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Full Year 2018 Results Presentation4 April 2019
DisclaimerThis 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
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that it deems necessary or appropriate. Neither the Group nor any of its 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.
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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
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indications of whether or not such results will be achieved. The Group is not under any obligation 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 measures provide 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 this presentation. 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 the market 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 sources and there can be no assurance that the assumptions or
estimates are accurate.
2
Participants
Jesús Pascual, Chief Executive Officer
Cristina Blanco, Chief Financial Officer
Carlos Garcia-Mendoza, Capital Markets and IR
3
2018 Highlights
80car models
that came to market in 2018
Grupo Antolin has been present in…
9 out of 10 best-selling cars
that came to market in 2018
429projectsin total
112 new projects
in 2018
Issuance of €250 million in Senior Secured Notes with an 8-year maturity
and yearly fixed coupon of 3.375% - April
Amendment and restatement of €378 million Senior Facility Agreement including €50 million of additional borrowing - April
€100 million Senior Facility Agreement entered into with the EIB - June
Redemption of €400 million 5.125% Senior Secured Notes due 2022 - June
Application of IFRS 15
4
IFRS 15 Applied IFRS 15 Not Applied
2018 2017 Change 2018 2017 Change
Revenue 5,424.6 5,391.4 0.6% 5,015.8 5,036.7 -0.4%
EBITDA 355.9 465.7 -23.6% 355.9 465.7 -23.6%
EBITDA margin 6.6% 8.6% - 7.1% 9.2% -
EBIT 160.9 291.0 -44.7% 160.9 291.0 -44.7%
EBIT margin 3.0% 5.4% - 3.2% 5.8% -
2018 Highlights (cont’d)
The application of IFRS 15 as of January 1 2018 has meant a €409m increase in Revenue as a result of
including Tooling revenue. This has not had any impact on EBITDA or EBIT. Prior to IFRS 15, the result
of Tooling sales minus Tooling costs was reflected under “Other operating income”
5
2018 Highlights (cont’d)
Sales of €5.4bn under IFRS 15, at constant currencies up 3.2% from 2017 and versus -0.5%* industry
production growth
− Including FX impact, sales increased 0.6%
− Not considering IFRS 15, sales of € 5.0bn, growth of 2.2% at constant currencies
EBITDA of €356m, at constant currencies down 19.6% from 2017, margin of 6.6%
− Including FX impact, EBITDA decreased 23.6%
− Not considering IFRS 15, margin of 7.1%
EBIT of €161m, down 44.7% from 2017, margin of 3.0%
− Not considering IFRS 15, margin of 3.2%
Year end cash of €311m and €252m of available revolving credit facilities, with year end net leverage ratio of
2.58x and interest coverage ratio of 9.28x*Source: LMC Global Automotive Production. Quarter 4, 2018
6
Sales Breakdown Doors, Cockpits and Lighting driving sales growth
Overheads impacted by plant closure in Germany and decreased activity in Germany,
UK and Michigan.
Doors benefits from launches in NAFTA and China
Lighting supported by growth in China
Cockpits launches in China and US offset declines in UK
FX impact represents c. € 138m of decreased sales
Strong performance in NAFTA and APAC helped compensate European weakness
European sales principally reflect ongoing German plant closure and sales declines in
Germany and UK
NAFTA sales reflect Dodge Ram launch and increased Mexican sales in Doors, US
strength in Cockpits, compensating Overheads sales declines
China sales up 31% vs market production down 3.5% in 2018**. Significant growth in
Cockpits
**Source: LMC Global Automotive Production. Quarter 4, 2018
2.128 2.061
1.828 1.886
324 349
1.108 1.126
2017* 2018
Overheads Doors Lighting Cockpits
5,391 5,425
EU
Rm
- 3%
+ 0.6%
+ 3%
+ 8%
+ 2%
2.950 2.734
1.809 1.946
511 61889 90
2017* 2018
Europe NAFTA APAC Mercosur Africa
EU
Rm
+ 2%
- 7%
+ 21%
+ 8%
*2017 data excludes Seating Business Unit7
EBITDA Breakdown
Growth across all Business Units except for Overheads
Overheads impacted by:
Trunk trim projects in Hungary, Spartanburg and Alabama
Continued underperformance in Kentucky and Slovakia
Ongoing German plant closure
Sales declines in Europe (Germany and UK)
European underperformance impacted Overheads across Central Europe due to trunk trim projects in Hungary, new product launches in Slovakia and lower sales in Germany. Doors impacted by UK sales declines.
Non-industrial results reflect consolidation effects and overhead expenses. 2017 was significantly affected by provision reversals
8.6%Margin 6.6%
*2017 under IFRS 15 and excluding Seating Business Unit
191103
201
204
58
62
77
89
(61) (102)
Overheads Doors Lighting Cockpits Non Industrial
466356
EU
Rm
+ 66%
- 23.6%
- 46%
+ 1%
+ 6%
187103
185
179
81
65
5
0
2017* 2018
Europe NAFTA APAC Mercosur Africa
EU
Rm
- 19%
- 45%
- 3%
- 97%
2017* 2018
+ 16%
8
3 4 8 5
-
466
356
13 14
11 8 6 10 1 0 7 6 8 1 10 3 5
8 19
-
50
100
150
200
250
300
350
400
450
500
FY
'17
Q1
Ne
w F
act
orie
s
Q1
Ne
w L
aun
ches
Q1
US
A
Q1
UK
Sal
es D
eclin
es
Q1
FX
Q1
Oth
ers
Q2
Ne
w F
act
orie
s
Q2
Ne
w L
aun
ches
Q2
US
A
Q2
UK
Sal
es D
eclin
es
Q2
FX
Q3
Ne
w F
act
orie
s
Q3
Ne
w L
aun
ches
Q3
US
A
Q3
UK
Sal
es D
eclin
es
Q3
FX
Q4
Ne
w F
act
orie
s
Q4
Ne
w L
aun
ches
Q4
US
A
Q4
UK
Sal
es D
eclin
es
*Oth
ers
FY
'18
FY 2018 EBITDA Bridge
Q1 Impacts Q2 ImpactsE
UR
mQ3 Impacts
*Others includes provisions, consolidation adjustments, operating expenses and other minor launches, among others
Q4 Impacts
9
2018 Key Underperformers
Total negative EBITDA from these key facilities was € 58m in 2018
Agreement to sell Tianjin facility, expected to close in H1 2019
Significant management reinforcements in USA working to revert situation in 2019
Rastatt closure fully provisioned
Trunk trim operations in Spartanburg and Alabama being reconfigured
Overheadsfacilities
-30
-25
-20
-15
-10
-5
0
5Tianjin SPT D SPT A SPT H Kentucky Alabama Rastatt
EBITDA €m
2017 2018
0
50
100
150
200
250
300
Tianjin SPT D SPT A SPT H Kentucky Alabama Rastatt
Sales €m
2017 2018
10
2018 Financial Highlights
Cash available of EUR 311m
Available revolving credit facilities of EUR 252m
LTM EBITDA of EUR 356m and Net Debt to EBITDA of 2.58x
Net debt average maturity of 5.6 years
Cash and long term undrawn committed credit lines of EUR 563m vs short term maturities of EUR 78m
11
EBITDA Capex Taxes ΔWC FCF
Q1-18 84 (54) (8) (97) (76)
Q2-18 113 (78) (17) (31) (13)
Q3-18 57 (72) 5 20 9
Q4-18 102 (116) (2) 189 170
Total 356 (320) (22) 77 91
RemarksCash flow for WC* (€m)
Capex (€m) Free cash flow
Total net working capital decreased by €77m in 2018− Operating working capital increased by €17m− Tooling working capital declined by €94m
In December 2018 the Company carried out € 72m in non-recourse factoring− € 37m of operating receivables to compensate delayed collections
from Spanish tax authorities (received in January ‘19)− € 35m of tooling receivables to compensate delayed collections from
customers (received in February ‘19) Bamberg opening in 2019 + 1 significant greenfield facility launching in 2019 -
Cuautitlán for Doors and Instrument Panels for Ford with SOP in 2020
208 185
125135
2017 2018Tangible Intangible
(21)
77
2017 2018
* Under IFRS 15 sales of € 5.39bn
Free cash flow
% of sales 6.2%* 5.9%
12
2019 2020 2021 2022 2023 2024 2025 2026 2027Term Loan Soft loans EIB Leasings SSN 26 Other loans ST Credit & Interests SSN 24
Balanced, long term capital structure
Gross debt 31 December 2018€1,249m
Net debt 31 December 2018€938m
€650m senior secured notes
€411m senior financing
€100m EIB facility
€4m soft loans with cost; €19m soft loans with no cost
€62m other facilities, of which €50m are credit lines
€3m accrued interests
Cash available of €311m
For covenant purposes, Net debt totalled € 918 million (excludes soft
loans without financial cost, includes cash using 12 month FX average).
€200m undrawn syndicated revolving credit facility, and €52m undrawn
local credit lines
Covenants
2.58x Net Debt/EBITDA 9.28x EBITDA/Financial expenses
Covenant: under 3.50x Covenant: over 4.00x
€ 356mDec 2018 EBITDA
78
227
417
265
1531
170
1524
13
2019 Outlook
Component revenue growth ≈ flat
Non-IFRS 15 EBITDA margin c. 8%
Capex c. 5.5-6% of revenue
Working Capital stable as a percentage of LTM revenue
Leverage is expected to end the year at c. 2.5x
Dividend of € 14m (≈ pay out ratio of 30% of Net Income)
We may from time to time and depending on our liquidity position, market conditions and other factors,
repurchase our debt, including the 2024 Notes and the 2026 Notes
14
Current trading
IFRS 15 YTD February 2019 YTD February 2018 % change
Revenue €803.72m €819.75m (2.0)%
EBITDA €48.55m €47.51m 2.2%
EBITDA Mgn. 6.0% 5.8%
Sales in the first months of 2019 have been in line with budget and weaker than 2018 given industry-wide slowdowns
EBITDA margin has shown some recovery on the back of Company’s restructuring efforts
15
Q&A