Company presentation September 2021 - Managing high value-added processes - CIE Automotive
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Company presentation September 2021 Managing high value-added processes 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 are strictly confidential and are being shown to you solely for your
information. The information may not be copied, distributed, reproduced or passed on, directly or indirectly, in whole or in part, or disclosed
by any recipient, to any other person (whether within or outside such person's organization or firm) or published in whole or in part, for any
purpose or under any circumstances.
• 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
contained in any prospectus eventually published in accordance with the Prospectus Directive. The information and opinions contained in
this document are provided as at the date of the document and are subject to change.
• This document is not an offer of securities for sale in the United States, Australia, Canada or Japan. The information contained herein does
not constitute an offer of securities for sale in the United States, Australia, Canada or Japan. Securities may not be offered or sold in the
United States unless they are registered or are exempt from registration. No money, securities or other consideration is being solicited and,
if sent in response to the information contained herein, will not be accepted. Copies of this document are not being, and should not be,
distributed or sent into the United States. This document does not constitute an offer of securities to the public in the United Kingdom or in
any other jurisdiction. The distribution of this document in other jurisdictions may also be restricted by law and persons into whose
possession this document comes should inform themselves about and observe any such restrictions.
• Certain financial and statistical information contained in this document is subject to rounding adjustments. Accordingly, any discrepancies
between the totals and the sums of the amounts listed are due to rounding. Certain management financial measures included in this
document have not been subject to a financial audit.
• 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.
• CIE Automotive’s management uses recurrently and in a consistent way during business management certain Alternative Performance
Measures, APM which include terms about results, balance sheet and cash flow. CIE Automotive understands that those APMs are helpful to
explain its activity evolution, so they are presented, defined and reconciled with financial statements in this presentation’s Appendix.
2
Index 1 What is CIE Automotive? 2 CIE Automotive Culture 3 Update on results 4 CIE Automotive in stock exchange 3
1 What is CIE Automotive? 1.1 History 1.2 Globalization 1.3 Sustained and profitable growth 1.4 CIE Automotive at a glance 4
1.1. History
25 years successfully integrating companies
Greenfield
Acquisition
Merger CORP. INDUSTRIAL Joint venture
EGAÑA +AFORASA = CIE
CIE Legazpi
CIE Unitools CIE Celaya
Creation
CIE Norma CIE Plasfil
INSSEC CIE Inyectametal
CIE Autometal Diadema CIE Autometal Camaçari CIE Autometal SBC
CIE Udalbide
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
CIE Egaña CIE Galfor CIE Mecauto CIE Plasty CIE Metal CZ
CIE Orbelan CIE Mecasur CIE Gameko CIE Jardim
CIE C. Vilanova CIE Taubaté Sistemas
Merger
INSSEC-CIE
2012 2011 2010 2009 2008 2007 2006
CIE Nanging Forg. CIE Stratis CIE Pemsa Celaya CIE Pemsa Saltillo CIE Nugar CIE Pemsa Celaya
CIE USA CIE Matic CIE Praga Louny CIE Recyde CIE Autoforjas
CIE Dias D'Ávila CIE Nakayone CIE Durametal
ACS CIE LT Forge CIE Matricon
2013 MCIE 1st Phase CIE Maroc CIE Compiègne CIE Automotive
Parts Shanghai
2014 2015 2016 2017 2018 2019 2020 2021
MCIE 2nd Phase CIE Autometal CIE Amaya CIE Newcor CIE Nugar Puebla AEL CIE Somaschini
Pernambuco Bill Forge CIE Autometal Minas CIE Mapremex CIE Plásticos México
CIE Rus ACS Wuhan
CIE Forjas de Celaya CIE Golde
5
1.2. Globalization
25 years expanding our geographical footprint
4 Continents.
16 Countries.
West Europe 110 Production sites.
10 R&D centers.
SPAIN FRANCE GERMANY
Headquarters R&D R&D
R&D Machining Forging
North America Aluminium Roof Systems Roof Systems Central East Europe
Forging
USA Stamping ITALY PORTUGAL
South America CZECH ROMANIA
R&D Plastic Machining R&D
REPUBLIC Aluminium
Plastic Machining Plastic
BRAZIL Stamping Roof Systems
Machining Roof Systems
R&D Machining
Roof Systems Plastic SLOVAKIA
Forging
Stamping Africa Cold Forging R&D
MEXICO Machining
Aluminium
R&D MOROCCO LITHUANIA Roof Systems
Plastic
Aluminium Plastic Forging
Machining
Forging RUSSIA
Casting
Stamping Aluminium
Plastic
Machining
Roof Systems Asia
CHINA INDIA
R&D R&D
Forging Aluminium
Stamping Forging
Machining Stamping
Roof Systems Machining
Casting
Composites
6
1.3. Sustained and profitable growth
25 years of profitable growth
Turnover (m€) EBITDA (m€)
CAGR 2002-2019: 12% CAGR 2002-2019: 15%
3.461 17% 17%
700 17% 16% 17% 18%
16% 16%
3.029 15% 15% 15% 15% 15% 16% 594 15%
2.843 2.883 14% 14% 14% 16%
600
529
12% 14%
471
2.221 500
11% 431
2.051
12%
1.811 400 358 10%
320
1.396 1.479
276
1.308
8%
1.158 1.322 300
1.057 222 207 223
893 969 192 191 6%
782 156
670 200
131
570 116 120
481 91
4%
80
100 53 2%
0 0%
2020
2004
2005
2002
2003
2006
2008
2009
2007
2018
2010
2011
2012
2013
2015
2016
2014
2017
2019
2020
2003
2002
2006
2004
2005
2007
2008
2009
2010
2012
2017
2011
2013
2014
2015
2016
2019
2018
EBIT (m€) 350
Net Income (m€) 8 8% 9%
CAGR
600 2002-2019: 21% 13% 14% 300 CAGR 2002-2019: 31% 7%
7%
287 8%
12% 12%
11% 12% 6% 243 6%
7%
500 10%
10%
250
10% 9% 9% 427
10% 5% 5% 5%
6%
399 10% 4% 5% 202
8% 4% 4% 185
400 9% 8%
339
200
4% 5%
6% 8% 151
8% 6% 6% 283 3% 3%
300 249 150
4%
6% 2% 118
215
3%
200 172 1%
3% 152 100
78
117 132 142 4% 60 59
112 51 54 56 2%
90 1% 42 41
100 59 73 59 35
2%
50
34 42 20
13 11
1%
16 3
0 0% 0 0%
2020
2002
2006
2008
2003
2004
2005
2007
2009
2012
2019
2014
2017
2010
2011
2013
2015
2016
2018
2020
2002
2003
2004
2005
2007
2006
2008
2009
2016
2019
2010
2011
2015
2017
2012
2013
2014
2018
Automotive Business comparable following 2018 accounting perimeter.
7
1.3. Sustained and profitable growth
25 years retributing our shareholders
Earnings per share (€) Dividend per share (€)
& EPS yield (%) & Dividend yield (%)
CAGR 2016-2019: 21% CAGR 2016-2019: 22%
+19%
2,50 +19% 17,80% 0,80 0,74 17,80%
2,23 +11%
+13%
+37%
15,80% 15,80%
0,62
0,70
(1)
1,88 COVID-19 COVID-19
2,00
+33% 13,80%
0,56 13,80%
1,67 0,60
10,58% 0,50
1,48 11,80%
0,50
11,80%
1,50
1,26 8,77% 9,80%
0,41 9,80%
6,90%
0,40
7,80% 7,80%
1,00
0,30
6,81%
5,80% 5,80%
6,71% 2,89% 3,51%
0,20
2,31% 2,26%
0,50
3,80%
2,21% 3,80%
1,80% 0,10 1,80%
- -0,20% - -0,20%
2019
2016
2017
2018
2019
2020
2016
2017
2018
2020
• High double digit Earnings growth over the • + A dividend in kind in 2018 valued in more than
period of the last Strategic Plan has allowed
Pay-out 400€ or more than 3€/share.
significant growth of dividends. 33% • +5% capital reduction in 2020.
Note: EPS yield and dividend yield are calculated with year end closing share prices.
(1) EPS 2018 is calculated with the normalized automotive business net income (Dominion shares were paid as dividend in kind as of July 3rd, 2018).
81.4. CIE Automotive at a glance
2019 2020 (Covid effect)
SALES:
3,461 m€ 2,883 m€
EBITDA:
594 m€ >17% over sales 431 m€ 15% over sales
EBIT:
427 m€ >12% over sales 283 m€ ≈12% over sales
NET RESULT:
288 m€ >8% over sales 185 m€ >6% over sales
CURRENT MKT CAP
≈2,700 m€
92 CIE Automotive Culture 2.1 Geographical balance 2.2 Commercial diversification 2.3 Multi-technology 2.4 Investment discipline 2.5 Decentralized management 2.6 ESG integrated 10
2. Our business model
6 1
ESG integrated Geographical
balance
5 2
Decentralized Commercial
Management diversification
4 3
Investment Multi-technology
discipline
112.1. Geographical balance
Sales by geography 2020
•Healthy
Europe N. America geographical
29% 26% balance in sales and
results.
•Defensive tool
against different
TOTAL cycle momentum in
2,882.5
the diverse
geographies.
Brazil
million euros
6% •Represents a key
competitive
advantage when
Asia MCIE Europe servicing global
27% 12% platforms.
4
122.2. Commercial diversification
Sales by customer 2020
3% PSA 2% DAIMLER TRUCKS
CATERPILLAR
MAHINDRA
NISSAN BAJAJ •Limited dependence
BMW on single customer,
FAW
4% MAGNA NEW PLAYERS platform or car model,
FORD ZF enabling price
NEXTEER
GKN defense.
AUTOMOTIVE
5% GM** FIAT
•Both direct sales to
TOTAL OEMs and Tier 1s (c.
1% 70% - 30%).
6% RENAULT
2,882.5 AUDI
TATA
8 •Solvent, assorted and
million euros NTN
JTEKT continuous quotation
ROBERT BOSCH
GMBH requests, which allows
NSK us investment choice
SCHAEFFLER
GROUP by profitability return
7% CHRYSLER MAN criteria.
VOLKSWAGEN CONTINENTAL
HYUNDAI
JLR
FAURECIA
8% DAIMLER CARS* 20%
OTHERS:
* Includes 5% of BBAC (BAIC-DAIMLER JV) sales. THYSSEN KRUPP, LEAR, SAIC, BROSE, AAM, SCANIA, MARUTI –
** Includes 2% of SGM (SAIC-GM JV) sales. SUZUKI, KIA, KS KOLBENSMICHDT, RHEINMETAL AUTOMOTIVE,
DAF, MARELLI, OPEL, DANA, AP-KAYABA, LINAMAR, VISTEON
CORPORATION, VOLVO TRUCKS, GEELY, GAIG
AUTOMOBILEHONDA, AUTOLIV, MERITOR, TRV, VOLVO CARS,
SEAT, DPCA, BORGWARNER, SKODA, ANTOLIN IRAUSA,
TOYOTA, PLASTIC OMNIUM, CHERY
132.3. Multi-technology
Sales by technology 2020
Aluminium •One-stop shop for
10% customers, offering
Roof Systems the whole range of the
23% existing technologies
Forging to produce
19% components.
Plastic
TOTAL •Enabling the
9% 2,882.5 selection of the
technology that
million euros Casting
better fulfils changing
3%
customers needs.
Stamping &
Tube Forming Machining
•Allowing CIE to focus
17% 19% investments on
winning technologies
anytime.
Technology by geographical area
TOTAL Machining Stamping Forging Plastic Aluminium Roof Systems Casting
Europe 43 17 5 6 5 5 5 -
North America 20 7 5 2 3 1 2 -
Brazil 15 3 4 1 5 1 - 1
Asia (India & China) 32 3 6 8 1 3 9 2
TOTAL 110 30 20 17 14 10 16 3
142.3. Multi-technology: Electrification
Sales by vehicle area 2020
Interior &
15% ICE includes
Engine & Gear segments and
Exterior trim box ICE regions of slow
33% 15% electrification pace,
real exposure is 80% of sales can fit
Drivetrain in any kind of
24% vehicle,
ICE / xEV
Structural
Chassis &
Suspension
25%
2
152.3. Multi-technology: Electrification
Electrification impact analysis
BEV Share 2030
Europe ≈20% of sales are
30% Applied to CIE sales to
50% renewed annually,
China
Engine & Gear box ICE:
30%
40%
so the % of sales at
maximum % of sales
North America
15%
risk in 2030 is a
25% at risk in 2030
India
very affordable
≈5% base case,
(1)
5%
5% effort for our
≈8% advanced case.
(2)
Brazil
4% commercial team.
4%
It is not about the number of parts in an ICE or a BEV engine.
It is about the target value of the components which CIE can produce for each.
When comparing CIE’s scope in an ICE or a BEV engine,
we prove that our target value in BEV is higher than the one in ICE.
(1) Base case: Extrapolated from IHS estimations as of May 2021 (in the context of CIE 1st CMD held on June 28th). Advanced case based on further electrification rate.
(2) Hybrid vehicles have not been considered in this analysis, but it would have additionally diluted the % of sales at risk in 2030.
162.3. Multi-technology
Axle beam Gearbox
Crankshaft Commercial Camshaft cover
housing
Engine vehicles Engine
Gearbox
FORGING ALUMINIUM
Axle shaft Ladder Frame
Transmission Engine
eReducer Steering
CV-Joints housing housings
Transmission xEV Gearbox Steering
CV-Joints
Transmission
Differential
housing Differential case
Transmission Transmission
Hubs, outer Axle shaft
Turbo housing rings Commercial
Engine Chassis vehicles
CASTING MACHINING
Brake drum Flange
Brakes Transmission
Axle arm EPS components
Crankshaft Structural parts
Engine Steering
172.3. Multi-technology
Steering Power electronic Emblems and Wheel covers,
covering inmold decoration rear-view mirrors,
columns xEV Electronics
STAMPING Steering Interior and
exterior trim
door handles
Exterior trim
& TUBE Structural parts PLASTIC Arm rest, cup holder,
FORMING Chassis pilars, grab handles,
Structural parts speaker grills
Battery pack Engine
cover Load floor
xEV Chassis Composite spray
Connectors and
Structural molding
Junction boxes
parts Thermoforming
Electronics
Interior trim
Brake booster /
i-booster
Brakes
Battery box
Aluminium
Flush window xEV Chassis
Doors & Structural
windows parts
Battery box Diesel &
xEV Chassis gasoline
Roof sunshades Structural injection rails
Shading parts Tube forming
ROOF MULTI Engine
Diesel & gasoline
SYSTEMS TECHNOLOGY injection rails
Opening roof
Forging &
modules
Machining
Roofs
Battery box Engine
Stamping- xEV
Fixed roof Chassis
modules Sunshades
Structural parts
Roofs Shading
182.4. Investment discipline
Standard flexible machinery valid to produce for different
customers and platforms, enabling high saturation of
CAPEX productive capacity.
≈3% recurrent capex level that implies maintenance
and capacity renovation.
Strict Investments ≥20% ROI.
investment
Operating Working Capital ≈0.(1)
discipline (1)
Operating WC: WC excluding non recourse factoring.
Operational excellence, together with capex control
EBITDA
and finance/tax strategies, enables a high
conversion into conversion of the EBITDA into Operating Cash.
Operating Cash >60% conversion level target.
192.5. Decentralized management
Team Cash
commitment focus
Fast decision Indirect people
making productivity
Universal
OBJETIVE: Decentralized
entrepreneurs VALUE management
GENERATION structure
Lean Network
headquarters services support
Local Variable
orders and long-term
incentives
202.5. Decentralized management Organization chart 21
2.6 ESG Integrated
Our ESG track record
2020
2016
2019
2021
2015
Signatory of the Contribution to the ESG SERNAUTO Global roll-out
United Nations United Nations integrated Responsible and
Global Compact Sustainable in our Business monitoring
Development business Commission
Goals model
Member of 2020-2025 ESG Dashboard with
Forética ESG targets 79 strategic KPIs
222.6 ESG Integrated
Taking into account all stakeholders
Sustainability standards
Trends and commitments
Automotive sector
Media Business partners
Analysts and investors
Suppliers
Shareholders
Customers
ESG requirements ESG agencies
Public Authorities
Society Legal obligations
232.6 ESG Integrated
2020-2025 ESG Business Model: four main action lines
2. ECO- 4. ACTIVE
EFFICIENCY LISTENING
Efficiency in Proactive and
production and continuous
improvement of communication
environmental with our
impact stakeholders
1. ETHICAL 3. CIE CULTURE
COMMITMENT Identifying,
Respect for, empowering,
compliance with retaining and
and development attracting talentt
of the ethical
framework
242.6 ESG Integrated
Ethical commitment: Engagement to Governance
• Based on principles of transparency and legality.
• Integrating Governance, Risk management and Compliance.
• Whistle-blowing channel for all stakeholders.
• Global training on ESG: Code of Conduct, criminal liability and anti-corruption.
• The Board of Directors is responsible for monitoring the company’s risk profile.
• The ESG Committee is responsible for the oversight of due compliance of the Code of Conduct.
• Corporate policies:
Governance polices ESG polices
Internal Control over Financial Reporting ESG
Control and risk management Purchasing
Corporate governance Supplier ESG commitment
Director remuneration Human rights
Corporate tax Anti-corruption and fraud
Shareholder and markets reporting and Social action
communications
Shareholder remuneration
Selection and diversity of the Board of Directors
Procurement policy and relations with the account
auditor
252.6 ESG Integrated
Eco-efficiency: Engagement to Environment
100% of energy
In 2020, 87% of all On our way to
consumed in Spain
waste generated decarbonization:
comes from
was reused, while first “CO2 ZERO”
renewable sources.
the remaining 13% collaboration
agreement with
was sent to landfill. In 2020, 4.5m€ in
Air France / KLM
environmental
activities, such as
photovoltaic parks.
Corporate Environmental Footprint
as a multi-criteria measure of our company’s environmental behavior,
from a life cycle perspective (cradle to gate scope), useful to prioritize
those actions reducing the most relevant environmental impacts
262.6 ESG Integrated
Eco-efficiency: Engagement to Environment
FULLY ALLIGNED WITH THE CIE Global targets
2030 AGENDA AND
EU targets (*)
THE EUROPEAN GREEN DEAL (*) Environmental
European targets and
ANNUAL REDUCTION: legislation development as
ENERGY: 2% worldwide benchmark.
EMMISSIONS: 2%
WASTE: 2%
272.6 ESG Integrated
CIE Culture: Engagement to our people
DIVERSE DECENTRALISED
- Implementation of 2019 Diversity Plan. - Decentralised decision making
- Gender indicators: process oriented to flexibility.
2019 2020
% female employees 16% 18% - Always combining results with social
% female new hires 18% 21% protection.
% female in steering 40% 40%
committee - >90% local managers.
- 2021 Diversity Committee.
SAFE CULTURE EMPOWERING
- 92% compliance with 2017-2020 - Future relaunch of Ulysses
certification plan. international training program.
- Harassment prevention &
treatment Plan. % TRAINED EMPLOYEES
- Reduction of frequency and 2020
severity of accidents: 89%
2019
2019 2020 88%
INJURY FREQUENCY 9.7 8.8
INJURY SEVERITY 0.17 0.15
282.6 ESG Integrated
Active listening: Supply Chain (SC)
SC MANAGEMENT
MODEL • ESG criteria integrated into SC procedures.
• 18 out of 79 ESG KPIs are linked to SC goals.
SC MEASURABLE
ENGAMENTS • End-to-end management via a single tool: Supplier Portal.
• Severity and likelihood approach.
SUPPLIER
SELECTION • SC ESG criteria as a key element in the supplier selection score.
• Commitment to increase nomination to those suppliers with an ESG DNA.
VALUE • >90% suppliers are local.
GENERATION • Increasing ESG specific audits.
• Rewarding the best-in-class ESG suppliers
• Open communication channels: 360º surveys.
292.6 ESG Integrated
Active listening: Sector
Sustainable R&D
• Worldwide collaboration in Research programs.
• C.2% of annual revenues invested in R&D: 10 R&D centers worldwide with a multi-technological and
multi-material approach.
• R&D roadmap focused on:
SMART NEW MOBILITY SAFETY &
DECARBONIZATION
INDUSTRIES CONCEPT SECURITY
Components for light Products and Comfort products Prioritizing safety
weighting vehicles, process aligned with new features.
and for electric, digitalization. mobility trends
hybrid and/or (autonomous driving,
hydrogen vehicles. car sharing, etc.)
302.6 ESG Integrated
Active listening: Financial institutions
CIE Automotive is pioneer in the Automotive sector linking
financing to ESG factors.
ESG performance is measured by a third party, VIGEO,
opting to a potential improvement or deterioration in
the interest rate to be applied.
In 2020 40% of our Financial Debt is linked to ESG criteria.
313 Update on results 3.1 June 2021 Results 3.2 Balance sheet 3.3 Cash flow 3.4 2021 Goals 3.5 Commitments for 2025 32
3.1. June 2021 Results
Highlights S1 2021
01
Increasing
market share +15.8 p.p. vs market +45%(*) vs S1 2020
02 Record margin in
current perimeter (1)
18.0% EBITDA MARGIN
PROFORMA STARTING
POINT ≈ 16%
vs 12.7% S1 2020
148.2 €m
Net Income CONTINUING WITH
03 S1 2021 OUR GROWTH PATH
04
Operating Cash
Generation 370.8 €m EXCELLENT LEVEL OF
CASH GENERATION
last 12 months 67% OPERATING CASH/EBITDA
05
Decrease of Net
Financial Debt ▼246 €m NFD/EBITDA FROM
3.91X TO 2.59X
VS. JUNE 2020
STRONG LIQUIDITY
06 Liquidity Reserve
1,289 €m POSITION WITH STRICT
CASH MANAGEMENT
TARGET PRICE
100% DO NOT SELL
Analyst
07 recommendations CONSENSUS
29.53€
(*) Constant exchange rate.
33 (1) Better EBITDA margin after the high increase of the 2019 perimeter.3.1. June 2021 Results
Sales evolution 2021 vs 2020
Market
CIE
CHINA
NORTH AMERICA EUROPE
56.3%
33.7% 27.7%
29.4% 25.4%
32.0%
INDIA
BRAZIL 90.5%
83.3%
58.8%
55.2%
Market +29.2%
CIE +45.0%
+15.8 p.p.
Constant exchange rate
Source: Motor vehicles production IHS JUNE 2021 (6 months 2021) (growth % in units).
343.1. 1S 2021 Results
€m 30/06/2020 30/06/2021
Turnover 1,208.2 1,681.6 +39%
EBITDA 153.5 302.8 +97%
% EBITDA on turnover 12.7% 18.0%
EBIT 90.2 220.6 +145%
% EBIT on turnover 7.5% 13.1%
EBT 65.2 201.0 +208%
Net income 58.3 148.2 +154%
• We are on pre-covid levels even with:
• 5.7 million fewer cars produced (S1 2021 vs S1 2019) and
• the negative impact of currency conversion (107 €m in turnover and 11 €m in
Net income S1 2021 vs S1 2019)
353.1. Q2 2021 Results
€m Q2 2020 Q2 2021
Turnover 386.2 807.8 +109%
EBITDA 13.2 145.6 +1,003%
% EBITDA on turnover 3.4% 18.0%
EBIT (14.1) 104.3 +839%
% EBIT on turnover -3.7% 12.9%
EBT (30.2) 92.4 +406%
Net income (14.5) 70.0 +583%
• The operating margins continue to improve, which were diluted with the
last acquisitions pre-covid (EBITDA proforma ≈16%; EBIT Proforma ≈ 11%)
363.1. June 2021 Results
2021 Divisions Contribution
Europe N. America Europe N. America
28.0% 25.2% 28.5% 30.0%
TURNOVER EBITDA
Brazil
6.2%
China China Brazil
13.7% 13.7% 6.3%
MCIE Europe 3
14.0% MCIE Europe
India India 11.0%
12.9% 10.5%
373.1. June 2021 Results
2021 Divisions Profitability
MCIE EUROPE
NORTH AMERICA EBITDA 14.2% CHINA
EUROPE EBIT 9.9%
EBITDA 21.5% EBITDA 17.9%
EBIT 17.0% EBITDA 18.3% EBIT 14.8%
EBIT 11.7%
INDIA
EBITDA 14.6%
EBIT 10.0%
BRAZIL
EBITDA 18.2%
EBIT 14.1%
• Excelent margins, in all geographical areas
383.2. Balance sheet
Balance sheet evolution
€m 31/12/2020 30/06/2021
Fixed assets 3,293.2 3,383.6
Net Working Capital (356.4) (304.0)
TOTAL NET ASSETS 2,936.8 3,079.6
Equity 995.0 1,198.4
Net Financial Debt 1,594.9 1,532.6
Others (net) 346.9 348.6
TOTAL NET LIABILITIES 2,936.8 3,079.6
Non-recourse factoring 242.2 €m 239.8 €m
393.3. Balance sheet
Cash Flow
YTD (*) LTM (*)
EBITDA m€ 302.8 580.5 €m 30/06/2020 31/12/2020 30/06/2021
Financial Expenses (16.7) (37.0)
NFD 1,778.3 1,594.9 1,532.6
Maintenance Capex (46.6) (94.5)
Adjusted
Tax Payments (31.1) (53.0) 1,770.8 1,575.3 1,523.5
NFD(*)
IFRS 16 Leases (1) (12.3) (25.2)
OPERATING CASH FLOW 196.1 370.8
NFD/EBITDA (**) 3.91X 3.59X 2.59X
% EBITDA(2) 67.5% 66.8%
Growing Capex (51.9) (87.8)
Net Working Capital Variation (60.9) 82.0
Payments of Dividends (30.6) (76.8)
Treasury shares transactions (1.5) (38.1) Liquidity Reserve
Business combinations (3) (4.8) (22.2) 30/06/2021
Currency conversion effect in NFD 12.0 1.8
1,289 €m
Other movements 3.9 16.0
FINANCIAL CASH FLOW 62.3 245.7
(1) Payment of rental fees registered in EBITDA according to the application of IFRS 16 standard..
(2) Operating Cash Flow on the value of EBITDA corrected with the effect of the IFRS 16 standard.
(3) Acquisition of additional shares of the listed subsidiary Mahindra Cie Automotive Ltd.
(*) Cash flow of 6 months of 2021 (YTD) and of the last 12 months (LTM).
(**) Adjusted NFD and EBITDA data considering 50% of the Chinese JV SAMAP
403.4. 2021 Goals
In 2021, CIE will increase its market share and
margins thanks to the strategic success in:
ELECTRIC COMMITED GREATER DEEP
CAR TO PRESENCE COMMITMENT
COMFORT IN ASIA TO ESG
413.4. Goals 2021
Set in 02/21
SALES Updated in 05/21
Growing in line with the market
Growing a medium-high digit above
market
MARGINS
EBITDA Margin >17%
EBITDA Margin >17.5%
OPERATING CASH
Operating cash generation
>60% EBITDA Operating cash generation ≈65%
EBITDA
NET FINANCIAL DEBT
Ratio NFD/EBITDA ≈2.5X
Ratio NFD/EBITDA between 2.3X
and 2.4X
(1) Production data from IHS February 2021
423.5. Commitments for 2025
Considering current perimeter and constant
exchange rates
Sales increase EBITDA margin Capex
≈+20pp market >19% in 2025 €1,000 million in
outperformance 5 years
in 5 years*
Tax cash out ≈65% EBITDA
≈2% over sales conversion into
annually operating cash
43 *June 2021 IHS estimate: +28% market growth 2025 vs 2020.Inorganically, we will be able
to invest up to €1,500 million
without exceeding
2x NFD/EBITDA. We will then
fulfill our dream of becoming
a €1,000 million EBITDA and
€500 million Net Profit
company from 2025 onwards.
444 CIE Automotive in stock exchange 45
4. CIE in Stock Exchange
Share Price Performance CIE Automotive
CIE Automotive
60%
IBEX 35
40%
STOXX Europe 600
(1)
20% Automobiles & Parts
0%
-20%
-40%
-60%
Since mid-2018, the financial markets and the Automotive sector have been negatively affected by geopolitical and macroeconomic
issues, as well as industry-specific problems.
During 2020 the pandemic severely impacted CIE Automotive's stock when results, quarter after quarter, demonstrated more than ever
the strength and resilience of the company.
During the first six months of 2021, the results continue to be excellent and keep CIE on the podium of the most profitable companies in
the market. Meanwhile, the share has appreciated by +13% until June, beating the Ibex 35 (+9%) but lagging somewhat behind the
STOXX Europe 600 Automobiles & Parts (+23%), which should mean a significant revaluation of the action in coming quarters.
(1) STOXX Europe 600 Automobiles & Parts includes: OEMS: BMW ST, Daimler, Ferrari NV, Fiat, Peugeot, Porsche, Renault &
Volkswagen. SUPPLIERS: Faurecia, Michelin, Nokian, Plastic Omnium, Rheinmetall, Schaeffler, Valeo.
464. CIE Automotive in stock exchange
Analysts recommendations
Company Analyst Recommendation Price Update
Alantra Equities Álvaro Lenze Buy €28.80 09/2021
Recommendations
Bankinter Esther Gutiérrez Buy €33.50 08/2021
Bestinver Securities Enrique Yáguez Buy €30.20 06/2021
Hold
Caixabank BPI Bruno Filipe Bessa Buy €35.10 06/2021
Exane BNP Paribas Francisco Ruiz Hold €25.00 05/2021
14%
Intermoney Valores Virginia Pérez Buy €30.00 06/2021
JB Capital Markets José María Cánovas Buy €29.20 04/2021
Kepler Cheuvreux Alexandre Raverdy Buy €27.00 09/2021 Buy +
Mirabaud Manuel Lorente Buy €27.40 06/2021 Outperform
Norbolsa Ander Peña Buy €29.80 06/2021 86%
Oddo BHF Anthony Dick Hold €25.00 09/2021
Renta 4 Álvaro Aristegui Outperform €33.50 07/2021
Sabadell Alfredo Del Cerro Buy €29.31 06/2021
Under
Santander Robert Jackson Under Review 05/2020
Review
Consensus - - €29.52
47APPENDIX I
ALTERNATIVE PERFORMANCE MEASUREMENT (APMs)
PERFORMANCE MEASURES DEFINITION
EBITDA Net Operating Income + Depreciation
Adjusted EBITDA Annualized EBITDA of 12 last months in those companies incorporated to the perimeter during the
period. It includes 50% of the Ebitda of Chinese JV SAMAP, which is based on the current agreements
with the partner, is consolidated by the equity method.
EBIT Net Operating Income.
EBT Earnings before taxes.
Net Income Recurrent profit attributable to the company’s shareholders.
Net Financial Debt (NFD) Debt with banks and other financial institutions – Cash and equivalents – Other Financial Assets.
Adjusted Net Financial Debt Net Financial Debt including 50% of Chinese JV SAMAP net financial debt, consolidated by the equity
method as per the current partnet agreements reached.
48Thank you www.cieautomotive.com 49
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