American Axle & Manufacturing : AAM November 2023 Investor Presentation

November 2023 Investor Presentation

Forward-Looking Statements

In this presentation, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance.

Such statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and relate to trends and events that may affect our future financial position and operating results. The terms such as "will," "may," "could," "would," "plan," "believe," "expect," "anticipate," "intend," "project," "target," and similar words or expressions, as well as statements in future tense, are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate

indications of the times at, or by, which such performance or results will be achieved. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include factors detailed in the reports we file with the SEC, including those described under "Risk Factors" in our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. These forward-looking statements speak only as of the date of this communication. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

It should also be noted that this information contains certain financial measures, including Adjusted EBITDA, Adjusted Earnings per Share, Adjusted Free Cash Flow, Net Leverage Ratio and Liquidity that are not required by, or presented in accordance with, accounting principles generally accepted in the United States, or GAAP. These measures are presented here to provide additional useful measurements to review our operations, provide transparency to investors and enable period-to-period comparability of financial performance. A description of non-GAAP financial measures that we use to evaluate our operations and financial performance, and reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, can be found in the appendix under "Reconciliation of Non-GAAP Measures."

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AAM Overview

AAM - Quick Facts

Global-leader in design, engineering and manufacturing of automotive propulsion

systems and technologies to support electric, hybrid and ICE vehicles

$5.8B 2022 Revenue

~19,000 Employees

18 Countries

Over 80 Locations

14 Global Engineering and Tech Centers

DRIVELINE

• One of the leaders in hybrid and electric driveline solutions
• A Global Leader in
• • Full-sizePickup Truck and SUV Driveline Systems
  • AWD Systems for Crossover Vehicles
  • Damped Gears, Viscous Dampers and Rubber Isolation Pulleys
• Pioneer of Disconnecting AWD Systems

METAL FORMING

• Strong position in electrified propulsion components
• Leading automotive forger in the world
• A Global Leader in
• • Forged Gears & Shafts
  • CVT Pulleys
  • Powdered Metal Connecting Rods
  • Aluminum Valve Bodies
  • Machined Helical Gears
  • Differential Assemblies

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3Q 2023 AAM Financial Highlights

$1.55B	$157M	$136M
Quarterly	Third Quarter	Adjusted Free
Sales	Adjusted EBITDA	Cash Flow

AAM Delivered Solid Adjusted Free Cash Flow

* For definitions of Adjusted EBITDA and Adjusted Free Cash Flow and non-GAAP reconciliations, please see the attached appendix.	5

Performance Overview

Quarter Status

3Q Year To Date Issues	Status Update	1-3Q23 4Q23	1Q24	2Q24
•	Customer Production	• Situation is improving from prior years.
	Volatility	• Managing costs as disruptions occur.
•	UAW Work Stoppage	• Monitor the situation and restart of operations.
•	Economic Recoveries	• Continue discussions with OEMs to offset inflation costs.
•	Operational Challenges	• Turnaround actively led by COO / President.
	➢ Labor Availability	• Dispatched additional operating teams to plants and suppliers.
	➢ Output (scrap)	• Labor availability challenges (including impact to maintenance)
	➢ Capacity Utilization	being addressed through active recruiting, necessary changes
	➢ Supply Chain	to compensation, and increased automation where feasible.

• Enhanced process improvements.
• Focus on improved plant loading.

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Business Update

ELECTRIC Van		ELECTRIC Truck		JETOUR (Chery)		FAW Plug-In Hybrid
Skywell Auto		AAM to supply e-Beam		AAM to provide power		AAM to supply
awarded AAM to		axles for a future 2.5T		transfer units (PTU)		independent front
supply 2-in-1e-Beam		light electric truck		and rear drive modules		axles for multiple
axles for a future van		program launching		(RDM) for multiple		plug-in hybrid vehicle
program starting in		in 2025.		AWD SUV programs		models beginning
late 2024.				beginning in 2024.		in 2025.

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2023 Financial Outlook (as of November 3, 2023)

2023 Financial Targets

Full Year Sales	$6.0 to $6.1 billion
Adjusted EBITDA	$660 to $685 million
Adjusted Free Cash Flow	$200 to $215 million

• These targets are based on AAM's production estimates of key programs that we support and the current operating environment.
• Adjusted Free Cash Flow target assumes capital spending in the range of 3.0% - 3.5% of sales.
• These targets assume production begins to resume during the first week of November from the UAW work stoppage and an estimated work stoppage impact of $70 - $100 million in sales and $25 - $40 million in adjusted EBITDA.
• AAM expects restructuring and acquisition-related cash payments to be between $20 and $30 million.

Note: For definitions of Adjusted EBITDA and Adjusted Free Cash Flow and Non-GAAP reconciliations, please see the attached appendix

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Debt Maturity Profile

AAM has a healthy debt maturity profile with minimal long-term maturities until 2026.

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2022 Sustainability Report

Report Highlights

• New sustainability report was published in April 2023
• Achieved an A- on the CDP Climate Change survey
• Achieved Silver Status on the EcoVadis Sustainability Assessment
• Achieved SBTi validation of GHG Emissions goals
• Named one of America's Best Large Employers by Forbes
• Improved on all Safety Performance metrics
• Completed a sustainability materiality assessment
• Launched 17 major global product programs
• Hired our first Executive of Diversity, Equity and Inclusion

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