Slides
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RESULTS PRESENTATION 4Q24
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EARNINGS RELEASE 4Q24 02 The meeting is being recorded. To access the simultaneous translation, click on the “Interpretation” button. Questions can be made in two ways: via audio, through the “Raise your hand” icon, or In writing through the “Q&A” button. Any statements that may be made during this videoconference, relating to the business prospects, projections and operating/financial goals of the Company, express beliefs and assumptions of Fras-le's Management, as well as information currently available to the Company. Forward-looking statements are not guarantees of performance and involve risks, uncertainties and assumptions, as they refer to future events and, therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions and other operating factors may affect the Company's future results, and may lead to results that differ materially from those expressed in such forward-looking statements. I M P O R T A N T INFORMATION
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03 ANDERSON PONTALTI COO FRASLE MOBILITY HEMERSON DE SOUZA IR BUSINESS AND M&A DIRECTOR OF FRASLE MOBILITY GUEST ESTEBAN ANGELETTI IR AND FINANCE DIRECTOR RANDONCORP SÉRGIO L. CARVALHO PRESIDENT AND CEO FRASLE MOBILITY AND CEO RANDONCORP MARIANA GUIMARÃES IR MANAGER FRASLE MOBILITY EARNINGS RELEASE 4Q24 W E L C O M E ! P A R T I C I P A N T S I N O U R 4 Q 2 4 C O N F E R E N C E C A L L :
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04 The Universe Frasle Mobility 2024 took place in a hybrid format on December 4th, bringing together investors and capital market analysts in Caxias do Sul/RS. The fifth edition aimed to bring investors closer to the company's business strategies, innovation, ESG, and long-term planning. In December, the manufacturing plant in Caxias do Sul/RS inaugurated the Caldeira Verde. The project involves replacing the use of natural gas with biomass for steam generation, which is necessary for the pressing process of brake pads and linings. This initiative is responsible for reducing the operation's greenhouse gas emissions, representing a 60% reduction in its own emissions. Our brands stood out in the awards, achieving first place as the most purchased and remembered brand. Brake Pad – Fras-le Steering bar, Direction terminal and Suspension Pivot – Nakata Brake Disc – Fremax Master Cylinder and Vacuum Booster - Controil BRANDS AWARD OFICINA/CINAU SUSTAINABLE BOILER Q U A R T E R E V E N T S FRASLE MOBILITY UNIVERSE EARNINGS RELEASE 4Q24 INVESTOR DAY
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05 H I G H L I G H T S NET REVENUE R$ 3.7 – 4.0 B Guidance FOREIGN MARKET US$ 250 – 290 M Guidance ADJUSTED EBITDA MARGIN 17% - 21% Guidance INVESTMENTS R$ 130 – 170 M Guidance 2024 R$ 4.0 B US$ 289.7 M 18.4% R$ 165.8 M +17.0% vs. 2023 +17.7% vs. 2023 -1.2 p.p. vs. 2023 +24.0% vs. 2023 EARNINGS RELEASE 4Q24
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06 REVENUES • Launch of new lines - Frasle Mobility in Mexico • Access to new distribution channels and customers COSTS • Improved operational efficiency in factories • Consolidate sourcing of finished products • Consolidate raw material sourcing • Operations, costs and logistics.. ESTIMATED SYNERGIES 5 YEARS INCREMENTAL EBITDA ADDED ~R$ 300 million MAIN FIGURES SALES IN DOMESTIC MARKET 90% LIGHT LINE EMPLOYEES 1,975 89% ADJUSTED EBITDA R$ 313 M MXN 1.06 BI 100% IAM ~21% EBITDA MARGIN ADJUSTED R$ 1.4 BI NET REVENUE MXN 4.8 BI D A C O M S A OUR RECENT ACQUISITION IN MEXICO EARNINGS RELEASE 4Q24 Independent Aftermarket Manufacturer FUNDING ~$2.2 BILLION PAID FOR THE ACQUISITION: ✓ ~ R$ 450MM PAID FROM OWN RESOURCES; ✓ ~ R$ 750MM RAISED PER DEBENTURE; ✓ ~ R$ 1 BILLION RAISED BY DACOMSA (LOAN AGREEMENT). DATA FOR THE YEAR 2023
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07 FOREIGN MARKET (US$)NET REVENUE + 103.9% Revenue by market 4Q24 + 49.4% + 6.9% + 17.0% + 7.5% + 17.7% N E T R E V E N U E R$ MILLION EARNINGS RELEASE 4Q24 555.5 499.4 587.8 647.8 668.6 2156.5 2403.6 185.8 341.9 392.5 388.7 439.2 1232.2 1562.2 741.3 841.3 980.3 1036.5 1107.8 3388.7 3965.8 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024 Domestic Market Foreign Market 25% 41% 40% 38% 40% 75% 59% 60% 62% 60% 36% 39% 64% 61% 37.0 69.0 75.2 70.1 75.3 246.1 289.7 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024
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S E G M E N T S A N D P R O D U C T S 4Q24 38% 62% FRICTION L I G H T C O M M E R C I A L 90% 10% L I G H T C O M M E R C I A L BRAKE SYSTEM 97% 3% SUSPENSION, STEERING AND POWERTRAIN L I G H T C O M M E R C I A L 87% 13% OTHER L I G H T C O M M E R C I A L 08 Revenue by segment 4Q24 EARNINGS RELEASE 4Q24 32%68%
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09 O P E R A T I O N A L P E R F O R M A N C E R$ MILLION CAUSAL ADJUSTED EBITDA +107.3 M -3.4 M EARNINGS RELEASE 4Q24 113.1 220.4 217.0 366.5 2.0-157.5 -57.4 -18.3 -26.0 -2.4 -3.0 E B I T D A 4 Q 2 3 N e t O p e r a t i n g R e v e n u e s C O G S ( e x d e p r e c i a t i o n ) S e l l i n g E x p e n s e s G e n e r a l & A d m i n i s t r a t i v e E x p e n s e s O t h e r I n c o m e / E x p e n s e s E B I T D A 4 Q 2 4 B u s i n e s s c o m b i n a t i o n u p d a t e A s s e t i m p a i r m e n t F a n a c i f R e s t r u c t u r i n g E B I T D A 4 Q 2 4 A d j u s t e d Adjusted EBITDA Changes in the Argentine economic scenario and their inflationary effects, detailed in our Modeling Guide. 13.2% 18.3% 16.6% 18.9% 19.6% 15.3% 18.3% 11.5% 18.4% 19.9% 4Q23 1Q24 2Q24 3Q24 4Q24 EBITDA Margin - Adjusted EBITDA Margin
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10 F I N A N C I A L P E R F O R M A N C E R$ MILLION OPERATING CASH FLOW WORKING CAPITALCAPEX EARNINGS RELEASE 4Q24 677.9 24.1 (165.8) (168.6) (74.0) 293.6 EBITD A 9M 24 Inve stme nt s Fi na nci a l R e sul t Income a nd Soci a l Ta x e s W orki ng C a p. Va ri a ti on Ope ra ti ng C a sh Fl ow 9M 24 Operating Cash Flow
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11 NET DEBT/EBITDA 0X 0X 0X 0X 0X 11 NET INCOME N E T I N C O M E A N D N E T D E B T R$ MILLION EARNINGS RELEASE 4Q24 % NET MARGIN + 43.8% + 51.8% - 3.6% EFFECTIVE TAX RATE 26.54%* * Without the effects of Fanacif's restructuring and the Law on the Taxation of Subsidies NET DEBT/EBITDA
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12 O U T L O O K EARNINGS RELEASE 4Q24 > Solid demand in the domestic aftermarket; > International freight is improving,but still with challenges; > Capacity increases: completion of the power substation at the Fremax site (+25% capacity) and expansion of the product range at Controil (+450 new PNs by 2026); > Dacomsa Integration Plan launched with great local commitment and very positive prospects.
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13 Q & A Por áudio Demonstrando o interesse através do ícone “Levantar a mão” ou *9 se estiver conectado via telefone. By audio Showing interest by using the “Raise hand” icon or *9 if connected via telephone. Por escrito As perguntas podem ser enviadas por escrito através do botão “Q&A” In writing Questions can be submitted in writing via the “Q&A” button. EARNINGS RELEASE 4Q24
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APPENDICES 4Q24
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16 C A P I T A L M A R K E T R$ MILLION EARNINGS RELEASE 4Q24