Nexteer Automotive Group Limited

Ladies and gentlemen, welcome to Next Year Automotive Group Limited 2026 Interim Results Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star then 2. I would now like to turn the conference over to Investor Relations Director, Mr. Tony Wong. Please go ahead.

Thank you, Betsy. Welcome everyone to our 2026 Interim Earnings Call. We made the announcement of our interim results this evening, Hong Kong time. Before we begin today's call, I would like to remind you that this presentation contains a safe harbor statement. For additional information, please refer to the content on the second page. 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 Milavec, Executive Board Director, President, and Chief Operating Officer. Mike Bierlein, Senior Vice President and CFO. Starting the presentation, Robin and Mike will provide business and financial highlights respectively. Then we will open the line for your questions. With that, let me turn the call over to our President, Robin.

Thank you, Tony. Good morning, good afternoon, and good evening, everyone. And thank you for joining our 2026 Interim Results Announcement. The first half was another period of strong progress for next year. Despite a market environment characterized by geopolitical uncertainty, a lot of evolving trade dynamics, shifting customer production schedules, and I would say continued volatility within the global automotive industry in general, we delivered record first half revenue, improved profitability, strong free cash flow generation, and continued above market growth. We also secured significant new business awards, providing additional confidence in our future growth trajectory. These results reflect the disciplined execution of our global team, the strength of our customer relationships, and the continued competitiveness of our product and technology portfolio. Over the last several years, we have focused on transitioning next year into a stronger, more resilient company. and we're seeing the benefits of those efforts through improving margins, stronger cash generation, and sustained revenue growth. Equally important, we continue to advance our long-term strategic priorities. We achieved significant milestones in the commercialization of Steer by Wire, expanded our Motion by Wire portfolio, delivered strong launch execution across multiple regions, and continued building momentum with both global and Chinese OEM customers. We believe these capabilities position NextEar well to capitalize on some of the most important technology trends shaping the future of mobility. While we're pleased with our first half performance, we remain realistic about the challenges that lie ahead. The industry continues to face uncertainty related to tariffs, customer product forecasts, EV market dynamics, commodity costs, and broader macroeconomic conditions. We believe our strong balance sheet, diversified customer base, our growing technology portfolio, and ongoing operational improvements position us very well to navigate these challenges and continue creating value for our shareholders. As we look to the second half of the year and beyond, our priorities remain clear. To grow above market, continue improving operational performance, accelerate commercialization of our motion by wire technologies, Invest in Digital Transformation and Automation, and Maintain a Disciplined Capital Allocation in Support of Profitable Long-Term Growth. With that, let me begin with an overview of our business performance and strategic progress, and then I'll hand it over to Mike for a detailed review of our financial results and outlook. Starting on slide four, I'd like to begin with five highlights that demonstrate next year's continued progress In delivering profitable growth, advancing our technology roadmap, and strong cash generation. First is revenue. We achieved a record first half revenue of $2.3 billion. This reflects our continued above market growth and successful conversion of new and conquest business into production revenue streams. Our growth was supported by strong global execution, particularly in EMEA SA. Second is program launches. During the first half, we successfully launched 28 customer programs with particularly strong activity in Asia Pacific. These launches included important milestones such as the first two steer-by-wire production programs, our first high output column EPS launch in China, and the first customer program launch at our new facility in Thailand. Third is bookings. We secured $3.3 billion of new business contracts in the first half, including our first RAC EPS win in Europe and another Steer by Wire award with the Chinese OEM. These bookings reinforce the strength of our product portfolio and provide a solid foundation for future growth. We are particularly pleased with the first half bookings as it shows accelerating momentum in our quest to grow the top line, And it sets us on a good trajectory to finish the year above our $6 billion booking target. Fourth is profitability. Adjusted EBITDA reached $263 million, with this first half-year profit achieving its highest level in more than six years. The results reflect disciplined operational execution, improving efficiency, and our continued focus on profitable growth. And finally, cash generation. We delivered $109 million of free cash flow during the first half. That's nearly three times the level achieved in the prior year's period. This reflects again the strength of our operating performance along with disciplined capital allocation and inventory management resulting in a strong conversion of earnings into cash. Overall, these achievements highlight next year's ability to grow above market, strengthen profitability, On slide number five, as I mentioned earlier, we successfully launched 28 customer programs during the first half across multiple product lines, customers, and vehicle segments. Importantly, 26 of these launches were associated with new or conquest business. That demonstrates our ability to convert bookings into revenue growth. Now rather than reviewing every launch individually, this slide highlights several key programs that showcase the breadth of our portfolio and the progress we're making across both traditional and next-generation motion control technologies. Most notably, 2026 marks an important milestone for our steer-by-wire commercialization. During the first half, we launched two steer-by-wire programs into production. including the Li Auto L9 in China and the Level 4 Robotaxi application in North America. These two launches represent the successful transition of our steer-by-wire strategy from business awards into launch and revenue generation, thereby validating our position as a leader in next-generation steering technology. We also achieved the first high-output column EPS launch in China with Cherry Jetour. Further expanding our EPS portfolio and strengthening our position with leading Chinese OEMs. Another important milestone was the first production launch from our Thailand manufacturing facility. This supports our strategy to enhance regional flexibility and better serve our customers across all of Asia. From a regional perspective, APAC remained the key growth engine for next year. The majority of our launches during the first half supported both Chinese and global OEMs, reinforcing our strategy of participating in the fastest growing vehicle platforms and market segments. Overall, these launches demonstrate the increasing diversity of our customer base, the strength of our product portfolio, and the ability to successfully convert new business awards into profitable revenue growth. On slide six, we'll move from launches to bookings. So let's turn to our commercial momentum in the first half of this year. So we secured $3.3 billion in new business awards during this first half, putting us well on track towards our full year objective of $6 billion. These awards reflect a healthy mix across products, customers, and regions, while continuing to strengthen our position in key growth areas. One highlight was another Steer by Wire award with the leading Chinese OEM, including both hand-wheel actuator and road-wheel actuator applications. This represents our third Chinese customer to adopt next year's full steer-by-wire system architecture and further validates growing market demand for integrated motion-by-wire technologies. We also secured our first rack-based EPS program in EMEA SA. This represents an important expansion of our premium steering portfolio with global customers. Combined with additional dual pinion EPS as well as rear wheel steering opportunities, we continue to expand the breadth of our steering solutions and strengthen our position across multiple vehicle segments. Another important achievement was winning significant truck and SUV program extensions in North America, including rack EPS, and Power Column Business that further strengthens our scale, competitiveness and long-term customer relationships in that region. We also secured a significant breakthrough with the new Chinese OEM customer through a column-based EPS award. Winning these new customer platforms remains a key priority for us and this conquest business demonstrates our ability to gain market share in a highly competitive market. Looking at the mix of bookings, 72% of awards were within our EPS steering portfolio, highlighting the continued strength of our core business. Regionally, North America represented 46% of bookings, while APAC contributed 34%. This demonstrates balanced growth across our major markets. New and conquest business represented 43% of total bookings, reflecting our ability to win new platforms, and expand our customer base. Chinese OEMs represented approximately 30% of total bookings, reinforcing our strong participation in one of the industry's fastest growing segments. As we showcased at the Beijing Auto Show earlier this year, next year's Motion by Wire portfolio now spans Steer by Wire, Rear Wheel Steering, Brake by Wire and the enabling software technologies. We're very encouraged by the increasing level of customer engagement and believe these technologies will become a growing and significant contributor to future bookings as well as revenue as adoption accelerates over the coming years. Overall, this diversified and technology-rich booking portfolio provides strong visibility into future growth and further demonstrates that NextYear remains a trusted partner for both global and Chinese OEMs. On the next slide, Steer by Wire continues to be one of the most important strategic growth opportunities for next year. And this year marks a significant milestone for our Steer by Wire strategy, as it advances from customer awards into commercial production. Over the past several years, we built a strong foundation of Steer by Wire business across North America, Europe, and APAC. Today, that foundation includes eight customers, seven secured production programs and active development projects across three regions, providing broad validation of both our technology and execution capabilities. Most importantly, we are now seeing the successful conversion of these awards into production revenue. In North America, our Level 4 Robotaxi program featuring next year's first pinning EPS dual actuator gear has successfully entered production. representing an important proof point for highly automated vehicle applications. We also continue to advance development activities with additional customers supporting future growth. In APAC, we achieved another major milestone during the first half with the launch of our first passenger vehicle steer-by-wire production program. That launch represents the world's first ASIL-D certified full steer-by-wire system in production. Demonstrating our ability to bring next-generation steering technologies from concept and development into commercial-scale manufacturing. A second customer launch remains on track for the second half of this year. And in Europe, we previously secured our first business award and are now progressing towards future program launches with a defined production plan. What's particularly encouraging is that we are seeing momentum across every stage of the steer-by-wire lifecycle. Some programs now are already in production, others are approaching launch, and several customers remain in development. This progression provides increasing confidence that steer-by-wire adoption is moving beyond early validation towards broader market deployment. As adoption expands, we believe next year is exceptionally well positioned to benefit Given our growing production experience, global customer base, and expanding portfolio of secured programs, the successful launches this year are not only an important operational achievement, but are also strong validation of our long-term motion-by-wire strategy and our leadership in next-generation steering systems. And finally, I'd highlight that we are very pleased that our high-mount, direct-drive, steer-by-wire hand-wheel actuator was recently recognized as a 2026 Automotive News Pace Pilot Award finalist. This recognition highlights next year's commitment to relentlessly advancing steer-by-wire technologies that enable greater vehicle design freedom and next-generation driver experiences while enhancing steering feel, modern airbag integration, flexible steering placement, packaging flexibility, and new driver display possibilities. On slide number eight, that same instinct to keep advancing the technology that moves our industry forward is still what guides us across all of our functions. Just as we evolved our steering technologies, we continue to evolve the way we work. As part of our broader digital transformation strategy, we're embedding AI across the enterprise to improve efficiency, increase our speed, and build more agile, scalable organizations. Within manufacturing, we're deploying next-generation digital manufacturing standards and automation that can be constantly scaled across our global operations. By combining AI, manufacturing intelligence, and advanced analytics, we're improving productivity. We're enhancing product quality, increasing operational visibility, and giving our teams greater flexibility to respond to our customers' needs. We're also creating a closed-loop digital ecosystem that connects engineering, manufacturing, quality and operations, allowing us to accelerate product launches and continuously improve our process. And we're also expanding AI-enabled planning capabilities that better connect customer demands with production scheduling and inventory management, helping us become more responsive and efficient across our global manufacturing network. This next slide highlights an important milestone for next year as we celebrate 120 years of steering innovation. Over the past century, we've continuously evolved alongside the automotive industry, progressing from mechanical steering systems to today's advanced motion control technologies. That evolution has been written in numbers. As examples, nearly 550 million steering columns have been produced by Nextsteer to date, also around 400 million hydraulic steering units, and almost 200 million electric power steering and steer-by-wire systems to date. In total, this equates to more than a billion units delivered across our steering portfolio, putting our innovation in the hands of real drivers on real roads. That same innovative spirit continues to drive our strategy today. Building on this legacy, we launched our Accelerate with Purpose initiative in January to sharpen our organizational focus, improve execution speed, and align resources behind the priorities that support long-term profitable growth. As we demonstrated through our recent Steer-by-Wire launches and strong commercial momentum, Next year is successfully translating innovation into customer adoption, production programs, and profitable growth. And our 120-year story is also more about than just what we build. It's about the communities that made it all possible. In honor of our anniversary, Next Year employees around the world came together in July for Global Service Month. Giving back to the communities that have supported us throughout our journey. Every one of our divisions far exceeded its goal of volunteer hours with employees contributing more than 3,400 hours in total to organizations and causes around the world. Those hours reflect the passion, generosity, and commitment of our teams, the same qualities that has carried us through 120 years and will carry us into the future. And now I'll hand it over to Mike for the financial update. Mike?