Nemak Sab De Cv · BMV:NEMAK/A
Nemak Sab De Cv — Investor Presentation (November 2021)
26 slides from Nemak Sab De Cv's investor presentation, November 2021
Slide 1: Corporate Presentation
Corporate Presentation NOVEMBER 2021 ©Nemak | Public 1
Slide 2: 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 3: Nemak at a glance
Nemak at a glance Established 1979 Revenue* 3.8 Billion dollars EBITDA* 555 Million dollars Footprint 38 Plants 15 countries Employees +21K Customers 60+ *2021 Guidance ©Nemak | Public 3 3
Slide 4: Portfolio of lightweighting solutions
Portfolio of lightweighting solutions Vehicles sold globally with Providing solutions from ICE to 1/4 Nemak components fully electric vehicles Powertrain • Heads • Blocks • Transmission Vehicle Structures • Longitudinal Members • Shock Towers • Subframes Electric Vehicles • Assembled Battery Housing
Slide 5: Diversified customer portfolio
Diversified customer portfolio ©Nemak | Public 5
Slide 6: State-of-the-art facilities in major automotive markets
State-of-the-art facilities in major automotive markets Czech Republic Poland Russia 15 Countries Hungary United States Germany Slovakia 38 Manufacturing facilities Mexico Austria Turkey China 10 Product Development Spain Centers Argentina Brazil India 1/3 Supporting e-mobility & structural applicat
Slide 7: Recent developments
Recent developments • Sustainability-linked bond issuances for €500 M & US$500 M • Fully independent company with increased stock float • Backlog of awarded business worth ~US$2.5 B annually(1) • During 9M21, delivered margins(2) above pre-pandemic levels Notes: (1) Equivalent to total value of awar
Slide 8: Nemak as a fully independent company
Nemak as a fully independent company • Completion of shareholder restructuring ▪ Single listed entity – potential catalyst for improved stock liquidity and performance Before the spin-off Before the merger Currently Market (Alfa Shareholders) Market (Shareholders) Alfa Market Controladora Market 75.
Slide 9: Corporate Strategy
Corporate Strategy ©Nemak | Public 9
Slide 10: Emission regulations driving e-mobility and lightweighting
Emission regulations driving e-mobility and lightweighting Fuel Efficiency Regulation Miles per gallon Electrification • Faster adoption in industry 115 105 95 Vehicle structures 85 • Mix of lighter materials in 75 65 vehicle structure 55 [Biden] 45 ICE 35 • Longer product life cycle Trump 25 2005 2
Slide 11: Electrification will continue to grow over the next decade
Electrification will continue to grow over the next decade Global Vehicle Sales Forecast (Million Vehicles) • Global sales of EVs expected to accelerate during the 102 second half of the decade 95 13 BEV 32 77 4 • Governments supporting adoption through regulation 1 2 and incentives 6 PHEV ▪ All maj
Slide 12: Increasing Nemak content per vehicle
Increasing Nemak content per vehicle Combustion Engine Hybrid Battery Electric ~US$500(1) ~US$600(1) ~US$1000+(1) Structural Components Hybrid Other EV Structural Components Trans Structural Components Components Battery E-Motor Housings Housings Head, Block & Trans Head & Block Notes: (1) Nemak est
Slide 13: Focus on higher value-added solutions
Focus on higher value-added solutions Powertrain E-Mobility & Structural Cylinder Engine Transmission Cast E-Motor PHEV Battery BEV Battery Heads Blocks Cases Structurals(1) Housings Housings Housings Complex castings Large and complex components Strong engineering requirements Multi-material / mult
Slide 14: Nemak's Transformation
Established strategic plan aimed towards sustainable growth Enhance Profitability Strengthen the Core Long-Term Growth Best-in-class performance Cash generation to fund growth Products & Segments Cost Reduction Use of Existing Assets Electrification Nemak’s Transformation: Operating Efficiency Footp
Slide 15: E-mobility & structural business ~US$1.05 B annually
E-mobility & structural business ~US$1.05 B annually Present in ~100 BEV & PHEV nameplates E-Mobility Components • Battery Housings • E-Motor Housings Commercial Vehicle BMW X5 Jeep Wrangler Porsche Taycan BMW i8 Mercedes-Benz GLE Ford Mustang Mach-E Structural Components • Longitudinal Members • Su
Slide 16: Solid customer relationships in new segments
Solid customer relationships in new segments ▪ Positioned in ~20% of EV(1) platforms to be sold between 2021 – 2025(2) ▪ Expanding capacity for assembled battery housings ▪ Largest independent manufacturer in North America of battery Producing components for ~100 BEV and housings for fully electric
Slide 17: ESG Strategy
ESG Strategy ©Nemak | Public 17
Slide 18: Business model transformation around ESG
Business model transformation around ESG Only automotive company Corporate Carbon Footprint - included in this year’s DJSI our climate strategy based on MILA Pacific Alliance science Awarded with silver rating from Ecovadis We support United Nations Sustainable Development Goals, with a focus on Thi
Slide 19: Committed to supporting a more sustainable automotive industry
Committed to supporting a more sustainable automotive industry 2030 GHG* emission reduction target: Scope 1 & 2: - 28% Scope 3: -14% 2050 Net Zero *Absolute reduction against a 2019 baseline ©Nemak | Public 19
Slide 20: Sustainability Targets
Sustainability Targets Science-based targets Key Factors that support achievement of targets Scope 1 and 2 Emissions (tCO2e) • Purchase and self-generation of renewable energies 1,600,000 2018 Actual: 1,520,900 • Energy efficiency measures and energy source change 2019 Actual: 1,400,000 1,418,978 •
Slide 21: Financial Performance / Financial Strategy
Financial Performance Financial Strategy ©Nemak | Public 21
Slide 22: Solid financial performance amidst pandemic
Solid financial performance amidst pandemic Sales US$ M – quarterly trend 1,039 Improved Profitability 1,000 907 896 946 955 860 15 Volume 7.8 10 10.5 403 10.1 10.1 10.7 (M Eq. 500 9.0 Operational Efficiencies Units) 5 4.4 0 0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Improved Product Mix EBITDA US$ M – qu
Slide 23: Extending debt maturity profile and strengthening liquidity
Extending debt maturity profile and strengthening liquidity 1,185 Proforma debt maturity profile (US$ M) Debt Currency Exposure (%) Debt Profile * As of September 2021 with USD and EUR new bond issuances September 2021 Other Avg. Life: 6.34 Avg. Rate: 3.08% 1,079 8% 218 1 USD 218 38 29 EUR 48% 14 18
Slide 24: Harnessing capabilities to drive growth and profitability
Harnessing capabilities to drive growth and profitability while contributing to a more sustainable mobility • Total addressable market expected to grow from ~US$28 B to ~US$40 B in next decade on back of electrification trend • E-mobility and structural applications expected to increase share of rev
Slide 25: Key takeaways
Key takeaways • Strong financial position to fund and capture growth • Strengthening leadership in highly engineered e-mobility and structural applications • Electrification driving growth of total addressable market • Business model transformation around ESG ©Nemak | Public 25
Slide 26: ©Nemak | Public
6 Nemak Innovative Lightweighting