Nemak SAB de CV · BMV:NEMAK/A
Nemak SAB de CV — Q1 2025 Earnings Presentation
29 slides from Nemak SAB de CV's earnings presentation, April 2025
Slide 1: 1Q25 Results
1Q25 Results APRIL 2025
Slide 2: Agenda
Agenda • 1Q25 Highlights • Financial Overview • Q&A Armando Tamez Alberto Sada Denise Reyes CEO CFO IRO
Slide 3: Forward-Looking Statement
FORWARD-LOOKING STATEMENT This presentation contains forward-looking information based on numerous variables and assumptions that are inherently uncertain. They involve judgments with respect to, among other things, future economic, competitive and financial market conditions and future business dec
Slide 4: 1Q25 - Highlights
1Q25 - Highlights EBITDA US$149 M Volume 9.8 M equivalent units
Slide 5: Key priorities
Key priorities • Sustainable margin improvement • Cash flow generation • Use of existing assets
Slide 6: North America's industry dynamics
North America’s industry dynamics • Well positioned for different tariff scenarios • Leading position in ICE segment • Sole supplier in 90% of contracts • 6 facilities in USA, strategically located
Slide 7: Prepared to face volume and cost fluctuations
Prepared to face volume and cost fluctuations Adapting fixed cost, minimizing discretional expenses and redistributing sourcing
Slide 8: Strong debt profile
Strong debt profile • No major maturities until 2028 • Cash position: US$299 M • Committed credit lines: US$400 M available
Slide 9: Commercial contracts
Commercial contracts • Awarded business for ~US$90 M • Existing ICE contract extensions beyond 2030 – 2035
Slide 10: Leveraging existing capacity and maximizing cash generation
Leveraging existing capacity and maximizing cash generation Continuous support to our customers adapting to changing preferences
Slide 11: Production of e-motor housing for high-end vehicle in Europe
Production of e-motor housing for high-end vehicle in Europe • Leveraging existing capacity • First e-motor housing produced with Rotacast® technology • Four castings by vehicle
Slide 12: Innovation
Innovation • Enhancing efficiency in HPDC • Developing cutting-edge initiatives • Aligning with cost improvement strategies
Slide 13: Additive manufacturing capabilities for prototyping
Additive manufacturing capabilities for prototyping • Integration of wire arc technology • Acceleration of development time • Overall quality enhancement
Slide 14: Progress on global ESG targets
Progress on global ESG targets Objectives by Achieved by 2030 2024 Scope 1&2 28% 22% Reduction Scope 3 14% 10% Reduction Renewable Electric Energy 25% 30% Share
Slide 15: A- rating from CDP reaffirmed
“A-” rating from CDP reaffirmed for second consecutive year Committment to help mitigate climate change
Slide 16: Financial Results
/ Financial Results
Slide 17: Solid start of 2025
Solid start of 2025 • Improved margins, in line with Guidance • Ongoing deleveraging strategy
Slide 18: Production recovery in certain regions amidst ongoing supply chain issues
Production recovery in certain regions amidst ongoing supply chain issues Vehicle SAAR (M Units) Vehicle Production (M Units) 30.0 10.0 9.5 28.2 26.7 25.2 9.0 24.7 25.0 China 8.0 21.6 7.2 6.9 7.0 6.6 20.0 6.2 16.4 16.5 16.5 6.0 16.2 15.6 USA 15.0 16.2 5.0 15.4 15.7 15.3 15.6 4.3 4.1 3.8 3.9 3.8 4.0
Slide 19: Volume was 9.8 M Eq. units
Volume was 9.8 M Eq. units 7.3% lower y-o-y • OEMs inventory management • Lower export activity • Softer production of EV components
Slide 20: Revenue was US$1.2 B
Revenue was US$1.2 B 0.2% higher, y-o-y • Stable result • Including product repricing
Slide 21: EBITDA was US$149 M
EBITDA was US$149 M 2.9% higher y-o-y • Operating efficiencies • Favorable FX EBITDA per Eq. Unit was US$15.2, +11% y-o-y
Slide 22: Operating income was US$50 M
Operating income was US$50 M 9.1% lower y-o-y Non-cash effect from impairment of non-operating assets Net result was -US$16 M
Slide 23: Net Debt was US$1.6 B
Net Debt was US$1.6 B • Net-debt-to-EBITDA ratio was 2.5x by the end of the quarter, vs 2.8x in 1Q24 • Interest coverage ratio was 5.0x versus 4.6x in 1Q24
Slide 24: Capex was US$64 M
Capex was US$64 M 38.5% lower y-o-y • Reutilization of existing assets • Selective order intake
Slide 25: No major maturities in 2025
No major maturities in 2025 due to liability management performed last year
Slide 26: Summary of regional results
Summary of regional results Revenues 1Q25 1Q24 % Var. North America 641 616 4.1 Europe 413 446 (7.3) Rest of World 158 150 5.7 Total 1,213 1,211 0.2 EBITDA 1Q25 1Q24 % Var. North America 69 58 17.4 Europe 60 70 (13.9) Rest of World 21 17 21.8 Total 149 145 2.9
Slide 27: Nemak is strategically positioned for long-term success
Nemak is strategically positioned for long-term success supported by efficiency, resilience & FCF generation
Slide 28: Q&A
Q&A
Slide 29: For more information contact us
For more information contact us at: investors.nemak.com investor@nemak.com