American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) Q1 2022 Earnings Conference Call May 6, 2022 10:00 AM ET Company Participants David Lim - Head of Investor Relations David Dauch - Chief Executive Officer Christopher May - Chief Financial Officer Conference Call Participants John Murphy - Bank of America Merrill Lynch Ryan Brinkman - JPMorgan Chase & Co. Joseph Spak - RBC Capital Markets Dan Levy - Credit Suisse Operator Good morning, everyone. My name is Jamie, and I will be your conference facilitat ...

Financial Data and Key Metrics Changes - AAM's Q4 2021 sales were $1.24 billion, while full-year sales were approximately $5.2 billion, reflecting a recovery from the pandemic despite supply chain challenges [7][22] - Adjusted EBITDA for Q4 2021 was $164.6 million (13.3% of sales), and for the full year, it was $833.3 million (16.2% of sales) [7][23] - Adjusted EPS for Q4 2021 was a loss of $0.09, while for the full year, it was $0.93, compared to $0.14 in 2020 [8][27] - AAM generated record adjusted free cash flow of $423 million for the full year 2021, up from $311 million in 2020 [8][28] - The company reduced gross debt by approximately $350 million, improving leverage [8][29] Business Line Data and Key Metrics Changes - AAM secured multiple next-generation full-size truck axle programs with lifetime sales valued at over $10 billion, indicating strong core business performance [10] - The company reported significant progress in electrification, with 35% of the new business backlog related to electrification, up from 15% the previous year [16] Market Data and Key Metrics Changes - AAM's sales were negatively impacted by semiconductor shortages, which exceeded $600 million in 2021 [7][22] - The North American production forecast for 2022 is approximately 14.8 to 15.2 million units, representing a 14% to 17% increase over the previous year [17] Company Strategy and Development Direction - AAM is pivoting towards electrification while securing its core business, focusing on cash flow generation to support future technologies [6][10] - The company plans to launch multiple electric propulsion components with several global OEMs in 2022 [12][13] - AAM's three-year new business backlog is expected to be approximately $700 million, with a launch cadence of $175 million in 2022 [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by supply chain disruptions but expressed confidence in the company's ability to manage these issues and deliver strong financial results [6][7] - The outlook for 2022 includes targeted sales of $5.6 billion to $5.9 billion and adjusted EBITDA of approximately $800 million to $875 million [17][31] - Management emphasized the importance of a strong ESG foundation and commitment to sustainability initiatives [14] Other Important Information - AAM was recognized as one of America's best large employers and received multiple awards for its performance and innovation in electric driveline technology [9][14] - The company completed the transfer of nearly $100 million of pension obligations to an insurance company, further strengthening its balance sheet [26] Q&A Session Summary Question: North American volume assumptions - Management indicated that the forecast is based on a bottom-up approach focusing on key platforms, with a conservative outlook considering semiconductor challenges [38][39] Question: Backlog composition for electrification - Management noted that while specific year-by-year breakdowns are not disclosed, the backlog is expected to grow significantly in electrification as the market transitions [40][41] Question: Free cash flow yield concerns - Management expressed confidence in the sustainability of cash flow generation and acknowledged that investor concerns are primarily related to the balance sheet and the transition to electrification [44][46] Question: GM production impact - Management stated that revenue guidance is aligned with macro-level estimates, and they are optimistic about supporting GM's full-size truck platform [49][50] Question: Inflation impact and mitigation strategies - Management highlighted operational productivity improvements and automation as key strategies to mitigate inflationary pressures [56][57] Question: Backlog details and electrification mix - Management confirmed that the backlog includes a healthy mix of electrification components and traditional products, with significant opportunities in both areas [64][68]

Financial Performance & Metrics - AAM's Q3 2021 adjusted EBITDA was $183.2 million [54], representing 15.1% of net sales [54] - For the nine months ended September 30, 2021, AAM's adjusted EBITDA reached $668.7 million [54], which is 17.1% of net sales [54] - AAM's adjusted earnings per share for Q3 2021 was $0.15 [58], and for the nine months ended September 30, 2021, it was $1.01 [58] - AAM generated $69.1 million in adjusted free cash flow in Q3 2021 [61], and $379.3 million for the nine months ended September 30, 2021 [61] Business Highlights & Electrification - AAM secured an agreement with REE to supply high-performance electric drive units [20] - AAM won PACE Partnership and Innovation Awards for Electric Drive Technology [20] - AAM is positioned to support all OEM sourcing strategies in electrification, with content per vehicle (CPV) opportunity up to $500 for subsystems and up to $2,500+ for vehicle integration & controls [35] - AAM's next-generation electric drive units support numerous vehicle applications, optimizing capital and development costs [43] Sustainability & Governance - AAM published a comprehensive sustainability report in 2021 based on SASB, GRI, and TCFD standards [29] - AAM is focused on key sustainability areas including environmental (energy and emissions reduction, water use reduction, industrial materials recycling), social (associate health, safety, wellness, talent development, community partnerships), and governance (ethical practices, supplier compliance) [31, 32]

American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) Q3 2021 Earnings Conference Call November 5, 2021 10:00 AM ET Company Participants David Lim – Head-Investor Relations David Dauch – Chairman and Chief Executive Officer Chris May – Vice President and Chief Financial Officer Conference Call Participants John Murphy – Bank of America Dan Levy – Credit Suisse Joseph Spak – RBC Brian Johnson – Barclays Operator Good morning, everyone. My name is Jamie, and I will be your conference facilitator today. At t ...

American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) Q2 2021 Earnings Conference Call July 30, 2021 10:00 AM ET Company Participants David Lim - Head of IR David Dauch - Chairman and CEO Mike Simonte - President Chris May - VP and CFO Conference Call Participants Aileen Smith - Bank of America Rod Lache - Wolfe Research Ryan Brinkman - JPMorgan Dan Levy - Credit Suisse Brian Johnson - Barclays Adam Jonas - Morgan Stanley Itay Michaeli - Citi Emmanuel Rosner - Deutsche Bank Operator Good morning, everyone ...