Martinrea International Inc. · TSX:MRE
Martinrea International — Q4 2024 Earnings Presentation
24 slides from Martinrea International's earnings presentation, March 2025
Slide 1: Q4 2024 Results
Q4 2024 RESULTS www.martinrea.com | 1
Slide 2: Rob Wildeboer, Executive Chairman
ROB WILDEBOER EXECUTIVE CHAIRMAN www.martinrea.com | 2
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”), including, but not limited to, statements relating to the Company’s beliefs or views or expectations of, improvements in, expansion of and
Slide 4: Agenda
AGENDA ROB WILDEBOER EXECUTIVE CHAIRMAN PAT D’ERAMO CHIEF EXECUTIVE OFFICER FRED DI TOSTO PRESIDENT PETER CIRULIS CHIEF FINANCIAL OFFICER Q&A www.martinrea.com | 4
Slide 5: Broad Issues
BROAD ISSUES Slow adoption of electric Geopolitics (Challenges Trade and vehicles (EVs) with China) tariffs www.martinrea.com | 5
Slide 6: Pat D'Eramo, Chief Executive Officer
PAT D’ERAMO CHIEF EXECUTIVE OFFICER www.martinrea.com | 6
Slide 7: 2024 Highlights
2024 HIGHLIGHTS Safety continues to trend in Employee survey results Adjusted EBITDA margin the right direction – Total remain strong increased despite slightly Recordable Injury Frequency lower sales (TRIF) of 0.99 Maintained a strong balance Repurchased over 5 million Won multiple quality awards s
Slide 8: 2024 Highlights
2024 HIGHLIGHTS Invested in the business - Reduced carbon emissions by Reduced energy intensity by ~$275 million in capital 17% since 2019, progressing 23% since 2019 expenditures towards our goal of 35% by 2035 Reduced waste to landfills by Advanced Manufacturing MiNDCAN (software 54% since 2019; 8
Slide 9: Total Recordable Injury Frequency (TRIF)
TOTAL RECORDABLE INJURY FREQUENCY Martinrea's Company-Wide Safety Performance 9.0 (# OF RECORDABLE INJURIES PER MONTH X 200,000 / TOTAL TOTAL RECORDABLE INJURY FREQUENCY (TRIF) 8.0 8.48 7.0 HOURS WORKED IN EACH MONTH) 6.0 6.36 5.0 4.0 4.57 3.0 3.50 2.88 2.0 2.20 1.0 1.56 1.37 1.21 1.10 0.99 0.0 2014
Slide 10: Fred Di Tosto, President
FRED DI TOSTO PRESIDENT www.martinrea.com | 10
Slide 11: Status of Operations
STATUS OF OPERATIONS • Operationally, we continue to execute well. – Driving improvements through Martinrea Operating System (MOS). – Commercial activity to offset EV volume shortfalls and lingering inflationary costs. • Q4 2024 results impacted by OEM vehicle inventory correction. • Margins solidly
Slide 12: New Business Awards
NEW BUSINESS AWARDS LIGHTWEIGHT STRUCTURES PROPULSION SYSTEMS $35M In Annualized Sales $5M In Annualized Sales 2026 Start of Production 2027 Start of Production TOTAL AWARDS OVER LAST FOUR QUARTERS $230M In Annualized Sales www.martinrea.com | 12
Slide 13: Peter Cirulis, Chief Financial Officer
PETER CIRULIS CHIEF FINANCIAL OFFICER www.martinrea.com | 13
Slide 14: Quarter Over Quarter Comparison
QUARTER OVER QUARTER COMPARISON In Canadian Dollars Q4 2024 Q3 2024 Production sales were down approximately 10% quarter over quarter, attributed largely to OEM vehicle inventory Production Sales $1,048.6M $1,167.3M correction. Tooling Sales $102.3M $70.2M Higher tooling sales quarter over quarter b
Slide 15: Year-Over-Year Comparison
YEAR-OVER-YEAR COMPARISON In Canadian Dollars Q4 2024 Q4 2023 Production sales were down approximately 10% year Production Sales $1,048.6M $1,168.7M over year, because of OEM inventory correction. Tooling Sales $102.3M $127.4M Total Sales $1,150.9M $1,296.1M Operating Income $40.1M $56.6M Operating
Slide 16: Balance Sheet
BALANCE SHEET NET DEBT - Excluding IFRS-16 ($ Millions) Q4 2024 net debt (excluding IFRS-16 lease $1,000.0 liabilities) decreased by approximately $7 $900.0 million compared to Q3 2024. $800.0 $908.7 $955.9 $937.4 $889.2 In Q4 2024, we spent approximately $11.9 $857.7 $856.5 $852.1 $700.0 $782.4 $82
Slide 17: 2025 Outlook
2025 OUTLOOK 2025F 2024A FREE CASH FLOW* $125-$175M $183.8M (before IFRS 16 lease payments) ($75-$125M including IFRS-16 lease ($131.5 including IFRS-16 lease payments) payments) CAPEX Approximately $300M $275.5M TOTAL SALES $4.8-$5.1B $5.014B ADJUSTED OPERATING 5.3%-5.8% 5.3% INCOME MARGIN * Exclud
Slide 18: Thank You Q&A
THANK YOU Q&A www.martinrea.com | 18
Slide 19: Appendix
APPENDIX www.martinrea.com | 19
Slide 20: Q4 Sales
Q4 SALES • Sales down 11.2% year over year: – Production sales down 10.3% $1,400 – Tooling sales down 19.7% $1,200 -10.3% YoY • North American production sales were down 7.2%, reflecting: $1,000 – Lower year over year production volumes on certain vehicle Sales ($ Millions) $800 platforms including
Slide 21: Q4 Adjusted Operating Income Margin
Q4 ADJUSTED OPERATING INCOME MARGIN 5.0% • Adjusted Operating Income Margin declined 90bps year-over- year. • North American margin increased because of: Adjusted Operating Income Margin (%) 4.0% − Lower tooling sales, − Lower SG&A as a percentage of sales, − Higher favourable commercial settlements
Slide 22: Q4 Adjusted Net Earnings per Share
Q4 ADJUSTED NET EARNINGS PER SHARE • Adjusted Net Earnings per Share of ($0.21) decreased year-over-year, reflecting: $0.40 – The factors affecting sales and Adjusted Operating Income Margin explained earlier, and Adjusted Net Earnings Per Share ($) $0.19 – An unusually high tax rate, driven primari
Slide 23: Q4 Free Cash Flow
Q4 FREE CASH FLOW $140 • Free Cash Flow declined year-over-year, reflecting: $120 – A decrease in cash provided by non-cash working capital. Free Cash Flow ($ Millions) $100 – Higher cash capex. – Higher income taxes paid. $80 – Lower Adjusted EBITDA. $60 $119.9 – Partially offset by lower interest
Slide 24: Connect With Us
CONNECT WITH US www.martinrea.com www.martinrea.com | 24
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