CIE Automotive, S.a. · BME:CIE
CIE Automotive — Investor Presentation (March 2011)
32 slides from CIE Automotive's investor presentation, Mar 16, 2011
Slide 1: Company Presentation
Company Presentation 16 March 2011
Slide 2: Disclaimer
Disclaimer This document includes or may include statements or estimates about intentions, expectations or forecasts of CIE AUTOMOTIVE or of its management body on the present date, regarding several issues such as the evolution of its business and the company’s financial results. These statements c
Slide 3: Index
Index 1. Introduction to CIE Automotive 2. 2010 Full year results a) Automotive b) Biofuels 3. Key success factors a) Differential business model b) Limited risk profile c) Clear commitment to internationalization d) Sound financial position e) Experienced and results-driven team f) Positive outlook
Slide 4: 1. Introduction to CIE Automotive
1. Introduction to CIE Automotive 4
Slide 5: What is CIE Automotive?
What is CIE Automotive? We are an international industrial group specialized in managing high value- added processes and fully committed to profitable growth Mkt Cap: 555 mill. €(1) Sales 2010: 1,429 mill. € Employees >12.000 EBITDA 2010: 193 mill. € Core Business Other Businesses Automotive Compone
Slide 6: After a good 2010, the starting point in 2011 is characterized by 3 key factors
After a good 2010, the starting point in 2011 is characterized by 3 key factors 3) Merger with 1) Return to INSSEC and historical 2) Autometal Dominion´ ´s levels of IPO ICT profitable business growth integration After this process, CIE Automotive Group comes out reinforced to face new challenges of
Slide 7: 1) Return to historical levels of profitable growth
1) Return to historical levels of profitable growth: 2002 – 2010 results evolution Sales evolution (mill. €)(1) EBITDA evolution (mill. €) 1.429 1.261 193 181 1.109 1.016 157 910 133 782 116 116 670 570 91 481 80 53 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2003 2004 2005 2006 2007 2008 2009
Slide 8: 2) IPO de Autometal
2) IPO de Autometal: Improves financial structure and allows Group development Key figures (31-12-2010 proforma IPO information post IPO) 31.482.300 shares issued (=25% of the total Capital increase € 184 mill.(1) post IPO) Price: 14 R$ Amount: 440.752.200 R$ (million euros) Pre IPO Post IPO Use of
Slide 9: 2) IPO de Autometal: stock evolution since IPO
2) IPO de Autometal: Improves financial structure and allows Group development Autometal´s stock evolution since IPO 3,8 17 15,95 15,97 15,80 16 16 15 ≈ 14,85 15,42 15,20 15,20 15,30 15,45 +20,5% 0,7 14,48 14,45 0,7 15 14,00 14,00 14,05 14,00 14,00 13,90 14 0,5 0,5 13,56 0,5 0,4 14 13,25 13,25 0,4 1
Slide 10: 3) Merger with INSSEC and Dominion integration
3) Merger with 3) Merger INSSEC with INSSECand Dominion and Dominion integration: integration: A Anew newshareholder shareholderstructure structure for for aa new new growth growthperiod period Pre-merger Shareholding Post-merger Shareholding Stable LT Shareholders Free float Industrial LT group Fre
Slide 11: 2. Full year results
~\ ClE Automotive 2. Full year results 11
Slide 12: CIE Automotive Group 2010 Results
CIE Automotive Group 2010 Results… (million euros) 31 Marzo 31/12/09 3131/12/10 Marzo (Millones de euros) 2009 2010 Turnover 1.149,0 1.591,1 Adjusted Turnover* 1.016,0 1.429,3 +41% EBITDA 116,4 193,3 +66% % EBITDA on Adjusted Turnover 11,5% 13,5% +2pp EBIT 52,7 112,1 x2 EBT 26,6 65,4 x2,5 Net Income
Slide 13: ...have allowed a solid financial position
...have allowed a solid financial position . NFD Evolution (31-12-2010 proforma post Autometal´s IPO) Net Financial Debt (mill. €) NFD/EBITDA 535 538 507 4,6x 408 3,0x 342 2,6x 2,6x 1,8x 2007 2008 2009 2010 NFD = Debt to banks and other financial institutions – cash and equivalents. CIE has set as o
Slide 14: a) Automotive: More than a year of excellent results
3. 2010 Full year results a) Automotive: More than a year of excellent results supported in emerging 14
Slide 15: Automotive Results 2010
Automotive Results 2010 31 Marzo (million euros) (Millones de euros) 31/12/09 31/12/10 2009 Turnover 969,0 1.322,7 +37% EBITDA 120,2 191,4 +59% % EBITDA on Turnover 12,4% 14,5% +2,1pp EBIT 58,4 113,1 ~ x2 % EBIT on Turnover 6,0% 8,6% +2,6pp Note: EBITDA: Net Operating Income + Depreciation; EBIT: Ne
Slide 16: An international and highly diversified company
An international and highly diversified company Sales by geographic area - origin Sales by geographic area - final (2010; automotive) destination (2010; automotive) Mature Markets China China ~40% 1% 1% Spain 5% Mexico NAFTA(1) 20% Western 20% Europe 41% Rest of Brazil Brazil Europe 30% East 30% 44%
Slide 17: Automotive sales and EBITDA evolution
Automotive sales and EBITDA evolution Monthly Sales (mill. €) Monthly EBITDA (mill. €) 19 18 19 % on Sales 16 126 15 117 121 13 15,4% 15,5% 15,4% 15,4% 104 106 95 14,5% 14,0% 80 9 67 8 11% 11,1% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Million Euros Notes: - Mo
Slide 18: b) Biofuels: we have achieved operative break-even
3. 2010 Full year results b) Biofuels: we have achieved operative break- even 18
Slide 19: Biofuels Results 2010
Biofuels Results 2010 31 Marzo 31 Marzo (million euros) (Millones de euros) 2009 31/12/09 2010 31/12/10 Turnover 180,0 268,4 +49% Adjusted Turnover * 47,0 106,7 +127% EBITDA (3,8) 1,9 EBIT (5,8) (1,0) Notes: (*) Proforma value calculated by deducting turnover of diesel oil used for blending EBITDA:
Slide 20: 3. Key success factors
~\ ClE Automotive 3. Key succes factors 20
Slide 21: Key success factors
Key success factors Differential business model Positive Limited risk outlook & sector profile dynamics Clear Experienced commitment to and contrasted internationalization management team Sound financial position 21
Slide 22: Clear positioning in the Automotive sector
Clear positioning in the Automotive . sector Concentration Sector Players level Supply VEHICLES OEM Original Equipment Very high Manufacturers Sell to final consumer Supply FUNCTIONS Tier 1 component High suppliers Sell to OEM Supply COMPONENTS Tier 2 component AND SUBASSEMBLIES suppliers Low Sell t
Slide 23: Within the segment of Tier 2 suppliers, CIE has a clearly differentiated model
Within the segment of Tier 2 suppliers, . CIE has a clearly differentiated model Tier 2 Suppliers CIE Automotive Small size Significant size and financial strength Multitechnology (6 basic technologies: aluminum, Monotechnology forging, stamping, casting, machining and plastic) Flexibility, machiner
Slide 24: CIE has a limited risk profile thanks to diversification of its client base
CIE has a limited risk profile thanks to diversification of its client base … Sales by customer(2010) Sector´s weight of top 5 customers Ventas por cliente (2009) CIE JTEKT 1% NEXTEER 1% DELPHI 1% SCHAEFFLER 1% Delphi AUTOLIV GKN 1% NSK 1% 1% LEAR 1% BOSCH 1% Visteon AP-KAYABA 1% DAF 1% ZF 1% VISTEO
Slide 25: Flexibility in technology use and labour costs transfer capacity
…and to its flexibility in technology use and labour . costs transfer capacity Multitechnology flexibility Location flexibility CIE is one of the few Tier 2 suppliers CIE can access the main production centres that offers different technologies integration worldwide LABOUR COST (€/hour) 35,0 Technol
Slide 26: CIE, an international company
CIE, an international. company… Globalización USA FRANCE RUSSIA LITHUANIA ROMANIA CZECH REP. CIE USA CIE Compiegne CIE Avtokom (Kaluga) CIE LT Forge CIE Matricon CIE Plasty Cz RS Automotive CIE Avtokom (Samara) RS Automotive CIE Unitools Press Cz MEXICO CIE Metal Cz CIE Automotive CIE Kataforesis CI
Slide 27: Two expansion strategies in Latin America and the East
…enhanced by two expansion strategies in Latin Haga clic para modificar America and toelthe . estilo Eastde título del patrón CIE´s Expansion Strategies Growth in Latin America America´s business grouped under Autometal due to Mercosur and NAFTA´s growth potential (70% in 5 years(1)) Brasil, market
Slide 28: CIE faces 2011 from a clearly reinforced financial position
CIE faces 2011 from a clearly reinforced financial . position NFD Evolution (31-12-2010 proforma post Autometal´s IPO) Net Financial Debt (mill. €) NFD/EBITDA 535 538 507 4,6x 408 3,0x 342 2,6x 2,6x 1,8x 2007 2008 2009 2010 NFD = Debt to banks and other financial institutions – cash and equivalents.
Slide 29: Experienced, committed and results-driven team
Experienced, committed and results-driven team . Decentralized management model, results-driven, with high plant-level responsibility and Group-level shared services Team Result-driven culture Professional Key People Antón Pradera Experience Cash flow generation is the key metric in management decis
Slide 30: The automotive market is coming back to growth in 2010–2014
The automotive market is coming back to growth in . 2010 – 2014… Annual vehicle production Europe (Mill. Units) NAFTA (Mill. Units) Brazil (Mill. Units) World (Mill. Units) +15% +39% +8% +25% 4,0 90,3 21,7 22,0 15,5 15,1 18,7 19,0 75,2 12,9 3,3 68,6 71,6 3,2 16,3 11,9 2,9 2,6 57,4 8,6 2007 2009 2010
Slide 31: CIE intends to continue with its strategy of expansion and growth
…period during which CIE intends to continue with its strategy of expansion and growth CIE´s strategic objectives for the following years Increase presence in emerging markets (Brazil, Mexico, East Europe, Asia) Seize opportunities of acquiring companies in the sector Continue with the historical gr
Slide 32: Our commitments
Our commitments… We anticipate the previous commitment and we expect to double 2009 EBITDA at least one year earlier (in 2012 instead of in 2013) Additionally, we expect to double 2010 net result in the following three years 32