Nexteer Automotive Group Limited · HKEX:1316
Nexteer Automotive — Q1 2020 Earnings Presentation
15 slides from Nexteer Automotive's earnings presentation, Apr 20, 2020
Slide 1: 2020 Q1 Investor Communication
2020 Q1 Investor Communication 20 April 2020 Copyright 2020, Nexteer Automotive Corporation. All rights reserved. 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement These materials have been prepared by Nexteer Automotive Group Limited (“Nexteer” or the “Company”) and are being furnished to you solely for informational purposes. The information contained in these materials has not been independently verified. NO REPRESENTATION OR WARRANTY
Slide 3: Presenters
Presenters BILL ROBIN QUIGLEY M I L AV E C Senior Vice President Senior Vice President Chief Financial Officer Chief Technology Officer Chief Strategy Officer 33
Slide 4: Business Update
Business Update ▪ Current environment largely unchanged from March 30 update – NA and EMEASA manufacturing operations currently suspended in compliance with government orders and customer production requirements ▪ Customer expectations for restart target likely May, yet subject to government restric
Slide 5: Business Update – Q1 2020 China Trend
Business Update – Q1 2020 China Trend (units in thousands) ▪ Q1 OEM unit production and wholesale activity as reported by CAAM ▪ March 2020 provided uptrend for both (86%) 437% metrics compared with February low – Both metrics behind 2019 levels ▪ IHS Markit expecting slow yet steady (units in thous
Slide 6: Safe Restart: Global Manufacturing Restart Playbook
Global Manufacturing Restart Playbook Playbook in Place 1. Compilation of best 3. Quality Control practices identified across multiple- 2. People Safety 4. Production Readiness industries 2. Further enhances strong Nexteer Quality / Health / Safety policies and protocols already Safe in place 3. On-
Slide 7: Global Manufacturing Restart Playbook: People Safety
Global Manufacturing Restart Playbook 2. People Safety General work ▪ Daily employee health screening instruction ▪ Employee education - personal and created / work area cleaning and safety visual aids ▪ PPE provided to all employees posted ▪ Minimum work area 6-foot distance prominently or barrier
Slide 8: Q1 2020 Backlog Update
Q1 2020 Backlog Update ORDER-TO-DELIVERY BACKLOG* AS OF 2019 Snapshot DEC. 31, 2019 ▪ 2019 Customer Booking of $7.0 Billion; 50% new / conquest wins 17% 23% ▪ Backlog of $26.4B at YE 2019 11% $26.4B $26.4B 54% 3% EPS Current Environment 69% CIS 24% N. America HPS Asia Pac. ▪ 2020 Bookings initially
Slide 9: Dual Pinion EPS Market Application
Dual Pinion EPS Market Application ▪ Bridges Technologies ▪ Scalable from 9KN to 14.5KN ▪ Cost-efficient solution (in overlapping load capabilities with Rack EPS) ▪ Leverages Nexteer’s building blocks from market-leading Rack & Single Pinion EPS: #1 global position in 2019 for both REPS & SPEPS CEPS
Slide 10: Nexteer DPEPS Load Advantage
Nexteer DPEPS Load Advantage 25000 ▪ Achieves higher load capacity than RACK FORCE (N) 20000 competitors (up to 14.5KN) High Output 15000 DPEPS REPS ▪ Fully validated on test bench & demonstrated 10000 DPEPS to OEM on SUV and D-Segment sedans 5000 SPEPS ▪ Launches to market in 2023 on LCV 0 ▪ Offers
Slide 11: High Output Rack EPS
High Output Rack EPS Opens New Hydraulic-to-Electric Conversion Wave Capable of Higher Rack Forces ▪ H.O. REPS increases load capacity up to 24kN (vs. standard REPS in production 10kN – 15kN) Advantages: Safety, Comfort & Fuel Economy ▪ Enhanced fuel economy via mass reduction & on-demand engine aut
Slide 12: 2019 Sustainability Report
2019 Sustainability Report Corporate Sustainability An Opportunity To Differentiate Nexteer Focused On 5 Key Performance Areas For Creating Stakeholder Value ▪ Environmental, Health & Safety, Business Ethics, Supply Chain Excellence, Value Creation, Community Engagement 2019 Achievements ▪ Highest E
Slide 13: Summary
Summary ▪ Given current information, Q2 2020 may be low-point with potential gradual restart and ramp-up of OEM production in May / June timeframe ▪ BUT situation remains very fluid and subject to risks and uncertainties beyond our control; government mandates and restrictions and changing customer
Slide 14: Nexteer Joins COVID-19 Fight: Prints PPE Components
Nexteer Joins COVID-19 Fight: Prints PPE Components Using 3D Printers in Saginaw, USA & Tychy, Poland to Produce Face Masks & Shields Components ▪ Donating to local medical facilities ▪ Produced 900 face masks & 600 face shields as of 4/12 ▪ Increasing to 1,000 per day in Saginaw, MI with injection
Slide 15: Strategy for Profitable Growth
Strategy for Profitable Growth Expand Strengthen Capitalize on Optimize Cost Pursue Select Target China & Diversify Technology EPS as Enabler Structure Acquisitions & Emerging Revenue Base Leadership for ADAS & Alliances Markets A Well-defined Plan To Drive Stakeholder Value 15
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