2017 Full Year Results Presentation 16 April 2018

Transcription

1 2017 Full Year Results Presentation 16 April 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 2017 highlights March Early repayment of the 60.0m ADE facility with cash on balance sheet April Completion of the sale of the Seating business unit to Lear Corporation for approximately 280 million* April Issuance of 400 million in senior secured notes with a 7-year maturity and yearly fixed coupon of 3.25% May Redemption of existing 400 million 4.75% senior secured notes due 2021 July Creation of the Advisory Board 450 projects in total and 118 in 2017 Grupo Antolín has been present in 80 car models that have come to the market in 2017 Grupo Antolín was present in the 4 best-selling cars of 2017 *On an enterprise value offer and debt-free and cash-free basis 4

5 2017 highlights (cont d) Sales of 5,037m, up 1.1% from 2016* Excluding FX impact, sales increased 3.2% EBITDA of 466m, up 0.9% from 2016, margin of 9.25% Excluding FX impact, EBITDA increased 3.7% EBIT of 291m, down 0.1% from 2016, margin of 5.8%* Year end cash of 334m and 276m of available credit facilities, with year end net leverage ratio of 1.86x and interest coverage ratio of 10.58x *Compared to the 2016 numbers as adjusted for the divestment of the seating business and change in allocation of costs 5

6 ( m) ( m) By business unit +1.1% 4,982 5, ,096 (5.1)% 1, % 318 1, % 1,632 Sales breakdown FX impact on sales totaled 104 million, on like-for-like basis sales increased 3.2% Strong performance across some business units Doors and Lighting driving sales growth 2,145 (4.7)% 2, * 2017 Overheads Doors Lighting Cockpits Others By geography +1.1% 24 4,982 5, % % 1, % 1,738 Overheads impacted by Europe and US Cockpits reflects slowdown in some UK-produced models Strong performance of APAC helped compensate weakness in Europe NAFTA sales impacted by end of production and FX (on a like-for-like FX basis sales increased 4%) China sales up +22.3% vs market production up +1.6% in 2017 ** 2,775 (2.6)% 2, * 2017 Europe NAFTA APAC Mercosur Africa *2016 data excludes Seating Business Unit and is adjusted for the change in allocations of costs **LMC Global Automotive Production. Quarter 4,

7 ( m) ( m) By business unit** Margin (17.7)% 191 (124) (61) By geography 9.27% 9.25% +0.9% +1.8% +9.9% (10.7)% * 2017 Overheads Doors Lighting Cockpits Others +0.9% 462 (14.9)% % (8.2)% % 187 EBITDA breakdown FX impact on EBITDA totaled 10 million, on like-for-like basis EBITDA increased 3.0% EBITDA impacted higher launch costs and FX: Overheads impacted by facilities in Austria, Germany and US Doors affected by ramp ups in USA and Germany Lighting benefitted from project launches in China and France Cockpits reflects cost cutting efforts in response to lower sales in the UK Others reflects results and adjustments for consolidation purposes at non-industrial subsidiaries APAC continues to be a significant contributor to EBITDA growth, with margin remaining above 16.5% A 15 million provision for the estimated amount of the termination benefits and other cost deriving from projected closure of German facility (2) 2016 * 2017 Europe NAFTA APAC Mercosur Africa *2016 data excludes Seating Business Unit and is adjusted for the change in allocations of costs **Group structure costs not allocated by Business Unit 7

8 Free cash flow Excluding Seating Business Unit Cash flow for WC* ( m) (21) Capex ( m) (56) Remarks Total net working capital increased by 56m in 2017 Tooling working capital increased by 81m Operating working capital declined by 25m Out of the 112m corporate income tax, the sale of the Seating business generated 37m in short term tax receivables, that will be received after submitting the 2017 income tax filing Continued capital expenditures in 2018 in all divisions to drive future growth Overheads - Spartanburg, Kecskemet, Ebergassing, Silao Doors - Shelby, Silesia, Hartlip, Barton Lighting - Besançon, Bamberg Cockpits Changshu, Liban, Tianjin Free cash flow % of sales 5.3% % EBITDA Capex Taxes ΔWC* FCF Q (60) (19) (52) 27 Q (71) (20) 8 39 Q (80) (19) (84) (98) Q (122) (54) 72 (3) Total 466 (333) (112) (56) (35) * Does not include changes on other receivables related to taxation Tangible Intangible 8

9 Balanced, long term capital structure Covenants 1.86x Net Debt/Adjusted EBITDA 10.58x EBITDA/Financial expenses Covenant: under 3.50x Covenant: over 4.00x 466m December 2017 EBITDA (*) Term Loan Soft loans Leasings SSN 22 Other loans ST Credit & Interests SSN 24 * 2018 considers drawn credit facilities and accrued interest as of 31 st December 2017 Gross debt 31 December ,227m 800m senior secured notes 378m senior financing 4m soft loans with cost; 21m soft loans with no cost 22m other facilities, of which 8m are credit lines 2m accrued interests Cash available of 334m Net debt 31 December m For covenant purposes, Net debt totalled 867m (excludes soft loans without financial cost, includes cash using 12 month FX average). 200m undrawn syndicated revolving credit facility, and 76m undrawn local credit lines 9

10 2018 Outlook Revenue 5.1 bn EBITDA margin 8.75% Capex 7.0% of revenues Working Capital stable as a percentage of LTM sales Leverage is expected to remain below 2.0x at year end Dividend 30m 10

11 Current trading Grupo Antolín has had significant amount of new product launches in Q1-18, with launch costs impacting EBITDA in January-February YTD 6 new plants in development in 2018YTD with little or no revenues at this stage compared to 2 such plants in 2017YTD In addition, 17 new project launches in 2018YTD vs 12 project launches in 2017YTD The performance is expected and is in line with budget prepared in December LTM February 2017 LTM February 2018 % change Revenue 5,026m 5,012m (0.3)% EBITDA 470m 426m (9.4)% 11

12 Q&A

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