9M 2024 Results
October 25, 2024
Olivier PROUST - CFO
Maria Beatrice DE MINICIS - Head of Planning and Control
AGENDA
- 9M 2024 Results
- A resilient business model and a Sustainable Transformation
- Market Outlook 2024
9M 2024: FINANCIAL HIGHLIGHTS
Revenues at €766.7m
Vs 803.9 in 9M 2023
EBITDA at € 96.7m
vs €84.4m in 9M 2023
EBIT
Net Income
FCF1 at € 19.8m
vs -€8.7m in 9M 2023
NFP (cash) at € 16.1m
vs € debt of 192.7m Sept '23
- -4.3%at constant exchange (-4.6% at current), mainly reflecting the market decline in Europe and China slowdown in Q3. Selling prices substantially stable
- Contribution margin € 224.8m vs € 216.6m in 9M 2023 (up from 26.9% to 29.3%)
- EBITDA excluding non-recurring: € 101.0 m vs € 89.5m in 9M 2023
- Fixed costs in value substantially stable vs 9M 2023, despite inflationary pressures on labor costs in certain geographical areas
- € 38m vs € 25.3m in 9M 2023 (excluding non-recurring € 42.3m vs € 30.5m) thanks to the recovery of Suspensions margin
Net income of operating activities (Suspensions and A&C at € 15.1m vs € 8.3m in 9M 2023). Net income including the Filter disposal effect at € 149.5m
Free Cash Flow positive at € 19.8m, up vs a negative of €8.7m in 9M 2023. Improvement thanks
to Suspensions turnaround and despite of lower use of factoring
Net debt end of September 2024 at € 16.1m vs a Net debt end September 2023 of € 192.7m and € 200.7m end of 2023. Extraordinary dividend of € 109.6m paid on July 24
1. | FCF and Net debt excluding IFRS 16 | 3 |
9M 2024 : SALES BY GEOGRAPHY
constant | reference | performance | weight | ||||
9M 2023 | 9M 2024 | change | exchange | market | vs market | based on | |
€m | rates | production | (bps) | 2024 | |||
Europe 27 | 462.9 | 426.2 | -7.9% | -7.9% | -4.9% | -300 | 55.6% |
North America | 169.4 | 162.0 | -4.4% | -3.4% | -0.8% | -260 | 21.1% |
South America | 83.5 | 85.3 | 2.2% | 0.8% | -0.6% | 140 | 11.1% |
Cina | 78.1 | 82.1 | 5.1% | 7.9% | 2.0% | 590 | 10.7% |
India | 13.1 | 13.1 | 0.4% | 1.9% | 4.5% | -260 | 1.7% |
Intercompany | (3.1) | (2.0) | |||||
Total | 803.9 | 766.7 | -4.6% | -4.3% | -1.6% | -270 | 100.0% |
- -4.3% at constant exchange mainly reflecting the decline in Europe (-7.9%), a result affected by a difficult market (-4.9%)
- China and South America overperforming the market
- India substantially stable
Source: Sogefi and S&P Global (IHS) data. Passenger cars and Light commercial vehicles only.
4
9M 2024 : SALES BY BUSINESS UNIT
constant | ||||
9M 2023 | 9M 2024 | change | exchange | |
€m | rates change | |||
Air&Cooling | 351.0 | 342.9 | -2.3% | -1.5% |
Suspensions | 453.0 | 424.8 | -6.2% | -6.3% |
Intercompany | (0.1) | (1.0) | ||
Total | 803.9 | 766.7 | -4.6% | -4.3% |
- Suspensions reflecting the difficult market in Europe, especially in heavy duty (-10.4%)
- Air and Cooling with better-than-market performance in Europe
5
OUR CUSTOMERS (% of sales)
9M 2023 | German Premium and Chinese OEMs gaining shares |
9M 2024 |
6
9M 2024 : EBIT PERFORMANCE BREAKDOWN VS 2023
5.5 % | |||
of sales | 5.0 % | ||
3.8 % | of sales | ||
3.1% | of sales | ||
of sales |
(*) Variances calculated at stable FX
(**) Exchange rate impact net of Argentinian inflation | 7 |
. | 9M 2024 : P&L | ||||
€m | 9M 2023 | % | 9M 2024 | % | |
REVENUES | 803.9 | 100.0% | 766.7 | 100.0% | |
CONTRIBUTION MARGIN | 216.6 | 26.9% | 224.8 | 29.3% | |
Gross Fixed Costs | 131.7 | 16.4% | 128.9 | 16.8% | |
Restructuring | 0.8 | 0.1% | 3.3 | 0.4% | |
Exchange Differences | 1.7 | 0.2% | 1.4 | 0.2% | |
EBITDA | 84.4 | 10.5% | 96.7 | 12.6% | |
EBITDA excluding non-recurring | 89.5 | 11.1% | 101.0 | 13.2% | |
D&A | 59.2 | 7.4% | 58.7 | 7.7% | |
Write downs | -0.2 | 0.0% | 0.0 | 0.0% | |
EBIT | 25.3 | 3.1% | 38.0 | 5.0% | |
EBIT excluding non-recurring | 30.5 | 3.8% | 42.3 | 5.5% | |
Financial results | 12.4 | 1.5% | 11.7 | 1.5% | |
Income Tax | 4.6 | 0.6% | 11.2 | 1.5% | |
Minority Interest | 2.3 | 0.3% | 2.0 | 0.3% | |
NET INCOME OF OPERATING | 8.3 | 1.0% | 15.1 | 2.0% | |
ACTIVITIES | |||||
Net income from discontinued | 39.8 | 136.4 | |||
operations | |||||
NET INCOME | 45.8 | 5.7% | 149.5 | 19.5% |
Higher contribution margin thanks to Squeeze
management
Fixed costs in value slightly down despite inflationary pressure on labor costs in certain geographical areas
Up 12.8%
Up 38.9%
Down despite of one-off charges connected to the early
repayment of some loans
Higher taxes reflecting progression in pre-tax results
Includes capital gain for the Filtration disposal (€ 124.5m), costs and taxes incurred to complete the transaction and the Filtration net profit up to end of8 May (€ 22.2m)
9M 2024 : FREE CASH FLOW NEW PERIMETER
€m | 2023 | 2024 | ||
FUNDS PROVIDED BY OPERATIONS | 69.2 | 65.1 | ||
Working Capital | -29.0 | -1.8 | ||
Capex (Tangible, Intangibles & IFRS15) | -47.7 | -45 | ||
Others | -1.2 | 1.6 | ||
FREE CASH FLOW (NET) EX DISPOSAL | (8.7) | 19.8 | Thanks to Suspensions turnround | |
After the dividends payment of € 136.7m and | ||||
NET FINANCIAL POSITION | 192.7 | 16.1 | € 316.6 cash-in of the Filtration Disposal | |
(including taxes and costs) | ||||
FACTORING | 63.9 | 52.0 | Lower use of factoring |
FCF and Net debt excluding IFRS 16 | 9 |
9M 2024: SUSPENSIONS
SALES (€m) | EBITDA (€m) excluding non-recurring |
EBITDA Margin | 7.8% | 10.1% |
- 9M 2024 down 6.3% at constant (-6.2% at current exchange) mainly affected by the difficult market in Europe especially in heavy duty
- Sales positive trend in China (+38.9% at constant exchange)
- In South America sales up 2.2% and in India substantially stable
- EBITDA growth in absolute value and in %
- 9M 2024 contribution margin up in % (from 25.7% to 28.9%) and in value (+5.3 % vs 9M 2023) thanks to squeeze management
- Margin improvements thanks to the actions
implemented in Europe (concentration of production | |
capacity after footprint optimization and Romania | |
EBITDA at breakeven) | 10 |