Martinrea International Inc. · TSX:MRE
Martinrea International — Q2 2023 Earnings Presentation
18 slides from Martinrea International's earnings presentation, Aug 9, 2023
Slide 1: Q2 2023 Quarterly Results Presentation
Q2 2023 QUARTERLY RESULTS PRESENTATION AUGUST 9, 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: Further Sequential Improvement in Q2 2023 as Expected; 2023 Outlook Confirmed
FURTHER SEQUENTIAL IMPROVEMENT IN Q2 2023 AS EXPECTED; 2023 OUTLOOK CONFIRMED Q2 2023 results improved quarter-over- Q2 2023 Adjusted Operating Income quarter, with Adjusted EBITDA of $161 Margin of 6.1% was higher quarter- million setting another quarterly record over-quarter, and in the range of o
Slide 6: 2023 Outlook Confirmed
2023 OUTLOOK CONFIRMED 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 76% Q2 2023 Production Sales America 21% Q2 2023 Production Sales Europe 3% Q2 2023 Production Sales Rest of World • Adjusted Operating Income Margin • Adjusted Operating Income was positive • Adjusted Operating Income was remained strong quarter-over-quarter, in the secon
Slide 8: New Business Awards Announced
NEW BUSINESS AWARDS ANNOUNCED Product Group Customer Annualized Sales SOP Propulsion Systems $90M 2023-2026 Lightweight Structures $60M 2023-2026 New business awards since the beginning of 2023 total approximately $220 million www.martinrea.com | 8
Slide 9: Fred Di Tosto, Chief Financial Officer
FRED DI TOSTO CHIEF FINANCIAL OFFICER www.martinrea.com | 9
Slide 10: Q2 2023 Results – Sequential Comparison to Q1 2023
Q2 2023 RESULTS – SEQUENTIAL COMPARISON TO Q1 2023 Q2 2023 results improved quarter-over-quarter compared to Q1 2023. Adjusted EBITDA set another quarterly record for the Company. In Canadian Dollars Q2 2023 Q1 2023 Production sales up slightly as higher North Production Sales $1,251.1M $1,239.5M Am
Slide 11: Q2 2023 Results – Year-Over-Year Comparison
Q2 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 Q2 2023 Q2 2022 Production Sales $1,251.1M $1,052.6M Tooling Sales $109.9M $61.2M Total Sales $1,361.1M $1,113.9M Adjusted Operati
Slide 12: Balance Sheet
BALANCE SHEET NET DEBT - Excluding IFRS-16 ($ Millions) $1,200.0 $1,000.0 $800.0 Q2 2023 net debt (excluding the impact $600.0 $955.9 of IFRS-16) declined by approximately $857.7 $908.7 $937.4 $400.0 $662.6 $682.4 $18 million compared to Q1 2023. $200.0 $0.0 Net-debt-to-Adjusted EBITDA ended the 201
Slide 13: Questions?
QUESTIONS? www.martinrea.com | 13
Slide 14: Appendix
APPENDIX www.martinrea.com | 14
Slide 15: Results - Sales
Q2 2023 RESULTS - SALES $1,400 • Sales up 22.2% over Q2 2022: $1,200 – Production sales up 18.9% +22.2% YoY Sales ($ Millions) – Tooling sales up 79.5% $1,000 $800 $600 $1,361.1 • Increase in production sales due to: $1,113.9 $400 – New business launches, including the Mercedes EVA II, $200 General
Slide 16: Results - Adjusted Operating Income Margin
Q2 2023 RESULTS - ADJUSTED OPERATING INCOME MARGIN 8.0% • Adjusted Operating Income Margin up 200bps year-over-year, reflecting: – Higher sales volumes and corresponding higher utilization of assets Adjusted Operating Income 6.0% – Productivity and efficiency improvements • Partially offset by: Marg
Slide 17: Results – Adjusted Net Earnings Per Share
Q2 2023 RESULTS – ADJUSTED NET EARNINGS PER SHARE $0.80 • Adjusted EPS of $0.62 improved year-over-year, Adjusted Earnings Per Share $0.60 reflecting: – The factors impacting sales and margins ($) $0.40 described earlier $0.62 $0.20 – A lower effective tax rate $0.32 – Partially offset by higher int
Slide 18: Results - Free Cash Flow
Q2 2023 RESULTS - FREE CASH FLOW $30 • Free Cash Flow improved year-over-year due to: Free Cash Flow ($ Millions) – Higher Adjusted EBITDA $20 – Lower capex $23.5 $25.4 – Partially offset by higher interest and cash $10 taxes paid, and an increase in non-cash working capital • Annual Free Cash Flow
Martinrea International — Q2 2023 Earnings Presentation on 6ix