Nemak Sab De Cv · BMV:NEMAK/A
Nemak Sab De Cv — Q4 2021 Earnings Presentation
37 slides from Nemak Sab De Cv's earnings presentation, February 2022
Slide 1: 4Q21 Results
4Q21 Results FEBRUARY 2022 ©Nemak | Public 1
Slide 2: Agenda
Agenda • 4Q21 Highlights • Financial Overview Armando Tamez Alberto Sada Adrián Althoff CEO CFO IR Officer ©Nemak | Public 2
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
Slide 4: Improved results amidst industry volatility
Improved results amidst industry volatility Image is for illustration purposes only • New growth opportunities linked to the mobility landscape ©Nemak | Public 4
Slide 5: We continue to face industry challenges
We continue to face industry challenges Image is for illustration purposes only • Measures to safeguard employee safety given the ongoing pandemic • Operational efficiencies to mitigate effects of global semiconductor shortage ©Nemak | Public 5
Slide 6: New product launches support higher volume
New product launches support higher volume Volume was +2% vs 2020 Revenue was +21% vs 2020 ©Nemak | Public 6
Slide 7: EBITDA finished at US$567 M for 2021
EBITDA finished at US$567 M for 2021 Image is for illustration purposes only • Tie for best-ever full-year unitary EBITDA mark in our history • Best-ever unitary EBITDA mark of any fourth quarter in our history EBITDA 31% higher vs 2020 ©Nemak | Public 7
Slide 8: New battery housings for fully electric vehicles of global customers
New battery housings for fully electric vehicles of global customers Image is for illustration purposes only • Awarded business with annual sales of US$350 M • Investment of ~US$200 M in three new facilities ©Nemak | Public 8
Slide 9: Our order book in EV/SC segment has reached US$1.4 B annually
Our order book in EV/SC segment has reached US$1.4 B annually ©Nemak | Public
Slide 10: We aim to accelerate progress towards our EV/SC order book
We aim to accelerate progress towards our EV/SC order book target of US$2 B annually for 2025 ©Nemak | Public
Slide 11: Electrification is a fast-growing driver of our current business
Electrification is a fast-growing driver of our current business EV/SC share of Nemak revenue exceeds combined share of PHEVs and BEVs of global light-vehicle sales ©Nemak | Public 11
Slide 12: We estimate that we are producing components for ~520 vehicle nameplates
We estimate that we are producing components for ~520 vehicle nameplates ©Nemak | Public Including ~100 fully electric or plug-in hybrid vehicle nameplates
Slide 13: E-mobility and structural components were key revenue drivers
E-mobility and structural components were key revenue drivers • Battery housings • E-motor components • Structural applications New business for fully electric vehicles in Europe and North America ©Nemak | Public 13
Slide 14: We take part in Ford's new all-electric F-150 Lightning and E-Transit
We take part in Ford’s new all-electric F-150 Lightning and E-Transit, as well as in Mercedes- Benz’s new generation AMG SL ©Nemak | Public 14
Slide 15: Incremental business on the powertrain side
Incremental business on the powertrain side Image is for illustration purposes only • Cylinder heads and engine blocks for the North America market ©Nemak | Public 15
Slide 16: Contracts across our product lines reached ~US$1.1 B annually
Contracts across our product lines reached ~US$1.1 B annually One-third of these contracts represents incremental business ©Nemak | Public
Slide 17: We received awards from several OEMs
We received awards from several OEMs Recognition of our commitment to innovation and cutting-edge technology ©Nemak | Public 17
Slide 18: We made further progress in our sustainability agenda
We made further progress in our sustainability agenda Rollout of emissions-reduction targets B rating in CDP Climate Change questionnaire Selected to join stock indexes with sustainability criteria ©Nemak | Public 18
Slide 19: Financial Results
Financial Results ©Nemak | Public 19
Slide 20: Semiconductor shortage weighed on light-vehicle production in North America and Europe
Semiconductor shortage weighed on light-vehicle production in North America and Europe • Gradual overall demand recovery • Stronger first half nearly compensated for a softer second half ©Nemak | Public 20
Slide 21: Industry recovery limited by supply-chain constraints
Industry recovery limited by supply-chain constraints Vehicle SAAR (M Units) 30.0 25.9 China 25.0 20.0 15.0 USA 15.0 9.2 10.0 W. Europe 8.6 5.0 4.7 3.2 1.6 Brazil 0.6 - Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 ©Nemak | Public Source: IHS Markit, Automotive News, Marklines 21
Slide 22: Rest of the World showed overall improvement in light-vehicle sales and production
Rest of the World showed overall improvement in light-vehicle sales and production • China and Brazil showed higher levels of sales and production ©Nemak | Public 22
Slide 23: Nemak's volume showed a slight recovery
Nemak’s volume showed a slight recovery • Light-vehicle inventories remain historically low • Favorable demand-side fundamentals ©Nemak | Public 23
Slide 24: 2021 Global Results
2021 Global Results EBITDA (US$ M) Unitary EBITDA (US$/Eq. Unit) 2020: 432M 2021: 567M (+31%) 2020: 12.3 2021: 15.9 (+29%) 17.6 16.7 16.2 178 15.8 169 14.9 14.7 150 150 13.5 142 133 115 -8.4 -37 1Q20 2Q 3Q 4Q 1Q21 2Q 3Q 4Q 1Q20 2Q 3Q 4Q 1Q21 2Q 3Q 4Q Eq. Vol All-time 2nd 2nd All-time 10.5 4.4 10.1 1
Slide 25: Continued efforts to improve cost performance
Continued efforts to improve cost performance • Aluminum prices affected COGS • Achieved 10% y-o-y reduction in SG&A ©Nemak | Public 25
Slide 26: Best-ever unitary EBITDA for a fourth quarter
Best-ever unitary EBITDA for a fourth quarter • For the full year, EBITDA was US$567 M ©Nemak | Public 26
Slide 27: Operating Income for full year was US$229 M
Operating Income for full year was US$229 M More than double the previous year’s figure ©Nemak | Public 27
Slide 28: Full-year Net Income absent of non-recurring effects was US$90 M
Full-year Net Income absent of non-recurring effects was US$90 M • Non-cash write-off of tax assets at US operations • Bond refinancing costs Influenced by same factors that affected EBITDA ©Nemak | Public 28
Slide 29: Prudent capital allocation throughout year
Prudent capital allocation throughout year Net debt: US$1.3 billion CAPEX: US$360 million ©Nemak | Public 29
Slide 30: Summary of regional results 4Q21
Summary of regional results 4Q21 Revenues 4Q21 4Q20 % Var. North America 485 464 4.6 Europe 339 360 (5.9) Rest of World 121 123 (1.9) Total 945 946 (0.1) EBITDA 4Q21 4Q20 % Var. North America 61 77 (21.3) Europe 57 64 (11.2) Rest of World 16 8 100.8 Total 133 150 (11.3) ©Nemak | Public 30
Slide 31: Sustainability-linked bonds helped extend debt maturity profile from 3.9 to 7.3 years
Sustainability-linked bonds helped extend debt maturity profile from 3.9 to 7.3 years Reduction in financial expenses of ~US$11 M annually ©Nemak | Public 31
Slide 32: We successfully concluded the merger of Controladora Nemak into Nemak during 2021
We successfully concluded the merger of Controladora Nemak into Nemak during 2021 ©Nemak | Public 32
Slide 33: We repurchased ~21.3 million shares during 4Q21
We repurchased ~21.3 million shares during 4Q21 We continue to evaluate the potential use of share buybacks on an ongoing basis, driving value creation for shareholders ©Nemak | Public 33
Slide 34: Funds available to support growth
Funds available to support growth Image is for illustration purposes only • Cash flow generation • Existing credit facilities ©Nemak | Public 34
Slide 35: 2022 Guidance
2022 Guidance Volume: 36.9 M Eq. Units Revenue: US$4.0 B EBITDA: US$502 M CAPEX: US$415 M ©Nemak | Public 35
Slide 36: Q&A
Q&A ©Nemak | Public 36
Slide 37: For more information contact us
For more information contact us at: investors.Nemak.com investor@Nemak.com ©Nemak | Public 37