Slide 1: Presentation of 9M 2017 Results
Presentation of 9M 2017 Results October 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 September 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. T
Slide 3: Agenda
Agenda Key Highlights for Q3 and 9M 2017 Financial Overview Closing Remarks © Gestamp 2017 3
Slide 4: Key Highlights for Q3 and 9M 2017
Key Highlights for Q3 and 9M 2017 • Third quarter results for 2017 have been weak, as anticipated − Project launch issues faced in NAFTA (already announced in September) − Deeper impact of FX headwinds • Despite these challenges, EBITDA in Q3 has been stable in absolute terms, reaching €175m, in lin
Slide 5: Gestamp’s Financial Performance During Q3 2017
Gestamp’s Financial Performance During Q3 2017 (In € MM) Q3 2016 Q3 2017 Total Revenue 1,616 1,874 EBITDA 178 175 EBITDA margin (%) 11.0% 9.3% EBIT 89 79 EBIT margin (%) 5.5% 4.2% Net Income 38 36 Net debt 1,995 2,150 Q3 2017 Revenue and EBITDA increased by 19.5% and 0.8% respectively at constant FX
Slide 6: Gestamp’s Financial Performance During 9M 2017
Gestamp’s Financial Performance During 9M 2017 (In € MM) 9M 2016 9M 2017 Total Revenue 5,357 6,005 EBITDA 585 627 EBITDA margin (%) 10.9% 10.4% EBIT 304 321 EBIT margin (%) 5.7% 5.3% Net Income 129 153 Net debt 1,995 2,150 9M 2017 Revenue and EBITDA increased by 13.6% and 9.2% respectively at consta
Slide 7: Global Auto Market Update
Global Auto Market Update • Global light vehicle production increased by 2.6% during the first 9M 2017 (vs. 9M 2016) with the regions of Gestamp’s production footprint growing at 2.0% − Growth in Gestamp regions mainly driven by strong market production in Mercosur (+21.6%) and Eastern Europe (+7.3%
Slide 8: Automotive Growth 9M 2017 vs. 9M 2016
Automotive Growth 9M 2017 vs. 9M 2016 Gestamp Revenue Growth vs. Market Production Growth in Gestamp’s Footprint Eastern Europe NAFTA 31.6% Western Europe 7.3% 0.2% 11.3% Market Gestamp -2.6% -1.4% Market Gestamp Asia Market Gestamp 7.7% Mercosur 2.9% 39.9% Market Gestamp Total in Our Footprint 21.6
Slide 9: NAFTA Performance Update
NAFTA Performance Update NAFTA September Announcement Operational Performance Status Update Operational problems identified in NAFTA, mainly affecting Regional leadership has been strengthened by introducing two new plants in the US organizational changes both at regional and plant level —On-goi
Slide 10: Financial Performance
Financial Performance EBITDA(1) Net Income Considerations • Stable EBITDA Q3 results in -€3m +€42m -€2m +€24m absolute terms, but weak quarter €627m €38m €36m €153m as anticipated, reaching €175m or €178m €175m a 0.8% growth rate at constant FX €585m €129m • Strong Net Income growth with a 18.3% inc
Slide 11: Agenda
Agenda Key Highlights for Q3 and 9M 2017 Financial Overview Closing Remarks © Gestamp 2017 11
Slide 12: Revenue and EBITDA Summary Overview
Revenue and EBITDA Summary Overview (In € MM) Considerations • Q3 Revenue significantly impacted by: 6.005 − Strong performance in Mercosur and in 1.874 1.616 5.357 Eastern Europe Revenue − High growth of tooling revenues, primarily in Europe and Asia • 9M Revenue: − Very strong growth in Mercosur a
Slide 13: Western Europe Financial Overview
Western Europe Financial Overview (In € MM) Considerations • Q3 Revenue growth of 16.4% or 17.2% at 3.060 constant FX reaching €915m 2.749 786 915 − Increase highly driven by tooling revenue growth vs. Q3 2016 Revenue − Solid growth in France and Iberia and decrease in the UK (FX headwinds) Q3 2016
Slide 14: Eastern Europe Financial Overview
Eastern Europe Financial Overview (In € MM) Considerations • Q3 Revenue growth of 37.3% or 46.2% at constant FX, reaching €215m 699 • Continuing growth in activity particularly in 531 Revenue 215 − Poland (ramp-up of new VW Crafter); 157 − Turkey (FCA and Ford); and − Hungary (Audi) • 9M Revenue gro
Slide 15: NAFTA Financial Overview
NAFTA Financial Overview (In € MM) Considerations • Q3 Revenue growth of -0.4% or 3.9% at constant FX, reaching €326m -0.4% 1.075 1.077 − Change-over of large programs resulting in 327 326 lower volumes in certain models in the US Revenue − In line with expectations • 9M Revenue growth of 0.2% or 0.
Slide 16: Mercosur Financial Overview
Mercosur Financial Overview (In € MM) Considerations • Q3 Revenue growth of 19.1% or 29.2% at constant FX, reaching €137m 392 137 − Increase of production volumes in both 115 280 countries, especially in Brazil Revenue − Strong above-market growth (new program wins entering SOP phase) Q3 2016 Q3 201
Slide 17: Asia Financial Overview
Asia Financial Overview (In € MM) Considerations • Q3 Revenue increase of 21.5% or 26.7% at constant FX, reaching €281m 778 281 722 231 − Higher tooling revenues Revenue − Revenue recovery in China • 9M Revenue growth of 7.7% or 9.0% at constant FX, reaching €778m Q3 2016 Q3 2017 9M 2016 9M 2017 Gro
Slide 18: Capital Expenditure Overview 9M 2017
Capital Expenditure Overview 9M 2017 Capex Breakdown Considerations (In € MM) Capex as % Capex as % 9.6% 10.4% of revenues of revenues • Investments continue to be within budget / according to expectations 724.7 83.6 60 1.1% 626.7 Intangible Capex (3) 59.8 1.0% • More than half of capex has been ded
Slide 19: Net Financial Debt and Liquidity Position
Net Financial Debt and Liquidity Position Net Financial Debt Considerations (In € MM) Sept 2015 Dec 2015 Sept 2016 Dec 2016 Sept 2017 • Q3 typically represents a peak in Interest-bearing loans and 1,839.5 1,730.9 2,174.0 1,967.6 2,486.7 quarterly net debt due to normal borrowings seasonality impacts
Slide 20: Agenda
Agenda Key Highlights for Q3 and 9M 2017 Financial Overview Closing Remarks © Gestamp 2017 20
Slide 21: Closing Remarks
Closing Remarks • 9M 2017 results have been marked by a solid first half of the year and a weaker third quarter, impacted by recent operational launch issues, mainly affecting two new plants in NAFTA, which we announced in September • The group has dedicated all the necessary resources and has taken
Slide 22: Working for a Safer and Lighter Car
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