15
Classified as Public 2021 First Quarter Results Investors Presentation May 31 st , 2021
Classified as Public
2021 First Quarter Results
Investors PresentationMay 31st, 2021
Classified as Public
2
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. andits 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’spurposes.
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 makingan 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 orappropriate. 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 whichmay 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 theUnited 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 onin 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 notbe 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 anypersons. 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 presentationdoes 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 assumptionsconcerning 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 words“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 otherassumptions 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 such resultswill 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 byother 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 thesenon-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-GAAPfinancial 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. Thereare 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 accuracyor 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 andestimates. These internal analyses have not been verified by any independent sources and there can be no assurance that the assumptions or estimates are accurate.
Disclaimer
Classified as Public
3
Jesús PascualChief Executive Officer
2021 First Quarter ResultsParticipants
Cristina BlancoChief Financial Officer
Eduardo GarcíaHead of Capital Markets & IR
Grupo Antolin HQ, Burgos, Spain
Classified as Public
4
2021 First Quarter ResultsStrategic Highlights
• Premiere of smart cockpit demonstrator INSPIRE, that reveals the companystate-of-the-art technology related to lighting & HMI, active surfaces andelectronics. Showcased at the Shanghai Auto Show
• Two new virtual Concept Car: Grupo Antolin’s vision of the car interior of thefuture, as well as its latest innovative solutions. Exhibited at all-digital CES 2021
Focusing on becoming a leading provider of a wide range of innovative and technological solutions
Cutting-edge innovations that aim to provide technology and
intelligence inside the vehicle
Strengthening the customer base and product portfolio in China
• Focusing on developing electronic and lighting projects: JV with ShanghaiNAEN Auto Technology, a leading automotive Chinese electronics player
Working on new projects, which include advanced electronics,
functional lighting systems and active surfaces, to provide our clients
with higher value-added products
• New solution that reduces the weight of the plastic frames of the vehicle'spanoramic roof by 60%
Technological commitment to helping customers develop more
sustainable vehicles by reducing weight and emissions
Classified as Public
5
2021 First Quarter ResultsCurrent Backlog 2021-2024
Significant number of projects already signed and in development, which provides great sales visibility and reinforces business
expectations, resilience and continuity of global operations for the upcoming years across all business units and regions
New platforms providing additional business opportunities
• Recent and expected launches benefitting from global recovery in demand
• New models incorporating technological innovations
Current Backlog 2021-2024
€16.0bn
(over 90.0% of total expected sales)
EVs further penetrating the global auto industry across all segments
• Accelerating adoption in high-growth countries, like China
• Expected surge in EVs market share within the global auto market
Classified as Public
6
• During Q1 2021, Total Sales were €1,076 million, thus representing a 2.1% increase (6.6% increase on a like for like basis) vs the same period last year
❑ Component sales of €1,073 million, a rise of 2.2% (6.6% increase on a like for like basis) vs Q1 2020
❑ Tooling sales for the period stood at €2.5 million, slightly below the €3.2 million in the same period last year
• FX evolution eroded our global sales figure by around €47 million mainly due to the negative evolution of the USD, Mexican Peso and Brazilian realagainst the Euro
2021 First Quarter ResultsMain Economic Highlights
Sales
• During Q1 2021, EBITDA stood at €96.4 million, representing a 26.2% increase (32.3% increase on a like for like basis) vs the same period last year, whileEBITDA Margin rose to 9.0% vs 7.3% in Q1 2020 as a result of the positive impact of the different efficiency plans that we are actively implementing on aglobal basis to unleash synergies across business units and geographies, as well as due to the recovery in economic activity on a global basis
• Global EBITDA figure negatively impacted due to FX evolution by around €4.7 million
• EBITDA Margin for Q1 2021 of 9.0% significantly higher than in Q1 2019 Pre-Covid of 7.9% (+110 basis points improvement)
EBITDA
EBIT
• Finally, EBIT surged to €27.8 million vs €1.6 million in Q1 2020 after having increased by 1,637.5%, while EBIT Margin was 2.6% vs 0.2% in Q1 2020
Classified as Public
1,076
1,053
Q1 2021 Q1 2020
7
2021 First Quarter ResultsGlobal Sales evolution vs Q1 2020
+2.1% vs Q1 2020
+6.6% like for like
Consolidated saleseuro million
• During the First Quarter of the year, our global sales figures started to reflect the recovery following a period of unprecedented declines in both sales and production volumes on aglobal basis due to the impact of Covid19 pandemic
❑ From a geographical perspective, we witnessed a significant recovery particularly in Europe (+5.9%), Asia (+78.8%) and Africa (+30.6%), with these regions growing at a highpace vs Q1 2020, while on the other hand NAFTA (-16.4%) and Mercosur (-20.7%) were impacted by the severe decline in regional demand and production levels
❑ When looking at the main business segments in which we operate, recovery came from both our Lighting (+10.9%) and Cockpits (40.0%) BUs, as they benefitted from newtrends within the global auto industry and higher exposure to the China market, while however the Doors (-5.0%) and Headliners (-3.5%) segments struggled in a highlychallenging market environment and competitive landscape and higher exposure to NAFTA
❑ FX evolution eroded our global sales figure by around €47 million mainly due to the negative evolution of the USD, Mexican Peso and Brazilian real against the Euro
570
13
344
130
19
538
16
412
73
14
Europe Mercosur NAFTA Asia Pacific Africa
Q1 2021 Q1 2020
419396
80
180
1
441410
73
128
1
Doors Headliners Lighting Cockpits Other
Q1 2021 Q1 2020
€m €m
€m
Consolidated Sales by Region Consolidated Sales by Business Unit
+5.9%
-20.7%
-16.4%-10.7% like for like
+78.8%
+30.6%
-5.0%-3.5%
+10.9%
+40.0%
Classified as Public
96.476.4
Q1 2021 Q1 2020
8
9.0% margin
7.3% margin
2021 First Year ResultsEBITDA and EBITDA Margin evolution vs Q1 2020
Consolidated EBITDAeuro million
• Consolidated EBITDA recovered sharply during Q1 2021 following the deep recovery shown by both global sales and production volumes over the past months, as restrictions imposeddue to Covid19 pandemic were partially lifted worldwide
❑ EBITDA Margin improved by +170bps to 9.0% vs Q1 2020 thanks to the positive impact of the efficiency plans launched worldwide, which are expected to continue during theyear and that allowed us to rationalize our corporate structure and to adapt our global operations to customer needs and competitive landscape
❑ On a region basis, Europe, Asia and Africa posted the highest increases, as recovery in these markets accelerated during the period, while NAFTA and Mercosur lagged behind
❑ When looking at segments, EBITDA improved at all our business units, since synergies and efficiencies were unleashed across different areas, products and processes
+26.2% vs Q1 2020
+32.3 like for like
€m
52.5
32.9
21.715.0
-25.7
48.1
28.1
16.6
8.3
-24.7
Doors Headliners Lighting Cockpits Other
Q1 2021 Q1 2020
Consolidated EBITDA by Region Consolidated EBITDA by Business Unit
33.1
0.0
41.0
19.3
3.0
15.6
0.3
46.6
11.5
2.4
Europe Mercosur NAFTA Asia Pacific Africa
Q1 2021 Q1 2020
Note. EBITDA figures for Europe include adjustments related to Group Structure costs, as our global HQ is in Spain.
€m
€m
-96.4%
-11.8%-6.9% like for like
+68.9%
+19.8%
+111.6%
+9.2%
+17.2%
+30.4%
+81.1%
Classified as Public
• Q1 2021 CAPEX was €50m vs €48m in Q1 2020, with higher investments in tangible assets and slight reduction in intangibles
9
• Net Debt stood at €878m as of March 31st,2021 vs €818m as of December 31st ,2020
❑ For covenant purposes, Net Debt as of March 31st, 2021, was €852m. NFD/EBITDA Leverage ratio: 3.84x in Q1 2021 vs 3.92x 2020 YE
• Gross Debt as of March 31st, 2021, stood at €1,216m vs €1,219 as of December 31st, 2020
❑ Average maturity of debt:3.3 years. RCF of €200m still undrawn
• Total liquidity as of March 31st, 2021, was €599m vs €659m as of December 31st, 2020
❑ vs. short term maturities of €74m (including accrued interest). Cash available of €338m
• Amendment and Restatement Agreement signed in May 2021, with lenders to extend the maturity of the SFA for 3 years and incorporate sustainabilitycriteria to the RCF. Also, this agreement increased the average maturity of debt to 4.1 years
2021 First Quarter ResultsMain Financial Highlights
Debt and Liquidity
• NWC increased by €106m during Q1 2021 vs Q4 2020
• Decrease of Tooling working capital by €20m; Operating working capital increased by €126m (considering the lower usage of non-recourse factoring)
Working Capital
CAPEX
Classified as Public
10
• €635m senior secured notes
• €377m senior financing; SFA-EIB Leverage Ratio waived until Q3 2021
• €100m EIB facility
• €4m soft loans with cost; €13m soft loans with no cost
• €64m state-aid loans
• €14m other facilities, of which €8m are credit lines
• €9m accrued interests
• Average maturity of debt: 3.3 years
• NFD/EBITDA Leverage ratio: 3.84x in Q1 2021 vs 3.92x 2020 YE
2021 First Quarter ResultsDebt and Capital Structure
Gross Debt as of March 31st, 2021: €1,216m
• Cash and long-term undrawn committed credit lines of €599m vs. shortterm maturities of €74m (including accrued interest)
• Cash available of €338m
Liquidity position as of March 31st, 2021: €599m
20212022
20232024
20252026
20272027
2028
Term Loan Soft loans EIB Leasings SSN 26 Other loans ST Credit & Interests SSN 24
Net Debt as of March 31st, 2021: €878m
72
189236
412
20
265
157
0
• For covenant purposes, Net Debt totaled €852m (excludes soft loans andaids loans without financial cost, includes cash considering a 12-monthFX average)
• €200m undrawn RCF
• €62m undrawn local credit lines
• Non-recourse factoring lines: 38m used, €62m still available
• €40m new EIB loan (still undrawn) awarded recently to support ourglobal operations
Classified as Public
11
2021 First Quarter ResultsPro-Forma Debt and Capital Structure
In May 2021, the company signed an Amendment and Restatement Agreement with its lenders for its Senior Facilities Agreement
(syndicated loan + RCF) to extend its maturity for 3 years until March 2026
Pro-Forma Debt Structure after ARA
20212022
20232024
20252026
20272027
2028
Term Loan Soft loans EIB Leasings SSN 26 Other loans ST Credit & Interests SSN 24
62 5341
442
171
424
157
0
euro million • Maturity extended from March 2023 to March 2026
• Increased pro-forma average maturity of debt to 4.1 years
• No significant debt maturities until 2024, thus providing us with asignificant liquidity buffer to face potential Covid impacts in ourglobal operations
• Sustainability criteria incorporated to RCF to reinforce company’scommitment to European Green Deal and transition to a low-carbon industry
• Increased flexibility of financial structure to support further growthand current global operations
• Diverse and flexible set of financing sources
• Lenders supporting long-term strategy backed on expectedrecovery in both global demand and production within the autoindustry
Rationale and main highlights of the ARA
Classified as Public
12
• NWC increased by €106m during Q1 2021 vs Q4 2020
• Decrease of Tooling working capital by €20m
• Operating working capital increased by €126m (considering thelower usage of non-recourse factoring)
• Operating working capital as % of LTM sales was 9.9%
• Continued focus on working capital optimization
2021 First Quarter ResultsFree Cash Flow
Net Working Capital evolution CAPEX evolution
Q4 2020
Q1 2021
614 662
629 755
-901
-969
Payables Receivables Inventories
342 448▲106
▲126
▲48
▲68€m
TangibleIntangible
Total
25
24 50
20 28
48 2020
2021
• Q1 2021 CAPEX was €50m vs €48m in Q1 2020
• Increasing investments in tangible assets and slight reduction inintangibles
▲25% 14%▲3%
EBITDA CAPEX TAXESWorking Capital
Free Cash Flow
Working Capital
Factoring
Q1 2021 80 (50) 3 (96) (10) (73) Q2 2021 - - - - - -Q3 2021 - - - - - -Q4 2021 - - - - - -
Total 80 (50) 3 (96) (10) (73)
Classified as Public
13
2021 Year to Date April vs same period last year
€ millions YTD April 2021 YTD April 2020 % change
Total Sales 1,397.8 1,097.4 +27.4% (+31.9% like for like)
EBITDA 121.4(1) 41.9 +189.7% (+200.8% like for like)
EBITDA Margin 8.7% 3.8% +490 bps
❑ Total Sales posted a significant rise (+27.4%) vs the same period last year that resulted from improved market conditions and recovery at both global demand and production levels
❑ Profitability improved to a large extent thanks to the recovery shown by global sales combined with the positive effects of the efficiency plans and cost cutting initiatives launchedworldwide to unleash synergies across regions and business units.
❑ EBITDA Margin surged by +490 basis points when compared with the same period last year (8.7% vs 3.8%)
❑ EBITDA Margin for the period significantly higher than in YTD April 2019 Pre-Covid (8.7% vs 7.7%, +100 basis points improvement)
❑ NFD/EBITDA leverage ratio significantly improved and stood at 3.14x as of April 30th, 2021 (vs 3.84x as of March 31st, 2021)
❑ 2021 YTD April figures were still negatively impacted by certain aspects related to Covid19 restrictions that eventually led to projects’ delays and production halts in some regions
2021 First Quarter ResultsYTD April 2021 Trading Update
Note 1). EBITDA Q1 2021 figure does not include the costs associated to footprint optimization plans launched globally.
Classified as Public
14
2021 First Quarter Results2021 Full Year Guidance
❑ Total Sales: €4.3-4.4bn
❑ EBITDA Margin: 8.5-9% of total sales
❑ CAPEX: 5-5.5% of total sales
❑ NFD/EBITDA: <2.5x
❑ Working Capital: 8-10% of total sales
❑ Structural Cost Savings: €70-80m
2021 Preliminary Guidance Main Guidance Assumptions
❑ Total Sales to continue growing at a steady rate benefitting from positive market dynamics
❑ EBITDA margin expected to benefit from ongoing efficiency plans and cost-savings
❑ Financial strategy aiming at continue implementing a conservative financial management approach, reinforcingthe deleveraging path and improving liquidity and financing sources
❑ Global strategy focused on signing long-term strategic partnerships with attractive partners in order to build upour capabilities within high-growth segments and regions, such as lighting/HMI and Asia
❑ For the rest of the year, we expect that issues related but not limited to chips shortages and volatility in the pricesof certain raw materials might negatively impact the global auto industry, however we also believe that theseshould not last long provided the different actions undertaken by chips producers located in Asia –particularlyTaiwan, China and Japan-
We reiterate our guidance figures for 2021
Classified as Public
www.grupoantolin.com
+34 647 75 54 93
