Nemak SAB de CV · BMV:NEMAK/A

Nemak SAB de CV — Q1 2021 Earnings Presentation

32 slides from Nemak SAB de CV's earnings presentation, April 2021

  1. Slide 1: 1Q21 Results

    1Q21 Results APRIL 2 0 2 1 ©Nemak | Public 1

  2. Slide 2: Agenda

    Agenda • 1Q21 Highlights • Financial Overview Armando Tamez Alberto Sada Adrián Althoff CEO CFO IR Officer ©Nemak | Public 2

  3. Slide 3: Forward-Looking Statement

    FORWARD-LOOKING STATEMENT This presentation contains forward-looking information based on numerous variables and assumptions that are inherently uncertain. They involve judgments with respect to, among other things, future economic, competitive and financial market conditions and future business dec

  4. Slide 4: Ongoing efforts to safeguard the wellbeing of our people and our communities

    Ongoing efforts to safeguard the wellbeing of our people and our communities Improvement in HSE practices Measures to reinforce our financial position New e-mobility opportunities ©Nemak | Public 4

  5. Slide 5: Key sustainability-related achievement and solid business performance

    Key sustainability-related achievement and solid business performance ©Nemak | Public

  6. Slide 6: Product launches supported results in the period

    Product launches supported results in the period Image is for illustration purposes only • +15% y-o-y in revenue • Leaner cost structure ©Nemak | Public 6

  7. Slide 7: Second-highest EBITDA per unit for a 1Q

    Second-highest EBITDA per unit for a 1Q • More favorable product mix • Cost efficiencies EBITDA 19% higher y-o-y ©Nemak | Public 7

  8. Slide 8: Our deleveraging efforts continue

    Our deleveraging efforts continue • Repaid remaining credit lines drawn during 2020 • Positive business outlook ©Nemak | Public 8

  9. Slide 9: We remain well positioned to improve our credit metrics

    We remain well positioned to improve our credit metrics • We expect to reduce our Net Debt to EBITDA ratio to pre-pandemic levels ©Nemak | Public 9

  10. Slide 10: New e-mobility business with a leading global manufacturer of electric vehicles

    New e-mobility business with a leading global manufacturer of electric vehicles We plan to initiate series production of these e- mobility components in the second half of 2021 ©Nemak | Public 10

  11. Slide 11: Additional new business during 1Q21

    Additional new business during 1Q21 Battery housings for plug-in hybrid electric sedans of German OEM Cylinder heads and engine blocks in all regions New contracts worth a total of US$240 million annually ©Nemak | Public 11

  12. Slide 12: We grew our total order book for our e-mobility and structural applications business

    We grew our total order book for our e-mobility and structural applications business ~US$900 million in annual revenue ©Nemak | Public 12

  13. Slide 13: Continued progress in the e-mobility and structural applications segment

    Continued progress in the e-mobility and structural applications segment • New business to supply structural parts for Mercedes-Benz ©Nemak | Public 13

  14. Slide 14: One third of our facilities supporting e-mobility and structural applications business

    One third of our facilities supporting e-mobility and structural applications business (1) SLOVAKIA (1) POLAND (1) GERMANY (1) HUNGARY (3) USA (1) CHINA (4) MEXICO ©Nemak | Public

  15. Slide 15: We have decided to proceed with efforts to merge the two entities

    We have decided to proceed with efforts to merge the two entities Key expected benefits include improved valuation transparency for Nemak shares under a single listed entity ©Nemak | Public 15

  16. Slide 16: We announced targets to continue evolving into a more sustainable operation

    We announced targets to continue evolving into a more sustainable operation -28% Scope 1 and 2, -14% Scope 3 by 2030 ©Nemak | Public 16

  17. Slide 17: Financial Results

    Financial Results ©Nemak | Public 17

  18. Slide 18: Overall recovery trend in our main markets

    Overall recovery trend in our main markets Vehicle SAAR (Y-o-y Change) 73%* China 70% 66% Europe 50% 56% USA 30% Brazil 10% 14% -10% -30% -50% -48% -70% -77% -80% -90% Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 *Preliminary ©Nemak | Public Source: IHS Mark it, Automotive News, Mark lines 18

  19. Slide 19: North America and Europe showed an improvement in sales in the first quarter

    North America and Europe showed an improvement in sales in the first quarter • Better economic conditions • Government stimulus programs • Disposable income driven demand ©Nemak | Public 19

  20. Slide 20: Lower light-vehicle production in North America and in Europe

    Lower light-vehicle production in North America and in Europe • Global semiconductor shortage • Adverse winter weather conditions in North America ©Nemak | Public 20

  21. Slide 21: Rest of World showed an improvement in light-vehicle sales and production

    Rest of World showed an improvement in light-vehicle sales and production • China’s production has shown steady improvement • Brazil reflects effect of COVID in the region ©Nemak | Public 21

  22. Slide 22: Nemak's volume improved

    Nemak’s volume improved • Increased production of e- mobility applications • New product launches • Favorable economic and industry conditions in Europe and Asia ©Nemak | Public 22

  23. Slide 23: 1Q21 Global Results

    1Q21 Global Results Revenue (M USD) EBITDA (M USD) +27 +132 (+19%) (+15%) 1,039 169 907 142 1Q20 3Q19 1Q21 3Q20 1Q20 3Q19 1Q21 3Q20 Eq. Volume 10.5 10.7 Unitary 13.5 15.8 ©Nemak | Public 23

  24. Slide 24: We continued efforts to make our operations more efficient

    We continued efforts to make our operations more efficient • We maintained a rigorous control of our manufacturing and administrative expenses ©Nemak | Public 24

  25. Slide 25: EBITDA was higher 19% year-over-year

    EBITDA was higher 19% year-over-year Unitary EBITDA of US$15.8, the second highest for any first quarter ©Nemak | Public 25

  26. Slide 26: Net Income was US$40 million

    Net Income was US$40 million Supported by same factors benefiting EBITDA and Operating Income ©Nemak | Public 26

  27. Slide 27: CAPEX during 1Q21 amounted to US$63 million

    CAPEX during 1Q21 amounted to US$63 million • New product launches • We reiterate our focus on e-mobility and structural applications ©Nemak | Public 27

  28. Slide 28: Credit lines drawn during 2020 fully repaid

    Credit lines drawn during 2020 fully repaid Net debt was US$1.25 billion ©Nemak | Public 28

  29. Slide 29: Focus on reducing leverage

    Focus on reducing leverage Net Debt / EBITDA (LTM base, times) 4.75 4.0 • Net Leverage at 2.7x 3.5 3.4  2.5x excluding extraordinary 2.8 2.7 COVID-19 expenses 2.1 3.6 • Fitch ratified Nemak’s BBB- 3.1 2.5 2.5 rating, changed outlook from Negative to Stable 1Q 2Q 3Q 4Q 1Q Ratio w/o COVID-19 COVID-19

  30. Slide 30: Summary of regional results 1Q21

    Summary of regional results 1Q21 Revenues 1Q21 1Q20 % Var. North America 520 508 2 Europe 397 323 23 Rest of World 121 76 59 Total 1,039 907 15 EBITDA 1Q21 1Q20 % Var. North America 82 91 (10) Europe 75 46 63 Rest of World 12 5 140 Total 169 142 19 ©Nemak | Public 30

  31. Slide 31: Q&A

    Q&A ©Nemak | Public 31

  32. Slide 32: For more information contact us

    For more information contact us at: investors.Nemak.com investor@Nemak.com ©Nemak | Public 32

Nemak — Q1 2021 Earnings Presentation on 6ix