Dauch Corporation · NYSE:DCH
Dauch — American Axle & Manufacturing Holdings — Corporate Update (April 2023)
20 slides from Dauch's corporate update, Apr 25, 2023
Slide 1: Shareholder Outreach Spring 2023
AAM AMERICAN AXLE & MANUFACTURING HOLDINGS INC. SHAREHOLDER OUTREACH SPRING 2023 April 2023 BRINGING THE FUTURE FASTER
Slide 2: Forward-Looking Statements
Forward-Looking Statements AAM BRINGING THE FUTURE FASTER This presentation information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve certain risks and uncertainties that could cause actual res
Slide 3: Outreach Topics
Outreach Topics AAM BRINGING THE FUTURE FASTER AXL Overview and Current Business Profile Corporate Governance (including Executive Compensation) Sustainability Initiatives Shareholder Feedback and Q&A 3
Slide 4: AAM - Quick Facts
AAM - Quick Facts AAM BRINGING THE FUTURE FASTER Global-leader in design, engineering and manufacturing of automotive propulsion systems and technologies to support electric, hybrid and ICE vehicles $5.8B 2022 Revenue ~19,000 Employees 18 Countries Over 80 Locations 14 Global Engineering and Tech Ce
Slide 5: 2022 AAM Highlights
2022 AAM Highlights AAM BRINGING THE FUTURE FASTER Began to supply electric drive units for the Mercedes-AMG GT 63 S E PERFORMANCE vehicle Awarded multiple contracts to supply major global OEMs with components for electric vehicles Automotive News PACE AWARD 2022 WINNER Won three PACE Awards for our
Slide 6: AAM Long-Term Value Creation
AAM Long-Term Value Creation AAM BRINGING THE FUTURE FASTER Diversification Balanced mix of customers and geography. Expand our product portfolio, driving opportunities with new OEMs and regions. Agnostic to propulsion market changes. Sales Grow above market by leveraging scale and technology. Elect
Slide 7: Corporate Governance Highlights
Corporate Governance Highlights AAM BRINGING THE FUTURE FASTER
Slide 8: Independent and Engaged Board
Independent and Engaged Board AAM BRINGING THE FUTURE FASTER Independence 9 out of 10 directors are independent Lead Independent Director Committees comprised of only independent directors (except Executive Committee) Independent directors meet regularly in executive session without management prese
Slide 9: Compensation Linked To Strategic Business Objectives
Compensation Linked To Strategic Business Objectives AAM BRINGING THE FUTURE FASTER AAM's compensation philosophy supports our business strategy and performance, aligns with shareholder interests and pays competitively. Our compensation programs are designed to balance short-term performance and lon
Slide 10: 2022 Annual Incentive Compensation
2022 Annual Incentive Compensation AAM BRINGING THE FUTURE FASTER 2022 annual incentive performance measures were set to drive operational performance and advance key strategic and ESG/sustainability initiatives Measure EBITDA Margin Operational Cash Flow Strategic Measures ESG/Sustainability Measur
Slide 11: 2022 Annual Incentive Compensation Financial Measures
2022 Annual Incentive Compensation AAM BRINGING THE FUTURE FASTER Financial Measures EBITDA Margin Operational Cash Flow Weighting 40% 40% Threshold (Payout 0%) 11.00% $400 million Target (Payout 100%) 13.50% $550 million Maximum (Payout 200%) 15.00% $625 million 2022 Actual Performance 13.06% $573
Slide 12: 2022 Long-Term Incentive Compensation
2022 Long-Term Incentive Compensation AAM BRINGING THE FUTURE FASTER Adjusted Free Cash Flow: Over $1 Billion Reduce debt (nearly $700 million) Invest in electrification and next generation successor programs Strategic initiatives Tekfor acquisition Maintain liquidity during pandemic and industry ch
Slide 13: Sustainability Leadership and Oversight
Sustainability Leadership and Oversight AAM BRINGING THE FUTURE FASTER Sustainability Program Governance and Oversight BOARD OF DIRECTORS CHAIRMAN AND CEO POLICY COMMITTEE SUSTAINABILITY PROGRAM LEAD (AAM PRESIDENT) CORPORATE SUSTAINABILITY TEAM The Board plays a critical role in AAM's Sustainabilit
Slide 14: Sustainability Initiatives
Sustainability Initiatives AAM BRINGING THE FUTURE FASTER AAM BRINGING THE FUTURE FASTER POWERING A SUSTAINABLE FUTURE 2022 SUSTAINABILITY REPORT Scope 1,2, & 3 Emissions Achieve net zero carbon by 2040 Energy 100% Renewabe energy sourcing in the U.S. by 2025 Water Zero incidents of water contaminat
Slide 15: Question and Answer
Question and Answer AAM BRINGING THE FUTURE FASTER
Slide 16: Appendix
Appendix AAM BRINGING THE FUTURE FASTER
Slide 17: Non-GAAP Reconciliation: EBITDA Margin
Non-GAAP Reconciliation AAM BRINGING THE FUTURE FASTER 2022 Annual Incentive Performance Metrics EBITDA Margin: (in millions) Twelve Months Ended December 31, 2022 Net income $ 64.3 Interest expense 174.5 Income tax expense 2.0 Depreciation and amortization 492.1 EBITDA $ 732.9 Restructuring and acq
Slide 18: Non-GAAP Reconciliation: Operational Cash Flow
Non-GAAP Reconciliation AAM BRINGING THE FUTURE FASTER 2022 Annual Incentive Performance Metrics Operational Cash Flow: (in millions) Twelve Months Ended December 31, 2022 Adjusted EBITDA $ 747.3 Purchases of property, plant and equipment (171.4) Proceeds from sale of property, plant and equipment 4
Slide 19: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation 2020 - 2022 Long-term Incentive Performance Metric Free Cash Flow and Adjusted Free Cash Flow: (in millions) Twelve Months Ended December 31, 2022 2021 2020 Net cash provided by operating activities $ 448.9 $ 538.4 $ 454.7 Purchases of property, plant and equipment (171.4) (1
Slide 20: wwwaam.con @OOO
yu ® wwwaam.con @OOO
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