Uacj Corporation · TSE:5741
Uacj — Investor Day (May 2024)
20 slides from Uacj's investor day presentation, May 28, 2024
Slide 1: UACJ Automotive Whitehall Investor Day 2024
UACJ Automotive Whitehall Investor Day 2024 May 28, 2024 © UACJ Corporation. All rights reserved.
Slide 2: UACJ Automotive Whitehall Industries (UWH)
UACJ Automotive Whitehall Industries (UWH) Products (extrusion/forgoing/casting) Sunroof guides Bumpers Crash boxes Battery housings Customers 6 1,300 Plants in NA Employes EV manufacturers in North America Major Japanese automotive OEM $M’s ＄288 FY2023 ＄22 manufacturer etc. Revenue EBITDA © UAC
Slide 3: Vertically Integrated Process Flow
Vertically Integrated Process Flow Fabricate • Machining Assemble Billet Extrude • Laser Cutting • Manual • Robotic • Automated Welding • Bending Strengths: • Superior aluminum extrusion process control • Precision machining (nearly 50 years) • Vertical integration • Welding, Laser cutting, bending
Slide 4: Expansion and Sales History
Expansion and Sales History © UACJ Corporation. All rights reserved. 3
Slide 5: 2023 Extrusion Successes
2023 Extrusion Successes • Reduce IDL by streamlining team responsibilities – Team Leaders and Extrusion Techs • Reduced downtime • Improving Storm Water Prevention and Spill Prevention – Developing containment plans for MI • Reduced billet inventory by 2M lbs since April, 2023 • Reduced PPM scrap f
Slide 6: 2023 Quick Response to Lower Sales
2023 Quick Response to Lower Sales Recovery Plan Results • Sales & Marketing tasked with negotiating improved pricing & terms $2.0 million Price Negotiations • Continuous Improvement/Kaizen $1.3 million • Purchasing - $1.5 million • $1.6 million Reduced Freight Costs Kaizen Events • Reorganized and
Slide 7: Competition – Vertically Integrated Automotive Structural Part Suppliers
Competition – Vertically Integrated Automotive Structural Part Suppliers UACJ Whitehall is the most capable overall relative to our competition: • Leader in structural extrusion capability and process control • Tight tolerance machining for almost 50 years • Agile, Fast and Flexible • Serving major
Slide 8: Our People Make Us What We Are
Our People Make Us What We Are © UACJ Corporation. All rights reserved. 7
Slide 9: Customer Quality Performance
Customer Quality Performance One of 6 Honda Suppliers in North America Zero PPM for GM – 12 consecutive Quality to receive multiple Supplier Awards Excellence Awards © UACJ Corporation. All rights reserved. 8
Slide 10: Is N.A. EV Demand Slowing? Factors to Monitor
Is N.A. EV Demand Slowing? Factors to Monitor OEM EV program delays and growth in EV inventory reflect short-term market conditions—OEM product strategy driven by multiple factors that will overcome current challenges long-term Factors to Monitor Implications • Current legacy OEM EV models are typic
Slide 11: Pace of EV Adoption: U.S. EV Sales and Market Share
Pace of EV Adoption U.S. EV Sales and Market Share EVs continue to increase as percentage of total new vehicle sales (7.7% in 2023)—EV incentives, new program launches, and OEM electrification targets combined support continued BEV adoption $M’s Total Vehicle Sales • EV sales increased 59.8% YOY fro
Slide 12: EV adoption curve is influenced by several outside factors
EV adoption curve is influenced by several outside factors Illustrative Electric Vehicle Adoption Curve Example “Bull” Case and “Bear” Case Example “Bull” Case: •Battery cost and range advances accelerated (e.g., due to Lithium-solid) •Emissions regulations continue to tighten, requiring greater ele
Slide 13: Is N.A. EV Demand Slowing? EV Forecast Model Comparison
Is N.A. EV Demand Slowing? EV Forecast Model Comparison Forecast of EV adoption in the US maintains growth despite industry challenges such as model availability, model incentive qualifications, and high interest rates—forecast likely to maintain growth as the US Government and OEMs remain steadfast
Slide 14: Automotive Vehicle Lightweighting Material Transition
Automotive Vehicle Lightweighting Material Transition Fuel economy regulations (CAFE) are a major driver of material changes. As part of vehicle light weighting engineering approaches the industry will utilize higher strength steel, aluminum and plastics • Suppliers are analyzing the need for new eq
Slide 15: Analysis of Business Profit (FY2023 Results → FY2027 Forecast)
Analysis of Business Profit (FY2023 Results → FY2027 Forecast） $M’s 0.9 (7.7) 4.7 (1.7) 2.3 (9.6) 16.0 3.6 (4.0) 26.6 33.7 2.6 FY2023 vol/mix billet Metal inflation Depreciation CI/Kaizen Sales Fixed Forgiveable Other FY2027 Business premium price Price costs Loan Business Profit Profit © UACJ Corpo
Slide 16: 2024 Quick Response to Lower Sales
2024 Quick Response to Lower Sales Recovery Plan Targets • Targeting $3.5 million in transfer business due to Anti-dumping duties on China and Mexico Short Term Sales • Purchased components and freight savings of $1.5 million • Kaizen savings $1.4 million • Scrap reduction $1.0 million Continuous Im
Slide 17: Legacy Low Margin Business Phasing out Through Attrition
Legacy Low Margin Business Phasing out Through Attrition Higher margin structural segment rises from 82% in 2023 to 93% in 2027 Low margin sunroof segment drops from 14% in 2023 to 4% in 2027 © UACJ Corporation. All rights reserved. 16
Slide 18: UWH Sales Growth
UWH Sales Growth UWH TAILWINDS HEADWINDS • Many new EV vehicles to launch in • While the original EV adoption timing in the coming years. NA was a bit aggressive, OEM’s are still • New Anti-Dumping and countervailing moving forward with revised plans. duty investigation by US government • Aluminum f
Slide 19: Sustainability/Environmental Activity
Sustainability/Environmental Activity FY2022 and 2023 CO2 Emissions – 32% reduction in Scope 1&2 emissions per ton of product shipped. FY 2022 FY2023 Fuel Scope 1 CO2 emissions 7,500 7,700 (tons CO2) Electricity Scope 2 Co2 emissions 14,200 11,300 (tons CO2) Scope 1+2 CO2 emissions 22,000 19,000 (to
Slide 20: UACJ Automotive Whitehall Takeaways
UACJ Automotive Whitehall Takeaways 1 UWH has a fantastic, stable team of bright, dedicated people 2 Top line growth paused in 2023 due to delays in the adoption of EV’s in North America 3 This pause has allowed us to redirect our efforts to cost reduction, improved productivity and quality 4 Our qu