2018 First Quarter Results Presentation. 29 May 2018

Transcription

1 2018 First Quarter Results Presentation 29 May 2018

2 Disclaimer This information has been prepared solely for the purpose of assisting the recipient (the Recipient ) in starting to conduct its own independent evaluation and analysis of Grupo Antolín-Irausa, S.A. and its subsidiaries (the Group ). No representation or warranty (whether express or implied) is given in respect of any information in this presentation or that this presentation is suitable for the Recipient s purposes. The information herein is not all-inclusive nor does it contain all information that may be desirable or required in order to properly evaluate the Group. Neither the Group nor any of its officers, directors, employees, affiliates or advisors will have any liability with respect to any use of, or reliance upon, any of the information herein. The Recipient acknowledges and agrees that it is responsible for making an independent judgment in relation to information contained herein and for obtaining all necessary financial, legal, accounting, regulatory, tax, investment and other advice that it deems necessary or appropriate. Neither the Group nor any of its officers, directors, employees, affiliates or advisors is responsible as a fiduciary and is not acting as an advisor (as to financial, legal, accounting, regulatory, tax, investment or any other matters) to the Recipient. The Group has no obligation whatsoever to update any of the information or the conclusions contained herein or to correct any inaccuracies which may become apparent subsequent to the date hereof. This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of any entity of the Group, in the United States of America or in any other jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. Any decision to invest in any securities of the Group or otherwise participate in any financing of the Group should not be based on information contained in this presentation. This presentation is only for persons having professional experience in matters relating to investments and must not be acted or relied on by any persons. Solicitations resulting from this presentation will only be responded to if the person concerned is a person having professional experience in matters relating to investments. This presentation does not constitute a recommendation regarding the securities of the Group. This presentation includes statements, estimates, opinions and projections with respect to anticipated future performance of the Group ( forward looking statements ), which reflect various assumptions concerning anticipated results taken from the current business plan of the Group or from public sources which may or may not prove to be correct. These forward looking statements contain the works anticipate, believe, intend, estimate, expect and words of similar meaning. Such forward-looking statements reflect current expectations based on the current business plan and various other assumptions and involve significant risks and uncertainties, and should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The Group is not under any obligation to update or revise such forward-looking statements to reflect new events or circumstances. Certain financial data included in this presentation consists of non-gaap financial measures. These non-gaap financial measures may not be comparable to similarly titled measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with International Financial Reporting Standards. Although the Group believes these non-gaap financial measures provide useful information to users in measuring the financial performance and condition of its business, users are cautioned not to place undue reliance on any non-gaap financial measures and ratios included in this presentation. Market and competitive position data in this presentation has generally been obtained from studies conducted by third-party sources. There are limitations with respect to the availability, accuracy, completeness and comparability of such data. The Group has not independently verified such data and can provide no assurance of its accuracy or completeness. Certain statements in this presentation regarding the market and competitive position data are based on the internal analyses of the Group, which involves certain assumptions and estimates. These internal analyses have not been verified by any independent sources and there can be no assurance that the assumptions or estimates are accurate. 2

3 Participants Jesús Pascual, Chief Executive Officer Cristina Blanco, Chief Financial Officer Carlos Garcia-Mendoza, Capital Markets and IR 3

4 Q Operating Highlights Sales of EUR 1.3bn, down 3.1% from Q and versus -0.7%* industry production growth Excluding FX impact, sales up 2.4% EBITDA of EUR 84m down 42.3% from Q1 2017, margin of 6.5% Excluding FX impact, EBITDA down 38.2% EBIT of EUR 38m down 63.7% from Q1 2017, margin of 2.9% *Source: LMC Global Automotive Production. Quarter 1,

5 Sales Breakdown EURm EURm 1, % 1, % % % % 501 Q1 2017* Q Overheads Doors Lighting Cockpits % % % % 679 Doors and Lighting driving sales growth Headliners impacted by slower sales in US and product launches and plant closure in Central Europe Cockpits reflects slowdown in some UK-produced models FX impact represents c. 74m of decreased sales Strong performance in APAC helped compensate European weakness European sales principally reflect UK sales declines NAFTA sales reflect slower US sales due to project completions offset by stronger Mexico sales China quarterly sales up 18% vs market production down 1.7% in Q1 18** Q1 2017* Q Europe NAFTA APAC Mercosur Africa *Q data excludes Seating Business Unit **Source: LMC Global Automotive Production. Quarter 1,

6 EBITDA Breakdown Margin 10.9% 6.5% EBITDA impacted by expected higher launch costs, resulting from successful commercial efforts following the Magna Interiors acquisition Overheads impacted by facilities in Austria, Hungary and US EURm % -16% -9% -24% Doors affected by UK sales declines, project launches in Czech Republic and Shelby start-up costs Lighting reflects project launches in Central Europe Cockpits reflects Tianjin launch and lower sales in the UK Personnel costs and operating expenses increased as a result of new launches: 68-50% 34 6 New factories in 18 vs. 2 in 17 68% more projects launched in Q1 18 vs. Q1 17 (23) +35% (31) Underperformance in the USA related to launches in Kentucky and sales declines in Michigan Q1 2017* Q Overheads Doors Lighting Cockpits Others** FX impact on EBITDA totaled 6 million *Q 2017 data excludes Seating Business Unit **Group structure costs not allocated by Business Unit 6

7 Overview of Main Launches Facility Location Business Unit Construction Start Construction End / SOP Full Year Production Run rate (# of veh/y) Description of main projects ALABAMA USA Headliners Q Q ,000 o New construction for overheads MB G-Class Greenfield Projects BRATISLAVA Slovakia Headliners Q Q ,000 CHENGDU PRC Doors Q Q ,000 SHELBY USA Doors Q Q ,000 SPARTANBURG ASSEMBLY USA Doors Leased Q ,000 TIANJIN PRC Cockpits Q Q ,000 o New construction for overheads JLR Discovery, JLR Defender Audi Q8 o New construction for door panels Volvo S40/V40 o New construction for door panels and pillars Dodge Ram o New construction for pillars and door panels BMW X5/X7 Volvo S60 o New construction for cockpits,door panels, pillars MB MFA-2 VW A SUV, Audi Q3 Audi Q8 (concept) Mercedes G- Class Expansion Projects BAMBERG Germany Lighting n.a. Q3 & Q ,000 EBERGASSING Austria Headliners n.a. Q2 & Q ,000 HUNGARY Hungary Headliners n.a. Q4 17-Q /19 445,000 INTERIORES SALTILLO Mexico Doors n.a. Q3 18-Q /21 357,000 STRAUBING Germany Cockpits n.a. Q4 17-Q /19 180,000 TURNOV Czech Rep. o Audi A8 o VW Touareg o Audi A6/A7, Porsche Cayenne o Audi Q3/Q4 o Ford Eco Sport o MB A-Class and B-Class o Mercedes Benz MFA-2 o BMW 3-series o Ford EcoSport o Audi Q8 Doors n.a. Q2 & Q ,000 o Audi Q3 and Q6 Volvo V40 7

8 Guidance maintained Q performance is in line with budget Numerous launches are expected to ramp up in H Significant project launches are consolidating Grupo Antolin s position as supplier of choice for vehicle interiors EBITDA Developments FY 2018 guidance remains unchanged Revenue 5.1 bn EBITDA margin 8.75% Capex 7.0% of revenues Working Capital stable at c. 10% of sales Leverage is expected to remain below 2.0x at year end Dividend 30m - Q1 '17 New Factories New Launches USA UK Sales Declines FX Others* Q1 '18 *Others includes provisions, consolidation adjustments, operating expenses and other minor launches, among others 8

9 Q Financial Highlights Cash available of EUR 242m Available revolving credit facilities of EUR 239m LTM EBITDA of EUR 404m and Net Debt to EBITDA of 2.47x 9

10 Balanced, long term capital structure Covenants 2.47x Net Debt/Adjusted EBITDA 9.18x EBITDA/Financial expenses Covenant: under 3.50x Covenant: over 4.00x 404m March 2018 LTM EBITDA Term Loan Soft loans Leasings SSN 22 Other loans ST Credit & Interests SSN m senior secured notes 369m senior financing Gross debt 31 March ,262m 4m soft loans with cost; 20m soft loans with no cost 59m other facilities, of which 45m are credit lines 10m accrued interests Cash available of 242m Net debt 31 March ,020m For covenant purposes, Net debt totalled 998 million (excludes soft loans without financial cost, includes cash using 12 month FX average). 200m undrawn syndicated revolving credit facility, and 39m undrawn local credit lines 10

11 Amortization schedule as of 30th April Term Loan* Soft loans Leasings SSN 22 Other loans ST Credit & Interests SSN 24 SSN 26 *Excludes additional 50 million committed and undrawn funds signed on 17 April

12 Free Cash Flow EURm Working capital Net working capital increased by 97m in the three months ended March 31, 2018: Tooling working capital was stable and should represent relevant cash inflows through Operating working capital increased by 97m, in line with the seasonality of sales. Commitment to maintaining year-end working capital in line with WC as % of LTM Sales* 7.7% December 2017 ** March 2018** historic averages of c. 10% of sales. Remaining FCF elements for the quarter ending 31 March 2018: EURm EBITDA 84m Capex 54m Cash taxes 8m December 2016** March 2017 ** Inventories Trade Receivables Trade Payables *Note: Average LTM Working Capital excludes Tooling **Note: Figures do not include Seating Business Unit 12

13 Q&A

14 /