Linamar Corporation · TSX:LNR

Linamar — Q3 2017 Earnings Presentation

51 slides from Linamar's earnings presentation, November 2017

Slide 1: Q3 2017 Investor Presentation
Q3 2017 Investor Presentation Linamar Corporation November 2017
Slide 2: Forward Looking Information, Risk and Uncertainties
Forward Looking Information, Risk and Uncertainties Certain information regarding Linamar set forth in this presentation and oral summary, including managements assessment of the Company’s future plans and operations may constitute forward-looking statements. This information is based on current exp
Slide 3: Company Overview
Company Overview
Slide 4: Linamar – A Global Powerhouse in Diversified Manufacturing
Linamar – A Global Powerhouse in Diversified Manufacturing 2016 SALES: $6,005.6M ↑ 16.3% 2017 Q3 YTD SALES: $4,971.9M ↑ 7.4% NE - ATS: $522.1M (8.7%) ↑ 19.6% NE – ATS YTD: $414.3M (8.3%) ↑ 2.0% as rptd ↑ 10.9% adj Diversified Manufactured Products that Power Vehicles, Motion, Work and Lives 25,700 E
Slide 5: Core Capabilities
Core Capabilities MACHINING & ASSEMBLY FORGING LIGHT METAL CASTING METAL FORMING • CNC Expertise • Hatebur High Speed Hot • Gravity & Low Pressure • Metal Forming • Complex Assemblies Horizontal Forging Aluminum Die Casting • Stamping • Advanced Automation • Conventional Vertical Forging • High Pres
Slide 7: Scope of Operations & Market Concentration
Scope of Operations & Market Concentration Q3 2017 YTD Powertrain/Driveline 81.7% Industrial 18.3% PRODUCTS Engine | Transmission | Driveline | Body Mobile Industrial Equipment | Fabricated Assemblies AUTOMOTIVE OFF-HIGHWAY COMMERCIAL VEHICLE ACCESS MARKETS 73.1% 2.6% 3.8% 17.1% ENERGY, HEAVY MACHIN
Slide 8: Global Presence
Global Presence UNITED KINGDOM FRANCE GERMANY HUNGARY BULGARIA CANADA Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Facilities (1) Facilities (4) Facilities (7) Facilities (4) Facilities (1) Facilities (23) SPAIN 49 Facilities with TS16949 Manufacturing 13 Facil
Slide 9: Key Investment Themes
Key Investment Themes Consistent Performance • Sales & earnings growth consistent & well above market • Double digit top and bottom line growth 6 years running Market Share Growth Key Growth Driver • We have demonstrated our ability to continue to grow through flat markets and will continue to do so
Slide 10: Performance Highlights
Performance Highlights Q3 2017  Bold Innovation  Innovation Hub designs for renovation complete, construction to begin shortly  Digital Factory Project -- piloting advanced manufacturing production cell tapping into collaborative robots and AGV tech  New Business Wins and quoting activity at rec
Slide 11: Strategy
Strategy
Slide 12: Enterprise Strategy
Enterprise Strategy Diversified Manufactured Products that Power Vehicles, Motion, Work and Lives © Linamar Corporation 12
Slide 13: Vision 2100 – Building an Action Plan for the Future
Vision 2100 – Building an Action Plan for the Future Manufacturing and Materials Development to Support all Markets Transportation Infrastructure Power Global Addressable Markets: Global Addressable Markets: Global Addressable Markets: Automotive Scissors, Booms, Telehandlers Electrical products, sy
Slide 14: Linamar Positioned for Superior Growth
Linamar Positioned for Superior Growth Technical Leadership & Scale & Financial Vertically Integrated Capacity to Invest Global Footprint © Linamar Corporation 14
Slide 15: Transportation
Transportation
Slide 16: Massive Opportunity in Outsourcing in all Propulsion Types
Massive Opportunity in Outsourcing in all Propulsion Types  $400 Billion global market, addressable portion growing each year  Significant content potential in EV, Hybrid and ICE Massive Market Opportunity Vehicle Propulsion  70% of content of powertrain captive but slowly being outsourced  Lina
Slide 17: Powertrain Target Markets Significant and Growing
Powertrain | Target Markets Significant and Growing TOTAL GLOBAL POWERTRAIN / DRIVETLINE MARKET Global Market 2016 2020 2030 Light Vehicle $372 B $403 B $411 B Commercial Truck & Off Highway Vehicle $123 B $124 B $131 B Total: $494 B $527 B $ 542 B Structural EV & Battery Housings Assumptions: Drive
Slide 18: Linamar's Addressable Market
Linamar’s Addressable Market Evolving Technology and Propulsion Outsourcing  Linamar’s Addressable Market is impacted by two long-term trends;  The shift from Internal Combustion Engines (ICE) to Hybrid Electric Vehicles (HEV) and Electric Vehicles (EV)  Fuel Cell Vehicles (FCV) are another key t
Slide 19: Factors Influencing Future Production Levels
Factors Influencing Future Production Levels Actual I.H.S. Forecast Advanced Consensus Projection Autonomous Driving • Enables segments not driving today i.e. seniors,  Global Population Growth disabled, youth   • Better asset utilization to some extent  • Limited by peak demand needs ie 7am-9
Slide 20: Global Light Vehicle Production
Global Light Vehicle Production Advanced Consensus Projection Actual I.H.S. Forecast Advanced Consensus Projection Source I.H.S. Forecasting 2000-2024 Advanced Consensus Projection 2025-2030 i) 1% YoY Growth in overall industry volumes 2025-2030 ii) Production Share of Technologies by 2030 of ICE 50
Slide 21: Preparing for the Future of Propulsion
Preparing for the Future of Propulsion Internal Combustion Hybrid Vehicle Electric Vehicle Engine (ICE) (HEV) (BEV)  Focus on Light Weighting, Fuel Efficiency,  Continue to increase Content Per Vehicle on  Strong organizational focus on integrated Emissions Reduction solutions which offer a Hybri
Slide 22: ICE: Product Solutions
ICE: Product Solutions 1990s 2000s 2010s 2020s 2030s Content Potential / Vehicle $4,000 $4,000 $4,000 $4,000 $4,000 Outsourced % 15% 20% 32% 51% 75% Addressable Content Potential / Vehicle $600 $800 $1,280 $2,040 $3,000 Engine Camshaft / Cast and Fully Machined Lower Engine Camshafts Full Engine Bra
Slide 24: Hybrid: Product Solutions
Hybrid: Product Solutions 1990s 2000s 2010s 2020s 2030s Content Potential / Vehicle $4,000 $4,000 $4,000 $4,000 $4,000 Outsourced % 15% 20% 32% 51% 75% Addressable Content Potential / Vehicle $600 $800 $1,280 $2,040 $3,000 Engine Super cubed Turbo Charger Camshaft / Cylinder Cast and Fully Machined
Slide 26: Content Today on Electrified Vehicles Growing Quickly
Content Today on Electrified Vehicles Growing Quickly Global Hybrid & Electric Vehicle CPV $60.00 $50.00 Content Per Vehicle (CPV) $40.00 $30.00 Hybrid Electric $20.00 $10.00 $0.00 2015 2016 2017 2018 2019 2020 2021 Updated Q3 2017, Content Per Vehicle (CPV) estimates based on current projections an
Slide 27: EV: Product Solutions
EV: Product Solutions 1990s 2000s 2010s 2020s 2030s Content Potential / Vehicle $N/A $N/A $2,000 $2,000 $2,000 Outsourced % N/A N/A 32% 51% 75% Addressable Content Potential / Vehicle $N/A $N/A $640 $1,020 $1,500 WIN Q2 2017 500K ANNUAL VOLUME E-Axle & Driveline Systems Commercial Vehicle Multi-Spee
Slide 29: Global Total Addressable Market
Global Total Addressable Market Massive Market Opportunity Pure Battery EV penetration reaches 21% of the Vehicle market by 2030 Propulsion Updated November 2017 © Linamar Corporation 29
Slide 30: Aggressive EV Adoption Scenario
Aggressive EV Adoption Scenario Global Total Addressable Market Massive Market Opportunity In an Aggressive Scenario, we outlined a ‘What If’ of Pure Vehicle Battery EV penetration reaching as high as 30% of the Propulsion market by 2030 and its impact to the Addressable Market Source I.H.S. Forecas
Slide 31: Vertical Integration Strategy – Key To Innovation Agenda & Competitiveness
Vertical Integration Strategy – Key To Innovation Agenda & Competitiveness Optimize light weight solutions for customers through collaborative design Offer one stop shopping for customers to optimize cost, quality and technology Create additional revenue streams and open doors to new customers Grow
Slide 32: Light Metal Casting: GF Linamar LLC
Light Metal Casting: GF Linamar LLC  Held Grand Opening Ceremony for the JV High Pressure Die Casting (HPDC) facility in North Carolina on October 5th  State of the Art Casting Plant showcasing latest manufacturing technologies in Light Weight Aluminum and Magnesium  The first off production run
Slide 33: Infrastructure
Infrastructure
Slide 34: Access – Target Market Large with Limited Competition
Access – Target Market Large with Limited Competition Skyjack Target US $1Billion by 2020 2016 Global Market of $7.5B USD Massive Market Opportunity in Access MANITOU HAULOTTE JLG SKYJACK GENIE Skyjack Internal Estimates – Final Q4 2016 Results © Linamar Corporation 34
Slide 35: Skyjack Growth Strategy
Skyjack Growth Strategy Overview  Maintain and Defend Scissor Share….  98% portfolio range coverage by product type by 2020  Grow Boom Products…  95% portfolio range coverage by product type by 2020  Competitive Telehandler Offering…  94% portfolio range coverage in NA by 2020 © Linamar Corpor
Slide 36: Skyjack Market Share Penetration Key Growth Driver
Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Source: AEM Reporting October 2017 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Tele (NA only) Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 N.A. Telehandler Market Share Q1 2017 Q2 2017 Q3 2017 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2
Slide 39: Food, Water, Power and Age
Food, Water, Power and Age
Slide 40: Strategy Development
Strategy Development  New markets we are trying to gain more knowledge around  Established Advisory Councils to help us understand markets and develop strategies for entry  Water, Food, and Age Management Segments  Each council contains a diverse mix of outside experts (top management, academics
Slide 41: Agriculture a Long Time Market of Linamar
Agriculture a Long Time Market of Linamar  Owned White Farm Equipment in 80’s  Produced combines for Massey Ferguson as Western Combine in 90’s  Continue to produce combine accessories such as grain tables and corn headers in our Hungarian company Oros  Product is designed and manufactured by th
Slide 42: Financial Review
Financial Review
Slide 43: Yearly Sales Growth 2012 - 2017
Yearly Sales Growth 2012 - 2017 6,500 6,000 5,500 4,971.9 5,000 4,630.8 4,500 4,000 $ Millions 3,500 3,000 2,500 2,000 1,500 1,000 500 3,221.9 3,595.5 4,171.6 5,162.4 6,005.6 1,455.5 1,549.7 0 2012 2013 2014 2015 2016 Q3 YTD Q3 YTD 2016 2017 Annual Results Current Quarter © Linamar Corporation 43
Slide 44: Net Earnings Attributable to Shareholders
Net Earnings Attributable to Shareholders 2012 - 2017 600 30.0% 500 25.0% 406.0 414.3 400 20.0% $ Millions 300 15.0% 200 8.5% 8.7% 8.8% 8.3% 10.0% 7.7% 6.4% 4.5% 100 5.0% 146.1 229.8 320.6 436.7 522.1 122.2 107.3 0 0.0% 2012 2013 2014 2015 2016 Q3 YTD Q3 YTD Annual Results Current Quarter NE as a %
Slide 45: Launching nearly $4.7 billion of new work today
Launch Review Q3 2017 Launching nearly $4.7 billion of new work today Transmission Engine Driveline Other - 500 1,000 ($ Millions) 1,500 2,000 2,500 3,000 ($ Millions) 2016 2017 2018 Mature © Linamar Corporation 45
Slide 46: Launching nearly $4.7 billion of new work today (by region)
Launch Review Q3 2017 Launching nearly $4.7 billion of new work today North America Europe Asia Pacific - 500 1,000 1,500 2,000 2,500 3,000 ($ Millions) 2016 2017 2018 Mature © Linamar Corporation 46
Slide 47: Launch Review: Sales from Launch
Launch Review Q3 2017 4,500.00 4,000.00 3,500.00 3,000.00 2,500.00 $ Millions 2,000.00 1,500.00 1,000.00 500.00 - 2016 2017 2018 2019 2020 2021 Other Driveline Engine Transmission $600 to $650 Million in 2017 Sales from Launch add: $900 Million to $1 Billion in 2018 • Offsetting launching sales is b
Slide 48: New Business Driving Strong Market Share Growth Globally
New Business Driving Strong Market Share Growth Globally Content per Vehicle 2012 – 2017 North America Europe Asia $165 $70 $12 $155 $60 $145 $10 $135 $50 $8 $125 $40 $6 $115 $30 $105 $20 $4 $95 $10 $2 $85 121.35 125.15 130.57 150.37 153.82 158.28 12.24 14.45 19.84 39.47 63.60 72.18 4.16 5.40 6.36 6
Slide 49: Outlook Strong for the Future
Outlook Strong for the Future Q3 2017 Sales by Region 10,000 9,000 Target 8,000 7,000 6,000 $ Millions 5,000 4,000 3,000 2,000 1,000 - 2011 2016 2021 Actual Actual Estimate North America Europe Asia Target - Business to be Booked © Linamar Corporation 49
Slide 50: Key Investment Themes
Key Investment Themes Consistent Performance • Sales & earnings growth consistent & well above market • Double digit top and bottom line growth 6 years running Market Share Growth Key Growth Driver • We have demonstrated our ability to continue to grow through flat markets and will continue to do so
Slide 51: Thank You
Thank You @linamarcorp @linamarcorp Linamar Corporation www.linamar.com Linamar Corporation

Linamar — Q3 2017 Earnings Presentation on 6ix

Linamar — Q3 2017 Earnings Presentation

Slide 1: Q3 2017 Investor Presentation

Slide 2: Forward Looking Information, Risk and Uncertainties

Slide 3: Company Overview

Slide 4: Linamar – A Global Powerhouse in Diversified Manufacturing

Slide 5: Core Capabilities

Slide 6: Key Products

Slide 7: Scope of Operations & Market Concentration

Slide 8: Global Presence

Slide 9: Key Investment Themes

Slide 10: Performance Highlights

Slide 11: Strategy

Slide 12: Enterprise Strategy

Slide 13: Vision 2100 – Building an Action Plan for the Future

Slide 14: Linamar Positioned for Superior Growth

Slide 15: Transportation

Slide 16: Massive Opportunity in Outsourcing in all Propulsion Types

Slide 17: Powertrain Target Markets Significant and Growing

Slide 18: Linamar's Addressable Market

Slide 19: Factors Influencing Future Production Levels

Slide 20: Global Light Vehicle Production

Slide 21: Preparing for the Future of Propulsion

Slide 22: ICE: Product Solutions

Slide 23: ICE: Market Evolution

Slide 24: Hybrid: Product Solutions

Slide 25: Hybrid: Market Evolution

Slide 26: Content Today on Electrified Vehicles Growing Quickly

Slide 27: EV: Product Solutions

Slide 28: EV: Market Evolution

Slide 29: Global Total Addressable Market

Slide 30: Aggressive EV Adoption Scenario

Slide 31: Vertical Integration Strategy – Key To Innovation Agenda & Competitiveness

Slide 32: Light Metal Casting: GF Linamar LLC

Slide 33: Infrastructure

Slide 34: Access – Target Market Large with Limited Competition

Slide 35: Skyjack Growth Strategy

Slide 36: Skyjack Market Share Penetration Key Growth Driver

Slide 37: Access Market: Product Outlook

Slide 38: Access Market: Geographic Outlook

Slide 39: Food, Water, Power and Age

Slide 40: Strategy Development

Slide 41: Agriculture a Long Time Market of Linamar

Slide 42: Financial Review

Slide 43: Yearly Sales Growth 2012 - 2017

Slide 44: Net Earnings Attributable to Shareholders

Slide 45: Launching nearly $4.7 billion of new work today

Slide 46: Launching nearly $4.7 billion of new work today (by region)

Slide 47: Launch Review: Sales from Launch

Slide 48: New Business Driving Strong Market Share Growth Globally

Slide 49: Outlook Strong for the Future

Slide 50: Key Investment Themes

Slide 51: Thank You