Slide 1: Presentation of H1 2017 Results
Presentation of H1 2017 Results July 24th, 2017 © Gestamp 2017
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, 2017. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. This p
Slide 3: Agenda
Agenda Key Highlights for H1 2017 Financial Overview Outlook for 2017 © Gestamp 2017 3
Slide 4: Key Highlights of H1 2017
Key Highlights of H1 2017 • Gestamp has continued to build on its long standing growth trend during the first half of 2017 vs. H1 2016 and continues to outperform the market by more than 5x(1) − Revenue grew by 10.4% and EBITDA by 11.1% (11.1% and 12.8% at constant FX respectively) − Net Income grew
Slide 5: Gestamp’s Strong Financial Performance in H1 2017
Gestamp’s Strong Financial Performance in H1 2017 (In € MM) H1 2016 H1 2017 %Δ (1) Total Revenue 3,741 4,131 +10.4% (1) EBITDA 407 452 +11.1% EBITDA margin (%) 10.9% 11.0% +6bps EBIT 215 242 +12.6% EBIT margin (%) 5.8% 5.9% +11bps Net Income 92 116 +27.2% Net debt 1,783 2,080 (1) Revenue at constant
Slide 6: Gestamp’s Solid Financial Performance During Q2 2017
Gestamp’s Solid Financial Performance During Q2 2017 (In € MM) Q2 2016 Q2 2017 %Δ (1) Total Revenue 1,936 2,035 +5.1% (1) EBITDA 215 230 +7.2% EBITDA margin (%) 11.1% 11.3% +21bps EBIT 116 123 +5.9% EBIT margin (%) 6.0% 6.0% +4bps Net Income 50 61 +22.3% Net debt 1,783 2,080 (1) Revenue at constant
Slide 7: Current Footprint and Plants under Construction
Current Footprint and Plants under Construction 101 Plants 8 Additional Plants Across all Key Automotive Regions Under Construction, Thereof 6 Outside Europe 13 Plants + 3 Construction 14 + 3 17 + 1 45 + 1 12 Gestamp plants Plants under construction • 5 new plants added to footprint in H1; started c
Slide 8: Global Auto Market Update
Global Auto Market Update • Global light vehicle production grew by 2.6% during H1 2017 (vs. H1 2016) with the regions in which Gestamp is present growing at a 1.9% growth rate − Growth in Gestamp regions mainly driven by strong market production in particular in Mercosur (+16.1%) and Eastern Europe
Slide 9: Automotive Growth H1 2017 vs. H1 2016
Automotive Growth H1 2017 vs. H1 2016 Gestamp Revenue Growth vs. Market Production Growth in Gestamp’s Footprint Eastern Europe NAFTA 29.2% Western Europe 6.7% 0.4% 9.2% Market Gestamp -0.1% Market Gestamp -2.7% Asia Market Gestamp 2.7% Mercosur 1.2% 54.3% Market Gestamp Total in Our Footprint 16.1%
Slide 10: Strong Financial Performance
Strong Financial Performance EBITDA Net Income Considerations • EBITDA experienced a €45m +€45m +€15m +€24m +€11m increase vs. H1 2016, €452m €230m representing an 11.1% growth rate €116m €61m €215m €50m and 12.8% excluding FX effect €407m €92m • Strong Net Income growth with a 27.2% increase vs. H1
Slide 11: Agenda
Agenda Key Highlights for H1 2017 Financial Overview Outlook for 2017 © Gestamp 2017 11
Slide 12: Revenue and EBITDA Summary Overview
Revenue and EBITDA Summary Overview (In € MM) Considerations • H1 Revenue: 4,131 2,035 − Very strong growth in Mercosur and Eastern 3,741 1,936 Europe and solid performance in Western Europe Revenue • Q2 Revenue: − Lower growth versus Q1 due to seasonality impact (Easter Holiday) on working days and
Slide 13: Western Europe Financial Overview
Western Europe Financial Overview (In € MM) Considerations • H1 Revenue growth of 9.2% or 11.1% at constant FX reaching €2,144m 2,144 1,963 − Solid growth in France (ramp-up of new PSA 1,018 1,044 programs) and in Iberia (higher volumes) Revenue − Moderate growth in Germany and decrease in the UK (F
Slide 14: Eastern Europe Financial Overview
Eastern Europe Financial Overview (In € MM) Considerations • H1 Revenue growth of 29.2% or 34.3% at constant FX reaching €484m 484 374 − Higher tooling revenues 260 − Continuing growth in activity particularly in Revenue 201 Poland (ramp-up of new VW Crafter), and in Turkey (FCA and Ford) − Incorpor
Slide 15: NAFTA Financial Overview
NAFTA Financial Overview (In € MM) Considerations • H1 Revenue growth of 0.4% or -0.5% at constant FX reaching €752m 752 − After several years of high growth, 2017 is 748 384 359 budgeted as a transition year Revenue − Change-over of large programs resulting in lower volumes in the US • Q2 Revenue o
Slide 16: Mercosur Financial Overview
Mercosur Financial Overview (In € MM) Considerations • H1 Revenue growth of 54.3% or 41.7% at constant FX reaching €256m 256 − Increase of production volumes in both 139 countries, especially in Brazil 166 Revenue 89 − Strong above market growth (new program wins entering SOP phase) − Tailwind of Br
Slide 17: Asia Financial Overview
Asia Financial Overview (In € MM) Considerations • H1 Revenue growth of 1.2% or 0.6% at constant FX reaching €496m 491 496 − Revenue decline In China: FX headwinds, and 244 234 decline of volumes in our Wuhan plant Revenue partially offset by ramp-ups of new programs • Q2 Revenue decline of -4.4% or
Slide 18: Capital Expenditure Overview H1 2017
Capital Expenditure Overview H1 2017 Capex Breakdown Considerations (In € MM) • Investments within budget / according to expectations Total % of revenues 10.2% Total % of revenues 9.7% • Capital expenditure in the second half of the year will be less than H1 421 (3) Intangible Capex ‒ Capital expend
Slide 19: Net Financial Debt and Liquidity Position
Net Financial Debt and Liquidity Position Net Financial Debt Considerations (In € MM) 2016A March 2017 June 2017 • Normal seasonal impact of working capital in H1 plus several one-off factors Interest-bearing loans and borrowings 1,967.6 2,303.8 2,443.0 Financial leasing 33.6 33.0 31.7 ‒ Dividend pa
Slide 20: Agenda
Agenda Key Highlights for H1 2017 Financial Overview Outlook for 2017 © Gestamp 2017 20
Slide 21: Outlook for 2017 Confirmed – On Track to Achieve Mid-term Targets
Outlook for 2017 Confirmed – On Track to Achieve Mid-term Targets Guidance 2017 (1) Revenues Revenue growth of 7-9% Strong H1 2017 Results EBITDA EBITDA growth 9-11% 2017 Guidance Capex Capex to remain c.9% of revenues Confirmed < 2.0x Leverage Net debt / EBITDA H2 with Risks and Opportunities Divid
Slide 22: Closing Remarks
Closing Remarks • Overall H1 2017 was a positive half-year with healthy growth and we continue to outperform the market by more than 5x • Good performance of existing programs, partially offset by launch costs associated with new projects • Added 5 new plants to our footprint • Asia strategy progres
Slide 23: Working for a Safer and Lighter Car Investor relations
Working for a Safer and Lighter Car www.gestamp.com Investor relations Phone: +34 91 275 28 72 Email: investorrelations@gestamp.com Web: www.gestamp.com © Gestamp 2017 © Gestamp 2017