Mid-Term Financial Report. 30 th September

Transcription

1 Mid-Term Financial Report 30 th September

2 Disclaimer This document includes or may include statements or estimates about intentions, expectations or forecasts of CIE AUTOMOTIVE or of its management body on the present date, regarding several issues such as the evolution of its business and the company s financial results. These statements correspond with our intentions, opinions and future expectations, thus there are certain risks, uncertainties and other relevant factors that could lead to different results or decisions from those intended, expected or estimated. These factors include, among others, (1) the market situation, macro-economic factors, political, governmental and legal regulations, (2) changes in local and international securities markets, exchange rates and interest rates, (3) competition, (4) technological developments, (5) changes in the financial situation, credit capacity, and solvency of customers, debtors and counterparties. These factors could affect and could mean that the information and the intentions expressed, forecast or predicted in this document and in other past or future reports, including those submitted to the regulatory and supervisory authorities (including the Spanish Securities Market Authority Comisión Nacional del Mercado de Valores - CNMV) do not coincide with reality. CIE AUTOMOTIVE does not undertake to publicly review the information contained herein or in any other document, whether the facts upon which such estimations have been based change, or whether such changes would alter the strategies or intentions contained herein. This representation must be taken into consideration by all those persons or entities that may have to take decisions or give opinions related to securities issued by CIE AUTOMOTIVE and, in particular, by analysts considering this document. Please be advised that this document may contain information that has not been audited or summarised, thus public information registered by CIE AUTOMOTIVE with the security market regulatory authorities should be consulted, in particular, prospectuses and the periodical information registered with the CNMV. 2

3 CIE Automotive Results 30 th September

4 CIE Automotive Group Results 30 th September 2012 (million Euros) 30/09/11 30/09/12 Turnover 1.398, ,0 Adjusted Turnover* 1.277, ,0 EBITDA 182,4 170,6-8% % EBITDA on Adjusted Turnover 14,3% 14,5% EBIT 118,3 105,0 EBT 88,4 73,7 Net Income 50,3 48,3-4% Notes: (*) 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 from continuous activities; Net Income: Profit attributable to the company s shareholders In line with our expectations for improvement in the second part of the year, Net Income for 3Q2012 has improved 4.8% comparing 3Q2011 By 30th September 2012 year to date: Improvement in margins is compensating partially negative effects from sales drop It is forecasted that by the end of the year positive effects in management improvements will compensate totally negative effects from sales drop 4

5 Quarterly results evolution 2010/2011/2012 Sales (1) EBITDA 442,6 441,4 420,1 389,9 376,3 342,4 393,2 369,0 336,3 374,3 396,1 14,4% 14,4% 14,6% 14,4% 14,3% 14,3% 13,8% 14,1% 13,1% 13,7% 63,3 63,6 12,3% 60,5 57,0 55,4 52,0 53,1 51,7 49,1 46,1 46,1 1T 2T 3T 4T T 2T 3T 4T Million Euros (1) Adjusted Turnover % EBITDA/Sales Growing margins, good situation continue in each market and each CIE plant Competitiveness improvements allows to face future development from a solid business situation 5

6 CIE Automotive Group Results 30 th September 2011 (million Euros) TOTAL CIE AUTOMETAL (Millones de euros) 31 Marzo 2009 AUTO REST OF THE WORLD 31 Marzo BIO 2010 DOMINION Turnover 1.248,0 472,8 520,1 161,2 93,9 Adjusted Turnover* 1.179,0 472,8 520,1 92,1 93,9 EBITDA 170,6 85,0 77,6 1,9 6,0 % EBITDA on Adjusted Turnover 14,5% 18,0% 14,9% 2,1% 6,4% EBIT 105,0 67,6 37,8 (3,5) 3,1 Notes: (*) 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 fromcontinuous activities AutometalEBITDA margin 18.0% close to the average levels of 2011, and new improvement of Automotive rest of the world EBITDA margin with a 15% Automotive, with an EBITDA of mill and an EBITDA margin of 16.4 %, represents a balanced geographical distribution 6

7 Automotive: Excellent level of return on all assets 7

8 Automotive Results 30 th September Marzo (million Euros) 30/09/11 30/09/12 (Millones de euros) 2009 Turnover 1.068,7 992,9 EBITDA 175,9 162,6 % EBITDA on Turnover 16,5% 16,4% EBIT 116,9 105,4 % EBIT on Turnover 10,9% 10,6% -7% -8% Note: EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income Despite sales drop, EBITDA margin maintains in line with previous year, rising to 16.4% in 2012 Result improvement in Europe with management and productivity improvement, meaning margin increases. Also good operating performance and margins in Mexico 8

9 Automotive Results 30 th September 2012 Autometal (million Euros) 30/09/11 30/09/12 Turnover 523,8 472,8 EBITDA 104,1 85,0 % EBITDA 19,9% 18,0% EBIT 87,0 68,0 % EBIT 16,6% 14,3% In Brazil, In the second part of the year has begun an improvement in the private car s market, while truck s market resumption has been delayed In Mexico, a significant maket increase consolidates with improvements in profitability In both regions profitability maintenance is forecasted for last part of the year Automotive rest of the world (million Euros) 30/09/11 30/09/12 Turnover 544,9 520,1 EBITDA 71,8 77,6 % EBITDA 13,2% 14,9% EBIT 30,0 37,8 % EBIT 5,5% 7,3% Continuing EBIT 2012 vs increase: +26%, 1.8pp superior to September 2011 Strong improvement due to management and productivity High level of operating profitability for European plants Lower Market s volume in the second part of the year 9

10 Vehicle production evolution 2011/2012 Millones de vehículos/mes 2,00 1,50 1,00 0,50 0,00 MONTHLY VEHICLE PRODUCTION BY GEOGRAPHIC AREA 2012 vs 2011 YTD Production Europe -5% Brazil -3% NAFTA +20% 2012 vs2011 YTD Sales Europe -5% Brazil +6% NAFTA +14% Source: CSM September 2012 Europe Brazil NAFTA Mix CIE (Year 2011 figures in doted lines) Brazil: In 3Q2012 the market has recovered comparing previous months, but still below 3Q2011. It is expected a higher 4Q2012 than 4Q2011 NAFTA: Strong market recovery in USA that will be soft in the 4Q Europe: Production decreases in 3Q2012. There is no clear market visibility for the year 10

11 Biofuels and Dominion 11

12 Biofuels Results 30 th September Marzo 31 Marzo (million euros) 30/09/11 30/09/12 (Millones de euros) Turnover 243,5 161,2 Adjusted Turnover* 122,1 92,1 EBITDA 1,5 1,9 EBIT (1,5) (3,5) Notes: (*) Proforma value calculated by deducting turnover of diesel oil used for blending EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income Bionor Spain business unit maintains its EBITDA above 2011 levels Focus continues on recycled oils segment Sector Regulatory uncertainty, with new changes in current regulatory reform and Biofuels production, is forcing a continuous review of the strategy to adjust it to regulations 12

13 Dominion Results 30 th September Marzo 31 Marzo (million Euros) 30/09/ /09/ Turnover 86,6 93,9 EBITDA 5,0 6,0 % EBITDA on Turnover 5,8% 6,4% EBIT 3,0 3,1 EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income Sales improvement of 8.5% supported by growth in Latin America that allows offsetting the worse performance of the market in Spain EBITDA increases 20.8% vs. 3Q2011 maintaining a good level of performance Latin America now accounts for 79% of the total Contribution Margin of the Group Development strategy in emerging markets, taking advantage of the synergies with CIE 13

14 Future prospects 14

15 Automotive market: growth in period Annual vehicle production Europe (Mill. Units) NAFTA (Mill. Units) Brazil (Mill. Units) Asia (Mill. Units) World (Mill. Units) 19,8 20, ,1 3,9 35,1 45,5 74,8 90, E Weaker market closing is expected for 2012 with medium term recovery E Growth in 2012 and medium term recovery at smoother rates E Growth perspective continues for 2012 and also for the future E Growth perspective continues for 2012 and also for the future E 2011 record production of aprox. 75 mill. units Growth year after year Source: Vehicle Production, CSM September 2012 Growth % : CAGR (Compound Annual Growth Rate) Perspectives for year 2013 show a low degree of visibility, with low degree of visibility in Europe due to debt crisis evolution In the following years: softer growing ramp is expected in mature markets. Growth continues for emerging markets but to smoother rates 15

16 period during which CIE intends to continue its expansion and growth strategy CIE s strategic objectives for the following years Increase presence in emerging markets (Brazil, Mexico, Russia, India, China) Make use of Group s balance sheet improvement for expansion Automotive components Continue with the historical growth of the company, growing business and results at a double digit rate Consolidate and stabilize EBIT margin at double digit Maintain target of NFD/EBITDA ~2x Focus R&D on reducing vehicles weight and lowering emissions Rest of Businesses Both businesses development in emerging markets by exploiting automotive management synergies with not relevant committed investments 16

17 period during which CIE intends to continue its expansion and growth strategy Strategic tasks already done Adquisition of a company called Century Plastics in Detroit USA specialized in plastic technology that allow to increase our presence in Nafta market Automotive components Adquisition of a company called Nanging Forging in China specialized in forging technology, with an expected big growth in forging crankshafts New greenfield company creation, Forjas de Celaya in México, specialized in forging crankshafts production destined to Nafta Market Rest of Businesses Dominion expansion from Sao Paolo to the rest of Brazil and beginning activities in Peru 17

18 To our shareholders The Group s strong financial and cash position, due to the global generation and obtaining of resources, which has allowed to reboot operations to increase perimeter This lack of financial gap, along with a significant improvement of operations profitability, allow us to keep thinking that the goal of doubling 2010 result in 2013 will be accomplished Furthermore, this situation allows to project the maintenance of the current dividend policy 18