Stellantis NV (STLA) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2021

July 28, 2022 6:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Hello and welcome to Stellantis First Half 2022 Results. I'll now hand over to our host, Andrea Bandinelli, Head of Investor Relations, to begin today's conference. Thank you.

Andrea Bandinelli

Hello everyone joining us today as with Stellantis' first half 2022 results. Earlier today, the presentation material for this call, as well the related press release, was posted under the Investors section of the Stellantis Group website.

Today, our call is hosted by Carlos Tavares, the company's Chief Executive Officer; and Richard Palmer, the company's Chief Financial Officer. After both Mr. Tavares and Mr. Palmer present, they will be available to answer questions.

Before we begin, I want to point out that any forward-looking statements we might make during today's call are subject to the risks and uncertainties mentioned in the Safe Harbor statement included on Page 2 of today's presentation. And as customary, the call will be governed by that language.

Now, I would like to hand over to Carlos Tavares, CEO of Stellantis.

Carlos Tavares

Thank you.

Good morning, good afternoon, and good evening to all of you. Welcome to this 2022 H1 Stellantis financial results announcement session. We know that you are busy people, and therefore, we value your time, and we thank you for your interest in Stellantis. Let's get started then.

It is an understatement to say that the automotive industry has been operating in a chaotic environment for some years now. But we should say today that we are moving from a chaotic world to a fragmented, if not a wild world. In this context, the most important thing I would like to do this afternoon before we look at any single number is to express my sincere appreciation, my warm thanks to all and each employee of Stellantis. I would like to extend that appreciation to our union partners, to our management team. The record results that we are presenting this afternoon represents their work and their success. Therefore, I would like to express to all of them, again, my warm congratulations, my warm thanks. They have done a stellar job in a very wild, fragmented and chaotic environment. This is demonstrating that Stellantis is resilient, all-weather, electrified tech automotive company.

Let's say, start now with some of the numbers that we are going to comment to you with Richard, our CFO. First of all, a record operating income margin of 14.1% with 5 regions posting double-digit margins, which demonstrates that the full business footprint of the company is now sound and highly profitable. Generating EUR5.3 billion of positive industrial free cash flow, which includes no less than EUR3.1 billion of net cash synergies, which is to say that we are well in advance on our committed plan in terms of delivering the synergies that have been committed when we made the merger between FCA and PSA.