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Quarter 1 2020 Results Presentation 28 May 2020
Quarter 1 2020Results Presentation28 May 2020
Disclaimer
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 presentationis 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 itsofficers, 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 andagrees 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 isnot 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 theinformation 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, shouldform 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 otherwiseparticipate 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 inmatters 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 aperson 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 reflectvarious 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 forwardlooking statements contain the works “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. Such forward-looking statements reflect current expectationsbased 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 resultsand 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 statementsto 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 measurespresented 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 arecautioned 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 hasgenerally been obtained from studies conducted by third-party sources. There are limitations with respect to the availability, accuracy, completeness and comparability of such data. TheGroup has not independently verified such data and can provide no assurance of its accuracy or completeness. Certain statements in this presentation regarding the market andcompetitive 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 anyindependent sources and 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
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Covid19 Update
Progressively restarting production in factories, always in compliance with prevention and safety measures
The open factories are strictly applying the COVID-19 Prevention Protocol, which includes a set of recommendations and procedures that must be followed across all facilities
Producing and donating protective material, both for internal use and for hospitals and retirement homes
Continued focus on employee safety
3
Covid19 Update
Gradual ramp-up process following customer decisions
Since early May, successful phased restart of manufacturing in some countries.
Antolin production footprint as of 25 May 2020: C. 80% worldwide facilities open
100% of China facilities open, producing at pre-Covid19 levels
C. 92% of European facilities open with limited production
C. 57% of NAFTA facilities open (83% in USA) with limited production
Gradual restart
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Total cash of € 460m € 200m RCF fully drawn, cash held with relationship banks
Restricted cash of € 67m, principally at Chinese JVs
Available and undrawn credit lines of € 52m Credit lines in total of €28m in China renewed to April 2021
Available non-recourse factoring lines of c. € 100m
Q2-Q4 2020 maturities of € 25m*: € 17m of senior financing (€8.4m in June and December)
€ 1m in short term credit lines
€ 3m in soft loans to Spanish government agencies
€ 3m in other loans to Spanish entities
€ 2m interest payments
€ 0.4m leasing
Strong Liquidity position on 30 April 2020
*Excludes € 200m of drawn Revolving Credit Facility due October 2020 and renewable until June 2023
Covid19 Update
Antolin’s syndicated lenders continued their support by approving a waiver request comprising:
Suspension of the existing maintenance covenants, until (and including) June 30, 2021 (the “Interim Period”)
If additional debt funding is required and /or the Company has access to state aid financings:
Inclusion of € 100m general basket of secured debt, to align with 2024 and 2026 SSNs
Inclusion of € 100m additional unsecured debt basket
Inclusion of new undertaking to comply with minimum liquidity requirements on a monthly basis and restriction of dividend distributions during the Interim Period
SFA Waiver verbally approved on 27 May 2020
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Q1 2020 Highlights
Total revenue of € 1.1bn, down 17.0%
Component sales of € 1.1bn, down 16.2%, versus –23.4%* industry production decline
Tooling sales of € 2m, down 85.5%
EBITDA of € 77m, down 23.3%, margin of 7.3%
EBIT of € 2m down 93.5%, margin of 0.2% (vs. 2.4% in Q1 2019)
*Source: LMC Global Automotive Production. 20 May 2020
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Q1 2020 Sales Breakdown
Sales declines across all Business Units were inferior to overall market declines of-23.4%*, except for Cockpits
Antolin China quarterly sales down 31% vs 46%* market decline. Antolin Chinasales represent 5.5% of consolidated Q1 2020 sales
Q1 2019Q1 2020
484415
534443
80 67
169 128
Headliners Doors Lighting Cockpits Others
1,270 1,054
EURm
- 14%
- 17.0%
- 17%
- 16%
- 24%
Q1 2019Q1 2020
648534
489419
10271
21 16
Europe NAFTA APAC Mercosur Africa
EURm
- 23%
- 18%
- 31%
- 14%
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*Source: LMC Global Automotive Production. 20 May 2020
Q1 2020 EBITDA Breakdown
EBITDA drop reflects impact of sales declines, especiallysudden and significant in the second half of March 2020
Headliners improvements due to turnaround of USAactivities
Doors impacted by overall sales declines and Spanishand Mexican ends of production
Lighting improvements in Romania and Germany couldnot overcome impacts in China and France
Cockpits saw declines in Germany due to stoppages
Non-industrial costs reflect cost-cutting initiativesstarted in mid-March and efficiency measures put inplace in early 2020
Q1 2019
Q1 2020
2030
7850
1917
128
-29
-28
Headliners Doors Lighting Cockpits Non Industrial
100
EURm
Margin overTotal Revenues
- 36%
-5%
- 23.3%
+ 45%
- 12%
- 35%
77
7.9% 7.3%
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Q1 2020 Financial Highlights
Cash available of € 380m
Available revolving credit facilities of € 151m
RCF fully drawn on 27 April
Cash and long term undrawn committed credit lines of €532m vs short term maturities of € 51m* (€ 18m in credit lines, renewed to 2021 as of 15/4/20)
LTM EBITDA of € 337m (excluding IFRS 16) and Net Debt to EBITDA of 2.62x
Net debt average maturity of 3.9 years
No factoring in Q1 2020, c. € 100m of non-recourse factoring lines available
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*Excludes € 100m of drawn Revolving Credit Facility due October 2020 and renewable until June 2023
20202021
20222023
20242025
20262027
2028Term Loan Soft loans EIB Leasings SSN 26 Other loans ST Credit & Interests SSN 24
Balanced, long term capital structure
Net debt 31 March 2020€904m
Covenants
Gross debt 31 March 2020€1,285m €635m senior secured notes
€394m senior financing
€100m EIB facility
€100m Revolving Credit Facility renewable to June ‘23
€4m soft loans with cost; €16m soft loans with no cost
€25m other facilities, of which €18m are credit lines
€10m accrued interests
Cash available of €380m
For covenant purposes, Net debt totaled € 881 million (excludessoft loans without financial cost, includes cash using 12-monthFX average).
€100m undrawn syndicated revolving credit facility, and €51mundrawn local credit lines
2.62x Net Debt/ EBITDA 11.46x EBITDA/Financial expenses Covenant: under 3.50x Covenant: over 4.00x
€ 337mMar 2020 LTM EBITDA Excl. IFRS 16 51*
403
15
157
170
327*
265
31
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*Excludes € 100m of drawn Revolving Credit Facility due October 2020 and renewable until June 2023, reflected as 2023 maturity
Dec 2019
March 2020
796841
758679
-1025-1048
PayablesReceivablesInventories
▲ 23
▼56
▼78
▲45
529472
Free Cash Flow
Net working capital improved € 56m in Q1 2020: Continued focus on working capital optimization
Tooling working capital decreased by € 26m
Tooling working capital as % of LTM sales improved to 3.3% from 3.7%
Operating working capital decreased by € 30m
Operating working capital as % of LTM sales was stable
Commitment to maintaining year-end operating working capital in line withhistoric averages of c. 10% component revenue
Remaining FCF elements for the quarter ending 31 March 2020: EBITDA excluding IFRS 16 € 59m
Capex € 48m (17% decrease vs Q1 2019)
Cash tax payments € 8m
RemarksWorking capital% of LTM Component
Revenues 7.2% 6.8%
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Dec 2018 Adj. **
March 2019
918959
749965
720
-1135-1242
PayablesFactored ReceivablesReceivablesInventories
▲ 107
▲ 41
▲144
Q&A
*Source: LMC Global Automotive Production. March 2020
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