2016-2020 Business Plan
|2016-2020 Business Plan
|Growth||–||2x the market||~ 4x the market|
|EBITDA margin||15.4%||> 17%||> 18%|
|EBIT margin||10.2%||~ 13.0%||> 14.0%|
|NET PROFIT||€118 million||2x||2.5x|
|RONA*||16%||> 20%||~ 23%|
|Net debt/EBITDA**||2.0x||~ 0.7x||~ 1.0x|
|Operating cash flow generation***||50%||~ 50%||~ 55%|
|Annual capex||7.5%||~ 7%||~ 7.5%|
**Net debt = Bank and other borrowings less cash and cash equivalents – Other current and non current financial assets.
***Operating cash flow generation = (EBITDA – finance costs – maintenance capex – tax) / EBITDA.
Foundations of the 2016-2020 business plan
- Customer, geographical and product/technology diversification.
- Strategic focus on process efficiency.
- Decentralisation and simplification of the chain of command. Lean structure.
- Long-term investment in human capital.
- Opportunistic M&A strategy without losing sight of the need to carefully select and closely control all types of investments.
- Industrial vocation with financial mentality.
- Reputation management.
- Progress on the digitalisation front towards factories 4.0.
Growth drivers in 2018
- Strategic commitment to the higher potential regions and to R&D effort
- Arrangement of new financing to fund growth
Strategic commitment to the higher potential regions and to R&D effort
- Mexico: New greenfield project in Puebla.
- Brazil: Integration of CIE Autometal Minas factory (former Zanini Brazil).
- India: Acquisition of an additional 5% of Mahindra CIE from its local partner.
- Europe: The company remains strategically committed to value-added products and its R&D effort.
Arrangement of new financing to fund growth
- $150 million loan with the International Finance Corporation (World Bank Group) and EDC (Export Development of Canada) to help finance its burgeoning growth in Mexico.
- €80 million for R&D in Europe.
- Commercial paper programme of up to €200 million on the Irish Stock Exchange.