Navistar International Corporation
Navistar International — Q2 2021 Earnings Presentation
20 slides from Navistar International's earnings presentation, Jun 8, 2021
Slide 1: Q2 2021 Earnings Presentation
Q2 2021 EARNINGS PRESENTATION June 8, 2021 Exhibit 99.2
Slide 2: Safe Harbor Statement and Other Cautionary Notes
Safe Harbor Statement and Other Cautionary Notes Information provided and statements contained in this presentation that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), Section 21E of the Securit
Slide 3: Second Quarter 2021 Summary
Second Quarter 2021 Summary Q2 revenue increased 12% to $2.2 billion reflecting higher sales in all manufacturing segments Q2 net income of $163 million included significant items of $91 million (tax-effected); adjusted net income of $72 million Q2 adjusted EBITDA of $198 million, or 9.2% of revenue
Slide 4: Strong Financial Improvement Year-Over-Year
Strong Financial Improvement Year-Over-Year ($ in millions, except per share and units) Note: This slide contains non-GAAP information; please see the REG G in appendix for a detailed reconciliation. Includes U.S. and Canada School buses and Class 6-8 trucks. Amounts attributable to Navistar Interna
Slide 5: Second Quarter 2021 Segment Results
Second Quarter 2021 Segment Results ($ in millions) Includes a gain of $242 million related to an increase in fair value of our equity security investment in TuSimple, a charge of $77 million related to a tentative EPA settlement, and a charge of $31 million related to adjustments to pre-existing wa
Slide 6: Strong Cash Balance with No Near-Term Manufacturing Debt Maturities
Strong Cash Balance with No Near-Term Manufacturing Debt Maturities ($ in millions) Manufacturing Cash Balance(A) Manufacturing Debt Maturities(B) 9.5% Senior Secured Notes Senior Secured Term Loan $2,148 Note: This slide contains non-GAAP information; please see the REG G in appendix for a detailed
Slide 7: Merger with TRATON Tracking to Expectations
Merger with TRATON Tracking to Expectations The merger proposal was approved at Navistar’s annual stockholder meeting on March 2nd. HSR antitrust waiting period expired February 12th. Subject to regulatory approvals and the satisfaction of customary closing conditions. Targeting to complete transact
Slide 8: Appendix
Appendix NAVISTAR a Q2 2021 Earnings ~ 6/8/2021 NYSENAV 8.
Slide 9: Days Sales Inventory On-Hand
Days Sales Inventory On-Hand Includes US and Canada Class 6-8 company and dealer truck inventory, but does not include IC Bus *Calculation is based on the 3-month rolling average of inventory-to-retail sales ratio 87 Days Normal range is 80-120 days inventory on hand
Slide 10: Retail Market Share in Commercial Vehicle Segments
Retail Market Share in Commercial Vehicle Segments Class 6/7 Medium-Duty Class 8 Severe Service Class 8 HeavyThree Months EndedApril 30, 2021January 31, 2021October 31, 2020July 31, 2020April 30, 2020Core Markets (U.S. and Canada)Class 6 and 7 medium trucks23.6%21.7%19.0%22.1%22.9%Class 8 heavy truc
Slide 11: Worldwide Truck Chargeouts
Worldwide Truck Chargeouts _______________________ We define chargeouts as trucks that have been invoiced to customers. The units held in dealer inventory represent the principal difference between retail deliveries and chargeouts. The above table summarizes our approximate worldwide chargeouts. We
Slide 12: Financial Services Segment Highlights
Financial Services Segment Highlights Financial Services segment profit of $15M for Q2 2021 compared to $24M Q2 2020 Segment financing availability of $700M as of April 30, 2021 Financial Services debt/equity leverage of 2.9:1 as of April 30, 2021 Renewal of $350M wholesale variable funding facility
Slide 13: Frequently Asked Questions
Frequently Asked Questions Q1: What is included in Corporate and Eliminations? A:The primary drivers of Corporate and Eliminations are Corporate SG&A, pension and OPEB expense (excluding amounts allocated to the segments), annual incentive and profit sharing, manufacturing interest expense, and the
Slide 14: Frequently Asked Questions
Frequently Asked Questions Q5:What is your expectation for future cash tax payments? A:Cash tax payments are expected to remain low in 2021 and could gradually increase as the company utilizes available net operating losses (NOLs) and tax credits in future years. Q6:What is the current balance of ne
Slide 15: Frequently Asked Questions: Revenue by Product Type and Free Cash Flow
Q10: What is your revenue by product type(A)? A: ___________________________ Includes other markets primarily consisting of Bus, Export Truck and Mexico. Retail financing revenues in the Financial Services segment include interest revenue of $15 for the three months ended April 30, 2021. Wholesale f
Slide 16: Outstanding Debt Balances
Outstanding Debt Balances in milions) Manufacturing operation Senior Secured Term Loan due 2025, net of $4 and $5, respectin and $8, r spectivel 5.5% Senior Seeured Notes de 2025 $10 and $11 respectively. 6.625% Senior Notes, due 2026, net of unamortized debt issuance costs of $12 and $13, respectiv
Slide 17: SEC Regulation G Non-GAAP Reconciliation
SEC Regulation G Non-GAAP Reconciliation SEC Regulation G Non-GAAP Reconciliation: The financial measures presented below are unaudited and not in accordance with, or an alternative for, financial measures presented in accordance with U.S. generally accepted accounting principles ("GAAP"). The non-G
Slide 18: SEC Regulation G Non-GAAP Reconciliation: Manufacturing Cash
SEC Regulation G Non-GAAP Reconciliation Manufacturing Operations Cash and Cash Equivalents Reconciliation: Manufacturing Cash and Cash Equivalents: Manufacturing cash and cash equivalents, and free cash flow represents the Company’s consolidated cash and cash equivalents, excluding cash and cash eq
Slide 19: SEC Regulation G Non-GAAP Reconciliations: EBITDA
SEC Regulation G Non-GAAP Reconciliations Earnings (Loss) Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) Reconciliation ______________________ (A) Manufacturing interest expense is the net interest expense primarily generated for borrowings that support the Manufacturing and Corpo
Slide 20: SEC Regulation G Non-GAAP Reconciliation: Adjusted Net Income
SEC Regulation G Non-GAAP Reconciliation Adjusted Net Income Reconciliation: ____________________ Footnotes to significant items: Adjustments to pre-existing warranties reflect changes in our estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims
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