
Slide 16: Financial Summary Overview
Financial Summary Overview Transformation Plan Impact in Key Parameters in H1 20 EBITDA EBIT Net Income Considerations 216 • Cash impact of €90m and €13m of non-cash impact 90 ‒ Expected cash impact 126 -87 during the course of the 103 -120 next twelve months 78 -190 -199 H1 20 Transf. H1 20 H1 20 T
Slide 17: Western Europe Financial Overview
Western Europe Financial Overview Considerations (In €m) • High drop in activity in Q2 with the market 1,064 2,061 declining -66.6% vs. Q2 2019 ‒ Spain, Portugal and Germany slightly Revenue better performance than the rest 1,332 437 • Operations in Western Europe have shown high resilience with ope
Slide 18: Eastern Europe Financial Overview
Eastern Europe Financial Overview Considerations (In €m) • High drop in activity in Q2 with the market 696 declining -55.9% vs. Q2 2019 373 478 ‒ Poland, Czech Republic and Russia Revenue with slightly better performance 165 than the rest • Operations in Eastern Europe have shown good flexibility wi
Slide 19: NAFTA Financial Overview
NAFTA Financial Overview Considerations (In €m) • Drop in activity levels in Q2 higher than the 940 ones experienced in Europe 480 665 • Restart after shutdowns delayed in Mexico Revenue until late May 170 • Operations in NAFTA have shown good flexibility, mainly in Q2, with operating leverage reach
Slide 20: Mercosur Financial Overview
Mercosur Financial Overview Considerations (In €m) • Mercosur was the region with highest activity drop in Q2 due to COVID-19 296 156 • Most of the OEM plants delayed restart of Revenue operations to June 143 • Significant BRL devaluation impacting our 17 results at all levels Q2 2019 Q2 2020 H1 201
Slide 21: Asia Financial Overview
Asia Financial Overview Considerations (In €m) • Moderate impact of COVID-19 in Asia in Q2 vs. RoW as impact was in Q1 521 270 428 • Strong recovery of activity levels in China in Revenue 245 Q2, partially offset by a slow start of activity in India • Strong operational performance vs. 2019 despite
Slide 22: Significant Effort to Enhance Financial Flexibility
Significant Effort to Enhance Financial Flexibility Operations Flexibility of our operational costs to mitigate drop of activity Capex – strict control (-49% vs. Q2 19), no impact on customer commitments Working Capital Mgmt – €181m inflow in H1 20 (excluding factoring) Short-term Financial €874m Ne
Slide 23: Capital Expenditure Overview H1 2020
Capital Expenditure Overview H1 2020 Capex Breakdown Considerations (In €m) • Capex declined to €257m in H1 2020, reducing Capex as % 9.2% Capex as % 8.4% total capex by 38% or €160m vs. H1 19 of revenue of revenue ‒ Preserving projects already committed 417 Intangible 1.3% ‒ During 2Q 2020 capex wa
Slide 24: Net Financial Debt Position H1 2020 and Debt Maturities to 2022
Net Financial Debt Position H1 2020 and Debt Maturities to 2022 FCF Generation in L12M and Net Debt Evolution – Excl. IFRS 16 Considerations (In €m) • Free cash flow generation of €44m over the last €44m FCF twelve months (or €130m pre dividends)(1) 3,137 165 3,093 650 -209 441 ‒ Strong focus on wor
Slide 25: Liquidity Position as of H1 2020
Liquidity Position as of H1 2020 Liquidity Evolution Liquidity Position Composition as of H1 2020 Considerations (In €m) (In €m) +325 • Current liquidity position stood at €2.1bn 2,143 (vs. €2.0bn in Q1 20), an increase of €325m 322 2,143 vs. FY 2019 1,988 1,818 284 • As of June 30th liquidity was s
Slide 26: Agenda
Agenda Key Highlights for Q2 and H1 2020 Financial Overview Outlook and Remarks © Gestamp 2020 26
Slide 27: Sustainability – People, Society, Environment
Sustainability – People, Society, Environment People Society Environment Standardized PROTOCOLS PRODUCTION of sanitary and Gestamp has continued its implemented in 100% of protective material efforts to reduce its all Plants and offices environmental impact Daily monitorization and communication acr
Slide 28: Sustainability – Customers
Sustainability – Customers Gestamp has maintained its continuous communication with all clients throughout the pandemic and has maintained LT strategy CRISIS FUTURE • Close communication and constant • Preserved Long-term strategy and information sharing with all our clients relationship with client
Slide 29: Status Update on Outlook for 2020
Status Update on Outlook for 2020 Updated outlook for FY 2020 based on current estimates of underlying auto production volumes Updated Outlook for 2020 Capex at ~ €500m (2) EBITDA margin of 9-10% (1) Net Debt at around 2019 Levels (1) (2) (Sharp reduction of -37% vs. 2019) Improving profitability
Slide 30: Closing Remarks
Closing Remarks Q2 has been the toughest for the automotive sector as well as the global economy but GEST has weathered the storm Short-Term Long-Term Gestamp’s Q2 performance Transformation Plan key for underpins our flexible and resilient Gestamp´s future business model Solid commitments with Peop
Slide 31: Investor Relations
Investor Relations +34 91 275 28 72 investorrelations@gestamp.com www.gestamp.com © Gestamp 2020 © Gestamp 2020 31