TI Fluid Systems plc

Post Close Trading Update

TI Fluid Systems plc, a leading global manufacturer of highly engineered automotive fluid storage, carrying, delivery, and thermal management systems for light vehicles, issues a trading update for the year ended 31 December 2022, ahead of publishing Full Year 2022 Results on 16 March 2023.  All data is preliminary and subject to audit adjustment.

Group Results

Progress on battery electric vehicle (BEV) business awards continued in Q4, with a further €0.4 billion lifetime revenue booked, bringing the total to €1.3 billion for the full year. Bookings for hybrid electric vehicles (HEVs) for the year were also €1.3 billion, with €0.3 billion in Q4.  This good momentum further validates the Group´s strong technology positioning and electrification strategy. 

Full year 2022 revenue is expected to be circa €3.26 billion at actual rates representing growth of approximately 10% compared to 2021. The Group did experience an unexpected negative sales impact in China during Q4 primarily due to the government's COVID policy changes which caused unexpected production shutdowns.  This revenue growth is set against global light vehicle production (GLVP) volumes of 82.0 million units, an increase of 6.2% compared to 2021, with Group constant currency revenue growth anticipated to be behind GLVP growth by approximately 100 bps, mostly the result of the rapid transition of domestic Chinese OEMs to BEV platforms which presents a short term mix issue for the Group in that market.

Whilst inflationary headwinds have continued, the Group has made good progress on managing ongoing cost increases, with cost recoveries from OEM customers in 2022 in line with management expectations at about 70%.  The Group expects to report Adjusted EBIT for the full year of circa €180 million.

Adjusted free cash flow for 2022 is expected to be approximately €80 million, and the net debt to Adjusted EBITDA leverage ratio 1.9 times.

Reflecting the recent 2022 reductions and revised medium term lower GLVP forecasts as well as the rising interest/discount rate outlook, the Group will review the carrying value of certain fixed and intangible assets at the year end which is likely to give rise to a material non-cash impairment charge.

Whilst market conditions, particularly in China, are expected to remain challenging in the short term, the Group's strong market position, product leadership and clear strategy leave it well positioned to deliver on its long-term objectives.

Capital Markets Event

TI Fluid Systems plc will hold a Capital Markets Event on 19 April 2023 at our new e-Mobility Innovation Centre in Rastatt, Germany. The event will be hosted by Hans Dieltjens, CEO and President, and will include a tour of the facility as well as a demonstration of our Thermal development capabilities from our Vice President of Technology.  We will also host a dinner, featuring a guest speaker, on the evening of 18 April 2023.  Further details will be published closer to the event, but please contact the Group's Investor Relations Team as soon as possible if you wish to attend.

Full Year 2022 Results

Full year 2022 audited results, including a 2023 outlook, will be published on 16 March 2023.  There will be a presentation and conference call for analysts and investors at 8.00 am (GMT) on that date.

Enquiries

TI Fluid Systems plc

Tim Furber

Investor Relations

[email protected]

Tel: +44 (0) 7764 359 165

FTI Consulting

Richard Mountain

Nick Hasell

Tel: +44 (0) 20 3727 1340

Cautionary Statement

This announcement is based on unaudited provisional results for the year ended 31 December 2022. This announcement also contains certain forward-looking statements with respect to the financial condition, results of operations and business of TI Fluid Systems plc (the "Company"). The words "believe", "expect", "anticipate", "intend", "estimate", "forecast", "project", "will", "may", "should" and similar expressions identify forward-looking statements. Others can be identified from the context in which they are made. By their nature, forward-looking statements involve risks and uncertainties, and such forward-looking statements are made only as of the date of this announcement. Accordingly, no assurance can be given that the forward-looking statements will prove to be accurate, and you are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty therein. Past performance of the Company cannot be relied on as a guide to future performance. Nothing in this announcement should be construed as a profit forecast.