Company Presentation now and now because.pdf
- 1. Managing high value-added processes January 2024 COMPANY PRESENTATION
- 2. 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 organization 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. • CIE Automotive’s management uses recurrently and in a consistent way during business management certain Alternative Performance Measures, APM which include terms about results, balance sheet and cash flow. CIE Automotive understands that those APMs are helpful to explain its activity evolution, so they are presented, defined and reconciled with financial statements in this presentation’s Appendix.
- 3. 3 WHAT IS CIE AUTOMOTIVE? 1.1 CIE Automotive at a glance 1.2 History 1.3 Globalization 1.4 Business performance 1.5 Shareholder’s retribution OUR BUSINESS MODEL 2.1 Geographical balance 2.2 Commercial diversification 2.3 Multi-technology 2.4 Investment discipline 2.5 Decentralized management 2.6 ESG integration UPDATE ON RESULTS 3.1 June 2023 Results 3.2 Balance sheet 3.3 2025 Goals CIE AUTOMOTIVE IN STOCK EXCHANGE 1 4 2 3 INDEX
- 4. 1. What is CIE Automotive? CIE Automotive at a glance History Globalization Business performance Shareholder’s retribution 1.1 1.2 1.3 1.4 1.5
- 5. 5 2022 Highlights 1.1. CIE AUTOMOTIVE AT A GLANCE 300.1 €m 7.8% over sales 1,270 €m 1,98x EBITDA NET RESULT NFD ≈25,000 EMPLOYEES 3,838.6 €m 633.4 €m 16.5% over sales TURNOVER EBITDA 404 €m >12% over sales EBIT OPERATING CASH FLOW ≈66.1% over EBITDA ≈3,100 €m MARKET CAP currently
- 6. 6 Successfully integrating companies 1.2. HISTORY 1999 2010 2013 CIE Metal CZ CIE Jardim Sistemas CIE India 1st Phase 2000 CIE Unitools CIE Norma CIE Autometal Diadema 2003 CIE Plasty CIE Gameko CIE Taubaté 2004 CIE Autometal SBC 2005 2008 CIE Pemsa Saltillo CIE Praga Louny 2015 CIE Autometal Pernambuco I CIE Rus CIE Forjas de Celaya 2016 CIE Amaya Bill Forge 2017 CIE Newcor 2018 CIE Nugar Puebla CIE Autometal Minas CIE India 2nd Phase 2014 2012 CIE Nanjing Forg. CIE USA 2020 CIE Somaschini CIE Plásticos México 2001 CIE Mecauto CIE Mecasur CIE Vilanova 1998 CIE Galfor CIE Orbelan 1997 CIE Inyectametal CIE Udalbide 2006 CIE Pemsa Celaya CIE Autoforjas CIE Durametal CIE Matricon CIE Automotive Parts Shanghai 2009 CIE Matic CIE Dias D'Ávila ACS CIE Maroc 2007 CIE Nugar CIE Recyde CIE Nakayone CIE LT Forge CIE Compiègne 2019 CIE Aluminium Casting CIE Mapremex ACS Wuhan CIE Golde GREENFIELD ACQUISITION JOINT VENTURE 1996 CIE Egaña Creation INSSEC 2002 CIE Legazpi CIE Celaya CIE Plasfil CIE Autometal Camaçari Merger CORP. INDUSTRIAL EGAÑA +AFORASA = CIE 2011 CIE Stratis Merger INSSEC-CIE 2021 CIE India Kahne II CIE Hosur 2022 Golde Pune 2023 CIE Autometal Pernambuco II CIE Autometal Salto CIE Salgglas
- 7. 7 Expanding our geographical footprint 1.3. GLOBALIZATION R&D Forging Metal Stamping & Tube Forming Aluminium Die Casting Plastic Machining Iron Casting R&D Aluminium Die Casting Forging Metal Stamping & Tube Forming Plastic Machining Roof Systems R&D Plastic Machining Roof Systems USA MEXICO BRAZIL RUSSIA Aluminium Die Casting CHINA R&D Forging Metal Stamping & Tube Forming Machining Roof Systems INDIA R&D Aluminium Die Casting Forging Metal Stamping & Tube Forming Machining Roof Systems Iron Casting Composites SPAIN Headquarters R&D Aluminium Die Casting Forging Metal Stamping & Tube Forming Plastic Machining Roof Systems PORTUGAL R&D Plastic MOROCCO Plastic ITALY Machining FRANCE R&D Machining Roof Systems GERMANY R&D Roof Systems Metal Stamping & Tube Forming Machining Plastic Cold Forging Forging Aluminium Die Casting Roof Systems R&D Machining Roof Systems LITHUANIA CZECH REPUBLIC SLOVAKIA ROMANIA Roof Systems HUNGARY
- 8. 8 Sustained and profitable growth 1.4. BUSINESS PERFORMANCE 481 570 670 782 893 1.057 1.158 969 1.322 1.396 1.308 1.479 1.811 2.051 2.221 2.843 3.029 3.461 2.883 3.269 3.839 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 figures exclude the turnover, EBITDA and EBIT generated by the German forging companies, presented as discontinued operations. Turnover (€m) CAGR 2002-2022: 11% Net Income (€m) CAGR 2002-2022: 26% EBIT (€m) CAGR 2002-2022: 18% EBITDA (€m) CAGR 2002-2022: 13% 16 34 42 59 73 90 117 59 112 152 132 142 172 215 249 339 399 427 283 404 447 3% 6% 6% 8% 8% 9% 10% 6% 8% 11% 10% 10% 9% 10% 11% 12% 13% 12% 10% 12% 12% 0% 2% 4% 6% 8% 10% 12% 14% 0 100 200 300 400 500 600 700 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 53 80 91 116 131 156 192 120 191 222 207 223 276 320 358 471 529 594 431 575 633 11% 14% 14% 15% 15% 15% 17% 12% 14% 16% 16% 15% 15% 16% 16% 17% 17% 17% 15% 18% 17% -1% 1% 3% 5% 7% 9% 11% 13% 15% 17% 19% 0 100 200 300 400 500 600 700 800 900 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 3 13 20 35 42 51 54 11 41 60 59 56 78 118 151 202 243 287 185 268 300 1% 2% 3% 4% 5% 5% 5% 1% 3% 4% 5% 4% 4% 6% 7% 7% 8% 8% 6% 8% 8% -2% 0% 2% 4% 6% 8% -40 10 60 110 160 210 260 310 360 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
- 9. 9 Remunerating our shareholders 1.5. SHAREHOLDER’S RETRIBUTION Earnings per share (€) & EPS yield (%) CAGR 2016-2022: 12% Dividend per share (€) & Dividend yield (%) CAGR 2016-2022: 12% COVID-19 +33% (1) EPS 2018 is calculated with the normalized Automotive net income (Dominion shares were paid as dividend in kind as of July 2018). +13% +19% +37% +11% +19% • Pay-out policy: 33%. • …plus a dividend in kind in 2018 valued in >400€ or >3€/share. • …plus a 5% capital reduction in 2020 and a new 2.2% capital reduction forecasted for 1S2023. +47% +44% +14% +14% 1,3 1,7 1,9 2,2 1,5 2,2 2,5 6,8% 6,9% 8,8% 10,6% 6,7% 9,1% 10,3% -0,2% 1,8% 3,8% 5,8% 7,8% 9,8% 11,8% 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 2016 2017 2018 2019 2020 2021 2022 (1) COVID-19 0,4 0,6 0,6 0,7 0,5 0,7 0,8 2,2% 2,3% 2,9% 3,5% 2,3% 3,0% 3,4% -0,4% 1,6% 3,6% -0,1 0,1 0,3 0,5 0,7 0,9 1,1 1,3 1,5 2016 2017 2018 2019 2020 2021 2022
- 10. 2. Our business model 2.1 Geographical balance 2.2 Commercial diversification 2.3. Multi-technology 2.4. Investment discipline 2.5. Decentralized management 2.6. ESG integration
- 11. 11 2. OUR BUSINESS MODEL INVESTMENT DISCIPLINE DECENTRALIZED MANAGEMENT COMMERCIAL DIVERSIFICATION ESG INTEGRATION GEOGRAPHICAL BALANCE MULTI- TECHNOLOGY 1 2 3 4 5 6
- 12. 12 EUROPE 34% INDIA 16% CHINA 12% NORTH AMERICA 30% BRAZIL 8% Turnover and EBITDA by geography 2022 2.1. GEOGRAPHICAL BALANCE • Healthy geographical balance in sales and results. • Defensive tool against different cycle momentum in the diverse geographies. • Represents a key competitive advantage when servicing global platforms. 3,838.6* MILLION EUROS TOTAL TURNOVER BY GEOGRAPHY 2022 633.4* MILLION EUROS TOTAL EBITDA BY GEOGRAPHY 2022 EUROPE 28% INDIA 16% CHINA 13% NORTH AMERICA 34% BRAZIL 9% 2022 * Includes 3 German forging plants classified as discontinued operations, with 230m€ sales in 2022.
- 13. 13 Main customers 2022 2.2. COMMERCIAL DIVERSIFICATION •Limited dependence on single customer, platform or car model, enabling price defense. •Both direct sales to OEMs and Tier 1s (c. 70% - 30%). •Solvent quotation requests, which allows us investment choice by profitability return criteria.
- 14. 14 TECHNOLOGY BY GEOGRAPHY 2022 TOTAL Machining Metal Stamp. & Tube Forming Forging Plastic Aluminium Die Casting Castings Roof Systems Europe 43 17 5 6** 5 5 - 5 North America 20 7 5 2 3 1 - 2 Brazil 12 1 4 1 4 1 1 - Asia (India & China) 37 3 8 9 1 4 2 10 TOTAL 112 28 22 18 13 11 3 17 Turnover by technology 2022 2.3. MULTI-TECHNOLOGY • One-stop shop for customers, offering the whole range of the existing technologies to produce components. • Enabling the selection of the technology that better fulfils changing customers needs. • Allowing CIE to focus investments on winning technologies anytime. 3,838.6* MILLION EUROS TOTAL TURNOVER BY TECHNOLOGY 2022 18% FORGING 11% ALUMINIUM DIE CASTING 5% IRON CASTING 10% PLASTIC 17% ROOF SYSTEMS 21% METAL STAMPING AND TUBE FORMING 18% MACHINING * Does not consider the 3 German forging companies classified as discontinued operations, with 230m€ sales in 2022. ** Includes 3 German forging plants classified as discontinued operations.
- 15. 15 POWERTRAIN AGNOSTIC COMPONENTS** 77% ICE COMPONENTS 19% xEV COMPONENTS 4% 3,838.6* MILLION EUROS TOTAL TURNOVER BY VEHICLE AREA 2022 Turnover by vehicle area 2022 2.3. MULTI-TECHNOLOGY: ELECTRIFICATION • Portfolio’s electrification is a natural process of our customers’ demand, which CIE can address thanks to our globalization, multi- technology and financial strength. • >80% of sales can be assembled in xEV. • 19% ICE includes segments and regions of slow electrification pace. • In 2022 ≈50% of the new orders were for xEV. *Does not consider the German forging companies classified as discontinued operations, with 230m€ sales in 2022. ** Includes 32% Interior & Exterior trim. 23% Drivetrain and 22% Structural, Chassis & Suspension.
- 16. 16 Electrification: impact 2.3. MULTI-TECHNOLOGY: ELECTRIFICATION BEV Share 2030(1) Applying these electrification shares to our ICE portfolio <10% of sales would be at risk in 2030 Europe North America India Brazil China 1% (1) Based on IHS forecast as of February 2023. 65% 60% 40% 10% ≈20% of sales are renewed annually. The % of sales at risk in 2030 is a very affordable effort for our commercial team.
- 17. 17 . . Electrification: opportunities in the transition 2.3. MULTI-TECHNOLOGY: ELECTRIFICATION The electrification pace is completely different by geographies, which allows a more gradual evolution of the product portfolio to global players like CIE. • COMMERCIAL STRATEGY • Working in xEV for incumbent OEMs, while having already started working for the new EV players. • PRODUCT STRATEGY • Already positioned in areas like battery, motor and electronics, just waiting for higher volumes to come.
- 18. 18 2.3. MULTI-TECHNOLOGY: PRODUCTS ICE Powertrain & Gearbox Vehicle Electrification E-REDUCER HOUSING ALUMINIUM MACHINING E-MOTOR SHAFT MACHINING ROTOR CROWN E-MOTOR STAMPING MACHINING POWER ELECTRONIC COVER STAMPING BATTERY BOX ALUMINIUM / STEEL / STAMPING BATTERY BOX PLASTIC-COMPOSITE BATTERY BOX ALUMINIUM MACHINING COVER ASSY E-MOTOR STAMPING ASSEMBLY & PAINTING AC CHARGER COVER STAMPING POWER ELECTRONIC HOUSING ALUMINIUM MACHINING INPUT SHAFT MACHINING GROUND & BELOID GEAR MACHINING OIL DISTRIBUTOR SLEEVE MACHINING PARKING LOCK GEAR MACHINING POWER ELECTRONIC COVER COMPOSITE BATTERY COVER STAMPING STRUCTURAL PARTS FOR BATTERY STAMPING BATTERY CHARGER BEV STAMPING ASSEMBLY & PAINTING BATTERY BOX FORGING & MACHINING MAGNET FOR EV CHARGER MAGNET FERRIT BAR MAGNET TUBE ASSEMBLIES TUBE FORMING MACHINING PISTONS ALUMINIUM MACHINING BRACKET STAMPING WELDING CAMSHAFT BEARINGS HOUSING ALUMINIUM MACHINING AIR TANKS PLASTIC CRANKSHAFTS FORGING CRANKSHAFT CAPS MACHINING CAMSHAFT BEARINGS ALUMINIUM DIESEL COMMON RAIL FORGING / STEEL / STAINLESS STEEL / MACHINING CRANKSHAFT IRON CASTING CVT PISTONS STAMPING TURBO HOUSING IRON CASTING MACHINING GEARBOX HOUSING ALUMINIUM MACHINING LADDER FRAME ALUMINIUM MACHINING VALVE GUIDES MACHINING CAMSHAFT COVER ALUMINIUM MACHINING GASOLINE COMMON RAIL TUBE FORMING FORGING MACHINING BRACKETS STAMPING WELDING DOUBLE CLUTCH COMPONENT STAMPING WELDING BODY PUMP FORGING MAGNET FOR EV CHARGER MAGNET FERRIT BAR MAGNET ELECTRIC MOTOR CRADLE STAMPING / WELDING & ASSEMBLY MOTOR HOUSING ALU & MACHINING INVERTER CASINGS WITH INTEGRATED COOLING ALU & MACHINING POWER ELECTRONIC CASINGS ALU & MACHINING
- 19. 19 2.3. MULTI-TECHNOLOGY: PRODUCTS Transmission & Brakes* Chassis & Steering & Structural Parts* (*) Valid for vehicles with any type of propulsion. (*) (*) PLANETARY CARRIER MACHINING WELDING DOUBLE CLUTCH COMPONENTS STAMPING FLANGES FORGING MACHINING DIFFERENTIAL HOUSING IRON CASTING BRAKE BOOSTER STAMPING CV-JOINTS FORGING PINS FOR DIFFERENTIAL CASE MACHINING DIFFERENTIAL COMPONENTS FORGING MACHINING I-BOOSTER STAMPING AXLE SHAFT FORGING CLUTCH & TRANSMISSION HOUSING ALUMINIUM/MACHINING AXLE SHAFT FORGING MACHINING OIL PAN STAMPING MOTOR HOUSING STAMPING DIFFERENTIAL CASE MACHINING ASSEMBLIES PLANETARY CARRIER FORGING IRON CASTING LASER WELDING SPROCKET FORGING MACHINING TRANSMISSION YOKES FORGING MACHINING EPS MAIN HOUSING ALUMINIUM CONTROL ARM STAMPING / WELDING SPINDLES FORGING MACHINING STRUCTURAL PARTS STAMPING WELDING HUBS, OUTER RINGS FORGING/MACHINING AXLE ARM IRON CASTING REAR AXLE METAL FORMING / WELDING STEERING COLUMN TUBE TUBE FORMING STEERING NUT MACHINING STEERING HOUSING ALUMINIUM MACHINING STEERING COLUMN BRAKET ALUMINIUM STRUCTURAL PARTS STAMPING WELDING AIRBAG FRAME METAL FORMING / PLASTIC OVERMOULDING STRUCTURAL PARTS STAMPING WELDING EPS COMPONENTS MACHINING CALIPER BRACKETS GDC ALUMINIUM MACHINING REAR AXLE SUPPORT STAMPING WELDING PAINTING FRONT/REAR KNUCKLES STEEL/FORGING/ MACHINING / ALUMINIUM CONTROL ARMS STEEL/ALUMINIUM/ FORGING MACHINING SUSPENSION BRACKET STAMPING WELDING DIFFERENTIAL CROWNS & REDUCTOR FIXED GEARS FORGING MACHINING * Powertrain agnostic components; hence, valid for vehicles with any type of propulsion.
- 20. 20 2.3. MULTI-TECHNOLOGY: PRODUCTS Interior & Exterior Trim* PANORAMA WINDSCREEN SUNSHADE MANUAL FLUSH WINDOW TOP LOADED SPOILER 2 PANELS BOTTOM LOADED FIXED MODULE LUGGAGE-COVER FLUSH BACKLITE TOP LOADED SPOILER FLUSH DOOR PANEL MANUAL ROOF SUNSHADE LATERAL & REAR SUNSHADES ELECTRICAL ROOF SUNSHADE BOTTOM LOADED INNER SLIDING 1 PANEL TOP LOADED OUTER SLIDING 1 PANEL TOP LOADED FIXED MODULE ELECTRICAL FLUSH WINDOW BOTTOM LOADED INNER SLIDING 2 PANELS BOTTOM LOADED OUTER SLIDING 2 PANELS TOP LOADED OUTER SLIDING FLUSH SLIDING DOOR PANEL Roof Systems* (*) Valid for vehicles with any type of propulsion. (*) (*) EMBLEMS PLASTIC / PAINTING / CROME ARM REST, CUP HOLDER, PILARS, GRAB HANDLES, SPEAKER GRILLS… PLASTIC CONNECTORS & JUNCTION BOXES ELECTRONICS GLOVE COMPARTMENT PLASTIC / PAINTING REAR WINDOW PACKAGE TRAY PLASTIC COMPRESSION MOLDING TRIM PARTS PLASTIC CENTRAL CONSOLE PLASTIC SEAT PARTS STAMPING IN MOULD DECORATION PLASTIC FRONT COVERS PLASTIC WHEEL COVERS, REAR VIEW MIRRORS, DOOR HANDLES… PLASTIC /PAINTING / CROME ASHTRAY PLASTIC CROSSBEAMS TUBE FORMING STORAGE COMPARTMENT PLASTIC LOAD FLOOR COMPOSITE SPRAY MOLDING THERMOFORMING SEAT COVERS PLASTIC SEAT COMPONENT PLASTIC SEAT PARTS TUBE FORMING & WELDING * Powertrain agnostic components; hence, valid for vehicles with any type of propulsion.
- 21. 21 Industrials with financial mindset 2.4. INVESTMENT DISCIPLINE ≈3% recurrent capex level that implies maintenance and capacity renovation. Investments ≥20% ROI. Operational excellence, together with capex control and finance/tax strategies, enables a high conversion of the EBITDA into Operating Cash. Standard flexible machinery valid to produce for different customers and platforms, enabling high saturation of productive capacity. >60% conversion level target. CAPEX STRICT INVESTMENT DISCIPLINE EBITDA CONVERSION INTO OPERATING CASH Operating Working Capital (excluding factoring) ≈0.
- 22. 22 Focused on value generation 2.5. DECENTRALIZED MANAGEMENT • FAST DECISION MAKING • INDIRECT PEOPLE PRODUCTIVITY • TEAM COMMITMENT • CASH FOCUS • UNIVERSAL ENTREPRENEURS • DECENTRALIZED MANAGEMENT STRUCTURE • LEAN HEADQUARTERS • NETWORK SERVICES SUPPORT • VARIABLE AND LONG- TERM INCENTIVES • LOCAL ORDERS OBJECTIVE: VALUE GENERATION
- 23. 23 Organization chart 2.5. DECENTRALIZED MANAGEMENT
- 24. 24 Our ESG track record 2.6. ESG INTEGRATION Signatory of the United Nations Global Compact Contribution to the United Nations Sustainable Development Goals Member of Forética ESG integrated in our business model SERNAUTO Responsible Business Commission Global roll-out Public release of CIE ESG Strategic Plan 2025 2025 ESG targets ESG Dashboard with strategic KPIs 2015 2016 2019 2020 2021 Release of the CIE Automotive’s new mid and long-term environmental commitment 2022
- 25. 25 Taking into account all stakeholders 2.6. ESG INTEGRATION MEDIA SUSTAINABILITY STANDARDS ANALYSTS AND INVESTORS PUBLIC AUTHORITIES CUSTOMERS SOCIETY AUTOMOTIVE SECTOR BUSINESS PARTNERS SUPPLIERS SHAREHOLDERS ESG AGENCIES FINANCIERS
- 26. 26 ESG Commitment 2.6. ESG INTEGRATION In November 2021, CIE Automotive released its ESG Strategic Plan 2025, which was made public for the first time: •Benchmarked against the best practices of our peers. •Complying with increasing non-financial legislation, especially critical in the context of the Automotive sector. •Prioritising the needs of the different stakeholders. •Proving CIE Automotive’s firm commitment to sustainability. CIE CULTURE ETHICAL COMMITMENT ECO-EFFICIENCY ACTIVE LISTENING STRATEGIC LINES:
- 27. 27 • Training on Code of Conduct SUPPLY CHAIN • Countries purchasing with ESG criteria • Suppliers audited with ESG criteria INVESTOR RELATIONS •Feedback to key ESG analysts FINANCE •Complying sustainable financing requirements M&A •Integrations with the ESG Manual implemented COMMERCIAL COMPLIANCE ESG Commitment 2.6. ESG INTEGRATION ALL 2022 ESG TARGETS HAVE BEEN MET >95% KPI: 100% TARGET • Self-assessed plants in NQC >80% • Platforms with customers for self-assessment in ESG • Commercial staff trained in ESG 75% 100% 100% 100% 25% 80% 100% We remain committed to the 79 ESG KPIs defined in Strategic Plan 2025 for the different business areas, with specific targets and deadlines.
- 28. 28 ESG Commitment - New environmental commitment 2.6. ESG INTEGRATION - We want to be pro-active in our inexcusable commitment against the climate emergency. We secure the short term with the current KPIs till 2025. Project Supply Chain Race to Zero SBTi alignment Midterm: 1.5ºC Carbon neutrality 2050 - We recognise the importance of halving global emissions before 2030 at global level and achieving net-zero before 2050. - We are committed to meeting the science-based 1.5°C and net-zero emissions targets.
- 29. 29 Ethical commitment: Engaged to Governance 2.6. ESG INTEGRATION • Based on principles of transparency and legality. • Integrating Governance, Risk management and Compliance. • Whistle-blower channel for all stakeholders. • Global training on ESG: Code of Conduct, criminal liability and anti-corruption. • The Board of Directors is responsible for monitoring the company’s risk profile. • The ESG Committee is responsible for the oversight of due compliance of the Code of Conduct. GOVERNANCE POLICES Internal Control over Financial Reporting Control and risk management Corporate governance Director remuneration Corporate tax Shareholder and markets reporting and communications Shareholder remuneration Selection and diversity of the Board of Directors Procurement policy and relations with the account auditor Compliance and Criminal Risk Prevention Policy ESG POLICES ESG Purchasing Supplier ESG commitment Human rights Anti-corruption and fraud Social action CORPORATE POLICIES
- 30. 30 Eco-efficiency: Engaged to Environment 2.6. ESG INTEGRATION In 2022, 82% of waste generated was sent to recycling, while 16% was sent to disposal. 100% of energy consumed in Spain, Portugal and Lithuania comes from renewable sources. In 2022, self-generated energy reached 8,980,857kWh (0,57% of total consumption, mostly from photovoltaic parks). On our way to decarbonization: New targets for material circularity. CORPORATE ENVIRONMENTAL FOOTPRINT as a multi-criteria measure of our company’s environmental behavior, from a life cycle perspective (cradle to gate scope), useful to prioritize those actions reducing the most relevant environmental impacts
- 31. 31 Eco-efficiency: Engaged to Environment 2.6. ESG INTEGRATION To become climate neutral by 2050 To protect human life, animals and biosphere To create leaders in clean products and technologies ALLIGNED WITH THE 2030 AGENDA AND THE EUROPEAN GREEN DEAL ANNUAL REDUCTION: • ENERGY: 2% • EMMISSIONS: 2% • WASTE: 5% (*) Environmental European targets and legislation development as worldwide benchmark. To ensure fair and inclusive transition 2025 CIE GLOBAL ENVIRONMENTAL TARGETS EU TARGETS (*)
- 32. 32 Active listening: Engaged to our Sector 2.6. ESG INTEGRATION Components for light weighting vehicles, and for electric, hybrid and/or hydrogen vehicles. Digitalization, Smart Factory and Eco- efficiency. Comfort products aligned with new mobility trends (autonomous driving, car sharing, etc.). DECARBONIZATION INDUSTRY 4.0: NEW MOBILITY CONCEPT SAFETY & SECURITY •Worldwide collaboration in Research programs. •≈2% of annual revenues invested in R&D: 10 R&D centers worldwide with a multi-technological and multi-material approach. •Project launched for integrating ecodesign and circularity criteria in the development and industrialization process. SUSTAINABLE R&D Prioritizing safety features. R&D roadmap focused on:
- 33. 33 CIE Culture: Engaged to our People 2.6. ESG INTEGRATION DECENTRALISED • Decentralised decision making process oriented to flexibility. EMPOWERING • Ulysses programme relaunched and expanded: • Hours of training provided: DIVERSE Gender indicators: Corporate Diversity Committee created in 2021 and working on D&I diagnostics (50% of diversity assessments in all geographies have been done by end of 2022; goal 100% in 2025). % female employees % female new hires % female in group’s management committee % female directors on the company’s board % gender pay gap SAFE • ≈90% of our plants with certificate ISO 45001 (100% target on 2025 following the Strategic Plan). Injury frequency Injury severity Training in H&S Absenteeism 6.8 0.13 2022 8.7 0.15 2021 18% 22% 40% 38% 7% 2021 • Always combining results with social protection. • 90% local managers and 90% of managers received ESG training. • Harassment Prevention & Treatment Plan (16 managed complaints). 18% 19% 40% 36% 5% 2022 • Improvement of Health & Safety KPIs: • 196,222 Health and safety training hours in 2022. Nº of students Nº of countries 12 – 80% 3 – 100% 2022 10 – 67% 2 – 67% 2021 15 3 2025 TARGET 196,222 4% 159,160 5% 525.360 625.862 171.446 186.470 2021 2022 Men Women
- 34. 34 CIE Culture: Engaged to our People 2.6. ESG INTEGRATION CIE CULTURE: ATTRACTING AND RETAINING KEY PEOPLE Programs for the youth in every area: • Dual programs. • International training. • Internship & collaboration with numerous schools. Age as a key diversity issue to ensure a healthy composition of our headcount and proper succession plans in place. ATTRACTING TALENT Close to 90% of CIE Automotive’s employees get more than 30 hours of training yearly. TRAINING More than 90% of the employees that are members of CIE Automotive management committees are locals. CIE relies on its people capabilities no matter what their background is. PROFESSIONAL DEVELOPMENT
- 35. 35 Active listening: Engaged to our Supply Chain 2.6. ESG INTEGRATION • Risk management & mitigation. • ESG criteria integrated into SC procedures. • GLOCAL: global targets; local implementation. • 18 out of 79 ESG KPIs are linked to SC goals. • >90% suppliers are local. • Increasing ESG specific audits. • Rewarding the best-in-class ESG suppliers. • Open communication channels: 360º surveys. • Boost communication of EGS criteria in collaborations. • SC ESG criteria as a key element in the supplier selection score. • Commitment to increase nomination to suppliers with an ESG DNA. • End-to-end management via a single tool: Supplier Portal. • Guarantee SC legal worldwide engagement. • Severity and likelihood approach. SC MANAGEMENT MODEL SUPPLIER SELECTION VALUE GENERATION SC MEASURABLE ENGAMENTS
- 36. 36 Active listening: Engaged to our Financiers 2.6. ESG INTEGRATION Maximising the volume of ESG-linked financial operations. Continuous ESG performance monitoring by a third party, VigeoEiris. Transparency. Commitment and alignment with CIE Automotive’s Strategic Plan 2025: Towards 50% of our GFD and 70% of NFD linked to ESG criteria by 2025. 2020 2021 2022 GFD 28% 44% 62% NFD 40% 69% 100%
- 37. 37 Several independent ESG agencies evaluate CIE´s ESG performance, most of them unsolicited by the company, using our public information. The reports show very positive trend in the rating. PERCENTILE POSITION WITHIN THE SECTOR ESG Agencies 2.6. ESG INTEGRATION 2020 2022 98 2021 99 2021 35 2020 78 2021 91 2022 97 2021 41 2020 78 2020 81 2022 94 2021 96 2020 73 2022 82 2021 80 2022 47 2020 39 2022 34
- 38. 3. UPDATE ON RESULTS 3.1 June 2023 Results 3.2 Balance sheet 3.3 2025 Goals
- 39. 39 3.1. SEPTEMBER 2023 RESULTS CIE AUTOMOTIVE 2023 - HIGHLIGHTS (*) Adjusted NFD and EBITDA data considering 50% of the Chinese JV SAMAP TURNOVER 2,974.5 €m +4.1% vs September 2022 CONSOLIDATED GROWTH 1 EBITDA 536.7 €m 18.0% EBITDA MARGIN vs 17.1% September 2022 STRENGTHENING OF OPERATING MARGINS 2 NET INCOME 253.5 €m +7.6% vs September 2022 CONTINUOUS AND SUSTAINED GROWTH 3 OPERATING CASH 339.5 €m 65.5% OPERATING CASH/EBITDA HIGH LEVEL OF CASH GENERATION 4 1,488 €m LIQUIDITY RESERVE STRONG LIQUIDITY POSITION WITH STRICT CASH MANAGEMENT 5 NFD/EBITDA(*) 1.73x vs 2.13x September 2022 CONTINUOUS DEBT RATIOS IMPROVEMENT 6 SHARE PRICE 25.64€ +20.5% vs September 2022 TARGET PRICE CONSENSUS 32.07€ 7
- 40. 40 Sales evolution 2023 vs 2022 3.1. SEPTEMBER 2023 RESULTS Source: Motor vehicles production IHS October 2023 ( months 2023) (growth % in units). Global market and Indian market weighted with CIE segment mix in India (PV, 2W, MHCV, tractor). Note: In 2023 the companies Golde Bengaluru India PvT Ltd. and Golde Pune Automotive India Private Ltd. have been transferred, as well as Billforge de México S de RL de CV, Somaschini International Inc, Somaschini North America LLC and Somaschini Realty LLC to India and North America respectively. This reclassification has not had significant impacts. Constant Exchange rate MARKET 8.5% CIE +7.0% 1.7% 4.3% INDIA 11.3% 14.8% NORTH AMERICA 13.9% 9.3% EUROPE 2.9% 16.2% BRAZIL 4.8% -24.8% CHINA Raw material pass-through has had a negative impact of 2 to 3 points in our growth, which means that we are gaining global market share, concentrating a higher outperformance in the growing markets.
- 41. 41 3.1. SEPTEMBER 2023 RESULTS Strong growth in all lines of results, despite the negative impact of foreign exchange currency impact and the high increase in interest rates. The solid improvement in operating margins stands out, in a highly inflationary market. EBIT >13% €m 30/09/2022 30/09/2023 Turnover 2,857.2 2,974.5 EBITDA 487.4 536.7 % EBITDA / turnover 17.1% 18.0% EBIT 348.1 397.1 % EBIT / turnover 12.2% 13.3% EBT 331.6 343.3 Net income 235.5 253.5 Note: In order to provide greater transparency and clarity to the information, it is compared with the automotive data published as comparable in the consolidated financial statements published by CIE as of 30/09/2022. The information is different from that published by CIE in 2022 because, according to accounting standards, the specific impacts on the different lines of the income statement of those businesses discontinued in 2022 must be eliminated. See annex with the reconciliation at the end of this document. . +10.1% +7.6% +4.1%
- 42. 42 2023 Geographies Contribution 3.1. SEPTEMBER 2023 RESULTS TURNOVER EBITDA Data in million euro (€m) 36.2% EUROPE 31.5% N. AMERICA 34.7% EUROPE 32.4% N. AMERICA INDIA 15.3% INDIA 14.5% 1,075.3 937.5 456.2 186.2 173.9 78.0 BRAZIL 9.2% 274.8 CHINA 7.8% 230.7 BRAZIL 10.5% 56.2 CHINA 7.9% 42.4
- 43. 43 2023 Geographies Profitability 3.1. SEPTEMBER 2023 RESULTS NORTH AMERICA EBITDA 18.6% EBIT 14.2% BRAZIL EBITDA 20.5% EBIT 17.0% EUROPE EBITDA 17.3% EBIT 11.6% CHINA EBITDA 18.4% EBIT 13.5% INDIA EBITDA 17.1% EBIT 13.4% • All geographies contribute to CIE’s success by reaching a minimum double-digit EBIT margin * The reclassification of the companies Golde Bengaluru India PvT Ltd. and Golde Pune Automotive India Private Ltd., as well as Billforge de Mexico S de RL de CV, Somaschini International Inc, Somaschini North America LLC and Somaschini Realty LLC to India and North America respectively, has not had significant impact on margins
- 44. 44 Balance sheet evolution 3.2. BALANCE SHEET €m 31/12/2022 30/09/2023 Fixed assets 3,560.8 3,599.6 Net Working Capital (501.0) (384.2) TOTAL NET ASSETS 3,059.8 3,215.4 Equity 1,504.6 1,717.0 Net Financial Debt 1,289.8 1,217.4 Others (net) 265.4 281.0 TOTAL NET LIABILITIES 3,059.8 3,215.4 Non-recourse factoring 324.5 €m 344.3 €m
- 45. 45 Cash Flow September 2023 3.2. BALANCE SHEET €m EBITDA 536.7 Financial Expenses (56.3) Maintenance Capex (63.8) Tax Payments (58.4) IFRS 16 Leases (1) (18.7) OPERATING CASH FLOW 339.5 % EBITDA(2) (1) Payment of rental fees registered in EBITDA according to the application of IFRS 16 standard. (2) Operating Cash Flow on the value of EBITDA corrected with the effect of the IFRS 16 standard. (3) Acquisition of the Brazilian company Iber-Oleff Brasil Ltda. (*) Adjusted NFD and EBITDA data considering 50% of the Chinese JV SAMAP. Growing Capex (83.5) Net Working Capital Variation (66.8) Other movements 0.2 OPERATING FINANCIAL CASH FLOW 189.4 Business combinations (3) (10.8) Payment of dividends and own shares transactions (106.2) FINANCIAL CASH FLOW 72.4 65.5% Debt ratios improvement and operating financial cash flow generation with very high shareholder remuneration €m 30/09/2022 31/12/2022 30/09/2023 NFD 1,393.8 1,289.8 1,217.4 Adjusted NFD(*) 1,372.2 1,270.0 1,196.7 NFD/EBITDA (*) 1.98X 1.73X 2.13X
- 46. 46 Financial position 3.2. BALANCE SHEET 1,594.9 1,394.9 1,289.8 1,217.4 2020 2021 2022 9M 2023 STRENGHTHENING OUR FINANCIAL POSITION NFD/EBITDA (*) 3.59X 2.37X 1.98X 1.73X NFD/Equity 1.60 1.02 0.86 0.71 NFD GFD at fixed interest rate (**) 35% 51% 53% (*) Adjusted NFD and EBITDA data considering 50% of the Chinese JV SAMAP (**) Gross financial debt (GFD) at fixed interest rate -200.0 €m -105.1 €m -72.4 €m
- 47. 47 Strategic Lines 3.3. 2025 GOALS ELECTRIFICATION INDUSTRY 4.0 INTERNATIONALIZATION COMFORT ETHICAL COMMITMENT ACTIVE LISTENING ECO-EFFICIENCY CIE CULTURE KEY OPERATIONAL LINES KEY ESGLINES
- 48. 48 Operational commitments 2025 3.3. 2025 GOALS * The above guidance was determined assuming the existing consolidation scope and revenues at constant exchange rates and without pass-through. Revenue growth ≈20 percentage points above market growth over the five-year period An EBITDA margin exceeding 19% in 2025 Sustained generation of cash from operations equivalent to ≈65% of EBITDA. ≈€500 million starting in 2025. Annual income Tax payment of ≈2% of revenue CAPEX of ≈€1 billion over the five- year period, ≈5% of revenue per year OPERATIONAL COMMITMENTS 2025 1 2 3 4 5
- 49. 49 3.3. 2025 GOALS Operational commitments 2025 and progress in 2021/2022 Due to the positive evolution of the Plan and to our good perspectives for the coming years, we can confirm the maintenance of all our 2025 commitments. Furthermore, we confirm that thanks to our cash generation capacity, we could invest up to €1,500m without exceeding 2x NFD/EBITDA at the end of the Plan. This investment may be used for any type of corporate operation (M&A, buy-back, purchase of minority stakes...); whichever maximizes the generation of value at any given time.
- 50. 50 ESG Targets – Progress in the first two years of the plan 3.3. 2025 GOALS • Training on Code of Conduct SUPPLY CHAIN • Countries purchasing with ESG criteria • Suppliers audited with ESG criteria INVESTOR RELATIONS •Feedback to key ESG analysts FINANCE •Complying sustainable financing requirements M&A •Integrations with the ESG Manual implemented COMMERCIAL COMPLIANCE ALL 2021-2022 ESG TARGETS HAVE BEEN MET >95% KPI: 100% TARGET • Self-assessed plants in NQC >80% • Platforms with customers for self-assessment in ESG • Commercial staff trained in ESG 75% 100% 100% 100% 25% 80% 100%
- 51. 51 ESG Commitment - New 2025 environmental commitment 3.3. 2025 GOALS We secure the short term with the current KPIs till 2025 Project Supply Chain Race to Zero SBTi alignment Limit global warming to 1.5ºC Carbon neutrality in 2050
- 52. 4. CIE Automotive in Stock Exchange
- 53. 53 Share Price Performance CIE Automotive 4. CIE IN STOCK EXCHANGE During 2020, the pandemic severely impacted CIE Automotive's stock. 2021 added to pandemic bottlenecks, shortages and inflation in the supply chain (semiconductors, raw materials, freights, energy, labor force...). In 2022 the complex environment increased (invasion of Ukraine, China's "Zero Covid" policy, soaring inflation, rising interest rates…), which has led to an indiscriminate stock market correction in the sector. Despite this adverse context, CIE Automotive delivered excellent results quarter after quarter, once again confirming its resilience and consolidating its position on the podium of the industry's most profitable companies with the best future, which we understand is far from being reflected in its share price. After the exit from the Ibex 35 (June 2022) and in this first quarter of 2023, the share has had a better evolution and we expect this positive trend to continue, correcting and better aligning the fundamental value of the company and its share price. (1) STOXX Europe 600 Automobiles & Parts includes: OEMS: BMW ST, Mercedes Benz Group, Ferrari NV, Stellantis, Porsche, Renault & Volkswagen. SUPPLIERS: Forvia, Michelin, Continental, Nokian, Plastic Omnium, Rheinmetall, Schaeffler, Valeo. IBEX 35 CIE Automotive STOXX Europe 600 Automobiles & Parts (1) -60% -40% -20% 0% 20% 40% 60%
- 54. 54 Analysts recommendations 4. CIE AUTOMOTIVE IN STOCK EXCHANGE Company Analyst Recommendation Price Update Alantra Equities Álvaro Lenze Hold €30.90 10/2023 Bankinter Esther Gutiérrez Buy €32.60 10/2023 Bestinver Securities Enrique Yáguez Buy €32.70 05/2023 Caixabank BPI Bruno Filipe Bessa Hold €27.00 10/2023 Exane BNP Paribas Francisco Ruiz Hold €26.00 10/2023 Gaesco Valores Iñigo Recio Buy €35.00 05/2023 Intermoney Valores Virginia Pérez Buy €30.00 05/2023 JB Capital Markets Alberto Espelosin Buy €33.80 10/2023 Kepler Cheuvreux Alexandre Raverdy Hold €27.00 05/2023 Mirabaud Manuel Lorente Hold €29.03 07/2023 Norbolsa Nikola Egia Hold €30.51 06/2023 Oddo BHF Anthony Dick Outperform €33.00 10/2023 Renta 4 Álvaro Aristegui Outperform €35.50 12/2023 Sabadell Alfredo Del Cerro Buy €29.81 10/2023 Santander Robert Jackson Outperform €35.50 07/2023 Consensus - - €31.22
- 55. Appendix
- 56. 56 Alternative performance measurement (APMS) APPENDIX I PERFORMANCE MEASURES DEFINITION EBITDA Net Operating Income + Depreciation Adjusted EBITDA Annualized EBITDA of 12 last months in those companies incorporated to the perimeter during the period. It includes 50% of the EBITDA of Chinese JV SAMAP, which is based on the current agreements with the partner, is consolidated by the equity method. EBIT Net Operating Income. EBT Earnings before taxes. Net Income Recurrent profit attributable to the company’s shareholders. Net Financial Debt (NFD) Debt with banks and other financial institutions – Cash and equivalents – Other Financial Assets. Adjusted Net Financial Debt Net Financial Debt including 50% of Chinese JV SAMAP net financial debt, consolidated by the equity method as per the current partner agreements reached. Gross Financial Debt (GFD) Debt with banks and other financial institutions.
- 57. 57 September 2022 profit comparable APPENDIX II Turnover EBIT EBITDA SEPTEMBER CIE P&L PUBLISHED IN 2022 (1) Profit for the year Attributable to non-controlling interests EBT Tax expense Discontinued Activities Net Income INTERRUPTION ADJUSTMENT (1) CIE Group income statement published on 30/09/2022. (2) CIE Group income statement on 30/09/2022 as comparable considering the interruption of the German forging business. €m 2022 SEPTEMBER CIE P&L COMPARABLE (2) 3,032.6 495.3 350.6 264.9 (29.4) 332.4 (69.2) 1.7 235.5 2,857.2 348.1 487.4 264.9 (29.4) 331.6 (69.0) 2.2 235.5 (175.4) (2.6) (7.9) 0 0 (0.8) 0.2 0.6 0
- 58. THANK YOU