Iveco N : 2024 First Quarter Results - Presentation

Q1 2024 results

Turin, Italy - 10th May 2024

CAUTIONARY STATEMENT

Statements other than statements of historical fact contained in these slides, 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.

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 beyond the Company's predictions and/or expectations) or other assumptions underlying any of the forward-looking statements prove to be incorrect, the actual results or developments may differ materially from any future results or developments expressed or implied by the forward-looking statements, which are sometimes based upon estimates and data received from third parties (such estimates and data being often revised). Except as otherwise required by applicable rules, Iveco Group expressly disclaims any intention to provide, update or revise any forward-looking statements in this presentation to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. All forward-looking statements by Iveco Group or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements contained herein.

Information in this presentation cannot be relied upon as a guide to future performance. 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 upon, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. None of the Company, its affiliates, directors, advisors, employees and representatives, or anyone acting on their behalf shall bear any responsibility (in negligence or otherwise) for any loss arising from any use of these presentation materials or their contents or otherwise arising in connection with these materials.

This presentation does not represent investment advice or a solicitation, recommendation, invitation, or offer for the purchase or sale of financial products and/or of any kind of financial services as contemplated by the laws in any country or state

Certain figures contained in this presentation, including financial information, have been subject to rounding adjustments. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this presentation may not conform exactly to the total figure given.

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.

2024 financial data shown in this presentation refer 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.

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CEO EXECUTIVE SUMMARY

• Solid start of the year, with consistent profitability improvements across business units on the back of lower product cost and positive net price realization
• Q1 2024 Consolidated Net Revenues in line with Q1 2023 recast, with Consolidated Adjusted EBIT margin at 6.9%, 170bps up
  Adjusted Diluted EPS(1) at €0.57 per common share
• On track shortening order books to healthier levels and to accommodate phase-out and phase-in of new Model Year 2024; no exceptional or unusual order cancellations during Q1 2024
• Industrial Adjusted EBIT(1) margin at 6.1% (+170bps compared to Q1 2023 recast), mainly due to lower product costs and a continuously positive price realisation in the quarter
• Industrial Free Cash Flow(1) absorption was €436mn in Q1 2024, €110mn better than Q1 2023 recast figure, in line with our historical seasonal working capital absorption
• Available Liquidity(1) remained solid at €4.7bn as of 31st March 2024, broadly flattish vs. year end 2023

(1) This item is a non-EU-IFRS financial measure; reconciliation in the Appendix (slide n° 24).

3

Q1 2024 IVECO GROUP'S MAIN ACHIEVEMENTS

• January 2024

Iveco Group chooses BASF as first recycling partner for electric vehicle batteries

• March 2024

Iveco Group unveils new Strategic Plan to 2028 and "Unlimited Pathways" for its five Business Units at Capital Markets Day

• March 2024

Hyundai Motor and Iveco Group expand their partnership to explore synergies for electric heavy-duty trucks in the European markets

4

Q1 2024 MAIN ACHIEVEMENTS BY INDUSTRIAL BUSINESS UNIT

TRUCK

• February 2024

Hyundai Motor Company to supply an all-electric Light Commercial Vehicle from its global eLCV platform to Iveco Group in Europe

• February 2024

IVECO to supply 178 sustainable trucks

to DHL in Germany

• March 2024

Ford Trucks and IVECO sign a MoU for

a potential joint development of a new HDT compliant with new regulations, accommodating all future PT options

BUS

• January 2024

IVECO BUS wins its largest zero-

emission vehicle contract in Italy

with more than 400 electric buses for

Rome

• February 2024

HEULIEZ secures contract to

supply 200 e-buses to Marseille

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Q1 2024 MAIN ACHIEVEMENTS BY INDUSTRIAL BUSINESS UNIT

DEFENCE

• March 2024

Official handover of the first unit of IDV's MUV 4×4 TCN vehicle to the

Austrian Armed Forces

POWERTRAIN

• January 2024

FPT Industrial engines power the construction of the longest immersed

tunnel in the world

• March 2024

FPT Industrial sets a new record with the production of 200,000 engines in

Cordoba

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Q1 2024 INDUSTRY VOLUME

Units (% change vs. Q1 2023)

	Europe(1)	South America(2)	Rest of the World(3)	Worldwide
Light Commercial Vehicles
+15%	(17)%	+25%	+17%
(3.5-7.49t)
Medium & Heavy trucks	(3)%	(7)%	(2)%	(3)%
(≥ 7.5t)
Buses	FLAT	(19)%	(4)%	(7)%

1. The 27 European countries where Commercial Vehicles compete and for which market data are available, excluding the United Kingdom and Ireland.
2. Brazil and Argentina.
3. Russia, Türkiye, South-East Asia, Australia, New Zealand.

7

TRUCKS' CHANNEL INVENTORY BY QUARTER

Units

LCV

(3.5-7.49t)

M&H

(≥ 7.5t)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019	2020	2021	2022	2023	'24

Iveco Group's inventory (without the unfinished products)

Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1
2019	2020		2021		2022	2023	'24
Third party dealer inventory		Retails		Production

76% of dealers' inventory and 70% of Company's inventory already sold

8

ORDER INTAKE, DELIVERIES AND BOOK-TO-BILL

Thousands units, unless otherwise stated
LCV	M&H	Buses
(3.5-7.49t)	(≥ 7.5t)

30
1.31	0.68
25
20
		1.01*
15
					0.76
10
						1.34*	1.21
5
0
Orders Deliveries	Orders Deliveries	Orders Deliveries	Orders Deliveries	Orders Deliveries	Orders Deliveries
	Q1 2023	Q1 2024			Q1 2023	Q1 2024	Q1 2023	Q1 2024
					Model Year 2024	Book-to-Bill (x)

Order intake aligned with strategy to reduce the backlog, with 18 weeks of production sold for LCV, and around 15 weeks for M&H as of 31-Mar-2024.

Q1 2024 orders intake affected by phase-out and phase-in of new Model Year 2024 introduction across each truck's segment

(*) 2023 order intake in Latin America have been restated, with an impact on some 2023 book-to-bill ratios.

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MARKET SHARE IN EUROPE BY QUARTER

Preliminary registration units (excluding United Kingdom and Ireland(1))

LCV	M&H	City and Intercity buses
(3.5-7.49t)	(≥ 7.5t)

64.3%

30.4%

13.0%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2021

2022

2023

'24

LCV

LCV

Prof. Cab-Chassis

(3.5-7.49t)

(6.01-7.49t)

(3.5-7.49t)

38.2%

8.7%

7.5%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2021

2022

2023

'24

M&H

Heavy

Heavy Gas(2)

(≥7.5t)

(≥16t)

(≥16t)

1. Source and geographic information in the Appendix (slide n° 25).
2. Different vertical axis bounds.

50.5%

13.7%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2021

2022

2023

'24

City

Intercity

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