Slide 1: Q3 2024 Financial Results
OCTOBER 24 , 2024 Q3 2024 FINANCIAL RESULTS © 2024 Garrett Motion Inc.
Slide 2: Forward Looking Statements
Forward Looking Statements This communication and related comments by management may include “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact and can be identified by words such
Slide 3: Delivered outstanding operating performance amid weak macros
Delivered outstanding operating performance amid weak macros Managing Industry Trends Capital Allocation Priorities • Net Sales of $826M vs. $960M in Q3 2023, (14)% • Adj. Free Cash Flow1 of $71M vs. $57M in Q3 2023 on a reported and constant currency1 basis • Strong cash flow generation versus last
Slide 4: Continuing to expand our turbo portfolio
Continuing to expand our turbo portfolio Strong demand for our largest turbocharger for 4X Large Turbochargers Additional wins across Passenger and Commercial Vehicle marine & auxiliary power applications: • Delivered first marine prototype, start of production Continuing to win new business for in
Slide 5: Progressing our electrified solutions for the future of mobility
Progressing our electrified solutions for the future of mobility Customers embracing our Fuel Cell: Won series production for differentiated high-speed E-Powertrain bus, medium-duty and heavy-duty technology trucks with industry-leading compressors • Signed Letter of Intent with SinoTruk to put zero
Slide 6: Quarterly financial trends: Q3 2023 – Q3 2024
Quarterly financial trends: Q3 2023 – Q3 2024 Reported Net Sales ($M) Adjusted EBITDA1 ($M) $960 $945 $915 $890 $826 45% 47% 51% 49% 46% 21% $152 $145 $151 $150 $144 19% 19% 19% 22% 32% 32% 28% 30% 30% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Europe North Asia
Slide 7: Net Sales bridge: Q3 2023 – Q3 2024
Net Sales bridge: Q3 2023 – Q3 2024 ($M) $960 (82) (50) $826 0 (2) (1) 1 Q3 2023 Gasoline Diesel Commercial Aftermarket Other FX Q3 2024 Net Sales Vehicles Net Sales % change1 (19)% (22)% -% (1)% (12)% (14)% Percentage of Reported Net Sales 43% 22% 19% 14% 2% • Q3 2024 Net Sales of $826M, down $134M
Slide 8: Adjusted EBITDA bridge: Q3 2023 – Q3 2024
Adjusted EBITDA1 bridge: Q3 2023 – Q3 2024 ($M) $152 (6) $144 (4) 35 (46) 10 (13) 16 15.8% +$32M operating performance improvement year-over-year 17.4% Q3 2023 Volume Product Mix Pricing net Commodity, Productivity, R&D FX Q3 2024 Adjusted of Inflation Transportation SG&A - net Adjusted 1 1 EBITDA P
Slide 9: Q3 2024 Adjusted EBITDA to Adjusted Free Cash Flow bridge
Q3 2024 Adjusted EBITDA1 to Adjusted Free Cash Flow1 bridge ($M) (28) • Demonstrating our ability to generate strong Adjusted Free Cash Flow1 in a challenging sales environment (16) (20) • Working capital use driven by sequentially lower (7) light and commercial vehicle sales $144 (2) • Lower cash i
Slide 10: Stable liquidity and continued share repurchases in Q3 2024
Stable liquidity and continued share repurchases in Q3 2024 Liquidity and Net Debt2 ($M) Fitch ratings’ outlook improved • Issuer rating of BB- upgraded from stable to positive Q2 2024 Q3 2024 • Signals Garrett’s strong profitability and consistent cash generation Unrestricted Cash1 98 96 Undrawn Re
Slide 11: Revising 2024 full year outlook on lower anticipated sales
Revising 2024 full year outlook on lower anticipated sales Updated Outlook (October 24th) Prior Outlook (July 25th) Net Sales $3.40B to $3.50B $3.50B to $3.65B Net Sales Growth -12% to -10% -9% to -5% at Constant Currency1 Net Income $240M to $255M $245M to $285M Adjusted EBITDA1 $585M to $605M $583
Slide 12: We remain focused on value creation
We remain focused on value creation Industry Continue to be #1 Turbo player1 and leader in a technology-driven industry; Still Leadership investing in new Turbo technology especially for hybrids; Expanding into industrial applications Cash Proven performance through business cycles; Framework of 60%
Slide 13: On track to deliver strong operating performance in 2024
On track to deliver strong operating performance in 2024 • Delivered solid financial results in the quarter through outstanding operating performance, achieving an adjusted EBITDA margin rate1 of 17.4%, up 160bps versus Q3 2023 • Generated strong cash flow and continued to execute on our capital all
Slide 14: Appendices
ADVANCING MOTION
Slide 15: Net Sales bridge: YTD 2023 – YTD 2024
Net Sales bridge: YTD 2023 – YTD 2024 ($M) $2,941 (163) (107) (23) 9 (1) (25) $2,631 YTD 2023 Gasoline Diesel Commercial Aftermarket Other FX YTD 2024 Net Sales Vehicles Net Sales % change1 (13)% (14)% (5)% 3% (3)% (10)% Percentage of Reported Net Sales 43% 24% 18% 13% 2% • Net Sales of $2,631M, dow
Slide 16: Adjusted EBITDA bridge: YTD 2023 – YTD 2024
Adjusted EBITDA1 bridge: YTD 2023 – YTD 2024 ($M) $490 (10) (18) $445 (92) 65 1 (51) 60 16.7% +$64M operating performance improvement year-over-year 16.9% YTD 2023 Volume Product Mix Pricing net Commodity, Productivity, R&D FX YTD 2024 Adjusted of Inflation Transportation SG&A - net Adjusted 1 1 EBI
Slide 17: Income Statement
Income Statement ($ in millions) Q3 2024 Q3 2023 9M 2024 9M 2023 Net sales $826 $960 $2,631 $2,941 Cost of goods sold 660 784 2108 2374 Gross profit 166 176 523 567 Selling, general and administrative 53 59 178 178 expenses Other expense, net 1 1 5 3 Interest expense 37 48 130 104 Gain on sale of eq
Slide 18: Balance Sheet Summary
Balance Sheet Summary ($ in millions) Assets September 30, 2024 December 31, 2023 Cash and cash equivalents $96 $259 Restricted cash 1 1 Other 1,046 1,146 Total current assets 1,143 1,406 Property, plant and equipment-net 450 477 Deferred income taxes 198 216 Other 364 428 Total assets $2,155 $2,527
Slide 19: Summary of Cash Flows
Summary of Cash Flows ($ in millions) Q3 2024 Q3 2023 9M 2024 9M 2023 Net income $52 $57 $182 $209 Net cash provided by operating activities 67 74 277 330 Net cash provided by (used for) investing activities (17) (24) 1 (48) Net cash (used for) provided by financing activities (55) (364) (439) (366)
Slide 20: Reconciliation of Constant Currency Sales % Change
Reconciliation of Constant Currency Sales % Change Garrett Q3 2024 Q3 2023 9M 2024 9M 2023 Reported sales % change (14%) 2% (11%) 9% Less: Foreign currency translation 0% 3% (1%) (1%) Constant Currency sales % change (14%) (1%) (10%) 10% Gasoline Reported sales % change (19%) 10% (14%) 17% Less: For
Slide 21: Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow
Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow and Adjusted Free Cash Flow Conversion ($ in millions) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net cash provided by operating activities $74 $135 $84 $126 $67 Expenditures for property, plant and equipment (24) (26) (32) (17) (20
Slide 22: Reconciliation of Net Income to Adjusted EBITDA and Consolidated EBITDA
Reconciliation of Net Income to Adjusted EBITDA and Consolidated EBITDA1 LTM Q2 LTM Q3 ($ in millions) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2024 2024 Net income $57 $52 $66 $64 $52 $239 $234 Interest expense, net of interest income 47 54 29 61 37 191 $181 Tax expense 13 16 15 23 24 67 $78 Depreci
Slide 23: Reconciliation of Long-Term Debt to Net Debt and Related Ratios
Reconciliation of Long-Term Debt to Net Debt and Related Ratios ($ in millions) Q3 2024 Q2 2024 Long-term term debt $1,464 $1,465 Short-term term debt $7 $7 Deferred finance costs $24 $25 Gross Debt $1,495 $1,497 Cash and cash equivalents $96 $98 Net Debt $1,399 $1,399 Consolidated EBITDA LTM $618 $
Slide 24: Full Year 2024 Outlook Net Sales Growth Reconciliation
Full Year 2024 Outlook Reconciliation of Net Sales Growth to Net Sales Growth at Constant Currency 2024 Full Year Low 2024 Full Year High End End Net sales (% change) (12%) (10%) Foreign currency translation (0%) (0%) Full Year 2024 outlook Net Sales Growth at Constant Currency (12%) (10%) © 2024 Ga
Slide 25: Full Year 2024 Outlook Net Income to Adjusted EBITDA
Full Year 2024 Outlook Reconciliation of Net Income to Adjusted EBITDA 2024 Full Year Low 2024 Full Year High ($ in millions) End End Net income $240 $255 Interest expense, net of interest income * 151 151 Tax expense 82 87 Depreciation 90 90 Full year 2024 outlook EBITDA $563 $583 Other non-operati
Slide 26: Full Year 2024 Outlook Cash Flow to Adjusted Free Cash Flow
Full Year 2024 Outlook Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow 2024 Full Year Low 2024 Full Year High ($ in millions) End End Net cash provided by operating activities $348 $398 Expenditures for property, plant and equipment (86) (86) Net cash provided by operating act
Slide 27: Investors Media
Investors Media Eric Birge Amanda Jones +1 (734) 392-5504 +41 (0) 79 601 0787 Eric.Birge@garrettmotion.com Amanda.Jones@garrettmotion.com © 2024 Garrett Motion Inc.