Martinrea International Inc. · TSX:MRE
Martinrea International — Q1 2022 Earnings Presentation
21 slides from Martinrea International's earnings presentation, May 5, 2022
Slide 1: Q1 2022 Quarterly Results Presentation
Q1 2022 QUARTERLY RESULTS PRESENTATION MAY 5, 2022 ©2019 Martinrea International Inc.
Slide 2: Rob Wildeboer, Executive Chairman
ROB WILDEBOER EXECUTIVE CHAIRMAN www.martinrea.com | 2
Slide 3: Legal Disclaimer
*LEGAL DISCLAIMER This presentation contains forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”), including, but not limited to, statements relating to the growth of or expectations of, improvements in, expansion of and/or guidance or outlook as
Slide 4: Rob Wildeboer, Executive Chairman
ROB WILDEBOER EXECUTIVE CHAIRMAN www.martinrea.com | 4
Slide 5: Pat D'Eramo, President and CEO
PAT D’ERAMO PRESIDENT AND CEO www.martinrea.com | 5
Slide 6: Results much improved over second half 2021; 2023 outlook intact
Q1 2022 RESULTS MUCH IMPROVED OVER SECOND HALF 2021; 2023 OUTLOOK INTACT Q1 2022 notably better than Q3 and The environment remains Q4 2021, as lower level of chip- challenging, with cost pressures related customer call-offs resulted in continuing during the quarter; these improved volume and mix co
Slide 7: Status of Operations
STATUS OF OPERATIONS North Europe Asia America • Volume and mix improved in Q1 2022 • European production volumes also saw a • China is being impacted by the same given a more stable production sequential improvement in Q1 2022. volume headwinds as in other environment. Further improvement Volumes a
Slide 8: Path to 2023 Outlook
PATH TO 2023 OUTLOOK Launch related cash expected to normalize Expected to into second half of 2022 smooth as supply chain improves Commercial Other >8% negotiations Heavy Launch Cycle Operations and customer production inefficiency Material/Labour/Energy Cost Inflation Volume/ Mix Adjusted Operatin
Slide 9: VoltaXplore – Battery Day
VOLTAXPLORE – BATTERY DAY • Battery Day held on April 5 in Montreal • Facility up and running, producing batteries • Technology validated, confirming advantages of graphene-enhanced Li-Ion batteries – Greater capacity – Longer life – Faster charging speeds – Enhanced safety • 2GWh facility condition
Slide 10: Fred Di Tosto, Chief Financial Officer
FRED DI TOSTO CHIEF FINANCIAL OFFICER www.martinrea.com | 10
Slide 11: Q1 2022 Results – Sequential Comparison to Q4 2021
Q1 2022 RESULTS – SEQUENTIAL COMPARISON TO Q4 2021 First quarter results much improved sequentially; production environment more stable with a lower level of chip- related OEM production shutdowns and customer “call-offs” In Canadian Dollars Q1 2022 Q4 2021 Production sales up 30% on higher Producti
Slide 12: Q1 2022 Results – Year-over-Year Comparison
Q1 2022 RESULTS – YEAR-OVER-YEAR COMPARISON First quarter adjusted operating income and EBITDA were generally consistent with year-ago levels, when we began to feel the impact of lower volumes due to semiconductor and other supply shortages; contribution from higher sales being offset by cost inflat
Slide 13: 2023 Outlook Intact
2023 OUTLOOK INTACT* 2023F 2021A TOTAL SALES $4.6-$4.8B $3.78B ADJUSTED OPERATING INCOME MARGIN >8% 1.8% FREE CASH FLOW >$200M ($121.6M) KEY ASSUMPTIONS • Based on IHS production volume projections • Capex expected to normalize over the forecast period and approximate depreciation as a % of sales •
Slide 14: Balance Sheet
BALANCE SHEET* Net Debt increased during the first NET DEBT - Excluding IFRS-16 ($ Millions) quarter; an increase in production and tooling-related working capital $1,000.0 contributed to the increase. Net Debt $800.0 $859.6 $857.7 $922.1 to Adjusted EBITDA ended the quarter $776.4 $793.4 $600.0 $66
Slide 15: Rob Wildeboer, Executive Chairman
ROB WILDEBOER EXECUTIVE CHAIRMAN www.martinrea.com | 15
Slide 16: Questions?
QUESTIONS? www.martinrea.com | 16
Slide 17: Appendix
APPENDIX www.martinrea.com | 17
Slide 18: Results - Sales
Q1 2022 RESULTS - SALES $1,200 $1,155.0 $997.2 • Sales up 15.8% year-over-year $1,000 – Production sales up 19.3% Sales ($ Millions) +15.8% YoY $800 $600 – Tooling sales down 28.0% $400 • Positive impact from $200 – Favourable mix – i.e., recovery of light vehicle programs $0 that were disproportion
Slide 19: Results - Adjusted Operating Income Margin
Q1 2022 RESULTS - ADJUSTED OPERATING INCOME MARGIN 6.0% • Adjusted Operating Income Margin declined 110bps year-over- 4.9% year, reflecting: Adjusted Operating Income 3.8% – Cost inflation in materials, labour, energy and other inputs 4.0% – Short-term production disruption Margin (%) – Certain othe
Slide 20: Results – Adjusted Net Earnings Per Share
Q1 2022 RESULTS – ADJUSTED NET EARNINGS PER SHARE $0.50 • Adjusted EPS of $0.31 was down 24.4% year- Adjusted Earnings Per Share $0.41 $0.40 over-year, driven mainly by the factors impacting $0.30 $0.31 margins described earlier, and a net foreign exchange loss of $0.3 million for Q1 2022 ($) $0.20
Slide 21: Results - Free Cash Flow
Q1 2022 RESULTS - FREE CASH FLOW $0 • Free Cash Flow declined year-over-year, due largely to an increase in non-cash working capital Free Cash Flow ($ Millions) ($10) ($20) • Timing of working capital flows can be lumpy between ($30) quarters ($40) ($38.7) • Seasonality is also a factor as it relate
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