Garrett Motion Inc.

Good morning, everyone, and welcome to the Q4 and full year 2023 Garrett Motion Earnings 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 and then one using a touchtone telephone. To withdraw your questions, you may press star and two. Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Eric Burge, Head of Investor Relations. Please go ahead.

Thank you, Jamie. Good morning and welcome, everyone. Thank you for attending the Garrett Motion Fourth Quarter and Full Year Results Conference Call. Before we begin, I would like to mention that today's presentation and earnings release are available on the IR section of Garrett Motion website at investors.garrettmotion.com. There you will also find links to our SEC filings along with other important information about our company. Turning to slide two, we note that the presentation contains forward-looking statements within the meanings of the Securities and Exchange Act. We encourage you to read the risks contained within our filings and with the Securities and Exchange Commission. Become aware of these risks and uncertainties in our business and understand that forward-looking statements are only estimates of future performance and should be taken as such. The forward-looking statements represent management's expectations only as of today and the company disclaims any obligation to update them. Today's presentation also includes non-GAAP measures to describe how we manage and operate our business. We reconcile each of these measures to the most directly comparable GAAP measure and you're encouraged to examine these reconciliations in the appendix to the press release and the slide presentation. Also in today's presentation and comments, we may refer to light vehicle diesel and light vehicle gasoline product by using the terms diesel and gasoline only. With us on today's call is Olivier Riviere, Garrett's President and Chief Executive Officer, and Sean Deason, Garrett's Senior Vice President and Chief Financial Officer. I will now hand the call over to Olivier.

Thanks, Eric, and thanks everyone for joining Garrett's fourth quarter and full year earnings conference call. I will begin today's remarks on slide three. I am very pleased to report today that Garrett delivered a great performance in 2023, achieving full year results above midpoint guidance across all financial metrics with record net sales of $3.9 billion and record adjusted EBITDA of $635 million. Our full-year adjusted free cash flow came in at a very robust $422 million at the conversion rate of 66% on full-year adjusted EBITDA. Our first quarter financials contributed to the full-year results with net sales of $945 million, up 5% from the same period last year, and adjusted EBITDA of $145 million today. and adjusted free cash flow of $137 million. I would like to thank the entire Garrett team for their contributions and dedication to our customers and operational excellence, which continues to enable us to perform in all economic cycles. Once again, our very strong cash flow generation in 2023 has allowed us to execute a thoughtful approach to capital allocation priorities. We simplified our capital structure to welcome new equity holders, strengthen our liquidity position and flexibility, and return value to our shareholders through our share repurchase program. In 2023, we repurchased $213 million of common stock in addition to the preserved stock redemptions, while investing more than half of our RD&E into zero-emission technologies. We also meaningfully delivered by paying down $200 million of our term loan to bring our net leverage ratio under 2.2 times and finish the year with $829 million of liquidity. Garrett's continued exceptional financial performance and cash flow generation allows us to take a similar approach to capital allocation for 2024. I am pleased to announce that our board has authorized a new $350 million share repurchase program. From a macro perspective, we are anticipating the global industry to be flattish, with light vehicle production expected to be flat to down and commercial vehicle production expected to be flat to up. With these expectations, we have once again proactively implemented productivity and efficiency actions to achieve and sustain our financial performance through a flat-to-down economic cycle in 2024. This year, we will continue to increase our investment in zero-emission technologies, supported by increasing momentum across all verticals for our differentiated technologies. We also expect to see close to $20 million revenue from our industry-leading high-efficiency fuel cell compressor when, at the same time, we are continuing to see increasing demand for our turbo technologies. Turning now to slide four. As I just mentioned, the increasing momentum across all product verticals allows us to continue to strengthen our leadership position in turbo offerings and further develop our differentiated zero-emissions technology. Our turbo business once again achieved more than 50% win rate, and we won a series of production awards in several hybrid and alternative fuel applications. In light vehicles, we won two additional high-volume electric compressor applications, and within commercial vehicles, we successfully launched our hydrogen ice application, or H2 ice, with JCB for off-highway equipment. Our H2 Ice applications are gaining heightened attention from our commercial vehicle customer as they progress towards their decarbonization targets. This trend towards zero-emission technology continues to drive increased interest and demand for our fuel cell compressor, e-powertrain, and e-cooling compressors. We have the broadest range of fuel cell compressors in the industry, and we achieved an additional series production award in Q4. We have also added another pre-development award for breakthrough high-speed and high-power density e-powertrain. And finally, we added three more pre-development awards for our game-changing centrifugal e-cooling compressor. These achievements are proof that our zero-emission technologies address the evolving needs of our customers as they develop new generations of electrified vehicles. Consistent with our last investor day presentation, we see still significant runaway ahead as we progress towards our target of $1 billion of annual sales of zero-emission products by 2030. I will now turn the call to Sean to provide more insight into our financial results and outlook for 2024.