Commercial Vehicle : Q1 2024 Earnings Conference Call

Earnings Presentation

James Ray - President & Chief Executive Officer	Q1 2024
Andy Cheung - Executive Vice President & Chief Financial Officer	May 7, 2024

Forward Looking Statements and Non-GAAP Financial Measures

These slides contain forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe", "anticipate", "plan", "expect", "intend", "will", "should", "could", "would", "project", "targets" "forecast"

"continue", "likely", and similar expressions. In particular, this document may contain forward-looking statements about the

Company's expectations for future periods with respect to its plans to improve financial results, the future of the Company's end markets, changes in the Class 8 and Class 5-7 North America truck build rates, performance of the global construction equipment business, the Company's prospects in the wire harness, industrial automation and electric vehicle markets, the Company's initiatives to address customer needs, organic growth, the Company's strategic plans and plans to focus on certain segments, competition faced by the Company, volatility in and disruption to the global economic environment, including inflation and labor shortages and the Company's financial position or other financial information. These statements are based

on certain assumptions that the Company has made in light of its experience as well as its perspective on historical trends,

current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including those included in the Company's filings with the SEC. There can be no assurance that statements made in this document relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.

See slide 13 for use of non-GAAP financial measures.

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Q1 2024 Highlights

Q1 FINANCIAL HIGHLIGHTS

Q1 HIGHLIGHTS

REVENUE	ADJUSTED EBITDA
$232	$12.7
MILLION	MILLION

MOROCCO EXPANSION

ON TRACK

• Construction of second facility in Morocco to support new wins in Electrical Systems remains on schedule

NEW BUSINESS WINS

~$45 MILLION

• 2024 program wins, estimated peak annual value when fully ramped, majority in Electrical System segment; with meaningful wins in Vehicle Solutions

ADJUSTED	ADJUSTED EPS
OPERATING INCOME	$0.13
$8.5
PER DILUTED SHARE
MILLION

RESTRUCTURING

• Focused actions across business segments launched in 4Q23, executed during 1Q24

REITERATING GUIDANCE

• Reaffirming Revenue

and Adjusted EBITDA ranges for fiscal 2024

Note: US GAAP net income was $2.9M for Q1 2024. GAAP diluted income per share was $0.09	3
for Q1 2024.

Focus on Execution and Operational Excellence

Organizational Efficiency Improvements

• Restructuring actions to reduce cost and align resources to support growth product lines
• Continued investment in new, low-cost facilities to support new business wins
• Capacity consolidation to maximize ROIC

Operational Excellence

• Ongoing cost-out program focused on productivity, materials and conversion costs
• Customer satisfaction is a priority, increased focus on quality and customer delivery
• Strengthening and optimizing order to delivery operations processes

Customer Engagement

• Collaboration across business segments to cultivate strong customer relationships
• Ongoing cooperation to recover economic impact of inflationary headwinds
• New product introductions to respond to global customer needs

Improving Profitability and Enterprise-Wide Efficiency, Underpinning our 2024 Outlook

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Modular UNITY Seat Expansion

• Recent wins across the globe with Unity

1. Standardization of core seat design across regions and markets

1. Truck market wins in N.A. and Europe and APAC

• 1. Construction market wins in APAC and N.A.
• Market driven features improving customer satisfaction
• 1. Powered seat tilt

1. Powered lever recline

1. Decreased free play

• 1. Performance above market requirements
• Safety compliance across all regions and strategic market segments

Strengthening core Vehicle Solutions through customer focus, solutions and technology	5

First Quarter 2024 Results

CONSOLIDATED RESULTS

Commentary

GAAP Measures

($ in millions except for share information)

Revenue

Operating Income

Operating Income Margin

Diluted EPS

NON-GAAP Measures

($ in millions except for share information)

Adjusted EBITDA

Adjusted EBITDA Margin

Adjusted Diluted EPS

Free Cash Flow

Three Months

Ended Mar 31

2024 2023

$ 232.1	$ 262.7

6.6 14.6

2.8% 5.6%

0.09 0.26

Three Months

Ended Mar 31

2024	2023
$ 12.7	$ 19.8
5.5%	7.5%

0.13 0.28

(7.4) (3.3)

• Revenue down 12% in Q1driven by a softening in customer demand globally, the wind down of certain programs and declines in Aftermarket and Industrial Automation
• Adjusted EBITDA down $7.1 million, driven primarily by lower volumes and inflationary impacts, partially offset by lower SG&A
• Executed focused restructuring actions to address the lower demand environment
• Adjusted EPS down $0.15 driven by lower revenue and margins, partially offset by reduced interest expense
• Strong balance sheet, with net leverage at 1.8x

All values are in millions of dollars, except margin percentages, EPS, and Net Debt / Adj. EBITDA ratios

Electrical Systems

Sales and Adjusted Operating Income	Commentary

	Q1	•	Revenue growth of 2% in the quarter driven primarily by pricing
	Revenue ($mm)
	• Softening in global construction and agriculture end markets
	+2%	•	Q1 adjusted OI declined $3.0 million, driven by the impact of labor
54.7		55.8	inflation and FX headwinds
			• Ongoing customer pricing discussions to offset headwinds
Q1'23		Q1'24	• Restructuring efforts completed early March

Adjusted OI ($mm)

• New business wins continued at a strong pace in the quarter

• Construction continuing at our second Moroccan facility with scheduled

	(3.0)	completion Q4 2024
6.1
		3.1
Q1'23		Q1'24

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Vehicle Solutions

Sales and Adjusted Operating Income

Q1

Revenue ($mm)

Commentary

• Q1 revenue declined 14% due to lower customer demand and wind- down of certain programs

-14%	• Q1 adjusted OI decline of $2.6 million driven by lower volumes
160.6	• Focus on strengthening the core Vehicle Solutions business
	137.9	Restructuring to address headcount and facility consolidation
	o
	o	Winning new programs
Q1'23	Q1'24

Adjusted OI ($mm)

	(2.6)
13.5
	10.9
Q1'23	Q1'24

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Aftermarket & Accessories

Sales and Adjusted Operating Income

Q1

Revenue ($mm)

	-9%
37.6
	34.1
Q1'23	Q1'24

Adjusted OI ($mm)

	(1.0)
5.6
	4.6
Q1'23	Q1'24

Commentary

• Q1 revenue declined 9% against a strong Q1'23 as customers manage inventory levels; strong sequential growth of 9% versus
  Q4'23
• Q1 adjusted OI margin decline of $1.0 million; sequential improvement versus Q4'23 of $1.2 million
• Focus is on improving delivery performance and lead time to drive customer demand

Seating	Mirrors	Wipers

Industrial Automation

Sales and Adjusted Operating Income

Q1

Revenue ($mm)

	-56%
9.7
	4.3
Q1'23	Q1'24

Adjusted OI ($mm)

(0.2)
	(1.9)
	(1.7)
Q1'23	Q1'24

Commentary

• Q1 revenue down 56% as customer demand declined
• Focused on generating new orders
• Q1 adjusted OI down $1.7 million driven by lower sales volumes and higher investment in SG&A supporting New Products
• Strong interest in STACC following Modex trade show in March, assessing partnership opportunities to speed launch

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