Slide 1: Q4 and Full Year 2023 Financial Results
FEBRUARY 15 , 2024 Q4 AND FULL YEAR 2023 FINANCIAL RESULTS © 2024 Garrett © 2024 Motion Garrett Inc. Motion Inc.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, proj
Slide 3: Strong performance in a flat to down industry environment
Strong performance in a flat to down industry environment Strong 2023 Performance Impactful Capital Allocation Positioned to Perform in 2024 Q4 2023 • Simplified capital structure in 2023, • Anticipating a flattish global industry converting all Series A shares to production environment • Net Sales
Slide 4: Strengthening today, shaping tomorrow
Strengthening today, shaping tomorrow Continued Success in Our Building Momentum with Our Turbo Business Zero Emission Offerings • Achieved a 50%+ win rate in 2023 in Turbo with record turbo • Reconfirming our commitment to achieve target of ~$1 billion volumes in the history of the Company Revenue
Slide 5: Key financial metrics: Q1 2022 – Q4 2023
Key financial metrics: Q1 2022 – Q4 2023 Reported Net Sales ($M) Adjusted EBITDA1 ($M) Europe North Asia Others America $1,011 16.2% 16.1% 15.4% 15.6% 17.3% 16.8% 15.8% 15.3% $945 $970 $960 $945 $901 $859 $898 45% 51% 49% 45% 47% 50% 46% 51% $168 $170 20% 19% 21% $146 $138 $146 $140 $152 $145 17% 20
Slide 6: Net Sales bridge: Q4 and FY 2022 – 2023
Net Sales bridge: Q4 and FY 2022 – 2023 ($M) $945 12 • Net Sales up $47M or +5% on a reported (27) 19 39 (2) 6 basis, +3% at constant currency1 $898 • Gasoline strength from small engine ramp-ups in China and North America • Diesel growth driven by higher production Q4 2022 Gasoline Diesel Commercia
Slide 7: Adjusted EBITDA bridge: Q4 and FY 2022 – 2023
Adjusted EBITDA1 bridge: Q4 and FY 2022 – 2023 ($M) $140 20 (2) (6) $145 • Q4 2023 Adjusted EBITDA up $5M, margin (33) 22 (8) 12 of 15.3% down 30bps • Double-digit gasoline growth coupled with 15.6% +$24M operating performance improvement 15.3% year-over-year CV decline drove unfavorable margin mix
Slide 8: 2023 Adjusted EBITDA to Adjusted Free Cash Flow bridge
2023 Adjusted EBITDA 1 to Adjusted Free Cash Flow 1 bridge ($M) 23 (60) (83) • Working Capital cash contribution driven (89) primarily by inventory & payables improvement 19 (23) $635 • Capital expenditures and cash taxes in line with expectations $422 • Increased cash interest from issuance of $700
Slide 9: Strong cash generation enabling capital allocation execution
Strong cash generation enabling capital allocation execution Liquidity and Net Debt3 ($M) Debt Maturities ($M) Q4 2022 Q3 2023 Q4 2023 $1,588 Unrestricted Cash1 246 162 259 $497 Undrawn Revolver Credit Facility 475 570 570 EUR TLB €450M Total Liquidity 721 732 829 USD TLB $715M USD TLB $700M Term Lo
Slide 10: 2024 outlook
2024 outlook Planning Assumptions Net Sales $3.80B to $3.95B • Light vehicle industry flat to down (1%) Net Sales Growth • Commercial vehicle industry, including both off at Constant Currency1 -2% to +2% highway and on highway, slightly up 2% Net Income $230M to $275M • Average light vehicle BEV pen
Slide 11: Strong 2023 performance and well-positioned for 2024
Strong 2023 performance and well-positioned for 2024 ▪ Delivered strong 2023 performance with record Net sales and Adjusted EBITDA while generating and deploying cash in an impactful way for our Shareholders ▪ Strengthened our leadership position in turbo and continue to build momentum in our zero e
Slide 12: Appendices
ADVANCING MOTION
Slide 13: Income Statement
Income Statement ($ in millions) Q4 2023 Q4 2022 FY 2023 FY 2022 Net sales $945 $898 $3,886 $3,603 Cost of goods sold 756 737 3,130 2,920 Gross profit 189 161 756 683 Selling, general and administrative 69 52 247 216 expenses Other expense, net 2 0 5 2 Interest expense 55 11 159 8 Loss on extinguish
Slide 14: Balance Sheet Summary
Balance Sheet Summary ($ in millions) Assets December 31, 2023 December 31, 2022 Cash and cash equivalents $259 $246 Restricted cash 1 2 Other 1,146 1,183 Total current assets 1,406 1,431 Property, plant and equipment-net 477 470 Deferred income taxes 216 232 Other 428 504 Total assets $2,527 $2,637
Slide 15: Summary of Cash Flows
Summary of Cash Flows ($ in millions) Q4 2023 Q4 2022 FY 2023 FY 2022 Net income $52 $112 $261 $390 Net cash provided by operating activities 135 137 465 375 Net cash used for investing activities (7) (13) (55) (91) Net cash used for financing activities (37) (46) (403) (482) Effect of foreign excha
Slide 16: Reconciliation of Constant Currency Sales % Change
Reconciliation of Constant Currency Sales % Change Garrett Q4 2023 Q4 2022 FY 2023 FY 2022 Reported sales % change 5% 4% 8% (1%) Less: Foreign currency translation 2% (11%) 0% (9%) Constant Currency sales % change 3% 15% 8% 8% Gasoline Reported sales % change 12% 6% 16% 5% Less: Foreign currency tra
Slide 17: Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow
Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow ($ in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2022 FY 2023 Net cash provided by operating activities (GAAP) $73 $104 $61 $137 $92 $164 $74 $135 $375 $465 Expenditures for property, plant and e
Slide 18: Reconciliation of Net Income to Adjusted EBITDA and Full Year Consolidated EBITDA
Reconciliation of Net Income to Adjusted EBITDA and Full Year Consolidated EBITDA1 ($ in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2022 FY 2023 Net income - GAAP $88 $85 $105 $112 $81 $71 $57 $52 $390 $261 Interest expense, net of interest income (4) 8 (9) 11 27 24
Slide 19: Reconciliation of Long-Term Debt to Net Debt and Related Ratios
Reconciliation of Long-Term Debt to Net Debt and Related Ratios ($ in millions) Q4 2022 Q3 2023 Q4 2023 Long-term term debt $1,148 $1,622 $1,643 Short-term term debt $7 $7 $7 Deferred finance costs $31 $48 $46 Gross Debt $1,186 $1,677 $1,696 Cash and cash equivalents $246 $162 $259 Net Debt $940 $1,
Slide 20: Full Year 2024 Outlook Reconciliation of Net Sales Growth
Full Year 2024 Outlook Reconciliation of Net Sales Growth to Net Sales Growth at Constant Currency 2024 Full Year Low 2024 Full Year High End End Net sales (% change) (2%) 2% Foreign currency translation 0% 0% Full Year 2024 outlook Net Sales Growth at Constant Currency (2%) 2% © 2024 Garrett Motion
Slide 21: Full Year 2024 Outlook Reconciliation of Net Income to Adjusted EBITDA
Full Year 2024 Outlook Reconciliation of Net Income to Adjusted EBITDA 2024 Full Year Low 2024 Full Year High ($ in millions) End End Net income - GAAP $230 $275 Interest expense, net of interest income * 146 46 Tax expense 78 93 Depreciation 92 92 Full year 2024 outlook EBITDA (Non-GAAP) $546 $606
Slide 22: Full Year 2024 Outlook Reconciliation of Cash Flow to Adjusted Free Cash Flow
Full Year 2024 Outlook Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow 2024 Full Year Low 2024 Full Year High ($ in millions) End End Net cash provided by operating activities (GAAP) $370 $470 Expenditures for property, plant and equipment (87) (87) Net cash provided by operat
Slide 23: Garrett Motion Inc.
Garrett ADVANCING MOTION www.garrettmotion.com Xinf3s8@o | garrettmotion