Nemak Sab De Cv · BMV:NEMAK/A
Nemak Sab De Cv — Investor Presentation (November 2023)
19 slides from Nemak Sab De Cv's investor presentation, November 2023
Slide 1: Corporate Presentation
Corporate Presentation NOVEMBER 2023 ©Nemak | Public
Slide 2: Nemak at a glance
Nemak at a glance Revenue* US$4.8 B Innovative lightweighting solutions for EBITDA* US$560 M the global automotive industry 1 out of 4 vehicles sold globally Established 1979 with Nemak components Footprint 38 Plants 15 countries Employees ~24K Customers 60+ 2023 Guidance* ©Nemak | Public
Slide 3: 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 15/38 Supporting e-mobility & structural applic
Slide 4: Diversified customer portfolio
Diversified customer portfolio E-Mobility, Structure & Chassis ©Nemak | Public
Slide 5: Strategic positioning in both segments
Strategic positioning in both segments ICE Powertrain E-Mobility & Structure & Chassis Cylinder Head Engine Block Transmission Structure & E-Drive PHEV Battery BEV Battery Chassis Housing Housing Complex castings Large and complex components Strong engineering requirements Multi-material / multi-pro
Slide 6: Increasing Nemak's content per vehicle
Increasing Nemak’s content per vehicle Combustion Engine Hybrid Battery Electric US$500 - $650(1) US$700 - $1,000(1) +US$1,400(1) Chassis Other E-Mobility Chassis Hybrid Trans Chassis Structure Structure Battery E-Drive Housings Head, Block & Trans Structure Head & Block Notes: (1) Nemak estimate fo
Slide 7: Nemak's Sustainability Model
Nemak’s Sustainability Model • Climate Protection • Health & Safety • Responsible Sourcing • Circularity • Diversity & Inclusion • Sustainable Leadership • Innovation & Products • Well–Being & Talent • Business Ethics • Corporate Citizenship ©Nemak | Public
Slide 8: Our commitments driving ESG performance
Our commitments driving ESG performance 2030 GHG* emission reduction targets • Scope 1&2: -28% Roadmap to Net Zero • Scope 3: -14% SLB successfully launched • 2050: Net Zero *greenhouse gas 2018: D 2019: C 2021 & 2022: A Rating 2020: C 2021: B Supplier Engagement 2022: B Member of DJSI Platinum stat
Slide 9: EV/SC Order Book
Solid performance in executing and capturing business in the new product segment EV/SC Order Book Cumulative awarded business US$/Yr. • EV/SC segment represented 35% of total US$1.72 B awarded business YTD EV/SC Segment –Revenue (US$ M) +28% • Awarded business of ~US$1.72 B annually across a variety
Slide 10: Recent developments
Recent developments • Robust vehicle demand in our main regions • UAW strike concluded Oct. 30, contract ratification in progress • Inflation recovery negotiations with customers • Preparing to launch new assembly plants • Focus on innovation: PACE & Altair Enlighten Awards • Top Employer 2023 recog
Slide 11: Sales and production showed consistent improvement in most regions during 3Q23
Sales and production showed consistent improvement in most regions during 3Q23 Vehicle SAAR (M Units) 35.0 31.2 30.0 28.3 China 22.2 25.0 20.0 USA 15.7 13.5 15.0 13.0 11.6 10.3 10.0 9.5 Europe 5.0 2.4 1.7 2.2 - Brazil Sep-20 Sep-21 Sep-22 Sep-23 Jun-21 Jun-22 Jun-23 Dec-20 Dec-21 Dec-22 Mar-21 Mar-2
Slide 12: US industry dynamics
US industry dynamics Auto Inventory Average Transaction Prices (Days) (k USD) 90 +27.5% 81 47.9 80 47.6 43.3 70 39.8 66 37.6 60 50 49 40 39 30 30 27 20 21 10 0 S-20 J-21 M-21 S-21 J-22 M-22 S-22 J-23 M-23 S-23 19 20 21 22 S23 Note: Prices do not include applied consumer incentives Ford GM Stellantis
Slide 13: Global EV Sales
Global EV Sales PHEV BEV (M Vehicles) +38% 14.6 CAGR +51% +55% 3.9 10.5 +109% 2.9 6.8 +43% 2.0 10.6 3.3 7.7 2.1 2.3 1.0 1.3 0.6 4.8 0.5 0.8 0.6 1.4 1.7 2.3 0.3 0.5 0.9 15 16 17 18 19 20 21 22 23e PHEV % 0.2 0.3 0.4 0.7 0.6 1.3 2.4 3.6 4.6 BEV % 0.4 0.6 0.9 1.5 1.9 2.9 6.0 9.7 12.5 Note: EV = BEV + P
Slide 14: Long-term vehicle sales by segment
Long-term vehicle sales by segment By Propulsion (M Vehicles) 93 96 98 99 92 92 90 86 88 1 2 80 80 15 18 22 27 31 35 BEV 77 10 13 5 7 1 2 2 2 3 4 4 4 5 5 5 6 PHEV 88 74 74 71 73 70 ICE & 74 71 67 64 62 59 Hybrids 19 20 21 22 23 24 25 26 27 28 29 30 Pandemic & Semi- Industry Recovery Electrification
Slide 15: Key financial highlights
Key financial highlights Revenue (US$ B) EBITDA (US$ M) 1.26 1.32 1.27 157 164 1.22 153 1.12 132 121 3Q22 4Q22 1Q23 2Q23 3Q23 Unitary 3Q22 4Q22 1Q23 2Q23 3Q23 Volume (M Eq. Units) 10.0 9.7 10.8 10.9 10.6 EBITDA 15.7 12.5 12.3 14.0 15.5 Capex (US$ M) Net Debt (US$ B) 176 1.53 1.60 1.42 1.30 1.24 121
Slide 16: Debt profile
Debt profile Debt maturity profile (US$ M) Debt Currency Exposure (%) September 2023 551 545 Avg. Life: 5.1 As of September 30, 2023 Other Avg. Rate: 4.6% 5% Others Bonds LT Debt 239 529 500 222 ST Debt EUR 32% USD 232 60 209 47 41 59 63% 18 26 31 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 20
Slide 17: Capital allocation
Capital allocation Nemak under active transformation process, involving investments and development of new capabilities • Prudent approach to new investments, favoring projects with adequate profitability levels • Seeking to maintain a reasonable leverage level • ICE powertrain business will continu
Slide 18: Key takeaways
Key takeaways • Strengthening leadership in highly engineered e-mobility & structural applications • Growth funded by ICE Powertrain segment • Electrification driving growth of total addressable market • Business model transformation around ESG • Nemak remains well positioned to benefit from both hi
Slide 19: ©Nemak | Public
6 Nemak Innovative Lightweighting