Nexteer Automotive Group Limited

Ladies and gentlemen, welcome to next year Automotive Group Limited 2025 Annual Results Conference Call. All participants will be in a listen-only mode. Should you need assistance by pressing the star key followed by zero. After today's presentation, questions, to ask a question you may press star and then one on your telephone keypads, press star and two. I would now like to turn the conference call over to Investor Relations Director, Mr. Tony Wang. Please go ahead.

Okay. Thank you, Jamie. Again, welcome everyone to our earning call for the announcement of our annual results this evening, Hong Kong time. Before we begin today's call, I would like to remind you that the presentation contains a safe harbor statement. For additional information, please refer to the content in the second page of our slides. The presentation accompanying today's call are available on our company's website. Please visit nextyear.com to download slides if you have not done yet. Joining us today are Robin Milovic, Executive Board Director, President, CTO, and Interim Global COO. Mike Beierlein, Senior Vice President and CFO. Starting the presentation, Robin and Mike highlights respectively, and then we will open the lines for your questions. Please follow the limit. Let me turn the call over to our President, Robin.

Everybody online today. I'll begin with an overview of our business performance, strategic progress, and then I'll hand it over to Mike Bierlein, our Chief Financial Officer, and he will walk and 2026 outlook. So, starting with a high-level overview of our full-year business highlights. This reflects five milestones demonstrating next year's focus on long-term profitable growth. First, revenue reached nearly $4.6 billion, increasing 7.2% compared to 2024. And as a result, we achieved record revenue for a third consecutive year. Above-market growth driven by new and conquest business wins. We successfully launched 57 customer programs, reflecting our deepening engagement with both global and Chinese OEMs. Third is new business bookings. We achieved customer program bookings totaling $4.9 billion, including new with two leading Chinese NEV OEMs. The business development on Steer by Wire is execution by our team in 2025. Fourth mission. APEC revenue reached a record of approximately $1.5 billion. This represents a 9.8% increase year-over-year, making the fourth consecutive year of record revenue in this region. This milestone highlights a remarkable organic growth trajectory with revenue surging from about $1 billion to $1 billion in less than three years. In 2025, next year, China and next year, each achieved record revenue, reflecting continued growth and strong regional execution. Finally, enhancing shareholder returns. We are glad to announce that the Board of Directors has approved a $46 million dividend for the approval of the shareholders in the upcoming Annual Shareholders Meeting. This dividend amount and represents a total of 45% payout ratio of the 2025 net profit to equity holders, which is an increase from 35% we had in 2024. These milestones collectively demonstrate next year's ability to grow above market while maintaining financial discipline. As I mentioned earlier, we successfully launched 57 customer programs across multiple product lines regions, customers, and vehicle segments. Four of these were new or conquest wins, and 36 were for electric vehicle platforms, demonstrating how new bookings convert into revenue. Today, rather than walking through a detailed list, this slide simply highlights a selection of major program launches that illustrate our new bookings wins that are translating into tangible growth. First, we achieved the initial launch of our modular column EPS or MCEPS in the EMEA SA region. While next year's MCEPS was first introduced in China, leveraging our industry-leading EPS building blocks, this successful EMEA SA launch further enhances our competitiveness and our regional footprint. Second, we delivered the first dual-pinning EPS program launch with the leading Chinese OEM. Following the inaugural dual-pinning APS launch in EMEA SA, we have secured additional orders from multiple Chinese domestic OEMs and other European OEMs over the past year. The customer demand for this product is strong, driven by the need for cost-effective, speed-to-market solutions combined with Nexair's proven steering reliability and performance. At the same time, despite the emergence of dual-pinning APS, we have built a very solid and growing RAC EPS business foundation in China. Next-year technologies have been adopted across numerous mainstream including Xiaomi, Xiaopeng, Li Auto, and others. Overall, the strong launch momentum across gear-based EPS platforms, including our single pinion, dual pinion, and RAC EPS products, continue to reinstate leadership, particularly in the China market. Out of the 57 were in APAC, supporting both Chinese and global customers. Strategic targeting and capitalizing on the region's growth opportunities. Reflects increasing diversity across products, across customers and regions, to our long-term success. Looking ahead, we are particularly excited about two product launches beginning in 2026. We secured 4.9 billion in customer program bookings in 2025 across products, regions, and customers. These wins include several breakthrough awards and important firsts. underscoring our leadership in advanced steering technologies. Steer-by-wire program with two leading Chinese new energy vehicle OEMs. And these cover both the hand-wheel actuator as well as the road-wheel actuator applications. Further reinforce next year's leadership in next generation motion-by-wire technologies. Let me expand a little bit more on these two customers. So building on our first Steer-by-Wire win with the leading Chinese OEM in the second half of 2024, we successfully secured a second award with this customer. This follow-on win demonstrates growing customer confidence and an expanded across the OEM's upcoming vehicle platforms. And this first Steer-by-Wire booking with another leading Chinese OEM including, again, both the hand-wheel actuator and road-wheel actuator applications. This program is expected to launch next year, reflecting a short lead time from a business award to production and strong capabilities. Beyond steer-by-wire, we continue to expand our dual-pinion and rear-wheel steering business across the EMEA S8. deepening relationships with existing Chinese OEMs while also securing a new European-based OEM. These wins highlight not only the scalability of the technology, but also our ability to deliver a cost-effective, lightweight rear wheel steering that enables up to a 12 degrees of rear wheel steering turning angle and supporting a We also earned our first column assist EPS win with a market-leading OEM in India. This marks an important milestone for next year in one of the world's fastest-growing automotive markets. This win demonstrates our ability to localize proven global electric power and compete effectively on cost, quality, and reliability in a highly value-focused market. earned the first high output column assist EPS win with the leading Chinese OEM. This represents an important expansion of our column EPS portfolio into higher performance and load efficacy. This win highlights our ability to extend column EPS technology beyond the traditional output range to meet more demanding vehicle requirements. We continue to capture the global expansion of Chinese OEM and South America by leveraging our strong China relationships and global footprint. scalable steering solutions across regions. Importantly, this trend winds into incremental global revenue opportunities. And lastly, we successfully conquested a new power column business for full size truck platform in North America. strengthening our leadership position in this region as well. Looking at bookings, over 75% of next year's bookings were in our EPS product line and nearly half or 45% of our bookings were secured in the APAC region. Overall, this diversified portfolio indicates our technology is becoming the product of choice by many domestic and global OEMs. On the next slide, This highlights that customer diversification remains a core growth pillar for next year. We partner selectively with OEMs that align with the long-term industry megatrends, including electrification, autonomy, and connectivity. And today, we serve more than 60 OEMs globally. Over the last year, we've expanded our customer base by winning programs across a broad range of customer models, from leading domestic OEMs in China to the market leader in India, to premium EV manufacturers in North America, as well as an emerging autonomous mobility company. Importantly, these wins span a wide mix of technologies, including our rack EPS, column EPS, dual pinion, rear wheel steering, driveline, and columns and intermediate steering shafts. This demonstrates our ability to deploy the full next-year performance capture growth from established volume leaders, while also participating in the emergence of new mobility players, which are reshaping the industry. While every competitive situation is different, our success consistently comes down to a few core strengths. We bring world class product and process technology, quality and reliability performance as measured by our customers remain strong and continues to improve. We listen carefully to understand what each customer truly values, and as the tier one in our space with experience as a global OEM in our early history, we understand how critical speed, agility, and mindset are in responding to those needs. Flawless execution from development through launch remains a defining differentiator. Capabilities underpinning scale and grow profitably across a diverse and evolving customer base. We also continue to make disciplined progress in expanding our manufacturing and technical footprint across Asia Pacific to support long-term growth and localization. APEC steering production and validation has expanded in the past five years. we opened our state-of-the-art Changshu manufacturing and testing facility in China, strengthening our ability to support the growing demand from Chinese OEMs while aligning with Chinese focus on high and sustainable manufacturing. That expansion is complemented by our Asia Pacific Technical Center in Suzhou, which brings comprehensive engineering, validation, and corporate functions together in faster development cycles and closer proximity to our customers. Center near Bengaluru with additional physical validation capabilities in that region. Looking into 2026, we've opened our first manufacturing facility in Rayong, Thailand, which has begun production with an initial focus on columnist to support growing demand across Southeast Asia. And finally, we broke ground in both Uyojo and Suzhou, further expanding capabilities, including EPS and steer-by-wire. Together, these initiatives reflect our disciplined approach to scaling capabilities and supporting customers across the region. On this next slide, I'd like to update the status of one of our most important motion by wire products, which is electromechanical braking, or EMB. Next year publicly debuted EMB at the 2025 Shanghai Auto Show. We leveraged our technology building blocks to create a modular, high-precision braking system to strategically expand into motion by wire chassis control. One year ago, a second round of winter vehicle tests were completed in Yakushi, China, the period between December of 2025 and March of this year. In this event, we had more than 17 OEM customers that were engaged and had given very positive feedback on the vehicle performance through the on-site test driving and technical review. Meanwhile, our customers were surprised by the rapid pace of our EMB product development progress. Right now, we're developing highly automated production line to accelerate our industrialization process, and we also will continue to optimize the function, performance, and durability of the EMB product. We're looking to secure our first business booking of EMB with a Chinese OEM in the course of this year. This next slide highlights how we are capitalizing on motion by wire and motion IQ to enable intelligent motion in the vehicle. First, we're integrating smart chassis technologies, including steer by wire, rear wheel steering, and brake by wire with electric powertrain architectures. This system level integration allows us to deliver precise, coordinated motion control across the vehicle while supporting OEM's efforts to simplify platforms and scale advanced architectures. Second, we're embedding software-defined vehicle and AI capabilities directly into motion control. Through MotionIQ, we combine proven safety-critical algorithms with flexible software tools, enabling OEMs to develop, tune, and update motion functions more quickly while retaining control differentiation. And third, these capabilities support autonomous vehicle applications, including robotaxis and ADAS level three plus. Our motion by wire hardware and software foundation enables the redundancy, the precision, and the control required for higher levels of automation. Now I'll hand it over to Mike Bierlein for the financial review.