Company Presentation January 2016 - Managing high value added processes - CIE Automotive
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Company Presentation
Managing high value added processes
January 2016
1
DISCLAIMER
• This document has been prepared by CIE Automotive, S.A. ("CIE Automotive"), and is for information purposes only. No reliance may or should be placed for any
purposes whatsoever on the information contained in this document or on its completeness, accuracy or fairness. This document and the information contained herein
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indirectly, in whole or in part, or disclosed by any recipient, to any other person (whether within or outside such person's organisation or firm) or published in whole or
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• This document is an advertisement and not a prospectus for the purposes of applicable measures implementing EU Directive 2003/71/EC (such Directive, together
with any applicable implementing measures in the relevant home Member State under such Directive, the "Prospectus Directive") and as such does not constitute or
form part of any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of CIE
Automotive or any of its affiliates or subsidiaries, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any
contract or investment decision. Investors should not subscribe for or purchase any securities referred to in this advertisement except on the basis of the information
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• Certain financial and statistical information contained in this document is subject to rounding adjustments. Accordingly, any discrepancies between the totals and the
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• The information and opinions contained in this document are provided as at the date of the document and are subject to verification, completion and change without
notice. Neither CIE Automotive nor any of its parent or subsidiary undertakings, or the subsidiary undertakings of any such parent undertakings, or any of such person's
respective directors, officers, employees, agents, affiliates or advisers, undertakes any obligation to amend, correct or update this document or to provide the
recipient with access to any additional information that may arise in connection with it.
2
Table of contents
01 02 03
What is CIE Automotive Smart Innovation
Automotive? Project Project
04 05 06 07
Historical Update on Strategic CIE in Stock
Results results: 30th Thinking Exchange
September 2015 2013-2017
33
01
What is
CIE Automotive?
44
D E V E LO P I N G T WO P ROJ EC T S
Automotive Smart
components Innovation
UNIQUE business model Facing DIGITALIZATION in
developed SUCCESFULLY since productive activities, by applying
01
1996, with a solid TRACK RECORD knowledge and innovation to
and an IRR over 20% achieve EFFICIENCY
5
W H AT I S C I E AU TO M OT I V E ?
Mkt Cap: Employees Sales 2014: EBITDA 2014:
≈ 1,800 ≈ 25,000 2,210 Mio€ 291 Mio€
Mio€
Automotive project carried forward in the context of the
necessary consolidation of the TIER2 atomized sector.
Integration, sum and
management of processes in a Dominion project developed to challenge the status quo by
applying Smart Innovation.
sustainable, profitable and
Succesful M&A track record: almost 70 M&A transactions since
efficient way: 1996, with 20.000 people integrated in Europe, Nafta, South
America and Asia.
Strict acquisition discipline, requiring minimum ROI.
6
C I E C U LT U R E :
W H AT M A K E S T H E S E P R O J E C T S U N I Q U E ?
Our business
model:
01 / 02 /
Multilocation, our Commercial
own answer diversification as
a defense tool
03 / 04 / 05 /
Diversity, a Investment Decentralized
flexibility discipline and management, for
instrument return exigence value generation
7
Creation CIE
Acquisition
A N I N T EG R AT I O N A N D S U M STO RY. . . Joint venture
Divestiture
Biofuels
Joamar
CIE Maroc
Apolo Blue
Pemsa Ramos A.
CIE Metal
Unitools Pemsa Saltillo Nugar
GSB-TBK CIE Kataforesis
CIE Plasty
Norma SBC Cromado Matic Nanging Forg.
CIE Celaya Praga Louny
Inyectametal C.Vilanova CIE China
Gameko CIE Avtocom
Udalbide Plasfil Gave Century
Autometal Promoauto Jardim Sistemas
1997 2000 2002 2003 2005 2008 2010 2012
Creation
INSSEC
1996 1998 2001 Merger 2004 2006 2007 2009 2011 2013 2014
EGAÑA +
Galfor SBC Injection AUTOM Mahindra CIE Mahindra CIE
Egaña Stuka AFORASA CIE Desc Nugar CIE Celaya
IPO: - India
Orbelan - India
Mecauto investment
Pemsa Celaya Pemsa Ramos A. - Germany, UK - Italy
Mecasur Pemsa Celaya
Tarabusi vehicle for 1st Phase 2nd Phase
Autoforjas Recyde Autometal emerging
Autometal D. Avila markets Dissolution of the JV
Nakayone ACS México CiIE Avtocom
Bahía Durametal
ACS Group
Matricon Peer - LT Forge
Resigras
Bionor BCGSA
Divestment GSB Acero
NNE
Compiegne
Bilcan
Empresas Merger Near
tecnológicas INSSEC-CIE
información Beroa
1997 2000 2002 2003 2005 2008 2009 2012 2014
DOMINION
integration
1996 1999 2001 2004 2006 2007 2010 2013
SAP Mexico
Dominion: Soluciones y Dominion Chile
proyectos tecnológicos Mexel Business Excision:
Dominion: Negocio Dominion Services
Logístico Install and Solutions and 2011
Dominion TI
ECI Ibérica Dominion Perú 8
. . .W I T H G LO BA L FO OT P R I N T
NAFTA WEST EUROPE CENTRAL & EAST EUROPE
USA SPAIN FRANCE ITALY CZECH REP.
• Plastic Headquarters R&D • Machining • Stamping & Tube Forming ROMANIA
• Dominion R&D • Machining • Dominion • Machining • Aluminum
• Aluminum • Roof Systems
MEXICO • Forging • Plastic • Roof Systems
• Dominion PORTUGAL
R&D • Stamping & Tube • Cold Forming
R&D RUSSIA
• Aluminum Forming GERMANY • Plastic LITHUANIA • Aluminum & Machining
• Forging • Machining R&D • Dominion • Forging
• Stamping & Tube Forming • Plastic • Forging POLAND
• Machining • Roof Systems • Dominion UK SLOVAKIA • Dominion
• Plastic • Bionor • Forging • Dominion
• Roof Systems • Dominion DENMARK • Dominion
• Dominion •Dominion
ASIA & OCEANIA
CHINA BAHRAIN
• Forging • Dominion
• Stamping & Tube
Forming INDONESIA
• Machining • Dominion
SOUTH AMERICA AFRICA • Plastic
MOROCCO • Roof Systems OMAN
BRAZIL
• Plastic • Dominion
R&D
• Forging INDIA
SOUTH AFRICA R&D QATAR
• Stamping & Tube Forming • Dominion • Forging • Dominion
• Machining
• Plastic • Stamping
PANAMA • Machining SAUDI ARABIA
• Casting
• Dominion • Casting • Dominion
• Dominion
PERU COLOMBIA • Composites
•Dominion • Dominion UNITED ARAB
• Dominion
EMIRATES
ARGENTINA HONDURAS • Dominion
AUSTRALIA
• Dominion •Dominion
• Dominion
CHILE GUATEMALA VIETNAM
• Dominion •Bionor • Dominion
9
02
Automotive
Project
102 . 1 C I E C U LT U R E :
W H AT M A K E S A U T O M O T I V E P R O J E C T U N I Q U E ?
Automotive 01 / 02 /
business model: Multilocation, a Non usual
necessary commercial
geographical diversification
balance
03 / 04 / 05 /
Multi- Investment Decentralized
technological discipline and management, for
portfolio return exigence value generation
112 . 1 C I E C U LT U R E :
1 / M U LT I LO C AT I O N
AUTOMOTIVE SALES BY GEOGRAPHICAL AREA
(2014 Automotive sales, proforma including a complete year of all
Mahindra CIE companies)
Healthy geographical
balance in sales and Brazil
Nafta
13%
results 20%
Asia
≈ 80 production plants 13%
≈ 20,000 employees
7 R&D centers
4 main markets
> 6,000 references
Europe
54%
122 . 1 C I E C U LT U R E :
2 / CO M M E RC I A L D I V E RS I F I C AT I O N
AUTOMOTIVE SALES BY CLIENT
(2014 Automotive sales, proforma including a complete year of all Mahindra CIE companies) OTHERS
AUTOLIV
BMW
BOSCH
DAF
DELPHI DIESEL
HONDA
HYUNDAI
KS MAHLE
LEAR
MAGNA
MARUTI
SUZUKI
NTN
TKP
VALEO
ZF - SACHS
Limited dependence on single customer, enabling Balanced direct sales between OEM and Tier
price defense. 1 (circa 50% - 50%).
Limited dependence on single platform and car Solvent, assorted and continuous quotations
model. demand, which allows us investment choice.
132 . 1 C I E C U LT U R E :
3 / M U LT I T EC H N O LO G I C A L P O RT FO L I O
Process EU NAFTA Brazil India China
Offering the integration of a whole
POWERTRAIN
Forgings
range of different technologies in main
Automotive geographical markets… Aluminum
Castings
…Enabling the selection of the technology
that fulfills better customers needs. Machining
…Allowing CIE to focus investments on Stampings
winning technology anytime. Plastics
…And at the same time projecting CIE as a Roof System
Powertrain products worldwide leader.
142 . 1 C I E C U LT U R E :
3 / M U LT I T EC H N O LO G I C A L P O RT FO L I O
FORGING
PRODUCTS
Crankshaft CV- Joints Axle Shaft Axle Beam
ALUMINUM
PRODUCTS
Gearbox Housing Clutch Housing Ladder Frame Steering Housings Camshaft Cover
CASTING
PRODUCTS
Turbo Housing Crankshaft Differential Housing Brake Drum
MACHINING
PRODUCTS
Hubs, Outer Rings EPS component Differential Case Flange
Strategic products with higher than market average growth and profitability, in which CIE is focusing
152 . 1 C I E C U LT U R E :
3 / M U LT I T EC H N O LO G I C A L P O RT FO L I O
STAMPING &
TUBE FORMING
PRODUCTS
Body in White Steering Columns Brake Booster Seat Structure
PLASTIC
PRODUCTS
Emblems Ashtray Arm Rest Trim Parts
ROOF SYSTEM
PRODUCTS
Glazing Opening Roof Shading
MULTI-
TECHNOLOGY
PRODUCTS Oil Pan Diesel & Gasoline Injection Rails
Metal Forming, Aluminum, Plastic Forging and Machining & Tube Forming
Strategic products with higher than market average growth and profitability, in which CIE is focusing
162 . 1 C I E C U LT U R E :
3 / M U LT I T EC H N O LO G I C A L P O RT FO L I O
Product portfolio aligned with sector’s demand key drivers:
1 2 3 4 5 6
Globalization Engine Mid size Active and Systems Comfort
and reduction downsizing vehicles passive safety electrifications increase
of the amount hybridisation standards in all within the experience
of platforms regions vehicle
172 . 1 C I E C U LT U R E :
4 / I N V EST M E N T D I S C I P L I N E A N D
RETURN EXIGENCE
STANDARD STRICT EBITDA
FLEXIBLE INVESTMENT CONVERSION
MACHINERY DISCIPLINE INTO CASH
Valid to produce for different Investment analysis discipline, Optimization of productive
customers and platforms, always requiring high returns. capacity and investment
allowing HIGH SATURATION of control enables a higher than
productive capacity. market average conversion of
the EBITDA into Cash.
≈4% recurrent investment Capex ≥ 20% ROI. ≈50% conversion level target.
level that allows maintenance Operating Working Capital ≈0.
and 2-3% organic growth. M&A: EV/EBITDA ≤3 in 3 years.
182 . 1 C I E C U LT U R E :
5 / D EC E N T R A L I Z E D M A N AG E M E N T
GENERATE cash flow
Increase INDIRECT PEOPLE
PRODUCTIVITY
Whole team COMMITMENT
Fast and simple DECISION
MAKING
OBJECTIVE: DECENTRALIZED
management structure
VALUE
Universal, flexible, multitask
ENTREPRENEURS GENERATION
NETWORK SERVICES
support
LEAN HEADQUARTERS
structure
Variable and long-term
INCENTIVES
GLOCAL presence and
orders
192 . 2 E N V I RO M E N TA L A N D S O C I A L
G OV E R N A N C E
• Taking ownership of the 10 universally accepted principles in the United Nations
Global Codepacts strategic policy in the areas of human rights, labour and
environment.
• Reasserting our commitment to provide employees a safe and healthy working
environment by adopting necessary measures to prevent accidents and health
hazards.
• Corporate governance driven by principles of ethics and transparency.
• In collaboration with Deloitte, developing a multi-year ESG Strategic Plan that will
support our 2013-2017 business Strategic Plan, and that will allow us to define
and implement a Solid Risk Management Model, required by our dimension and
complexity.
• Always supported by adequate technological solutions which guarantee maximum
levels of efficiency and integrity.
202 . 2 E N V I RO M E N TA L A N D S O C I A L
G OV E R N A N C E
• Focusing firmly on the future and on sustainable development by integrating
commitment to environmental preservation in our management model through
ambitious certification standards.
• Balancing industrial activity with minimum environment impact: skilled knowledge
on production processes enables us consumption optimization and materials
reuse.
• Our recycling activity: used oils collection and production of biofuel from them.
2103
Smart
Innovation
Project
22W H AT I S D O M I N I O N ?
Sum of Services & Solutions for Selected
Sectors
SALES 3Q 2015: 28 COUNTRIES M U LT I S E R V I C E S
€373.5M >1,000 CLIENTS AND SOLUTIONS
23W H AT I S D O M I N I O N ?
Sum of 15 years of experience gaining know-how
TECH N OLOG Y-BASED I N TE R N ATI O N A L NEW PROJECTS NEW BUSINESS
EXPANSION LINES
2015
2014 Near and Bilcan
2011 Integration of Dominion incorporates
2006
Merger Dominion and Digital Solutions (Near)
2001 Projects
Expansion Merger INSSEC-CIE. Beroa and commercial
1998 First big international
Integration of Dominion services (Bilcan)
Birth of Dominion International projects in Health,
Solutions and Services
Strategic decision: expansion. Opening of Environment and
commitment to Technology Mexico branch Education
(Smart Innovation project)
2012-2013
1 acquisition in Spain
3 greenfields (Spain, Mexico and
2011 Peru)
1 acquisition
2008-2011
abroad (India) Dominion has successfully
1998-2000
4 acquisitions in
2002-2005 6 acquisitions integrated more than 30
4 acquisitions in abroad (Denmark,
Spain
Iberia
2006
Germany, Brazil and
businesses and developed JVs
2001 3 acquisitions with different partners in the
4 abroad (France, France)
1 acquisition in Spain abroad
2 abroad (Mexico and
Italy, UK and US)
(Germany and past
Germany) Australia) 24B U S I N E SS M O D E L > S M A RT I N N O VATI O N I N S E R V I C E S & S O L U TI O N S
MULTI-SERVICES SOLUTIONS & 360º PROJECTS
(~59% OF SALES 3Q 2015) (~41% OF SALES 3Q 2015)
Improve the internal processes and Offers Solutions & EPC Projects to
profitability of our clients by providing selected markets, where it has a profound
efficiently value-added multi-services expertise and knowledge
TMT (1)
Multi-sectorial activities, including Business
Process Outsourcing and Management
In-house and third parties technological
Activity fields
Use of its own and unique platforms aimed to solutions provider
Industry
process optimization
Top specialized and long term partner, with an
Business model based on applying best integrated coverage of the entire EPC process
Renewables practices across sectors
(1) Technology, Media and
Telecommunications
Smart Innovation
Applying data analytics, IT tools and permanent business model re-engineering to improve efficiency and profitability
25B U S I N E SS M O D E L > I N TE G R ATE D S E R V I C E S & S O L U TI O N S
Business process Product innovation
Innovation
Solutions & 360º Projects
Multi-Services
Objective: Providing efficiency
Objective: Improve clients’ A Smart Innovation
through complete outsourced
processes Know-how efficiency through business model…
specialized technology
Targeted contribution Tech-background ...to develop value
Targeted contribution added Services &
margin(1): >10%
margin(1): >15%
Expertise Solutions...
Higher recurrence
Backlog oriented
Cross-selling ...focused on
Low Capex needed selected sectors...
Low working capital
Successful Model managing requirements
...that provides
human and material resources
Providing technological efficiency to our
vitality clients’ productive
processes
CURRENT DOMINION’S SELECTED SECTORS
Healthcare(2) Utilities Transport&Logistics(2) Renewables
T&T Industry Public Administration(2)
26
(1) Defined as EBITDA before structural and central administrative costs. Contribution margins from January to September 2015: Multi-Services 9.5%; Solutions: 15.2%
(2) Included as subsectors of Telecom &Technology (T&T)BUSINESS MODEL > SERVICES & SOLUTIONS PORTFOLIO
DESCRIPTION EXAMPLES (not exhaustive)
Technology
Deployment of telecommunication and optical fiber
Design, construction, installation and maintenance of
networks for TMT clients in Spain, Brazil, Mexico,
telecommunication networks
etc.
&
Sales processes outsourcing mainly in the TMT sector
Multi-Services
Telecom
Sales process management of commercial network
converging and completing its services portfolio and logistics for Telco clients
Repairing services for minor damages in heat conditions
Industry
Comprehensive provider of highly specialized repair &
(ceramic welding) for blast furnaces
maintenance services for industrial furnaces.
Robot development for efficient industrial maintenance
Renew.
O&M services of wind farms
Monitoring and maintenance of renewable energy plants
O&M services of solar PV plants
EPC of several hospitals in Latam
Telecom & Technology
EPC projects mainly in the healthcare, civil protection and
environment sectors Development of technological platforms:
Solutions & 360º Projects
Emergency systems to prevent natural disasters
Niche technological projects such as low current networks, energy
Healthcare management platforms
efficiency, environmental
Commercialization of test & measurement solutions
In-house and third parties solutions oriented to monitorize and Mexico
improve client’s processes
Development of new online sales platform for a client in
the media sector
EPC of cooling plants
Industry
EPC projects of tall structures (budgeting, design & engineering,
Urban incinerators
material acquisitions, construction & installation, etc.)
EPC of thermosolar towers
Renew.
EPC projects of renewable energy (engineering, civil works, EPC of wind farms
monitoring systems, electrical wiring, commissioning, etc.) EPC of solar PV plants 27B U S I N E SS M O D E L > VA L U E C R E ATI O N O R I E N TE D
Similar culture as its parent company: CIE Automotive
1 2
iversified
igital Company
Development
imensions
for value
creation
3 4
ecentralized
Financial
Management
iscipline
28B U S I N E S S M O D E L > D I G I TA L D E V E L O P M E N T
Strong technological platforms to improve service delivery and efficiency
Dominion´s flexibility and permanent process innovation has positioned the Company as a trust worthy partner for its customers
This expertise allows Dominion to pursue continuous profitability improvement and look for growth opportunities in new segments and
countries
M U LT I - S E R V I C E S : SOLUTIONS & 360º PROJECTS:
E F F I C I E N C Y I N N O VATI O N P R O D U C T I N N O VATI O N
Client knowledge
Multi-
source Data
• Big Data o Direct collaboration in the design process
Technological knowledge
o Technological partners
Sensoring
Dominion’s • Monitoring and Digitalization
mgmt
platforms: o Internal R&D team
• Intelligence thanks to highly qualified
CCC(1)
technical team
Tickers / Resources allocation
Financing knowledge
• Workforce (installers, salesmen, etc.) Project management know-how
Resources o Whole process monitoring
• Tools, vehicles o Logistics
o Operation & Maintenance
Multi-service &
Solutions business
Quality excellence
model that enables Worldwide
and workplace
Flexibility (identical Multifunctional
requirements applied to teams
presence safety 29
subcontractors)
(1) CCC: Command, Control and CommunicationBUSINESS MODEL > DIVERSIFIED COMPANY
Diversified business model in four vectors
1 2
Global footprint in 28 countries… …with a diversified portfolio
Asia &
Solutions
Oceania
~41%
18%
Europe
America 55%
Services
27% ~59%
3 4
…with a wide range of clients… …and in several activity fields and sectors
Utilities
Industry Healthcare Renewables
+1,000 clients
Transport
Telecom &Logistics
Industry Public Admin.
30
Note: figures as percentage of sales from January to September 2015BUSINESS MODEL > GEOGRAPHICAL FOOTPRINT
Presence in 28 countries fostering cross-selling of Dominion’s current portfolio
Sales 2015YTD (1) Solid presence in 28 countries
Asia &
Oceania EUROPE & AFRICA
18%
FRANCE SPAIN
GERMANY UNITED KINGDOM
Europe ITALY DENMARK
America 55%
27% POLAND SLOVAKIA
PORTUGAL SOUTH AFRICA
Contribution margin
2015YTD (1)(2) AMERICA
USA
ARGENTINA
Asia & BRAZIL
Oceania
COLOMBIA
ASIA & OCEANIA
25% Europe
37% HONDURAS
MEXICO SAUDI ARABIA OMAN
PANAMA BAHRAIN INDIA
PERU QATAR INDONESIA
America CHILE
UNITED ARAB VIETNAM
38%
EMIRATES AUSTRALIA
Dominion is focusing its growth on fast growing markets with higher margins
31
(1) Sales & Contribution margin from January to September 2015
(2) Defined as EBITDA before structural and central administrative costsBUSINESS MODEL > RANGE OF CLIENTS
Diversified portfolio with over 1,000 clients, mostly market leaders in their respective sectors and
countries. No dependence on a single/several client (The virtue of being able to say “no”)
INDUSTRY & SERVICES FINANCE & INSURANCE
T R A N S P O RTAT I O N
UTILITIES TELCO
TECHNOLOGY
32BUSINESS MODEL > FINANCIAL DISCIPLINE
Investment discipline and demanding performance requirements
EBITA Conversion R&D Investment Strict M&A
into Cash Discipline Discipline
Tax shield, limited capex Strong R&D analysis and return Recurrent and thorough analysis
requirements, working capital and exigency of opportunities
WIP strict control
R&D projects developed under Strict screening and control on
efficiency schemes the integration of knowledge and
companies to our “strategic
carrier model”
Cash generation as the relevant
valuation criteria
> 60% average conversion level target for Minimum ≈ 20% ROCE requested M&A: EV/EBITDABUSINESS MODEL > DECENTRALIZED MANAGEMENT
Operational leverage supported by the current organization model
+
GLOBAL ORGANIZATIONAL MODEL WITH DIRECTORS NETWORK OPERATING CORPORATE SERVICES
BY BUSINESS LINES AND COUNTRIES
Entrepreneurs with global responsibility up to the Capacity to integrate new contribution margins with
contribution margin current structure
Increasing indirect people productivity and Lean Structure aimed to provide best service to
accountability business areas
Multifunctional workforce Central Admin. Expenditure < 1% sales
Flexibility
Multidisciplinary management with a common efficiency culture
34S T R AT E G Y & F I N A N C I A L S > P R O F I TA B L E T R A C K R E C O R D
Organic growth combined with acquisitions
€M 2010 2011 2012 2013 2014 3Q 2015
Sales 129.4 127.3 138.3 156.3 292.8 373.5 Organic & Inorganic
growth without diluting
margin
EBITDA 6.5 10.1 11.1 13.2 22.3 27.4
% Margin 5.0% 7.9% 8.0% 8.4% 7.6% 7.3%
EBITA 2 7.3 7.0 8.2 11.6 18.3
4.9%
% Margin 1.5% 5.7% 5.1% 5.2% 4.0%
NFD/EBITDA 2.5 1.5 2.0 2.0 3.2 Strict investments & working
capital control and
demanding performance
ROCE 14.5% 54.3% 37.2% 33.5% 19.5%
requirements
EBITDA: Net Operating Income + Depreciation
EBITA: Net Operating Income without PPA’s depreciation
ROCE: EBITA / Net assets (Fixed Assets + Net Working Capital – Goodwill not derived from Cash Outflows)
Note: Beroa is included in the consolidation perimeter from July 2014 and Dominion Commercial (Bilcan and Near) from January 2015
3504
Historical
Results
36HISTORICAL PERFORMANCE
∆ 27% ∆ 21%
2160 291
240
1696 234
1673 224
1563
1429 193
181
1261
157
1109
1016 133
959
116 116
782
670 91
571 80
481
56
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Adjusted Turnover (*) (€ Mio) EBITDA (**) (€ Mio)
(*) From 2006 to 2014, proforma value calculated by deducting turnover of diesel oil used for blending. CAGR (Compound Annual Growth Rate)
(**) EBITDA: Net Operating Income + Depreciation. 37HISTORICAL PERFORMANCE
172 81
150
145
141
61 61 60
112 54
51
104
90 42 41
74 35
59
53
42 20
34
13
11
16
3
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
EBIT (**) (€ Mio) Net Income for the year (€ Mio)
(**) EBIT: Net Operating Income. CAGR (Compound Annual Growth Rate)
38HISTORICAL PERFORMANCE
NFD/EBITDA (*) (x) NFD/Equity (*) (x)
4,6x
4,3x 720
2,1x
574 1,9x
535 538 1,7x 1,7x
507
3,0x 1,4x
2,6x 408 3,0x 2,5x
394 2,4x
2,6x 2,6x 1,4x 1,4x
2,0x 342
1,9x 1,0x
1,8x
1,1x
255
242 238 235 254 1,0x
1,5x 0,8x 0,8x
0,7x
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(*) Net Financial Debt = NFD = Debt with banks and other financial institutions – Cash and equivalents, EBITDA: Net Operating Income + Depreciation.
3905
Update on
results: 30th
September 2015
405.1
Group Results 3Q
2015
41S E P T E M B E R 2 0 1 5 C I E G RO U P R ES U LT S
(€ Mio)
30/09/2014 % 30/09/2015
Turnover 1,612.2 1,969.5
Adjusted Turnover (*) 1,571.9 +25% 1,969.5
EBITDA (**) 212.2 +30% 275.0
% EBITDA on Adjusted Turnover 13.5% 14.0%
EBIT (**) 131.8 +41% 185.6
% EBIT on Adjusted Turnover 8.4% 9.4%
Profit for the year 71.5 +68% 120.0
Net Income (**) 60.0 +63% 98.0
(*) Proforma value calculated by deducting turnover of diesel oil used for blending.
(**) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income, Net Income: Profit attributable to the company´s shareholders.
423 Q 2 0 1 5 C I E G RO U P R ES U LT S
(€ Mio)
3Q 2014 % 3Q 2015
Turnover 553.8 630.9
Adjusted Turnover (*) 542.2 +16% 630.9
EBITDA (**) 71.8 +23% 88.0
% EBITDA on Adjusted Turnover 13.3% 13.9%
EBIT (**) 44.8 +37% 61.4
% EBIT on Adjusted Turnover 8.3% 9.7%
Profit for the year 21.8 +71% 37.2
Net Income (**) 20.5 +42% 29.2
(*) Proforma value calculated by deducting turnover of diesel oil used for blending.
(**) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income, Net Income: Profit attributable to the company´s shareholders.
43S E P T E M B E R 2 0 1 5 C I E G RO U P R ES U LT S
Complete period with new consolidation perimeter of the Group
Once again, historical Record in Turnover, EBITDA and Net Income. Turnover increases by
25% comparing same period of previous year, EBITDA by 30% and Net Income reaches
€98Mio, 63% higher than September 2014
This growth is due partially to the increase of our consolidation perimeter, in addition to
an excellent evolution of margins in Europe and Nafta, where conversion exchange rate
evolution has also been favorable
Dominion results are consolidated in the high end of the forecast range reducing, even,
the effect of its usual seasonality
The operative part of profit and loss account is recurrent. In the non operative part there
are non recurrent effects that represent an additional Net Income of €4Mio
approximately
445.2
Automotive
45S E P T E M B E R 2 0 1 5 AU TO M OT I V E R ES U LT S
(€ Mio)
30/09/2014 % 30/09/2015
Turnover 1,436.6 1,595.9
Adjusted Turnover (*) 1,396.3 +14% 1,595.9
EBITDA (**) 196.7 +26% 247.6
% EBITDA on Adjusted Turnover 14.1% +1.4pp 15.5%
EBIT (**) 123.4 +35% 167.2
% EBIT on Adjusted Turnover 8.8% +1.7pp 10.5%
(*) Proforma value calculated by deducting turnover of diesel oil used for blending.
(**) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income.
The behavior of NAFTA market and the excellent level of operative profitability of the Mexican and European
plants, have contributed to compensating the Brazilian bad market situation and the lower margins of Mahindra
plants integrated in 2014
Highlighting the recover of EBIT margin, having reached double digit level
463 Q 2 0 1 5 AU TO M OT I V E R ES U LT S
(€ Mio)
3Q 2014 % 3Q 2015
Turnover 457.0 491.5
Adjusted Turnover (*) 445.3 +10% 491.5
EBITDA (**) 62.5 +25% 78.0
% EBITDA on Adjusted Turnover 14.0% +1.9pp 15.9%
EBIT (**) 39.4 +37% 54.1
% EBIT on Adjusted Turnover 8.8% +2.2pp 11.0%
(*) Proforma value calculated by deducting turnover of diesel oil used for blending.
(**) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income.
47S E P T E M B E R 2 0 1 5 AU TO M OT I V E G EO G R A P H I C A L
D I ST R I B U T I O N
Turnover EBITDA (*)
14% 10% 10% 6%
22% Brazil 18% Brazil
31%
NAFTA NAFTA
23%
Europe Europe
Mahindra Europe Mahindra Europe
Asia (India/China) Asia (India/China)
31% 35%
(*) EBITDA: Net Operating Income + Depreciation.
Evolution towards market diversification
Solid position in growing markets
48S E P T E M B E R 2 0 1 5 AU TO M OT I V E P R O F I TA B I L I T Y BY
R EG I O N
30/09/2014 30/09/2015
EBITDA: 16.7% EBITDA: 17.1% Margins, far above market average, continue growing.
Ex-Mahindra
Europe EBIT: 9.4% EBIT: 10.5% EBIT margin is in double digit level
EBITDA: 12.4%
Margins improvement supported specially by the evolution of
Mahindra EBITDA: 10.8%
Europe EBIT: 6.4% EBIT: 8.2% Metalcastello, integrated in December 2014. In its way to
achieving CIE Group standards
EBITDA: 16.7% EBITDA: 21.8% Sustainable margins on sales significantly higher than CIE
NAFTA
EBIT: 13.4% EBIT: 17.8% Group average, continue growing
EBITDA: 11.3% EBITDA: 10.3%
Brazil
EBIT: 5.0%
Margins severely penalized by the market´s bad situation
EBIT: 6.7%
India: Waiting for the new launches of our clients. Margins
affected by last integrations. Productive improvements in
Asia EBITDA: 11.9% EBITDA: 10.5%
process, with a lower than expected rhythm
(India/China) EBIT: 6.9% EBIT: 6.2%
China: Facing the challenge of new projects industrialization
49G ROW T H 2 0 1 4 - 2 0 1 5 ( % )
Market growth vs CIE organic growth (1)
4.3%
4.0%
3.4%
Market CIE 2.5%
7.7%
Europe Market CIE
2.8% China
Market CIE
NAFTA
6.0%
Brazil
Market CIE
Market CIE
-16,0%
-19.2%
-17.0% -10.0 %
-10.3%
India
Global Production +1.0%
Source: Motor vehicle production IHS September 2015 (growth % in units)
(1) Organic growth of Turnover including greenfields, same perimeter and same exchange rate
CIE +2.1%
50G ROW T H 2 0 1 4 - 2 0 1 5 ( % )
Market growth vs CIE organic and perimeter
growth (1) 8.8%
4.0%
3.4%
Market CIE 2.5%
7.7%
Europe Market CIE
2.8% China
Market CIE
70.3%
NAFTA
6.0%
Brazil
Market CIE
Market CIE
-19.2%
-17,0%
-17.0% -6,1 %
-10.0 %
-16,0% -0,2%
-16,6% India
Global Production +1.0%
Source: Motor vehicle production IHS September 2015 (growth % in units)
(1) Organic growth of Turnover including greenfields and growth of perimeter, same exchange rate
CIE +10.4% 51E X P EC T E D G ROW T H 2 0 1 5 - 2 0 1 8 ( M i o U n i t s )
22.0
2.5%
26.0
5.6%
20.5
17.9 22.0
2.9%
2015E 2018E
16.4 Europe 2015E 2018E
China
2015E 2018E
10.3%
5.1
NAFTA
3.8
3.8%
2.6
2.3
2015E 2018E
India
2015E 2018E
Brazil
Source: Motor vehicle production IHS September 2015
% Growth: CAGR (Compound Annual Growth Rate)
Global Production +3.5% 525.3
Dominion
53S E P T E M B E R 2 0 1 5 D O M I N I O N R ES U LT S
(€ Mio) 30/09/2014 % 30/09/2015
Turnover 175.6 +113% 373.5
EBITDA (*) 15.5 +77% 27.4
% EBITDA s/ cifra negocio
% EBITDA on Turnover 8.8% 7.3%
268,6
ajustada
EBIT (*) 8.4 +118% 18.3
% EBIT on Turnover 4.8% 4.9%
(*) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income.
Already consolidated all business acquired along the past year, Dominion’s results up to
September anticipate a year end closing in line with a guidance exceeding €500Mio Turnover and
EBITDA and EBIT of 8% and 6% respectively
543 Q 2 0 1 5 D O M I N I O N R ES U LT S
(€ Mio) 3Q 2014 % 3Q 2015
Turnover 96.8 +44% 139.4
EBITDA (*) 9.4 +6% 10.0
% EBITDA s/ cifra negocio
% EBITDA on Turnover 9.7% 7.2%
ajustada
EBIT (*) 5.5 +33% 7.3
% EBIT on Turnover 5.7% 5.2%
(*) EBITDA: Net Operating Income + Depreciation, EBIT: Net Operating Income .
Clear growth in Sales, EBITDA and EBIT
The decrease in margins results from the inclusion, in contrast to 2014, of BILCAN and NEAR
businesses, more affected by seasonality in the third quarter
55S E P T E M B E R 2 0 1 5 D O M I N I O N P RO F I TA B I L I T Y
BY B U S I N ES S U N I T
SOLUTIONS SERVICES
Turnover: €154.4Mio Turnover: €219.1Mio
Contribution Margin (*): 15.2% Contribution Margin (*): 9.5%
(*) Contribution Margin: EBITDA before structural and central administrative costs, EBITDA: Net Operating Income + Depreciation.
56S E P T E M B E R 2 0 1 5 D O M I N I O N G EO G R A P H I C A L A N D
BUSINESS UNITS DISTRIBUTION
TURNOVER CONTRIBUTION MARGIN
2015 2015 (*)
Asia & Oceania Europe
Asia & Oceania
18% 55%
25% SERVICES Europe
SERVICES
6%
37%
6% SOLUTIONS
SOLUTIONS SOLUTIONS 10%
17% 19%
SOLUTIONS
12%
SERVICES SERVICES
14% 27%
SERVICES
15% SERVICES
38%
SOLUTIONS
SOLUTIONS 24%
12%
America America
27% 38%
(*) Contribution Margin: EBITDA before structural and central administrative costs, EBITDA: Net Operating Income + Depreciation.
5706
Strategic Thinking
2013-2017
58ST R AT EG I C T H I N K I N G 2 0 1 3 - 2 0 1 7 :
R E A F F I R M I N G O U R S T R AT E G Y
In the Strategic Plan 2013-2017 we
analyzed CIE and its environment
Automotive industry is undergoing a fast transformation in order
to adapt itself to main trends of the Sector…
Increasing importance of Asian Market
Great concentration in few big players
Industry drivers: Consumption and emissions reduction / Security / Comfort
Digitalization process continues worldwide and this revolution...
Is challenging the Status Quo
Is affecting society
Is definitive and irreversible
59ST R AT EG I C T H I N K I N G 2 0 1 3 - 2 0 1 7 :
R E A F F I R M I N G O U R S T R AT E G Y
In the Strategic Plan 2013-2017 we set the following
overall goals:
500
3500
450
3000 400
2500 350
300
2000
250
1500 200
1000 150
100
500
50
0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
SALES evolution (€ Mio) EBITDA (*) evolution (€ Mio)
2017 2017
TARGET ≈ 3 € BIL TARGET ≈ 14%
(*) EBITDA: Net Operating Income + Depreciation. 60ST R AT EG I C T H I N K I N G 2 0 1 3 - 2 0 1 7 :
R E A F F I R M I N G O U R S T R AT E G Y
In the Strategic Plan 2013-2017 we set the following
overall goals:
10,0% 25,0%
8,0% 20,0%
6,0% 15,0%
4,0% 10,0%
2,0% 5,0%
0,0% 0,0%
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
% EBIT (*) evolution % RONA (*) evolution
2017 2017
TARGET >9% TARGET ≈20%
(* ) EBIT: Net Operating Income, RONA: RONA: EBIT / Net assets (Fixed Assets + Net Working Capital –Goodwill not associated to cash flows). 61ST R AT EG I C T H I N K I N G 2 0 1 3 - 2 0 1 7 :
R E A F F I R M I N G O U R S T R AT E G Y
Today these strategic objectives are…
…a reality
Strategic Plan aims for the profitable
growth of the Group, generating high value
for shareholder
62ST R AT EG I C CO M M I T M E N T 2 0 1 3 - 2 0 1 7 :
R E A F F I R M I N G O U R S T R AT E G Y
TURNOVER TURNOVER
≈ € 1,800mio ≈ € 3,000mio
NFD / NFD /
EBITDA 9%
EBIT ≈ 9%
(*)Maintenance investment ≈ € 500mio
Greenfields ≈ € 250mio
Inorganic growth ≈ € 250mio (mainly Mahindra CIE )
63ST R AT EG I C CO M M I T M E N T 2 0 1 3 - 2 0 1 7 :
R E A F F I R M I N G O U R S T R AT E G Y
SALES
≈ € 2,700mio
In 2015 we will be
NFD /
very close to our
2015
EBITDA ≈ 2.0x
CAPEX accumulated
2013-2015 (*)
commitment for
€ 700mio
2017
EBIT > 8%
(*) Maintenance investment ≈ € 300 mio
Greenfields ≈ € 150mio
Inorganic growth ≈ € 250mio (mainly Mahindra CIE) 64Key factors of the project for 2015 are:
Market share CIE standards Strategic products
increase additional achievement in launch in NAFTA
to European market Mahindra Europe with higher
growth margins
Productivity Improvement Smart Innovation
and market rhythm of our division
share increase in operations in Asia consolidation
Brazil
6507
CIE in Stock
Exchange
66CIE
C I E I N STO C K E XC H A N G E
CIE share price
performance vs Ibex 35
160%
140%
120%
100%
80%
60%
40%
20%
0%
-20%
CIE Automotive IBEX 35
€ 81mio
€ 60mio
0.63
Net Income (€ Mio) and
0.51
Earnings Per Share (€)
2013 2014 67CIE
C I E I N STO C K E XC H A N G E
CIE share price
Performance vs Ibex 35
250%
200%
150%
100%
50%
0%
-50%
IBEX 35 CIE Automotive
€98.0Mio
0.76
€60.0Mio
Net Income (€ Mio) and 0.47
Earnings per share (€)
30/09/2014 30/09/2015 68C I E I N STO C K E XC H A N G E
2016 2014 2013
2015
until January 29th
Market Cap (€ Mio) 1,729 1,993 1,453 950
Number of shares (Mio) 129 129 129 119
Last Price
% EBITDA of period
s/ cifra (euros)
negocio ajustada 13.40 15.45 11.26 8.00
Maximum Price of period (euros) 15.27 15.46 12.29 8.35
Minimum Price of period (euros) 12.75 10.65 7.21 5.00
Volume (thousand shares) 4,148 60,619 62,970 44,953
Effective (€ Mio) 57 814 600 277
Source: Madrid Stock Exchange
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