Nemak SAB de CV · BMV:NEMAK/A

Nemak SAB de CV — Q2 2024 Earnings Presentation

24 slides from Nemak SAB de CV's earnings presentation, July 2024

1. Slide 1: 2Q24 Results

   2Q24 Results J U LY 2 0 2 4 ©Nemak | Public

2. Slide 2: Agenda

   Agenda • 2Q24 Highlights • Financial Overview • Q&A Armando Tamez Alberto Sada Denise Reyes CEO CFO IR Officer ©Nemak | Public

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: 2Q24 EBITDA improved 6% y-o-y

   2Q24 EBITDA improved 6% y-o-y cambiar • Challenging conditions • Light-vehicle production declining in some regions ©Nemak | Public

5. Slide 5: Cost reduction program

   Cost reduction program cambiar • Aligning fixed cost structure with volume trends • Optimizing discretionary spending • Rightsizing headcount to volume requirements • Improving manufacturing cost ©Nemak | Public

6. Slide 6: Commercial negotiations

   Commercial negotiations • Inflation recovery • Product re-pricing • EV/SC under-utilized capacity ©Nemak | Public

7. Slide 7: Year-to-date new awarded business for ~US$165 M

   Year-to-date new awarded business for ~US$165 M • ICE Powertrain & EV/SC applications • Maximizing asset utilization EV/SC order book stands at ~US$1.8 B ©Nemak | Public

8. Slide 8: Opportunity to capitalize existing assets and shift to a cash-generation scenario

   Opportunity to capitalize existing assets and shift to a cash-generation scenario Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, consectetuer adipiscing elit, consectetuer adipiscing elit

9. Slide 9: Innovation recognized by PACE Awards

   Innovation recognized by PACE Awards E-Bracket - BMW Subframe Prototype - Ford ©Nemak | Public

10. Slide 10: Nemak is leading the design of a hollow structural component

    Nemak is leading the design of a hollow structural component, first in the industry cambiar Taking lightweighting to the next level ©Nemak | Public

11. Slide 11: Certification of three additional facilities by the Aluminum Stewardship Initiative

    Certification of three additional facilities by the Aluminum Stewardship Initiative performance standard Nemak becomes the first Mexican company to have certified plants in Mexico ©Nemak | Public

12. Slide 12: Financial Results

    Financial Results ©Nemak | Public

13. Slide 13: EBITDA growth of 6% y-o-y

    EBITDA growth of 6% y-o-y • Lower volume • Progress in customer negotiations • Operational efficiencies ©Nemak | Public

14. Slide 14: Slight changes in light-vehicle sales and production in the regions where we operate

    Slight changes in light-vehicle sales and production in the regions where we operate Light-vehicle SAAR (M Units) Light-vehicle Production (M Units) 35.0 10.0 29.9 9.0 8.6 30.0 27.0 China 8.0 7.5 25.6 25.7 7.3 25.0 7.0 6.7 6.3 21.6 6.0 20.0 15.9 16.1 16.4 16.3 16.3 Europe 5.0 4.4 4.2 4.2 4.1 15.0 3.

15. Slide 15: Revenue was US$1.3 B, 5% below y-o-y

    Revenue was US$1.3 B, 5% below y-o-y, primarily due to lower volume and product mix ©Nemak | Public

16. Slide 16: EBITDA was US$163 M, a 6% y-o-y growth

    EBITDA was US$163 M, a 6% y-o-y growth EBITDA per equivalent unit was US$15.9, 14% higher y-o-y ©Nemak | Public

17. Slide 17: Operating Income was US$57 M

    Operating Income was US$57 M ©Nemak | Public Net income totaled US$45 M in 2Q24

18. Slide 18: Net Debt was US$1.75 B

    Net Debt was US$1.75 B • Net-debt-to-EBITDA ratio was 2.9 times versus 2.8 times in 1Q24 • Interest coverage ratio was 4.7 times versus 4.6 times in 1Q24 ©Nemak | Public

19. Slide 19: Capital expenditures totaled US$79 M

    Capital expenditures totaled US$79 M, 40% below the same period of 2023 ©Nemak | Public

20. Slide 20: Summary of regional results

    Summary of regional results Revenues 2Q24 2Q23 % Var. North America 668 727 (8.1) Europe 438 446 (1.9) Rest of World 156 149 4.7 Total 1,262 1,323 (4.6) EBITDA 2Q24 2Q23 % Var. North America 71 74 (4.3) Europe 67 61 9.9 Rest of World 24 18 35.6 Total 163 153 6.0 ©Nemak | Public

21. Slide 21: Focus on margin recovery

    Focus on margin recovery • Progress in customer negotiations, to be concluded in 2H24 • Deployment of cost-saving initiatives ©Nemak | Public

22. Slide 22: FCF generation as top priority

    FCF generation as top priority • Disciplined capital allocation • Flexibility to respond to industry trends ©Nemak | Public

23. Slide 23: Q&A

    Q&A ©Nemak | Public

24. Slide 24: For more information contact us at:

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

Nemak — Q2 2024 Earnings Presentation on 6ix