General Shareholders Meeting APRIL 2015

Transcription

1 General Shareholders Meeting APRIL

2 Table of contents Group Results 2014 Strategic commitment Preview of the 1Q 2015 Results 2

3 Group Results

4 2014 CIE GROUP RESULTS ( Mio) 31/12/2013 % 31/12/2014 Turnover 1, ,209.5 Adjusted Turnover (*) 1, % 2,160.3 EBITDA (**) % % EBITDA on adjusted turnover 14.2% 13.5% EBIT (**) % % EBIT on adjusted turnover 8.9% 8.0% Profit for the year Net Income (**) % 81.0 (*) Proforma value calculated by deducting turnover of diesel oil used for blending. (** ) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income, Net Income: Profit attributable to the company s shareholders. Notes: In the aim of assuring the information s transparency and clarity, please review this comparison against CIE s published results at See the Appendix hereto which includes the P&L reconciliation for and a comparison with that included in CIE s financial statements as of The information is different due to the fact that according to accounting principles, specific impacts in the different sectionsof the P&L coming from companies jointly controlled have to be eliminated. 4

5 Crecimiento sostenido y rentable SUSTAINED AND PROFITABLE GROWTH Adjusted Turnover (*) ( Mio) 27% EBITDA (**) 21% ( Mio) 2, ,562 1,673 1, ,429 1,261 1,109 1, (*) From 2006 to 2014, proforma value calculated by deducting turnover of diesel oil used for blending. CAGR (Compound Annual Growth Rate) (**) EBITDA: Net Operating Income + Depreciation. 5

6 Crecimiento sostenido y rentable SUSTAINED AND PROFITABLE GROWTH EBIT (**) (Mio ) % 21% 172 Net Income of the year (Mio ) (**) EBIT: Net Operating Income. CAGR (Compound Annual Growth Rate) 6

7 01.a Balance Sheet 7

8 BALANCE SHEET 31st DECEMBER Million Euros Fixed Assets 1, ,897.7 Net Working Capital (102.1) (154.1) Total Net Assets 1, ,743.6 Equity Net Financial Debt (*) Others (Net) (5.6) Total Equity and Liabilities 1, ,743.6 (*) Net Financial Debt = Debt with banks and other financial institutions Cash and equivalents. 8

9 RETURN ON ASSETS PROGRESSING TOWARDS THE CHALLENGE RONA (1) 20% Maintenance investment (2) stands at around 75% of total depreciation Operating Cash Flow Generation (3) stands at around 50% of EBITDA (1) RONA: EBIT / Net assets (Fixed Assets + Net Working Capital Goodwill not associated to cash flows). (2) Maintenance investment: the one implying a renovation of facilities to face markets natural growth. (3) Operating Cash Flow = EBITDA - Financial expenses Maintenance investment - Tax payments. 9

10 01.b Financial Resources Management 10

11 FINANCIAL POSITION 2014 NET FINANCIAL DEBT PERFORMANCE NFD/EBITDA (*) (x) NFD/Equity (*) (x) 4,6x 4,3x 721 2,1x 574 1,9x ,7x 1,7x 3,0x 2,6x 408 2,6x 2,0x 1,9x ,0x 2,6x 394 2,4x 2,5x 342 1,8x 1,4x 1,1x 1,0x 1,4x 1,4x 1,0x 1,5x 0,7x 0,8x 0,8x (*) Net Financial Debt = NFD = Debt with banks and other financial institutions Cash and equivalents, EBITDA: Net Operating Income + Depreciation. 11

12 FINANCIAL DEBT STRUCTURE Amount Maturity Characteristics Syndicated Loan 450mio 5 years bullet - In Euros - Rates related to NFD/ EBITDA ratio - Partially swapped to fixed rate EIB 100mio 7 years, with 2 years grace - In Euros - Partially swapped to fixed rate Bancomext 100mio 7 years, with 2 years grace - In Dollars - Partially swapped to fixed rate Others 450mio Miscellaneous - Debt composed of bilateral terms (mainly local), credit lines, working capital financing, and so on 1,100mio Gross Financial Debt Cash and Equivalents 400mio 700mio Net Financial Debt Without recourse factoring at amounts 202mio 12

13 GROSS FINANCIAL DEBT MATURITY 60% 54% 50% 40% 37% 30% 31% 23% 20% 17% 17% 10% 10% 13% % Below 1 year Between 1 and 2 years Between 2 and 4 years More than 4 years

14 01.c Corporate Transactions 14

15 2014 MAIN CORPORATE TRANSACTIONS Development of Greenfields: Forjas Celaya Nanjing Crankshaft Samara Celaya 2 Pernambuco Matic 2 Z`BAD Pemsa Transfer 15

16 2014 MAIN CORPORATE TRANSACTIONS Mergers and Aquisitions 100% acquisition of Autometal Broadening Dominion perimeter Closing of Mahindra CIE transaction 16

17 01.d Awards 17

18 AWARDS 2014 Building a reputation: 18

19 02 Strategic commitment

20 STRATEGIC COMMITMENT : REAFFIRMING OUR STRATEGY TURNOVER 1,800mio TURNOVER 3,000mio NFD / EBITDA 2.4x 2013 NFD / EBITDA <1.5x 2017 CAPEX 500mio CAPEX (*) 1,000mio EBIT 9% EBIT > 9% (*)Maintenance investment 500mio Greenfields 250mio Inorganic growth 250mio (mainly Mahindra CIE ) 20 84

21 Key factors of the project for 2015 are: Market share increase additional to European market growth CIE standards achievement in Mahindra Europe Strategic products launch in NAFTA with higher margins Productivity and market share increase in Brazil Improvement rhythm of our operations in Asia Smart Innovation division consolidation 21

22 STRATEGIC COMMITMENT : REAFFIRMING OUR STRATEGY In 2015, we expect to achieve the guidance for net profit initially expected for

23 What next? 23

24 At the end of 2015, we will be ready to define a New Strategic Plan 24

25 Draft of Smart Innovation Project BUSINESS MODEL SMART INNOVATION STRATEGIC PLAN GLOBAL COMPANY DIVERSIFIED FINANCIAL DISCIPLINE DECENTRALIZED MANAGEMENT: VALUE GENERATION MULTISECTORIAL SUSTAINABLE INNOVATION AND EFFICIENCY SOLUTIONS & SERVICES TRANSVERSALITY 700 Mio SALES EBITDA > 10% EBIT > 8% ORGANIC GROWTH NFD < 2 25

26 03.a Preview of the 1Q 2015 CIE AUTOMOTIVE Results 26

27 PREVIEW OF THE 1Q 2015 CIE GROUP RESULTS ( Mio) 1Q 2014 % 1Q 2015 Turnover Adjusted Turnover (*) % EBITDA (**) % 92.0 % EBITDA on adjusted turnover 13.6% 13.9% EBIT (**) % 60.3 % EBIT on adjusted turnover 8.5% 9.1% EBT (**) Net Income (**) % (*) Proforma value calculated by deducting turnover of diesel oil used for blending. (**) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income, EBT: Profit before taxes, Net Income: Profit attributable to the company s shareholders

28 03.b Preview of the 1Q 2015 Automotive Results 28

29 PREVIEW OF THE 1Q 2015 AUTOMOTIVE RESULTS ( Mio) 1Q 2014 % 1Q 2015 Turnover % Adjusted Turnover (*) EBITDA (**) % % EBITDA on adjusted turnover 14.0% 15.3% EBIT (**) % 55.5 % EBIT on adjusted turnover 8.8% 10.1% (*) Proforma value calculated by deducting turnover of diesel oil used for blending. (**) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income. 29

30 1Q 2015 AUTOMOTIVE GEOGRAPHICAL DISTRIBUTION Turnover EBITDA (*) 13% 9% 33% Americas 38% Americas 54% Europe Asia 53% Europe Asia (**) EBITDA: Net Operating Income + Depreciation. 30

31 GROWTH (%) Market growth vs CIE growth with integrations and acquisitions (*) 8.8% 2.2% 13.7% 2.5% Market Europe CIE 8.6% 2.1% Market CIE China Market CIE NAFTA 64.1% Brazil Market CIE -21,3% -11,2% -14,0% -15.0% -11.2% -16,7% 6.0% Market -1,0% India CIE Global Production +2.0% CIE (*)+11.2% Source: Motor vehicle production IHS march 2015 (*) Growth considering same exchange rates 31

32 03.c Preview of the 1Q 2015 Domion Results 32

33 PREVIEW OF THE 1Q 2015 DOMINION RESULTS ( Mio) Turnover 1Q Q EBITDA (*) % EBITDA on turnover 227,2 13,5% 8.8% 6.9% % EBITDA s/ cifra negocio ajustada EBIT (*) % EBIT on turnover 5.5% 4.2% (*) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income. 33

34 1Q 2015DOMINION PROFITABILITY BY BUSINESS UNITS SOLUTIONS SERVICES Turnover: 49.2 mio Contribution Margin (*): 14.5% Turnover: 65.1 mio Contribution Margin (*): 9.2% (*) Contribution Margin: EBITDA before structural and central administrative costs 34

35 1Q2015 DOMINION GEOGRAPHICAL AND BUSINESS UNITS DISTRIBUTION T U R N O V E R C O N T R I B U T I O N M A R G I N ( * ) (*) Contribution Margin: EBITDA before structural and central administrative costs, EBITDA: Net Operating Income + Depreciation. 35

36 03.d CIE in the Stock Exchange 36

37 CIE CIE IN THE STOCK EXCHANGE CIE share price performance vs Ibex % 150% 100% 50% 0% -50% CIE Automotive IBEX mio 19 mio 0.24 Quarterly Net Income ( Mio) and Income Per Share ( ) Q2014 1Q

38 CIE IN THE STOCK EXCHANGE Market Cap* ( Mio) 2015 until 23 April 1,785 1, Number of shares (Mio) % EBITDA Last Price s/ cifra of period negocio (Euros) ajustada Maximum Price of period (Euros) Minimum Price of period (euros) Volume (thousand shares) 62,970 24,162 44,953 13,303 Efective ( Mio) Source: Madrid Stock Exchange 38

39 CIE IN THE STOCK EXCHANGE If provided net profit is doubled, and under same pay-out policy, we expect to duplicate in two years time the amount devoted to dividends. 39

40 Appendix Balance Sheet and P&L

41 BALANCE SHEET 2014 (thousand ) ASSETS Non current Assets Tangible assets Goodwill Other intangible Assets Non-current financial Assets Related Parties Deferred Income Tax and Social Contribution Other non current Assets Current Assets Inventories Trade and other receivables Other current Assets Current tax Assets Other current financial Assets Cash and equivalents Disposal group assets classified as held-for-sale LIABILITIES Shareholders equity Share Capital Own shares 0 0 Share premium Reserves and cumulative exchange differences Interim dividend Cumulative exchange differences Non-controlling interests Deferred Income Liabilities Non current Liabilities Non current provisions Long term borrowings Deferred income Tax and Social Contribution Other non current liabilities Current Liabilities Short term borrowings Trade and other payables Other current financial liabilities Taxes payable Current provisions Other current liabilities Disposal group liabilities classified as held-for-sale

42 P&L 2014 (Thousand ) 2013 (2) Operating revenues Net Revenues Consolidated Turnover (1) Other operating revenues Change in inventories of finished goods and work in progress Operating expenses ( ) ( ) Consumption of raw materials ( ) ( ) Employee benefit expenses ( ) ( ) Depreciation and amortization (89.690) ( ) Other operating income/(expenses) ( ) ( ) Operating profit Financial income Financial expense (80.236) (79.908) Net exchange differences Change in fair value of assets and liabilities taken to income statement (16.369) 176 Share of profit/(loss) of associates (257) (3.029) Profit before taxes Income tax (38.672) Profit on continued activities after taxes Loss on discontinued activities after taxes (9.621) (355) Profit for the year Profit/(Loss) attributable to minority shareholdings (17.761) (17.062) Profit attributable to company shareholders (1) Proforma value calculated by deducting turnover of diesel oil used for blending 42

43 Thank you 43