Linamar Corporation · TSX:LNR

Linamar — Q4 2019 Earnings Presentation

61 slides from Linamar's earnings presentation, March 2020

1. Slide 1: Linamar Corporation Investor Presentation

   Linamar Corporation Investor Presentation A Global Powerhouse in Diversified Advanced Manufacturing March 2020

2. Slide 2: Forward Looking Information, Risk and Uncertainties

   Forward Looking Information, Risk and Uncertainties Certain information regarding Linamar set forth in this presentation and oral summary, including management’s assessment of the Company’s future plans and operations may constitute forward-looking statements. This information is based on current ex

3. Slide 3: Company Overview

   Company Overview 3

4. Slide 4: Linamar - A Leading Global Advanced Manufacturing Company

   Linamar - A Leading Global Advanced Manufacturing Company Leading Edge AI Enabled Transportation Technology  Carbon Efficient SOLUTIONS TO  Electrified POWER THE FUTURE OF VEHICLES, MOTION, WORK, AND LIVES  Lightweight  Connected & Autonomous Deep  New Mobility Manufacturing Expertise Infrastru

5. Slide 5: Key Investment Themes

   Key Investment Themes Massive Market Market Share Growth Opportunity in All Strong Free Cash Flow Offsetting Soft Global Active Share Buyback Businesses Generated in 2019 Markets  MacDon growth potential  Steady Boom and Telehandler  Strong earnings, reduced  ~ 1million shares 4x current footpri

6. Slide 6: Key Drivers of Market Opportunity

   Key Drivers of Market Opportunity Innovation 6

7. Slide 7: Market Focus Addresses Key Global Trends

   Market Focus Addresses Key Global Trends Transportation Infrastructure Food Power Water Age 7 Rapid Technology Growing Intensity to Urbanization Growing Global Aging Global Evolution Address Population Population Environmental Concerns 7

8. Slide 8: Core Brands and Diverse Markets

   Core Brands and Diverse Markets Diversified Manufactured Products that Power Vehicles, Motion, Work and Lives Infrastructure Transportation Linamar Machining & Assembly Food Linamar Light Metal Casting Linamar Montupet Light Metal Casting | GF Linamar Linamar Seissenschmidt Forging 8

9. Slide 9: Linamar's Unique Value Creation Model

   Linamar’s Unique Value Creation Model Deeply Interconnected Businesses Driving Value Across Multiple Vectors Global Footprint Machining & Assembly Seissenschmidt Forging Light Metal Casting Independent Businesses Purchasing Value Connected 9

10. Slide 10: Market Concentration Balance

    Market Concentration Balance Industrial OE Sales Transportation OE Sales Engine | Transmission | Driveline | Body Mobile Industrial Equipment | Fabricated Assemblies 38% 76% 62% 24% ACCESS AGRICULTURAL AUTOMOTIVE OFF HIGHWAY COMMERCIAL 15.9 8.2 69.8 2.4 3.7 YTD Q4 2019 - Industry figures are a perce

11. Slide 11: Diverse Core Capabilities

    Diverse Core Capabilities Metal Forming Machining & Assembly Robotic Welding Advanced Automation Laser cutting & Robotics Metal Forming CNC Expertise Stamping Complex Assemblies Painting Hydroforming Assembly Heat Treatment Forging Light Metal Casting Hatebur High Speed Hot Horizontal Gravity & Low

12. Slide 12: Diverse Key Products

    Diverse Key Products Industrial Transportation New Energy Powertrain Body & Chassis Systems Engine Driveline Transmission 12

13. Slide 13: Strong Global Footprint

    Strong Global Footprint CANADA 24 UNITED KINGDOM 1 GERMANY 7 HUNGARY 5 CHINA 5 Global Headcount 27,200+ Manufacturing Facilities (61) Sales Offices (25) Development Centres (10) Support Facilities (4) USA 6 MEXICO 5 SPAIN 1 FRANCE 4 BULGARIA 1 INDIA 2 49 Facilities with IATF 16949 13 Facilities with

14. Slide 14: Innovation

    Innovation Driving the Advanced Manufacturing Agenda 14

15. Slide 15: Broad Innovation Strategy

    Broad Innovation Strategy Material Manufacturing Product Process Development Partnerships with Digitization Tangential Development Development Lighter, Stronger Tech Startups through AI/ML Innovation 15

16. Slide 16: AI/ML Driving Innovation & Efficiencies

    AI/ML Driving Innovation & Efficiencies ADVANCED ROBOTICS DATA COLLECTION VISION SYSTEMS ADDITIVE PREDICTION & Development of advanced 1. Improve equipment uptime Evolving vision systems to MANUFACTURING ANALYSIS collaborative robots to drive & tool life & reduce cycle more accurately gauge & (3D PR

17. Slide 17: Digitization with AI/ML

    Digitization with AI/ML 61 Plants 3,162 3,206 922 Traceability Robots Marking Stations LMMS Data Collection Connections 2,094 2,489 RFID Stations 1,081 Connected Machines Vision Systems 2,105 9 Traceability Read Stations AGVs March 2020 17

18. Slide 18: Innovation In Focus: New Guelph iHub Innovation Centre

    Innovation In Focus : New Guelph, Canada ‘iHub’ Innovation Centre Nearly Complete  Linamar’s dedicated Innovation Hub (iHub) building construction has entered its final phase  Move in date planned for early Q2  Facility will enable accelerated Research and Development focused on; Engineering Rend

19. Slide 19: Innovation In Focus: Light Metals Casting eAxle Housing

    Innovation In Focus: Light Metals Casting Development of a Electric Drive unit (EDU) eAxle Housing  Newly developed eAxle housing for an upcoming Electric Vehicle application  Linamar Light Metals Casting Group demonstrates the deep technical expertise required to design a manufacturing process th

20. Slide 20: Innovation In Focus: MacDon's R2 Hay Mower-Conditioners

    Innovation In Focus : MacDon’s R2 is the Latest Offering in Hay Mower-Conditioners  MacDon’s latest R2 Series Rotary Disc Header for Hay crops launched for the 2020 production year run  New R2 Series Rotary Disc header mates with the MacDon M1240 Self- Propelled Windrower (SPW) with EvenflowTM tec

21. Slide 21: Innovation In Focus: Skyjack's Evolving Telematics Solutions

    Innovation In Focus : Skyjack’s Evolving Telematics Solutions State of Health  Battery life  Last charge date  Battery care information Serialized Machine Information Elevate Telematics Solution  Quickstart guides  Introduced in February 2018  Emergency lowering procedures  Optional equipment

22. Slide 22: Quarter Highlights

    Quarter Highlights 22

23. Slide 23: Q4 2019: Performance Highlights

    Q4 2019: Performance Highlights Focus on Customers Focus on Employees Focus on Financial 2019 Theme: 2019 Theme: 2019 Theme: Commercializing Innovation Coaching and Developing Simplification  New Business Wins in key strategic areas gaining  Launched new Top Talent Review Process  Strong free cas

24. Slide 24: Sales, Normalized Earnings, and Margins

    Sales, Normalized Earnings, and Margins (in millions CAD) Q4 2019 Q4 2018 %Δ Q4 2019 Helped By:  Sales outperform soft global markets with  Strong launches in Transportation gaining Sales 1,616.1 1,732.0 (6.7%) 6.7% decline traction and working through transition  NA vehicle markets down 8.9% but

25. Slide 25: Outlook

    Outlook Q1 Expectations Consolidated Normal Ranges 2018 Actuals 2019 Actuals Expectations 2020  Auto Sales Growth 16.4% (2.7%) Flat to Modest Declines  COVID-19 outbreak is the single largest Normalized Earnings Growth impact to Q1 EPS 6% (20.0%) Low to Mid Single Digit Growth  $20-$30 mill estim

26. Slide 26: Market Snapshot

    Market Snapshot 2020 Light Vehicle Commercial Truck Agriculture Skyjack Industry Industry Industry Industry North America ▲1.3% ▼20.9% ▼5.0% ▼12.1% Industry Industry Industry Industry Europe ▼1.9% ▲0.9% ▼5.0% ▼4.9% Industry Industry Industry Industry Asia ▼3.1% ▼10.5% ▼15.0% ▲17.5% Note: Each of the

27. Slide 27: ESG

    ESG 27

28. Slide 28: ESG is a Long Held Priority

    ESG is a Long Held Priority Environment Social Governance  Green technology is a key growth strategy  Diversity Drives Results Initiative  Detailed review of every governance policy driving product innovation in all business  20-22% female leaders vs 19% female conducted yearly with Board of Dir

29. Slide 29: Infrastructure

    Infrastructure 29

30. Slide 30: Key Market Strategies - Flexible & Opportunistic

    Key Market Strategies - Flexible & Opportunistic 2019 Global Market of $11.2 Billion Skyjack Manitou JLG Infrastructure  Globalize and expand product lineup in all 3 Haulotte regions Genie 30

31. Slide 31: Market Size (Millions USD) - Product Mix

    Access & Material Handling Equipment – Product Mix Mobile Equipment Market Product Mix $14,000 $12,000 $10,000 Market Size (Millions USD) $8,000 $6,000 $4,000 $2,000 $- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 est est est

32. Slide 32: Market Size (Millions USD) - Geographic Mix

    Access & Material Handling Equipment – Geographic Mix Mobile Equipment Market Geographic Mix $14,000 $12,000 $10,000 Market Size (Millions USD) $8,000 $6,000 $4,000 $2,000 $- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 est e

33. Slide 33: Skyjack's Innovation Strategy

    Skyjack’s Innovation Strategy Remove operator from height Next Generation Alternative Power Mobile Apps Digital Products Smart machines Autonomy Secondary Guarding Continuously Variable Transmission 33

34. Slide 34: Market Share Penetration Access - Key Growth Driver

    Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Telehandler Market Share (NA Only) Q4 2018 Q1 2019 Source: Skyjack Internal, February 2020. Market share shown as four quarter moving average. Q2 2019 Q3 2019 Q4 2019 Q1 2015 Q2 20

35. Slide 35: Food Agriculture

    Food Agriculture 35

36. Slide 36: Key Market Strategies - Flexible & Opportunistic

    Key Market Strategies - Flexible & Opportunistic Global Market Combine Heads ($CAD) $3,000 $2,500 $2,000 $1,500 Millions Food $1,000  Build on MacDon acquisition as the foundation from which to expand global ag business overall $500  Regional growth initiatives  Advanced and disruptive $0 technol

37. Slide 37: Total North America Combine Sales

    Total North America Combine Sales $450 15,000 $400 13,000 $350 11,000 $300 Cash Receipts (Millions) 9,000 Combine Unit Retails $250 7,000 $200 5,000 $150 3,000 $100 $50 1,000 $0 -1,000 NA Combine Retails US Cash Receipts, Crops Source: AEM & USDA Feb. 2020 37

38. Slide 38: Technology and Innovation Leader

    Technology and Innovation Leader Technology supported by over 100 unique patents with an additional 30+ unique patents pending globally, and a permanent technology-focused staff of 110 FlexDrapers® & Rigid Drapers Self-Propelled Windrowers Hay Products  Higher cutting speeds  Industry leading road

39. Slide 39: MacDon Industry Leading Business and Market Share

    MacDon Industry Leading Business and Market Share North American Strong Market Position in Key Product Categories Estimated Market Position Combine FlexDraper® #1 Headers Rigid Draper #1 Headers Self-Propelled Windrowers #1 (mid-horsepower) 39

40. Slide 40: Market Share Penetration Ag - Key Growth Driver

    Market Share Penetration Ag - Key Growth Driver Combine Draper Market Share (Europe) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Source: MacDon Internal, February 2020 40

41. Slide 41: Transportation

    Transportation fff “*eerepeteee A f thks <*4. CF i iif if eee cnapuemmannetll ee . % ' iii ee weet! Pe aie ial <<

42. Slide 42: Key Market Strategies - Flexible & Opportunistic

    Key Market Strategies - Flexible & Opportunistic Advanced Consensus Actual IHS Forecast Projection Pure Battery EV penetration reaches 16% of the market by 2031 Transportation  Increase CPV in BEV, HEV, FCV  Mine opportunistic ICE market as volumes Addressable market more than decline but addressa

43. Slide 43: Technology Leadership Key to Growth

    Technology Leadership Key to Growth Lightweighting Solutions Innovation in Design, Green & Connected Vehicles Development, and Manufacturing  Using unique manufacturing processes,  Innovative design & engineering solutions to  Utilizing Linamar product and engineering materials, and designs to pr

44. Slide 44: Today & Tomorrow: Linamar has the Products

    Today & Tomorrow: Linamar has the Engine Camshafts Cast and Cubed / Fully Lower Engine Connecting Turbo Camshaft / Cylinder Head Balance Shaft Machined Cylinder Crankcase Assembly Rods Charger Cover Module Modules Blocks & Heads Assemblies Products!! Transmission Gears Shaft & Shell Differential Ass

45. Slide 45: eAxle Innovation Outlook – New Technologies

    eAxle Innovation Outlook – New Technologies Start Now  Built customer  First production  Focused on low  Pushed limits of  Expanding to meet High Performance Refined Design Advanced Technologies Production Design Initial Prototypes interest eAxle awards cost designs power density customer needs

46. Slide 46: eAxle Innovation Outlook – Commercial Vehicles

    eAxle Innovation Outlook – Commercial Vehicles Gen I Gen II Future Gen III Developments  Initial Commercial  Government body  Optimized to meet Vehicle fleet partnership Sponsored Collaboration multiple customer development program Program applications  Installed in 4 test  Design optimized fro

47. Slide 47: Launches

    Launches Launching more than $4.2 billion of new work today 4,500.00 4,000.00 Other Driveline Engine Transmission 3,500.00 3,000.00 2,500.00 2,000.00 1,500.00 1,000.00 500.00 - 2018 2019 2020 2021 2022 2023 Sales from Launch add: $700 Million to $900 Million in 2020 47

48. Slide 48: Content Per Vehicle

    Content Per Vehicle North America Europe Asia Pacific $175 $90 $12 $165 $80 $10 $155 $70 $145 $60 $8 $135 $50 $125 $6 $40 $115 $30 $4 $105 $20 $95 $2 $85 $10 150.37 153.82 159.07 163.85 166.17 39.47 63.60 69.62 78.30 81.58 6.70 8.32 9.66 9.82 9.72 $75 $0 $0 2015 2016 2017 2018 2019 2015 2016 2017 20

49. Slide 49: Electrified Vehicles Key Growth Opportunity for Linamar

    Electrified Vehicles Key Growth Opportunity for Linamar $90 $80 $70 $60 Expected BEV Global CPV 4 years out same as ICE Global CPV 4 years ago $50 $40 $30 $20 $10 $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 -$10 Electric Hybrid ICE Updated: February 2020, estimates based on current projections a

50. Slide 50: Medical/Age Recent Developments

    Medical/Age Recent Developments © Linamar Corporation 50

51. Slide 51: Synaptive Medical Manufacturing Agreement

    Synaptive Medical Manufacturing Agreement Modus VTM is a advanced robotic and digital microscope surgical system. Fully-automated, hands-free, robotically- controlled digital microscope with advanced visualization. Replaces current technology of static microscope with limited field of view requiring

52. Slide 52: Synaptive Medical Manufacturing Agreement

    Synaptive Medical Manufacturing Agreement EvryTM is a revolutionary head-only MRI system. Innovative, midfield MRI designed to be installed directly at the point of care – ER, ICU, Operating Room with high performance imagery. Offers a lighter weight, less costly installation, and lower ongoing oper

53. Slide 53: Financial Review

    Financial Review 53

54. Slide 54: 2020 Expected to Drive Solid Free Cash Flow

    2020 Expected to Drive Solid Free Cash Flow 700 650  2020 expected to again generate 600 between $500 and $700 million of 550 free cash flow Strong earnings; 500 450 400 Lower Capex than 2019 Millions 350 300  Leverage down to <1x EBITDA by 250 end of 2020 200 150 100 50 - 2015 2016 2017 2018 20

55. Slide 55: Yearly Sales Growth

    Yearly Sales Growth 9,000 8,000 7,620.6 7,416.6 7,000 6,000 $ Millions 5,000 4,000 3,000 2,000 1,000 5,162.4 6,005.6 6,546.5 7,620.6 7,416.6 1,732.0 1,616.1 0 2015 2016 2017 2018 2019 Q4 YTD Q4 YTD 2018 2019 Annual Results Current Quarter YTD 55

56. Slide 56: Normalized Operating Earnings

    Normalized Operating Earnings1 900 16.0% 807.6 800 14.0% 700 11.4% 11.3% 668.6 11.1% 12.0% 10.6% 600 9.0% 9.2% 10.0% $ Millions 500 7.0% 8.0% 400 6.0% 300 4.0% 200 100 2.0% 586.4 677.5 728.9 807.6 668.6 158.9 112.6 0 0.0% 2015 2016 2017 2018 2019 Q4 YTD Q4 YTD 2018 2019 Annual Results Current Quarte

57. Slide 57: Normalized Net Earnings

    Normalized Net Earnings1 600 583.8 18.0% 500 15.0% 464.4 400 12.0% $ Millions 8.3% 8.4% 8.4% 300 7.7% 9.0% 6.3% 6.7% 200 4.7% 6.0% 100 3.0% 426.8 504.0 551.5 583.8 464.4 115.4 75.4 0 0.0% 2015 2016 2017 2018 2019 Q4 YTD Q4 YTD 2018 2019 Annual Results Current Quarter YTD Normalized NE as a % of Sale

58. Slide 58: Operational Capital Expenditures

    Operational Capital Expenditures 600 18.0% 537.3 525.4 500 15.0% 400 12.0% $ Millions 300 9.0% 7.1% 7.1% 200 6.0% 7.1% 7.1% 6.6% 6.3% 5.7% 100 3.0% 341.6 343.3 410.1 537.3 525.4 144.5 120.1 0 0.0% 2015 2016 2017 2018 2019 Q4 YTD Q4 YTD 2018 2019 Annual Results Current Quarter YTD Capex as a % of Sal

59. Slide 59: Net Debt to EBITDA

    Net Debt to EBITDA 2.5x 2.0x 1.5x 1.0x 0.5x 1.68x 1.50x 0.96x 0.83x 0.24x 0.0x 1 1 1 2015 2016 2017 2018 2019 Net Debt x EBITDA Target ¹ EBITDA includes last 12 month rolling EBITDA on acquisitions. Obtained 2019 target of debt reduction to level of 1.5x, 2020 targeting to be under 1.0x 59

60. Slide 60: Key Investment Themes

    Key Investment Themes Massive Market Market Share Growth Opportunity in All Strong Free Cash Flow Offsetting Soft Global Active Share Buyback Businesses Generated in 2019 Markets  MacDon growth potential  Steady Boom and Telehandler  Strong earnings, reduced  ~ 1million shares 4x current footpri

61. Slide 61: Thank You

    Thank You www.linamar.com @linamarcorp Linamar Corporation

Linamar — Q4 2019 Earnings Presentation on 6ix