Slide 1: Q1 2023 Financial Results
APRIL 24, 2023 Q1 2023 FINANCIAL RESULTS
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 19 95. All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, pro
Slide 3: Q1 2023 Highlights
Q1 2023 Highlights Strong Q1 2023 Performance Improving Macro Environment Simplifying Capital Structure • Net Sales of $970M; +8% reported; • Successfully managed increased • Agreement reached to normalize +13% at Constant Currency1 production and continued supply capital structure in an orderly man
Slide 4: Innovation Shift Leveraging Core Competencies
Innovation Shift Leveraging Core Competencies Core Competencies Enabling 400 Engineers Dedicated to Advanced Electrification Solutions Electrification Today Overview of Electrification Hiring and Organization Headcount Over Time High precision design & Turbomachines assembly, high speed Withstands t
Slide 5: Differentiated Zero Emission Technologies
Differentiated Zero Emission Technologies Strong Zero Emission Vehicle Technology Pipeline Zero Emission and Active Customer Engagement Technology Targets Why Garrett Key Wins Achievements Already Awarded Lifetime ✓ Best-in-class packaging and 3 Series Production ~$350M Revenue of Zero Emission ener
Slide 6: Key financial metrics: Q1 2021 – Q1 2023
Key financial metrics: Q1 2021 – Q1 2023 Reported Net Sales ($M) Adjusted EBITDA1 ($M) Europe 17.7% 18.0% 16.0% 15.0% 16.2% 16.1% 15.4% 15.6% 17.3% North $997 $970 America $935 $901 $945 $898 Asia $839 $862 $859 Others 53% 52% 45% 46% 51% 47% 45% 50% 51% $176 $168 $168 14% 15% 16% 20% 20% 18% $134 $
Slide 7: Net Sales bridge: Q1 2022 – Q1 2023
Net Sales bridge: Q1 2022 – Q1 2023 ($M) 8 0 26 (47) $970 21 €/$ 1.07 in 2023 61 vs. 1.12 in 2022 $901 Q1 2022 Gasoline Diesel Commercial Aftermarket Other FX Q1 2023 Net Sales Vehicles net Sales % change1 17% 8% 15% 8% (3)% 13% Percentage of Reported Net Sales 42% 27% 19% 11% 1% • Net sales up +8%
Slide 8: Adjusted EBITDA bridge: Q1 2022 – Q1 2023
Adjusted EBITDA1 bridge: Q1 2022 – Q1 2023 ($M) 23 (26) (3) $168 4 12 (6) $146 18 €/$ 1.07 in 2023 vs. 1.12 in 2022 +$28M Operating performance Year-over-Year 17.3% 16.2% Q1 2022 Volume Product Mix Inflation Commodity, Productivity, R&D FX Q1 2023 Adjusted Passthrough Transportation SG&A - net Adjus
Slide 9: Adjusted EBITDA to Adjusted Free Cash Flow bridge
Adjusted EBITDA 1 to Adjusted Free Cash Flow 1 bridge ($M) • Working capital usage driven by (44) • Increased inventory due to increased volumes (19) • Higher receivables due to timing of sales (8) (10) increase 1 $168 • Cash tax and cash interest in line with expectations $88 • Timing on capital ex
Slide 10: Liquidity and Capital Resources
Liquidity and Capital Resources ($M) Liquidity Q1 2022 Q4 2022 Q1 2023 • Strong liquidity position of $766M; paid $42M Unrestricted Cash1 315 246 291 in Series A dividend Undrawn Revolver Credit Facility 473 475 475 • Unrestricted cash increased by $45M Q1 23 Total1 788 721 766 vs. Q4 22 • Improved
Slide 11: Reaffirmed 2023 Guidance that was raised on April 17th
Reaffirmed 2023 Guidance that was raised on April 17th Updated Outlook (April 17th) Prior Outlook (February 14th) Net Sales $3.79B to $3.98B $3.55B to $3.85B Net Sales Growth +5% to +10% +1% to +6% at Constant Currency1 Net Income $231M to $268M $255M to $300M Adjusted EBITDA1 $585M to $635M $555M t
Slide 12: Q1 2023 summary
Q1 2023 summary ▪ Net sales of $970M, +8% reported, +13% at constant currency1 ▪ Strong operating performance of $168M in Adjusted EBITDA1; Adjusted EBITDA margin1 of 17.3% ▪ Adjusted Free Cash Flow1 of $88M ▪ Strong liquidity position of $766M1 after cash payment of Q1 Series A Dividend ▪ Agreement
Slide 13: Appendices
Appendices Investors Media Eric Birge Maria Santiago Enchandi +1 (734) 228-9529 +1 (734) 386-6593 Eric.Birge@garrettmotion.com Maria.SantiagoEnchandi@garrettmotion.com
Slide 14: Income Statement
Income Statement ($ in millions) Q1 2023 Q1 2022 Net sales $970 $901 Cost of goods sold 781 726 Gross profit 189 175 Selling, general and administrative expenses 56 53 Other expense, net 1 1 Interest expense 28 23 Loss on extinguishment of debt 0 0 Non-operating income (4) (28) Reorganization items,
Slide 15: Balance Sheet Summary
Balance Sheet Summary ($ in millions) Assets March 31, 2023 December 31, 2022 Cash and cash equivalents $291 $246 Restricted cash 1 2 Other 1,313 1,183 Total current assets 1,605 1,431 Property, plant and equipment-net 462 470 Deferred income taxes 240 232 Other 484 504 Total assets $2,791 $2,637 Li
Slide 16: Summary of Cash Flows
Summary of Cash Flows ($ in millions) Q1 2023 Q1 2022 Net income $81 $88 Net cash provided by operating activities 92 73 Net cash (used for) investing activities (8) (29) Net cash (used for) financing activities (44) (196) Effect of foreign exchange rate changes on cash, cash 4 8 equivalents and res
Slide 17: Reconciliation of Constant Currency Sales % Change
Reconciliation of Constant Currency Sales % Change Garrett Q1 2023 Q1 2022 Reported sales % change 8% (10%) Less: Foreign currency translation (5%) (4%) Constant Currency sales % change 13% (6%) Gasoline Reported sales % change 11% (7%) Less: Foreign currency translation (6%) (2%) Constant Currency
Slide 18: Reconciliation of Net Income (Loss) to Adjusted EBITDA and Full Year Consolidated EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA and Full Year Consolidated EBITDA 1 LTM Q4 LTM Q1 ($ in millions) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 2022 2023 Net income - GAAP ($105) $409 $63 $128 $88 $85 $105 $112 $81 $390 $383 Interest expense, net of i
Slide 19: Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow
Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow ($ in millions) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net cash provided by operating activities (GAAP) $32 ($423) ($55) $136 $73 $104 $61 $137 $92 Expenditures for property, plant and equipment (
Slide 20: Reconciliation of Long-Term Debt to Net Debt and Related Ratios
Reconciliation of Long-Term Debt to Net Debt and Related Ratios ($ in millions) Q1 2023 Q4 2022 Long-term term debt $1,157 $1,148 Short-term term debt $7 $7 Deferred finance costs $29 $31 Gross Debt $1,193 $1,186 Cash and cash equivalents $291 $246 Net Debt $902 $940 Consolidated EBITDA LTM (Non-GAA
Slide 21: Full Year 2023 Outlook Reconciliation of Net Sales Growth to Constant Currency
Full Year 2023 Outlook Reconciliation of Net Sales Growth to Net Sales Growth at Constant Currency 2023 Full Year Low 2023 Full Year 2023 Full Year End (Updated High End 2023 Full Year Low High End (Prior Outlook) (Updated Outlook) End (Prior Outlook) Outlook) Net sales (% change) 5% 10% (1%) 7% For
Slide 22: Full Year 2023 Outlook Reconciliation of Net Income to Adjusted EBITDA
Full Year 2023 Outlook Reconciliation of Net Income to Adjusted EBITDA 2023 Full Year Low 2023 Full Year High End (Updated End (Updated 2023 Full year Low 2023 Full year High ($ in millions) Outlook) Outlook) End (Prior Outlook) End (Prior Outlook) Net income - GAAP $231 $268 $255 $300 Net interest
Slide 23: Full Year 2023 Outlook Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow
Full Year 2023 Outlook Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow 2023 Full Year Low 2023 Full Year High End (Updated End (Updated 2023 Full Year Low 2023 Full Year High ($ in millions) Outlook) Outlook) End (Prior Outlook) End (Prior Outlook) Net cash provided by operati