Nemak SAB de CV · BMV:NEMAK/A

Nemak SAB de CV — Q2 2023 Earnings Presentation

26 slides from Nemak SAB de CV's earnings presentation, July 2023

1. Slide 1: 2Q23 Results

   2Q23 Results J U LY 2 0 2 3 ©Nemak | Public

2. Slide 2: Agenda

   Agenda • 2Q23 Highlights • Financial Overview Armando Tamez Alberto Sada Denise Reyes CEO CFO IR Officer ©Nemak | Public

3. Slide 3: Forward-Looking Statement

   This presentation contains forward-looking information based on numerous variables and assumptions that are inherently uncertain. They FORWARD- involve judgments with respect to, among other LOOKING things, future economic, competitive and financial market conditions and future business decisions, a

4. Slide 4: During 2Q23, we saw a positive top-line trend

   During 2Q23, we saw a positive top-line trend • New product launches and increased customer production • Easing of supply chain conditions in automotive industry • Increase in EBITDA despite inflationary pressures ©Nemak | Public

5. Slide 5: Progress in negotiations with customers to mitigate inflation effects

   Progress in negotiations with customers to mitigate inflation effects • Partial overall progress • We expect to conclude these negotiations during 3Q23 ©Nemak | Public

6. Slide 6: Progress at new facilities in Germany and Czech Republic

   We continued making progress at our new facilities: initiating test production in Germany, and setting up new equipment in Czech Republic ©Nemak | Public

7. Slide 7: Launched series production of new chassis applications

   Launched series production of new chassis applications for battery-electric SUVs and crossovers for the European market ©Nemak | Public

8. Slide 8: New business to deliver battery housings for heavy commercial vehicles

   New business to deliver battery housings for fully- electric applications of a leading, Europe-based manufacturer of heavy commercial vehicles This business amounts to US$90 M annually ©Nemak | Public

9. Slide 9: Order book for e-mobility, structure & chassis segment

   US$1.72 B To date, our order book for the e-mobility, structure & chassis segment amounts to ∼US$1.72 B annually, 2B closer to our target of 86% US$2 B for 2025 ©Nemak | Public

10. Slide 10: Emission-reduction targets as catalyst for vehicle electrification

    The adoption of more stringent emission-reduction targets has served as a catalyst for vehicle electrification including passenger and commercial vehicles ©Nemak | Public

11. Slide 11: Revenue from our e-mobility, structure & chassis segment

    EV/SC - Annual Revenue (US$ M) +28% Revenue from our 600 e-mobility, structure & 470 chassis segment 380 performs at a run-rate of more than US$600 M 170 annually and growing around a 28% y-o-y rate 2020 2021 2022 2023E ©Nemak | Public

12. Slide 12: We continue strengthening our ESG efforts

    We continue strengthening our ESG efforts ©Nemak | Public

13. Slide 13: Recognized as a top supplier by Hyundai

    We were recognized as a top supplier by Hyundai in Europe and South America Supplier of the Year 2022 by Hyundai for Excellence in Project Development and Strategic Collaboration ©Nemak | Public

14. Slide 14: Financial Results

    Financial Results ©Nemak | Public

15. Slide 15: Double-digit top-line growth vs 2Q22

    Double-digit top-line growth vs 2Q22 despite challenging global economic conditions • Improvement in light-vehicle production • New product launches in our e-mobility, structure & chassis segment ©Nemak | Public

16. Slide 16: Production recovery in certain regions amidst easing supply chain pressures

    Production recovery in certain regions amidst easing supply chain pressures Vehicle SAAR (M Units) Vehicle Production (M Units) 35.0 8.0 30.0 China 7.0 6.4 6.0 25.0 24.8 5.0 20.0 4.4 Europe 4.0 15.6 4.0 15.0 15.4 3.0 10.0 USA 2.0 5.0 1.0 2.0 0.6 Brazil 0.0 - Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22

17. Slide 17: Volume increased 11% in 2Q23

    Volume increased 11% in 2Q23 • Sustained customer production across all regions • EV/SC ramp-up ©Nemak | Public

18. Slide 18: Revenue and EBITDA were +11% and +3% y-o-y

    Revenue and EBITDA were +11% and +3% y-o-y Revenue (US$ B) EBITDA (US$ M) +11% +3% 1.323 1.197 153 149 2Q22 2Q23 2Q22 2Q23 Eq. Vol Unitary EBITDA (M units) 9.8 10.9 (US$) 15.2 14.0 ©Nemak | Public

19. Slide 19: Unitary EBITDA 8% y-o-y decrease, 14% sequential growth

    Unitary EBITDA 8% y-o-y decrease, 14% sequential growth to US$14.0 ©Nemak | Public

20. Slide 20: Net income in the quarter was US$20 M

    Net income in the quarter was US$20 M, influenced by higher interest expenses and FX losses ©Nemak | Public

21. Slide 21: We invested US$131 M, mostly into e-mobility, structure & chassis

    We invested US$131 M, mostly into our e-mobility, structure & chassis segment ©Nemak | Public

22. Slide 22: Higher working capital due to seasonal dynamics

    Higher working capital due to seasonal dynamics, higher volume and new products ramp-up ©Nemak | Public

23. Slide 23: Net Debt was US$1.5 B, 7% higher sequentially

    Net Debt was US$1.5 B, 7% higher sequentially • Investment needs and working capital requirements • Net Debt-to-EBITDA and Interest Coverage Ratios were 2.7 times and 6.6 times, respectively ©Nemak | Public

24. Slide 24: Summary of Regional Results

    Revenues 2Q23 2Q22 % Var. North America 727 663 10 Europe 446 394 13 Summary of Rest of World Total 149 1,323 140 1,197 6 11 Regional Results EBITDA 2Q23 2Q22 % Var. North America 74 84 (11) Europe 61 57 8 Rest of World 18 8 113 Total 153 149 3 ©Nemak | Public

25. Slide 25: Q&A

    Q&A ©Nemak | Public

26. Slide 26: For more information contact us

    For more information contact us at: investors.Nemak.com investor@Nemak.com ©Nemak | Public

Nemak — Q2 2023 Earnings Presentation on 6ix