Aumovio (OTCPK:AMVO.Y) Update / briefing Transcript

Aumovio SE Pre-Close Call Summary Company Overview - Company: Aumovio SE - Fiscal Year: 2025 - Key Date: Fiscal year reporting on March 18, 2025 - Market Inclusion: Included in MDAX as of December 2025 [2][3] Industry Insights - Market Environment: - Global light vehicle production increased by 1% in Q4 2025 - Regional performance varied: - Europe: Decreased by 1.4% - North America: Decreased by 0.5% - China: Increased by over 3% [3] Financial Performance - Sales Development: - Sales impacted by regional trends, with Europe and North America representing close to 50% and 25% of group sales respectively [3] - Sales guidance for FY 2025 is projected between €18 billion and €19 billion [4] - Earnings Outlook: - Adjusted EBIT margin for the first nine months of 2025 was 2.9% - Current outlook aims for the upper end of the guidance range of 2.5%-4% [5] - Free Cash Flow: - Positive adjusted free cash flow is a priority for 2025 - Approximately mid-three-digit million EUR in one-off restructuring costs expected [6] Restructuring and Cost Management - Headcount Reduction: - Up to 4,000 positions to be reduced globally by the end of 2026, with negotiations ongoing [6][7] - Previous announcement indicated a reduction of around 3,000 R&D positions [7] - R&D Spending: - Goal to reduce R&D-to-sales ratio to below 10% by 2027 - Focus on value-creating technologies and efficiency measures [7] Market Conditions - Raw Material Prices: - Significant price increases observed in steel, aluminum, copper, and silver - Sustainable solutions with customers in place to manage cost increases [9][10] - Chip Prices: - DRAM and NAND prices have risen sharply, but volumes and prices for 2026 have been largely secured [10][26] Future Outlook - Earnings Momentum: - Expected to derive more from cost efficiencies and margin improvements rather than top-line growth in 2026 [10] - Project Pipeline: - Healthy project pipeline remains, although some project awards are postponed [37] Additional Notes - Restructuring Cash Out: - Estimated restructuring cash out of €150 million for 2026, with potential for higher amounts due to new measures [15][16] - Employee Impact: - The reduction of employees in best-cost countries will affect savings and cash outflows [8] This summary encapsulates the key points discussed during the Aumovio SE pre-close call, highlighting the company's performance, industry context, financial outlook, and strategic initiatives.