Linamar Corporation · TSX:LNR
Linamar — AEM Investor Conference 2020
34 slides from Linamar's conference presentation, Mar 11, 2020
Slide 1: AEM Investor Conference
AEM Investor Conference March 11th, 2020 1
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
Slide 3: Company Overview
Company Overview 3
Slide 4: Core Brands and Diverse Markets
Core Brands and Diverse Markets Diversified Manufactured Products that Power Vehicles, Motion, Work and Lives Infrastructure Transportation Machining & Assembly Food Light Metal Casting Forging 4
Slide 5: History Timeline
History Timeline Purchase of White Farm Equipment and Frank Hasenfratz born in The company is founded establishment of Western Hungary, immigrated to with name derived from Company continues to Combine. Company goes public. Canada in 1957. his wife and 2 daughters experience continued Linamar acquir
Slide 6: Market Concentration Balance
Market Concentration Balance Industrial OE Sales Transportation OE Sales Engine | Transmission | Driveline | Body Mobile Industrial Equipment | Fabricated Assemblies 38% 75% 62% 25% ACCESS AGRICULTURAL AUTOMOTIVE OFF HIGHWAY COMMERCIAL 17.3 7.7 68.9 2.4 3.7 YTD Q3 2019 - Industry figures are a perce
Slide 7: 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
Slide 8: Diverse Key Products
Diverse Key Products Industrial Transportation New Energy Powertrain Body & Chassis Systems Engine Driveline Transmission 8
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 Forging Light Metal Casting Independent Businesses Purchasing Value Connected 9
Slide 10: 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
Slide 11: Market Focus Addresses Key Global Trends
Market Focus Addresses Key Global Trends Transportation Infrastructure Food Power Water Age 11 Rapid Technology Growing Intensity to Urbanization Growing Global Aging Global Evolution Address Population Population Environmental Concerns 11
Slide 12: Food & Agriculture
Food & Agriculture 12
Slide 13: MacDon is the world leader in harvesting equipment
MacDon is the world leader in technology, innovation, and manufacturing of high-performance harvesting equipment. 13
Slide 14: MacDon Products
MacDon Products FD Series FlexDraper® C Series Corn Headers D Series Draper Headers Pick-Up Headers Rotary Disc Pull-Type and Headers M Series Windrowers 14
Slide 15: Proud Heritage & Bright Future
Proud Heritage & Bright Future 2019 marked the MacDon’s 70th year in business Plans to diversify and expand the product line Focused on Global Growth with increase sales penetration outside North America 15
Slide 16: Transportation
Transportation uur <a” pee
Slide 17: 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
Slide 18: 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
Slide 19: 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
Slide 20: Launches
Launches 4,500.00 Launching more than $4.4 billion of new work today 4,000.00 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 Other Driveline Engine Transmission Sales from Launch add: $625 to $675 Million in 2019 , >$1 Billion in 2020 Updated Nov, 2019
Slide 21: Content Per Vehicle
Content Per Vehicle North America Europe Asia Pacific $80 $175 $12 $165 $70 $10 $155 $60 $145 $8 $50 $135 $125 $40 $6 $115 $30 $4 $105 $20 $95 $2 $10 $85 130.57 150.37 153.82 159.07 163.85 165.88 19.84 39.47 63.60 69.62 78.30 83.49 6.36 6.70 8.32 9.66 9.82 10.06 $75 $0 $0 2014 2015 2016 2017 2018 Q3
Slide 22: Financial Review
Financial Review 22
Slide 23: 2019 Expected to Drive Solid Free Cash Flow
2019 Expected to Drive Solid Free Cash Flow Min Target 2019 expected to generate between 500 $500 and $700 million through 450 Strong earnings; 400 Lower Capex than 2018; Focused NCWC Improvements; and 350 Long Term AR (“LTAR”) 300 Improvements NCWC Improvements focused on Millions 250 200
Slide 24: Yearly Sales Growth
Yearly Sales Growth 9,000 8,000 7,000 6,000 5,888.6 5,800.6 $ Millions 5,000 4,000 3,000 2,000 1,000 4,171.6 5,162.4 6,005.6 6,546.5 7,620.6 1,837.3 1,740.0 0 2014 2015 2016 2017 2018 Q3 YTD Q3 YTD 2018 2019 Annual Results Current Quarter
Slide 25: Normalized Net Earnings
Normalized Net Earnings1 600 18.0% 500 468.0 15.0% 400 393.9 12.0% $ Millions 8.3% 8.4% 8.4% 300 7.6% 7.7% 9.0% 6.6% 5.5% 200 6.0% 100 3.0% 319.1 426.8 504.0 551.5 583.8 121.1 96.2 0 0.0% 2014 2015 2016 2017 2018 Q3 YTD Q3 YTD 2018 2019 Annual Results Current Quarter Normalized NE as a % of Sales Ne
Slide 26: Operational Capital Expenditures
Operational Capital Expenditures 600 18.0% 500 15.0% 405.3 392.7 400 12.0% $ Millions 300 9.0% 6.7% 7.0% 200 6.0% 6.6% 7.1% 6.3% 6.3% 5.7% 100 3.0% 263.5 341.6 343.3 410.1 537.3 155.4 158.5 0 0.0% 2014 2015 2016 2017 2018 Q3 YTD Q3 YTD 2018 2019 Annual Results Current Quarter Rest Of The Year Capex
Slide 27: Net Debt to EBITDA
Net Debt to EBITDA 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x 0.35x 0.24x 0.96x 0.83x 1.68x 1.69x 1.75x 0.0x 2014 2015 2016 2017 2018 Q3 2018 Q3 2019 Net Debt x EBITDA Current Quarter Target ¹ EBITDA includes last 12 month rolling EBITDA on acquisitions.
Slide 28: Infrastructure
Infrastructure 28
Slide 29: New 63' Rough Terrain Scissor Lift
New 63’ Rough Terrain Scissor Lift New SJ9263 RT Launching for 2020 In the defined market place segments, it is offered above standard 30-50 ft. platform height series but below that of the 90-120 ft. specialty classes New ANSI A92.20 compliant
Slide 30: New DC Scissors
New DC Scissors New DC Electric Scissors Launching for 2020 New control box, pothole protection, single action electronic emergency lowering Updated SkycodedTM system New ANSI A92.20 compliant
Slide 31: Increased Capacity Booms
Increased Capacity Booms New SJ 40A and 60A + Series Refreshed 40’ and 60’ Series launching for 2020 Increased capacity for overall platform as well as personnel New ANSI A92.20 compliant
Slide 32: Digital Products Providing Value-Added Solutions
Digital Products Providing Value-Added Solutions 32
Slide 33: Intelligent Machine Health Data
Intelligent Machine Health Data State of health Battery life Last charge date Battery care information Serialized Machine Information Quickstart guides Emergency lowering procedures Operator manuals Pre-use inspection checklist 33
Slide 34: Thank You
Thank You www.linamar.com @linamarcorp Linamar Corporation