Société Générale The Premium Review 2016 · GAAP financial measures provide useful information...
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Société Générale The Premium Review 2016 30 November 2016
Transcript of Société Générale The Premium Review 2016 · GAAP financial measures provide useful information...
Société GénéraleThe Premium Review 2016
30 November 2016
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©2015 GRUPO ANTOLIN-Irausa, S.A. All rights reserved
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 presentation is 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 its officers, 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 and agrees 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 is not 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 the information or the conclusions contained herein or to correct any inaccuracies whichmay 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, should form 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 otherwise participate 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 in matters 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 a person 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 reflect various 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 forward looking statements contain the works
“anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. Such forward-looking statements reflect current expectations based 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 results and 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 statements to 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 measures presented 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 are cautioned 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 has generally been obtained from studies conducted by third-party sources. There are
limitations with respect to the availability, accuracy, completeness and comparability of such data. The Group has not independently verified such data and can provide no assurance of its accuracy orcompleteness. Certain statements in this presentation regarding the market and competitive 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 any independent sources and there can be no assurance that the assumptions or estimates are accurate.
Disclaimer
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Participant
Carlos Garcia-Mendoza - Banking, Capital Markets and IR Carlos Garcia-Mendoza - Banking, Capital Markets and IR
1,2481,637 1,876 2,087 2,128 2,085 2,225
5,008
0,000
1,000
2,000
3,000
4,000
5,000
2009 2010 2011 2012 2013 2013* 2014 2015PF**
Revenues
4
Global Tier 1 supplier
mill
(€)
• 2013 restated according IFRS 10 and 11 (mandatory application 1 January 2014)
• ** 2015 Proforma Grupo Antolin and LTM Magna Interiors
• Grupo Antolin is a leading global Tier 1 supplier of automotive components for vehicle interiors
• Present in 26 countries with more than 160 facilities and 25 technical commercial offices:
� Supplying components for 1 out of every 4 vehicles manufactured around the world
� Providing components for 300 different models
• In 2015, Grupo Antolin generated revenues and EBITDA of €3.5bn and €388m respectively (11.1% EBITDA margin)
• The Antolin family is sole shareholder of Grupo Antolin
114184 210 224 238 225
267
466
0
100
200
300
400
500
2009 2010 2011 2012 2013 2013* 2014 2015PF**
EBITDA
mill
(€)
3,506
388
5
5 Strategic Business Units
Overhead & Soft Trim
Doors & Hard Trim
Seats & Metal Lighting
• Modular headliner• Substrate• Sunvisors• Lighted headliner• Panoramic systems• Soft trim
• Carrier solutions• Door panels• Window regulators• Mechanisms
• Complete seats• Frames• Covers
• Complete solutions• Interior:
FunctionalMood lighting
• Exterior
Number 1 Worldwide Multi-TechnologicalOffer
High FunctionalIntegration
Innovation Comes toLight
Cockpits & Consoles
• Cockpits• Instrument panels• Central console
We improve life on board
Magna Interiors Integration
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• Offering the full range of interiors products
• 36 manufacturing plants acquired across Europe, NAFTA, China and South Korea
• Rationale confirmed:
� Enhanced discussions with customers
� Increased premium OEM sales
� Successful cross selling initiatives
� Cost savings progress
• New corporate structure accelerating integration
GLA
Door PanelsPillar TrimsSoft TrimSurface Design Parts
ONE/COOPER
Cockpit ModuleDoor PanelsRear Quarter PanelsPillar TrimsInstrument Panel AssemblySurface Design Parts
3-SERIES Coupé
Door PanelsHeadlinerPillar Trims
RANGE ROVER
Cockpit ModuleLuggage
CompartmentsInstrument Panel
AssemblyFloor ConsolesGlove Boxes
RANGE ROVER
Cockpit ModuleFloor ConsolesGlove BoxesLuggage CompartmentsInstrument Panel Assembly
A5 COUPE / CABRIO / SPORTBACK
HeadlinerGlove BoxesInstrument Panel AssemblyFloor Consoles
A5 COUPE / CABRIO / SPORTBACK
HeadlinerGlove Boxes
Instrument Panel AssemblyFloor Consoles
Enclave, Traverse,Acadia
Door PanelsPillar Trim
2. Key credit highlights
Summary credit highlights
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1. Strengthened leading market positions
2. Further diversification provides improved resilience to combined group
3. Reinforcing and enhancing long-standing and strategic customer relationships
4. Attractive market fundamentals for scale operators
5. Innovative solutions
6. Experienced management team and committed core shareholders
Note: The number within each graph represents the expected position of Grupo Antolin in the ranking based on existing 2015 data. Market shares are based on number of vehicles equipped(a) Front overhead consoles/dome lamps(b) Front window regulators
Source: Vehicle volumes based on LMC Automotive Q4 2015. Market shares based on company estimates
40%15%
40% 28%22%
21%
Strengthened leading market positions
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1
Grupo Antolin estimates of market shares and ranking in 2015
NAFTAMarket size: 17.4m vehicles
46%
EuropeMarket size: 20.9m vehicles
WorldwideMarket size: 88.2m vehicles
27%
MercosurMarket size: 3.0m vehicles
17%
55%65%
1
1 2 1 2 1
1
1 2 21
Ranking as main supplier
Headliners
Headliners Doors Sunvisors Window reg. (b) Lighting (a)
HeadlinersHeadliners
7%
3
Instrument Panels
Headliners Window reg. (b) Sunvisors
IndiaMarket size: 3.7m vehicles
Geography Client Product
Q3 2016
2014 (standalone)
Spain18%
Rest of Europe(a)41%
NAFTA30%
Asia-Pacific6%
Mercosur4%
Other1%
19%
18%
15%
12%
11%
5%
4%
3%3%
3%Others
7%
Europe54%NAFTA
36%
Asia8%
Mercosur1% 15%
11%
12%
9%
11%10%
9%
9%
5%
2%
12%
10
Further diversification provides improved resilience
28/11/2016 16:07:052010 DB Blue template
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(a) Excluding Spain
Europe: 58%
Group Overheads54%Doors
29%
Seating9%
Lighting7%
Group
Overheads,34%
Doors, 30%
Seating5%
Lighting4%
Cockpits47%
7%3%3%3%4%5%
11%
12%
15%
18%
19%
11
Reinforced long-standing customer relationships3
7%3%
4%5%
7%
13%
17%
17%
27%
12%
2%5%
9%
9%
9%
10%
11%
11%
12%
15%
€627m
Group
Other
€1,685m
Other
Group
Other
Group
€2,225m
Other
Group
2000 2007 2014 YTD Q3 2016
Strategic relationships with key customers
• VW FAST supplier
• Ford ABF partner
• PSA “Car of the future” think tank
Comfort and affordable price
Sustainability and safety
Globalizations of platforms
Consolidation of supplier base
Technological partnerships with OEMs
Growth outside traditional markets
Attractive market fundamentals benefit scale operators
NAFTA1
2
3
4
5
6
Key drivers/trends
CAGR 15 – 20
1.8%
CAGR 15 – 20
Europe
2.2%
Asia PacificCAGR 15 – 20
3.5%
CAGR 15 – 20
South AmericaCAGR 15 – 20
Total
3,0%
Vehicle production continues to grow globally with 3% CAGR expected through 2020
Source: LMC Automotive world light vehicle assembly, Quarter 3, 2016. Vehicle production in millions
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12
2.1%
Materials & ProcessesFocused mainly on weight reduction to minimize CO2 emissions and the use of green materials (recyclable/recycled)
Industrial flexibilityInnovative processes to produce different functions. Adapting to meet evolving market demands with minimum investment
Smart InteriorsSupporting our customers’ brand strategy is key to end user experience and perceived quality based on customization
Innovative solutions5
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Experienced management with full focus on integration
14
6
� Highly experienced management with long-term track record and focus on integration� Committed family shareholders provide stability and focus on value generation
Ernesto AntolínChairman
• Appointed as Chairman of the company in February 2015
• 24 years with Grupo Antolin
María Helena AntolínVice Chairman
• Appointed as Vice Chairman of the company in February 2015
• 23 years with Grupo Antolin
• Board member of Iberdrola
Jesús PascualCEO
• Appointed CEO in July 2015
• Previously, COO since 2013
• 30 years with Grupo Antolin
Cristina BlancoCFO
• CFO since 2016
• 16 years of experience with Grupo Antolin
Miguel Ángel VicenteCCO
• CCO since 2013
• 36 years of international experience within the automotive industry
Proven commitment to profitability
International expansion incl.
greenfield projects
Successful integration of
multicultural teams
Strategic long-term relationship with
key clients
Longtime commitment to the
Group
Key strengths of the management team
3. Financial Strength
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YTD Q3 2016 Highlights
• Sales of EUR 3.9bn, up 78% from YTD Q3 2015
• EBITDA of EUR 415m up 50% from YTD Q3 2015, margin of 10.6%
• EBIT of EUR 281m up 40% from YTD Q3 2015, margin of 7.2%
• Excluding the acquisition of Magna Interiors:
� Sales of EUR 2,2bn up 8% from YTD Q3 2015
� EBITDA of EUR 302m up 12.8% from YTD Q3 2015, margin of 14.0%
• Cash available of EUR 296m
• Available revolving credit facilities of EUR 253m
• LTM Adjusted EBITDA of EUR 539m and Net Debt to Adjusted EBITDA of 1.9x
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Balanced, long term capital structure
2016 2017 2018 2019 2020 2021 2022 2023Term Loan ADE loan Soft loans Leasings SSN 21 Other loans ST Credit & Interests SSN 22
Gross debt 30 September 2016€1,329m
Net debt 30 September 2016€999m
� €800m senior secured notes
� €387m senior financing
� €63m ADE facility
� €6m soft loans with cost; €32m soft loans with no cost
� €36m other facilities, of which €15m are credit lines
� €6m accrued interests
� Cash available of €296m
� For covenant purposes, Net debt totalled € 999m (excludes soft loans without
financial cost, includes cash using 12 month FX average).
� €200m undrawn syndicated revolving credit facility, and €53m undrawn local
credit lines
Covenants1.9x Net Debt/Adjusted EBITDA 7.9x EBITDA/Financial expenses
Covenant: under 3.50x Covenant: over 4.00x
€ 538.6m € 527.1mSeptember 2016 LTM Adj. EBITDA September 2016 LTM EBITDA
25
104
249
416
4
4564
417
18
Amortization schedule as of 1 October 2016
2016 2017 2018 2019 2020 2021 2022 2023Term Loan ADE loan Soft loans Leasings SSN 21 Other loans ST Credit & Interests SSN 22
2564
100
416
428 44
643
Financial policy
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Target leverage
• Long-term target leverage (Net debt / EBITDA) of around 2x
• Deleveraging strategy consistent with strict investment approach and
de minimis dividend policy
M&A / investments
• No further significant acquisitions anticipated
• Selective add-on acquisitions may be considered in case of strong
strategic rationale and if financially solid
Dividend policy
• Conservative dividend policy with c. €15m annual dividend payouts
• Family shareholders focused on value generation rather than
dividends
2016 Outlook
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• Sales growth
• C. 40%
• C. 3% excluding Cockpits and Consoles
• EBITDA margin c. 9.5%
• Capex under 6% of sales
• Working Capital stable as a percentage of LTM sales
4. Q&A
Backup slides
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Q3 2016 performance
*Note: Breakdown under 2015 corporate structure, for comparison purposes
37 41
1818
796
98
36
Q3 2105 Q3 2016*
Overheads Doors Seating Lighting Cockpits Others
75
112
EU
Rm
9.3%Margin 9.1%
+45%
+10%
48%
+27%
- 1%
+368%
360 358
174 17847 6145 55192
574
Q3 2105 Q3 2016*
Overheads Doors Seating Lighting Cockpits Others
465666
283
44050
101
14
16
Q3 2105 Q3 2016
Europe NAFTA APAC Mercosur Others
818
1,230
EU
Rm
EU
Rm
- 0%
50%
+ 29%+ 2%
+ 16%
+ 43%
+ 102%
+ 55%
+22%
+199%
