Nemak SAB de CV · BMV:NEMAK/A

Nemak SAB de CV — Q1 2024 Earnings Presentation

33 slides from Nemak SAB de CV's earnings presentation, April 2024

Slide 2: 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
Slide 3: Agenda
Agenda • 1Q24 Highlights • Financial Overview Armando Tamez Alberto Sada Denise Reyes CEO CFO IR Officer ©Nemak | Public
Slide 4: Improved EBITDA and margins during 1Q24
Improved EBITDA and margins during 1Q24 • Operating efficiencies • Solid volumes in the ICE powertrain segment ©Nemak | Public
Slide 5: We are determined to continue delivering solid results
We are determined to continue delivering solid results The cash generated throughout the year will reduce net debt and deleverage the Company ©Nemak | Public
Slide 6: Focus on profitability through customer negotiations and cost-saving initiatives
Focus on profitability through customer negotiations and cost- saving initiatives • Compensation for under-utilized capacity in the EV/SC segment • Price increases to offset inflation effects • Implementation of cost reduction program, while assessing strategic options ©Nemak | Public
Slide 7: Our flexible product offer allows us to participate in a dynamic market
Our flexible product offer allows us to participate in a dynamic market Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, consectetuer adipiscing elit, consectetuer adipiscing elit, consecte
Slide 8: Our ICE powertrain components have placed Nemak in a leadership position
Our ICE powertrain components have placed Nemak in a leadership position and continue to represent the majority of our revenue base ©Nemak | Public
Slide 9: Strong foundations to capitalize on the transformation of the automotive industry
Strong foundations to capitalize on the transformation of the automotive industry We’re committed to meeting market demand while strategically transitioning towards sustainable mobility ©Nemak | Public
Slide 10: Our structural components portfolio supports our flexibility strategy
Our structural components portfolio supports our flexibility strategy Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, consectetuer adipiscing elit, consectetuer adipiscing elit, consectetu
Slide 11: New awarded business for US$55 M
New awarded business for US$55 M • 90% accounts for EV/SC • Use of existing capacity and technology Our order book for the EV/SC segment stands at US$1.8 B ©Nemak | Public
Slide 12: Start of production of two additional structural components in Poland
Start of production of two additional structural components at our facility in Poland Both components will be integrated to internal combustion engine, hybrid, and electric vehicles ©Nemak | Public
Slide 13: Launch of new ICE components in Europe
Launch of new ICE components in Europe including light-vehicle and motorbike applications All projects were heavily supported by existing capacity ©Nemak | Public NOTE: The images shown are for illustration purposes only and are not an exact representation of the products discussed
Slide 14: CDP upgraded Nemak's score to A-
CDP upgraded Nemak’s score to “A-” on its climate change questionnaire, which denotes a transition from management to leadership level Top Supplier Engagement rating of “A” for the third consecutive year ©Nemak | Public
Slide 15: Certification of three facilities by the Aluminum Stewardship Initiative
Certification of three of our facilities by the Aluminum Stewardship Initiative performance standard BRAZIL POLAND SLOVAKIA ©Nemak | Public
Slide 16: Nemak Mexico recognized as Socially Responsible Company by CEMEFI
Nemak Mexico was recognized as a Socially Responsible Company by CEMEFI, the Mexican Center for Philanthropy, for the fifth consecutive year ©Nemak | Public
Slide 19: Customer negotiations continue
Customer negotiations continue • Inflation recovery • Compensation for idled installed capacity in the electric vehicles segment • Negotiations are retroactive to January 1st ©Nemak | Public
Slide 20: Mixed trends in light-vehicle sales and production across our main regions
Mixed trends in light-vehicle sales and production across our main regions Vehicle SAAR (M Units) Vehicle Production (M Units) 35.0 10.0 29.9 9.0 8.6 30.0 27.0 China 8.0 7.5 25.6 25.0 7.0 6.7 6.3 21.6 5.9 20.0 6.0 20.0 15.9 16.1 16.4 16.3 Europe 5.0 4.4 15.3 4.4 4.2 4.1 15.0 3.9 15.8 15.6 15.6 15.4
Slide 21: Volume decreased 2% y-o-y totaling 10.6 million equivalent units
Volume decreased 2% y-o-y totaling 10.6 million equivalent units ©Nemak | Public
Slide 22: EBITDA was US$145 M, representing 10% y-o-y growth
EBITDA was US$145 M, representing 10% y-o-y growth ©Nemak | Public
Slide 23: EBITDA per equivalent unit was US$13.7
EBITDA per equivalent unit was US$13.7, 11% higher vs 1Q23 ©Nemak | Public
Slide 25: Our working capital increased sequentially US$120 M
Our working capital increased sequentially US$120 M Associated with sequential increase of production during 1Q24 ©Nemak | Public
Slide 26: Our net debt stood at US$1.7 B
Our net debt stood at US$1.7 B • Net-debt-to-EBITDA ratio was 2.8 times versus 2.7 times • Interest coverage ratio was 4.6 times versus 4.8 times ©Nemak | Public
Slide 27: Capital expenditures totaled US$104M
Capital expenditures totaled US$104M, 17% below the same period of 2023 ©Nemak | Public
Slide 28: Summary of regional results
Summary of regional results Revenues 1Q24 1Q23 % Var. North America 616 696 (12) Europe 446 426 5 Rest of World 150 135 11 Total 1,211 1,257 (4) EBITDA 1Q24 1Q23 % Var. North America 58 74 (21) Europe 70 43 63 Rest of World 17 16 6 Total 145 132 10 ©Nemak | Public
Slide 29: Annual review process with rating agencies
During the quarter, we held our annual review process with rating agencies ©Nemak | Public
Slide 30: We remain focused on cash flow generation
We remain focused on cash flow generation • Customer negotiations • Cost structure improvement ©Nemak | Public
Slide 31: A slower adoption of electric mobility represents an opportunity for Nemak
A slower adoption of electric mobility represents an opportunity for Nemak as well ICE and hybrid vehicles currently represent most of our revenue base ©Nemak | Public
Slide 33: For more information contact us at:
For more information contact us at: investors.nemak.com [email protected] ©Nemak | Public

Nemak — Q1 2024 Earnings Presentation on 6ix

Nemak SAB de CV — Q1 2024 Earnings Presentation

Slide 1: 1Q24 Results

Slide 2: Forward-Looking Statement

Slide 3: Agenda

Slide 4: Improved EBITDA and margins during 1Q24

Slide 5: We are determined to continue delivering solid results

Slide 6: Focus on profitability through customer negotiations and cost-saving initiatives

Slide 7: Our flexible product offer allows us to participate in a dynamic market

Slide 8: Our ICE powertrain components have placed Nemak in a leadership position

Slide 9: Strong foundations to capitalize on the transformation of the automotive industry

Slide 10: Our structural components portfolio supports our flexibility strategy

Slide 11: New awarded business for US$55 M

Slide 12: Start of production of two additional structural components in Poland

Slide 13: Launch of new ICE components in Europe

Slide 14: CDP upgraded Nemak's score to A-

Slide 15: Certification of three facilities by the Aluminum Stewardship Initiative

Slide 16: Nemak Mexico recognized as Socially Responsible Company by CEMEFI

Slide 17: Financial Results

Slide 18: We achieved 10% y-o-y EBITDA growth

Slide 19: Customer negotiations continue

Slide 20: Mixed trends in light-vehicle sales and production across our main regions

Slide 21: Volume decreased 2% y-o-y totaling 10.6 million equivalent units

Slide 22: EBITDA was US$145 M, representing 10% y-o-y growth

Slide 23: EBITDA per equivalent unit was US$13.7

Slide 24: Operating Income was US$55 M

Slide 25: Our working capital increased sequentially US$120 M

Slide 26: Our net debt stood at US$1.7 B

Slide 27: Capital expenditures totaled US$104M

Slide 28: Summary of regional results

Slide 29: Annual review process with rating agencies

Slide 30: We remain focused on cash flow generation

Slide 31: A slower adoption of electric mobility represents an opportunity for Nemak

Slide 32: Q&A

Slide 33: For more information contact us at: