Allison Transmission Holdings, Inc. · NYSE:ALSN

Allison Transmission — Q1 2023 Earnings Presentation

13 slides from Allison Transmission's earnings presentation, Apr 27, 2023

  1. Slide 1: Q1 2023 Earnings Release

    Q1 2023 Earnings Release April 27th, 2023 Dave Graziosi, Chairman & CEO Fred Bohley, Senior Vice President, CFO & Treasurer 1

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement The following information contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995). The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions

  3. Slide 3: Non-GAAP Financial Information

    Non-GAAP Financial Information We use Adjusted EBITDA and Adjusted EBITDA as a percent of net sales to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA as a percent of net sales provide management, investors and creditors with useful measures of the operationa

  4. Slide 4: Call Agenda

    Call Agenda Q1 2023 Performance 2023 Guidance Update 4

  5. Slide 5: Q1 2023 Performance Summary

    Q1 2023 Performance Summary ($ in millions, except per share data; variance % from Q1 2022) Net Sales Gross Profit Net Income Adjusted EBITDA* Diluted Earnings Per Share $741 $361 $170 $276 $1.85 +9% +13% +32% +13% +42% Record first quarter Net Sales. Increase principally driven by: Increase was pri

  6. Slide 6: Q1 2023 Net Sales Performance

    Q1 2023 Net Sales Performance ($ in millions, variance % from Q1 2022) End Markets Q1 2023 Variance Commentary Principally driven by strength in customer demand for medium duty and North America On-Hwy $376 9% class 8 vocational trucks and price increases on certain products Principally driven by hi

  7. Slide 7: Q1 2023 Financial Performance

    Q1 2023 Financial Performance ($ in millions, except per share data) Q1 2023 $ Variance* % Variance* Commentary Increase was principally driven by price increases on certain products and higher demand in the Service Parts, Support Equipment & Other and NA On- Net Sales $741 $64 9% Highway End Market

  8. Slide 8: Q1 2023 Cash Flow Performance

    Q1 2023 Cash Flow Performance ($ in millions, variance from Q1 2022) Q1 2023 $ Variance % Variance Commentary Net Cash Provided by Principally driven by higher gross profit partially offset by higher operating working $193 $31 19.1% capital requirements Operating Activities CapEx $24 $4 20.0% Princi

  9. Slide 9: 2023 Guidance

    2023 Guidance ($ in millions) Full year 2023 guidance ranges provided to the market on April 27, 2023 $2,900 - $3,000 $550 - $600 $1,010 - $1,090 $635 - $695 $125 - $135 $510 - $560 Net Cash Provided Adjusted Capital Adjusted Free Net Sales Net Income by Operating EBITDA* Activities Expenditures Cas

  10. Slide 10: Appendix

    Appendix Non-GAAP Financial Information 10

  11. Slide 11: Non-GAAP Reconciliations (1 of 3)

    Non-GAAP Reconciliations (1 of 3) Adjusted EBITDA Reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, March 31, March 31, 2018 2019 2020 2021 2022 2022 2023 2023 Net Income (GAAP) $639 $604 $299 $442 $531 $129 $170 $572 plus: Interest e

  12. Slide 12: Non-GAAP Reconciliations (2 of 3)

    Non-GAAP Reconciliations (2 of 3) Adjusted Free Cash Flow Reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, March 31, March 31, 2018 2019 2020 2021 2022 2022 2023 2023 Net Cash Provided by Operating Activities (GAAP) $837 $847 $561 $6

  13. Slide 13: Non-GAAP Reconciliations (3 of 3)

    Non-GAAP Reconciliations (3 of 3) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2023 Low High Net Income (GAAP) $ 550 $ 600 plus: Depreciation and amortization 172 172 Income tax expense 152 182 Interest expense, net 121 121 Stock-based compensation expense 21 21 Unrealized

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