Slide 1: IMI Analyst Briefing 2024 Q2
IMI Analyst Briefing 2024 Q2 August 8, 2024 Online
Slide 2: Market Outlook
Market Outlook
Slide 3: Economic Growth Figures
Economic Growth Figures • Recovery of Europe to continue in 2025 • Recovery of supply chain issues will drive down inflation 3.3 3.2 3.3 • Uncertainty in China driven by 1.5 upcoming USA presidential 0.9 0.5 elections and potential policy WORLD Eurozone 2023 2024 2025 changes • Fear of USA Recession
Slide 4: Automotive Market Outlook
Automotive Market Outlook • Tariffs on China will drive business to Mexico and other Asian countries • Persistent high interest rates have slowed down end-customer purchasing of new vehicles • Although EV subsegment forecasts have cooled recently, internal-combustion-only vehicles will fall below 40
Slide 5: Industrial Market Outlook
Industrial Market Outlook • Post-COVID inventory rebalancing continues at the customer level • Global economic slowdown affecting consumer discretionary spending • AI integrated security and connectivity applications to drive future growth • Energy storage market to play crucial role in addressing i
Slide 6: Financials
Financials
Slide 7: 2024 Q2 Segment Updates
2024 Q2 Segment Updates ➢ Automotive: • IMI wholly owned subsidiaries automotive segment is growing vs LY -6.6% -1.2% • Success of low-cost EVs from China has OEMs rethinking next generation strategies, deferring some new programs • Delay in steering application program should catch up in Automotive
Slide 8: 2024 Q2 Region Updates
2024 Q2 Region Updates ➢ Philippines: • Next generation industrial products being deferred as customers '23 Q2 '24 Q2 Y/Y% '23 1H '24 1H Y/Y% continue to trim existing inventory levels • EV Motorcycle assembly ramping up in 2024, mitigating shortfall PH 67.2 61.7 -8% 145.0 118.0 -19% in industrial s
Slide 9: 2024 1H Group Program Wins
2024 81H Group Program Wins Win Location - 2024 50 152 9% 15% - 95 31 58 51% 26 25% 2023 2024 Mobility Industrial Others Philippines China E. Europe MX *Wins in US$ of Annual Revenue Potential Win Location - 2023 Notable Wins in 2024 LED Lighting Industrial Bulgaria Industrial Energy Storage Industr
Slide 10: 2024 Q2 Performance (Non-GAAP)
2024 Q2 Performance (Non-GAAP) Revenue and Gross Profit Margin Operating Income 420 9.6% 10.1% 9.0% 11. 0% 370 8.5% 8.0% 9.0 % 320 2.2% 1.1% 12.0 -0.1% -0.1% 7.0 % -0.4% 270 7.0 5.0 % 220 7.7 (0.4) (1.1) 170 3.0 3.0 % (0.4) 2.0 120 1.0 % '23Q2 '23Q3 '23Q4 '24Q1 '24Q2 345 341 293 290 276 70 (3 .0) -1
Slide 11: Capital Structure
Capital Structure Long Term Long Term Debt Debt 23% 24% Common Common Equity Equity Dec 44% Jun 45% Short Term 2023 Short Term 2024 Debt Debt 33% 31% Dec Jun Dec Jun (US$ Millions) Key Financial Ratios 2023 2024 2023 2024 Short-Term Debt 209.7 181.4 Current ratio 1.43 1.46 Long-Term Debt 146.7 139.7
Slide 12: Disciplined Capital Investments
Disciplined Capital Investments 31.0 27.3 5.9 12.2 21.2 $4.9M 18.7 4.8 3.8 2.2 7.7 2024 1H 2.1 3.8 3.1 1.8 6.4 2.3 3.1 4.7 3.7 4.3 2.8 8.8 2.5 1.9 Buildings………....…..… .........5% Machinery………..….….........23% 3.3 2.4 3.7 Furn & Fix………...............……5% Constr. in progress….....…..49% 2020 2021 202
Slide 13: Key Takeaways
Key Takeaways • Success of low-cost Chinese EV programs has led to deferment of programs from some traditional OEMs as they rethink pricing strategy • Soft demand in industrial market has further delayed clearing of existing stock from IMI’s customers in the segment • Streamlining initiatives across
Slide 14: Q&A
Q&A
Slide 15: connect with us
00° 1191000110 ©010110 10 1 Ol connect with us