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2017 Full Year Results Presentation 16 April 2018
2017 Full Year Results Presentation16 April 2018
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 judgment in 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 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.
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 contract or 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 this presentation. 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 will only 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 the Group.
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 risks and 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 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.
Participants
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Jesús Pascual, Chief Executive Officer
Cristina Blanco, Chief Financial Officer
Carlos Garcia-Mendoza, Capital Markets and IR
2017 highlights
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March – Early repayment of the €60.0m ADE facility with cash on balance sheet
April – Completion of the sale of the Seating business unit to Lear Corporation for approximately €280 million*
April – Issuance of €400 million in senior secured notes with a 7-year maturity and yearly fixed coupon of 3.25%
May – Redemption of existing €400 million 4.75% senior secured notes due 2021
July – Creation of the Advisory Board
450 projects in total and 118 in 2017
Grupo Antolín has been present in 80 car models that have come to the market in 2017
Grupo Antolín was present in the 4 best-selling cars of 2017
*On an enterprise value offer and debt-free and cash-free basis
2017 highlights (cont’d)
Sales of €5,037m, up 1.1% from 2016*
− Excluding FX impact, sales increased 3.2%
EBITDA of €466m, up 0.9% from 2016, margin of 9.25%
− Excluding FX impact, EBITDA increased 3.7%
EBIT of €291m, down 0.1% from 2016, margin of 5.8%*
Year end cash of €334m and €276m of available credit facilities, with year end net leverage ratio of 1.86x
and interest coverage ratio of 10.58x
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*Compared to the 2016 numbers as adjusted for the divestment of the seating business and change in allocation of costs
2,145 2,044
1,468 1,632
272 318
1,096 1,040
2 2
2016 2017
(€m
)
Overheads Doors Lighting Cockpits Others
2,775 2,705
1,712 1,738
408 48863 8124 26
2016 2017
(€m
)
Europe NAFTA APAC Mercosur Africa
4,982
Sales breakdown
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FX impact on sales totaled €104 million, on like-for-like basis sales
increased 3.2%
Strong performance across some business units
− Doors and Lighting driving sales growth
− Overheads impacted by Europe and US
− Cockpits reflects slowdown in some UK-produced models
Strong performance of APAC helped compensate weakness in
Europe
− NAFTA sales impacted by end of production and FX (on a
like-for-like FX basis sales increased 4%)
− China sales up +22.3% vs market production up +1.6%
in 2017**
*2016 data excludes Seating Business Unit and is adjusted for the change in allocations of costs
**LMC Global Automotive Production. Quarter 4, 2017
By business unit
(4.7)%
+16.9%
+11.2%
+19.5%
+1.5%
+29.3%
By geography
(2.6)%
5,0374,982
5,037
(5.1)%
+1.1%
+1.1%
*
*
178 187
201 185
75 81
(2)
510 8
2016 2017
(€m
)
Europe NAFTA APAC Mercosur Africa
232 191
225201
5358
7677
(124) (61)
2016 2017
(€m
)
Overheads Doors Lighting Cockpits Others
EBITDA breakdown
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By business unit**
By geography
Margin9.27% 9.25%
(10.7)%
(17.7)%
+9.9%
+1.8%
462
*2016 data excludes Seating Business Unit and is adjusted for the change in allocations of costs
**Group structure costs not allocated by Business Unit
462 466
466
5.3%
+8.0%
(8.2)%
+0.9%
(14.9)%
*
*
+0.9%
FX impact on EBITDA totaled €10 million, on like-for-like basis
EBITDA increased 3.0%
EBITDA impacted higher launch costs and FX:
− Overheads impacted by facilities in Austria, Germany and US
− Doors affected by ramp ups in USA and Germany
− Lighting benefitted from project launches in China and France
− Cockpits reflects cost cutting efforts in response to lower
sales in the UK
− Others reflects results and adjustments for consolidation
purposes at non-industrial subsidiaries
APAC continues to be a significant contributor to EBITDA growth,
with margin remaining above 16.5%
A €15 million provision for the estimated amount of the termination
benefits and other cost deriving from projected closure of German
facility
EBITDA Capex Taxes ΔWC* FCF
Q1-17 158 (60) (19) (52) 27
Q2-17 122 (71) (20) 8 39
Q3-17 85 (80) (19) (84) (98)
Q4-17 101 (122) (54) 72 (3)
Total 466 (333) (112) (56) (35)
% of sales 5.3%
RemarksCash flow for WC* (€m)
Capex (€m) Free cash flow
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6.6%
Total net working capital increased by €56m in 2017
− Tooling working capital increased by €81m
− Operating working capital declined by €25m
Out of the €112m corporate income tax, the sale of the Seating business
generated €37m in short term tax receivables, that will be received after
submitting the 2017 income tax filing
Continued capital expenditures in 2018 in all divisions to drive future growth
− Overheads - Spartanburg, Kecskemet, Ebergassing, Silao
− Doors - Shelby, Silesia, Hartlip, Barton
− Lighting - Besançon, Bamberg
− Cockpits – Changshu, Liban, Tianjin
183 208
81
125
2016 2017Tangible Intangible
(21)
(56)
2016 2017
* Does not include changes on other receivables related to taxation.
Free cash flow Excluding Seating Business Unit
Gross debt 31 December 2017
€1,227m
Net debt 31 December 2017
€893m
€800m senior secured notes
€378m senior financing
€4m soft loans with cost; €21m soft loans with no cost
€22m other facilities, of which €8m are credit lines
€2m accrued interests
Cash available of €334m
For covenant purposes, Net debt totalled €867m (excludes soft loans without
financial cost, includes cash using 12 month FX average).
€200m undrawn syndicated revolving credit facility, and €76m undrawn local
credit lines
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Balanced, long term capital structure
25 44 82
226
400 400
2018 2019 2020 2021 2022 2023 2024 2025 2026
Term Loan Soft loans Leasings SSN 22 Other loans ST Credit & Interests SSN 24
42 5289
233
405
2
402
1 0
(*)
* 2018 considers drawn credit facilities and accrued interest as of 31st December 2017
Covenants
1.86x Net Debt/Adjusted EBITDA 10.58x EBITDA/Financial expenses
Covenant: under 3.50x Covenant: over 4.00x
€ 466m
December 2017 EBITDA
2018 Outlook
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Revenue ≈ € 5.1 bn
EBITDA margin ≈ 8.75%
Capex ≈ 7.0% of revenues
Working Capital stable as a percentage of LTM sales
Leverage is expected to remain below 2.0x at year end
Dividend ≈ € 30m
Current trading
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LTM February 2017 LTM February 2018 % change
Revenue €5,026m €5,012m (0.3)%
EBITDA €470m €426m (9.4)%
Grupo Antolín has had significant amount of new product launches in Q1-18, with launch costs impacting EBITDA in
January-February YTD
6 new plants in development in 2018YTD with little or no revenues at this stage compared to 2 such plants in
2017YTD
In addition, 17 new project launches in 2018YTD vs 12 project launches in 2017YTD
The performance is expected and is in line with budget prepared in December
Q&A
