Nemak SAB de CV · BMV:NEMAK/A

Nemak SAB de CV — Q3 2024 Earnings Presentation

26 slides from Nemak SAB de CV's earnings presentation, October 2024

  1. Slide 1: 3Q24 Results

    3Q24 Results OCTOBER 2024 ©Nemak | Public

  2. Slide 2: Agenda

    Agenda • 3Q24 Highlights • Financial Overview • Q&A Armando Tamez Alberto Sada Denise Reyes CEO CFO IRO ©Nemak | Public

  3. Slide 3: Forward-Looking Statement

    FORWARD-LOOKING STATEMENT This presentation contains forward-looking information based on numerous variables and assumptions that are inherently uncertain. They involve judgments with respect to, among other things, future economic, competitive and financial market conditions and future business dec

  4. Slide 4: Progress on margin improvement and commercial negotiations

    Progress on margin improvement and commercial negotiations • Light-vehicle sales remained steady • Production scaled back to normalize inventory levels in main regions ©Nemak | Public

  5. Slide 5: 3Q24 EBITDA was US$169 M

    3Q24 EBITDA was US$169 M EBITDA growth of 3% y-o-y Volume decline of 9% y-o-y Capital expenditure reduction of 26% y-o-y ©Nemak | Public

  6. Slide 6: Commercial negotiations continue apace

    Commercial negotiations continue apace • Labor Inflation recovery • Product re-pricing • EV/SC under-utilized capacity • Expected to conclude by 4Q Catalyst for leverage reduction ©Nemak | Public

  7. Slide 7: Year-to-date new awarded business for ~US$220 M

    Year-to-date new awarded business for ~US$220 M • Flexible components ICE-Hybrid powertrains • Increased demand for hybrid vehicles ©Nemak | Public

  8. Slide 8: Launch and start of production of battery housing for electric commercial vehicle

    Launch and start of production of battery housing for fully- electric commercial vehicle For a Europe-based manufacturer ©Nemak | Public

  9. Slide 9: Nemak Featured in 5 of the 2024 Wards 10 Best Engines

    Nemak Featured in 5 of the 2024 Wards 10 Best Engines & Propulsion Systems ©Nemak | Public

  10. Slide 10: Nemak offers cutting-edge components to customers

    Nemak offers cutting-edge components to customers Our Engineering Center in Frankfurt, offers the perfect environment for early and strategic collaborations, supporting the development of new technologies ©Nemak | Public

  11. Slide 11: 2024 Top Employer Certification

    2024 Top Employer Certification ©Nemak | Public

  12. Slide 12: Financial Results

    Financial Results ©Nemak | Public

  13. Slide 13: EBITDA growth of 3% y-o-y

    EBITDA growth of 3% y-o-y • Commercial negotiations • Operating efficiencies ©Nemak | Public

  14. Slide 14: Mixed trends in our main regions, ongoing inventory management strategies

    Mixed trends in our main regions, ongoing inventory management strategies Vehicle SAAR (M Units) Vehicle Production (M Units) 35.0 10.0 29.9 9.0 8.6 30.0 27.0 27.6 China 8.0 7.5 25.2 7.3 7.3 25.0 7.0 6.3 21.6 6.0 20.0 16.1 16.4 16.4 16.1 Europe 5.0 15.6 4.2 4.2 4.1 15.0 3.9 3.8 15.6 15.6 15.4 15.7 1

  15. Slide 15: Revenue was US$1.2 B, 4% below y-o-y

    Revenue was US$1.2 B, 4% below y-o-y, due to lower production, mainly from one customer and lower EV demand ©Nemak | Public

  16. Slide 16: EBITDA was US$169 M, 3% higher y-o-y

    EBITDA was US$169 M, 3% higher y-o-y EBITDA per equivalent unit was US$17.6, 14% higher y-o-y ©Nemak | Public

  17. Slide 17: Operating Income was US$73 M

    Operating Income was US$73 M ©Nemak | Public Net income totaled US$5 M in 3Q24

  18. Slide 18: Net Debt was US$1.77 B

    Net Debt was US$1.77 B • Net-debt-to-EBITDA ratio remains 2.9 times by the end of the quarter • Interest coverage ratio was 5.0 times versus 4.7 times in 2Q24 ©Nemak | Public

  19. Slide 19: Successful US$250 M debt transaction

    Successful US$250 M debt transaction • 5-year bullet • SOFR-based variable interest rate ©Nemak | Public

  20. Slide 20: Capital expenditures totaled US$96 M

    Capital expenditures totaled US$96 M, 26% below the same period of 2023 ©Nemak | Public

  21. Slide 21: Summary of regional results

    Summary of regional results Revenues 3Q24 3Q23 % Var. North America 636 718 (11.3) Europe 419 406 3.2 Rest of World 169 149 13.5 Total 1,224 1,273 (3.8) EBITDA 3Q24 3Q23 % Var. North America 78 86 (9.7) Europe 68 57 19.2 Rest of World 23 21 13.0 Total 169 164 3.2 ©Nemak | Public

  22. Slide 22: Generating value for shareholders remains our top priority

    Generating value for shareholders remains our top priority • Streamline operations • Maximize the use of existing assets • Effective and strategic investments ©Nemak | Public

  23. Slide 23: Strong commitment to FCF generation

    Strong commitment to FCF generation • Disciplined capital allocation • Delivering long-term value ©Nemak | Public

  24. Slide 24: Guidance Update

    Guidance Update • EBITDA: US$640 M • Strengthened by recurring and one-time commercial negotiations ©Nemak | Public

  25. Slide 25: Q&A

    Q&A ©Nemak | Public

  26. Slide 26: For more information contact us at:

    For more information contact us at: investors.nemak.com [email protected] ©Nemak | Public

Nemak — Q3 2024 Earnings Presentation on 6ix