Martinrea International Inc. · TSX:MRE
Martinrea International — Q3 2023 Earnings Presentation
17 slides from Martinrea International's earnings presentation, Nov 8, 2023
Slide 1: Q3 2023 Quarterly Results Presentation
Q3 2023 QUARTERLY RESULTS PRESENTATION NOVEMBER 8, 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: Status of Operations
STATUS OF OPERATIONS North 75% Q3 2023 Production Sales America 22% Q3 2023 Production Sales Europe 3% Q3 2023 Production Sales Rest of World • Adjusted Operating Income Margin • Adjusted Operating Income Margin • Adjusted Operating Income Margin declined quarter-over-quarter, mainly improved quarte
Slide 6: New Business Awards Announced
NEW BUSINESS AWARDS ANNOUNCED Product Group Annualized Sales SOP Lightweight Structures $70M 2025 Propulsion Systems $10M 2025 New business awards since the beginning of 2023 total approximately $300 million www.martinrea.com | 6
Slide 7: Fred Di Tosto, Chief Financial Officer
FRED DI TOSTO CHIEF FINANCIAL OFFICER www.martinrea.com | 7
Slide 8: Q3 2023 Results – Sequential Comparison to Q2 2023
Q3 2023 RESULTS – SEQUENTIAL COMPARISON TO Q2 2023 Q3 2023 results were strong, generally consistent quarter-over-quarter from a production sales and operating income perspective; Adjusted EBITDA continued at record levels, and we generated strong Free Cash Flow, as expected. In Canadian Dollars Q3
Slide 9: Q3 2023 Results – Year-Over-Year Comparison
Q3 2023 RESULTS – YEAR-OVER-YEAR COMPARISON Adjusted Operating Income and Adjusted EBITDA improved year-over-year on higher production sales. In Canadian Dollars Q3 2023 Q3 2022 Production Sales $1,250.4M $1,127.1M Tooling Sales $128.6M $67.0M Total Sales $1,378.9M $1,194.1M Adjusted Operating Incom
Slide 10: Balance Sheet
BALANCE SHEET NET DEBT - Excluding IFRS-16 ($ Millions) $1,200.0 $1,000.0 Q3 2023 net debt (excluding the impact $800.0 of IFRS-16) declined by approximately $600.0 $48 million compared to Q2 2023. $908.7 $955.9 $937.4 $889.2 $400.0 $857.7 $662.6 $682.4 $200.0 Net-debt-to-Adjusted EBITDA continued $
Slide 11: Rob Wildeboer, Executive Chairman
ROB WILDEBOER EXECUTIVE CHAIRMAN www.martinrea.com | 11
Slide 12: Questions?
QUESTIONS? www.martinrea.com | 12
Slide 13: Appendix
APPENDIX www.martinrea.com | 13
Slide 14: Sales ($ Millions)
Q3 2023 RESULTS - SALES • Sales up 15.5% over Q3 2022: $1,400 – Production sales up 10.9% $1,200 – Tooling sales up 92.0% Sales ($ Millions) $1,000 +15.5% YoY • Increase in production sales due to: $800 $600 $1,194.1 $1,378.9 – New business launches, including the Mercedes EVA2 (in $400 North Americ
Slide 15: Adjusted Operating Income Margin
Q3 2023 RESULTS - ADJUSTED OPERATING INCOME MARGIN • Adjusted Operating Income Margin increased 20bps year-over-year, 8.0% reflecting: – Higher sales volumes and corresponding higher utilization of assets Adjusted Operating Income 6.0% – Productivity and efficiency improvements at certain facilities
Slide 16: Adjusted Net Earnings Per Share
Q3 2023 RESULTS – ADJUSTED NET EARNINGS PER SHARE $0.80 • Adjusted EPS of $0.68 improved year-over-year, Adjusted Earnings Per Share reflecting: $0.60 – The factors impacting sales and margins described earlier ($) $0.40 $0.68 $0.56 – A net foreign exchange gain of $7.1M $0.20 compared to a gain of
Slide 17: Free Cash Flow ($ Millions)
Q3 2023 RESULTS - FREE CASH FLOW $80 • Free Cash Flow improved year-over-year due to: Free Cash Flow ($ Millions) $60 – Higher Adjusted EBITDA – Lower capex $40 $64.1 $79.2 – Partially offset by higher interest and cash $20 taxes paid, and a decrease in cash provided by non-cash working capital $0 Q
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