Delivering POWER Deutsche Bank Global AUTO Industry Conference January 11, 2017 |
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Forward Looking Statements
Some of the information presented in this document and
discussions that follow, including, without limitation,
statements with respect to the proposed acquisition of
Metaldyne Performance Group, Inc ("MPG") and the anticipated
consequences and benefits of the acquisition, the targeted
close date for the acquisition, product development, market
trends, price, expected growth and earnings, cash flow
generation, costs and cost synergies, portfolio
diversification, economic trends, outlook and all other
information relating to matters that are not historical
facts may constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of
1995. There can be no assurance that actual results will not
differ materially. Factors that could cause actual results
to differ materially include, without limitation: the
receipt and timing of necessary regulatory approvals; the
ability to finance the acquisition; the ability to
successfully operate and integrate MPG's operations and
realize estimated synergies; reduced purchases of our
products by General Motors Company (GM), FCA US LLC (FCA),
or other customers; reduced demand for our customers'
products (particularly light trucks and sport utility
vehicles (SUVs) produced by GM and FCA); our ability to
develop and produce new products that reflect market demand;
lower-than-anticipated market acceptance of new or existing
products; our ability to respond to changes in technology,
increased competition or pricing pressures; our ability to
attract new customers and programs for new products; our
ability to achieve the level of cost reductions required to
sustain global cost competitiveness; supply shortages or
price increases in raw materials, utilities or other
operating supplies for us or our customers as a result of
natural disasters or otherwise; liabilities arising from
warranty claims, product recall or field actions, product
liability and legal proceedings to which we are or may
become a party, or the impact of product recall or field
actions on our customers; our ability or our customers' and
suppliers' ability to successfully launch new product
programs on a timely basis; our ability to realize the
expected revenues from our new and incremental business
backlog; risks inherent in our international operations
(including adverse changes in political stability, taxes and
other law changes, potential disruptions of production and
supply, tariff and trade restrictions and currency rate
fluctuations, including those resulting from the United
Kingdom's vote to exit the European Union and the change in
the presidential administration in the United States);
negative or unexpected tax consequences; our ability to
consummate and integrate acquisitions and joint ventures;
global economic conditions; our ability to maintain
satisfactory labor relations and avoid work stoppages; our
suppliers', our customers' and their suppliers' ability to
maintain satisfactory labor relations and avoid work
stoppages; price volatility in, or reduced availability of,
fuel; our ability to protect our intellectual property and
successfully defend against assertions made against us; our
ability to successfully maintain the security of, and
integrate MPG's, information technology networks and
systems; our ability to attract and retain key associates;
availability of financing for working capital, capital
expenditures, research and development (RandD) or other
general corporate purposes including acquisitions, as well
as our ability to comply with financial covenants; our
customers' and suppliers' availability of financing for
working capital, capital expenditures, RandD or other
general corporate purposes; changes in liabilities arising
from pension and other postretirement benefit obligations;
risks of noncompliance with environmental laws and
regulations or risks of environmental issues that could
result in unforeseen costs at our facilities; adverse
changes in laws,
government regulations or market conditions affecting our
products or our customers' products (such as the Corporate
Average Fuel Economy (CAFE) regulations); our ability or our
customers' and suppliers' ability to comply with the
Dodd-Frank Act and other regulatory requirements and the
potential costs of such compliance; and the other factors
detailed from time to time in the reports we file with the
Securities and Exchange Commission ("SEC"), including those
described under "Risk Factors" in our 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. Information with respect to MPG,
including non-GAAP information is taken or derived from
MPG's public filings and management estimates and we take no
responsibility for the accuracy or completeness of such
information. It should be noted that this presentation
contains certain financial measures, including Adjusted
EBITDA and Adjusted free cash flow, 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 starting on slide 33 under "Reconciliation of
Non-GAAP Measures".
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Other Information Important Information for Stockholders and Investors This presentation is provided for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell shares of AAM or MPG. In connection with the proposed acquisition of MPG, AAM has filed with the SEC a Registration Statement on Form S-4 (the "Registration Statement"), which includes the preliminary joint proxy statement/prospectus of AAM and MPG and which also constitutes a preliminary prospectus of AAM. The information in the preliminary joint proxy statement/prospectus is not complete and may be changed. The definitive joint proxy statement/prospectus will be mailed to stockholders of AAM and MPG after the Registration Statement is declared effective by the SEC. Investors are urged to read the Registration Statement and joint proxy statement/prospectus (including any amendments or supplements thereto) and other documents filed by AAM and MPG with the SEC in connection with the proposed acquisition, as these documents contain (or will contain) important information. Those documents, as well as AAM's and MPG's other public filings with the SEC, may be obtained without charge at the SEC's website at www.sec.gov. Investors may also obtain a free copy of the Registration Statement and joint proxy statement/prospectus and the filings with the SEC that are incorporated by reference in the Registration Statement and joint proxy statement/prospectus by directing a request to AAM at www.aam.com. Participants in Solicitation AAM, MPG and their respective directors, executive officers and other members of their management and employees may be deemed to be participants in a solicitation of proxies from their respective stockholders in connection with the proposed transaction. Information regarding AAM's directors and executive officers is available in AAM's proxy statement for its 2016 annual meeting of stockholders, which was filed with the SEC on March 24, 2016. Information regarding MPG's directors and executive officers is available in MPG's proxy statement for its 2016 annual meeting of stockholders, which was filed with the SEC on April 11, 2016. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the Registration Statement and joint proxy statement/prospectus (or will be contained in any amendments or supplements thereto) and other relevant materials filed with the SEC. These documents can be obtained free of charge from the sources indicated above. |
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Agenda 2016 AAM Highlights 2017 AAM Targets AAM's 2017 - 2019 New Business Backlog Technology Leadership Acquisition of MPG Agenda 4 |
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2016 AAM Highlights AAM Financial Records Improved Net Leverage Net Sales = $3.95B Adjusted EBITDA* Over $600M Strong Cash Flow Generation Net Debt* /Adj. EBITDA = 1.5x EW BUSINESS AWARDS for 2016 SUCCESSFUL LAUNCHES IN 2016 * For definitions of terms, please see the attached appendix. 5 |
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2016 AAM Financial Estimates 2016 Estimates Net Sales = $3.95B Adjusted EBITDA* margin = 15.5% - 15.75% Adjusted Free Cash Flow* = $190M - $200M Record sales and profit in 2016 Adjusted free cash flow includes the impact of = $30 million of payments related to Mexican transfer pricing matters and a $20 million customer collection related to an upcoming capacity increase requirement. * For definitions of terms, please see the attached appendix. Adjusted EBITDA and Adjusted Free Cash Flow exclude the impact of special charges and expenses for restructuring and acquisition related activities. 6 |
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2017 AAM Financial Targets 2017 Targets US SAAR = 17.5M units Net Sales = $4.1B - $4.2B Adjusted EBITDA* Margin = 15.5% - 16.0% Adjusted Free Cash Flow* = $175M - $200M Capital Expenditures = 6.5% - 7% of sales Adjusted EBITDA margin and Adjusted free cash flow targets include the expected benefits from restructuring actions and exclude the impact of special charges and expenses for restructuring and acquisition related activities. Increased capital expenditures in 2017 will support our new and incremental business backlog, including a capacity increase program, as well as future replacement program launches. * For definitions of terms, please see the attached appendix. Adjusted EBITDA and Adjusted Free Cash Flow exclude the impact of special charges and expenses for restructuring and acquisition related activities. 7 |
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AAM's New and Incremental Business Backlog $875 MILLION: 2017-2019 Presented on a gross basis as of January 11, 2017 Backlog by Vehicle Segment [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] Backlog by Global Market [CATEGORY NAME] 24% [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] Approximately 60% relates to Non-GM business 8 |
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Backlog and Impact of GM's Sourcing Decision $375 $250 ($175) $250 ($275) $425 2017 2018 2019 2017-2019 Dollars in Millions AAM's gross new business backlog Estimated sales impact to AAM of GM's Next-Gen full-size truck sourcing New business backlog, net of GM sourcing impact, for 2017 - 2019 New business awards exceed the impact of GM's sourcing decision through the backlog period Note: The estimated timing impact of GM's sourcing decision does not contemplate any potential future capacity increases or program extensions; the chart above does not include an additional estimated sales impact in 2020. 9 |
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US SAAR and NA Production Assumptions 17.5 17.4 17.6 18.0 2017E 17.5 17.6 18.0 18.1 2018E 17.5 17.5 18.4 19.0 2019E AAM US SAAR Projections I.H.S. US SAAR I.H.S NA LV Productions Q4 PwC Autofacts NA LV Production AAM assumes US SAAR to be approximately 17.5 million units over the next three years I.H.S / PwC Autofacts estimate an increase in North American production due to growing exports AAM also assumes a moderate recovery in the commercial vehicle and industrial markets during this time period. IHS forecast as of January 6, 2017 10 |
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North America Light Vehicle Production Mix 2010 57% 43% 2015 60% 40% 2020 64% 36% Trucks/SUV/CUV/Vans Passenger Car Continued strength in pickup trucks/SUVs and increasing demand for crossover vehicles is favorable for AAM IHS Forecasts as of January 6, 2017 11 |
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TECHNOLOGY LEADERSHIP 12 |
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Technology Leadership GREEN and EFFICIENT LIGHTWEIGHT AND EFFICIENT QUANTUM(TM) lightweight axles and drive units New component manufacturing processes Advanced materials Lube flow improvements Power density SAFETY and PERFORMANCE AWD TECHNOLOGIES EcoTrac(R) disconnecting AWD system e-AAMTM electric driveline solutions DRIVESHAFTS SylentTM driveshaft technologies and NVH system integration Tunable crash features CONNECTIVITY and ELECTRIFICATION MECHATRONICS and VEHICLE CONTROLS Hybrid and full electric drivelines Actuators and sensors Electronic LSD front- drive axles Integrated wheel torque distribution controls Fully integrated vehicle controls Aligned with global automotive trends 13 |
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Powertrain Projections Millions Global 100 80 60 40 20 0 ICE 106M 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Millions North America 15 10 5 0 ICE 18M 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Millions Greater China 35 30 25 20 15 10 5 0 ICE 32M 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Millions Europe 25 20 15 10 5 0 ICE 22M 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Electric Hybrid-Mild Hybrid-Full ICE For at least the next decade, the internal combustion engine (ICE) is expected to be the main source of power for vehicles IHS Production Forecasts as of January 6, 2017 14 |
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EcoTrac(R) Disconnecting AWD Systems EcoTrac(R) - utilizes electronics and connectivity to improve Fuel Economy, Safety, and Performance KEY ATTRIBUTES Advanced mechatronics (motors, actuators and sensors) integrated within mechanical technology Disconnects at the power transfer unit (PTU), causing the driveshaft to stop spinning Automatically engages when it senses AWD traction requirement Benefits: Improved vehicle fuel economy without sacrifice in AWD functionality Improved vehicle handling and safety Our Gen II design, which begins production in 2018, will reduce the parasitic loss associated with traditional AWD system by up to 90% EcoTrac(R) Disconnecting PTU 15 |
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EcoTrac(R) Sales Growth 54% CAGR from 2013 to 2019! $55M $265M =$475M =$700M 2013 2015 2017 2019 Featured on three global programs by 2018 16 |
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e-AAM(TM) Hybrid and Electric Drivelines e-AAM(TM)- AAM is well positioned to benefit from the global trend of electrification KEY ATTRIBUTES Power dense design allows for easy integration for multiple vehicle platforms Modular solutions for passenger cars / CUVs Torque vectoring provides maximum traction and ride control Benefits: Improves fuel efficiency up to 30% and reduces CO2 emissions Improved vehicle performance and drive quality Improved handling and stability An e-AAM program included in our new business backlog will launch in 2018 17 |
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QUANTUM(TM) Technology QUANTUM(TM)- All-new, completely redesigned family of lightweight axles and drive units KEY ATTRIBUTES Industry first technology along with a revolutionary design Significant mass reduction (up to 35%) In combination, additional efficiency and weight reduction can deliver 1% to 1.5% improved vehicle fuel economy Scalable across multiple applications-- without loss of performance or power Streamlined manufacturing process for key driveline components. QUANTUMTM Rear Axle 18 |
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Delivering Power AAM'S ACQUISITION OF MPG (Metaldyne Performance Group) Increased Global Scale (light vertical) Expanded Product Portfolio (light vertical) Accelerated Diversification (light vertical) Enhanced Cash Flow Generation |
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Compelling Strategic Acquisition Creates a Global leader in powertrain, drivetrain and driveline Diversified global customer base and end markets Complementary technologies focused on light-weighting, fuel efficiency, vehicle safety and performance solutions Stronger financial profile through greater size, scale and enhanced cash flow generation Powerful Industrial logic and significant synergies Driving growth and long-term value for all key stakeholders 20 |
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Significantly Enhanced Scale and Profitability Scale (Net Sales $mm*) $3,903 $3,047 $6,854 PRO FORMA Profit (Adj. EBITDA Margin*) 14.6% 17.3% 16.0% PRO FORMA Cash Generation (Free Cash Flow $mm*) $189 $108 $297 PRO FORMA Significant increase in total served market Content on 90% of light vehicles produced in North America and on all of the top 10 North American platforms Including successful execution of our cost reduction synergy plan - potential to generate over $400 million in annual free cash flow Greater capital resources creates long-term value for stakeholders *Based on 2015 Actuals - Pro forma sales are reduced by $96 million for the elimination of 2015 MPG sales to AAM; for definitions of terms, please see the attached appendix 21 |
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Comprehensive Solutions from Engine to Driveline Rear and front axles Rear drive modules Power transfer units Driveshafts Transfer cases Electric drive units Ring / pinion gears Axle / transmission shafts Differential gears Transmission gears Axle carriers Differential cases Control arms Turbo charger housings Brackets Suspension components Transmission modules Differential assemblies Aluminum valve bodies Vibration control systems Connecting rods VVT products The integration of our product portfolios and technologies provides exciting opportunities to increase content-per-vehicle 22 |
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Expanded Product Portfolio Additional powertrain, forging and casting products build on AAM's legacy driveline strength Expands AAM's reach into commercial vehicle and industrial equipment markets AAM's reliance on GM's full-size truck and SUV segment is significantly reduced AAM 2015 External Sales by Product Forged Products 5% Engines and Transmissions 8% Axles and Driveshafts - Other 38% Axles and Driveshafts - K2XX 49% Pro forma 2015 External Sales by Product Axles and Driveshafts - K2XX 28% Axles and Driveshafts - Other 21% Forged Products 18% Castings 13% Engines and Transmissions 20% 23 |
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Accelerated Customer Diversification AAM 2015 Sales by Customer GM 66% Ford 1% FCA 20% Other Global Top 15 OEM's 5% Other 8% Pro forma 2015 Sales by Customer GM 41% Ford 8% FCA 15% Other Global Top 15 OEM's 7% Other 29% Pro forma 2020E Sales by Customer GM 32% Ford 16% FCA 14% Other Global Top 15 OEM's 12% Other 26% 24 |
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Integration Management Office (IMO) Steering Committee David C. Dauch - AAM Chairman and CEO George Thanopoulos - MPG CEO Mike Simonte - AAM President Doug Grimm - MPG President and COO IMO Leadership Tim Bowes - AAM Senior Vice President, Strategy and Business Development Paul Suber - MPG Vice President, Business Development and Manufacturing Excellence Master Planning Baseline and Value Capture Organization, Culture and Talent Communications Successful Integration Similar in Culture and Core Competencies Achievable Integration and Synergy Attainment Plan Complementary Products, Customer Relationships and Geographic Footprint Experienced and Skilled Implementation Team 25 |
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Anticipated Synergies Sources of Cost Savings Targeted Annual Profit Impact Overhead Optimize operating structure Elimination of redundant public company costs = $45 - $50 million Purchasing Combine global purchasing to leverage larger scale Direct and indirect material opportunities Insourcing initiatives = $45 - $50 million Other Cost Savings Manufacturing initiatives Plant loading optimization / facility rationalization = $10 - $20 million Total Targeted Annual Improvement = $100 - $120 million Timing and Cost to Achieve Targeting 70% of expected annual run rate savings by the end of the first full year and 100% in the second full year We estimate the costs required to achieve our synergy plan are approximately equal to one year of savings 26 |
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Combined Pro Forma Financial Targets Pro Forma Targets 2017 - 2019 Sales CAGR* Targeting a range of 3% to 5% during the period 2017 - 2019 including the impact of launching over $1 billion of gross new and incremental business backlog Adj. EBITDA* margin Targeting a range of 17% to 18% of sales by 2018 including the achievement of $100 to $120 million in cost reduction synergies Adj. Free Cash Flow* Targeting a range of 5% to 7% of sales through 2019 Capital Expenditures (Cap Ex) Targeting (almost equal) 8% of sales in 2017, reducing to 6% of sales by 2019 *For definitions of terms, please see the attached appendix 27 |
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Expected Pro Forma EBITDA vs. Cash Payments Targeting Adjusted EBITDA well above projected cash requirements Variable cost structure allows for flexibility during periods of lower volumes Positioned to be cash breakeven in a 25% - 30% downturn scenario Revenue Growth and Synergy Realization Adjusted EBITDA* 2016E 2017E 2018E 2019E Targeting 17% to 18% Adj. EBITDA Margin Adj. EBITDA in Excess of Cap Ex, Interest, and Tax Payments Estimated Cap Ex, Interest and Tax Payments *For definitions of terms, please see the attached appendix 28 |
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Pro Forma Debt Paydown Pro Forma Net Debt* and Net Leverage Ratio*(1) Liquidity(3) Debt Maturities(4) Net Debt and Leverage Ratio 3.5x 3.0x 2.5x 2.0x At Close 2017E 2018E 2019E = $1B > $1B > $1B > $1B Minimal Minimal Minimal 5.125% $200mm Note Due 2/15/19 7.750% $200mm Note Due 11/15/19 Minimal in 2020 Note: Future performance reflects company estimates; (1) We expect to close in the first half of 2017 - this chart assumes 3/31/17 close; (2) Reflects 2016E Adjusted EBITDA, excluding synergies, pro forma for the acquisition of Brillion by MPG; (3) Reflects combined revolver availability and cash balance; (4) AAM expects minimal amortization and foreign debt payments *For definitions of terms, please see the attached appendix 29 |
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Enhanced Credit Profile Increased size and scale Customer and product diversification Enhanced geographic footprint Served market and content per vehicle expansion Strong profit and free cash flow margins Identifiable cost synergies of (almost equal)$100 - 120 million Extended debt maturity profile Strong liquidity position Stronger Financial Profile and Enhanced Cash Flow Generation 30 |
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Powerful Industrial Logic Cap-ex Avoidance / Capacity Optimization Logistical and Value Stream Efficiencies Cross-selling Opportunities Engineering and Manufacturing Collaborations Margin Capture through Vertical Integration Productivity and Cost Reductions Balanced Tax Strategies Working Capital Improvements Numerous value creation opportunities beyond synergies 31 |
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APPENDIX 32 |
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Reconciliation of Non-GAAP Measures In addition to the results reported in accordance with accounting principles generally accepted in the United States of America (GAAP) included within this presentation, we have provided certain information, which includes non-GAAP financial measures. Such information is reconciled to its closest GAAP measure in accordance with Securities and Exchange Commission rules and is included in the following slides. Certain of the forward-looking financial measures included in this presentation are provided on a non-GAAP basis. A reconciliation of 2017 non-GAAP targets and pro forma forward-looking financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP is not practical given the difficulty of projecting event driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant. 33 |
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Reconciliation of Non-GAAP Measures Full Year 2016 Estimates Adjusted EBITDA Margin Low End High End ($ in millions, except percentages) Net income $232 $240 Income tax expense 60 62 Interest expense 93 93 Depreciation and amortization 202 202 Full year 2016 estimated EBITDA $587 $597 Special charges and expenses for restructuring and acquisition related activities 25 25 Full year 2016 estimated Adjusted EBITDA $612 $622 Full year 2016 estimated sales $3,950 $3,950 Ful l year 2016 estimated Adjusted EBITDA margin 15.50 % 15.75 % Adjusted Free Cash Flow Low End High End ($ in millions) Net cash provided by operating activities $405 $410 Less: Purchases of property, plant and equipment, net of proceeds from sale of property, plant and equipment and government grants (225) (220) Full year 2016 estimated free cash flow $180 $190 Add back: Cash payments for restructuring and acquisition related activities 10 10 Full year 2016 estimated Adjusted free cash flow $190 $200 The foregoing forward-looking information is based on estimates, including those for special charges, expenses and payments related to restructuring and acquisition related activities and other possible adjustments to EBITDA and free cash flow. There can be no assurance that actual results will not differ materially from those presented above. 34 |
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Reconciliation of Non-GAAP Measures 2015 Full Year Earnings before Interest, Income Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA Reconciliation Schedule ($ in millions) AAM MPG COMBINED Net income attributable to shareholders, as reported $235.6 $125.3 $360.9 Interest expense 99.2 107.5 206.7 Income tax expense 37.1 48.1 85.2 Depreciation and amortization 198.4 229.8 428.2 EBITDA, as defined $570.3 $510.7 $1,081.0 Add: Special charges and non-recurring items 0.8 16.7 17.5 Adjusted EBITDA $571.1 $527.4 $1,098.5 as % of net sales 14.6 % 17.3 % 16.0 % 35 |
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Reconciliation of Non-GAAP Measures 2015 Full Year Free Cash Flow ($ in millions) AAM MPG COMBINED Net cash provided by operating activities $377.6 $330.0 707.6 Less: Purchases of property, plant and equipment, net of proceeds from sale of property, plant and equipment and from government grants (188.1) (222.3) (410.4) Free cash flow $189.5 $107.7 $297.2 36 |
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Reconciliation of Non-GAAP Measures We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA excludes the impact of special charges and expenses for restructuring and acquisition related activities. We believe EBITDA and Adjusted EBITDA are meaningful measures of performance as they are commonly utilized by management and investors to analyze operating performance and entity valuation. Our management, the investment community and banking institutions routinely use EBITDA and Adjusted EBITDA, together with other measures, to measure our operating performance relative to other Tier 1 automotive suppliers. EBITDA and Adjusted EBITDA should not be construed as income from operations, net income or cash flow from operating activities as determined under GAAP. Other companies may calculate EBITDA and Adjusted EBITDA differently. We define free cash flow to be net cash provided by operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment and government grants. Adjusted free cash flow excludes the impact of cash payments for restructuring and acquisition related activities. We believe free cash flow and Adjusted free cash flow are meaningful measures as it is commonly utilized by management and investors to assess our ability to generate cash flow from business operations to repay debt and return capital to our stockholders. Free cash flow is also a key metric used in our calculation of incentive compensation. Other companies may calculate free cash flow and adjusted free cash flow differently. We define net debt to be total debt, net less cash and cash equivalents. We define net leverage ratio to be net debt divided by Adjusted EBITDA. We believe that net leverage ratio is a meaningful measure of financial condition as it is commonly used by management, investors and creditors to assess capital structure risk. Other companies may calculate net leverage ratio differently. We define US SAAR as the seasonally adjusted annual rate of light vehicle sales in the United States We define CAGR to be the compound annual growth rate of sales. 37 |
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