Meritor, Inc.

Good day, and thank you for standing by. Welcome to the Meritor Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker, Todd Chirillo. Senior Director of Investor Relations. Please go ahead.

Thank you, Shannon. Good morning, everyone, and welcome to Meritor's fourth quarter and full fiscal year 2021 earnings call. On the call today, we have Chris Villavarayan, CEO and President, and Carl Anderson, Senior Vice President and Chief Financial Officer. The slides accompanying today's call are available at Meritor.com. We'll refer to the slides in our discussion this morning. The content of this conference call, which we're recording, is the property of Meritor, Inc. It's protected by U.S. and international copyright law and may not be rebroadcast without the express written consent of Meritor. We consider your continued participation to be your consent to our recording. Our discussion may contain forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Let me now refer you to slide two for more complete disclosure of the risks that could affect our results. To the extent we refer to any non-GAAP measures in our call, you'll find the reconciliation of GAAP in the slides on our website. Now, I'll turn the call over to Chris.

Good morning. Thank you for joining the call today to discuss Meritor's fourth quarter and full year 2021 results. Once again, we delivered solid financial performance. We achieved our full-year outlook for adjusted EBITDA margin and exceeded adjusted diluted EPS guidance by 23 cents, while simultaneously expanding our reach into electrification. We accomplished this during significant supply chain disruption and labor issues in the United States. I want to thank the Meritor team and supply partners for working closely with our customers to optimize production and delivery. As shown on slide three, we had good conversion on higher revenue as global demand snapped back. Extraordinarily high input costs obviously impacted our margin for the quarter and the year, but all things considered, we're extremely pleased with the result. Let's turn to slide four. While the circumstances were demanding, we remained intently focused on safety, quality, and delivery. We ended the year with strong metrics that give us a path to achieve our M2022 goals. With 50% of our facilities having zero recordable incidents in the year, I commend these teams for the work they did to maintain a safe working culture in a challenging environment. Our excellent quality for the year resulted in customer PPM of 23. Four of our facilities and three of our joint venture operations received the Daimler Masters of Quality Award, which recognizes outstanding suppliers with scores for quality, delivery, technology, and cost performance. We're proud to say that including this year, we have earned 55 Masters of Quality Awards from Daimler over the years. We believe this level of quality differentiates us in the industry, as does our delivery rate of 96% this year. While not as high as a typical year where we consistently run 99%, we view this as an accomplishment considering the prolonged supply and labor disruption the industry is experiencing. As the commercial vehicle industry advances towards electric vehicles, We view every prototype agreement, collaboration, and partnership as an important opportunity. Each one is a validation of our technology solution that could lead to a production contract as customers finalize their market strategies and architecture choices. Every quarter this year, we announce new agreements to expand our customer base for electrification. This quarter is no exception. Please turn to slide five. First, Exos is an electric mobility company that designs and manufactures medium and heavy-duty commercial trucks that travel on last-mile, back-to-base routes of less than 200 miles per day. Under a prototype agreement, Exos will evaluate and test Meritor's e-powertrain with the intention of taking it to production in future platforms. We also have a new collaboration with Electra commercial vehicles. Meritor will work with Electra to bring electrified commercial vehicles to Europe's city centers. Integrating Meritor's electric powertrain into an IVECO-based road sweeper application will allow Electra to replace its remote drive conversion solution and test a more efficient and compact electric powertrain. With Meritor's technical architecture, electric can maximize the space for batteries, which will allow the vehicles to sweep more road surface in a single shift. Finally, we're proud to be a part of the U.S. Department of Energy Super Truck 3 program in collaboration with PACCAR. The goal of this program is to develop zero-emission medium and heavy-duty trucks. Let's go to slide 6. for a look at the significant number of diverse electrification agreements we have announced in fiscal 2021. From production awards to prototypes, medium duty to heavy, we're growing through new and existing customer relationships. In 2020, we announced the PACCAR and Volkswagen electrification production program. This fiscal year, as compared to fiscal 2020, We've more than tripled the value of new EV wins and further diversified our customer base. We're also growing our opportunities in the medium-duty application space. Here, we historically have not had large share. We have now booked electrification business of almost a half a billion dollars. On slide seven, we wanted to recap the important activity in our core business during the year. We extended contracts with Navistar and Iveco and secured new business with industrial and truck customers in India and the United States. We're on track to exceed our M2022 new business wind target by approximately $100 million. Keep in mind, we expect the sustained growth of our core business to fund the growth of our electrification business as the customer base and product portfolio continues to grow. I will now turn it over to Carl for the financial details.