Strategic Rationale - Sona Comstar aims to increase focus on eastern world markets through a JV with JNT to enter the Chinese market[9, 11] - The JV aims to become a key supplier of driveline systems in China by combining the strengths of both companies and leveraging confirmed customer orders[9, 22] - Sona Comstar will hold a controlling 60% stake in the JV, while JNT will take over operational responsibilities[9, 26] Market Opportunity - The China EV market is the largest and fastest-growing EV market globally, with 113 million units sold in 2024, representing 66% of the global EV market share[9, 14, 15] - China's EV market is expected to have an 11% CAGR till 2030[15] - Chinese brands dominated 76% of global EV sales in 2024[15] JV Partner - JNT Strengths - JNT has a strong technology orientation with high-end complex casting and molding production, holding 63 patents and 36 proprietary technologies[18, 19] - JNT has a global customer base across various mobility segments, including automotive, off-highway vehicles, and railway, supplying to both Chinese and global OEMs[20, 21] - JNT is recognized as a National-level specialized and innovative "Little Giant" in China[21] Financial Investment - Sona Comstar will invest $12 million, and JNT will invest $8 million in the JV[27] - The JV is expected to generate revenue from H2FY26 from JNT's existing customer base[24] Sona Comstar's Growth Strategy - Sona Comstar has grown 10x in the last 10 years by focusing on key strategic decisions[11] - Sona Comstar's FY25 revenue is ₹35550 million, compared to ₹3450 million in FY15[12]

Financial Data and Key Metrics Changes - AAM's Q1 2025 sales were $1.41 billion, down from $1.61 billion in Q1 2024 [20] - Adjusted EBITDA for Q1 2025 was $177.3 million, with an adjusted EBITDA margin of 12.6%, compared to $205.6 million and 12.8% in the previous year [22] - GAAP net income was $7.1 million or $0.06 per share in Q1 2025, down from $20.5 million or $0.17 per share in Q1 2024 [26] - Adjusted free cash flow was a use of $3.9 million in Q1 2025, an improvement from the prior year [26][27] Business Line Data and Key Metrics Changes - North American production decreased approximately 5% year-over-year [8] - The Metal Form business unit showed improved EBITDA margins, increasing by 150 basis points year-over-year [22] Market Data and Key Metrics Changes - AAM's sales were impacted by a lower volume mix, resulting in a decrease of $166 million primarily due to lower overall volumes in North America [21] - Foreign exchange fluctuations, particularly from a weaker Brazilian real, contributed to a sales reduction of approximately $28 million [21] Company Strategy and Development Direction - AAM exited its joint ventures in China, collecting approximately $30 million in cash, as part of a strategy to focus on core businesses and capital allocation [9] - The company is on track to close the transformational transaction with Dali by Q4 2025, which is expected to yield significant synergies of approximately $300 million [11][12] - AAM aims to enhance its EV portfolio and maintain a balanced capital allocation policy post-acquisition [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro uncertainties due to new trade policies but emphasized a strategy of local sourcing, with 90% of products produced in North America being USMCA compliant [13] - The company updated its 2025 guidance, targeting sales between $5.65 billion and $5.95 billion, with adjusted EBITDA expected to be between $665 million and $745 million [17][32] - Management expressed confidence in navigating tariff impacts and leveraging opportunities presented by onshoring trends [34] Other Important Information - AAM's net debt stood at $2.1 billion with a net leverage ratio of 2.9x as of March 31, 2025 [27] - The company maintained a strong cash position of over $500 million due to operational performance and proceeds from joint venture sales [27] Q&A Session Summary Question: Thoughts on future contingencies and utilization of excess capacity - Management indicated that they have open capacity in several facilities and are willing to make adjustments based on customer needs [40][41] Question: Tariff exposure for Dali - Management noted that Dali has a similar production footprint and is managing tariff exposure similarly to AAM [44] Question: GM's volume outlook and its impact on guidance - Management confirmed that the guidance incorporates GM's strong demand for full-size trucks, expecting production in the range of 1.3 million to 1.4 million units [47][48] Question: Impact of macro volatility on the Dali transaction - Management stated that macro volatility has not complicated the process and both companies are focused on local sourcing [50] Question: Near-term production schedules - Management acknowledged some volatility in customer schedules but noted strong performance in core platforms [56][58] Question: Tariff policies and their impact - Management confirmed that under current USMCA policies, tariff impacts are limited, and they are working to ensure compliance [64][65] Question: Long-term implications of ICE and EV market changes - Management expressed that continued ICE production is beneficial for cash flow, while EV growth will be slower than previously projected [102][104]