Remy International — Investor Presentation (May 2015)
21 slides from Remy International's investor presentation, May 12, 2015
Slide 1: Investor Presentation May 2015
Investor Presentation May 2015
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation may contain forecasts, projections, expectations, or opportunities regarding Remy that are "forward-looking statements" as defined in the Private Securities Litigation Act of 1995. Such forward-looking statements involve risks and uncertainties that could
Slide 3: Remy International: Building on our Powerful Heritage
■ Leading supplier for OE and aftermarket applications ■ Emerging leader in manufacturing hybrid electric motors ■ Innovative and technology-driven product offerings supported by strong patent portfolio Global market leader in the manufacturing and remanufacturing of rotating electrical components f
Slide 4: What makes Remy different?
What makes Remy different? square4 Strong Brands – Delco Remy®, Remy® & Wicked Bilt® square4 Leading-Edge Technology – High efficiency alternators, Start-stop motors & high power density electric motors square4 Manufacturing Experience – More starter motors installed than all domestic competitors co
Slide 5: Make and Sell Globally
North Hungary / Tunisia 4% Brazil 4% Production by Geography Global Business Sales by Application LD OE 32% Commercial Vehicle 32% America 52% China / Korea 40% 5 Make and Sell Globally . . . Leveraging Low Cost Manufacturing and Asia Growth Sales Source: 2014 Remy 10-K LD OE Drives Top-line Growth;
Slide 6: Marquee Customer Base
Aftermarket CustomersOE Customers “Marquee” Customer Base 6 Selling to Market Leaders in All Regions Under Our Globally Recognized Brands
Slide 7: Positioned for Growth
Positioned for Growth 2013 Rev: $1.1B • 12% EBITDA margins with potential upside to 14% • Outpace continued global vehicle production growth • Capitalize on global commercial 2017 Rev: $1.5B 7 Healthy Mix of Organic Growth and Acquisitions vehicle opportunities • Expand profitable aftermarket produc
Slide 8: Increasing Market Share
Increasing Market Share Light Duty Vehicle Production Commercial Vehicle Production 8 square4 Remy outpacing market – LD and CV segments square4 Current OE Backlog has grown 38% over 2013 sales square4 Aftermarket Sales growing in flat market – driven by multi-line, international growth and acquisit
Slide 9: China Growth Opportunity
China Growth Opportunity China Light Duty Vehicle Production China Medium & Heavy Duty Production 9 square4 World’s largest automotive market square4 1/3 of Global Commercial Vehicle Market square4 50% of Global Light Duty growth from 2014 – 2018 will come from China square4 Remy China OE sales only
Slide 10: Growth Opportunities Through Remy Technology
Automotive & 12V & 48V iBAS e-Turbocharger SR & IPM ISG HVH250 & 410 A N D F U E L C O N S U M P T I O N MARKET OPPORTUNITIES FOR INCREASED ELECTRIFICATION MGI & TFPM Market Drivers for Increased Vehicle Electrification: (1) Comply with Global Regulations at Minimum Cost (2) Reduce Cost of Vehicle O
Slide 11: Financial Metrics and Guidance
Financial Metrics Guidance $ Millions FY 2013 FY 2014 Q1 2015 FY 2015 Sales 1,140.2$ 1,182.3$ 303.4$ $1,130 - $1,200 Adjust. EBITDA1 144.1$ 139.4$ 25.6$ $125 - $132 % of Sales 12.6% 11.8% 8.4% square4 2014 Net Sales: $1.2 billion, up 4% − China up 36% − Global OE Commercial Vehicle up 12% − Light Du
Slide 12: Performance Evolution
Performance Evolution 2007 2014 2017 Yesterday Today Tomorrow Revenue $1.1 billion $1.2 billion $1.5 billion EBITDA % 5% 11.8% 12 - 14% Business Mix Original Equipment 52% 48% 50% 12 Poised for Top and Bottom Line Organic Growth Aftermarket 48% 52% 50% Regional Mix Americas 81% 69% 60% Europe 11% 7%
Slide 13: Capital Management Strategy
Capital Management Strategy Organic Growth Acquisitions ShareholderReturn • Increase profitable Aftermarket product portfolio • Grow Asia – add • Targets that expand our: – Product portfolio – Geographic footprint • Paying quarterly $0.11 per share dividend • Maintain and 13 production capacity • Ca
Slide 14: Why Invest with Remy?
Why Invest with Remy? ■ Global Opportunity ■ Exceptional Brand ■ Sustainable low cost structure ■ Strong Cash Flow ■ Low Capital investment 14 Proven Strategy and Execution Drive Results ■ Well-Positioned for Growth: – China – Commercial Vehicles – Aftermarket – Vehicle Electrification – Strategic A
Slide 15: Appendix
Appendix 15
Slide 16: Non-U.S. GAAP Measures
Non-U.S. GAAP Measures Accounting principles generally accepted in the United States (U.S. GAAP) is the standard framework of guidelines for financial accounting. U.S. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparat
Slide 17: Non-GAAP Reconciliation – Adjusted EBITDA and Net Debt to Adjusted EBITDA
Non-GAAP Reconciliation – Adjusted EBITDA and Ratio of Net Debt to Adjusted EBITDA (in millions) Years Ended December 31, 2008 2009 2010 2011 2012* 2013 2014 Net income (loss) attributable to common stockholders (28.9)$ (14.8)$ (13.7)$ 62.2$ 119.5$ 15.1$ 6.1$ Adjustments: Interest expense 54.9 49.5
Slide 18: Non-GAAP Reconciliation – Net Debt
Non-GAAP Reconciliation – Net Debt 2009 2010 2011 2012 2013 2014 (in millions, except percentages) Short-term debt 23.0$ 18.3$ 14.2$ 9.1$ 2.4$ 7.8$ Current maturities of long-term debt 2.3 3.3 10.3 3.4 3.4 3.5 The following table reconciles the Company’s ratio of debt to total capital calculated in
Slide 19: Non-GAAP Reconciliation – Adjusted EBITDA
Non-GAAP Reconciliation – Adjusted EBITDA Adjusted EBITDA is defined by the Company as net income attributable to common stockholders before (i) interest expense–net, (ii) income tax expense, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) net income attributable to n
Slide 20: Guidance Assumptions
square4 Production Rates: – Global LD Production up 1.8% – North America MD/HD Production up 9.2% – Off highway production down 9.3% Guidance Assumptions 20 square4 Currency & Commodities: – Euro @ 1.12 – Korean Won @ 1099.2 – Brazil Real @ 2.80 – Copper @ $2.88 per pound
Slide 21: Non-GAAP Reconciliation – Cash earnings per share
Non-GAAP Reconciliation – Cash earnings per share Cash earnings is defined as adjusted EBITDA less cash paid for (i) income taxes, (ii) interest expense and (iii) capital expenditures. We define adjusted operating income as operating income (loss) before (i) purchase accounting related charges, (ii)
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