Linamar Corporation · TSX:LNR

Linamar — Q1 2024 Earnings Presentation

42 slides from Linamar's earnings presentation, May 2024

Slide 1: Investor Presentation May 2024
Investor Presentation May 2024
Slide 2: Forward Looking Information, Risk and Uncertainties
Forward Looking Information, Risk and Uncertainties Certain information regarding Linamar set forth in this presentation and oral summary, including management’s assessment of the Company’s future plans and operations may constitute forward-looking statements. This information is based on current ex
Slide 4: Linamar's Powerful Synergistic Diversification Model
Linamar’s Powerful Synergistic Diversification Model Cash for Continued Customer Focused Product Brand Investment Development Expertise Management MOBILITY The Power of a Balanced & Diversified Business Model SEGMENT INDUSTRIAL Consistent Strong, Stable Sustainable Strong Profit SEGMENT Margins Free
Slide 5: Synergistic Diversification Model Key Driver of Long-Term Strong Performance
Synergistic Diversification Model Key Driver of Our Long-Term Consistent Strong Performance Note: Years in which Double Digit Growth in Sales or Normalized Net Earnings is denoted by a star. 1 - Free Cash Flow (FCF) and Net Earnings (NE) – Normalized are Non-GAAP Financial Measures. Please refer to
Slide 6: Companies Who Will Win In Challenging Times
Companies Who Will Win In Challenging Times Flexible and Technically Financially Commercially Nimble Strong and Strong to Invest Astute Devoted to in Capital, R&D Innovation and Automation © Linamar Corporation 6
Slide 7: Company Overview
Company Overview
Slide 8: Key Highlights
Agenda Key Highlights  Q1 was strong start to the 2024 financial year with record level of revenue, double digit growth on both top and bottom lines  Achieved Linamar milestone of >$10B (TTM) in revenues, a goal set back in 1999  Mobility segment Margins improved  Closed the previously announced
Slide 9: Market Focus Addresses Key Global Trends
Market Focus Addresses Key Global Trends Rapid Technology Growing Intensity to Aging Global Growing Global Address Environmental Urbanization Evolution Population Population Concerns © Linamar Corporation 9
Slide 13: Skyjack provides quality-engineered access and material handling equipment
Skyjack proudly provides companies with quality-engineered, simple and reliable access and material handling equipment globally to maximize utilization and their return on investment.
Slide 14: Global Manufacturing Expansion Plan
Global Manufacturing Expansion Plan Hungary: Increased production capacity at the OROS site. China: Launched Electric DC Scissor lift models in Tianjin Mexico: A North America capacity expansion with a new site in Saltillo area In Market, For the Market  Increased regional Competitiveness  Streaml
Slide 15: Skyjack - Quality, Reliability & Durability
Skyjack - Quality, Reliability & Durability Quality, Reliability & Durability Skyjack products are manufactured, sold, and supported worldwide and our scissor lifts are internationally known for their simple reliability. Skyjack is a manufacturer known for offering the rental industry with the best
Slide 17: Linamar Agriculture
Linamar Agriculture Linamar Agriculture Group is a portfolio of successful, independent short line agriculture product brands, building on shared global distribution, markets, and support while linking and leveraging Linamar manufacturing expertise, purchasing power, and global operating systems. Sa
Slide 18: New Acquisition of Seeding Technology Leader Bourgault
New Acquisition of Seeding Technology Leader Bourgault Transaction Details Products  Deal announced on December 20th, 2023, Transaction Closed on February 1st, 2024  $640M CAD Transaction Price Air Carts Air Seeder Drills Highline Brand of Feed  New operating company within the Linamar Industrial
Slide 19: Agriculture Growth Strategic Criteria
Agriculture Growth Strategic Criteria SHORT-LINE OEM DIFFERENTIATED CUSTOMER CONNECTION  Distribution synergies  Innovative & Differentiated Offering  Brand Recognition means end users  OEM Complementary  Strong Intellectual Property who pull demand through channels  Additional Value  Configu
Slide 20: The Ag Strategy Now Addresses the entire Crop Production Cycle
The Ag Strategy Now Addresses the entire Crop Production Cycle Linamar has become a leader in premium short-line agriculture equipment and now with the acquisition of Bourgault provides a full suite of product offerings addressing all segments of the broad acre crop production cycle © Linamar Corpor
Slide 21: Purposefully Building a More Diversified Global Manufacturer
Purposefully Building a More Diversified Global Manufacturer Post-Bourgault Acquisition Pro Forma Annual Operating Earnings Estimate 1 2023 2022 Mobility 2017 48.1% 51.9% 2001 Industrial FY2016 Operating Earnings Industrial 21%  Through organic growth and acquisitions, Linamar has built a transform
Slide 23: Recent Strategic News - Mobility Segment
Recent Strategic News - Mobility Segment Linamar Structures Group  Construction of a new GIGA  Acquisition of 3 Dura-Shiloh  Acquisition of Mobex Global’s Structural Component Facility Battery Enclosures Facilities US Assets in Canada  Accelerates Linamar  Aligns to the ‘Linamar Electrification
Slide 24: Flexibility Of Linamar Mobility's Asset Base
Flexibility Of Linamar Mobility’s Asset Base: Well Positioned to Manage through the market Transition to EV Linamar Mobility’s Linamar’s Long-time CNC Flexible Equipment Strategy Capital Asset Equipment Breakdown1 Key to Maximize Asset Utilization Flexibility should directly correlate to level of un
Slide 25: Diverse Electrification Strategy Maximizes Potential
Diverse Electrification Strategy Maximizes Potential 1 Diverse Products  Propulsion System  Structural and Chassis  Power Generation  Power Storage Diverse Vehicle Types  Pass car, CUV/SUV, Light truck  Commercial vehicles  Trucks Class 1-8  Off road vehicles 2 5 Scalable Solutions  Individ
Slide 27: Innovation: eLIN eAxle Product Family
Innovation: eLIN eAxle Product Family Light Duty Light Duty Beam Utility Duty Beam Medium Duty Beam Independent eAxle eAxle eAxle eAxle Vehicle Class Vehicle Class Vehicle Class Vehicle Class 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8  Linamar’s eLIN Product Solutions Group fin
Slide 28: Structures and Chassis Portfolio
Structures and Chassis Portfolio Knuckles Control Arms Structural Opportunities in Light Metals Crossmembers Subframe Sidemembers Subframe Components  Increasing opportunities in Electrified and Propulsion Agnostic product, mitigating potential risk of ICE exposure in a transitioning Mobility marke
Slide 29: Solid Blend of Products Suited to Changing Propulsion Types
Solid Blend of Products Well Suited to a Changing Landscape of Propulsion Types 2028 Light Vehicle Sales by Propulsion Type & System Electrified Vehicle & Propulsion Agnostic Sales % of Total Light Vehicle Sales 60% 56% 53% 54% 49% 50% 41% 38% 40% 44% 33% 30% 28% 23% 18% 20% 10% Propulsion Agnostic
Slide 30: Content Per Vehicle (CPV)
Electrified Vehicles Key Growth Opportunity for Linamar $120 $100 $80 Content Per Vehicle (CPV) $60 $40 $20 $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Electric Hybrid ICE Updated: Apr. 18, 2024. Estimates based on current projections and EV applications in market. Light vehicle only.
Slide 31: Financial Review & Q1 Highlights
Financial Review & Q1 Highlights
Slide 32: Financial Highlights
Financial Highlights Income Statement (in millions CAD) Q1 2024 Q1 2023 %Δ TTM2 2024 TTM2 2023 %Δ Q1 2024 The key factors impacting results in the quarter are: Sales 2,721.9 2,292.7 18.7% 10,162.8 8,432.4 20.5% 1) 2023 and 2024 acquisitions; NE – Normalized1 159.6 121.7 31.1% 578.9 451.5 28.2% 2) La
Slide 33: Financial Highlights - Balance Sheet
Financial Highlights Balance Sheet (in millions CAD) Q1 2024 Q1 2023 TTM4 2024 TTM4 2023  Balance sheet has remained consistently strong despite higher acquisition activity and resumption of normal capex spending Net Debt1 1,827.9 475.5  Leverage in excellent shape at 1.24x Net Debt to EBITDA desp
Slide 34: Automotive Sales & Content Per Vehicle (CPV)
Automotive Sales & Content Per Vehicle2 (CPV) CPV Q1 2024 CPV Q1 2023 CPV % Change Vehicle Production Automotive Automotive Automotive Units % Change Sales Q1 2024 Sales Q1 2023 Sales % Change (CAD Millions) (CAD Millions) North America 294.99 243.26 21.3% 1.2% 1,206.5 983.5 22.7% Europe 110.10 96.9
Slide 35: Mobility Launches
Mobility Launches 3.50 Launching nearly $3.4 Billion of new work today 3.00 2.50 CAD (Billions) 2.00 1.50 1.00 0.50 0.00 2023 2024 2025 2026 2027 Incremental Growth from Launches $600 to $800 Million in 2024 $700 to $900 Million in 2025 Updated: May 2024 © Linamar Corporation 35
Slide 36: Operating Earnings - Normalized
Operating Earnings - Normalized1 (in Millions CAD) 900 18.0% 800 16.0% 700 14.0% 600 12.0% $ Millions 500 10.0% 400 9.0% 9.3% 9.0% 8.0% 8.2% 7.9% 300 7.1% 7.7% 6.0% 200 4.0% 100 175.8 2.0% 668.6 458.0 605.4 565.1 798.9 243.8 - 0.0% 2019 2020 2021 2022 2023 Q1 2023 Q1 2024 Annual Results Current Quar
Slide 37: Net Earnings - Normalized
Net Earnings - Normalized1 (in Millions CAD) 600 12.0% 500 10.0% 400 8.0% $ Millions 300 6.6% 6.0% 6.3% 5.9% 5.4% 5.6% 5.3% 5.1% 200 4.0% 100 2.0% 464.4 314.6 428.4 400.5 541.1 121.7 159.6 - 0.0% 2019 2020 2021 2022 2023 Q1 2023 Q1 2024 Annual Results Current Quarter Normalized NE as a % of QTR Sale
Slide 38: Cash Flow Continues to be a Key Priority
Cash Flow Continues to be a Key Priority (in Millions CAD) 1,300 FCF1,2 positive on strong earnings despite 1,170 heavier capex; 1,040  Capex returning to normal target range of 6-8% 910 Liquidity1 remains excellent with $1.3 billion of 780 cash available at quarter end. Q1 FCF often negative, e
Slide 39: Industrial Sales, Earnings, and Margins
Industrial Sales, Earnings, and Margins (in millions CAD) Industrial Sales increased by 24.5% or $143.6 to $728.6 Q1 2024 Q1 2023  The Sales were helped by: Finance  the additional sales from the first two months of results from the acquisition of Sales 728.6 585.0 Bourgault; and updating  a subs
Slide 40: Mobility Sales, Earnings, and Margins
Mobility Sales, Earnings, and Margins (in millions CAD) Mobility Sales increased by 16.7% or $285.6 to $1,993.3 Q1 2024 Q1 2023  The Sales were helped by:  the additional sales from our Linamar Structures acquisitions in 2023; Sales 1,993.3 1,707.7  the increasing volumes on launching programs an
Slide 41: Outlook
Consolidated 2023 Outlook Normal Ranges Expectations 2024 Expectations 2025 Actuals Sales Growth 22.9% Double Digit Growth Continued Growth 1 Normalized EPS Growth 40.3% Q2 2024 Expectations 1 Double Digit Growth Continued Double Digit Growth Normalized Net Margin 7.0% - 9.0% 5.6% Expansion Continue

Linamar — Q1 2024 Earnings Presentation on 6ix

Linamar — Q1 2024 Earnings Presentation

Slide 1: Investor Presentation May 2024

Slide 2: Forward Looking Information, Risk and Uncertainties

Slide 3: The Linamar Advantage

Slide 4: Linamar's Powerful Synergistic Diversification Model

Slide 5: Synergistic Diversification Model Key Driver of Long-Term Strong Performance

Slide 6: Companies Who Will Win In Challenging Times

Slide 7: Company Overview

Slide 8: Key Highlights

Slide 9: Market Focus Addresses Key Global Trends

Slide 10: Diverse Key Products

Slide 11: Global Footprint

Slide 12: Infrastructure

Slide 13: Skyjack provides quality-engineered access and material handling equipment

Slide 14: Global Manufacturing Expansion Plan

Slide 15: Skyjack - Quality, Reliability & Durability

Slide 16: Food & Agriculture

Slide 17: Linamar Agriculture

Slide 18: New Acquisition of Seeding Technology Leader Bourgault

Slide 19: Agriculture Growth Strategic Criteria

Slide 20: The Ag Strategy Now Addresses the entire Crop Production Cycle

Slide 21: Purposefully Building a More Diversified Global Manufacturer

Slide 22: Mobility

Slide 23: Recent Strategic News - Mobility Segment

Slide 24: Flexibility Of Linamar Mobility's Asset Base

Slide 25: Diverse Electrification Strategy Maximizes Potential

Slide 26: Mobility Products Portfolio

Slide 27: Innovation: eLIN eAxle Product Family

Slide 28: Structures and Chassis Portfolio

Slide 29: Solid Blend of Products Suited to Changing Propulsion Types

Slide 30: Content Per Vehicle (CPV)

Slide 31: Financial Review & Q1 Highlights

Slide 32: Financial Highlights

Slide 33: Financial Highlights - Balance Sheet

Slide 34: Automotive Sales & Content Per Vehicle (CPV)

Slide 35: Mobility Launches

Slide 36: Operating Earnings - Normalized

Slide 37: Net Earnings - Normalized

Slide 38: Cash Flow Continues to be a Key Priority

Slide 39: Industrial Sales, Earnings, and Margins

Slide 40: Mobility Sales, Earnings, and Margins

Slide 41: Outlook

Slide 42: Thank You