Dauch Corporation · NYSE:DCH
Dauch — American Axle & Manufacturing — Investor Presentation (June 2024)
27 slides from Dauch's investor presentation, June 2024
Slide 1: June 2024 Investor Presentation
June 2024 Investor Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements In this presentation, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 199
Slide 3: AAM Overview
AAM Overview
Slide 4: AAM - Quick Facts
AAM - Quick Facts Global leader in design, engineering and manufacturing of automotive propulsion systems and technologies to support electric, hybrid and ICE vehicles $6.1B 2023 Sales DRIVELINE METAL FORMING ▪ One of the leaders in hybrid and ▪ Strong position in electrified electric driveline solu
Slide 5: 1Q 2024 AAM Financial Highlights
1Q 2024 AAM Financial Highlights $1.61B $205.6M $(21.4)M Quarterly First Quarter Adjusted Free Sales Adjusted EBITDA Cash Flow Use (12.8% margin) AAM Delivered Solid Performance * For definitions of Adjusted EBITDA and Adjusted Free Cash Flow and non-GAAP reconciliations, please see the attached app
Slide 6: Business Update
Business Update XPENG DiDi EV Component Wins AAM (in partnership with Inovance) AAM to supply various electric to provide XPENG DiDi with 3-in-1 vehicle components for multiple electric drive units. Start of luxury OEM customers. production to begin later this year. 6
Slide 7: 2024 Financial Outlook
2024 Financial Outlook (as of May 3, 2024) 2024 Financial Targets Full Year Sales $6.05 to $6.35 billion Adjusted EBITDA $685 to $750 million Adjusted Free Cash Flow $200 to $240 million • These targets are based on North American light vehicle production of ~15.8 million units, current customer pro
Slide 8: Consistent Deleveraging While Generating Strong FCF
Consistent Deleveraging While Generating Strong FCF Total Debt ($mm) (1) Unsecured Debt Secured Debt Since the MPG acquisition in 2017, total $3,969 debt has been reduced by over $1.4bn $3,745 $3,579 $3,412 $3,052 $1,619 $2,900 $1,595 $2,760 $1,529 $1,412 $1,152 $1,220 $1,132 $2,350 $2,150 $2,050 $2
Slide 9: 2023 Sustainability Report
2023 Sustainability Report Report Highlights • Published new sustainability report in April 2024 • Achieved ISO 50001 certification at all manufacturing facilities • Introduced a new Cybersecurity Awareness program, #AAMSecure • Received 21 quality performance awards • Exceeded our 2023 U.S. renewab
Slide 10: Electrification Product Technology
Electrification Product Technology
Slide 11: Scalable & Modular Platform
Scalable & Modular Platform AAM’s Next Generation Scalable & Modular Electric Drive Units support numerous vehicle applications while optimizing capital and development costs Wheel End Light Duty Beam Heavy Duty Beam Single Motor Dual Motor Optional Torque Scalable Power Levels Modular Motor Constru
Slide 12: Beam Axle vs. E-Beam Axle
Beam Axle vs. E-Beam Axle ICE Beam Axle E-Beam Axle Significant CPV Potential Similarities ICE vs. EV • Component design and vehicle systems integration • NVH excellence • Tubes, structural members and suspension interface • Differential assembly • Axle shafts • Wheel hubs and brakes • Hypoid gears
Slide 13: Growth and Significant CPV Opportunity in EV
Growth and Significant CPV Opportunity in EV Outsourced Support In-House Support E-Beam Axles and E-Drives Components AAM CPV: Up to $2,500+ AAM CPV: Up to $500 AAM is Positioned to Support All OEM Sourcing Strategies 13
Slide 14: AAM Key Electrification Awards & Technology
AAM Key Electrification Awards & Technology Electric Beam Axles 3-in-1 Electric Drive Units (Platform) Jupiter Electric Mobility Mid- AAM Next Generation 3-in-1 eDrive • 2-in-1 configuration Decade • P4 Platform Wheel End Electric Drive Units Launch • 4x 100kW Units per Vehicle Pinnacle Mobility EKA
Slide 15: AAM Long-Term Value Creation
AAM Long-Term Value Creation • Balanced mix of customers and geography. Diversification • Expand our product portfolio, driving opportunities with new OEMs and regions. • Agnostic to propulsion market changes. • Grow above market by leveraging scale and technology. • Electrification will further dri
Slide 16: Supplemental Data
Supplemental Data
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures In addition to the results reported in accordance with accounting principles generally accepted in the United States of America (GAAP) included within this presentation, we have provided certain information, which includes non-GAAP financial measures. Such informa
Slide 18: EBITDA and Adjusted EBITDA Reconciliation
Supplemental Data* EBITDA and Adjusted EBITDA Reconciliation ($ in millions) Three Months Ended March 31, 2024 2023 Net income (loss) $ 20.5 $ (5.1) Interest expense 49.0 50.5 Income tax expense 15.9 - Depreciation and amortization 117.8 124.9 EBITDA 203.2 170.3 Restructuring and acquisition-related
Slide 19: EBITDA and Adjusted EBITDA for Trailing Twelve Months
Supplemental Data* EBITDA and Adjusted EBITDA for the Trailing Twelve Months Ended March 31, 2024 ($ in millions) Trailing Twelve Quarter Ended Months Ended June 30, September 30, December 31, March 31, March 31, 2023 2023 2023 2024 2024 Net income (loss) $ 8.0 $ (17.4) $ (19.1) $ 20.5 $ (8.0) Inter
Slide 20: Adjusted Earnings Per Share Reconciliation
Supplemental Data* Adjusted Earnings (Loss) Per Share Reconciliation Three Months Ended March 31, 2024 2023 Diluted earnings (loss) per share $ 0.17 $ (0.04) Restructuring and acquisition-related costs 0.02 0.04 Unrealized loss (gain) on equity securities - - Tax effect of adjustments (0.01) (0.01)
Slide 21: Free Cash Flow and Adjusted Free Cash Flow Reconciliation
Supplemental Data* Free Cash Flow and Adjusted Free Cash Flow Reconciliation ($ in millions) Three Months Ended March 31, 2024 2023 Net cash provided by operating activities $ 17.8 $ 32.1 Capital expenditures net of proceeds from the sale of property, plant and equipment (44.9) (46.2) Free cash flow
Slide 22: Supplemental Data
Supplemental Data* *Please refer to definition of Non-GAAP measures. 22
Slide 23: Net Debt and Net Leverage Ratio
Supplemental Data* Net Debt and Net Leverage Ratio ($ in millions) March 31, 2024 Current portion of long term debt $ 25.0 Long-term debt, net 2,735.0 Total debt, net 2,760.0 Less: Cash and cash equivalents 469.8 Net debt at end of period 2,290.2 Adjusted LTM EBITDA $ 723.5 Net Leverage Ratio 3.2x *
Slide 24: Segment Financial Information
Supplemental Data* Segment Financial Information ($ in millions) Three Months Ended March 31, 2024 2023 Segment Sales Driveline $ 1,106.4 $ 1,013.8 Metal Forming 644.1 619.1 Total Sales 1,750.5 1,632.9 Intersegment Sales (143.6) (139.0) Net External Sales $ 1,606.9 $ 1,493.9 Segment Adjusted EBITDA
Slide 25: 2024 Targeted Adjusted EBITDA and Free Cash Flow Reconciliation
Supplemental Data* Adjusted EBITDA Adjusted Free Cash Flow Low End High End Low End High End (in millions) (in millions) Net Income (loss) $ (10) $ 30 Net cash provided by operating activities $ 445 $ 485 Interest expense 195 195 Capital expenditures net of proceeds from the sale of property, (265)
Slide 26: Definition of Non-GAAP Measures
Definition of Non-GAAP Measures EBITDA and Adjusted EBITDA We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption c
Slide 27: www.aam.com @&) QO
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