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First disclosure of features and plans for its five business units: trucks, buses, defense, propulsion systems and money services.
Transfer of the MAGIRUS Firefighting Business Unit to Mutares; Closure until January 2025
The main monetary targets of the business activities for 2028 include: net income of approximately €19 billion, adjusted EBIT margin of 7 to 8%, free cash flow of around €900 million. At group level: Adj. Net revenue source of around €900 million and diluted EPS of more than €3 in line with participation
New Partnership with Ford Otosan Announced on Heavy-Duty Truck Cab Structures
Expanded and Deep Strategic Partnership with Hyundai Motor Company
Turin, 14 March 2024. The Iveco Group presents a new strategic plan, outlining its objectives until 2028, at the Corporate Capital Markets Day held in Turin, Italy.
The decision to organise a Capital Markets Day two years after its first Investor Day in November 2021, builds on the Group’s recent achievements: by the end of 2023, the Iveco Group had already met its key targets for 2026, or earlier than last year. . trajectory.
In its last strategic plan in 2021, the Iveco Group set out to achieve a global net turnover from commercial activities of between €16. 5 billion and €17. 5 billion by 2026 and achieved €15. 9 billion by the end of 2023, proving to be fully on track. The adjusted EBIT margin for the commercial business for 2026 was expected to reach between 5 and 6 percent (2019: 3. 6 percent), which the company already achieved in 2023. For loose money from commercial activities, the Iveco Group had targeted €500 million in 2026 and has already achieved more than €400 million in 2023, ahead of the previous target trajectory.
These effects are largely attributable to the company’s specific delivery and “one team” approach, which unites its global workforce of more than 36,000 workers toward a not unusual goal.
Gerrit Marx, CEO of the Iveco Group, said: “The first of our values states that ‘we go beyond the obvious’. It embodies the soul of our Group and obviously reflects our ambition to consciously overcome barriers and courageously embark on new paths. We have shown that we can deliver on the promises we make. Today, we are embarking on a new plan, an acceleration of our product portfolio, stronger and more diversified partnerships, and an acceleration of our sustainability journey. We will deliver on those promises because the paths and opportunities before us and our five business sets are exciting and limitless. In addition, while we take advantage of internal opportunities, we will continue to explore difficult opportunities externally. We will go beyond the obvious.
Key strategic pillars for long-term growthThe Group’s adventure is based on 4 key pillars: innovation, monetary discipline, partnerships and sustainability. These pillars are the driving force behind the good fortunes of each Business Unit and enable the entire Group to jointly face external challenges. demanding situations and specific expenses.
InnovationThe Iveco Group fully supports the investments it has made since operating as an independent company and will invest more than €5. 5 billion between 2024 and 2028 to stay ahead of the rapid innovation curve.
The company is driving innovation in three key areas: energy transition, artificial intelligence (AI) and software-defined vehicles, and autonomous driving.
In terms of energy transition, the company reaffirms its goal of achieving 0 net carbon emissions by 2040. The Iveco Group’s multi-propulsion approach, which includes eco-friendly and zero-emission solutions, aims at this goal. These will be supported through state-of-the-art salaries. on-the-fly business models, such as GATE – Green
Artificial intelligence is at the heart of the Iveco Group’s visitor-centric innovations, with generative AI enabling significant advancements in spaces such as knowledge analysis, human-to-human interaction, and software development. Software-defined vehicles, powered by AI algorithms, are poised to revolutionize the industry, simplify vehicle upgrades, and increase visitor productivity. To stay ahead of these trends, the Iveco Group has opened its own research and software laboratory, with plans to have a team of 500 dedicated engineers in the coming years.
The Iveco Group is already testing autonomous driving on public roads in Europe. Critical to this progression and immediate commercialization is collaboration with PLUS, a global provider of autonomous truck technologies, along with other truck OEMs. These advancements are already providing highly automated driving force. powertrain assistance systems and fleet owners today.
The Iveco Group is committed to expanding its money-making potential and reducing seasonality where possible. At the same time, the continued focus on optimization and tariff power will further reduce product prices and an SG structure.
The Company’s previous operational excellence program set a savings target of €1 billion over the 2019-2026 period. By the end of 2023, the Iveco Group is in line with its target, having allocated €300 million of operational efficiencies, as well as an additional €600 million in cost-effectiveness innovations in terms of volumes, mix and price. With the new plan, starting in 2024, the company is committed to achieving €1 billion in return, divided into €600 million until 2026 and an additional €400 million until 2026. 2028. This will be achieved through the implementation of a comprehensive set of initiatives, aimed at reducing product complexity, optimizing sourcing in cheap countries, maximizing production efficiency, and leveraging various commercial and technical levers.
In terms of investments, the 5,500 million euros planned for the coming years are divided between Capex and R
PartnershipsThe Iveco Group wants to partner with agile and like-minded organisations to drive innovation.
The Iveco Group is broadening and deepening its partnership with Hyundai Motor Company in the field of heavy-duty electric truck solutions, adding battery electric trucks and mobile electric fuel trucks for European markets. Leveraging the party’s complex technologies and strengths, the two corporations hope to drive the transition to a sustainable future.
Since the start of their partnership in March 2022, Hyundai Motor and the Iveco Group have achieved a number of important milestones. Most notably, in September 2022, they presented the first IVECO eDaily fuel-powered mobile electric vehicle at the IAA Transportation event in Hanover. followed by the presentation of the IVECO BUS E-WAY H2 in October 2023 at Busworld in Brussels. More recently, in February this year, the two corporations announced the signing of an agreement to supply Europe with an all-electric light commercial vehicle with IVECO. Insignia, based on Hyundai’s eLCV platform.
Also today, IVECO and Ford Trucks, Ford Otosan’s heavy-duty vehicle logo, announce a non-binding Memorandum of Understanding (MoU) to explore collaboration in evolving a non-unusual cab design for heavy-duty trucks in line with the new regulations that will come into effect in 2028/2029. This is an initial step in the co-progression of new products and technologies, spanning parts and systems within the cab.
These partnerships offer a triple benefit: they reduce prices and expenses for all partners involved, ensure compliance and competitiveness, and provide essential vehicle capability without passing on excessive prices to customers. These recently announced partnerships are not yet reflected in the plan with the expected positive effects on investments and the economy.
SustainabilitySustainability is a key pillar for the Iveco Group. The Group’s movements aim to have a positive impact on its employees and society at large.
The Company achieved some of its key sustainability objectives well ahead of its 2026 targets. The Iveco Group has exceeded the target of 60% water recycling at its global facilities, reaching 64% by the end of 2023. By the end of the year Last, 24 percent of leadership positions were held by women, up from 18. 2% in 2021 and already exceeding the goal of 60% water recycling in global facilities. The target for 2026 was set at 23%. Net Promoter Score for visitors increases up to 20% compared to 2021, achieving the goal three years ahead of schedule. The Group is also on track to meet its goals of reducing injuries well ahead of schedule.
Building on these early achievements, the Iveco Group has set itself even more sustainability goals, including:
By 2026, 100 percent of total electricity consumption will come from renewable sources. The target is between 2030 and 2026;
The Group aims to recycle 75% of commercial water from the factories of international companies by 2026, up from the previous target of 60%;
The new goal of gender parity until 2028 is for 30% of leadership positions to be held by women. The Group will broaden and broaden its scope of action to reach all female workers at all stages of their careers.
“Unlimited routes” for the Group and its business unitsIveco Group is introducing a new design of functionality reports across business units, which provides greater clarity on the individual functionality of powertrains, buses, defence, trucks and money services. Each unit has its own “unlimited path,” reflecting its functionality, long-term goals, and potential benefits.
The Fire Fighting Business Unit (organised under the MAGIRUS logo) is not included in the new Iveco Group’s new Strategic Business Plan, nor in the corresponding monetary forecasts. As the Group announced to the market, it has just signed a definitive agreement for the transfer of its ownership to Mutares, an indexed investment entity specialising in similar situations. This is a new break in the long history of the logo that “has been at the service of heroes since 1864”, allowing it to be even more competitive in its single market.
POWERTRAIN (FPT Industrial brand) The Powertrain business unit is one of the three most sensible independent engine brands in the world. The unit’s focus on internal combustion engines (ICE) and electronic powertrains uniquely positions it for the transition to select fuels and electrification, making it one of the three most sensible independent engine brands in the world. Ensure a sustainable and profitable future. With a diversified portfolio and a strong capacity for innovation, the Powertrain Business Unit aims to achieve between €5. 5 billion and €6 billion in net sales by 2028 (previous target of around €5 billion by 2026). ) and targets double-digit profitability, meaning an expansion of the adjusted EBIT margin from around one hundred initial issuances per year, to 9. 5-10. 5% until the end of 2028.
BUS (IVECO BUS and HEULIEZ brands)The Bus Business Unit is based on its wide diversity of cars in all segments and a strong concentration on local communities. An investment of €600 million in state-of-the-art technologies between 2024 and 2028 will allow the unit to remain at the forefront of the sector, especially in the zero-emission car segment. The Bus Business Unit targets between €3 billion and €3. 5 billion of net profit until 2028 and is determined to build the duration of its business and optimize its operations to almost double its profitability compared to 2022, achieving 7-8% until 2028.
DEFENCE (IDV and ASTRA brands) Within the Iveco Group, Defence operates as an independent and self-sufficient Business Unit, focused on technological innovation, operational excellence and strategic partnerships. Its strengths lie in its ability and ability to adapt to meet expressed wishes. of its customers, thus advancing responsibly in many countries around the world in the protection of their communities. The Business Unit is accelerating its growth, thanks to an order book that already exceeds 4,000 million euros. It expects to reach between €1. 2 billion and €1. 3 billion in net sales through 2028, with an adjusted EBIT margin of 12-13%.
The Trucks Business Unit aims to capitalise on its leadership in the light commercial vehicle segment with the Daily and eDaily, and in the medium truck segment with the prominent Eurocargo, while improving the margins of its heavy-duty vehicles. segment with the S-Way models and S-eWay. La technological innovation, the monetary field and strategic partnerships will be the driving forces of its success. The unit targets net sales of between €11 billion and €11. 5 billion through 2028 with an adjusted EBIT margin of around 7%.
FINANCIAL SERVICES (IVECO CAPITAL and GATE brands)The Financial Services Business Unit aims to maintain existing successes and pioneer new sustainable mobility solutions, adding those provided through GATE, the local platform one hundred percent electronic and virtual for medium-sized companies. and long-term projects. Term lease of electric advertising cars on a pay-per-use basis. The Unit aims to increase its captive portfolio to between €8 billion and €9 billion compared to €6. 9 billion in 2023, with adjusted EBIT of between €130 million and €150 million through 2028.
Iveco Group’s monetary targets for 2028Based on the individual ambitions of its business units, the Iveco Group announces ambitious targets for 2028. These goals reflect the Group’s commitment to continued expansion and confidence in its ability to deliver on its promises.
The Iveco Group’s monetary targets for 2028 are, for Industrial Activities:
Net of approximately €19 billion;
Adjusted EBIT margin of 7-8%;
Free money of approximately €900 million.
At the group level:
Adjusted net revenue source of approximately €900 million;
Adjusted diluted EPS above €3 in line with the action.
The monetary figures presented exclude the Fire Fighting Business Unit since, as discussed above, the Iveco Group has signed a definitive agreement for the transfer of its ownership.
The presentation and Q&A of the Iveco Group’s Capital Markets Day will be broadcast live (more details at this link) and the replay will be archived on the company’s website. The presentation will also be posted on the www. ivecogroup. com Group’s website as soon as as the segment is delivered, in the committed segment, Investors/Events segment.
Financial reporting outside EU IFRS The Iveco Group monitors its operations through the use of various monetary measures outside of EU IFRS. Iveco Group’s control believes that these non-EU IFRS monetary measures provide useful and applicable data related to their operational effects and objectives and the ability of readers to assess the monetary functionality and monetary condition of the Iveco Group. Management uses these measures outside of EU IFRS to identify operational trends, as well as to make decisions related to long-term expenses, resource allocation and other operational decisions, as they provide greater transparency in relation to our core operations. These monetary measures outside of EU IFRS do not have a standardised meaning under EU IFRS and are unlikely to be comparable to other measures of the same name used through other corporations and are not intended to be a replacement for measures of monetary functionality and monetary condition prepared in accordance with IFRS-EU. The Iveco Group’s non-IFRS-EU monetary measures are explained below:
Adjusted EBIT: explained as EBIT before restructuring prices and non-recurring parts. In particular, non-recurring parts are disclosed parts that are considered by the control to be infrequent or discrete occasions that are infrequent in nature and reflect ongoing operational activities.
Adjusted income: explained as the result of the period, less restructuring prices and non-recurring items, of taxes.
Adjusted diluted EPS: calculated by dividing the adjusted net revenue source attributable to Iveco Group N. V. through a weighted average number of notable ordinary percentages and the consistent period that takes into account the prospective notable ordinary percentages resulting from the percentage-based payment of the Iveco group’s rewards, when the inclusion does not have an anti-dilutive effect. When the Iveco Group provides guidance on adjusted diluted EPS, the Group does not provide guidance on consistent earnings on a consistent percentage basis as will come the EU IFRS measure. with potentially drastic pieces that haven’t happened yet and that it’s hard to expect with moderate certainty before the end of the year.
Adjusted Income Tax Source: means source of income tax minus the tax effect of restructuring expenses and non-recurring items, as well as non-recurring tax expenses or benefits.
Adjusted Effective Tax Rate (ESTR): This is calculated by dividing (a) the adjusted source of income taxes by (b) the source of income (loss) before the source of income taxes, less restructuring expenses and non-recurring items.
Net money (debt) and net money (debt) from business activities: Net money (debt) is explained as overall debt plus derivative liabilities, net of money and money equivalents, derivative assets and other existing monetary assets (mainly existing securities, term deposits and investments with highly rated counterparties) and CNH Industrial’s monetary receivables arising from financing activities and the sale of accounts for collect from the industry. The Iveco Group provides the reconciliation of net money (debt) to overall (debt), which is the Maximum Directly Comparable IFRS-EU monetary measure included in the Group’s consolidated monetary position. Due to the other resources of the cash flows used for the payment of debt between the Industrial Business and the Financial Services business (via operating money for the Industrial Business and via the collection of accounts receivable financing for Financial Services), the control separately evaluates the functionality of the cash flow of the Industrial Operations using Net Cash (Debt) from the Industrial Operations.
Free cash flow from industrial activities (or industrial free cash flow): refers to industrial activities only and is calculated as consolidated money from operating activities minus: money from financial services operating activities; investments in property, plant and apparatus and intangible assets from Industrial Activities; as well as other cross-sectoral adjustments and eliminations.
Available liquidity: money and money equivalents, limited money addition, unused medium-term unsecured committed credit lines, other existing monetary assets (primarily short-term securities, short-term deposits, and investments to highly-rated counterparties), and CNH Industrial’s monetary receivables to industry. Accounts receivable financing and sale activities.
Cautionary statements other than statements of old fact contained in this press release, which add competitive strengths; business strategy; long-term monetary condition or consistent relationship effects; budgets; projections relating to earnings, income, stock gains (or losses), capital expenditures, dividends, liquidity, capital distribution or other monetary matters; costs; and management’s plans and objectives related to consistent operations and products, are forward-looking statements. Forward-looking statements are not promises of long-term performance consistent with performance. Rather, they are based on existing consistent views and assumptions and involve known and unknown hazards, uncertainties and other points, many of which are difficult to expect and/or are beyond the Company’s control. If any of these dangers and uncertainties materialize (or occur with a greater degree of severity than the Company’s forecasts and/or expectations) or if other assumptions underlying any of the forward-looking statements prove incorrect, or real progress. They only differ materially. any long-term effects or developments expressed or implied by forward-looking statements, which are rarely based on estimates and insights obtained from third parties (such estimates and insights are reviewed). Except as otherwise required by applicable regulations, the Iveco Group explicitly disclaims any objective to provide, update or revise any forward-looking statements contained in this press release to reflect any replacement in expectations or any replacement in events, situations or cases. on which such forward-looking statements are based. All forward-looking statements made by the Iveco Group or users acting on its behalf are explicitly qualified in their entirety by the cautionary statements contained herein. The data contained in this press release should not be relied upon as a consultant for consistent long-term compliance. To the fullest extent permitted by applicable law, no representation or warranty of the Company, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the data or Revisions contained. in this document. Press release. No member of the Company, its affiliates, directors, advisors, employees and representatives, or any user acting on its behalf, shall have any liability (whether through negligence or otherwise) for any loss arising from any use of this communication. of press. . press or its contents or in any other way that arises from any link with said materials. This press release does not constitute an investment recommendation or a solicitation, recommendation, invitation or offer to acquire or sell any monetary product and/or any type of monetary facility within the meaning of the laws of any country or state. Further data relating to the Iveco Group is included in the public reports and presentations of the Iveco Group in accordance with applicable regulations, adding points that may potentially have material effects on the monetary effects of the Iveco Group.
Iveco Group N. V. (EXM: IVG) combines other people and exclusive logos that reinforce its business and its project to move towards a more sustainable society. The 8 logos constitute a major force in its express business: IVECO, a pioneering advertising vehicle logo that designs, manufactures and markets heavy, medium and light trucks; FPT Industrial, a global leader in a wide variety of complex powertrain technologies in the agricultural, structural, marine, power generation and advertising vehicle industries; IVECO BUS and HEULIEZ, logos of public and premium maritime transport buses and coaches; IDV, for highly specialized defense and civil cover teams; ASTRA, a leader in the segment of heavy-duty quarry and large-frame automobiles; MAGIRUS, the industry-renowned manufacturer of automobiles and firefighting equipment; and IVECO CAPITAL, the financial company that backs them all. The Iveco Group employs more than 36,000 people worldwide and has 20 advertising sites and 29 research centres.
Media contacts:Francesco Polsinelli, Tel. : 39 335 1776091Fabio Lepore, Tel. : 39 335 7469007E-mail: mediarelations@ivecogroup. com
Investor Relations: Federico Donati, Tel. : 39 011 0073539 E-mail: Investor. relations@ivecogroup. com
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