Gestamp, a multinational company specialized in the design, development and manufacturing of highly engineered metal components for the
automotive industry, held today its second Capital Markets Day. The company presented its 2023-2027 Strategic Plan to investors to continue leading, together with the main OEM’s, the path towards a more sustainable mobility.
- The strategy defined by the company is based on profitable growth and financial
discipline supported by technology and operational excellence, in order to become
the Partner Supplier in the transition towards sustainable mobility - Among the objectives, Gestamp maintains a shareholder remuneration based on a
30% pay-out ratio
In this Strategic Plan, Gestamp sets out the steps to follow in order to maintain
its current growth path, building on the opportunities presented by the mobility industry
transformation and its position as a global company. The plan seeks to take the
multinational to new growth levels as the ones registered between 2017 and 2022, where
the components produced by Gestamp per vehicle manufactured globally increased by
over 30%.
In the current scenario, Gestamp wants to support its customers as a Partner
Supplier, whose contribution, in addition to the design and production of parts, provides
value by reducing the weight of components, CO2 emissions generated and cost, thanks
to its geographical diversification and its industrial and technological scalable
capabilities.
Francisco J. Riberas, Executive Chairman of Gestamp: “We are ready to take the
challenge which means sustainable mobility for future generations. Our short-term
objective is to support our clients in the transition towards a more sustainable mobility.
Furthermore, that is why we acquired a stake in Gescrap, which contributes to the longterm global goal of net-zero car. Our key strengths will allow us to leverage on the
mobility electrification and become the Partner Supplier to our customers, as well as to
increase our value proposition to investors, suppliers, and our employees”.
Overall vehicle market growth, electric vehicle penetration, the increase of
outsourcing and gaining market share due to strategic positioning, are the key levers on
which Gestamp leverages its future growth forecasts. It’s expected that the electric
vehicle production market will fourfold in size over the next four years. Gestamp expects
that by 2027, more than 50% of its revenues will come from this business cluster.
Moreover, the specialisation required by customers in the design and manufacturing of
electric vehicles represents an opportunity to increase its market share. Likewise, the
Strategic Plan foresees Gestamp’s trend of geographical diversification to be very close
to its customers.
Financial discipline and shareholder remuneration
The 2023-2027 Strategic Plan includes a clear path to generate value for all
stakeholders: clients, suppliers, investors and employees. Gestamp is committing to
medium-term objectives, with a four-year horizon, which highlights management team
commitment and capacity to deliver as well as the business prospects and profitability.
Gestamp maintains a shareholder remuneration based on a 30% pay-out ratio.
Likewise, the company has a clear focus on improving return on invested capital
as a metric that guarantees profitable growth, which also serves as a strategic lever in
the remuneration of senior management to ensure its execution. Gestamp plans to
increase ROCE (Return on Capital Employed) from the current 14% to 17.5% in 2027,
reflecting the commitment to increase the company’s capacity to generate profitability
with capital efficiency. Therefore, Gestamp has a clear and defined strategy based on
financial discipline to be the Partner Supplier in the new mobility.
Innovation and operational excellence
The strategy outlined in Berlin will allow Gestamp to meet the industrial demands
in the coming years, improving its profitability and maintaining the high level of quality of
its products. In this regard, Gestamp has emphasized its character as a technological
partner in processes, technologies and products. The company currently has the
capabilities to offer a product portfolio that will be key in future vehicles’ new architecture,
combining weight efficiency, passenger safety and cost competitiveness. To this end, it
has a series of differential levers, including a R&D team based in 13 R&D facilities around
the world, specialized in the product development that will become benchmark solutions
in the mobility revolution.
In addition, Gestamp seeks to capitalize on new market opportunities and
continues to be Partner Supplier to its clients, by providing operational excellence that
aims to constantly improve efficiency in operations management, flexibility and
digitization of its business by the development of Industry 4.0.
Circular economy and ESG
Gestamp has also provided visibility on the roadmap to promote and extend the
business circular economy model, focusing on the use of recycled steel. The quality of
recycled steel allows for an increase usage in the parts production, which reduces CO2
emissions throughout the production process. In addition, the integration of scrap
management into Gestamp’s business strategy allows for a life cycle complete
traceability. The acquisition of Gescrap has strengthened its position by integrating the
collection, sorting, and reuse of quality steel scrap into its production chain, in an
environment where this secondary raw material is scarce.
Additionally, the ESG Strategic Plan, recently announced at the General
Shareholders’ Meeting held in May, was presented. The proposal includes the objectives
in these areas, which will position Gestamp at the forefront of sustainability and circular
economy.
This Plan creates the framework for action that will make it possible to achieve
full decarbonization targets in Scopes 1 and 2 by 2045, working with the supply chain to
guarantee alignment, without forgetting social commitments. To ensure its execution and
commitment, part of the Group’s variable salary program will be linked to the
achievement of said targets.
The future of mobility
According to the International Energy Association (IEA), mobility is responsible
for 8% of annual CO2 emissions. Therefore, the industry faces the challenge of
addressing the future in a sustainable and responsible way. To address this trend, it is
estimated that 41% of the vehicles produced in 2027 will be electric, reaching a volume
of 38 million electric vehicles by that date.
As a result, mobility trends of the future bring new needs and demands, and to
meet them, operational excellence, technology, geographic diversification and trust with
its clients, will be highly competitive advantages to lead the transformation of the sector.
With the Strategic Plan presented today, Gestamp sets out the roadmap to take
another step forward in its growth, accompanying the industry in the mobility revolution
that is already underway.
About Gestamp
Gestamp is a multinational specialized in the design, development and manufacture of
highly engineered metal components for the main vehicle manufacturers. It develops
products with an innovative design to produce lighter and safer vehicles, which offer
lower energy consumption and a lower environmental impact. Its products cover the
areas of BiW, chassis and mechanisms.
The Company is present in 24 countries with more than 115 production plants (5 under
construction), 13 R&D centers and a workforce of nearly 43,000 employees worldwide.
Its turnover in 2022 was €10,726 million. Gestamp is listed on the Spanish stock
exchange under the ticker GEST.
