Martinrea International Inc. · TSX:MRE
Martinrea International — Q1 2023 Earnings Presentation
21 slides from Martinrea International's earnings presentation, May 4, 2023
Slide 1: Q1 2023 Quarterly Results Presentation
Q1 2023 QUARTERLY RESULTS PRESENTATION MAY 4, 2023 ©2019 Martinrea International Inc.
Slide 2: Rob Wildeboer, Executive Chairman
ROB WILDEBOER EXECUTIVE CHAIRMAN www.martinrea.com | 2
Slide 3: Legal Disclaimer
LEGAL DISCLAIMER This presentation contains forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”), including, but not limited to, statements relating to the growth of or expectations of, improvements in, expansion of and/or guidance or outlook as
Slide 4: Pat D'Eramo, President and CEO
PAT D’ERAMO PRESIDENT AND CEO www.martinrea.com | 4
Slide 5: Strong Q1 2023 Results; 2023 Outlook Unchanged
STRONG Q1 2023 RESULTS; 2023 OUTLOOK UNCHANGED Q1 2023 results improved quarter-over- Q1 2023 Adjusted Operating Income quarter, reflecting higher production Margin was higher quarter-over- sales and Adjusted Operating Income. quarter, reflecting a lower level of Adjusted EBITDA of $153 million was
Slide 6: 2023 Outlook Unchanged
2023 OUTLOOK UNCHANGED 2023F 2022A TOTAL SALES $4.8-$5.0B $4.76B ADJUSTED OPERATING INCOME MARGIN 6%-7% 4.8% FREE CASH FLOW $150M-$200M $50.2M www.martinrea.com | 6
Slide 7: Status of Operations
STATUS OF OPERATIONS North Rest of World Europe Q1 2023 Production Sales America Q1 2023 Production Sales Q1 2023 Production Sales • Adjusted Operating Income Margin • Adjusted Operating Income declined • Adjusted Operating Income declined improved by 190 basis points quarter- quarter-over-quarter a
Slide 8: New Business Awards Announced
NEW BUSINESS AWARDS ANNOUNCED Product Group Customer Annualized Sales SOP Lightweight Structures (Chassis Structures) $50M 2024 Propulsion Systems (Fluids Systems) $20M 2023-2026 New business awards since the beginning of 2022 total approximately $250 million, in addition to $250M in replacement wor
Slide 9: Martinrea Platform Exposure by Propulsion Type
MARTINREA PLATFORM EXPOSURE BY PROPULSION TYPE 2023E 2027E 25% 50% 50% 75% ICE Platforms BEV/Hybrid Platforms ICE Platforms BEV/Hybrid Platforms www.martinrea.com | 9
Slide 10: VoltaXplore Transaction
VOLTAXPLORE TRANSACTION • On March 24th Martinrea sold its 50% equity interest in VoltaXplore to NanoXplore for an aggregate equity consideration of $10 million, paid in NanoXplore shares – Gain on disposal of $5.3 million – NanoXplore now owns 100% of the equity and intellectual property of VoltaXp
Slide 11: Fred Di Tosto, Chief Financial Officer
FRED DI TOSTO CHIEF FINANCIAL OFFICER www.martinrea.com | 11
Slide 12: Q1 2023 Results – Sequential Comparison to Q4 2022
Q1 2023 RESULTS – SEQUENTIAL COMPARISON TO Q4 2022 Q1 2023 results improved quarter-over-quarter compared to Q4 2022. Adjusted EBITDA set another quarterly record for the Company. In Canadian Dollars Q1 2023 Q4 2022 Production sales up 5.6% on higher production Production Sales $1,239.5M $1,173.6M v
Slide 13: Q1 2023 Results – Year-Over-Year Comparison
Q1 2023 RESULTS – YEAR-OVER-YEAR COMPARISON Adjusted Operating Income and Adjusted EBITDA were up sharply year-over-year on higher sales and margins. In Canadian Dollars Q1 2023 Q1 2022 Production Sales $1,239.5M $1,102.4M Tooling Sales $64.3M $52.6M Total Sales $1,303.9M $1,155.0M Adjusted Operatin
Slide 14: Balance Sheet
BALANCE SHEET NET DEBT - Excluding IFRS-16 ($ Millions) $1,200.0 $1,000.0 Q1 2023 net debt increased by $47 $800.0 million compared to Q4 2022. $600.0 $908.7 $955.9 $857.7 $400.0 $688.1 $662.2 $670.6 $662.6 $682.4 Net-debt-to-Adjusted EBITDA ended the $582.8 $200.0 quarter at 1.90x, a comfortable le
Slide 15: Rob Wildeboer, Executive Chairman
ROB WILDEBOER EXECUTIVE CHAIRMAN www.martinrea.com | 15
Slide 16: Questions?
QUESTIONS? www.martinrea.com | 16
Slide 17: Appendix
APPENDIX www.martinrea.com | 17
Slide 18: Q1 2023 Results - Sales
Q1 2023 RESULTS - SALES $1,200 • Sales up 12.9% over Q1 2022: – Production sales up 12.4% $1,000 +12.9% YoY Sales ($ Millions) – Tooling sales up 22.3% $800 $1,303.9 $600 $1,155.0 • Positive impact from: $400 – Higher vehicle production volumes as the industry continued $200 to recover from supply-r
Slide 19: Q1 2023 Results - Adjusted Operating Income Margin
Q1 2023 RESULTS - ADJUSTED OPERATING INCOME MARGIN 6.0% • Adjusted Operating Income Margin up 200bps year-over-year, reflecting: – Higher sales volumes and corresponding higher utilization of assets Adjusted Operating Income 4.0% – Favourable commercial settlements – Productivity and efficiency impr
Slide 20: Q1 2023 Results - Adjusted Net Earnings Per Share
Q1 2023 RESULTS – ADJUSTED NET EARNINGS PER SHARE $0.60 • Adjusted EPS of $0.54 improved year-over-year, Adjusted Earnings Per Share reflecting: $0.40 – The factors impacting sales and margins described earlier ($) $0.54 $0.20 – A lower effective tax rate $0.31 – Partially offset by higher interest
Slide 21: Q1 2023 Results - Free Cash Flow
Q1 2023 RESULTS - FREE CASH FLOW $0 • Free Cash Flow improved year-over-year due to: – Higher Adjusted EBITDA Free Cash Flow ($ Millions) ($20) ($31.6) – A decrease in cash used by non-cash working ($52.1) capital ($40) – Lower capex – Partially offset by higher interest paid and ($60) cash taxes Q1
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