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 Turin, Italy – 10th February 2023
Slide 2: Forward-Looking Statements
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 revenue, income, earnings (or loss) per
Slide 3: FY 2022 Our Foundational Year One; FY 2023 Transformational Year Two
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 unprecedented supply chain in stakeh
Slide 4: CEO Executive Summary
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 Diluted EPS(1) was at €0.78 per commo
Slide 5: Main Achievements
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 propulsion range • The CROSSWAY Lo
Slide 6: Subsequent Events
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 SHAREHOLDER FOR 150 ELECTRIC BUSES IN IT
Slide 7: 2022 Industry Volume
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, excluding the United Kingdom and Irel
Slide 8: Channel Inventory by Quarter
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 8
Slide 9: Full Year Order Intake and Deliveries
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 Finished products Book-to-Bill Adjust
Slide 10: Market Share in Europe by Quarter
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 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 11: FY 2022 Financials
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.
Slide 12: FY 2022 Financial Summary
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 working capital €14.2bn €690mn improveme
Slide 13: Industrial Net Revenues
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 VOLUME AND NET Buses +17% REVENUES G
Slide 14: Industrial Adjusted EBIT
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 254 184 729 (571) (64) 25 (142) 415 PT
Slide 15: Financial Services
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 Q4 Q4 2021 16 2021 2022 Equity RoA(
Slide 16: Industrial Net Cash, Working Capital and FCF
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. CASH OTHER CHANGES FX & OTHER 31-Dec-2
Slide 17: Debt Maturity Profile and Available Liquidity
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 cash maturities Other current fina
Slide 18: 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 19: 2023E Preliminary Industry Volume Outlook
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 countries where Commercial Vehicles comp
Slide 20: 2023E Preliminary Financial Outlook
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 buy-backs and extraordinary transac
Slide 21: CEO Takeaway Messages
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 businesses are each and individually i
Slide 22: Appendix
Appendix Contains confidential proprietary and trade secrets information of Iveco Group. Any use of this work without express written consent is strictly prohibited.
Slide 23: 2023 Corporate Calendar
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 & 9M 2023 results release and earning
Slide 24: Q4 2022 Total Industry Volume
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 competes, excluding the United King
Slide 25: Industrial Net Revenues Q4 2022
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 +12% NET VOLUME AND NET REVENUES GR
Slide 26: Industrial Adjusted EBIT Q4 2022
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 83 275 (162) (22) 16 (84) 166 PT 27
Slide 27: Industrial Net Cash and Working Capital
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 CHANGES FX & OTHER 30-Sep-2022 EBITDA
Slide 28: Reconciliation Table (1/7)
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 28 - 206 Adjustments: Restructurin
Slide 29: Reconciliation Table (2/7)
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) 376 90 - 466 Adjustments: Restructur
Slide 30: Reconciliation Table (3/7)
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) 91 (91) 159 76 (a) Adjustments imp
Slide 31: Reconciliation Table (4/7)
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 venture restructurings - - (36) - I
Slide 32: Reconciliation Table (5/7)
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 party (debt) (4,156) (2,709) (739)
Slide 33: Reconciliation Table (6/7)
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 1,738 897 Undrawn committed facilities
Slide 34: Reconciliation Table (7/7)
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 flow of Industrial Activities 1,485 7
Slide 35: Book-to-Bill (1/2)
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 (59)% 8,517 11,759 (28)% 11,422 6,390
Slide 36: Book-to-Bill (2/2)
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 (42)% 31,778 46,843 (32)% 30,888 26
Slide 37: Non-IFRS Financial Measures
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 the readers’ ability to assess Iveco
Slide 38: Geographic Information
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: United
Slide 39: IR Contacts
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 Contains confidential proprietary