Slides
Page 1
1 June 2025 EARNINGS RELEASE
Page 2
2 • 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 he 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’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 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. DISCLAIMER
Page 3
3 CEO’S STATEMENT
Page 4
4 Dear all, We close the second quarter of the year once again consolidating the strength and efficiency of our business model We have achieved the best half-year results in our history, with operating margins that not only remain at industry-leading levels but continue to grow quarter after quarter. All of this has been accomplished in a demanding environment, under strong currency pressure, where we have managed to increase our net profit thanks to our disciplined and operating structure, capable of withstanding the most volatile conditions. With a strong operating cash flow and debt at its lowest levels, we continue to strengthen our financial position to face the upcoming challenges with confidence. We continue to progress guided by our core values of discipline, ambition, and commitment. CEO’S STATEMENT
Page 5
5 1 June 2025 RESULTS
Page 6
6 RONA 20.5% RETURN ON NET ASSETS JUNE 2024: 19.7% 1 June 2025 RESULTS HIGHLIGHTS JUNE 2025 >> NFD* 925.3 €m 150 €m reduction in last 12 months JUNE 2024: 1.075.2 €m PROFITABILITY 19.0% EBITDA MARGIN 14.3% EBIT MARGIN JUNE 2024: 18.5% and 14.0% OPERATING CASH GENERATION 253.5 €m 69.5% over EBITDA JUNE 2024: 242.5 €m New milestone: semester closed with the best historical result in a highly demanding environment ➢ Management that makes a difference: operational efficiency and financial discipline under a constant focus on value creation ➢ We have once again surpassed 20% RONA after the demanding integration cycle of recent years, consolidating sustained and differential profitability compared to the sector ➢ We generate cash, grow rigorously and strengthen the balance sheet quarter after quarter ➢ Debt at historic lows and solid financial profile to face any scenario * Adjusted NFD data considering 50% of the Chinese JV SAMAP
Page 7
7 MARKET DATA FIRST SEMESTER PRODUCTION ANNUAL PRODUCTION 44.9 46.1 47.4 48.4 45.1 30.5 39.4 38.9 43.6 43.6 44.9 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 88.8 93.1 95.1 94.2 88.9 74.6 77.2 82.3 90.5 89.5 89.9 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 EST 1 JUNE 2025 RESULTS Millions of vehicles produced > Global vehicle production slightly grew in the first semester of 2025, however anticipating a year without global market evolution, with uneven performance across regions: while Europe and North America decline, China, India and Brazil act as growth drivers > In a sector with virtually flat volumes over the past decade, real growth doesn't come from the cycle, but from gaining market share. This is how CIE Automotive manages to double its revenues Source: Vehicle Production IHS - Global Light Vehicle Market 2025 EST: IHS forecast data estimated for the year 2025.
Page 8
8 1 JUNE 2025 RESULTS MARKET CONTEXT The global automotive market is in a phase of DEEP STRUCTURAL TRANSITION, marked by multiple change drivers that influence both production and demand Although the industry has managed to recover some of the ground lost after the 2020 disruption, it has not yet reached the highest level on record from 2017 >> ACCELERATED ELECTRIFICATION Electrification on the rise, but with challenges in infrastructure, cost, and regulatory framework >> PRESSURE ON MARGINS Rising costs of raw materials, energy, and logistics, along with increased regulatory and technological requirements, are forcing manufacturers and suppliers to gain efficiency and invest in innovation >> GEOPOLITICAL VOLATILITY AND SUPPLY CHAIN FRAGILITY Trade tensions, supply chain uncertainty, and ongoing conflicts in various regions continue to create a volatile operating environment In such increasingly challenging environment, companies with adaptability, operational efficiency, and financial strength are the best positioned to maintain margins, generate cash, and continue investing in the future
Page 9
9 MARKET* -0.3% CIE -0.7% -3.7% -3.6% 8.1% 4.0% 11.7% -4.3% -4.5% 14.9% 7.2% -0.8% Market CIE N.AMERICA EUROPE BRAZIL INDIA CHINA -0.6 p.p. +6.8 p.p. -0.9 p.p. +3.2 p.p. -12.5 p.p. -0.4 p.p. Constant Exchange rate Source: Vehicle Production IHS July 2025 (6 months 2025) (% growth in units). Global Light Vehicle Market. * Light vehicle production data weighted by geographical contributions of the CIE MIX Sales evolution 2025 vs 2024 1 JUNE 2025 RESULTS GLOBAL PERFORMANCE AND IN KEY GEOGRAPHIES
Page 10
10 2025 Q2 RESULTS €m Q2 2024 Q2 2025 Turnover 1,025.9 987.2 EBITDA 190.3 187.1 % EBITDA / turnover 18.6% 19.0% EBIT 142.1 139.6 % EBIT / turnover 13.9% 14.1% EBT 125.4 127.9 Net income 90.8 91.8 > The quarter's results reflect solid margin performance, despite an unfavourable currency environment that has impacted reported figures from time to time. This operational adaptability and excellence in execution reaffirms our operational strength and management control across all our geographies. 1 JUNE 2025 RESULTS
Page 11
11 2025 JUNE RESULTS €m JUNE 2024 JUNE 2025 Turnover 2,062.2 2,000.1 EBITDA 381.9 379.1 % EBITDA / turnover 18.5% 19.0% EBIT 288.1 286.0 % EBIT / turnover 14.0% 14.3% EBT 254.7 258.6 Net income 183.9 185.9 > Record results, driven by exceptional operating margins, well above industry standards, and the result of a sustained focus on efficiency and cost control. All this despite a negative currency impact of over 9 €m on EBITDA, further reinforcing the solidity of the business model. 1 JUNE 2025 RESULTS
Page 12
12 2,000.1 €m 379.1 €m CHINA 134.2 6.7% BRAZIL 196.8 9.8% INDIA 333.7 16.7% N.AMERICA 599.8 30.0% EUROPE 735.6 36.8% CHINA 27.9 7.4% BRAZIL 38.3 10.1% INDIA 62.0 16.4% N.AMERICA 118.5 31.3% EUROPE 132.4 34.9% TURNOVER BY GEOGRAPHY EBITDA BY GEOGRAPHY Geographical diversification: homogeneous and solid contribution Data in €m GEOGRAPHICAL BALANCE 1 JUNE 2025 RESULTS
Page 13
13 N.America EBITDA 19.8% EBIT 14.9% Europe EBITDA 18.0% EBIT 12.7% Brazil EBITDA 19.5% EBIT 16.4% India EBITDA 18.6% EBIT 14.8% China EBITDA 20.8% EBIT 15.8% CIE AUTOMOTIVE - EBITDA 19.0% - EBIT 14.3% Profitability does not depend on where, but on how... GEOGRAPHIC PROFITABILITY 1 JUNE 2025 RESULTS > All our geographic regions operate with similar profitability levels, demonstrating that CIE Automotive’s model works with the same strength anywhere in the world
Page 14
14 1,104.4 2,000.1 0,0 500,0 1.000,0 1.500,0 2.000,0 2.500,0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 169.6 379.1 15.4% 16.5% 17.1% 17.9% 19.1% 13.8% 18.7% 17.1% 18.1% 18.5% 19.0% 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 100,0 150,0 200,0 250,0 300,0 350,0 400,0 450,0 500,0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 % EBITDA / turnover 65.6 185.9 0,0 50,0 100,0 150,0 200,0 250,0 300,0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 EBITDA CAGR: 6.1% CAGR: 8.4% CAGR: 9.7% CAGR: 11.0%EBIT x3 113.1 286.0 10.2% 11.4% 12.4% 13.6% 14.2% 8.5% 13.8% 12.5% 13.4% 14.0% 14.5% 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0% 16,0% 80,0 130,0 180,0 230,0 280,0 330,0 380,0 430,0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 %EBIT/turnover TURNOVER NET INCOME A solid track record that we continue to build, quarter by quarter 1 JUNE 2025 RESULTS EVOLUTION MAKING HISTORY Data in €m first semester. Automotive business.
Page 15
15 2 JUNE 2025 BALANCE SHEET
Page 16
16 €m DECEMBER 2024 JUNE 2025 Fixed assets 3,683.9 3,475.4 Net Working Capital (473.8) (458.4) TOTAL NET ASSETS 3,210.1 3,017.0 Equity 1,913.9 1,798.4 Net Financial Debt 1,005.1 940.6 Others (net) 291.1 278.0 TOTAL NET LIABILITIES 3,210.1 3,017.0 Non-recourse factoring 330.9 332.1 2 JUNE 2025 BALANCE SHEET > We continue to strengthen our balance sheet with stable progress and a disciplined approach to capital management
Page 17
17 €m EBITDA 379.1 Financial expenses (26.3) Maintenance Capex (29.7) Tax Payments (55.4) IFRS16 Leases(1) (14.2) OPERATING CASH FLOW 253.5 % EBITDA(2) Growing Capex (67.9) Net Working Capital Variation 3.8 Other movements (52.8) CASH FLOW 136.6 Business combinations and previous acquisitions payments (3) (1.6) Payment of dividends and treasury shares transactions (70.5) NFD VARIATION 64.5 69.5% 1,007.1 1,001.9 1,085.0 940.6 jun-24 jun-25 2,092.1 1,942.5 -144.4 €m >> Financial Debt €m 30/06/2024 31/12/2024 30/06/2025 NFD 1,085.0 1,005.1 940.6 Adjusted NFD(*) 1,075.2 987.5 925.3 DFN/EBITDA(*) 1.45X 1.34X 1.26X (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 IFRS 16 standard (3) Pending payments related to the acquisition of Iber-Oleff Brasil Ltda., completed in 2023 (*) Adjusted NFD and EBITDA data considering 50% of the Chinese JV SAMAP > Net financial debt has fallen to its lowest level in the past six years, dropping below 1,000 €m after the 2019 acquisition cycle Gross financial debt Net financial debt Cash JUNE 2025 CASH FLOW 2 JUNE 2025 BALANCE SHEET
Page 18
18 239.0 367.0 402.8 447.4 463.3 500.0 2020 2021 2022 2023 2024 2025 EST S1 2025 EST: datos estimados 2025 Operating cash generated (€m) 2 JUNE 2025 BALANCE SHEET > 2,200 €m in operating cash generated over the 5-year period, strengthening our capacity for investment, deleveraging, and value creation Total generation Strategic Plan 2021-2025 EST: ≈2,200 €m % Operating cash/EBITDA 2021-2025 EST: >65% STRONG FOCUS ON CASH GENERATION 64.2 196.1 212.1 230.5 242.5 253.5
Page 19
19 1,594.9 1,394.9 1,289.8 1,134.7 1,005.1 940.6 2020 2021 2022 2023 2024 2025 JUN 1.26X 3.59X 1.60 0.52 46% -200.0 -105.1 -155.1 1.98X 0.86 2.37X 1.02 -129.6 1.56X 0.68 1.34X 0.53 1,497 1,528 1,554 1,733 1,791 1,834 -64.5 -654.3 €m -41% 35% 51% 55% 49%50% % GFD at fixed interest rate(**) NFD (€m) NFD/Equity NFD/EBITDA(*) Liquidity (€m) (*) Adjusted NFD and EBITDA data considering 50% of the Chinese JV SAMAP (**) Gross financial debt (GFD) at fixed interest rate STRENGTHENING OUR FINANCIAL POSITION 2 JUNE 2025 BALANCE SHEET
Page 20
20 61.3 87.2 99.2 107.8 110.2 2021 2022 2023 2024 2025 EST Dividends paid >> Shareholder Remuneration (€m) Total Remuneration Strategic Plan 2021-2025 EST: +520 €m * Includes 57.1 €m of share buyback in 2022 2 JUNE 2025 BALANCE SHEET COMMITMENT TO SHAREHOLDERS >> Voluntary Partial Public Tender Offer 2025 * General context • Announcement date: March 20, 2025 • Consideration: in cash • Maximum amount: 278.2 €m • Price per share: €24.00 •Final acceptance: 9.82% > Constant commitment to value creation for shareholders, even in complex environments 2025 EST: estimated 2025 data considering the dividend to be distributed in July as proposed at the end of 2024 Transparent and fair liquidity opportunity Promotion of stock market stability and continuity Strengthening confidence in the company's value >> >> >> The low level of tender offer acceptance supports shareholders confidence in CIE Automotive’s growth potential *Approved by the General Shareholders' Meeting on May 7, 2025, and authorized by the National Securities Market Commission on June 13, 2025. Financial resources available to cover the total amount of the tender offer.
Page 21
21 3 2025 GOALS
Page 22
22 Plan Estratégico 2025 ELECTRIFICATION CIE CULTURE INTERNATIONALIZATION ETHICAL COMMITMENT COMFORT ECO-EFFICIENCY INDUSTRY 4.0 ACTIVE LISTENING OPERATIONAL STRATEGIC LINES AND STRATEGIC ESG LINES STRATEGIC LINES 3 2025 GOALS
Page 23
23 3 2025 GOALS We remain committed to the 79 ESG KPIs defined in the 2025 Strategic Plan for the different business areas, with their specific targets and deadlines Desp4 Target: -2% annual Actual 2021-2024: -15.37% Target 2025: 87.5% Actual 2024: 84.24% Target 2025: >50% GFD & >70% NFD Actual 2024: 68% GFD y 100% NFD Target: -3% annual Actual 2021-2024: -44.76% Target 2025: 100% certified factories Actual 2024: 98% Desp4 Target 2025: >70% Actual 2024: 77% Emissions T CO2e/k€ Energy consumption kWh/k€ Waste management % waste for recycling Health & Safety ISO 45001 Supply chain % local purchases Sustainable borrowings PROGRESS OF ESG COMMITMENTS
Page 24
24 * SBTi: Science Based Targets initiative * CSDDD: Corporate Sustainability Due Diligence Directive * EINF + SI: Non-Financial Information Statement + Sustainability information Short-term, medium-term and net-zero targets validated by SBTi* CIE formalises its commitment to human rights and the environment by aligning with CSDDD* in the management of its supply chain Our disclosures: EINF + SI* in line with new EU sustainability requirements. New environmental and sustainable purchasing policies aligned with new requirements PROGRESS OF ESG COMMITMENTS 3 2025 GOALS Progress on sustainability in 2024
Page 25
25 1 2 3 4 5 PROGRESS IN 2021-2024 ≈90% of goal achieved, despite the impact of inflation on our cost base In line with the goal, having invested an average of ≈5% of sales in these 4 years In line with the goal, having paid corporate income tax ≈2% of sales in these four years ≈90% of goal achieved, having already generated ≈460 €m of operating cash in 2024 >100% of goal achieved, thanks to strong growth organic in all geographies GUIDANCE 2025 Revenue growth ≈20 percentage points above market growth over the five- year period An EBITDA over turnover margin exceeding 19% in 2025 CAPEX ≈ €1 billion over the five-year period, ≈5% of revenue Annual income tax payment ≈2% of revenue Sustained generation of cash from operations equivalent to ≈65% of EBITDA, implying ≈500 €m starting in 2025 3 2025 GOALS PROGRESS OF OPERATIONAL COMMITMENTS
Page 26
26 4 CIE IN STOCK EXCHANGE
Page 27
27 SHARE PRICE PERFORMANCE CIE AUTOMOTIVE 4 CIE IN STOCK EXCHANGE IBEX 35CIE Automotive STOXX Europe 600 Automobiles & Parts (1) (1) STOXX Europe 600 Automobiles & Parts includes: OEMS: BMW ST, Mercedes Benz Group, Ferrari NV, Stellantis, Porsche, Renault & Volkswagen. SUPPLIERS: Forvia, Michelin, Continental, Nokian, OPmobility, Rheinmetall, Valeo -60% -40% -20% 0% 20% 40% 60% ➢ As a result of the voluntary public tender offer launched at a price of €24/share and, pending the outcome, the stock has stagnated around that price (~€24) during the second quarter. ➢ In a complex macroeconomic, geopolitical, and sectoral context, CIE Automotive achieves excellent results quarter after quarter, confirming its resilience and consolidating its position as one of the most profitable companies in the industry. ➢ In this second quarter of 2025, CIE Automotive maintained these excellent results, in line with the first quarter. However, the stock price reflects a year-to-date performance of (-4%). ➢ The strong disconnect between stock market performance and the company’s solid fundamentals remains evident. Analysts support this view, with an average target price close to €32, significantly above the current share price.
Page 28
28 5 CLOSING REMARKS
Page 29
29 Given the positive evolution of the Plan from the beginning of 2021 until the end of this first semester of 2025 and trusting that our clients respect or can respect their forecasts, we can confirm the maintenance of all our 2025 commitments Exceptional results in a challenging environment Balanced profitability at a global level Operating cash driving value creation Robust balance sheet with continuous improvement >> >> >> >> Strong commitment to shareholders>> JUNE 2025 CLOSING REMARKS 5 CLOSING REMARKS
Page 30
30 APPENDIX
Page 31
31 PERFORMANCE MEASURE DEFINITION EBITDA Net Operating Income + Depreciation Adjusted EBITDA Annualized EBITDA of 12 last months including 50% of the EBITDA of Chinese JV SAMAP which, 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 partner agreements reached Gross Financial Debt (GFD) Debt with banks and other financial institutions Operating Cash Flow EBITDA – IFRS16 Leases - Maintenance Capex – Financial expenses paid - Tax payments Cash Flow Operating Cash Flow – Growing Capex - Net Working Capital Variation - Other movements (including the forex effect in NFD) Cash Cash and equivalents including Other Financial Assets Liquidity Cash and undrawn credit lines and loans RONA “Return on Net Assets” EBIT Last annualized 12 Months/ Net Assets (Fixed Assets + Net Working Capital – Goodwill not associated to cash outs) APPENDIX APMs – ALTERNATIVE PERFORMANCE MEASUREMENT
Page 32
32