Iveco Group NV · MIL:IVG
Iveco Group NV — FY2022 Earnings Presentation
39 slides from Iveco Group NV's earnings presentation, Feb 10, 2023
Slide 1: FY 2022 results
FY 2022 results 10th February 2023 FY 2022 results Turin, Italy – 10th February 2023 Iveco Group 1
Slide 2: Forward-looking statements
FY 2022 results 10th February 2023 FORWARD-LOOKING STATEMENTS All statements other than statements of historical fact contained in the slides presented today, including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to reve
Slide 3: FY 2022 Our foundational year one
FY 2022 results 10th February 2023 FY 2022 | OUR FOUNDATIONAL YEAR ONE Establish IVG as a newly listed, Focus on cash management Deliver a first margin step-up Shape and position IVG’s 6 Weather another year independent group with a strong seasonality towards 4-5% EBIT comprising business units of u
Slide 4: CEO Executive Summary
FY 2022 results 10th February 2023 CEO EXECUTIVE SUMMARY • Solid full year performance on the back of better volume and mix and price realisation, more than offsetting energy and production costs • Consolidated Net Revenues were up 13.5% vs FY 2021 and Adjusted EBIT(1) margin was at 3.7% Adjusted Di
Slide 5: Main achievements
FY 2022 results 10th February 2023 MAIN ACHIEVEMENTS Q4 2022 13th October 18th October 3rd – 7th November ‘Sustainable Bus of the Year’ award, Inauguration of the ePowertrain plant LATAM launch of the S-WAY and of the Launch of on-demand mobility technology in Turin, Italy first complete alternative
Slide 6: Subsequent events
FY 2022 results 10th February 2023 SUBSEQUENT EVENTS 2023 10th January 23rd January THE ITALIAN NAVY ORDERS 36 IDV GP JOULE TO ORDER 100 NIKOLA TRE AMPHIBIOUS ARMOURED VEHICLES FCEV 24th January 11th January IDV PARTNERS WITH HORIBA MIRA TO IVECO BUS SIGNS A MAJOR AGREEMENT BECOME THE MAJORITY SHARE
Slide 7: 2022 Industry volume
FY 2022 results 10th February 2023 2022 INDUSTRY VOLUME Units (% change vs FY 2021) Europe (1) South America (2) Rest of the World (3) Worldwide LCV (18)% Flat (19)% (17)% (3.5-7.49t) M&H +5% (2)% +4% +3% (≥ 7.5t) Buses (5)% +14% +4% +4% (1) The 27 EU countries where Commercial Vehicles competes, ex
Slide 8: Channel inventory by quarter
FY 2022 results 10th February 2023 CHANNEL INVENTORY BY QUARTER Units LCV M&H (3.5-7.49t) (≥7.5t) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2019 2020 2021 2022 Company inventory Third party dealer inventory Retails Production
Slide 9: Full year order intake and deliveries
FY 2022 results 10th February 2023 FULL YEAR ORDER INTAKE AND DELIVERIES Units LCV M&H Buses (3.5-7.49t) (≥7.5t) 1.45 1.00 1.53 1.08 1.44 1.05 Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries Orders Deliveries 2021 2022 2021 2022 2021 2022 Incomplete units Fi
Slide 10: Market share in Europe by quarter
FY 2022 results 10th February 2023 MARKET SHARE IN EUROPE BY QUARTER Preliminary registration units (excluding UK and Ireland) LCV M&H (3.5-7.49t) (≥7.5t) 21% 70% 60.0% 59.8% 18% 60% 15% 50% 12% 40% 31.1% 9.3% 9% 30% 15.7% 8.7% 6% 20% 3% 10% 0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 11: Financials
FY 2022 results 10th February 2023 FY 2022 Financials Contains confidential proprietary and trade secrets information of Iveco Group. Any use of this work without express written consent is strictly prohibited. Iveco Group 11
Slide 12: Financial summary
FY 2022 results 10th February 2023 FY 2022 | FINANCIAL SUMMARY Industrial Net Revenues Industrial Free Cash Flow(1) • Up 13.1% vs 2021 to €14.2bn, mainly thanks to higher • At €690mn, +€815mn compared to 2021, primarily volumes and positive price realisation thanks to operating performance and worki
Slide 13: Industrial net revenues
FY 2022 results 10th February 2023 INDUSTRIAL NET REVENUES Split by region and segment, and walk – FY 2022, €mn 13% % Chg. YoY 2% Europe +9% 13% By region South America +59% 72% North America +36% Rest of the World +2% €14.2bn +13% YoY 25% % Chg. YoY 12,520 14,165 Trucks +18% By segment 6% 58% NET V
Slide 14: Industrial adjusted EBIT
FY 2022 results 10th February 2023 INDUSTRIAL ADJUSTED EBIT Walk by segment & driver – FY 2022, €mn 3.0% 2.4% 302 168 729 (584) (60) 10 (122) (17) 424 ADJUSTED EBIT PRODUCTION OTHER AND ADJUSTED EBIT VOLUME AND MIX NET PRICING SG&A R&D FX | OTHER 2021 COST(1) ELIMINATIONS 2022 Segments View C&SV 254
Slide 15: Financial Services
FY 2022 results 10th February 2023 FINANCIAL SERVICES FY & Q4 2022 vs FY & Q4 2021 – €mn Adjusted EBIT Equity and Profitability ratio(1) 800 2.5% 3.0% 2.1% 2.3% 1.7% 1.7% 1.9% 1.8% 1.9% FY 2022 103 750 2.0% FY 2021 74 789 768 700 743 740 752 1.0% 724 725 723 650 0.0% Q4 2022 19 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 16: Industrial net cash, working capital and FCF
FY 2022 results 10th February 2023 INDUSTRIAL NET CASH, WORKING CAPITAL AND FCF Walk and dynamics – FY 2022, €mn Industrial FCF €690mn 1,063 1,203 (150) 505 (160) (775) 67 - (26) 1,727 NET IND. CASH IA ADJUSTED CASH FOR INTEREST Δ IN WORKING Δ IN PROVISIONS PP&E CAPEX(2) AND DIVIDENDS & NET IND. CAS
Slide 17: Debt maturity profile and available liquidity
FY 2022 results 10th February 2023 DEBT MATURITY PROFILE AND AVAILABLE LIQUIDITY €mn Available Liquidity (1) 4,364 Cash & marketable securities Undrawn medium-term committed unsecured credit lines Capital market Bank debt 2,000 Cash and cash equivalents 2,288 Undrawn committed facilities 2,000 Total
Slide 18: CEO Closing Remarks
FY 2022 results 10th February 2023 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. Iveco Group 18
Slide 19: 2023E preliminary industry volume outlook
FY 2022 results 10th February 2023 2023E PRELIMINARY INDUSTRY VOLUME OUTLOOK Units (% change vs. FY 2022) Europe (1) South America (2) Rest of the World (3) Worldwide LCV 5% - 10% Flat Flat +5% (3.5-7.49t) M&H Flat - 5% (5%) Flat Flat (≥ 7.5t) Buses Flat - 5% (10)% Flat - 5% Flat (1) The 27 EU count
Slide 20: 2023E preliminary financial outlook
FY 2022 results 10th February 2023 2023E PRELIMINARY FINANCIAL OUTLOOK IFRS Group Adjusted EBIT(1) €550-590mn Net Revenues +2-3% (including currency translation effects) vs. FY 2022 Industrial Activities Adjusted EBIT(1) €460-500mn SG&A ~ 6.0% over Net Revenues Net Cash(1) ~ €2.0bn (excluding share
Slide 21: CEO takeaway messages
FY 2022 results 10th February 2023 CEO TAKEAWAY MESSAGES • Our preliminary outlooks are based on current visibility, with some challenges in supply chain expected to continue in the near-term. Industry dynamics in 2H 2023 will be impacted by as yet unclear macro developments • Our six industrial bus
Slide 22: Appendix
FY 2022 results 10th February 2023 Appendix Contains confidential proprietary and trade secrets information of Iveco Group. Any use of this work without express written consent is strictly prohibited. Iveco Group 22
Slide 23: 2023 corporate calendar
FY 2022 results 10th February 2023 2023 CORPORATE CALENDAR • Annual General Meeting for the approval of Iveco Group N.V.’s 14th April Financial Statements as of 31st December 2022 • Q1 2023 results release and earnings call 11th May • Q2 & H1 2023 results release and earnings call 2nd August • Q3 &
Slide 24: Q4 2022 total industry volume
FY 2022 results 10th February 2023 Q4 2022 TOTAL INDUSTRY VOLUME Units (% change vs. Q4 2021) Europe (1) South America (2) Rest of the World (3) Worldwide LCV (7)% (21)% (25%) (13)% (3.5-7.49t) M&H +11% (4)% +6% +6% (≥ 7.5t) Buses (10)% +37% +4% +6% (1) The 27 EU countries where Commercial Vehicles
Slide 25: Industrial net revenues Q4 2022
FY 2022 results 10th February 2023 INDUSTRIAL NET REVENUES Split by region and segment, and walk – Q4 2022, €mn 12% 2% % Chg. YoY 11% Europe +30% By region South America +41% North America +26% 75% Rest of the World +26% €4.4bn +31% YoY 22% % Chg. YoY 3,337 4,355 Trucks +41% 8% By segment 58% Buses
Slide 26: Industrial adjusted EBIT Q4 2022
FY 2022 results 10th February 2023 INDUSTRIAL ADJUSTED EBIT Walk by segment & driver – Q4 2022, €mn 4.3% 1.3% 43 117 275 (165) (21) 2 (68) 5 187 ADJUSTED EBIT PRODUCTION OTHER AND ADJUSTED EBIT VOLUME AND MIX NET PRICING SG&A R&D FX | OTHER Q4 2021 COST(1) ELIMINATIONS Q4 2022 Segments View C&SV 60
Slide 27: Industrial net cash and working capital
FY 2022 results 10th February 2023 INDUSTRIAL NET CASH AND WORKING CAPITAL Walk and dynamics – Q4 2022, €mn Industrial FCF €1,199mn 561 384 (51) 996 156 (339) 53 - (33) 1,727 NET IND. CASH IA ADJUSTED CASH FOR INTEREST Δ IN WORKING Δ IN PROVISIONS PP&E CAPEX(2) AND DIVIDENDS & NET IND. CASH OTHER CH
Slide 28: Reconciliation table (1/7)
FY 2022 results 10th February 2023 RECONCILIATION TABLE (1/7) EBIT to Adjusted EBIT by segment of Q4 2022 & 2021 – €mn Unallocated items, Total Commercial and Powertrain eliminations and Industrial Financial Services Eliminations Total Specialty Vehicles Q4 2022 other Activities EBIT 177 60 (59) 178
Slide 29: Reconciliation table (2/7)
FY 2022 results 10th February 2023 RECONCILIATION TABLE (2/7) EBIT to Adjusted EBIT by segment of FY 2022 & 2021 – €mn Unallocated items, Total Commercial and Powertrain eliminations and Industrial Financial Services Eliminations Total Specialty Vehicles FY 2022 other Activities EBIT 373 186 (183) 3
Slide 30: Reconciliation table (3/7)
FY 2022 results 10th February 2023 RECONCILIATION TABLE (3/7) Adjusted net profit (loss) and Adjusted income tax (expense) benefit to Consolidated Profit (Loss) and Income tax (expense) benefit and calculation of Adjusted diluted EPS and Adjusted ETR €mn Q4 2022 Q4 2021 FY 2022 FY 2021 Profit (Loss)
Slide 31: Reconciliation table (4/7)
FY 2022 results 10th February 2023 RECONCILIATION TABLE (4/7) €mn Q4 2022 Q4 2021 FY 2022 FY 2021 Restructuring costs 9 28 15 36 Spin-off costs 12 39 30 46 Russia and Ukraine – impairment of certain assets (9) - 44 - Asset disposal in Australia (52) - (52) - Gains on the final step of Chinese joint
Slide 32: Reconciliation table (5/7)
FY 2022 results 10th February 2023 RECONCILIATION TABLE (5/7) Total (Debt) to Net Cash (Debt) – 31st December 2022 & 2021 Consolidated Industrial Activities Financial Services €mn 31st December 2022 31st December 2021 31st December 2022 31st December 2021 31st December 2022 31st December 2021 Third
Slide 33: Reconciliation table (6/7)
FY 2022 results 10th February 2023 RECONCILIATION TABLE (6/7) Cash and cash equivalents to Available Liquidity – From 31st December 2021 to 31st December 2022 €mn 31st December 2022 30th September 2022 30th June 2022 31st March 2022 31st December 2021 Cash and cash equivalents 2,288 1,491 1,431 1,73
Slide 34: Reconciliation table (7/7)
FY 2022 results 10th February 2023 RECONCILIATION TABLE (7/7) Industrial FCF €mn Q4 2022 Q4 2021 FY 2022 FY 2021 Net cash provided by (used in) Operating Activities 1,428 758 1,407 539 - Cash flows from Operating Activities of Financial Services net of eliminations 57 14 (9) (62) = Operating cash fl
Slide 35: Book-to-bill (1/2)
FY 2022 results 10th February 2023 BOOK-TO-BILL (1/2) Q4 2022 & Q4 2021 Book-to-Bill Order intake Deliveries Q422 Q421 YoY % Q422 Q421 YoY % Q4 22 Q421 YoY % Trucks 0.84 1.42 (41)% 31,521 41,214 (24)% 37,722 28,950 30% LCV 0.87 1.31 (33)% 23,004 29,455 (22)% 26,300 22,560 17% Europe M&H 0.75 1.84 (5
Slide 36: Book-to-bill (2/2)
FY 2022 results 10th February 2023 BOOK-TO-BILL (2/2) FY 2022 & FY 2021 Book-to-Bill Order intake Deliveries FY22 FY21 YoY % FY22 FY21 YoY % FY22 FY21 YoY % Trucks 1.01 1.57 (36)% 119,653 173,540 (31)% 118,333 110,197 7% LCV 1.00 1.51 (33)% 87,875 126,697 (31)% 87,445 83,893 4% Europe M&H 1.03 1.78
Slide 37: Non-IFRS financial measures
FY 2022 results 10th February 2023 NON-IFRS FINANCIAL MEASURES Iveco Group monitors its operations using several non-IFRS financial measures. Iveco Group’s management believes that these non-IFRS financial measures provide useful and relevant information regarding its operating results and enhance t
Slide 38: Geographic information
FY 2022 results 10th February 2023 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 Caribbea
Slide 39: IR contacts
FY 2022 results 10th February 2023 IR contacts Federico Donati, Head of Investor Relations Luis Cordova, Investor Relations Claudia Zolin, Investor Relations Specialist Enza Marsala, Investor Relations Assistant E-mail: investor.relations@ivecogroup.com Website: www.ivecogroup.com/investors/contacts