q3 2018 results november 5 , 2018 - ferrari corporate · q3 2018 results november 5th, 2018 3...
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1 Q3 2018 Results November 5th, 2018
Q3 2018 Results
November 5th, 2018
2 Q3 2018 Results November 5th, 2018
SAFE HARBOUR STATEMENT
This document, and in particular the section entitled “Confirming 2018 Guidance” contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “continue”, “on track”, “successful”, “grow”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, “guidance” or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on the Group’s current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: the Group’s ability to preserve and enhance the value of the Ferrari brand; the success of Ferrari’s Formula 1 racing team and the expenses the Group incurs for Formula 1 activities; the Group’s ability to keep up with advances in high performance car technology and to make appealing designs for its new models; the challenges and costs of integrating hybrid technology more broadly into Group’s car portfolio over time; the Group’s ability to preserve its relationship with the automobile collector and enthusiast community; the Group’s low volume strategy; the ability of Maserati, the Group’s engine customer, to sell its planned volume of cars; changes in client preferences and automotive trends; changes in the general economic environment, including changes in some of the markets in which we operate, and changes in demand for luxury goods, including high performance luxury cars, which is highly volatile; the impact of increasingly stringent fuel economy, emission and safety standards, including the cost of compliance, and any required changes to its products; the Group’s ability to successfully carry out its growth strategy and, particularly, the Group’s ability to grow its presence in emerging market countries; the Group’s ability to achieve its key financial targets and financial policy; the Group’s ability to service and refinance its debt; competition in the luxury performance automobile industry; reliance upon a number of key members of executive management, employees and the ability of its current management team to operate and manage effectively; the performance of the Group’s dealer network on which the Group depend for sales and services; increases in costs, disruptions of supply or shortages of components and raw materials; disruptions at the Group’s manufacturing facilities in Maranello and Modena; the Group’s ability to provide or arrange for adequate access to financing for its dealers and clients, and associated risks; the performance of the Group’s licensees for Ferrari-branded products; the Group’s ability to protect its intellectual property rights and to avoid infringing on the intellectual property rights of others; product recalls, liability claims and product warranties; continued compliance with customs regulations of various jurisdictions; labor relations and collective bargaining agreements; exchange rate fluctuations, interest rate changes, credit risk and other market risks; changes in tax, tariff or fiscal policies and regulatory, political and labor conditions in the jurisdictions in which the Group operates, including possible future bans of combustion engine cars in cities and the potential advent of self-driving technology; ability to ensure that its employees, agents and representatives comply with applicable law and regulations; the adequacy of its insurance coverage to protect the Group against potential losses; potential conflicts of interest due to director and officer overlaps with the Group’s largest shareholders; ability to maintain the functional and efficient operation of its information technology systems, including our ability to defend from the risk of cyberattacks on our in-vehicle technology, and other factors discussed elsewhere in this document. The Group expressly disclaims and does not assume any liability in connection with any inaccuracies in any of the forward-looking statements in this document or in connection with any use by any third party of such forward-looking statements. Any forward-looking statements contained in this document speak only as of the date of this document and the Company does not undertake any obligation to update or revise publicly forward-looking statements. Further information concerning the Group and its businesses, including factors that could materially affect the Company’s financial results, is included in the Company’s reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB.
3 Q3 2018 Results November 5th, 2018
SUSTAIN DELIVERY OF 2018 TARGETS
Note:(1) Reconciliations to non-GAAP financial measures are provided in the Appendix
(2) The Italian Patent Box regime provides for a tax relief for a five-year period from 2015 to 2019. The Patent Box benefit for the three-year period 2015-2017
is Euro 141 million, of which Euro 139 million from direct and Euro 2 million from indirect use of copyrights, patents, trademarks, designs and know-how.
Solid industrial free cash flow(1) generation of €100 million, with net industrial debt already in line with full year guidance, and adj. EPS(1) of €0.78
Patent Box agreement signed Three-year period 2015-2017 benefit €141 million(2), with positive cash impact which will be realized in Q4
New special series 488 Pista Spider presented at the Paris Motorshow
New Icona pillar unveiled with the Ferrari Monza SP1 and SP2
Confirming 2018 guidance
Capital Markets Day held on September 18, 2018, Management outlined the plans and initiatives to achieve its key financial targets and its financial policy to 2022
ON THE WAY TO ANOTHER STRONG YEAR
4 Q3 2018 Results November 5th, 2018
0.74
0.78 0.74 1.52
Q3 '17
Q3 '18
Q3 2018 HIGHLIGHTS
Note: (1) Reconciliations to non-GAAP financial measures are provided in the Appendix
266
278
Q3 '17
Q3 '18 33.2%
31.8%
(473)
(342) (30) (372)
Dec. 31, 2017
Sept. 30, 2018
147
100
Q3 '17
Q3 '18
836
838
Q3 '17
Q3 '18
2,046
2,262
Q3 '17
Q3 '18
SHIPMENTS
(UNITS)
Adjustments
Adjusted EPS(1)
Buyback
Net Industrial Debt(1) excluding buyback
+10.6%
NET REVENUES
(€M)
+0.3%
ADJUSTED EBITDA(1)
(€M and margin %)
+4.7%
INDUSTRIAL FREE CASH FLOW(1)
(€M)
-32.0%
+105.4%
-21.4%
EARNINGS PER SHARE(1)
(€)
NET INDUSTRIAL DEBT(1)
(€M)
5 Q3 2018 Results November 5th, 2018
Q3 2018 – SHIPMENTS BY REGION(3)
Note: (3) Refer to notes to the presentation in the Appendix
ALL REGIONS POSITIVELY CONTRIBUTING
Americas +4.6% (34% vs. 36% PY)
EMEA +11.3% (45% vs. 44% PY)
Rest of APAC +27.5% (14% vs. 13% PY)
China, Hong Kong and Taiwan, on a
combined basis +6.6% (7% vs. 7% PY)
Total shipments increased by 216 units (+10.6%
vs. PY) supported by a 7.9% increase in V12
models and an 11.4% increase in V8 models:
The 488 family in line with prior year with first
few deliveries of the 488 Pista
Strong deliveries for the 812 Superfast
The newly launched Ferrari Portofino is
ramping up
LaFerrari Aperta is finishing its limited series
run
6 Q3 2018 Results November 5th, 2018
NET REVENUES BRIDGE Q3 2017-2018
Cars and spare parts: higher volumes led by the
ramp up of the Ferrari Portofino as well as the 812
Superfast together with pricing and deliveries of the
strictly limited edition Ferrari J50. Negative mix due
to higher V8 models as well as lower sales of
LaFerrari Aperta, that is finishing its limited series
run.
Engines: decrease in sales to Maserati due to lower
engine volumes
Sponsorship, commercial and brand: increased
revenues from higher 2017 championship ranking
compared to 2016 as well as stronger revenues
from sponsorship, partially offset by brand related
activities
+0.3%, +€2 million at current currency
+2.2%, +€18 million at constant currency(8)
Note: (4) (5) (6) (7) Refer to notes to the presentation in the Appendix
(8) The constant currency presentation eliminates the effects of foreign currency transaction and translation impacts and foreign currency hedging .
605 628 616
88 70 70
124 132 12819 24 24
(18) (16)
23 8 5
Q3 2017 Cars and spare
parts
Engines Sponsorship,
commercial
and brand
Other Q3 2018 at
constant
currency
Currency Q3 2018 at
current
currency
Cars and spare parts Engines Sponsorship, commercial and brand Other
836 838
(€M)
(4)
(5)
(6)
(7)
+3.8% -19.9% +6.5% +21.0%
854
(8)
7 Q3 2018 Results November 5th, 2018
ADJ. EBIT BRIDGE Q3 2017 – 2018(1)
Volume increase thanks to the ramp up of the Ferrari
Portofino as well as the 812 Superfast
Mix / price negatively impacted by strong
performance from V8 models and lower sales of
LaFerrari Aperta, that is finishing its limited series
run. This was partially offset by pricing and deliveries
of the strictly limited edition Ferrari J50.
Industrial costs / R&D slightly decreased mainly due
to lower spending in F1 activities
SG&A lower than prior year mainly due to lower
costs related to the 70th anniversary celebrated in
2017
Currency(8) negatively impacted mainly by USD
depreciation vs. Euro
Note: (1) Reconciliations to non-GAAP financial measures are provided in the Appendix.
(8) The constant currency presentation eliminates the effects of foreign currency transaction and translation impacts and foreign currency hedging
(€M)
Adj. EBITDA Adj. EBITDA
Adj. EBITDA at constant curr. at current curr.
266 297 278
31.8% 33.2%
(12)(19)
202 23 5 4 0 222 203
Adj. EBIT Q3
2017
Vol. Mix / Price Ind. Costs /
R&D
SG&A Other Adj. EBIT Q3
2018 at
constant
currency
Currency Adj. EBIT Q3
2018 at
current
currency(8)
Margin Margin24.2% 24.2%
(8)
8 Q3 2018 Results November 5th, 2018
(€M)
(442)
(342)(372)
June 30, 2018
Net Industrial
Debt excl.
Buyback
Adj. EBITDA Net ∆ working
capital
Tax paid Capex Other Dividends paid Currency and
other
September 30,
2018
Net Industrial
Debt excl.
buyback
Buyback September 30,
2018
Net Industrial
Debt
Industrial FCF €100m
278
(3) (155)
(17)(0) (0)
(3)
(30)
NET INDUSTRIAL DEBT BRIDGE(1) JUN 30, 2018 – SEPT 30, 2018
Note: (1) Reconciliations to non-GAAP financial measures are provided in the Appendix
Industrial free cash flow(1) driven by strong adjusted EBITDA(1) partially offset by solid capex to support broadening and hybridization of our product range
Q4 2018 industrial free cash flow(1) will benefit from the Patent Box
9 Q3 2018 Results November 5th, 2018
CONFIRMING 2018 GUIDANCE
Note: (9) Including hypercars
(10) Including dividends already distributed to the holders of common shares and excluding shares buyback.
NET REVENUES
SHIPMENTS(9)
> €3.4 billion
> 9,000
ADJ. EBITDA ≥ €1.1 billion
NET INDUSTRIAL DEBT(10) < €350 million
CAPITAL EXPENDITURES ~ €650 million
As announced at the Capital Markets Day on September 18, 2018
10 Q3 2018 Results November 5th, 2018
F1: WORKING DILIGENTLY FOR THE 2018 SEASON
1st place at the Australia, Bahrain, Canada, Great Britain, Belgium
and United States GPs
22 podiums so far
S. Vettel currently 2nd in Driver’s Championship with 294 points
Constructor ’s Championship
1. Mercedes 585
2. Ferrari 530
3. Red Bull Racing Tag Heuer 362
4. Renault 114
5. Haas Ferrari 84
Driver’s Championship
1. Lewis Hamilton - Mercedes 358
2. Sebastian Vettel - Ferrari 294
3. Kimi Räikkönen - Ferrari 236
4. Valtteri Bottas - Mercedes 227
5. Max Verstappen - Red Bull 216
11 Q3 2018 Results November 5th, 2018
Q3 2018 – CLIENT RELATIONS ACTIVITIES
August 22 – 26 Casa Ferrari, Pebble Beach
488 PISTA SPIDER WORLD PREMIERE
September 17 – 18 Italy, Maranello Ferrari Monza SP1 and SP2 unveiling
ICONA FERRARI WORLD PREMIERE
June 18 – 22
Italy, Sardinia
CAVALCADE CLASSICHE
12 Q3 2018 Results November 5th, 2018
WEC: 6h Silverstone 1st - LM GTE Class
PWC: wins GT SprintX Title
ELMS: 4h Silverstone 1st - LMGTE Class
Le Mans Cup: wins R5, R6 - GT3 class
International GT Open: wins R5, R6 - PRO
VdeV Endurance: wins GTV1 Title
Q3 2018 – ATTIVITA’ SPORTIVE GT
COMPETIZIONI GT
Average 488 Ch. entries per round
UPDATED ROUND 6
EUROPE 45
NORTH AMERICA 50 (18 458 Ch.)
ASIA PACIFIC 33
FERRARI CHALLENGE
Average entries per round
UPDATED ROUND 9 – Paul Ricard (FRA)
XX: 18
F1: 8
The On-track debut in FGC area of the
FXX-K EVO
XX PROGRAMS / F1 CLIENTI
CONTINUOUSLY ENGAGING WITH OUR CUSTOMERS
APPENDIX
14 Q3 2018 Results November 5th, 2018
NOTES TO THE PRESENTATION 1. Reconciliations to non-GAAP financial measures
are provided in the Appendix
2. The Italian Patent Box regime provides for a tax relief for a five-year
period from 2015 to 2019. The Patent Box benefit for the three-year
period 2015-2017 is Euro 141 million, of which Euro 139 million from
direct and Euro 2 million from indirect use of copyrights, patents,
trademarks, designs and know-how
3. Shipments geographical breakdown
EMEA includes: Italy, UK, Germany, Switzerland, France, Middle East
(includes the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon,
Qatar, Oman and Kuwait) and Rest of EMEA (includes Africa and the
other European markets not separately identified);
Americas includes: United States of America, Canada, Mexico, the
Caribbean and Central and South America;
China, Hong Kong and Taiwan includes, on a combined basis: China,
Hong Kong and Taiwan;
Rest of APAC includes: Japan, Australia, Singapore, Indonesia, South
Korea, Thailand and Malaysia
4. Includes the net revenues generated from shipments of our cars,
including any personalization revenue generated on these cars and
sales of spare parts
5. Includes the net revenues generated from the sale of engines to
Maserati for use in their cars, and the revenues generated from the
rental of engines to other Formula 1 racing teams
6. Includes the net revenues earned by our Formula 1 racing team through
sponsorship agreements and our share of the Formula 1 World
Championship commercial revenues and net revenues generated
through the Ferrari brand, including merchandising, licensing
and royalty income
7. Primarily includes interest income generated by our financial services
activities and net revenues from the management of the Mugello
racetrack
8. The constant currency presentation eliminates the effects of foreign
currency transaction and translation impacts and foreign currency
hedging
9. Including hypercars
10. Including dividends already distributed to the holders of common shares
and excluding shares buyback
15 Q3 2018 Results November 5th, 2018
Model / Year of delivery 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
SPORT RANGE
F430
F430 Spider
599 GTB Fiorano
458 Italia
458 Spider
F12berlinetta
488 GTB
488 Spider
812 Superfast
GRAN TURISMO RANGE
612 Scaglietti
California
FF
California 30
California T
GTC4Lusso
GTC4Lusso T
Portofino
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Range model introduced or announced
Special series and one-offs not included
16 Q3 2018 Results November 5th, 2018
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Special and Limited edition introduced or announced
Note: (11) Models not included in the total shipments’ figure provided
Model / Year of delivery 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
SPECIAL SERIES
Superamerica
F430 Scuderia
Scuderia Spider 16M
599 GTO
SA APERTA
458 Speciale
458 Speciale A
F12tdf
488 Pista
488 Pista Spider
ICONA
Ferrari Monza SP1
Ferrari Monza SP2
Model / Year of delivery 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
HYPERCAR
LaFerrari
LaFerrari Aperta
TRACK CARS
FXX K(11)
FXX-K EVO(11)
FUORISERIE
F60 America(11)
J50(11)
17 Q3 2018 Results November 5th, 2018
GROUP SHIPMENTS(3)
2,938 3,181
2,078 2,189
453 522
912 961
6,381 6,853
9M 2017 9M 2018
3,737 >4,000
2,811 >3,000
617
>700 1,233
>1,300
8,398
FY 2017 FY 2018E
Note: (3) Refer to notes to the presentation in the Appendix.
Graphs not to scale. Shipments including hypercars LaFerrari and LaFerrari Aperta.
903 1,005
736 770
152 162 255 325
2,046 2,262
Q3 2017 Q3 2018
+10.6%
+7.4%
Americas EMEA China, Hong Kong and Taiwan,
on a combined basis Rest of APAC
>9,000
18 Q3 2018 Results November 5th, 2018
KEY PERFORMANCE METRICS Q3 '18 Q3 '17 €M, unless otherwise stated 9M '18 9M '17
2,262 2,046 Worldwide shipments (units) 6,853 6,381
838 836 Net revenues 2,575 2,577
278 266 EBITDA(1) 841 778
- - Adjustments (1) -
278 266 Adjusted EBITDA(1) 840 778
75 64 Amortization and depreciation 210 197
203 202 EBIT 631 581
203 202 Adjusted EBIT(1) 630 581
6 8 Net financial expenses 15 25
197 194 Profit before taxes 616 556
(90) 53 Income tax expense / (benefit) 20 155
n.m. 27.6% Effective tax rate 3.2% 28.0%
287 141 Net profit 596 401
146 141 Adjusted net profit(1) 454 401
1.52 0.74 Basic EPS (€) 3.15 2.11
1.51 0.74 Diluted EPS(1)
(€) 3.14 2.11
0.78 0.74 Adjusted Basic EPS(1)
(€) 2.40 2.11
0.77 0.74 Adjusted Diluted EPS(1)
(€) 2.39 2.11
Note: (1) Reconciliations to non-GAAP financial measures are provided in the Appendix.
Certain totals in the tables included in this document may not add due to rounding.
19 Q3 2018 Results November 5th, 2018
DEBT AND LIQUIDITY POSITION
Gross Debt Maturity Profile (€M) Cash and Marketable Securities (€M)
Net Industrial Debt (€M) Net Industrial Debt (€M)
Note: (12) After settlement of deposits on FCA Group cash management pools and financial liabilities with FCA.
(13) Portion of the Self-liquidating Financial Receivables Portfolio funded through securitizations.
Certain totals in the tables included in this document may not add due to rounding.
Sept. 30 Jun. 30 Mar. 31 Adj.
(€M) 2018 2018 2018 FY 2017 FY 2016 FY 2015 (12)FY 2015
Euro 529 458 565 435 318 137 22
US Dollar 87 54 61 88 16 21 1
Chinese Yuan 85 75 78 62 58 106 106
Japanese Yen 27 27 10 26 37 41 41
Other Currencies 25 36 29 37 29 17 13
Total (€ equivalent) 753 650 743 648 458 322 183
At Sept. 30 At Jun. 30 At Mar. 31 At Dec. 31
(€M) 2018 2018 2018 2017 2016 2015
Total Debt (1,887) (1,853) (1,822) (1,806) (1,848) (2,260)
Cash & Cash Equivalents 753 650 743 648 458 183
Deposits in FCA Cash Management Pools - - - - 139
(Net Debt)/Net Cash (1,134) (1,203) (1,079) (1,158) (1,390) (1,938)
Funded Self-Liquidating Financial 762 731 666 685 737 1,141
Receivables Portfolio
(Net Industrial Debt)/Net Industrial Cash (372) (472) (413) (473) (653) (797)
Undrawn Committed Credit Lines 500 500 500 500 500 500
Total Available Liquidity 1,253 1,150 1,243 1,148 958 822
Cash Maturities
700500
60
363178
48
38
4
298
367
180
748
500
2018 2019 2020 2021 2023
Bond US Securitizations Other Financial Liabilities
(1,134)
(372)
762
September 30, 2018
Net Industrial Debt
Funded Self-liquidating
Financial
Receivables Portfolio
September 30, 2018
Net Debt
o/w 81%
securitized(13)
20 Q3 2018 Results November 5th, 2018
non-GAAP FINANCIAL MEASURES
Operations are monitored through the use of various non-GAAP
financial measures that may not be comparable to other similarly
titled measures of other companies
Accordingly, investors and analysts should exercise appropriate
caution in comparing these supplemental financial measures to
similarly titled financial measures reported by other companies
We believe that these supplemental financial measures provide
comparable measures of our financial performance which then
facilitate management’s ability to identify operational trends, as well
as make decisions regarding future spending, resource allocations
and other operational decisions
Reconciliations are only provided to the most directly comparable
IFRS financial statement line item for Adjusted EBITDA, Adjusted EBIT
and Adjusted EPS diluted for historical periods, as the income or
expense excluded from these non-GAAP financial measures in
accordance with our policy are, by definition, not predictable and
uncertain
Total Net Revenues, EBITDA, adj. EBITDA, EBIT and adj. EBIT at constant currency eliminate
the effects of foreign currency transaction and translation impacts and foreign currency
hedging.
EBITDA is defined as net profit before income tax expense, net financial expenses and
depreciation and amortization. Adjusted EBITDA is defined as EBITDA as adjusted for
income and costs, which are significant in nature, but expected to occur infrequently.
Adjusted Earnings Before Interest and Taxes (“Adjusted EBIT”) represents EBIT as adjusted
for income and costs, which are significant in nature, but expected to occur infrequently
Adjusted net profit represents net profit as adjusted for income and costs net of tax, which
are significant in nature, but expected to occur infrequently
Adjusted earnings per share diluted represents earnings per share as adjusted for income
and costs net of tax, which are significant in nature, but expected to occur infrequently
Net Industrial Debt defined as Net Debt excluding the funded portion of the self-
liquidating financial receivables portfolio, is the primary measure to analyze our financial
leverage and capital structure, and is one of the key indicators used to measure our
financial position
Free Cash Flow and Free Cash Flow from Industrial Activities are two of management’s
primary key performance indicators to measure the Group’s performance. Free Cash flow
is defined as net cash generated from operations less cash flows used in investing
activities. Free Cash Flow from Industrial Activities is defined as Free Cash Flow adjusted for
the change in the self-liquidating financial receivables portfolio.
non-GAAP financial measures
21 Q3 2018 Results November 5th, 2018
RECONCILIATIONS OF non-GAAP MEASURES: TOTAL NET REVENUES AT CONSTANT
AND CURRENT CURRENCY(8)
Q3 '18 at current
currency
Q3 '18 at constant
currency€M
9M '18 at current
currency
9M '18 at constant
currency
616 628 Cars and spare parts 1,898 1,980
70 70 Engines 227 227
128 132 Sponsorship, commercial and brand 380 393
24 24 Other 70 73
838 854 Total Net Revenues 2,575 2,673
Note: (8) The constant currency presentation eliminates the effects of foreign currency transaction and translation impacts and foreign currency hedging.
Certain totals in the tables included in this document may not add due to rounding.
22 Q3 2018 Results November 5th, 2018
RECONCILIATIONS OF non-GAAP MEASURES: EBIT AND ADJ. EBIT AT CONSTANT
AND CURRENT CURRENCY(8)
Q3 '18 €M 9M '18
203 EBIT 631
203 Adjusted EBIT 630
19 Currency 89
222 EBIT at constant currency 720
222 Adjusted EBIT at constant currency 719
Note: (8) The constant currency presentation eliminates the effects of foreign currency transaction and translation impacts and foreign currency hedging.
Certain totals in the tables included in this document may not add due to rounding.
23 Q3 2018 Results November 5th, 2018
RECONCILIATIONS OF non-GAAP MEASURES: EBITDA AND ADJ. EBITDA AT CONSTANT
AND CURRENT CURRENCY(8)
Q3 '18 €M 9M '18
278 EBITDA 841
278 Adjusted EBITDA 840
19 Currency 89
297 EBITDA at constant currency 930
297 Adjusted EBITDA at constant currency 929
Note: (8) The constant currency presentation eliminates the effects of foreign currency transaction and translation impacts and foreign currency hedging.
Certain totals in the tables included in this document may not add due to rounding.
24 Q3 2018 Results November 5th, 2018
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBIT
Q3 '18 Q3 '17 €M 9M '18 9M '17
203 202 EBIT 631 581
- -Release of charges related to Takata
airbag inflator recalls(1) -
203 202 Adjusted EBIT 630 581
Certain totals in the tables included in this document may not add due to rounding.
25 Q3 2018 Results November 5th, 2018
RECONCILIATIONS OF non-GAAP MEASURES: EBITDA
Q3 '18 Q3 '17 €M 9M '18 9M '17
287 141 Net profit 596 401
(90) 53 Income tax expense / (benefit) 20 155
6 8 Net financial expenses 15 25
75 64 Amortization and depreciation 210 197
278 266 EBITDA 841 778
Certain totals in the tables included in this document may not add due to rounding.
26 Q3 2018 Results November 5th, 2018
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBITDA
Q3 '18 Q3 '17 €M 9M '18 9M '17
278 266 EBITDA 841 778
- -Release of charges related to Takata
airbag inflator recalls(1) -
278 266 Adjusted EBITDA 840 778
Certain totals in the tables included in this document may not add due to rounding.
27 Q3 2018 Results November 5th, 2018
Q3 '18 Q3 '17 €M 9M '18 9M '17
287 141 Net profit 596 401
- -Release of charges related to Takata
airbag inflator recalls (net of tax effect)(1) -
(141) -Patent Box benefit
for the period 2015-2017(141) -
146 141 Adjusted net profit 454 401
Certain totals in the tables included in this document may not add due to rounding.
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED NET PROFIT
28 Q3 2018 Results November 5th, 2018
Q3 '18 Q3 '17 €M (unless otherwise stated) 9M '18 9M '17
287 140 Net profit attributable to owners
of the Company595 400
188,646 188,954 Weighted average number of common
shares (thousand)188,712 188,951
1.52 0.74 Basic EPS (€) 3.15 2.11
189,434 189,759
Weighted average number of common
shares for diluted earnings per common
share (thousand)
189,500 189,759
1.51 0.74 Diluted EPS (€) 3.14 2.11
Certain totals in the tables included in this document may not add due to rounding.
BASIC AND DILUTED EPS
29 Q3 2018 Results November 5th, 2018
Q3 '18 Q3 '17 € per common share 9M '18 9M '17
1.52 0.74 Basic EPS 3.15 2.11
- -Release of charges related to Takata
airbag inflator recalls (net of tax effect)(0.01) -
(0.74) -Patent Box benefit
for the period 2015-2017(0.74) -
0.78 0.74 Adjusted EPS 2.40 2.11
1.51 0.74 Diluted EPS 3.14 2.11
- -Release of charges related to Takata
airbag inflator recalls (net of tax effect)(0.01) -
(0.74) -Patent Box benefit
for the period 2015-2017(0.74) -
0.77 0.74 Adjusted diluted EPS 2.39 2.11
Certain totals in the tables included in this document may not add due to rounding.
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EPS
30 Q3 2018 Results November 5th, 2018
RECONCILIATIONS OF non-GAAP MEASURES: FREE CASH FLOW AND FREE CASH FLOW
FROM INDUSTRIAL ACTIVITIES
Q3 '18 Q3 '17 €M 9M '18 9M '17
234 227 Cash flow from operating activities 620 515
(155) (93) Cash flows used in investing activitie s(14) (403) (247)
79 134 Free Cash Flow 217 268
21 13 Change in the self-liquidating financial
receivables portfolio71 47
100 147 Free Cash Flow from Industrial
Activities(15 )288 315
Note: (14) Cash flow used in investing activities for the nine months ended September 30, 2017 excludes proceeds from exercising the Delta Topco option of Euro 8 million
(15) Free cash flow from industrial activities for the three and nine months ended September 30, 2018 includes Euro 1 million of quick refund to shareholders due to eligibility for withholding exemption.
Certain totals in the tables included in this document may not add due to rounding.
31 Q3 2018 Results November 5th, 2018
RECONCILIATIONS OF non-GAAP MEASURES: NET INDUSTRIAL DEBT
€M September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017
Net Industrial Debt (372) (472) (413) (473)
Funded portion of the self-liquidating
financial receivables portfolio762 731 666 685
Net Debt (1,134) (1,203) (1,079) (1,158)
Cash and cash equivalents 753 650 743 648
Total Debt (1,887) (1,853) (1,822) (1,806)
Certain totals in the tables included in this document may not add due to rounding.