Garrett Motion Inc. · NASDAQ:GTX
Garrett Motion — Q1 2024 Earnings Presentation
24 slides from Garrett Motion's earnings presentation, Apr 25, 2024
Slide 1: Q1 2024 Financial Results
APRIL 25 , 2024 Q1 2024 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: Delivered solid Q1 2024 in a challenging environment
Delivered solid Q1 2024 in a challenging environment Solid Financial Results in Line Executing on our Capital Managing with Full Year Outlook Allocation Priorities Industry Trends • Net Sales $915M; (6)% vs. • Solid cash generation after • Leveraged flexible cost structure to Q1 2023 or (5)% at cons
Slide 4: Value added differentiated Turbo & Zero Emission technologies
Value added differentiated Turbo & Zero Emission technologies Expanding our Turbo Leadership in a Advancing Our Zero Emission Offerings that Consolidating Industry Deliver True Value to Our Customers • Additional wins and launches of gasoline variable • Two new series production awards for high-spee
Slide 5: Focused on value creation
Focused on value creation Industry Continue to be #1 Turbo player and leader in a technology-driven industry; Still investing Leadership in new Turbo technology especially for hybrids; Expanding into industrial applications Cash Proven performance through business cycles; Framework of 60% adjusted f
Slide 6: Quarterly financial trends: Q1 2023 – Q1 2024
Quarterly financial trends: Q1 2023 – Q1 2024 Reported Net Sales ($M) Adjusted EBITDA1 ($M) $970 $1,011 $960 $945 $915 51% 49% 45% 47% 51% 19% 21% $168 $170 18% 19% $152 $145 $151 19% 29% 30% 32% 32% 28% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Europe North Asi
Slide 7: Net Sales bridge: Q1 2023 – Q1 2024
Net Sales bridge: Q1 2023 – Q1 2024 ($M) $970 (10) (21) (19) 2 1 (8) $915 Q1 2023 Gasoline Diesel Commercial Aftermarket Other FX Q1 2024 Net Sales Vehicles Net Sales % change1 (2)% (8)% (11)% 2% 9% (5)% Percentage of Reported Net Sales 42% 26% 18% 12% 2% • Q1 2024 Net Sales of $915M, down $55M or (
Slide 8: Adjusted EBITDA bridge: Q1 2023 – Q1 2024
Adjusted EBITDA1 bridge: Q1 2023 – Q1 2024 ($M) $168 (12) (2) $151 (11) 14 (7) (16) 17 +$13M operating performance improvement year-over-year 17.3% 16.5% Q1 2023 Volume Product Mix Pricing net of Commodity, Productivity, R&D FX Q1 2024 Adjusted Inflation Transportation SG&A - net Adjusted EBITDA1 Pa
Slide 9: Q1 2024 Adjusted EBITDA to Adjusted Free Cash Flow bridge
Q1 2024 Adjusted EBITDA1 to Adjusted Free Cash Flow1 bridge ($M) (9) (10) • Continued strong cash generation aligned with (32) full year outlook • Working capital increase driven by inventory (27) seasonality partially offset by strong collections $151 (5) • Higher capital expenditures driven by tim
Slide 10: Strong liquidity enabling capital allocation priorities
Strong liquidity enabling capital allocation priorities Liquidity and Net Debt3 ($M) Strong Q1 2024 performance: • Exiting quarter with $766M of total liquidity3 Q4 2023 Q1 2024 • Repurchased $109M4 of common stock under our Unrestricted Cash1 259 196 $350M repurchase program • 227M shares outstandi
Slide 11: Reaffirming 2024 outlook
Reaffirming 2024 outlook Highlights Net Sales $3.80B to $3.95B • Light vehicle industry flat to down 1%; anticipating a H1 decline Net Sales Growth and stronger H2 growth outlook at Constant -2% to +2% Currency1 • Commercial vehicle industry, including both on- and off-highway, slightly up 2% Net In
Slide 12: On track for a strong 2024
On track for a strong 2024 • Delivered solid Q1 results • Executing on our capital allocation priorities • Ongoing awards and launches across turbo in hybrid, natural gas and power generation applications • Maintaining the momentum with awards and testing of our zero emission technologies • Reiterat
Slide 13: Appendices
ADVANCING MOTION
Slide 14: Income Statement
Income Statement ($ in millions) Q1 2024 Q1 2023 Net sales $915 $970 Cost of goods sold 743 781 Gross profit 172 189 Selling, general and administrative expenses 64 56 Other expense, net 1 1 Interest expense 31 27 Non-operating income (5) (3) Income before taxes $81 $108 Tax expense 15 27 Net income
Slide 15: Balance Sheet Summary
Balance Sheet Summary ($ in millions) Assets March 31, 2024 December 31, 2023 Cash and cash equivalents $196 $259 Restricted cash 1 1 Other 1,141 1,146 Total current assets 1,338 1,406 Property, plant and equipment-net 452 477 Deferred income taxes 213 216 Other 445 428 Total assets $2,448 $2,527 Li
Slide 16: Summary of Cash Flows
Summary of Cash Flows ($ in millions) Q1 2024 Q1 2023 Net income $66 $81 Net cash provided by operating activities 84 92 Net cash used for investing activities (28) (8) Net cash used for financing activities (112) (44) Effect of foreign exchange rate changes on cash, cash equivalents and restricted
Slide 17: Reconciliation of Constant Currency Sales % Change
Reconciliation of Constant Currency Sales % Change Garrett Q1 2024 Q1 2023 Reported sales % change (6%) 8% Less: Foreign currency translation (1%) (5%) Constant Currency sales % change (5%) 13% Gasoline Reported sales % change (4%) 11% Less: Foreign currency translation (2%) (6%) Constant Currency s
Slide 18: Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow
Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow and Adjusted Free Cash Flow Conversion ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net cash provided by operating activities $92 $164 $74 $135 $84 Expenditures for property, plant and equipment (8) (25) (24) (26) (32)
Slide 19: Reconciliation of Net Income to Adjusted EBITDA and Consolidated EBITDA
Reconciliation of Net Income to Adjusted EBITDA and Consolidated EBITDA1 LTM Q4 LTM Q1 ($ in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 2023 2024 Net income $81 $71 $57 $52 $66 $261 $246 Interest expense, net of interest income 27 24 47 54 29 152 154 Tax expense 27 30 13 16 15 86 74 Depreciat
Slide 20: Reconciliation of Long-Term Debt to Net Debt and Related Ratios
Reconciliation of Long-Term Debt to Net Debt and Related Ratios ($ in millions) Q1 2024 Q4 2023 Long-term term debt $1,633 $1,643 Short-term term debt $7 $7 Deferred finance costs $43 $46 Gross Debt $1,683 $1,696 Cash and cash equivalents $196 $259 Net Debt $1,487 $1,437 Consolidated EBITDA LTM $640
Slide 21: Full Year 2024 Outlook Reconciliation of Net Sales Growth
Full Year 2024 Outlook Reconciliation of Net Sales Growth to Net Sales Growth at Constant Currency 2024 Full Year Low 2024 Full Year High End End Net sales (% change) (2%) 2% Foreign currency translation 0% 0% Full Year 2024 outlook Net Sales Growth at Constant Currency (2%) 2% © 2024 Garrett Motion
Slide 22: Full Year 2024 Outlook Reconciliation of Net Income to Adjusted EBITDA
Full Year 2024 Outlook Reconciliation of Net Income to Adjusted EBITDA 2024 Full Year Low 2024 Full Year High ($ in millions) End End Net income $230 $275 Interest expense, net of interest income * 146 146 Tax expense 78 93 Depreciation 92 92 Full year 2024 outlook EBITDA $546 $606 Stock compensatio
Slide 23: Full Year 2024 Outlook Reconciliation of Cash Flow to Adjusted Free Cash Flow
Full Year 2024 Outlook Reconciliation of Cash Flow from Operations to Adjusted Free Cash Flow 2024 Full Year Low 2024 Full Year High ($ in millions) End End Net cash provided by operating activities $370 $470 Expenditures for property, plant and equipment (87) (87) Net cash provided by operating act
Slide 24: Investors Media
Investors Media Eric Birge Maria Eugenia Santiago Echandi +1 (734) 392-5504 +1 (734) 392-5504 Eric.Birge@garrettmotion.com Maria.SantiagoEchandi@garrettmotion.com © 2024 Garrett Motion Inc.