2016 full year results presentation - grupo · pdf file2016 full year results presentation ......
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Disclaimer
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This information has been prepared solely for the purpose of assisting the recipient (the “Recipient”) in starting to conduct its own independent evaluation and analysis of Grupo Antolín-Irausa, S.A. and its subsidiaries(the “Group”). No representation or warranty (whether express or implied) is given in respect of any information in this presentation or that this presentation is suitable for the Recipient’s purposes.The information herein is not all-inclusive nor does it contain all information that may be desirable or required in order to properly evaluate the Group. Neither the Group nor any of its officers, directors, employees,
affiliates or advisors will have any liability with respect to any use of, or reliance upon, any of the information herein. The Recipient acknowledges and agrees that it is responsible for making an independent judgmentin relation to information contained herein and for obtaining all necessary financial, legal, accounting, regulatory, tax, investment and other advice that it deems necessary or appropriate. Neither the Group nor any ofits officers, directors, employees, affiliates or advisors is responsible as a fiduciary and is not acting as an advisor (as to financial, legal, accounting, regulatory, tax, investment or any other matters) to the Recipient.The Group has no obligation whatsoever to update any of the information or the conclusions contained herein or to correct any inaccuracies which may become apparent subsequent to the date hereof.This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of any entity of the Group, in the United States of
America or in any other jurisdiction or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contractor commitment or investment decision whatsoever. Any decision to invest in any securities of the Group or otherwise participate in any financing of the Group should not be based on information contained in thispresentation. This presentation is only for persons having professional experience in matters relating to investments and must not be acted or relied on by any persons. Solicitations resulting from this presentation willonly be responded to if the person concerned is a person having professional experience in matters relating to investments. This presentation does not constitute a recommendation regarding the securities of theGroup.This presentation includes statements, estimates, opinions and projections with respect to anticipated future performance of the Group (“forward looking statements”), which reflect various assumptions concerning
anticipated results taken from the current business plan of the Group or from public sources which may or may not prove to be correct. These forward looking statements contain the works “anticipate”, “believe”,“intend”, “estimate”, “expect” and words of similar meaning. Such forward-looking statements reflect current expectations based on the current business plan and various other assumptions and involve significant risksand uncertainties, and should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. The Group is not under anyobligation to update or revise such forward-looking statements to reflect new events or circumstances.Certain financial data included in this presentation consists of “non-GAAP financial measures.” These non-GAAP financial measures may not be comparable to similarly titled measures presented by other entities, nor
should they be construed as an alternative to other financial measures determined in accordance with International Financial Reporting Standards. Although the Group believes these non-GAAP financial measuresprovide useful information to users in measuring the financial performance and condition of its business, users are cautioned not to place undue reliance on any non-GAAP financial measures and ratios included in thispresentation. Market and competitive position data in this presentation has generally been obtained from studies conducted by third-party sources. There are limitations with respect to the availability, accuracy,completeness and comparability of such data. The Group has not independently verified such data and can provide no assurance of its accuracy or completeness. Certain statements in this presentation regarding themarket and competitive position data are based on the internal analyses of the Group, which involves certain assumptions and estimates. These internal analyses have not been verified by any independent sourcesand there can be no assurance that the assumptions or estimates are accurate.
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Participants
� Jesús Pascual, Chief Executive Officer
� Cristina Blanco, Chief Financial Officer
� Carlos Garcia-Mendoza, Capital Markets and IR
2016 Operating highlights
• Sales of €5,247m, up 50% from 2015
• EBITDA of €521m up 34% from 2015, margin of 9.9%
• EBIT of €339m up 27% from 2015, margin of 6.5 %
• Excluding the acquisition of Magna Interiors:
• Sales of €2,892m up 7.4% from 2015 versus 3.9%* industry production growth
• EBITDA of €350m with margin of 12.1%
*Source: LMC Global Automotive Production. Quarter 4, 2016
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5
Sales breakdown
1.506 1.696 2.084
7801.006
1.461215
273
332
190205
272
813324
1.096
2015* 2015** 2016
Headliners Doors Seating Lighting Cockpits
2.0043.040
1.173
1.712
245
408
60
63
24
24
2015 2016
Europe NAFTA APAC Mercosur Others
5,247
3,506
(€m
)(€
m)
+23%
50%
+22%
+45%
+5%
+52%
+67%
+46%
* Historical segmentation** New segmentation***LMC Global Automotive Production. Quarter 4, 2016
+238%
+33%
�Strong performance across all business units reflecting a full 12
months of revenues from the integration of Magna Interiors
� Cockpits growth reflects successful Redditch product
launches
� Significantly higher sales to Tata-JLR, GM, BMW and
Daimler
� Some negative FX impact on Doors, Cockpits and
Headliners
�Strong performance across all key markets, in particular Europe,
NAFTA and APAC
� USA, UK and Germany key growth markets
� China sales up +76.7% vs market production up 12.2% in
2016***
By product
By geography
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EBITDA breakdown11.1%Margin 9.9%
172 182 203
106 12719230
42
55
3033
48
45
-3
44
8
-212015* 2015** 2016
Headliners Doors Seating Lighting Cockpits Others
212280
146
16731
68
-5 -3
4
9
2015 2016
Europe NAFTA APAC Mercosur Others
(€m
)(€
m)
+11%
34%
+32%
+52%
+32%
+119%
+15%
+46%388
521�Significant improvement based on:
� Doors growth driven primarily by growth in Europe and
product launches for GM, Fiat-Chrysler, Tata-JLR
Daimler
� Suzhou activity for a full 12 months supports Lighting
margin expansion
� Certain FX impact on Doors, Cockpits and Headliners
�Margin impacted by inclusion of Magna Interiors, with 7.2%
EBITDA margin
� Excluding Magna Interiors, 2016 EBITDA margin would
have reached 12.1%
�APAC continues as significant contributor to margin expansion
reaching 16.6% margin
By product
By geography
* Historical segmentation** New segmentation
�Grupo Antolin divests to focus on existing business units with
global presence and leading market shares
�Disposal value of €286m, representing 4.9x EBITDA multiple
�Expected transaction closing in the first half of 2017
�Funds to be reinvested in 2017 and 2018 growth projects
€371m adjustment for disposal
€59m adjustment for disposal
Margin
Strategic rationale
EBITDA
9.5%9.9%
Disposal of seating and metals division
5,247 4,876
2016 2016
(€m
)(€
m)
521462
2016 2016
Revenues
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2016 Financial Highlights
• Cash available of €306m
• Available revolving credit facilities of €258m
• FY2016 EBITDA of €521m, Net debt to EBITDA of 1.9x, EBITDA to Financial Expenses of 9.0x
• Adjusting for the divestiture of the Seating business:
o FY2016 Adjusted EBITDA of €462m,
o Adjusted Net debt to EBITDA of 1.5x,
o Adjusted EBITDA to Financial Expenses of 8.0x
9Note: Net leverage calculations as per SFA definitions for covenant purposes
Free cash flow
EBITDA Capex Taxes ∆WC FCF
Q1-16 143 (56) (14) (63) 10
Q2-16 157 (73) (21) 8 71
Q3-16 112 (57) (20) (30) 5
Q4-16 109 (99) (49) 57 18
Total 521 (285) (105) (26) 104
� Net working capital increased by €26m in 2016:
� Mainly driven by increased tooling working capital while operating working capital decreased compared to 2015
� As the acquisition of Cockpits took place in August 2015, the figures for 2016 include the full year net working capital of this Business Unit compared to the four month period included in the figures for 2015
� Goal to maintain year-end working capital (excluding tooling) in line with historic averages
� Continued capital expenditures in 2017 in all divisions to drive future growth
� Headliners - Spartanburg, Silao, Kesckemet, Alabama
� Doors - Sterling Heights, Massen, Saltillo
� Lighting - Besançon, Guangzhou, Bamberg
� Cockpits - Tianjin, Straubing
% of sales 4.9% 5.4%
RemarksCash flow for ����WC (€m)
Capex (€m)
Free cash flow
(56)
(26)
2015 2016
(171)
(285)
2015 2016
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44 44 65101
644
416
3 3
2017 2018 2019 2020 2021 2022 2023 2024
Other ADE loan Term Loan A SSNs '21 SSNs '22
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Balanced, long term capital structure
Gross debt 31 December 2016€1,321m
� €800m senior secured notes
� €387m senior financing
� €60m ADE facility
� €5m soft loans with cost; €32m soft loans with no cost
� €21m other facilities
� €11m are credit lines
� €5m accrued interests
� Cash available of €306m
� Net debt for covenant purposes totalled €984m (excludes €32m soft loans with no
financial cost)
� €200m undrawn syndicated revolving credit facility, and €58m undrawn other credit lines
� SFA amortization schedule assumes 2021 SSNs have been refinanced on or before 31
August 2020
Covenants1.5x Adjusted Net Debt / EBITDA 8.0x Adjusted EBITDA / Financial expenses
Covenant: under 3.50x Covenant: over 4.00x
€521mDec 2016 EBITDA
€462mDec 2016 Adjusted EBITDA
€984mDec 2016 Net Debt
€706mDec 2016 Adjusted Net Debt
Net debt 31 December 2016 €984m
Note: Net leverage calculations as per SFA definitions for covenant purposes