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Vitesco Technologies Group AG
Investor Presentation • Nov 11, 2021
1025_ip_2021-11-11_1106c9e8-b6f4-40e4-ac2f-2b636f5e635c.pdf
Investor Presentation
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VITESCO TECHNOLOGIES
Q3 2021
Regensburg, November 11, 2021
Public
AGENDA
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- Q3 HIGHLIGHTS AT A GLANCE KEY FIGURES 1 2
- MARKET DEVELOPMENT 3
- SALES AND ADJUSTED EBIT DEVELOPMENT
- CASH FLOW PROFILE
- LIQUIDITY PROFILE 6
- BALANCE SHEET STRUCTURE
- OUTLOOK FOR FY 2021 8
Q3 HIGHLIGHTS AT A GLANCE
1,914
€ million sales in Q3 2021 – continued market outperformance in a challenging environment
€ million electrification order intake during Q3 2021
22.8€ million 1.2 %
adjusted EBIT – highly influenced by semiconductor crisis
Phasing out CM
Progress according to plan
BU € billion total order intake during Q3 2021
Adj. EBIT before amortization of intangibles from PPA, consolidation and special effects. CM BU: Contract Manufacturing Business Unit.
KEY FIGURES
VITESCO TECHNOLOGIES GROUP (€ MN) HIGHLIGHTS AND RECENT
| Q3 2020 | Q3 2021 | Delta | |
|---|---|---|---|
| Sales | 2,200.2 | 1,913.8 | -286.4 |
| % growth | - | -13.0% | |
| Adj. EBIT | 102.2 | 22.8 | -79.4 |
| % margin | 4.7% | 1.2% | -3.5pp |
| EBIT | -1.4 | -51.9 | -50.5 |
| % margin | -0.1% | -2.7% | -2.6pp |
| Capex1 | 83.4 | 118.2 | 34.8 |
| % of sales | 3.8% | 6.2% | 2.4pp |
| Free Cash Flow | 340.4 | -213.2 | -553.6 |
| % margin | 15.5% | -11.1% | -26.6pp |
| Equity Ratio | 33.9% | 37.1% | 3.2pp |
DEVELOPMENTS
Sales
Impact from FX: +1.9%
Adjusted EBIT
Adjusted EBIT burdened by exceptional items related to semiconductor shortage
Order Intake of €2.6 bn
Electrified business order intake: €770 mn, thereof €640 mn in ET BU
Free Cash Flow
Increased inventory level and higher spending driving negative free cash flow in Q3
Equity Ratio
Equity ratio benefits from settlement of former intercompany A/R and A/P with Continental
Adj. EBIT before amortization of intangibles from PPA, consolidation and special effects. 1 Capex excluding right of use assets (IFRS 16).
MARKET DEVELOPMENT
VITESCO TECHNOLOGIES
LIGHT VEHICLE PRODUCTION1
| Q3 Production | Q3 ∆ YoY | |
|---|---|---|
| Europe | 3.0 | -29.7% |
| North America | 3.0 | -25.2% |
| China | 5.3 | -16.8% |
| Rest of World |
5.1 | -11.6% |
| Worldwide | 16.5 | -19.7% |
(MN UNITS) WEIGHTED YEAR-ON-YEAR GROWTH RATES
HIGHLIGHTS & COMMENTS
- Semiconductor shortages led to lower light vehicle production worldwide
- OEM production focus was on electric vehicles and premium platforms
HIGHLIGHTS & COMMENTS
- VT Group outperformance driven by core business development
- Asian (ex China) and European (ex Germany) sales contributing to outperformance
- 1 Based on IHS Markit, Light Vehicle Production Forecast as of 10/2021. 2 Light vehicle production weighted according to Vitesco Technologies' regional sales distribution.
VITESCO TECHNOLOGIES GROUP
HIGHLIGHTS & COMMENTS
- Organic sales 9pp above light vehicle production
- Tailwind from currency effects amounting to 1.9pp
- Core Technologies sales at €1,226 mn (PY: € 1,359 mn) and 0.8% margin (PY: 6.7%)
- Burden associated with semi supply constraints of €40 mn
- Decremental margin of 27.7% amid semiconductor shortages
- Margin ex. Electrification Technology business unit of 5.2%
Organic Growth. Adj. EBIT before amortization of intangibles from PPA, consolidation and special effects.
ELECTRIFICATION TECHNOLOGY
HIGHLIGHTS & COMMENTS
- Electrification Technology business unit less affected by global semiconductor shortage
- Positive top-line development in Europe could not compensate for worldwide decreasing volumes
- Adjusted EBIT burdened by lower sales volumes, R&D expenses and ramp-up costs
- ET BU order intake of €640 mn in Q3 2021, overall electrification order intake in Q3 of €770 mn
Organic Growth. Adj. EBIT before amortization of intangibles from PPA, consolidation and special effects.
ELECTRONIC CONTROLS
HIGHLIGHTS & COMMENTS
- Top- and bottom-line development burdened by lost sales and additional costs due to semiconductor shortage
- Sales development profited from FX tailwinds of 2.0pp
- Decremental margin of 21.1% despite additional burden related to semiconductor shortage of ~€16 mn
- Core Technologies sales at €503 mn (PY: €649 mn) and 4.1% margin (PY: 10.9%)
SENSING & ACTUATION
HIGHLIGHTS & COMMENTS
- Semi shortage with lower effects to top-line development due to utilization of broker parts
- FX tailwind of 1.2pp included in sales development
- Positive top-line development in Europe (ex Germany) and China could not compensate for lower sales in Germany and North America
- Adjusted EBIT burden related to semiconductor shortage of ~€24 mn
- Core Technologies sales at €603 mn (PY: €586 mn) and 9.7% margin (PY: 13.7%)
Organic Growth. Adj. EBIT before amortization of intangibles from PPA, consolidation and special effects.
CONTRACT MANUFACTURING
HIGHLIGHTS & COMMENTS
- Top line development in line with Contract Manufacturing phaseout plan
- Operating income development neglectable on group level since similar amount of goods is being purchased from Continental Contract Manufacturing
- Adjusted EBIT development represents arms-length relationship between Vitesco Technologies and Continental
- Previous year's higher adjusted EBIT margin mainly driven by cost savings and carve-out related special effects
CASH FLOW PROFILE
Free cash flow defined as operating cash flow minus investing cash flow. 9M: Nine months.
LIQUIDITY PROFILE
HIGHLIGHTS & COMMENTS
Available Liquidity
- Increase in cash to €584 mn at the end of September despite cash burn in Q3 2021
- Main driver: end of cash pooling with Continental
Unutilized Credit Lines
- Consisting of undrawn RCFs (€750 mn and €250 mn)
- RCFs available until Q3 2024
- 2-year prolongation possible
Financial Covenants of the RCF
- Adj. EBITDA
- Minimum liquidity
- Leverage ratio
RCF: Revolving Credit Facility. Adj. EBITDA before consolidation and special effects.
BALANCE SHEET STRUCTURE
KEY BALANCE SHEET ITEMS
Increase in equity ratio to 37%
LTM: Last twelve months. Adj. EBITDA before consolidation and special effects.
OUTLOOK FOR FY 2021
ANTICIPATED CORPORATE AND MARKET DEVELOPMENT
VITESCO TECHNOLOGIES GROUP (€ MN) MARKET OUTLOOK1
| 2020 | 2021E | |
|---|---|---|
| Sales Adj. EBIT margin |
8,028 -1.1% |
8,200 to 8,400 1.5% to 1.7% |
| Special Effects | 223 | 160 to 190 |
| Capex Ratio | 5.3% | 5.2% to 5.5% |
| Free Cashflow | -456 | 70 to 120 |
1 Light Vehicle Production Forecast for changes of FY 2021 production compared to FY 2020.
- The future is electric. 1
- We are well positioned. 2
- We have a clear vision and a resolute plan. 3
- We self-fund the transformation. 4
INVESTOR RELATIONS TEAM CONTACT DATA
Heiko Eber - Head of Investor Relations Phone: +49 941 2031-72348 eMail: [email protected]
Max Westmeyer - Investor Relations Manager Phone: +49 941 2031-8823 eMail: [email protected]
Jens von Seckendorff - Investor Relations Manager Phone: +49 941 2031-6381 eMail: [email protected]
Andreas Kuhn - Data Researcher & Analyst Phone: +49 941 2031-5999 eMail: [email protected]
UPCOMING EVENTS
FINANCIAL CALENDAR
| ਹੈ। ਹਵਾਲੇ ਵਿੱਚ | |
|---|---|
Quarterly Statement Q3 2021 November 11, 2021
Preliminary FY 2021 Results February 2022
Annual Report FY 2021 March 2022
Quarterly Statement Q1 2022 May 2022
Annual General Meeting May 05, 2022
CORPORATE EVENTS ROADSHOWS AND CONFERENCES
| Roadshow Scandinavia |
|---|
| November 16 & 17, 2021 |
| दिनि | 1 |
|---|---|
Roadshow Switzerland November 23 & 24, 2021
| :014 |
|---|
Deutsche Bank AutoTech Conference (virtual) December 9, 2021
DISCLAIMER
This presentation may contain forward-looking statements, estimates, opinions and projections with respect to anticipated future performance of Vitesco Technologies Group AG. These forward-looking statements can be recognized by terms such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "will" or words with similar meaning. Vitesco Technologies Group AG has made such forward-looking statements on the basis of the information available to it and assumptions it believes to be reasonable. The forward-looking statements and information may involve risks and uncertainties, and actual results may differ materially from those forecasts. Forward-looking statements 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. Any forward-looking statements included herein only speak as at the date of this presentation. Vitesco Technologies Group AG does not assume any obligation to update such forward-looking statements and to adapt them to future events or developments.
This presentation includes certain financial measures such as EBIT, adjusted EBIT, adjusted EBITDA, order intake or net debt, which are not defined by International Reporting Standards (IFRS). These alternative performance measures should be considered in addition, but not as a substitute for the information prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or other generally accepted accounting principles. Other companies that report similarly titled alternative performance measures may calculate them differently. An explanation of the alternative performance measures can be found in chapter 2.8 of the prospectus of Vitesco Technologies Group AG. Rounding differences may occur.
This presentation is for information purposes only. It is not intended to constitute investment advice or an offer to sell, or a solicitation to buy, any securities.
THANK YOU
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