Company Presentation. Managing high value added processes. January 2016

Transcription

1 Company Presentation Managing high value added processes January

2 DISCLAIMER This document has been prepared by CIE Automotive, S.A. ("CIE Automotive"), and is for information purposes only. No reliance may or should be placed for any purposes whatsoever on the information contained in this document or on its completeness, accuracy or fairness. This document and the information contained herein are strictly confidential and are being shown to you solely for your information. The information may not be copied, distributed, reproduced or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient, to any other person (whether within or outside such person's organisation or firm) or published in whole or in part, for any purpose or under any circumstances. This document is an advertisement and not a prospectus for the purposes of applicable measures implementing EU Directive 2003/71/EC (such Directive, together with any applicable implementing measures in the relevant home Member State under such Directive, the "Prospectus Directive") and as such does not constitute or form part of any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of CIE Automotive or any of its affiliates or subsidiaries, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Investors should not subscribe for or purchase any securities referred to in this advertisement except on the basis of the information contained in any prospectus eventually published in accordance with the Prospectus Directive. The information and opinions contained in this document are provided as at the date of the document and are subject to change. This document is not an offer of securities for sale in the United States, Australia, Canada or Japan. The information contained herein does not constitute an offer of securities for sale in the United States, Australia, Canada or Japan. Securities may not be offered or sold in the United States unless they are registered or are exempt from registration. No money, securities or other consideration is being solicited and, if sent in response to the information contained herein, will not be accepted. Copies of this document are not being, and should not be, distributed or sent into the United States. This document does not constitute an offer of securities to the public in the United Kingdom or in any other jurisdiction. The distribution of this document in other jurisdictions may also be restricted by law and persons into whose possession this document comes should inform themselves about and observe any such restrictions. Certain financial and statistical information contained in this document is subject to rounding adjustments. Accordingly, any discrepancies between the totals and the sums of the amounts listed are due to rounding. Certain management financial measures included in this document have not been subject to a financial audit. The information and opinions contained in this document are provided as at the date of the document and are subject to verification, completion and change without notice. Neither CIE Automotive nor any of its parent or subsidiary undertakings, or the subsidiary undertakings of any such parent undertakings, or any of such person's respective directors, officers, employees, agents, affiliates or advisers, undertakes any obligation to amend, correct or update this document or to provide the recipient with access to any additional information that may arise in connection with it. 2

3 Table of contents What is CIE Automotive? Automotive Project Smart Innovation Project Historical Results Update on results: 30 th September 2015 Strategic Thinking CIE in Stock Exchange 3

4 01 What is CIE Automotive? 4

5 01 DEVELOPING TWO PROJECTS Automotive components UNIQUE business model developed SUCCESFULLY since 1996, with a solid TRACK RECORD and an IRR over 20% Smart Innovation Facing DIGITALIZATION in productive activities, by applying knowledge and innovation to achieve EFFICIENCY 5

6 WHAT IS CIE AUTOMOTIVE? Mkt Cap: 1,800 Mio Employees 25,000 Sales 2014: 2,210 Mio EBITDA 2014: 291 Mio Integration, sum and management of processes in a sustainable, profitable and efficient way: Automotive project carried forward in the context of the necessary consolidation of the TIER2 atomized sector. Dominion project developed to challenge the status quo by applying Smart Innovation. Succesful M&A track record: almost 70 M&A transactions since 1996, with people integrated in Europe, Nafta, South America and Asia. Strict acquisition discipline, requiring minimum ROI. 6

7 CIE CULTURE: W H A T M A K E S T H E S E P R O J E C T S U N I Q U E? Our business model: 01 / 02 / Multilocation, our own answer Commercial diversification as a defense tool 03 / Diversity, a flexibility instrument 04 / Investment discipline and return exigence 05 / Decentralized management, for value generation 7

8 Creation INSSEC AN INTEGRATION AND SUM STORY... Inyectametal Udalbide Unitools Norma C.Vilanova Autometal GSB-TBK CIE Celaya Plasfil CIE Plasty Gameko Promoauto CIE Metal CIE Kataforesis SBC Cromado CIE China Jardim Sistemas Joamar CIE Maroc Pemsa Ramos A. Pemsa Saltillo Praga Louny Gave 2008 Apolo Blue Nugar Matic CIE Avtocom Nanging Forg. Century Creation CIE Acquisition Joint venture Divestiture Biofuels Egaña Galfor Orbelan Tarabusi Stuka Mecauto Mecasur Autometal Bahía Merger EGAÑA + AFORASA SBC Injection CIE Desc Pemsa Celaya Autoforjas Durametal Matricon Bionor Divestment GSB Acero Nugar Pemsa Ramos A. Recyde Nakayone Peer - LT Forge Resigras BCGSA NNE 2009 CIE Celaya Pemsa Celaya Autometal D. Avila ACS Group 2011 AUTOM IPO: investment vehicle for emerging markets Mahindra CIE - India - Germany, UK 1st Phase ACS México Mahindra CIE - India - Italy 2nd Phase Dissolution of the JV CiIE Avtocom Empresas tecnológicas información Compiegne Merger INSSEC-CIE Bilcan Near Beroa DOMINION integration Dominion: Soluciones y proyectos tecnológicos Dominion: Negocio Logístico ECI Ibérica Mexel Install 2004 Dominion Chile Business Excision: Dominion Services and Solutions and Dominion TI 2011 Dominion Perú 2013 SAP Mexico 8

9 ...WITH GLOBAL FOOTPRINT NAFTA WEST EUROPE CENTRAL & EAST EUROPE USA Plastic Dominion MEXICO R&D Aluminum Forging Stamping & Tube Forming Machining Plastic Roof Systems Dominion SPAIN Headquarters R&D Aluminum Forging Stamping & Tube Forming Machining Plastic Roof Systems Bionor Dominion FRANCE R&D Machining Roof Systems Dominion GERMANY R&D Forging Dominion DENMARK Dominion ITALY Machining Dominion PORTUGAL R&D Plastic Dominion UK Forging Dominion CZECH REP. Stamping & Tube Forming Machining Plastic Cold Forming LITHUANIA Forging SLOVAKIA Dominion ROMANIA Aluminum Roof Systems RUSSIA Aluminum & Machining POLAND Dominion ASIA & OCEANIA SOUTH AMERICA BRAZIL R&D Forging Stamping & Tube Forming Machining Plastic Casting PANAMA Dominion Dominion PERU Dominion ARGENTINA Dominion CHILE Dominion COLOMBIA Dominion HONDURAS Dominion GUATEMALA Bionor AFRICA MOROCCO Plastic SOUTH AFRICA Dominion CHINA Forging Stamping & Tube Forming Machining Plastic Roof Systems INDIA R&D Forging Stamping Machining Casting Composites Dominion AUSTRALIA Dominion BAHRAIN Dominion INDONESIA Dominion OMAN Dominion QATAR Dominion SAUDI ARABIA Dominion UNITED ARAB EMIRATES Dominion VIETNAM Dominion 9

10 02 Automotive Project 10

11 2.1 CIE CULTURE: W H A T M A K E S A U T O M O T I V E P R O J E C T U N I Q U E? Automotive business model: 01 / 02 / Multilocation, a necessary geographical balance Non usual commercial diversification 03 / Multitechnological portfolio 04 / Investment discipline and return exigence 05 / Decentralized management, for value generation 11

12 2. 1 C I E C U L T U R E : 1/ MULTILOCATION AUTOMOTIVE SALES BY GEOGRAPHICAL AREA (2014 Automotive sales, proforma including a complete year of all Mahindra CIE companies) Healthy geographical balance in sales and results 80 production plants 20,000 employees 7 R&D centers 4 main markets > 6,000 references Nafta 20% Europe 54% Brazil 13% Asia 13% 12

13 2. 1 C I E C U L T U R E : 2/ COMMERCIAL DIVERSIFICATION AUTOMOTIVE SALES BY CLIENT (2014 Automotive sales, proforma including a complete year of all Mahindra CIE companies) OTHERS AUTOLIV BMW BOSCH DAF DELPHI DIESEL HONDA HYUNDAI KS MAHLE LEAR MAGNA MARUTI SUZUKI NTN TKP VALEO ZF - SACHS Limited dependence on single customer, enabling price defense. Limited dependence on single platform and car model. Balanced direct sales between OEM and Tier 1 (circa 50% - 50%). Solvent, assorted and continuous quotations demand, which allows us investment choice. 13

14 P O W E R T R A I N 2. 1 C I E C U L T U R E : 3/ MULTITECHNOLOGICAL PORTFOLIO Offering the integration of a whole range of different technologies in main Automotive geographical markets Enabling the selection of the technology that fulfills better customers needs. Allowing CIE to focus investments on winning technology anytime. And at the same time projecting CIE as a Powertrain products worldwide leader. Process EU NAFTA Brazil India China Forgings Aluminum Castings Machining Stampings Plastics Roof System 14

15 2. 1 C I E C U L T U R E : 3/ MULTITECHNOLOGICAL PORTFOLIO FORGING PRODUCTS Crankshaft CV- Joints Axle Shaft Axle Beam ALUMINUM PRODUCTS Gearbox Housing Clutch Housing Ladder Frame Steering Housings Camshaft Cover CASTING PRODUCTS Turbo Housing Crankshaft Differential Housing Brake Drum MACHINING PRODUCTS Hubs, Outer Rings EPS component Differential Case Flange Strategic products with higher than market average growth and profitability, in which CIE is focusing 15

16 2. 1 C I E C U L T U R E : 3/ MULTITECHNOLOGICAL PORTFOLIO STAMPING & TUBE FORMING PRODUCTS Body in White Steering Columns Brake Booster Seat Structure PLASTIC PRODUCTS Emblems Ashtray Arm Rest Trim Parts ROOF SYSTEM PRODUCTS Glazing Opening Roof Shading MULTI- TECHNOLOGY PRODUCTS Oil Pan Metal Forming, Aluminum, Plastic Diesel & Gasoline Injection Rails Forging and Machining & Tube Forming Strategic products with higher than market average growth and profitability, in which CIE is focusing 16

17 2. 1 C I E C U L T U R E : 3/ MULTITECHNOLOGICAL PORTFOLIO Product portfolio aligned with sector s demand key drivers: Globalization and reduction of the amount of platforms Engine downsizing Mid size vehicles hybridisation Active and passive safety standards in all regions Systems electrifications within the vehicle Comfort increase experience 17

18 2. 1 C I E C U L T U R E : 4/ INVESTMENT DISCIPLINE AND RETURN EXIGENCE STANDARD FLEXIBLE MACHINERY STRICT INVESTMENT DISCIPLINE EBITDA CONVERSION INTO CASH Valid to produce for different customers and platforms, allowing HIGH SATURATION of productive capacity. 4% recurrent investment level that allows maintenance and 2-3% organic growth. Investment analysis discipline, always requiring high returns. Capex 20% ROI. Operating Working Capital 0. M&A: EV/EBITDA 3 in 3 years. Optimization of productive capacity and investment control enables a higher than market average conversion of the EBITDA into Cash. 50% conversion level target. 18

19 2. 1 C I E C U L T U R E : 5/ DECENTRALIZED MANAGEMENT Whole team COMMITMENT GENERATE cash flow Increase INDIRECT PEOPLE PRODUCTIVITY Fast and simple DECISION MAKING Universal, flexible, multitask ENTREPRENEURS LEAN HEADQUARTERS structure OBJECTIVE: VALUE GENERATION Variable and long-term INCENTIVES DECENTRALIZED management structure NETWORK SERVICES support GLOCAL presence and orders 19

20 2.2 ENVIROMENTAL AND SOCIAL GOVERNANCE Taking ownership of the 10 universally accepted principles in the United Nations Global Codepacts strategic policy in the areas of human rights, labour and environment. Reasserting our commitment to provide employees a safe and healthy working environment by adopting necessary measures to prevent accidents and health hazards. Corporate governance driven by principles of ethics and transparency. In collaboration with Deloitte, developing a multi-year ESG Strategic Plan that will support our business Strategic Plan, and that will allow us to define and implement a Solid Risk Management Model, required by our dimension and complexity. Always supported by adequate technological solutions which guarantee maximum levels of efficiency and integrity. 20

21 2.2 ENVIROMENTAL AND SOCIAL GOVERNANCE Focusing firmly on the future and on sustainable development by integrating commitment to environmental preservation in our management model through ambitious certification standards. Balancing industrial activity with minimum environment impact: skilled knowledge on production processes enables us consumption optimization and materials reuse. Our recycling activity: used oils collection and production of biofuel from them. 21

22 03 Smart Innovation Project 22

23 W H A T I S D O M I N I O N? Sum of Services & Solutions for Selected Sectors S A L E S 3 Q : M 2 8 C O U N T R I E S > 1, C L I E N T S M U L T I S E R V I C E S A N D S O L U T I O N S 23

24 W H A T I S D O M I N I O N? Sum of 15 years of experience gaining know-how T E C H N O L O G Y - B A S E D I N T E R N A T I O N A L E X P A N S I O N N E W P R O J E C T S N E W B U S I N E S S L I N E S 1998 Birth of Dominion Strategic decision: commitment to Technology (Smart Innovation project) 2001 Expansion International expansion. Opening of Mexico branch 2006 Projects First big international projects in Health, Environment and Education 2011 Merger Merger INSSEC-CIE. Integration of Dominion Solutions and Services 2014 Integration of Dominion and Beroa 2015 Near and Bilcan Dominion incorporates Digital Solutions (Near) and commercial services (Bilcan) acquisition in Spain acquisitions in Spain acquisition in Spain 2 abroad (Mexico and Germany) acquisitions in Iberia 4 abroad (France, Italy, UK and US) acquisitions abroad (Germany and Australia) acquisition abroad (India) acquisitions abroad (Denmark, Germany, Brazil and France) 3 greenfields (Spain, Mexico and Peru) Dominion has successfully integrated more than 30 businesses and developed JVs with different partners in the past 24

25 Activity fields B U S I N E S S M O D E L > S M A R T I N N O V A T I O N I N S E R V I C E S & S O L U T I O N S M U L T I - S E R V I C E S ( ~ 5 9 % O F S A L E S 3 Q ) S O L U T I O N S & º P R O J E C T S ( ~ 4 1 % O F S A L E S 3 Q ) Improve the internal processes and profitability of our clients by providing efficiently value-added multi-services Offers Solutions & EPC Projects to selected markets, where it has a profound expertise and knowledge TMT (1) Industry Renewables Multi-sectorial activities, including Business Process Outsourcing and Management Use of its own and unique platforms aimed to process optimization Business model based on applying best practices across sectors In-house and third parties technological solutions provider Top specialized and long term partner, with an integrated coverage of the entire EPC process (1) Technology, Media and Telecommunications Smart Innovation Applying data analytics, IT tools and permanent business model re-engineering to improve efficiency and profitability 25

26 B U S I N E S S M O D E L > I N T E G R A T E D S E R V I C E S & S O L U T I O N S Business process Innovation Product innovation Multi-Services Solutions & 360º Projects Objective: Providing efficiency through complete outsourced processes Targeted contribution margin (1) : >10% Higher recurrence Low Capex needed Successful Model managing human and material resources Know-how Tech-background Expertise Cross-selling Objective: Improve clients efficiency through specialized technology Targeted contribution margin (1) : >15% Backlog oriented Low working capital requirements Providing technological vitality A Smart Innovation business model...to develop value added Services & Solutions......focused on selected sectors......that provides efficiency to our clients productive processes C U R R E N T D O M I N I O N S S E L E C T E D S E C T O R S Healthcare (2) Utilities Transport&Logistics (2) Renewables T&T Industry Public Administration (2) (1) Defined as EBITDA before structural and central administrative costs. Contribution margins from January to September 2015: Multi-Services 9.5%; Solutions: 15.2% (2) Included as subsectors of Telecom &Technology (T&T) 26

27 Renew. Solutions & 360º Projects Multi-Services Industry Telecom & Technology Renew. Industry Telecom & Technology B U S I N E S S M O D E L > S E R V I C E S & S O L U T I O N S P O R T F O L I O D E S C R I P T I O N E X A M P L E S ( n o t e x h a u s t i v e ) Design, construction, installation and maintenance of telecommunication networks Sales processes outsourcing mainly in the TMT sector converging and completing its services portfolio Deployment of telecommunication and optical fiber networks for TMT clients in Spain, Brazil, Mexico, etc. Sales process management of commercial network and logistics for Telco clients Comprehensive provider of highly specialized repair & maintenance services for industrial furnaces. Repairing services for minor damages in heat conditions (ceramic welding) for blast furnaces Robot development for efficient industrial maintenance Monitoring and maintenance of renewable energy plants O&M services of wind farms O&M services of solar PV plants EPC projects mainly in the healthcare, civil protection and environment sectors Niche technological projects such as low current networks, energy efficiency, environmental In-house and third parties solutions oriented to monitorize and improve client s processes EPC of several hospitals in Latam Development of technological platforms: Emergency systems to prevent natural disasters Healthcare management platforms Commercialization of test & measurement solutions Mexico Development of new online sales platform for a client in the media sector EPC projects of tall structures (budgeting, design & engineering, material acquisitions, construction & installation, etc.) EPC of cooling plants Urban incinerators EPC of thermosolar towers EPC projects of renewable energy (engineering, civil works, monitoring systems, electrical wiring, commissioning, etc.) EPC of wind farms EPC of solar PV plants 27

28 B U S I N E S S M O D E L > V A L U E C R E A T I O N O R I E N T E D Similar culture as its parent company: CIE Automotive 1 igital Development 2 iversified Company imensions for value creation 3 Financial iscipline 4 ecentralized Management 28

29 B U S I N E S S M O D E L > D I G I T A L D E V E L O P M E N T Strong technological platforms to improve service delivery and efficiency Dominion s flexibility and permanent process innovation has positioned the Company as a trust worthy partner for its customers This expertise allows Dominion to pursue continuous profitability improvement and look for growth opportunities in new segments and countries M U L T I - S E R V I C E S : E F F I C I E N C Y I N N O V A T I O N S O L U T I O N S & º P R O J E C T S : P R O D U C T I N N O V A T I O N Multisource Data Big Data Sensoring Client knowledge o Direct collaboration in the design process Technological knowledge o Technological partners Dominion s mgmt platforms: CCC (1) Monitoring and Digitalization Intelligence thanks to highly qualified technical team o Internal R&D team Resources Tickers / Resources allocation Workforce (installers, salesmen, etc.) Tools, vehicles Financing knowledge Project management know-how o Whole process monitoring o Logistics o Operation & Maintenance Multi-service & Solutions business model that enables (1) CCC: Command, Control and Communication Worldwide presence Quality excellence and workplace safety Flexibility (identical requirements applied to subcontractors) Multifunctional teams 29

30 B U S I N E S S M O D E L > D I V E R S I F I E D C O M P A N Y Diversified business model in four vectors 1 Global footprint in 28 countries 2 with a diversified portfolio Asia & Oceania 18% Solutions ~41% America 27% Europe 55% Services ~59% 3 with a wide range of clients 4 and in several activity fields and sectors Utilities Industry Healthcare Renewables +1,000 clients Telecom Transport &Logistics Note: figures as percentage of sales from January to September 2015 Industry Public Admin. 30

31 B U S I N E S S M O D E L > G E O G R A P H I C A L F O O T P R I N T Presence in 28 countries fostering cross-selling of Dominion s current portfolio Sales 2015YTD (1) Solid presence in 28 countries America 27% Asia & Oceania 18% Europe 55% EUROPE & AFRICA FRANCE SPAIN GERMANY UNITED KINGDOM ITALY DENMARK POLAND SLOVAKIA PORTUGAL SOUTH AFRICA Contribution margin 2015YTD (1)(2) AMERICA USA ARGENTINA Asia & Oceania 25% Europe 37% BRAZIL COLOMBIA HONDURAS ASIA & OCEANIA America 38% MEXICO PANAMA PERU CHILE SAUDI ARABIA BAHRAIN QATAR UNITED ARAB EMIRATES OMAN INDIA INDONESIA VIETNAM AUSTRALIA Dominion is focusing its growth on fast growing markets with higher margins (1) Sales & Contribution margin from January to September 2015 (2) Defined as EBITDA before structural and central administrative costs 31

32 B U S I N E S S M O D E L > R A N G E O F C L I E N T S Diversified portfolio with over 1,000 clients, mostly market leaders in their respective sectors and countries. No dependence on a single/several client (The virtue of being able to say no ) I N D U S T R Y & S E R V I C E S F I N A N C E & I N S U R A N C E T R A N S P O R T A T I O N U T I L I T I E S T E L C O T E C H N O L O G Y 32

33 B U S I N E S S M O D E L > F I N A N C I A L D I S C I P L I N E Investment discipline and demanding performance requirements EBITA Conversion into Cash Tax shield, limited capex requirements, working capital and WIP strict control R&D Investment Discipline Strong R&D analysis and return exigency R&D projects developed under efficiency schemes Strict M&A Discipline Recurrent and thorough analysis of opportunities Strict screening and control on the integration of knowledge and companies to our strategic carrier model Cash generation as the relevant valuation criteria > 60% average conversion level target for the period Minimum 20% ROCE requested M&A: EV/EBITDA <= 3x in 3 years 33

34 B U S I N E S S M O D E L > D E C E N T R A L I Z E D M A N A G E M E N T Operational leverage supported by the current organization model GLOBAL ORGANIZATIONAL MODEL WITH DIRECTORS BY BUSINESS LINES AND COUNTRIES Entrepreneurs with global responsibility up to the contribution margin + NETWORK OPERATING CORPORATE SERVICES Capacity to integrate new contribution margins with current structure Increasing indirect people productivity and accountability Multifunctional workforce Flexibility Lean Structure aimed to provide best service to business areas Central Admin. Expenditure < 1% sales Multidisciplinary management with a common efficiency culture 34

35 S T R A T E G Y & F I N A N C I A L S > P R O F I T A B L E T R A C K R E C O R D Organic growth combined with acquisitions M Q 2015 Sales EBITDA Organic & Inorganic growth without diluting margin % Margin 5.0% 7.9% 8.0% 8.4% 7.6% 7.3% EBITA % Margin 1.5% 5.7% 5.1% 5.2% 4.0% 4.9% NFD/EBITDA ROCE 14.5% 54.3% 37.2% 33.5% 19.5% Strict investments & working capital control and demanding performance requirements EBITDA: Net Operating Income + Depreciation EBITA: Net Operating Income without PPA s depreciation ROCE: EBITA / Net assets (Fixed Assets + Net Working Capital Goodwill not derived from Cash Outflows) Note: Beroa is included in the consolidation perimeter from July 2014 and Dominion Commercial (Bilcan and Near) from January

36 04 Historical Results 36

37 HISTORICAL PERFORMANCE 27% 21% Adjusted Turnover (*) ( Mio) EBITDA (**) ( Mio) (*) 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. 37

38 HISTORICAL PERFORMANCE EBIT (**) ( Mio) Net Income for the year ( Mio) (**) EBIT: Net Operating Income. CAGR (Compound Annual Growth Rate) 38

39 HISTORICAL PERFORMANCE NFD/EBITDA (*) (x) NFD/Equity (*) (x) 4,6x 4,3x 720 2,1x 574 1,9x ,7x 1,7x 242 3,0x 255 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. 39

40 05 Update on results: 30 th September

41 5.1 Group Results 3Q

42 SEPTEMBER 2015 CIE GROUP RESULTS ( Mio) 30/09/2014 % 30/09/2015 Turnover 1, ,969.5 Adjusted Turnover (*) 1, % EBITDA (**) +30% 1, % EBITDA on Adjusted Turnover 13.5% 14.0% EBIT (**) % % EBIT on Adjusted Turnover 8.4% 9.4% Profit for the year % Net Income (**) % (*) 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

43 3Q 2015 CIE GROUP RESULTS ( Mio) 3Q 2014 % 3Q 2015 Turnover Adjusted Turnover (*) +16% EBITDA (**) % % EBITDA on Adjusted Turnover 13.3% 13.9% EBIT (**) % 61.4 % EBIT on Adjusted Turnover 8.3% 9.7% Profit for the year % 37.2 Net Income (**) 20.5 (*) 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. +42%

44 SEPTEMBER 2015 CIE GROUP RESULTS Complete period with new consolidation perimeter of the Group Once again, historical Record in Turnover, EBITDA and Net Income. Turnover increases by 25% comparing same period of previous year, EBITDA by 30% and Net Income reaches 98Mio, 63% higher than September 2014 This growth is due partially to the increase of our consolidation perimeter, in addition to an excellent evolution of margins in Europe and Nafta, where conversion exchange rate evolution has also been favorable Dominion results are consolidated in the high end of the forecast range reducing, even, the effect of its usual seasonality The operative part of profit and loss account is recurrent. In the non operative part there are non recurrent effects that represent an additional Net Income of 4Mio approximately 44

45 5.2 Automotive 45

46 SEPTEMBER 2015 AUTOMOTIVE RESULTS ( Mio) 30/09/2014 % 30/09/2015 Turnover 1, , ,396.3 Adjusted Turnover (*) +14% 1, EBITDA (**) +26% % EBITDA on Adjusted Turnover 14.1% +1.4pp 15.5% EBIT (**) % % EBIT on Adjusted Turnover 8.8% +1.7pp 10.5% (*) Proforma value calculated by deducting turnover of diesel oil used for blending. (**) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income. The behavior of NAFTA market and the excellent level of operative profitability of the Mexican and European plants, have contributed to compensating the Brazilian bad market situation and the lower margins of Mahindra plants integrated in 2014 Highlighting the recover of EBIT margin, having reached double digit level 46

47 3Q 2015 AUTOMOTIVE RESULTS ( Mio) 3Q 2014 % 3Q 2015 Turnover Adjusted Turnover (*) % EBITDA (**) % 78.0 % EBITDA on Adjusted Turnover 14.0% +1.9pp 15.9% EBIT (**) % 54.1 % EBIT on Adjusted Turnover 8.8% +2.2pp 11.0% (*) Proforma value calculated by deducting turnover of diesel oil used for blending. (**) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income. 47

48 SEPTEMBER 2015 AUTOMOTIVE GEOGRAPHICAL DISTRIBUTION Turnover EBITDA (*) 14% 10% 10% 6% 23% 22% Brazil NAFTA Europe 18% 31% Brazil NAFTA Europe Mahindra Europe Mahindra Europe 31% Asia (India/China) 35% Asia (India/China) (*) EBITDA: Net Operating Income + Depreciation. Evolution towards market diversification Solid position in growing markets 48

49 SEPTEMBER 2015 AUTOMOTIVE PROFITABILITY BY REGION 30/09/ /09/2015 Ex-Mahindra Europe EBITDA: 16.7% EBIT: 9.4% EBITDA: 17.1% EBIT: 10.5% Margins, far above market average, continue growing. EBIT margin is in double digit level Mahindra Europe EBITDA: 10.8% EBIT: 6.4% EBITDA: 12.4% EBIT: 8.2% Margins improvement supported specially by the evolution of Metalcastello, integrated in December In its way to achieving CIE Group standards NAFTA EBITDA: 16.7% EBIT: 13.4% EBITDA: 21.8% EBIT: 17.8% Sustainable margins on sales significantly higher than CIE Group average, continue growing Brazil EBITDA: 11.3% EBIT: 6.7% EBITDA: 10.3% EBIT: 5.0% Margins severely penalized by the market s bad situation Asia (India/China) EBITDA: 11.9% EBIT: 6.9% EBITDA: 10.5% EBIT: 6.2% India: Waiting for the new launches of our clients. Margins affected by last integrations. Productive improvements in process, with a lower than expected rhythm China: Facing the challenge of new projects industrialization 49

50 GROWTH (%) Market growth vs CIE organic growth (1) 4.0% 4.3% 3.4% 2.8% 7.7% Market CIE Europe 2.5% Market CIE China Market CIE NAFTA Brazil 6.0% Market -16,0% -19.2% -17.0% CIE % Market India CIE -10.3% Source: Motor vehicle production IHS September 2015 (growth % in units) (1) Organic growth of Turnover including greenfields, same perimeter and same exchange rate Global Production +1.0% CIE +2.1% 50

51 GROWTH (%) Market growth vs CIE organic and perimeter growth (1) 8.8% 7.7% 2.8% Market CIE NAFTA Brazil Market CIE -19.2% -17,0% -17.0% -6,1-16,0% -0,2% % -16,6% 4.0% Market CIE Europe 6.0% Market India 3.4% 2.5% Market CIE 70.3% CIE China Source: Motor vehicle production IHS September 2015 (growth % in units) (1) Organic growth of Turnover including greenfields and growth of perimeter, same exchange rate Global Production +1.0% CIE +10.4% 51

52 EXPECTED GROWTH (Mio Units) 2.5% % % E 2018E Europe E 2018E China 2015E NAFTA 2018E 10.3% % E 2018E Brazil 2015E India 2018E Source: Motor vehicle production IHS September 2015 % Growth: CAGR (Compound Annual Growth Rate) Global Production +3.5% 52

53 5.3 Dominion 53

54 SEPTEMBER 2015 DOMINION RESULTS ( Mio) 30/09/2014 % 30/09/2015 Turnover % EBITDA (*) % % EBITDA s/ cifra negocio % EBITDA on Turnover ajustada 8.8% 268,6 7.3% EBIT (*) % % % EBIT on Turnover 4.9% (*) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income. Already consolidated all business acquired along the past year, Dominion s results up to September anticipate a year end closing in line with a guidance exceeding 500Mio Turnover and EBITDA and EBIT of 8% and 6% respectively 54

55 3Q 2015 DOMINION RESULTS ( Mio) 3Q 2014 % 3Q 2015 Turnover % % EBITDA (*) 10.0 % EBITDA s/ cifra negocio % EBITDA on Turnover 9.7% 7.2% ajustada EBIT (*) % % % EBIT on Turnover 5.2% (*) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income. Clear growth in Sales, EBITDA and EBIT The decrease in margins results from the inclusion, in contrast to 2014, of BILCAN and NEAR businesses, more affected by seasonality in the third quarter 55

56 SEPTEMBER 2015 DOMINION PROFITABILITY BY BUSINESS UNIT SOLUTIONS SERVICES Turnover: 154.4Mio Contribution Margin (*): 15.2% Turnover: 219.1Mio Contribution Margin (*): 9.5% (*) Contribution Margin: EBITDA before structural and central administrative costs, EBITDA: Net Operating Income + Depreciation. 56

57 S E PTEMBER D O M I NION GEO GRAPHICAL A N D B U S I N ESS U N I TS D I STRIBUTION T U R N O V E R 2015 C O N T R I B U T I O N M A R G I N 2015 ( * ) Asia & Oceania 18% SERVICES 6% SOLUTIONS 17% Europe 55% Asia & Oceania 25% SERVICES Europe 6% 37% SOLUTIONS 19% SOLUTIONS 10% SOLUTIONS 12% SERVICES 15% SERVICES 38% SERVICES 14% SERVICES 27% America 27% SOLUTIONS 12% America 38% SOLUTIONS 24% (*) Contribution Margin: EBITDA before structural and central administrative costs, EBITDA: Net Operating Income + Depreciation. 57

58 06 Strategic Thinking

59 STRATEGIC THINKING : R E A F F I R M I N G O U R S T R A T E G Y In the Strategic Plan we analyzed CIE and its environment Automotive industry is undergoing a fast transformation in order to adapt itself to main trends of the Sector Increasing importance of Asian Market Great concentration in few big players Industry drivers: Consumption and emissions reduction / Security / Comfort Digitalization process continues worldwide and this revolution... Is challenging the Status Quo Is affecting society Is definitive and irreversible 59

60 STRATEGIC THINKING : R E A F F I R M I N G O U R S T R A T E G Y In the Strategic Plan we set the following overall goals: SALES evolution ( Mio) 2017 TARGET 3 BIL EBITDA (*) evolution ( Mio) 2017 TARGET 14% (*) EBITDA: Net Operating Income + Depreciation. 60

61 STRATEGIC THINKING : R E A F F I R M I N G O U R S T R A T E G Y In the Strategic Plan we set the following overall goals: 10,0% 25,0% 8,0% 20,0% 6,0% 15,0% 4,0% 10,0% 2,0% 5,0% 0,0% ,0% % EBIT (*) evolution % RONA (*) evolution 2017 TARGET >9% (* ) EBIT: Net Operating Income, RONA: RONA: EBIT / Net assets (Fixed Assets + Net Working Capital Goodwill not associated to cash flows) TARGET 20% 61

62 STRATEGIC THINKING : R E A F F I R M I N G O U R S T R A T E G Y Today these strategic objectives are a reality Strategic Plan aims for the profitable growth of the Group, generating high value for shareholder 62

63 STRATEGIC COMMITMENT : R E A F F I R M I N G O U R S T R A T E G Y 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 ) 63

64 STRATEGIC COMMITMENT : R E A F F I R M I N G O U R S T R A T E G Y SALES 2,700mio In 2015 we will be NFD / EBITDA 2.0x 2015 CAPEX accumulated (*) 700mio very close to our commitment for 2017 EBIT > 8% (*) Maintenance investment 300 mio Greenfields 150mio Inorganic growth 250mio (mainly Mahindra CIE) 64

65 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 65

66 07 CIE in Stock Exchange 66

67 CIE CIE IN STOCK EXCHANGE CIE share price performance vs Ibex % 140% 120% 100% 80% 60% 40% 20% 0% -20% CIE Automotive IBEX 35 Net Income ( Mio) and Earnings Per Share ( ) 60mio mio

68 CIE CIE IN STOCK EXCHANGE 250% CIE share price Performance vs Ibex % 150% 100% 50% 0% -50% IBEX 35 CIE Automotive 98.0Mio Net Income ( Mio) and Earnings per share ( ) Mio /09/ /09/

69 CIE IN STOCK EXCHANGE Market Cap ( Mio) 2016 until January 29th 1, ,993 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) ,148 60,619 Volume (thousand shares) 62,970 Effective ( Mio) , Source: Madrid Stock Exchange 69

70 Thank you 70