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Iveco Group N.V.
Earnings Release • May 13, 2024
7333_iss_2024-05-10_32ce360d-ea1d-4515-a7da-12ddf85558b5.pdf
Earnings Release
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PRESS RELEASE
Turin,10th May 2024
Iveco Group 2024 First Quarter Results(*)
Iveco Group consolidated revenues of €3.4 billion (in line with Q1 2023). Adjusted EBIT of €233 million (up €59 million compared to Q1 2023) and adjusted net income of €153 million (up €77 million compared to Q1 2023). Negative free cash flow of Industrial Activities of €436 million (€110 million better compared to Q1 2023).
"Iveco Group stands ready for its next phase, having kicked off the first quarter of the new 2024-28 cycle with strong results. Our consolidated adjusted EBIT grew to 233 million euros and our adjusted net income came in at 153 million euros, respectively 59 and 77 million euros more compared to the first quarter of last year. All our industrial business units – Truck, Bus, Defence and Powertrain – achieved margin improvements, resulting in a 6.1% adjusted EBIT margin of industrial activities, an increase of 170 basis points versus the first quarter of last year. The collective Iveco Group team and its distinct business units, driven by competent, passionate and unique people, are eager to further accelerate their pathways presented during our recent Capital Markets Day."
Gerrit Marx, Chief Executive Officer
(*) On 13th March 2024, Iveco Group and Mutares SE & Co. KGaA announced the signing of a definitive agreement for the transfer of ownership of Magirus GmbH and its affiliates performing Fire Fighting business. Subject to regulatory approval, the transaction is expected to be completed no later than January 2025. In accordance with IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, as the sale became highly probable in March, the Fire Fighting business met the criteria to be classified as a disposal group held for sale; it also met the criteria to be classified as Discontinued Operations.
2024 financial data shown in this press release refers to Continuing Operations only, unless otherwise stated. In accordance with applicable accounting standards, the figures in the Income Statement and Statement of Cash Flows for 2023 comparative periods have been recast consistently.
2024 First Quarter Results of Continuing Operations(1)
| (all amounts € million, unless otherwise stated – comparison vs Q1 2023) | ||||||||
|---|---|---|---|---|---|---|---|---|
| EU-IFRS FINANCIAL MEASURES | NON-EU-IFRS FINANCIAL MEASURES (2) | |||||||
| Consolidated EBIT | 96 | -24 | Adjusted EBIT | 233 | +59 | |||
| of which EBIT of Industrial Activities | 64 | -21 | of which Adjusted EBIT of Industrial Activities | 201 | +55 | |||
| Profit/(loss) | 22 | -1 | Adjusted net income | 153 | +77 | |||
| Diluted EPS € | 0.09 | +0.03 | Adjusted diluted EPS € | 0.57 | +0.32 | |||
| Cash flow from operating activities | (316) | +144 | Free cash flow of Industrial Activities | (436) | +110 | |||
| Cash and cash equivalents | 2,611 | -87 | (**) | Available liquidity | 4,685 | -63 | (**) |
(**) Comparison vs 31 st December 2023.
Consolidated revenues of €3,367 million, in line with Q1 2023. Net revenues of Industrial Activities of €3,283 million, flat vs Q1 2023, with positive price realisation offsetting lower volumes mainly in South America, a negative mix, and an adverse foreign exchange impact.
Adjusted EBIT of €233 million (€59 million increase compared to Q1 2023) with a 6.9% margin (up 170 bps compared to Q1 2023). Adjusted EBIT of Industrial Activities of €201 million (€55 million increase vs Q1 2023) and margin at 6.1% (up 170 bps compared to Q1 2023), mainly thanks to lower product costs and a continuously positive price realisation in the quarter.
Adjusted net income of €153 million (€77 million increase compared to Q1 2023), after deducting the pre- and after-tax loss of €115 million from signing the definitive agreement to transfer the Fire Fighting business. Adjusted diluted earnings per share of €0.57 (up €0.32 compared to Q1 2023).
Financial expenses of €21 million (vs €72 million in Q1 2023), decreasing year over year mainly thanks to a more contained foreign exchange rate and cost of hedge impact in Argentina, as a result of the implemented hedging strategy, as well as to an improvement in the Argentinian hyperinflation accounting impact.
Reported income tax expense of €53 million, with adjusted effective tax rate (adjusted ETR(2) ) of 28% reflecting different tax rates applied in the jurisdictions where the Group operates and some other discrete items.
Free cash flow of Industrial Activities negative at €436 million (vs negative €546 million in Q1 2023) in line with our seasonal working capital absorption.
Available liquidity at €4,685 million as of 31 st March 2024, down €63 million from 31st December 2023, including €2,000 million of undrawn committed facilities.
Dividends and Share Buyback
At the Annual General Meeting of shareholders held on 17th April 2024 ("AGM"), the Company's shareholders approved a cash dividend distribution of €0.22 per outstanding Common Share, totalling around €59 million, paid on 24th April.
The AGM reauthorised the Board to repurchase up to 10 million Common Shares for a maximum amount of €130 million, subject to market and business conditions and in compliance with applicable regulations, inter alia to serve the Company's equity incentive plans.
2024 Financial Guidance(*)
Based on conservative assumptions on the evolution of the macroeconomic scenario, with the interest base rate flat versus 2023 levels, and considering a market evolution in line with industry expectations and a price policy in line with the markets, Iveco Group is confirming its 2024 financial guidance as follows:
- Consolidated Adjusted EBIT between €920 million and €970 million
- Net revenues of Industrial Activities(**) ~ (4)% versus Full Year 2023 • Adjusted EBIT of Industrial Activities between €790 million and
- €840 million
- Free cash flow of Industrial Activities between €350 million and €400 million
- Investments of Industrial Activities(***) ~ €1 billion.
- (*) Financial Guidance excluding Fire Fighting business and based on current visibility. A significant escalation or expansion of current macroeconomic and geopolitical issues, supply chain issues and global logistic constraints, and energy and material availability and relevant price variability could have a material adverse effect on Iveco Group financial results. (**) Including currency translation effects.
(***) Investments in property, plant and equipment, and intangible assets (excluding assets sold under buy-back commitments and assets under operating leases).
Notes, see page 4
Q1 2024 Events
In January 2024, IVECO BUS won its largest electric bus contract in Italy for the supply of 411 battery electric vehicles to ATAC, Rome's public transport company. In the same month, Iveco Group chose BASF as its first recycling partner for the lithium-ion batteries of the Group's electric vehicles.
In February, Hyundai Motor Company and Iveco Group signed a supply agreement of an IVECO-badged all-electric light commercial vehicle for Europe, based on Hyundai's Global eLCV platform. HEULIEZ was selected by Régie des Transports Métropolitains, the public transport operator of Marseille, to supply 200 electric buses. Also in February, IVECO received an order for the supply of 178 S-Way CNG (Compressed Natural Gas) trucks to the Post & Parcel Germany division of DHL.
On 14th March, Iveco Group held its Capital Markets Day outlining its objectives up to 2028. In the same month, Ford Trucks and IVECO signed a non-binding Memorandum of Understanding to explore a potential collaboration for the development of a new cabin for heavy-duty commercial vehicles. Also in March, Iveco Group and Hyundai Motor Company signed a Letter of Intent to expand their partnership to explore synergies for electric heavy-duty trucks in the European markets.
Q1 2024 Performance and Results by Business Unit
On 14th March 2024, during its Capital Markets Day, Iveco Group released a new segment reporting structure for its Continuing Operations, expanding its reportable segments from three segments (Commercial & Specialty Vehicles, Powertrain and Financial Services) to five reportable segments (Truck, Bus, Defence, Powertrain and Financial Services). The Truck, Bus and Defence business units, along with the Fire Fighting business unit (now reported as Discontinued Operations), were previously part of the Commercial and Specialty Vehicles segment. The following data reflects the new reporting structure. Comparative data has been recast to conform to the current year presentation.
We started the year with consistent profitability improvements across business units, leading to an adjusted EBIT margin for the Industrial Activities at 6.1%, 170 bps above the first quarter of 2023.
We will continue our efforts to manage our order books and preserve profitability, as well as further reinforce our control over cash. We still have a rather large and strong order book in Trucks – covering almost 18 weeks of production in light-duty trucks ("LCV") and around 15 weeks for medium and heavyduty trucks ("M&H"). Worldwide truck book-to-bill was 0.70 at the end of the quarter.
Truck
| Q1 2024 | Q1 2023 | Change | The European truck market was up 8% year-on-year, with LCV up 15% and M&H | |||
|---|---|---|---|---|---|---|
| Net revenues (€ million) |
2,339 | 2,287 | +2.3% | down 3%. The South American truck market was down 17% in LCV and 7% in M&H. Iveco Group deliveries were up 15% vs Q1 2023 (LCV up 34% and M&H down 25%) in Europe, and were down 34% (LCV up 20% and M&H down 47%) in South America. |
||
| Adjusted EBIT | Net revenues were up 2.3%, primarily driven by positive price realisation. | |||||
| (€ million) | 152 | 120 | +32 | TheAdjusted EBIT was €152million, a €32million increase compared to Q1 2023, driven | ||
| Adjusted EBIT margin |
6.5% | 5.2% | +130 bps | by lower product costs and positive price realisation, partially offset by lower volumes in South America. The Adjusted EBIT margin was at 6.5%. |
Bus
| Q1 2024 | Q1 2023 | Change | Bus registrations were in line with the previous year in Europe and down 19% in | |
|---|---|---|---|---|
| Net revenues | South America. Iveco Group deliveries were up 4% in Europe and down 48% in South America compared to Q1 2023. |
|||
| (€ million) | 414 | 407 | +1.7% | Net revenues were up 1.7%, primarily driven by positive price realisation and better |
| Adjusted EBIT | mix. | |||
| (€ million) | 21 | 13 | +8 | The Adjusted EBIT was €21 million, a €8 million increase compared to Q1 2023, driven |
| Adjusted EBIT | by a better mix and positive price realisation. The Adjusted EBIT margin was at 5.1%. | |||
| margin | 5.1% | 3.2% | +190 bps |
Defence
| Q1 2024 | Q1 2023 | Change | Net revenues were up 34%, primarily driven by higher volumes. | |
|---|---|---|---|---|
| Net revenues (€ million) |
213 | 159 | +34.0% | The Adjusted EBIT was €22 million, a €16 million increase compared to Q1 2023, driven by higher volumes and a better mix. The Adjusted EBIT margin was at 10.3%. |
| Adjusted EBIT (€ million) |
22 | 6 | +16 | |
| Adjusted EBIT margin |
10.3% | 3.8% | +650 bps |
Powertrain
| Q1 2024 | Q1 2023 | Change | Net revenues were down 12.9% compared to Q1 2023, mainly due to lower volumes. | |
|---|---|---|---|---|
| Net revenues (€ million) |
969 | 1,113 | -12.9% | Sales to external customers accounted for 45% (50% in Q1 2023). The Adjusted EBIT was €60 million, flat vs Q1 2023, with lower product and structure costs fully offsetting decreased volumes. The Adjusted EBIT margin was at 6.2%. |
| Adjusted EBIT (€ million) |
60 | 61 | -1 | However, Powertrain is still targeting a full year margin uplift of 100 bps. |
| Adjusted EBIT | ||||
| margin | 6.2% | 5.5% | +70 bps |
Financial Services
| Q1 2024 | Q1 2023 | Change | Net revenues were up 46.5% compared to Q1 2023, mainly due to higher base rates | |
|---|---|---|---|---|
| Net revenues (€ million) |
145 | 99 | +46.5% | and a higher receivables portfolio. The Adjusted EBIT was at €32 million, up €4 million compared to Q1 2023, primarily as a result of a higher receivables portfolio. |
| Adjusted EBIT (€ million) |
32 | 28 | +4 | The Iveco Group managed portfolio (including unconsolidated joint ventures) was €7,853 million at the end of the quarter (of which retail was 39% and wholesale 61%), |
| Equity at quarter end (€ million) |
836 | 778 | +58 | up €1,331 million compared to 31st March 2023. The receivable balance greater than 30 days past due as a percentage of the on-book portfolio was at 2.0% (2.5% as of 31st March 2023). |
| Retail loan originations (€ million) |
464 | 316 | +148 |
- 1) Iveco Group reports quarterly and annual consolidated financial results under EU-IFRS. The tables and discussion related to the financial results of the Company and its segments shown in this press release are prepared in accordance with EU-IFRS.
- 2) Non-EU-IFRS financial measures: refer to the "Non-EU-IFRS Financial Information" section of this press release for information regarding non-EU-IFRS financial measures. Refer to the specific table in the "Other Supplemental Financial Information" section of this press release for the reconciliation between the non-EU-IFRS financial measure and the most comparable EU-IFRS financial measure.
Non-EU-IFRS Financial Information
Iveco Group monitors its operations through the use of several non-EU-IFRS financial measures. Iveco Group's management believes that these non-EU-IFRS financial measures provide useful and relevant information regarding its operating results and enhance the readers' ability to assess Iveco Group's financial performance and financial position. Management uses these non-EU-IFRS measures to identify operational trends, as well as make decisions regarding future spending, resource allocations and other operational decisions as they provide additional transparency with respect to our core operations. These non-EU-IFRS financial measures have no standardized meaning under EU-IFRS and are unlikely to be comparable to other similarly titled measures used by other companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with EU-IFRS.
Iveco Group's non-EU-IFRS financial measures are defined as follows:
- Adjusted EBIT: is defined as EBIT before restructuring costs and non-recurring items. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational activities.
- Adjusted Net Income/(Loss): is defined as profit/(loss) for the period, less restructuring costs and non-recurring items, after tax.
- Adjusted Diluted EPS: is computed by dividing Adjusted Net Income/(Loss) attributable to Iveco Group N.V. by a weighted-average number of Common Shares outstanding during the period that takes into consideration potential Common Shares outstanding deriving from the Iveco Group share-based payment awards, when inclusion is not anti-dilutive. When Iveco Group provides guidance for adjusted diluted EPS, the Group does not provide guidance on an earnings per share basis because the EU-IFRS measure will include potentially significant items that have not yet occurred and are difficult to predict with reasonable certainty prior to year-end.
- Adjusted Income Taxes: is defined as income taxes less the tax effect of restructuring expenses and non-recurring items, and non-recurring tax charges or benefits.
- Adjusted Effective Tax Rate (Adjusted ETR): is computed by dividing a) adjusted income taxes by b) profit (loss) before income taxes, less restructuring expenses and non-recurring items.
- Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow): refers to Industrial Activities, only, and is computed as consolidated cash flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in property, plant and equipment and intangible assets; as well as other changes and intersegment eliminations.
- Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as total Debt plus Derivative liabilities, net of Cash and cash equivalents, Derivative assets and other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and financial receivables from CNH deriving from financing activities and sale of trade receivables. Iveco Group provides the reconciliation of Net Cash (Debt) to Total (Debt), which is the most directly comparable EU-IFRS financial measure included in the Group's consolidated statement of financial position. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services (by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately evaluates the cash flow performance of Industrial Activities using Net Cash (Debt) of Industrial Activities.
- Available Liquidity: is defined as cash and cash equivalents, including restricted cash, undrawn medium-term unsecured committed facilities, other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties), and financial receivables from CNH deriving from financing activities and sale of trade receivables.
Forward-looking statements
Statements other than statements of historical fact contained in this earning release, including competitive strengths; business strategy; future financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures, dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products, are forward-looking statements. These statements may include terminology such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "outlook", "continue", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "prospects", "plan", or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are difficult to predict and/or are outside the Company's control. If any of these risks and uncertainties materialize (or they occur with a degree of severity that the Company is unable to predict) or other assumptions underlying any of the forward-looking statements prove to be incorrect, including any assumptions regarding strategic plans, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements. Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: the continued uncertainties related to the unknown duration and economic, operational and financial impacts of ongoing and/or threatened international conflicts and geopolitical tensions; supply chain disruptions and global logistic constraints, including, industry capacity constraints, supplier viability issues, material availability and relevant price volatility; increased vulnerability to cybersecurity or data privacy incidents, also due to potential massive availability of Generative Artificial Intelligence; the many interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products, including demand uncertainty caused by current macroeconomic and geopolitical issues; changes in government policies regarding banking, monetary and fiscal policy; legislation, particularly pertaining to capital goods-related issues such the environment, debt relief and subsidy program policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions, import quotas, capital controls and tariffs; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of our products; production difficulties, including capacity and supply constraints and excess inventory levels; labour relations; interest rates and currency exchange rates; inflation and deflation; energy prices; our ability to obtain financing or to refinance existing debt; price pressure on new and used vehicles; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, follow-on private litigation in various
jurisdictions after the settlement of the EU antitrust investigation of the Iveco Group announced on 19th July 2016, intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology infrastructure of Iveco Group and its suppliers and dealers; security breaches with respect to our products; further developments of geopolitical threats which could impact our operations, supply chains, distribution network, as well as negative evolutions of the economic and financial conditions at global and regional levels; political and civil unrest; volatility and deterioration of capital and financial markets, including other pandemics, terrorist attacks or acts of war in Europe and elsewhere; our ability to realise the anticipated benefits from our business initiatives as part of our strategic plan; our failure to realise, or a delay in realising, all of the anticipated benefits of our acquisitions, joint ventures, strategic alliances or divestitures and other similar risks and uncertainties, and our success in managing the risks involved in the foregoing.
Forward-looking statements are based upon assumptions relating to the factors described in this earnings release, which are sometimes based upon estimates and data received from third parties. Such estimates and data are often revised. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside Iveco Group's control. Except as otherwise required by applicable rules, Iveco Group expressly disclaims any intention to provide, update or revise any forward-looking statements in this announcement to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Further information concerning Iveco Group, including factors that potentially could materially affect Iveco Group's financial results, is included in Iveco Group's reports and public filings under applicable regulations.
About Iveco Group
Iveco Group N.V. (EXM: IVG) is the home of unique people and brands that power your business and mission to advance a more sustainable society. The eight brands are each a major force in its specific business: IVECO, a pioneering commercial vehicles brand that designs, manufactures, and markets heavy, medium, and light-duty trucks; FPT Industrial, a global leader in a vast array of advanced powertrain technologies in the agriculture, construction, marine, power generation, and commercial vehicles sectors; IVECO BUS and HEULIEZ, mass-transit and premium bus and coach brands; IDV, for highly specialised defence and civil protection equipment; ASTRA, a leader in largescale heavy-duty quarry and construction vehicles; MAGIRUS, the industry-reputed firefighting vehicle and equipment manufacturer; and IVECO CAPITAL, the financing arm which supports them all. Iveco Group employs more than 36,000 people around the world and has 20 industrial sites and 31 R&D centres. Further information is available on the Company's website www.ivecogroup.com.
Slides Presentation, Conference Call and Webcast
Today, at 11:00 am CEST / 10:00 am BST, management will hold a conference call to present the first quarter 2024 results to financial analysts and institutional investors. The call can be followed live online at Q1 2024 Iveco Group Webcast and a recording will be available later on the Company's website www.ivecogroup.com. The slides presentation of the quarterly earnings result and 2024 industry outlook and Financial Guidance, including commentary in the form of notes pages, is being made available on the Company's website.
Contacts
Media: Investor Relations: Francesco Polsinelli, Tel: +39 335 1776091 Federico Donati, Tel: +39 011 0073539 Fabio Lepore, Tel: +39 335 7469007 E-mail: [email protected] E-mail: [email protected]
Condensed Consolidated Income Statement for the three months ended 31 st March 2024 and 2023 (Unaudited)
| Three months ended 31st March | ||||
|---|---|---|---|---|
| (€ million) | 2024 | 2023 | ||
| Net revenues | 3,367 | 3,362 | ||
| Cost of sales | 2,732 | 2,815 | ||
| Selling, general and administrative costs | 240 | 221 | ||
| Research and development costs | 143 | 121 | ||
| Result from investments: | 6 | (5) | ||
| Share of the profit/(loss) of investees accounted for using the equity method | 6 | (5) | ||
| Restructuring costs | 5 | 2 | ||
| Other income/(expenses) | (157) | (78) | ||
| EBIT | 96 | 120 | ||
| Financial income/(expenses) | (21) | (72) | ||
| PROFIT/(LOSS) BEFORE TAXES | 75 | 48 | ||
| Income tax (expense) benefit | (53) | (25) | ||
| PROFIT/(LOSS) FROM CONTINUING OPERATIONS | 22 | 23 | ||
| PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | (10) | (13) | ||
| PROFIT/(LOSS) FOR THE PERIOD | 12 | 10 | ||
| PROFIT/(LOSS) FOR THE PERIOD ATTRIBUTABLE TO: | ||||
| Owners of the parent | 17 | 6 | ||
| Non-controlling interests | (5) | 4 | ||
| (in €) | ||||
| Basic Earnings/(loss) per Common Share from Continuing Operations | 0.09 | 0.06 | ||
| BASIC EARNINGS/(LOSS) PER COMMON SHARE | 0.06 | 0.02 | ||
| Diluted Earnings/(loss) per Common Share from Continuing Operations | 0.09 | 0.06 | ||
| DILUTED EARNINGS/(LOSS) PER COMMON SHARE | 0.06 | 0.02 |
Condensed Consolidated Statement of Financial Position as of 31st March 2024 and 31st December 2023 (Unaudited)
| (€ million) | 31st March 2024 | 31st December 2023 |
|---|---|---|
| ASSETS | ||
| Intangible assets | 1,846 | 1,841 |
| Property, plant and equipment | 3,086 | 3,186 |
| Investments and other non-current financial assets: | 260 | 210 |
| Investments accounted for using the equity method | 172 | 166 |
| Equity investments measured at fair value through other comprehensive income | 16 | 15 |
| Other investments and non-current financial assets | 72 | 29 |
| Leased assets | 79 | 75 |
| Deferred tax assets | 730 | 658 |
| Total Non-current assets | 6,001 | 5,970 |
| Inventories | 3,440 | 2,868 |
| Trade receivables | 257 | 326 |
| Receivables from financing activities | 4,945 | 5,802 |
| Current tax receivables | 123 | 142 |
| Other current receivables and financial assets | 550 | 363 |
| Prepaid expenses and other assets | 136 | 130 |
| Derivative assets | 16 | 27 |
| Cash and cash equivalents | 2,611 | 2,698 |
| Total Current assets | 12,078 | 12,356 |
| Assets held for sale(1) | 305 | 59 |
| TOTAL ASSETS | 18,384 | 18,385 |
| EQUITY AND LIABILITIES | ||
| Issued capital and reserves attributable to owners of the parent | 2,348 | 2,354 |
| Non-controlling interests | 34 | 36 |
| Total Equity | 2,382 | 2,390 |
| Provisions: | 2,440 | 2,380 |
| Employee benefits | 418 | 544 |
| Other provisions | 2,022 | 1,836 |
| Debt: | 5,828 | 6,100 |
| Asset-backed financing | 3,761 | 3,860 |
| Other debt | 2,067 | 2,240 |
| Derivative liabilities | 41 | 41 |
| Trade payables | 3,889 | 3,927 |
| Tax liabilities | 124 | 120 |
| Deferred tax liabilities | 108 | 28 |
| Other current liabilities | 3,295 | 3,340 |
| Liabilities held for sale(1) | 277 | 59 |
| Total Liabilities | 16,002 | 15,995 |
| TOTAL EQUITY AND LIABILITIES | 18,384 | 18,385 |
Notes:
(1) At 31st March 2024, Assets held for sale and Liabilities held for sale also includes the assets and the liabilities, respectively, of the Fire Fighting business classified as a disposal group held for sale and as Discontinued Operations.
Condensed Consolidated Statement of Cash Flows for the three months ended 31st March 2024 and 2023 (Unaudited)
| Three months ended 31st March | ||
|---|---|---|
| (€ million) | 2024 | 2023 |
| A) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD | 2,698 | 2,288 |
| B) CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES: | ||
| Profit/(loss) from Continuing Operations for the period | 22 | 23 |
| Amortization and depreciation (excluding vehicles sold under buy-back commitments and operating leases) | 152 | 136 |
| (Gains)/losses on disposal of non-current assets (excluding vehicles sold under buy-back commitments) | (1) | - |
| Other non-cash items | (7) | 4 |
| Change in provisions | 126 | (24) |
| Change in deferred income taxes | 4 | 3 |
| Change in items due to buy-back commitments(a) | (12) | (31) |
| Change in operating lease items(b) | (10) | (6) |
| Change in working capital | (590) | (565) |
| CASH FLOW FROM/(USED IN) OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | (316) | (460) |
| CASH FLOW FROM/(USED IN) OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS | (43) | (44) |
| TOTAL | (359) | (504) |
| C) CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES: | ||
| Investments in: | ||
| Property, plant and equipment and intangible assets (excluding vehicles sold under buy-back commitments and operating leases) |
(126) | (145) |
| Consolidated subsidiaries and other equity investments | - | (10) |
| Proceeds from the sale of non-current assets (excluding vehicles sold under buy-back commitments) | 2 | 1 |
| Change in receivables from financing activities | 663 | 286 |
| Change in other current financial assets | (18) | 5 |
| Other changes | (72) | 106 |
| CASH FLOW FROM/(USED IN) INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | 449 | 243 |
| CASH FLOW FROM/(USED IN) INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS | 15 | 12 |
| TOTAL | 464 | 255 |
| D) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES: | ||
| Change in debt and derivative assets/liabilities | (155) | (113) |
| Capital increase | (28) | (38) |
| Dividends paid | (31) | - |
| CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | (214) | (151) |
| CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS | 28 | 34 |
| TOTAL | (186) | (117) |
| Translation exchange differences | (5) | (43) |
| E) TOTAL CHANGE IN CASH AND CASH EQUIVALENTS | (86) | (409) |
| Less: Cash and cash equivalent at end of the period – included within Assets held for sale at end of the period |
1 | - |
| F) CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | 2,611 | 1,879 |
Notes:
(a) Cash generated from the sale of vehicles under buy-back commitments, net of amounts included in Profit/(loss), is recognized under operating activities in a single line item, which includes changes in working capital, capital expenditure, depreciation and impairment losses.
(b) Cash from operating lease is recognized under operating activities in a single line item, which includes capital expenditure, depreciation, write-downs and changes in inventory.
Supplemental Consolidated Statements of Operations for the three months ended 31 st March 2024 and 2023 (Unaudited)
| Three months ended 31st March 2024 | Three months ended 31st March 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| (€ million) | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated |
| Net revenues | 3,283 | 145 | (61) (2) | 3,367 | 3,290 | 99 | (27) (2) | 3,362 |
| Cost of sales | 2,701 | 92 | (61) (3) | 2,732 | 2,788 | 54 | (27) (3) | 2,815 |
| Selling, general and administrative costs |
217 | 23 | - | 240 | 200 | 21 | - | 221 |
| Research and development costs | 143 | - | - | 143 | 121 | - | - | 121 |
| Result from investments: | 1 | 5 | - | 6 | (9) | 4 | - | (5) |
| Share of the profit/(loss) of investees accounted for using the equity method |
1 | 5 | - | 6 | (9) | 4 | - | (5) |
| Restructuring costs | 5 | - | - | 5 | 2 | - | - | 2 |
| Other income/(expenses) | (154) | (3) | - | (157) | (85) | 7 | - | (78) |
| EBIT | 64 | 32 | - | 96 | 85 | 35 | - | 120 |
| Financial income/(expenses) | (21) | - | - | (21) | (72) | - | - | (72) |
| PROFIT/(LOSS) BEFORE TAXES | 43 | 32 | - | 75 | 13 | 35 | - | 48 |
| Income tax (expense) benefit | (44) | (9) | - | (53) | (16) | (9) | - | (25) |
| PROFIT/(LOSS) FROM CONTINUING OPERATIONS |
(1) | 23 | - | 22 | (3) | 26 | - | 23 |
| PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX |
(10) | - | - | (10) | (13) | - | - | (13) |
| PROFIT/(LOSS) FOR THE PERIOD | (11) | 23 | - | 12 | (16) | 26 | - | 10 |
Notes:
(1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes Truck, Bus, Defence and Powertrain business units, as well as the holding company Iveco Group N.V. and the Fire Fighting business unit (classified as Discontinued Operations).
(2) Elimination of Financial Services' interest income earned from Industrial Activities. (3) Elimination of Industrial Activities' interest expense to Financial Services.
Supplemental Consolidated Statement of Financial Position as of 31st March 2024 and 31st December 2023 (Unaudited)
| 31st March 2024 | 31st December 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| (€ million) | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | |
| ASSETS | |||||||||
| Intangible assets | 1,828 | 18 | - | 1,846 | 1,824 | 17 | - | 1,841 | |
| Property, plant and equipment | 3,084 | 2 | - | 3,086 | 3,184 | 2 | - | 3,186 | |
| Investments and other non-current | |||||||||
| financial assets: | 94 | 166 | - | 260 | 49 | 161 | - | 210 | |
| Investments accounted for using the equity method |
19 | 153 | - | 172 | 18 | 148 | - | 166 | |
| Equity investments measured at fair | |||||||||
| value through other comprehensive | |||||||||
| income Other investments and non-current |
16 | - | - | 16 | 15 | - | - | 15 | |
| financial assets | 59 | 13 | - | 72 | 16 | 13 | - | 29 | |
| Leased assets | 17 | 62 | - | 79 | 16 | 59 | - | 75 | |
| Deferred tax assets | 665 | 67 | (2) | (6) | 730 | 588 | 71 | (1) (6) | 658 |
| Total Non-current assets | 5,688 | 315 | (2) | 6,001 | 5,661 | 310 | (1) | 5,970 | |
| Inventories | 3,436 | 4 | - | 3,440 | 2,864 | 4 | - | 2,868 | |
| Trade receivables | 244 | 31 | (18) | (3) | 257 | 317 | 33 | (24) (3) | 326 |
| Receivables from financing activities | 600 | 5,631 | (1,286) | (3) | 4,945 | 1,041 | 6,183 | (1,422) (3) | 5,802 |
| Current tax receivables | 150 | - | (27) | (4) | 123 | 167 | 4 | (29) (4) | 142 |
| Other current receivables and financial assets |
427 | 146 | (23) | (2) | 550 | 245 | 140 | (2) (22) |
363 |
| Prepaid expenses and other assets | 116 | 20 | - | 136 | 109 | 21 | - | 130 | |
| Derivative assets | 17 | 1 | (2) | (5) | 16 | 30 | 1 | (4) (5) | 27 |
| Cash and cash equivalents | 2,450 | 161 | - | 2,611 | 2,447 | 251 | - | 2,698 | |
| Total Current assets | 7,440 | 5,994 | (1,356) | 12,078 | 7,220 | 6,637 | (1,501) | 12,356 | |
| Assets held for sale | 327 | - | (22) | (7) | 305 | 59 | - | - | 59 |
| TOTAL ASSETS | 13,455 | 6,309 | (1,380) | 18,384 | 12,940 | 6,947 | (1,502) | 18,385 | |
| EQUITY AND LIABILITIES | |||||||||
| Total Equity | 1,546 | 836 | - | 2,382 | 1,548 | 842 | - | 2,390 | |
| Provisions: | 2,326 | 114 | - | 2,440 | 2,265 | 115 | - | 2,380 | |
| Employee benefits | 407 | 11 | - | 418 | 528 | 16 | - | 544 | |
| Other provisions | 1,919 | 103 | - | 2,022 | 1,737 | 99 | - | 1,836 | |
| Debt: | 1,844 | 5,270 | (1,286) | (3) | 5,828 | 1,624 | 5,898 | (1,422) (3) | 6,100 |
| Asset-backed financing | - | 3,761 | - | 3,761 | - | 3,860 | - | 3,860 | |
| Other debt | 1,844 | 1,509 | (1,286) | (3) | 2,067 | 1,624 | 2,038 | (1,422) (3) | 2,240 |
| Derivative liabilities | 42 | 1 | (2) | (5) | 41 | 42 | 3 | (4) (5) | 41 |
| Trade payables | 3,875 | 26 | (12) | (3) | 3,889 | 3,918 | 34 | (25) (3) | 3,927 |
| Tax liabilities | 130 | 28 | (34) | (4) | 124 | 122 | 27 | (29) (4) | 120 |
| Deferred tax liabilities | 109 | 1 | (2) | (6) | 108 | 29 | - | (1) (6) | 28 |
| Other current liabilities | 3,284 | 33 | (22) | (2) | 3,295 | 3,333 | 28 | (21) (2) | 3,340 |
| Liabilities held for sale | 299 | - | (22) | (7) | 277 | 59 | - | - | 59 |
| Total Liabilities | 11,909 | 5,473 | (1,380) | 16,002 | 11,392 | 6,105 | (1,502) | 15,995 | |
| TOTAL EQUITY AND LIABILITIES | 13,455 | 6,309 | (1,380) | 18,384 | 12,940 | 6,947 | (1,502) | 18,385 |
Notes:
(1) Industrial Activities represents the enterprise without Financial Services, Industrial Activities includes Truck, Bus, Defence and Powertrain business units, as well as the holding company Iveco Group N.V. and the Fire Fighting business unit (classified as Discontinued Operations at 31st March 2024).
(2) This item includes the elimination of intercompany activity between Industrial Activities and Financial Services. (3) This item includes the elimination of receivables/payables between Industrial Activities and Financial Services.
(4) This item includes the elimination of tax receivables/payables between Industrial Activities and Financial Services and reclassifications needed for appropriate consolidated presentation.
(5) This item includes the elimination of derivative assets/liabilities between Industrial Activities and Financial Services.
(6) This item includes the reclassification of deferred tax assets/liabilities in the same jurisdiction and reclassifications needed for appropriate consolidated presentation.
(7) This item includes the elimination of intercompany transactions between Continuing and Discontinued Operations.
Condensed Consolidated Statement of Cash Flows for the three months ended 31st March 2024 (Unaudited)
| Three months ended 31st March 2024 | |||||
|---|---|---|---|---|---|
| (€ million) | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | |
| A) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD | 2,447 | 251 | - | 2,698 | |
| B) CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES: | |||||
| Profit/(loss) from Continuing Operations for the period | (1) | 23 | - | 22 | |
| Amortization and depreciation (excluding vehicles sold under buy-back commitments and operating leases) |
152 | - | - | 152 | |
| (Gains)/losses on disposal of non-current assets (excluding vehicles sold under buy-back commitments) | (1) | - | - | (1) | |
| Other non-cash items | (1) | (6) | - | (7) | |
| (2) | |||||
| Dividends received | 35 | - | (35) | - | |
| Change in provisions | 127 | (1) | - | 126 | |
| Change in deferred income taxes | (2) | 6 | - | 4 | |
| Change in items due to buy-back commitments(a) | (13) | 1 | - | (12) | |
| Change in operating lease items(b) | (2) | (8) | - | (10) | |
| Change in working capital | (588) | (2) | - | (590) | |
| CASH FLOW FROM/(USED IN) OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | (294) | 13 | (35) | (316) | |
| CASH FLOW FROM/(USED IN) OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS | (43) | - | - | (43) | |
| TOTAL | (337) | 13 | (35) | (359) | |
| C) CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES: | |||||
| Investments in: | |||||
| Property, plant and equipment and intangible assets (excluding vehicles sold under buy-back commitments and operating leases) |
(125) | (1) | - | (126) | |
| Consolidated subsidiaries and other equity investments | - | - | - | - | |
| Proceeds from the sale of non-current assets (excluding vehicles sold under buy-back commitments) | 2 | - | - | 2 | |
| Change in receivables from financing activities | (90) | 753 | - | 663 | |
| Change in other current financial assets | (18) | - | - | (18) | |
| Other changes | 638 | (710) | - | (72) | |
| CASH FLOW FROM/(USED IN) INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | 407 | 42 | - | 449 | |
| CASH FLOW FROM/(USED IN) INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS | 15 | - | - | 15 | |
| TOTAL | 422 | 42 | - | 464 | |
| D) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES: | |||||
| Change in debt and derivative assets/liabilities | (45) | (110) | - | (155) | |
| Capital increase | (28) | - | - | (28) | |
| Dividends paid | (31) | (35) | 35 | (2) (31) |
|
| CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | (104) | (145) | 35 | (214) | |
| CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS | 28 | - | - | 28 | |
| TOTAL | (76) | (145) | 35 | (186) | |
| Translation exchange differences | (5) | - | - | (5) | |
| E) TOTAL CHANGE IN CASH AND CASH EQUIVALENTS | 4 | (90) | - | (86) | |
| Less: Cash and cash equivalent at end of the period – included within Assets held for sale at end of the period |
1 | - | - | 1 | |
| F) CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | 2,450 | 161 | - | 2,611 | |
Notes:
(a) Cash generated from the sale of vehicles under buy-back commitments, net of amounts included in Profit/(loss), is recognized under operating activities in a single line item, which includes changes in working capital, capital expenditure, depreciation and impairment losses.
(b) Cash from operating lease is recognized under operating activities in a single line item, which includes capital expenditure, depreciation, write-downs and changes in inventory.
(1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes Truck, Bus, Defence and Powertrain business units, as well as the holding company Iveco Group N.V. and the Fire Fighting business unit (classified as Discontinued Operations).
(2) This item includes the elimination of dividend from Financial Services to Industrial Activities.
Condensed Consolidated Statement of Cash Flows for the three months ended 31st March 2023 (Unaudited)
| Three months ended 31st March 2023 | |||||
|---|---|---|---|---|---|
| (€ million) | Industrial Activities(1) |
Financial Services |
Eliminations | Consolidated | |
| A) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD | 2,100 | 188 | - | 2,288 | |
| B) CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES: | |||||
| Profit/(loss) from Continuing Operations for the period | (3) | 26 | - | 23 | |
| Amortization and depreciation (excluding vehicles sold under buy-back commitments and operating leases) |
136 | - | - | 136 | |
| (Gains)/losses on disposal of non-current assets (excluding vehicles sold under buy-back commitments) | - | - | - | - | |
| Other non-cash items | 9 | (5) | - | 4 | |
| Dividends received | 21 | - | (21) | (2) - |
|
| Change in provisions | (24) | - | - | (24) | |
| Change in deferred income taxes | (2) | 5 | - | 3 | |
| Change in items due to buy-back commitments(a) | (32) | 1 | - | (31) | |
| Change in operating lease items(b) | (2) | (4) | - | (6) | |
| Change in working capital | (517) | (48) | - | (565) | |
| CASH FLOW FROM/(USED IN) OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | (414) | (25) | (21) | (460) | |
| CASH FLOW FROM/(USED IN) OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS | (44) | - | - | (44) | |
| TOTAL | (458) | (25) | (21) | (504) | |
| C) CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES: | |||||
| Investments in: | |||||
| Property, plant and equipment and intangible assets (excluding vehicles sold under buy-back commitments and operating leases) |
(145) | - | - | (145) | |
| Consolidated subsidiaries and other equity investments | (10) | - | - | (10) | |
| Proceeds from the sale of non-current assets (excluding vehicles sold under buy-back commitments) | 1 | - | - | 1 | |
| Change in receivables from financing activities | (3) | 289 | - | 286 | |
| Change in other current financial assets | 5 | - | - | 5 | |
| Other changes | 291 | (185) | - | 106 | |
| CASH FLOW FROM/(USED IN) INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | 139 | 104 | - | 243 | |
| CASH FLOW FROM/(USED IN) INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS | 12 | - | - | 12 | |
| TOTAL | 151 | 104 | - | 255 | |
| D) CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES: | |||||
| Change in debt and derivative assets/liabilities | (31) | (82) | - | (113) | |
| Capital increase | (38) | - | - | (38) | |
| Dividends paid | - | (21) | 21 | (2) - |
|
| CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | (69) | (103) | 21 | (151) | |
| CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES FROM DISCONTINUED OPERATIONS | 34 | - | - | 34 | |
| TOTAL | (35) | (103) | 21 | (117) | |
| Translation exchange differences | (44) | 1 | - | (43) | |
| E) TOTAL CHANGE IN CASH AND CASH EQUIVALENTS | (386) | (23) | - | (409) | |
| Less: Cash and cash equivalent at end of the period – included within Assets held for sale at end of the period |
- | - | - | - | |
| F) CASH AND CASH EQUIVALENTS AT END OF THE PERIOD | 1,714 | 165 | - | 1,879 | |
Notes:
(a) Cash generated from the sale of vehicles under buy-back commitments, net of amounts included in Profit/(loss), is recognized under operating activities in a single line item, which includes changes in working capital, capital expenditure, depreciation and impairment losses.
(b) Cash from operating lease is recognized under operating activities in a single line item, which includes capital expenditure, depreciation, write-downs and changes in inventory.
(1) Industrial Activities represents the enterprise without Financial Services. Industrial Activities includes Truck, Bus, Defence and Powertrain business units, as well as the holding company Iveco Group N.V. and the Fire Fighting business unit (classified as Discontinued Operations).
(2) This item includes the elimination of dividend from Financial Services to Industrial Activities.
| (Unaudited) |
|---|
| Three months ended 31st March 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Truck | Bus | Defence | Powertrain | Unallocated items, eliminations and other |
Total Industrial Activities |
Financial Services |
Eliminations | Total | |
| EBIT | 150 | 21 | 22 | 58 | (187) | 64 | 32 | - | 96 |
| Adjustments: | |||||||||
| Restructuring costs | 2 | - | - | 2 | 1 | 5 | - | - | |
| Other discrete items(1) |
- | - | - | - | 132 | 132 | - | - | 132 |
| Adjusted EBIT | 152 | 21 | 22 | 60 | (54) | 201 | 32 | - | 233 |
| Unallocated items, eliminations |
Total Industrial Activities |
Financial Services |
Three months ended 31st March 2023 Eliminations |
Total | |||||
| Truck | Bus | Defence | Powertrain | and other | |||||
| EBIT | 118 | 13 | 6 | 61 | (113) | 85 | 35 | - | 120 |
| Adjustments: | |||||||||
| Restructuring costs | 2 | - | - | - | - | 2 | - | - | |
| Other discrete items(1) |
- | - | - | - | 59 | 59 | (7) | - | 52 |
ownership of Nikola Iveco Europe GmbH (now renamed EVCO GmbH), as well as €7 million cost related to certain claims arising from the EU Commission's 2016 antitrust settlement decision.
| (Unaudited) | |||||
|---|---|---|---|---|---|
| Reconciliation of Total (Debt) to Net Cash (Debt) (€ million) |
|||||||
|---|---|---|---|---|---|---|---|
| Consolidated | Industrial Activities | Financial Services | |||||
| 31st March 2024 |
31st December 2023(6) |
31st March 2024 |
31st December 2023(6) |
31st March 2024 |
31st December 2023 |
||
| Third party (debt) | (5,612) | (5,768) | (1,153) | (1,191) | (4,459) | (4,577) | |
| Intersegment notes payable(1) | - | - | (682) | (431) | (604) | (991) | |
| (Debt) payable to CNH (2) | (216) | (332) | (9) | (2) | (207) | (330) | |
| Total (Debt) | (5,828) | (6,100) | (1,844) | (1,624) | (5,270) | (5,898) | |
| Cash and cash equivalents | 2,611 | 2,698 | 2,450 | 2,447 | 161 | 251 | |
| Intersegment financial receivables(1) | 45 | - | 627 | 991 | 704 | 431 | |
| Financial receivables from CNH (3) | 66 | 133 | 13 | 7 | 53 | 126 | |
| Other current financial assets(4) | 61 | 43 | 61 | 43 | - | - | |
| Derivatives assets(5) | 16 | 27 | 17 | 30 | 1 | 1 | |
| Derivatives liabilities(5) | (41) | (41) | (42) | (42) | (1) | (3) | |
| Net Cash (Debt) of Continuing Operations | (3,070) | 1,282 | (4,352) | ||||
| Net Cash (Debt) of Discontinued Operations | (51) | (51) | - | ||||
| Total Net Cash (Debt) | (3,121) | (3,240) | 1,231 | 1,852 | (4,352) | (5,092) |
(1) As a result of the role played by the central treasury, debt for Industrial Activities also includes funding raised by the central treasury on behalf of Financial Services (included under Intersegment financial receivables). Intersegment financial receivables for Financial Services, on the other hand, represent loans or advances to Industrial Activities – for receivables sold to Financial Services that do not meet the derecognition requirements – as well as cash deposited temporarily with the central treasury. At 31st March 2024, Intersegment notes payable and Intersegment financial receivables of Industrial Activities and Financial Services also include the balance towards Discontinued Operations.
(2) This item includes payables related to purchases of receivables or collections with settlement in the following days.
(3) This item includes receivables related to sales of receivables or collections with settlement in the following days.
(4) This item includes short-term deposits and investments towards high-credit rating counterparties. (5) Derivative assets and Derivative liabilities include, respectively, the positive and negative fair values of derivative financial instruments.
(6) Balances at 31st December 2023 include the Fire Fighting business.
Reconciliation of Cash and cash equivalents to Available liquidity (€ million) 31st March 2024 31st December 2023 Cash and cash equivalents 2,611 2,698 Undrawn committed facilities 2,000 2,000 Other current financial assets(1) 61 43 Financial receivables from CNH(2) 13 7 Available liquidity 4,685 4,748
(1) This item includes short-term deposits and investments towards high-credit rating counterparties.
(2) This item includes financial receivables from CNH deriving from financing activities and sale of trade receivables.
(Unaudited)
(€ million)
| Change in Net Cash (Debt) of Industrial Activities (€ million) |
||
|---|---|---|
| Three months ended 31st March | ||
| 2024 | 2023 | |
| Net Cash (Debt) of Industrial Activities at beginning of the period(1) | 1,852 | 1,727 |
| Less: Net Cash (Debt) of Industrial Activities from Discontinued Operations at beginning of the period | (34) | (38) |
| Net Cash (Debt) of Industrial Activities from Continuing Operations at beginning of the period | 1,886 | 1,765 |
| Adjusted EBIT of Industrial Activities | 201 | 146 |
| Depreciation and Amortization | 152 | 136 |
| Depreciation of assets under operating leases and assets sold with buy-back commitments | 60 | 57 |
| Cash interests and taxes | (37) | (28) |
| Changes in provisions and similar(2) | (82) | (208) |
| Change in working capital | (588) | (517) |
| Operating cash flow of Industrial Activities from Continuing Operations | (294) | (414) |
| Investments in property, plant and equipment, and intangible assets(3) | (125) | (145) |
| Other changes | (17) | 13 |
| Free Cash Flow of Industrial Activities from Continuing Operations | (436) | (546) |
| Capital increases, dividends and share buy-backs | (31) | - |
| Currency translation differences and other | (137) | (69) |
| Change in Net Cash (Debt) of Industrial Activities from Continuing Operations | (604) | (615) |
| Net Cash (Debt) of Industrial Activities from Continuing Operations at end of the period | 1,282 | 1,150 |
| Net Cash (Debt) of Industrial Activities from Discontinued Operations at beginning of the period | (34) | (38) |
| Free Cash Flow of Industrial Activities from Discontinued Operations | (45) | (47) |
| Other from Discontinued Operations | 28 | 38 |
| Change in Net Cash (Debt) of Industrial Activities from Discontinued Operations | (17) | (9) |
| Net Cash (Debt) of Industrial Activities from Discontinued Operations at end of the period | (51) | (47) |
| Net Cash (Debt) of Industrial Activities at end of the period(1) | 1,231 | 1,103 |
(2) Including other cash flow items related to operating lease and buy-back activities. (3) Excluding assets sold under buy-back commitments and assets under operating leases.
Reconciliation of Net cash provided by (used in) Operating Activities to Free Cash Flow of Industrial Activities
| Three months ended 31st March | |||
|---|---|---|---|
| 2024 | 2023 | ||
| Net cash provided by (used in) Operating Activities from Continuing Operations | (316) | (460) | |
| Less: Cash flows from Operating Activities of Financial Services net of eliminations | 22 | 46 | |
| Operating cash flow of Industrial Activities from Continuing Operations | (294) | (414) | |
| Investments in property, plant and equipment, and intangible assets of Industrial Activities | (125) | (145) | |
| Other changes(1) | (17) | 13 | |
| Free Cash Flow of Industrial Activities from Continuing Operations | (436) | (546) | |
| (1) This item primarily includes change in intersegment financial receivables and capital increases in intersegment investments. |
(Unaudited)
Reconciliation of Adjusted net profit/(loss) from Continuing Operations and Adjusted income tax (expense) benefit from Continuing Operations to Profit/(loss) from Continuing Operations and to Income tax (expense) benefit from Continuing Operations and calculation of Adjusted diluted EPS from Continuing Operations and Adjusted ETR from Continuing Operations (€ million, except per share data)
| Three months ended 31st March | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Profit/(loss) from Continuing Operations | 22 | 23 | ||
| Adjustments impacting Profit/(loss) before income tax (expense) benefit from Continuing Operations (a) | 137 | 54 | ||
| Adjustments impacting Income tax (expense) benefit from Continuing Operations (b) | (6) | (1) | ||
| Adjusted net profit/(loss) from Continuing Operations | 153 | 76 | ||
| Adjusted net profit/(loss) attributable to Iveco Group N.V. from Continuing Operations | 156 | |||
| Weighted average shares outstanding – diluted (million) | 273 | 275 | ||
| Adjusted diluted EPS from Continuing Operations (€) | 0.57 | 0.25 | ||
| Profit/(loss) before income tax (expense) benefit from Continuing Operations | 75 | 48 | ||
| Adjustments impacting Profit/(loss) before income tax (expense) benefit from Continuing Operations (a) | 137 | 54 | ||
| Adjusted profit/(loss) before income tax (expense) benefit from Continuing Operations (A) | 212 | 102 | ||
| Income tax (expense) benefit from Continuing Operations | (53) | |||
| Adjustments impacting Income tax (expense) benefit from Continuing Operations (b) | (6) | (1) | ||
| Adjusted Income tax (expense) benefit from Continuing Operations (B) | (59) | (26) | ||
| Adjusted Effective Tax Rate (Adjusted ETR) (C=B/A) from Continuing Operations | 28% | 25% | ||
| a) Adjustments impacting Profit/(loss) before income tax (expense) benefit from Continuing Operations | ||||
| Restructuring costs | 5 | 2 | ||
| Negative impact from the agreement to transfer the Fire Fighting business | 115 | - | ||
| Spin-off costs | - | 2 | ||
| Acquisition of full ownership of Nikola Iveco Europe GmbH | - | 43 | ||
| Costs related to certain claims arising from the EU Commission's 2016 antitrust settlement | 17 | 7 | ||
| Total | 137 | 54 | ||
| b) Adjustments impacting Income tax (expense) benefit from Continuing Operations | ||||
| Tax effect of adjustments impacting Profit/(loss) before income tax (expense) benefit | (6) | (1) | ||
| Total | (6) | (1) |
Translation of financial statements denominated in a currency other than the Euro
The principal exchange rates used to translate into Euro the financial statements prepared in currencies other than the Euro were as follows:
| Three months ended 31st March 2024 | Three months ended 31st March 2023 | ||||
|---|---|---|---|---|---|
| Average | At 31st March | At 31st December 2023 | Average | At 31st March | |
| U.S. dollar | 1.086 | 1.081 | 1.105 | 1.073 | 1.088 |
| Pound sterling | 0.856 | 0.855 | 0.869 | 0.883 | 0.879 |
| Swiss franc | 0.949 | 0.977 | 0.926 | 0.992 | 0.997 |
| Brazilian real | 5.375 | 5.397 | 5.350 | 5.574 | 5.523 |
| Polish Zloty | 4.334 | 4.319 | 4.348 | 4.709 | 4.676 |
| Czech Koruna | 25.071 | 25.305 | 24.724 | 23.785 | 23.492 |
| Argentine peso(1) | 927.230 | 927.230 | 892.924 | 227.267 | 227.267 |
| Turkish lira(2) | 34.850 | 34.850 | 32.603 | 20.864 | 20.864 |
(1) From 1st July 2018, Argentina's economy was considered to be hyperinflationary. After the same date, transactions for entities with the Argentine peso as functional currency were translated using the closing spot rate.
(2) As of 30th June 2022, the Company applied the hyperinflationary accounting in Türkiye, with effect from 1st January 2022. After 1st January 2022, transactions for entities with the Turkish lira as functional currency were translated using the closing spot rate.