Nemak Sab De Cv · BMV:NEMAK/A

Nemak Sab De Cv — Q2 2021 Earnings Presentation

32 slides from Nemak Sab De Cv's earnings presentation, July 2021

  1. Slide 1: 2Q21 Results

    2Q21 Results J U LY 2 0 2 1 ©Nemak | Public 1

  2. Slide 2: Agenda

    Agenda • 2Q21 Highlights • Financial Overview Armando Tamez Alberto Sada Adrián Althoff CEO CFO IR Officer ©Nemak | Public 2

  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: Solid business and financial performance

    Solid business and financial performance Improved industry conditions EV applications support product mix Operational efficiencies ©Nemak | Public 4

  5. Slide 5: EBITDA per eq. unit of US$16.7

    EBITDA per eq. unit of US$16.7 Second-best figure for any second quarter in our history ©Nemak | Public

  6. Slide 6: Ramp-up of e-mobility and structural applications business in Europe and North America

    Ramp-up of e-mobility and structural applications business in Europe and North America Image is for illustration purposes only • Battery housings for plug- in hybrid and fully electric vehicles of European and US-based OEMs ©Nemak | Public 6

  7. Slide 7: We continue to promote and facilitate employee access to COVID-19 vaccines

    We continue to promote and facilitate employee access to COVID-19 vaccines • Support for widespread vaccination • Robust health protocols at our facilities ©Nemak | Public 7

  8. Slide 8: Additional new business during 2Q21

    Additional new business during 2Q21 Heads, blocks, e-mobility and structural parts in Europe and North America ~80% of this amount represented contracts to renew existing business New contracts worth a total of ~US$240 million annually ©Nemak | Public 8

  9. Slide 9: Supplier of the Year and Overdrive awards from General Motors

    We received the Supplier Of the Year and Overdrive awards from General Motors Nemak was recognized for demonstrating “focused initiatives and cutting-edge culture” ©Nemak | Public 9

  10. Slide 10: We successfully placed two sustainability-linked bonds

    We successfully placed two sustainability-linked bonds The proceeds from these issuances are being used to refinance outstanding debt and extend our debt maturity profile ©Nemak | Public 10

  11. Slide 11: The issuances put us in a better position to create value

    The issuances put us in a better position to create value in our business • Decrease our cost of financing by US$11 million annually and extend our debt maturity • Highlight our commitment to address climate change ©Nemak | Public 11

  12. Slide 12: Shareholders' Meetings

    Proposal to merge Controladora Nemak into Nemak to be voted in General Extraordinary Shareholders’ Meetings This transaction would enhance our profile as a publicly traded company, and potentially improve our share liquidity and performance ©Nemak | Public

  13. Slide 13: Financial Results

    Financial Results ©Nemak | Public 13

  14. Slide 14: Significant performance recovery y-o-y

    Significant performance recovery y-o-y • Improvement across our global operations ©Nemak | Public 14

  15. Slide 15: Light-vehicle sales increased substantially in all regions

    During 2Q21, light-vehicle sales increased substantially in all regions • Pent-up demand • Better market conditions ©Nemak | Public 15

  16. Slide 16: North America and Europe recorded stronger light-vehicle sales

    North America and Europe recorded stronger light-vehicle sales • Better economic conditions • Government stimulus programs • Disposable income driven demand ©Nemak | Public 16

  17. Slide 17: Continued industry recovery despite semiconductor shortage

    Notwithstanding the global semiconductor shortage, we expect continued industry recovery • Positive outlook on light- vehicle production in second half of year ©Nemak | Public 17

  18. Slide 18: Rest of the World showed overall positive trend

    Rest of the World showed overall positive trend • Supportive general economic conditions in China and Brazil ©Nemak | Public 18

  19. Slide 19: Volume benefited from e-mobility and structural applications

    Nemak’s volume benefited from e-mobility and structural applications segment • Increased customer demand • New product launches across our regions ©Nemak | Public 19

  20. Slide 20: 2Q21 Global Results

    2Q21 Global Results Revenues (M USD) 1,038 947 955 907 895 403 Volume 1Q20 2Q 3Q 4Q 1Q21 2Q (M Eq. Units) 10.5 4.4 10.1 10.1 10.7 9.0 ©Nemak | Public 20

  21. Slide 21: We maintained initiatives to control expenses

    We maintained initiatives to control expenses • We preserved a significant portion of efficiencies achieved in 2020 ©Nemak | Public 21

  22. Slide 22: 2Q21 Global Results: EBITDA

    2Q21 Global Results EBITDA (M USD) Unitary EBITDA (USD/Eq. unit) All-time 2nd 2nd record best 1Q best 2Q 178 17.6 169 16.7 15.8 150 150 14.9 142 13.5 -37 -8.4 Volume 1Q20 2Q 3Q 4Q 1Q21 2Q 1Q20 2Q 3Q 4Q 1Q21 2Q (M Eq. Units) 10.5 4.4 10.1 10.1 10.7 9.0 ©Nemak | Public 22

  23. Slide 23: Operating Income was US$69 million

    Operating Income was US$69 million Supported by same factors that benefited EBITDA ©Nemak | Public 23

  24. Slide 24: Net Income was US$44 million

    Net Income was US$44 million Supported by same factors benefiting Operating Income along with non-cash currency effects ©Nemak | Public 24

  25. Slide 25: CAPEX during 2Q21 amounted to US$72 million

    CAPEX during 2Q21 amounted to US$72 million • Focus on investment in e-mobility and structural applications ©Nemak | Public 25

  26. Slide 26: Leverage ratio reached pre-pandemic levels

    Leverage ratio reached pre-pandemic levels Net Debt / EBITDA (LTM base, times) 4.75 4.0 4.0 3.5 3.4 2.8 2.7 • Net leverage at 2.1x 2.1 2.1 3.6 3.1 2.5 2.5 1Q 2Q 3Q 4Q 1Q 2Q Ratio w/o COVID-19 COVID-19 Covenant expenses expenses ©Nemak | Public 26

  27. Slide 27: Sustainability-linked bonds extended debt maturity profile

    Sustainability-linked bonds helped extend debt maturity profile from 3.95 to 7.34 years Both issuances have an investment grade structure ©Nemak | Public 27

  28. Slide 28: Stable outlook from rating agencies

    Stable outlook from rating agencies • Our credit ratings remain at BBB-, BB+, and Ba1 ©Nemak | Public 28

  29. Slide 29: Summary of regional results 2Q21

    Summary of regional results 2Q21 Revenues 2Q21 2Q20 % Var. North America 462 182 154 Europe 381 156 144 Rest of World 112 65 72 Total 955 403 137 EBITDA 2Q21 2Q20 % Var. North America 74 (24) NA Europe 68 (16) NA Rest of World 8 3 183 Total 150 (37) NA ©Nemak | Public 29

  30. Slide 30: 2021 Guidance Update

    2021 Guidance Update Original Update Volume: 38.8 M Eq. Units Volume: 39.5 M Eq. Units Revenue: US$3.6 B Revenue: US$3.9 B EBITDA: US$552 M EBITDA: US$600 M CAPEX: US$380 M CAPEX: US$380 M ©Nemak | Public 30

  31. Slide 31: Q&A

    Q&A ©Nemak | Public 31

  32. Slide 32: For more information contact us

    For more information contact us at: investors.Nemak.com investor@Nemak.com ©Nemak | Public 32

Nemak — Q2 2021 Earnings Presentation on 6ix