Superior Industries International Inc (SUP) 2022 Q4 法說會逐字稿

Hello, and welcome to the Superior Industries Fourth Quarter Full Year 2022 Earnings Study Conference Call. My name is Caroline, and I will be your coordinator for today's event. I was joined this morning by Majdi Abulaban, President and CEO; Tim Trenary, Executive Vice President and CFO; Joanne Finan, Senior Vice President, Investor Relations, Sustainability Corporate Secretary. Please note, this call is being recorded, and for the duration of the call, your lines will be on listen-only mode. (Operator Instructions)

您好，歡迎來到 Superior Industries 2022 年第四季度全年收益研究電話會議。我叫卡羅琳，我將擔任今天活動的協調員。今天早上，總裁兼首席執行官 Majdi Abulaban 加入了我的行列；執行副總裁兼首席財務官 Tim Trenary； Joanne Finan，投資者關係高級副總裁兼可持續發展公司秘書。請注意，此通話正在錄音中，在通話期間，您的線路將處於只聽模式。 （操作員說明）

I will now hand over the call to your host, Joanne Finan, to begin today's conference. Thank you.

我現在將電話轉給主持人喬安妮·菲南 (Joanne Finan)，開始今天的會議。謝謝。

Thank you. Good morning, everyone, and welcome to our fourth quarter and full year earnings call. During our call this morning, we will be referring to our earnings presentation, which, along with our earnings release, is available on the Investor Relations section of Superior's website. I'm joined on the call by Majdi Abulaban, our President and Chief Executive Officer; and Tim Trenary, our Executive Vice President and Chief Financial Officer.

謝謝。大家早上好，歡迎來到我們的第四季度和全年收益電話會議。在今天上午的電話會議中，我們將提及我們的收益報告，該報告與我們的收益報告一起可在 Superior 網站的投資者關係部分獲得。我們的總裁兼首席執行官 Majdi Abulaban 和我一起參加了電話會議；和我們的執行副總裁兼首席財務官 Tim Trenary。

Before I turn the call over to Majdi, I would like to remind everyone that any forward-looking statements contained in this presentation or commented on today are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to Slide 2 of this presentation for the full safe harbor statement and to the company's SEC filings, including the company's current annual report on Form 10-K for a more complete discussion of forward-looking statements and risk factors.

在我將電話轉給 Majdi 之前，我想提醒大家，本演示文稿中包含的或今天評論的任何前瞻性陳述均受 1995 年《私人證券訴訟改革法案》安全港條款的約束。請參閱幻燈片本演示文稿的第 2 部分提供了完整的安全港聲明和公司向美國證券交易委員會提交的文件，包括公司當前的 10-K 表格年度報告，用於更完整地討論前瞻性陳述和風險因素。

We will also be discussing various non-GAAP measures today. These non-GAAP measures exclude the impact of certain items and, therefore, are not calculated in accordance with U.S. GAAP. Reconciliations of these measures to the most directly comparable U.S. GAAP measures can be found in the appendix of this presentation.

我們今天還將討論各種非 GAAP 指標。這些非 GAAP 措施排除了某些項目的影響，因此未根據美國 GAAP 計算。可以在本演示文稿的附錄中找到這些措施與最直接可比的美國 GAAP 措施的調節。

With that, I'll turn the call over to Majdi to provide a business and portfolio update.

有了這個，我將把電話轉給 Majdi 以提供業務和投資組合更新。

Thanks, Joan, and thanks, everyone, for joining our call today to review our fourth quarter and full year results. Starting on Slide 5 with the full year highlights. During 2022, the Superior team faced unprecedented industry challenges head on, including lower volumes, inflation, capital volatility and challenging dialogues with customers related to customer recoveries. I am truly proud of the hard work of our teams and the results we have deliver. These results are the combination of our efforts in executing priorities laid out in our value creation road map, building on a solid foundation, driving operational excellence and delivering profitable growth.

謝謝瓊，也謝謝大家今天加入我們的電話會議，回顧我們的第四季度和全年業績。從幻燈片 5 開始，展示全年亮點。 2022 年，Superior 團隊直面前所未有的行業挑戰，包括銷量下降、通貨膨脹、資本波動以及與客戶就客戶恢復相關的具有挑戰性的對話。我為我們團隊的辛勤工作和取得的成果感到由衷的自豪。這些結果是我們在執行價值創造路線圖中列出的優先事項、建立堅實的基礎、推動卓越運營和實現盈利增長方面的努力的結合。

Our portfolio strategy continues to play out. Demand for our premium products has enabled us to deliver content outgrowth for the fourth year in a row. In June 2022, we delivered 8% growth in value-added sales driven by demand for favorable wheel mix and by customer recoveries. During the year, we realized 14% content growth per wheel and saw continued increase in demand for larger and premium wheels. On the profitability front, our team tackled an exceptionally challenging operating environment, successfully negotiating customer recovery and responding to cost pressures with ever increasing focus on lean and continuous improvement. Our collective efforts resulted in a strong multiyear high adjusted EBITDA of $194 million and 25% VAS margin, a significant year-on-year growth in earnings and margin expansion.

我們的投資組合戰略繼續發揮作用。對我們優質產品的需求使我們能夠連續第四年實現內容增長。 2022 年 6 月，在對有利的車輪組合的需求和客戶恢復的推動下，我們實現了 8% 的增值銷售額增長。在這一年中，我們實現了每個車輪 14% 的內容增長，並且看到對更大和優質車輪的需求持續增長。在盈利方面，我們的團隊應對了異常具有挑戰性的運營環境，成功地與客戶談判恢復並應對成本壓力，同時越來越關注精益和持續改進。我們的共同努力帶來了強勁的多年調整後 EBITDA 1.94 億美元和 25% 的 VAS 利潤率，收入和利潤率同比顯著增長。

I am also pleased with the results of our team's continued focus on cash flow through improved profitability, working capital management, and wheel in capital expenditures, we generated more than $80 million in free cash flow, improved our cash position to $213 million and reduced net debt to $434 million, a $68 million reduction versus the prior year. These improved results have strengthened our financial position, enabling us to attract $400 million in capital to refinance our term loan. The extended maturity of our term loan and the strong cash balance provides us with confidence and flexibility in the coming years as we execute our strategies and capital industry challenges.

我也很高興我們的團隊通過提高盈利能力、營運資本管理和資本支出繼續關注現金流的結果，我們產生了超過 8000 萬美元的自由現金流，將我們的現金狀況改善至 2.13 億美元，並減少了淨額債務減至 4.34 億美元，比上年減少 6800 萬美元。這些改善的結果加強了我們的財務狀況，使我們能夠吸引 4 億美元的資金來為我們的定期貸款再融資。我們定期貸款的延長期限和強勁的現金餘額為我們在未來幾年執行我們的戰略和資本行業挑戰提供了信心和靈活性。

In terms of 2023, we remain cautious about how macroeconomic factors, including higher interest rates and input costs will impact automotive industry production. While some of the industry supply chain challenges on a day, we are still seeing continued choppy and volatility. The industry is not out of the list yet. In fact, we are anticipating very little growth, if any, in our markets. Specifically, we expect a decline in market in Europe and a flat one in the U.S. Further, tackling cost inflation, especially energy through continuous improvement and negotiated permanent price adjustments will be paramount.

就 2023 年而言，我們對包括更高的利率和投入成本在內的宏觀經濟因素將如何影響汽車行業生產保持謹慎。儘管一天內行業供應鏈面臨一些挑戰，但我們仍然看到持續的波動和波動。該行業尚未被排除在外。事實上，我們預計我們的市場幾乎沒有增長（如果有的話）。具體而言，我們預計歐洲市場將下滑，而美國市場將持平。此外，通過持續改進和協商的永久價格調整來應對成本通脹，尤其是能源，將是至關重要的。

Now on to Slide 6 with the fourth quarter highlights. Despite a volatile and choppy production environment, our team's commercial and cost discipline delivered solid performance in the quarter. While industry volumes increased 11% versus the prior year, we actually grew FX adjusted value-add sales by 22%, while also driving substantial earnings growth and margin expansion. Successful negotiations with our customers for cost recoveries in the quarter, which, by the way, tend to be very choppy and for prior periods contributed to these results. Further, as I noted at the beginning of this call, we continue to leverage our innovative portfolio to drive content growth with content per wheel increased 26% versus the prior year.

現在進入幻燈片 6，了解第四季度的亮點。儘管生產環境動盪不安，但我們團隊的商業和成本紀律在本季度取得了穩健的業績。雖然行業銷量比上一年增長了 11%，但我們實際上將外匯調整後的增值銷售額增長了 22%，同時還推動了盈利的大幅增長和利潤率的擴張。與我們的客戶就本季度的成本回收進行了成功的談判，順便說一下，這往往非常不穩定，並且在前期促成了這些結果。此外，正如我在本次電話會議開始時指出的那樣，我們繼續利用我們的創新產品組合來推動內容增長，每個輪子的內容比上一年增加了 26%。

Turning on to Slide 7, which highlights industry production by region and how our differentiated portfolio of product technologies is driving content growth in the fourth quarter of 2022, while we saw a notable increases in industry production on a year-over-year basis in both North America and Europe. We outperformed in both regions. Combined, we achieved 11% growth over market in the fourth quarter and normalizing for the recoveries a 3-year CAGR of 8% growth over market.

轉到幻燈片 7，它突出顯示了按地區劃分的行業生產以及我們差異化的產品技術組合如何推動 2022 年第四季度的內容增長，同時我們看到這兩個行業的行業生產同比都有顯著增長北美和歐洲。我們在這兩個地區都表現出色。綜合來看，我們在第四季度實現了 11% 的市場增長，並使 3 年復合年增長率正常化為 8% 的市場增長。

Moving on to Slide 8 and looking further in our current operating environment. Globally, industry production has finally started to rebound for the first time in 2020, yet remains far below pre-COVID levels. We continue to face a difficult operating environment marked by headwind you notice on this slide. Most notably, elevated input costs and ongoing disruption in Europe. That said, substantial tailwinds remain, including the easing of semiconductor supply constraints, coupled with solid demand for premium wheels and the benefit of our local-for-local manufacturing footprint, which I'll touch on a bit later. We will continue our efforts to capture these long-term tailwinds in '23 to position Superior for long-term growth.

轉到幻燈片 8，進一步了解我們當前的操作環境。在全球範圍內，工業生產終於在 2020 年首次開始反彈，但仍遠低於 COVID 之前的水平。您在這張幻燈片上註意到，我們繼續面臨以逆風為標誌的艱難運營環境。最值得注意的是，歐洲的投入成本上升和持續中斷。也就是說，仍然存在巨大的順風，包括半導體供應限制的放鬆，加上對優質車輪的強勁需求以及我們本地對本地製造足蹟的好處，我稍後會談到這一點。我們將繼續努力在 23 年抓住這些長期順風，使 Superior 實現長期增長。

Moving on to Slide 9 to address progress on our multiyear value creation road map. Our team has continued to consistently execute on our strategic priorities, they are here. From an operational excellence standpoint, we continued our focus on cost discipline and continuous improvement initiatives. Further, commercial discipline has also been a key success factor for us, supporting our multiyear solid margin expansion. Beyond operational excellence, we have maintained focus on driving profitable growth. We truly believe we have the broadest portfolio in the industry, enabling us to benefit from the continued secular trends towards larger and lighter wheels or premium finishes.

轉到幻燈片 9 來解決我們多年價值創造路線圖的進展。我們的團隊繼續始終如一地執行我們的戰略重點，他們就在這裡。從卓越運營的角度來看，我們繼續關注成本紀律和持續改進計劃。此外，商業紀律也是我們成功的關鍵因素，支持我們多年穩固的利潤率擴張。除了卓越運營，我們一直專注於推動盈利增長。我們堅信我們擁有業內最廣泛的產品組合，使我們能夠從更大、更輕的車輪或優質飾面的持續長期趨勢中受益。

Further, our local -- core local manufacturing footprint is well established and remains a tailwind as major customers seek to adhere long supply chains. Due to its recent update in EU legislation, substantial duties are now imposed on wheel imports into Europe from both China and Morocco, 2 key regions where our competitors operate. In line with our local-for-local strategy, we manufacture wheels in proximity to our key customer facilities and do not face these same tariffs resulting in a competitive advantage.

此外，我們的本地 - 核心本地製造足跡已經建立，並且隨著主要客戶尋求堅持長期供應鏈而保持順風。由於最近更新了歐盟立法，現在對從中國和摩洛哥這兩個我們的競爭對手經營的主要地區進口到歐洲的車輪徵收大量關稅。根據我們的本地對本地戰略，我們在靠近我們的主要客戶設施的地方製造車輪，並且不會面臨這些相同的關稅，從而獲得競爭優勢。

Slide 10 is more selling and quantifies the progress we have achieved since we first rolled out our value creation road map back in 2019. This foundation has enabled our recent financial performance, delivering earnings growth despite a significant decline in industry production. Further, we have made the right adjustments to our business and implemented changes to the cost structure to support profitability. Against, and 18% decline in industry unit shipments since 2019, our FX-adjusted value-added sales has increased 8%. Adjusted EBITDA margin has expanded by 280 basis points and content per wheel has expanded 33%, collectively enabling us to reduce net debt by $120 million and to refinance a significant portion of our capital structure. This remarkable performance and is one of the more challenging operating environments our industry ever base gives us great confidence in Superior ability to deliver long-term profitable growth.

幻燈片 10 更暢銷，並量化了我們自 2019 年首次推出價值創造路線圖以來取得的進展。這一基礎使我們最近的財務業績得以實現，儘管工業生產大幅下滑，但仍實現了盈利增長。此外，我們對我們的業務進行了正確的調整，並對成本結構進行了調整以支持盈利能力。與 2019 年以來行業單位出貨量下降 18% 相比，我們經外匯調整後的增值銷售額增長了 8%。調整後的 EBITDA 利潤率擴大了 280 個基點，每輪內容擴大了 33%，共同使我們能夠將淨債務減少 1.2 億美元，並為我們資本結構的很大一部分進行再融資。這種卓越的表現是我們行業有史以來最具挑戰性的運營環境之一，這讓我們對實現長期盈利增長的卓越能力充滿信心。

Slide 11 highlights the culmination of our portfolio strategy since 2019, manifesting in 33% content growth for wheel. We have continued to deliver technologies that meet increasing demand for larger and lighter wheel with premium finishes. With each of these technology, technology steadily making up a larger share of our portfolio.

幻燈片 11 突出了我們自 2019 年以來的投資組合戰略的高潮，體現在 wheel 的內容增長了 33%。我們不斷提供技術，以滿足對更大更輕的優質飾面車輪日益增長的需求。有了這些技術中的每一項，技術就穩步佔據了我們產品組合的更大份額。

Slide 12 highlights how new launches have continued to reflect the continuing adoption of our technology and the growing diversity of our customer base. Over 2/3 of our launches you see on this chart in '22 included large diameters wheels and more than 50% included lighter and premium wheels.

幻燈片 12 強調了新發佈如何繼續反映我們技術的持續採用和我們客戶群的日益多樣化。您在 22 年這張圖表上看到的我們推出的產品中，超過 2/3 包括大直徑車輪，超過 50% 包括更輕和優質的車輪。

Slide 13 highlights progress toward our sustainability goals for the year. Our team's focus on safety has enabled us to reduce recordable incident rate by 50% since 2018 and industry benchmarks. We also continue to focus on sustainability using renewable energy. 82% of our electricity is now procured from renewable sources. Further, our focus on green products through our core strategy is yielding results. Our deals on average actually deliver less than 50% CO2 footprint than the global aluminum industry average. Progress in each of these areas has continued to make us more attractive to global OEMs that are looking for partners with sustainable operations. We are planning to provide more detail on these achievements in our upcoming sustainability report, which we plan to publish later this year.

幻燈片 13 重點介紹了我們今年在實現可持續發展目標方面取得的進展。自 2018 年以來，我們團隊對安全的關注使我們能夠將可記錄事故率降低 50%，達到行業基準。我們還繼續關注使用可再生能源的可持續性。我們現在 82% 的電力來自可再生能源。此外，我們通過核心戰略對綠色產品的關注正在取得成果。實際上，我們的交易產生的二氧化碳排放量平均低於全球鋁行業平均水平的 50%。在這些領域中的每一個領域都取得了進展，使我們對正在尋找可持續運營合作夥伴的全球原始設備製造商更具吸引力。我們計劃在即將於今年晚些時候發布的可持續發展報告中提供有關這些成就的更多詳細信息。

I will conclude my remarks by addressing our full year 2023 outlook and on Slide 14. As I noted at the beginning of the call, we remain cautious about how macroeconomic factors, including hike in interest rates and input costs will impact automotive industry consumers. While some of the industry supply chain challenges are abating, we are still seeing continued chopping and volatility. We are anticipating very little growth, if any, in our markets. Specifically, as I mentioned earlier, we expect a declining market in Europe and a flat in the U.S. For the year, we expect adjusted EBITDA in the range of $170 million to $200 million and cash flow from operations in the range of $110 million to $130 million. Our adjusted EBITDA and cash generation while still above historical levels will be impacted primarily by lower customer recovery versus 2022. Tim will provide more color on this later.

我將通過我們的 2023 年全年展望和幻燈片 14 來結束我的發言。正如我在電話會議開始時指出的那樣，我們對宏觀經濟因素（包括加息和投入成本）將如何影響汽車行業消費者保持謹慎。雖然一些行業供應鏈挑戰正在減輕，但我們仍然看到持續的砍伐和波動。我們預計我們的市場幾乎沒有增長（如果有的話）。具體來說，正如我之前提到的，我們預計歐洲市場會下滑，而美國市場會持平。今年，我們預計調整後的 EBITDA 在 1.7 億至 2 億美元之間，運營現金流在 1.1 億至 130 美元之間百萬。我們調整後的 EBITDA 和現金生成雖然仍高於歷史水平，但主要受到與 2022 年相比較低的客戶恢復率的影響。蒂姆稍後將對此提供更多顏色。

In closing, I am very pleased with the impressive results our team delivered this year in the face of unprecedented challenges. I would like to thank every member of our Superior team for their efforts and hard work. We look forward to continuing our progress in 2023 as we generate long-term value to our shareholders. And now I'll turn the call over to Tim. Tim?

最後，面對前所未有的挑戰，我對我們的團隊今年取得的驕人成績感到非常高興。我要感謝我們高級團隊的每一位成員的努力和辛勤工作。我們期待在 2023 年繼續取得進展，為股東創造長期價值。現在我會把電話轉給蒂姆。蒂姆？

Thank you, Majdi, and good morning, everyone. By any measure, 2022 was a challenging year for our company. Light vehicle build in our markets remain depressed for the third year in a row, down almost 20% from pre-COVID levels. Supply chain disruptions, including semiconductor availability, the rise to significant OEM vehicle production volatility. The cost of aluminum in our wheels skyrocket as did the cost of energy to manufacture the wheels, especially in Europe. General inflation, including wage inflation and the cost of resins in the wheel coatings ramped up in the back half of 2021 and continued throughout 2022.

謝謝 Majdi，大家早上好。無論以何種標準衡量，2022 年對我們公司來說都是充滿挑戰的一年。我們市場的輕型汽車製造連續第三年低迷，比 COVID 之前的水平下降了近 20%。供應鏈中斷，包括半導體可用性，導致 OEM 車輛生產大幅波動。我們車輪中的鋁成本和製造車輪的能源成本一樣飆升，尤其是在歐洲。 2021 年下半年，包括工資上漲和車輪塗料樹脂成本在內的總體通脹率上升，並持續到 2022 年。

About half of our business is in Europe. The euro crash during the year dropping to as low as $0.98, the lowest in 20 years, thereby deflating European sales and products. And finally, the capital markets became choppy during the year and still are. Notwithstanding these headwinds, the superior management team, in large part through the extraordinary efforts of our commercial and procurement organizations protected the company's margins. As a consequence, (inaudible) managed by Oaktree Capital Management LLP provided the capital for a $400 million senior secured term loan, extending our momentum and advancing our growth strategy to drive shareholder value.

我們大約一半的業務在歐洲。年內歐元暴跌至 0.98 美元，為 20 年來的最低水平，從而削弱了歐洲的銷售和產品。最後，資本市場在這一年變得動盪不安，現在依然如此。儘管存在這些不利因素，但卓越的管理團隊在很大程度上通過我們的商業和採購組織的非凡努力保護了公司的利潤。因此，由 Oaktree Capital Management LLP 管理的（聽不清）為 4 億美元的高級擔保定期貸款提供了資金，擴大了我們的勢頭並推進了我們的增長戰略以推動股東價值。

Let's have a look at how the company performs financially in the aforementioned business environment. The number of wheels sold, sales and profit for 2022 can be found on Page 16, fourth quarter and full year 2020 financial summary. In the fourth quarter, wheels sold were $3.7 million, down 5% compared to the prior year period. For the full year, wheel sold over (inaudible) [$51.6 million], down 3% from the prior year. More than all of the decline in wheels sold is attributable to Europe, primarily because of the aftermarket business.

讓我們來看看公司在上述商業環境中的財務表現。 2022 年售出的車輪數量、銷售額和利潤可在第 16 頁、第四季度和 2020 年全年財務摘要中找到。第四季度，車輪銷量為 370 萬美元，比去年同期下降 5%。全年，車輪銷量超過（聽不清）[5160 萬美元]，比上年下降 3%。車輪銷量的下降絕大部分歸因於歐洲，主要是因為售後市場業務。

The company's European aftermarket business benefited in 2021 from problematic logistics experienced by exporters of aftermarket wheels into Europe, primarily the Asian manufacturers. Because of the 2021 aftermarket wheel supply constraints, aftermarket sales in 2021 were about 15% higher than expected. Conversely, in 2022, the company's European aftermarket sales were about 20% lower than expected because of improved logistics for the aftermarket wheels orders, a warmer winter, recession worries and the impact of consumer inflation on the ability of consumers to afford (inaudible).

該公司的歐洲售後市場業務在 2021 年受益於向歐洲出口售後車輪的出口商（主要是亞洲製造商）遇到的物流問題。由於 2021 年售後市場車輪供應緊張，2021 年售後市場銷售額比預期高出約 15%。相反，在 2022 年，該公司的歐洲售後市場銷售額比預期低約 20%，原因是售後車輪訂單的物流得到改善、冬季變暖、經濟衰退擔憂以及消費者通脹對消費者負擔能力的影響（聽不清）。

Net sales increased to $402 million for the quarter compared to $368 million in the prior year. For the full year, net sales were $1.6 billion compared to $1.4 billion in the prior year. The increase in net sales is primarily due to the pass-through of higher aluminum cost to our customers, especially earlier in 2022 or euro weighing on net sales in 2022. Value-add sales increased to $218 million for the quarter compared to $189 million in the prior year, a 16% increase. For the full year, value-added sales were $771 million compared to $754 million in the prior year, a 2% increase.

本季度淨銷售額增至 4.02 億美元，而去年同期為 3.68 億美元。全年淨銷售額為 16 億美元，上年為 14 億美元。淨銷售額的增長主要是由於較高的鋁成本轉嫁給我們的客戶，尤其是在 2022 年初或歐元對 2022 年的淨銷售額造成壓力。本季度的增值銷售額增至 2.18 億美元，而上一季度為 1.89 億美元前一年增長了 16%。全年，增值銷售額為 7.71 億美元，上年為 7.54 億美元，增長 2%。

Value-added sales in 2022 benefited from the pass-through of cost inflation to our customers, especially in the fourth quarter and higher premium income. During the fourth quarter, we reported net income of $17 million or earnings per diluted share of $0.25 compared to a net loss of $4 million or a loss of $0.48 per diluted share in the prior year period. For the full year 2022, we reported net income of $37 million or earnings per diluted share of $0.06 compared to net income of $4 million, a loss per diluted share of $1.17 in the prior year period. The loss per diluted share in 2021 arises from value accretion of and dividends paid on the preferred equity.

2022 年的增值銷售受益於成本通脹對我們客戶的傳遞，尤其是在第四季度和更高的保費收入。在第四季度，我們報告的淨收入為 1700 萬美元或攤薄後每股收益為 0.25 美元，而去年同期為淨虧損 400 萬美元或攤薄後每股虧損 0.48 美元。對於 2022 年全年，我們報告的淨收入為 3700 萬美元或攤薄後每股收益為 0.06 美元，而去年同期的淨收入為 400 萬美元，攤薄後每股收益為 1.17 美元。 2021年攤薄每股虧損是由於優先股的增值和股息支付所致。

Page 17, fourth quarter year-over-year sales growth. Value-added sales increased $218 million from $189 million, an increase of 16%, outstanding fewer sales of wheels than in the prior year. Before giving effect to the impact of currency, value-add sales were up 22%. Volume price mix $38 million, benefited from pass-through of cost inflation to our customers and higher premium wheel content. The weaker yield weight on value-add sales by $9 million and the higher cost of aluminum, $5 million was passed through to our customers.

第 17 頁，第四季度銷售額同比增長。增值銷售額從 1.89 億美元增加到 2.18 億美元，增幅為 16%，車輪銷售額低於上年。在考慮貨幣影響之前，增值銷售額增長了 22%。批量價格組合為 3800 萬美元，受益於成本膨脹轉嫁給我們的客戶以及更高的優質車輪內容。 900 萬美元的增值銷售額的較弱收益權重和較高的鋁成本，將 500 萬美元轉嫁給了我們的客戶。

The full year 2020 year-over-year sales bridge is on Page 18. Value-added sales were $771 million, up 2%, notwithstanding fewer wheel sales in the prior year period than the prior year period. Before it affected the impact of currency, value-added sales were up 8%. Volume, price, mix, $58 million benefited from pass-through of cost inflation to our customers and higher premium wheel content. The weaker year will weigh on value-added sales by $42 million, higher aluminum cost of $239 million in 2022 compared to 2021 passed through to our customers.

2020 年全年同比銷售橋在第 18 頁。增值銷售額為 7.71 億美元，增長 2%，儘管上年同期的車輪銷售額低於上年同期。在影響貨幣影響之前，增值銷售額增長了 8%。數量、價格、組合，5800 萬美元受益於成本膨脹轉嫁給我們的客戶和更高的優質車輪內容。疲軟的一年將對增值銷售額造成 4200 萬美元的壓力，與 2021 年相比，2022 年鋁成本將增加 2.39 億美元，並傳遞給我們的客戶。

On Page 19, the fourth quarter 2022 year-over-year adjusted EBITDA bridge. Adjusted EBITDA in the quarter increased to $58 million, a 26% margin expressed as a percent of value-added sales compared to $37 million and 80% margin in the prior year period. The improvement in adjusted EBITDA and the associated margin expansion is comprised of $36 million in performance, offset in part by $8 million of unfavorable volume price mix and $7 million of unfavorable metal timing. The unfavorable volume price mix reflects fewer wheel sales in the quarter, primarily aftermarket wheels. The metal timing reflects a mismatch in the quarter of the cost of metal the superior and the amount of that cost passed through to customers.

在第 19 頁，2022 年第四季度調整後的 EBITDA 橋。本季度調整後的 EBITDA 增至 5800 萬美元，佔增值銷售額的百分比為 26%，而去年同期為 3700 萬美元和 80%。調整後 EBITDA 的改善和相關的利潤率擴張包括 3600 萬美元的業績，部分被 800 萬美元的不利批量價格組合和 700 萬美元的不利金屬時機所抵消。不利的批量價格組合反映了本季度車輪銷量減少，主要是售後車輪。金屬時間反映出四分之一的優質金屬成本與轉嫁給客戶的成本金額不匹配。

In periods of rapidly changing aluminum costs, this mismatch will occur, but tends to net over time. In this instance, in 2021, the cost of aluminum rose dramatically, and in 2022, the cost declining dramatically. Metal timing was favorable $7 million in 2021 and unfavorable $7 million in 2022. With respect to the favorable performance, pass-through of increased cost to more our customers does not necessarily match the timing of the cost inflation. The cost of OEM production schedule volatility and lower fixed cost absorption on lower light vehicle build. Some of this performance in 2022 is recovery of the cost inflation and OEM production schedule volatility that began to ramp up in the back half of 2021.

在鋁成本快速變化的時期，這種不匹配會發生，但隨著時間的推移趨於淨額。在這種情況下，2021年鋁的成本大幅上漲，2022年成本大幅下降。金屬時間在 2021 年有利 700 萬美元，在 2022 年不利 700 萬美元。就有利性能而言，將增加的成本轉嫁給更多客戶並不一定與成本膨脹的時間相符。 OEM 生產計劃波動的成本和較低的輕型車輛製造的較低固定成本吸收。 2022 年的部分錶現是成本通脹和 OEM 生產計劃波動的恢復，這些波動在 2021 年下半年開始加劇。

The full year 2022 year-over-year adjusted EBITDA bridge is on Page 20. Adjusted EBITDA increased to $194 million, a 25% margin expressed as a percent of value-added sales compared to $167 million, a 22% margin in the prior year period. This improvement in adjusted EBITDA and the associated margin expansion is comprised of $57 million in performance, offset in part by $16 million of unfavorable volume price mix, $13 million of unfavorable metal timing and $1 million of unfavorable currency. The unfavorable volume price mix reflects fewer reel sales in 2022, again, primarily aftermarket wins. Mealtime was unfavorable $13 million in 2022 with favorable $9 million in 2021, so $4 million net unfavorable 2 years 2021 and '22. As previously described, some of the favorable performance is recovery of the cost inflation and OEM production schedule volatility that began to ramp up in the back half of 2021.

2022 年全年調整後的 EBITDA 橋樑在第 20 頁。調整後的 EBITDA 增加到 1.94 億美元，利潤率為 25%，以佔增值銷售額的百分比表示，而上一年為 1.67 億美元，利潤率為 22%時期。調整後 EBITDA 的改善和相關的利潤率增長包括 5700 萬美元的業績，部分被 1600 萬美元的不利批量價格組合、1300 萬美元的不利金屬時機和 100 萬美元的不利貨幣所抵消。不利的批量價格組合反映了 2022 年捲軸銷量的減少，同樣主要是售後市場的勝利。 2022 年進餐時間不利 1300 萬美元，2021 年有利 900 萬美元，因此 2021 年和 22 年淨不利 400 萬美元。如前所述，一些有利的表現是 2021 年下半年開始加劇的成本通脹和 OEM 生產計劃波動的恢復。

An overview of the company's fourth quarter and full year 2020 free cash flow is on Page 21. Cash flow from operating activities improved because of higher earnings in 2022 compared to 2021, but also with respect to the full year, improved working capital performance in 2022. Cash used by investing activities is similar in 2022 and '21, it continues to run lower than pre-COVID levels. Since the onset of the byers in 2019, we have brought the business with an elevated focus on reducing capital intensity and therefore, fewer capital expenditures. Free cash flow of $63 million for the fourth quarter and $80 million for the full year 2022 is significantly higher than in 2021. In a nutshell, free cash flow improved significantly in 2022 because of higher earnings, more effective management of working capital and lower capital expenditures.

公司第四季度和 2020 年全年自由現金流概覽見第 21 頁。由於 2022 年收益高於 2021 年，經營活動產生的現金流有所改善，而且就全年而言，2022 年營運資本績效有所改善. 投資活動使用的現金在 2022 年和 21 年相似，繼續低於 COVID 之前的水平。自 2019 年拜爾斯爆發以來，我們將業務重點放在降低資本密集度上，從而減少資本支出。第四季度的自由現金流為 6300 萬美元，2022 年全年的自由現金流為 8000 萬美元，顯著高於 2021 年。簡而言之，2022 年的自由現金流顯著改善，原因是更高的收益、更有效的營運資本管理和更低的資本支出。

A review of the company's capital structure as of the end of 2022 may be found on Page 22. Cash on the balance sheet at year-end was $213 million, an increase of $100 million from the prior year. Funded debt was $647 million at year-end and net debt $34 million, a decrease of $68 million. We intend to continue to focus on deleveraging the balance sheet. As of the end of 2022 liquidity, including availability under the revolving credit facility was $231 million.

截至 2022 年底，公司資本結構回顧見第 22 頁。年末資產負債表上的現金為 2.13 億美元，比上年增加 1 億美元。年末融資債務為 6.47 億美元，淨債務為 3,400 萬美元，減少了 6,800 萬美元。我們打算繼續專注於資產負債表的去槓桿化。截至 2022 年底，包括循環信貸額度在內的流動性為 2.31 億美元。

Superior's debt maturity profile as of December 31, 2022, is depicted on Page 23. The revolving credit facility was undrawn at year-end, remained compliance of all loan covenants and had no significant near-term curies of funded debt.

第 23 頁描述了 Superior 截至 2022 年 12 月 31 日的債務到期情況。循環信貸額度在年底未被提取，仍然遵守所有貸款契約，並且沒有重大的短期融資債務。

Page 24, you'll find the company's full year 2023 outlook. Vehicle production in our markets is not expected to return to pre-corporate levels in the foreseeable future, so we expect flat light vehicle build in our markets in 2022. Although somewhat diminished, the headwinds I spoke of earlier, more specifically supply chain disruptions and the associated OEM vehicle production volatility and cost inflation, especially energy in Europe remain a challenge. Euro has recovered some, but at $1.06 is still well below recent historical levels. We enjoyed considerable success in recovering cost inflation from customers in 2022 and have now pivoted to negotiating appropriate price increases to audit the cost of inflation, the cost of OEM production schedule volatility and lower fixed cost absorption on lower light vehicle build.

第 24 頁，您會看到公司的 2023 年全年展望。在可預見的未來，我們市場的汽車生產預計不會恢復到企業成立前的水平，因此我們預計 2022 年我們的市場將生產輕型平板車。雖然有所減弱，但我之前提到的不利因素，更具體地說是供應鏈中斷和相關的 OEM 車輛生產波動和成本膨脹，尤其是歐洲的能源成本仍然是一個挑戰。歐元有所回升，但 1.06 美元仍遠低於近期歷史水平。我們在 2022 年從客戶那裡收回成本通脹方面取得了相當大的成功，現在已經轉向談判適當的價格上漲，以審計通脹成本、OEM 生產計劃波動的成本以及較低的輕型車輛製造的固定成本吸收。

These negotiations are ongoing, and there is no assurance we'll be able to complete them successfully. With this as a backdrop, we expect to sell 15 million to 16 million wheels in 2023. Net sales are expected to be in the range of $1.6 billion to $1.7 billion and value-added sales in the range of $755 million to $815 million. Resulting in adjusted EBITDA of $170 million to $200 million. The associated adjusted EBITDA margin expressed as a percent of value-added sales expected to be 23% to 25%.

這些談判正在進行中，無法保證我們能夠成功完成。以此為背景，我們預計 2023 年將銷售 1500 萬至 1600 萬個車輪。淨銷售額預計在 16 億美元至 17 億美元之間，增值銷售額在 7.55 億美元至 8.15 億美元之間。調整後的 EBITDA 為 1.7 億至 2 億美元。相關的調整後 EBITDA 利潤率以佔增值銷售額的百分比表示，預計為 23% 至 25%。

Cash flow from operations is expected to be in the $110 million to $130 million range, a decrease from 2022, primarily because of higher debt service costs. With respect to capital expenditures, we plan to invest $70 million in our business this year, including some carryover from 2022 as we continue to strategically invest in our business, especially finishing capabilities. And some other spend, however, will depend in part on the evolution of the business environment during the year and our ability to continue to reduce capital intensity and therefore, capital expenditures.

運營現金流預計在 1.1 億美元至 1.3 億美元之間，較 2022 年有所下降，主要原因是償債成本增加。在資本支出方面，我們計劃今年向我們的業務投資 7000 萬美元，包括 2022 年的一些結轉資金，因為我們將繼續對我們的業務進行戰略投資，尤其是精加工能力。然而，其他一些支出將部分取決於這一年商業環境的演變以及我們繼續降低資本密集度和資本支出的能力。

We model a 20% to 30% effective tax rate for 2023. In closing, Superior delivered very solid financial results in 2022, notwithstanding extremely challenging business conditions, and we attracted $400 million of capital to our company. Enterprise cost improvement and continuous improvement programs continue to mature and increasingly are delivering cost reductions. Our commercial and procurement organizations protected the company's margins from cost increases and the men and women who make our wheels effectively manage the OEM production volatility. Our disciplined operating teams and the operating leverage of this business taken together with our premium wheel making capabilities and therefore, our product portfolio positions us well for the future, especially in light vehicle production recovers.

我們為 2023 年制定了 20% 至 30% 的有效稅率模型。最後，儘管商業環境極具挑戰性，但 Superior 在 2022 年取得了非常穩健的財務業績，我們為公司吸引了 4 億美元的資金。企業成本改進和持續改進計劃不斷成熟，並越來越多地實現成本降低。我們的商業和採購組織保護了公司的利潤免受成本增加的影響，而製造我們車輪的男男女女有效地管理了 OEM 生產的波動性。我們紀律嚴明的運營團隊和這項業務的運營槓桿與我們優質的車輪製造能力相結合，因此，我們的產品組合使我們在未來處於有利地位，尤其是在輕型汽車生產復甦方面。

Majdi and I are most happy to take your questions. Caroline?

Majdi 和我很樂意回答您的問題。卡羅琳？

(Operator Instructions) We will take the first question from Mike Ward from Benchmark.

（操作員說明）我們將從 Benchmark 的 Mike Ward 那裡回答第一個問題。

Maybe to start off, your margin assumptions in America and Europe seemed to be well below what IHS is looking for. And I'm just curious, is that something you're hearing from your customers? Or is that just being conservative on your part?

也許一開始，您在美國和歐洲的利潤率假設似乎遠低於 IHS 的預期。我很好奇，這是您從客戶那裡聽到的嗎？還是您只是保守？

Mike, I think your question is not related to margins. I think it's related to growth outlook, correct?

邁克，我認為你的問題與利潤率無關。我認為這與增長前景有關，對嗎？

What did I say, margin, I mean your market industry environment, industry production, I'm sorry.

我說什麼保證金，我是說你的市場行業環境，行業生產，不好意思。

Listen, Mike, we had -- using multiple sources to put our plans in place. IHS is just but one of the IHS is predicting 5% a year. And you know over the last 3 years, they've been off. So we tend to pay close attention to our customer schedules. We call them call-offs, what we see. I personally talked to a lot of the leaders in the industry. And Mike, I would tell you, at this point, there is no conviction at a high level about how industry production will play out. I mean we are in the third year, talking about the automotive industry, third year at recession-level demand. And then there is no recession.

聽著，邁克，我們已經 - 使用多個來源來製定我們的計劃。 IHS 只是 IHS 預測每年 5% 的增長之一。你知道在過去的 3 年裡，他們一直在關閉。因此，我們傾向於密切關注客戶的日程安排。我們稱之為取消，我們看到的。我親自與該行業的許多領導者進行了交談。邁克，我會告訴你，在這一點上，高層對工業生產將如何發揮作用還沒有信心。我的意思是我們已經進入第三個年頭，談論汽車行業，第三個年頭處於衰退水平的需求。然後就沒有經濟衰退。

Car prices now today are up 28%. So you've got a massive affordability factor. The average payment is $750. That's up 35% versus what people used to pay not too long ago. So I mean people would argue that these types of macro factors will weigh in on demand, and some would say that you're looking at a 15 million product. Inventory is up, right? Yes, demand is there, but inventory is up. So we're very concerned. We're not seeing it from our customers. We're still seeing the volatility. We're still seeing the choppiness, the rest of the leadership in the industry is very skeptical. We have always taken a cautious approach, (inaudible) this time we did, the year before we did.

今天的汽車價格上漲了 28%。所以你有一個巨大的負擔能力因素。平均付款為 750 美元。這比不久前人們過去支付的價格高了 35%。所以我的意思是人們會爭辯說這些類型的宏觀因素會影響需求，有些人會說你正在看一個 1500 萬的產品。庫存增加了，對吧？是的，需求存在，但庫存增加了。所以我們非常擔心。我們沒有從我們的客戶那裡看到它。我們仍然看到波動。我們仍然看到動盪不安，該行業的其他領導層非常懷疑。我們一直採取謹慎的態度，（聽不清）這一次，前一年。

And we're going to continue to do the same thing. So we're thinking Europe is going to continue to be challenged. And North America will be flat. But Mike, this is really about planning for our business, right? Our guys thus expected, hey, at these times you have a fantastic business here. (inaudible) we don't get what we do. We make money. So we are hopeful that the high end of the guide and that that 5% that IHS is talking about will come to pass.

我們將繼續做同樣的事情。所以我們認為歐洲將繼續受到挑戰。北美將持平。但是邁克，這真的是關於我們的業務規劃，對吧？我們的人因此期望，嘿，在這些時候你在這裡有一個很棒的生意。 （聽不清）我們不知道我們在做什麼。我們賺錢。因此，我們希望指南的高端和 IHS 正在談論的 5% 能夠實現。

Okay. And then we're -- if you look at the European business in the fourth quarter, were your unit shipments positive to the vehicle manufactures and negative to the aftermarket? Is that what the -- is that why we saw the -- on a unit basis, underperformance relative to the market or is it...

好的。然後我們 - 如果你看看第四季度的歐洲業務，你的單位出貨量是否對汽車製造商有利，對售後市場不利？這就是 - 這就是為什麼我們看到 - 在單位基礎上，相對於市場表現不佳，還是......

Yes. The unit story in Europe is cloudy, right? Last year, we had a fantastic year in the aftermarket. Our aftermarket business was up 35%. And that's largely, as you know, because of all the logistics and supply chain issues from Thailand and China. So this year, it's reversed other way around. Now I would tell you, Mike, I think in terms of how our business does from a growth standpoint, we like to look at our sales or value-added sales as the content. The content story of this company is phenomenal, right?

是的。歐洲的單位故事是多雲的，對吧？去年，我們在售後市場度過了美好的一年。我們的售後市場業務增長了 35%。如您所知，這在很大程度上是因為來自泰國和中國的所有物流和供應鏈問題。所以今年，它反過來了。現在我要告訴你，邁克，我認為從增長的角度來看我們的業務如何做，我們喜歡將我們的銷售額或增值銷售額視為內容。這家公司的內容故事是非凡的，對吧？

If you go to Slide 11, please? You can see 33% growth in content every year, right? We have -- with big bank assisted to our strategy, it's about certain products. We're following certain macro trends, black weighting, larger wheels and showing the numbers. If you don't want to use content per wheel use growth over market, you look at versus what this company was in '21, we're up 20%. If you look at the whole year, even though we had a fantastic growth year in '21. This year, just a lot excluding the 20% growth in '21, we're still growth above market company. So the index is cloudy and the growth over market narrative for our company is not very clear on a quarterly basis. It needs more than a quarter.

請轉到幻燈片 11，好嗎？您可以看到內容每年增長 33%，對嗎？我們有——在大銀行協助我們的戰略的情況下，它是關於某些產品的。我們遵循某些宏觀趨勢、黑色權重、更大的車輪並顯示數字。如果你不想使用每個輪子的內容在市場上的使用增長，你可以看看這家公司在 21 年的情況，我們增長了 20%。如果你看一下全年，即使我們在 21 年取得了驚人的增長。今年，除了 21 年 20% 的增長之外，我們的增長仍然高於市場公司。因此該指數是多雲的，我們公司的市場敘事增長在季度基礎上不是很清楚。它需要超過四分之一。

Yes. Now I assume the content -- the value-added content per wheel on the aftermarket side is lower than OE.

是的。現在我假設內容——售後市場方面每個車輪的增值內容低於 OE。

Slightly.

輕微地。

Okay. And just one last question. When you look, Tim, on your charts with you had the bridge on the EBITDA, there were 2 things you mentioned, the lower customer recoveries. Is there a way -- I assume that like on the fourth quarter, the $7 million metal timing or the volume price mix to $8 million, are the recoveries netted out against that? And so when you say that recoveries will be lower in 2023, what is -- can you put any numbers around that?

好的。還有最後一個問題。當你看時，蒂姆，在你的圖表上你有 EBITDA 的橋樑，你提到了兩件事，較低的客戶回收率。有沒有辦法 - 我假設像第四季度那樣，700 萬美元的金屬時間或批量價格組合為 800 萬美元，回收率是否抵消了這一點？因此，當你說 2023 年的回收率會更低時，你能給出任何數字嗎？

So the recoveries, just so you know, Mike, are been in the performance category, the customer recovery.

因此，邁克，你知道的，恢復屬於性能類別，即客戶恢復。

Okay. Okay.

好的。好的。

And let me just add some color here on this. For commercial and other reasons, not the least of which is that the negotiations that we have with our customers with respect to the costs that we believe are subject to recovery and the time period for which we are seeking those recoveries is not specific in the negotiations. The way the negotiations end up is they evolved into an amount and there was not any specificity really with respect to which costs they pertain to and frankly which time period. So some of the recoveries that we experienced in 2022 actually related to costs that were incurred in 2021. Now that's not a lot -- the line of share is 2022. But for sure, our performance in this year in '22 was boosted somewhat because of this mismatch in cost versus recoveries in the period in which they occur.

讓我在這裡添加一些顏色。出於商業和其他原因，其中最重要的是我們與客戶就我們認為需要收回的成本以及我們尋求這些收回的時間段進行的談判在談判中沒有具體說明.談判結束的方式是它們演變成一個數量，並且沒有任何關於它們涉及哪些成本以及坦率地說是哪個時間段的具體細節。因此，我們在 2022 年經歷的一些復甦實際上與 2021 年發生的成本有關。現在這並不多——份額線是 2022 年。但可以肯定的是，我們在 22 年的表現有所提高，因為這種成本與發生期間的回收不匹配的情況。

Now to your point about 2023, we have -- as I mentioned, we have now pivoted in our discussions with the customers to instead of one-off recoveries of cost position incorporating into the pricing in the wheels, an appropriate amount, an amount that reflects the inherent increased costs in our cost structure, labor, material, energy, especially with respect to Europe, and frankly, the fact that they're building 15% to 20% fewer vehicles. So those dialogues are ongoing with respect to both the energy and the wheel price up for the rest of the cost inflation. And I would suggest to you that the best way to sort of get a handle on where we think all of that will end up is to use our guidance as a barometer of measurement.

現在談到你關於 2023 年的觀點，正如我提到的，我們現在已經在與客戶的討論中轉向將成本位置的一次性回收納入車輪定價中，一個適當的數量，一個數量反映了我們的成本結構、勞動力、材料、能源中固有的成本增加，尤其是在歐洲，坦率地說，他們建造的車輛減少了 15% 到 20%。因此，關於能源和車輪價格上漲以應對其餘成本通脹的對話正在進行中。我建議你，最好的方法來處理我們認為所有這些最終會發生的事情是使用我們的指導作為測量的晴雨表。

So $755 million to $815 million of value-added sales, assuming that we continue to be successful with respect to our commercial activities, we would expect a margin of between, let's say, 23% and 25%. Now having said that, I do expect that we're going to see some lumpiness from quarter-to-quarter as these negotiations are completed. So we'll have some variation, I expect from quarter-to-quarter.

所以 7.55 億美元到 8.15 億美元的增值銷售額，假設我們在商業活動方面繼續取得成功，我們預計利潤率在 23% 到 25% 之間。話雖如此，我確實希望隨著這些談判的完成，我們會看到季度與季度之間出現一些波動。所以我們會有一些變化，我預計每個季度都會有所不同。

Okay. That's very helpful. Really appreciate that, Tim.

好的。這很有幫助。真的很感激，蒂姆。

We will take the next question from Gary Prestopino from Barrington Research.

我們將接受來自 Barrington Research 的 Gary Prestopino 的下一個問題。

Can you give us some idea with the new facility, what your annualized interest expense is going to run at?

你能給我們一些關於新設施的想法嗎？你的年化利息支出是多少？

Sure. The pricing, Gary, is SOFR, which today is about 450 basis points plus 800 basis points. So that's 12.5%. Now importantly, a year ago, we had the foresight to enter into $250 million of interest rate swaps at $300 million, SOFR $300 million. So we are getting some benefit directionally today about $4 million a year benefit from those swaps, 150 basis points on $250 million of $250 million. So the $250 million of swaps. So I would say if you wanted to pick a number setting aside future Fed rate increases, I'd use 12%.

當然。加里，定價是 SOFR，今天約為 450 個基點加 800 個基點。所以這是 12.5%。現在重要的是，一年前，我們有先見之明，以 3 億美元，SOFR 3 億美元的價格簽訂了 2.5 億美元的利率掉期合約。因此，我們今天從這些互換中獲得了一些定向收益，每年約有 400 萬美元，即 2.5 億美元中的 2.5 億美元的 150 個基點。所以 2.5 億美元的掉期交易。所以我會說，如果你想選擇一個數字來擱置未來的美聯儲加息，我會使用 12%。

12% on -- I mean, on the total debt, I mean that's a lot there. I mean, all I'm really looking for is -- what type of number are we looking at year-over-year?

12%——我的意思是，就總債務而言，我的意思是那裡有很多。我的意思是，我真正想要的是——我們每年都在看什麼類型的數字？

All right. So it would be absent the swaps on the term loan, about $25 million, but because the swaps are in place at current swap, you can think of about $20 million, 20.

好的。因此，定期貸款的掉期將不存在，大約 2500 萬美元，但由於掉期在當前掉期，你可以想到大約 2000 萬美元，20。

Okay. So that's not incremental. That's just a total amount of -- well, that would be kind of an increase in interest expense year-over-year?

好的。所以這不是增量的。這只是總數——好吧，這會是利息支出同比增長嗎？

$20 million incremental. Now that assumes no further (inaudible) I assume [Jerome Pollo] doesn't raise the Fed funds rate, which probably is a little bit of an old assumption. But again, the good news is an increase in the Fed term rate, which ends up manifesting itself in SOFR, $250 million of the $400 million is insulated from the swap that would only impact $150 million of the debt.

增加 2000 萬美元。現在假設不再（聽不清），我假設 [Jerome Pollo] 不會提高聯邦基金利率，這可能是一個有點陳舊的假設。但同樣，好消息是美聯儲定期利率上升，這最終體現在 SOFR 中，4 億美元中的 2.5 億美元與只會影響 1.5 億美元債務的掉期交易無關。

Okay. And then a couple of more questions here. You've got kind of a very sanguine outlook for this year and understanding fully the puts and takes and the challenges. But everybody I speak to in the industry is saying that they're seeing a betterment or improvement, at least on the retail side, inventories are moving up, sales are still pretty good. I mean, is your -- SOFR in Q1, is your sanguine outlook coming out to play and what you're generating in terms of units and sales?

好的。然後這裡還有幾個問題。您對今年的前景抱有一種非常樂觀的態度，並且充分理解了投資和挑戰以及挑戰。但我與業內人士交談的每個人都說他們看到了改善或改善，至少在零售方面，庫存在增加，銷售仍然相當不錯。我的意思是，你的 - 第一季度的 SOFR，你樂觀的前景是否正在發揮作用以及你在單位和銷售額方面產生了什麼？

Gary, it's a tough call. It's really -- I do understand (inaudible). There's a lot of noise actually, Gary, right? There is variation in the impact of what we just talked about with affordability and vehicles and type of production, there's variation customers. You look at Ford schedules, what they're facing. You've heard Nissan announced (inaudible), GM shutdown, and then Fort Wayne plant, GM shutdown, the Fort Wayne plant because of the supply chain issues, the Fort Wayne plant shutdown was presumably because of inventory, Fort got issues that are very public.

加里，這是一個艱難的決定。這真的——我明白（聽不清）。實際上有很多噪音，加里，對吧？我們剛才談到的對負擔能力、車輛和生產類型的影響各不相同，客戶也各不相同。你看看福特的時間表，他們面臨的是什麼。你聽說日產宣布（聽不清），通用汽車關閉，然後韋恩堡工廠，通用汽車關閉，韋恩堡工廠因為供應鏈問題，韋恩堡工廠關閉大概是因為庫存，福特遇到了非常嚴重的問題民眾。

So you talk to everybody, and I said, like, I said, I talked to my colleagues in the industry, and at the very highest level, there is no conviction about how this will play out. It's great. It's very funny. So we're taking a conservative approach. We are seeing a lot of choppiness in the schedule. It's not that the same level of 12 months ago, but it's still problematic. And what's unique about it is the variation between customers. So it very much depends on our customer base, on a per specific supplier customer's base. But again, the guide is showing growth, and I'm hopeful that this is the year we're wrong.

所以你和每個人談過，我說，就像，我說，我和業內同事談過，在最高層，對於這將如何發揮作用沒有說服力。這很棒。很好笑。所以我們採取保守的方法。我們在日程安排中看到了很多起伏不定的情況。與 12 個月前的水平不同，但仍然存在問題。它的獨特之處在於客戶之間的差異。所以這在很大程度上取決於我們的客戶群，取決於每個特定供應商的客戶群。但同樣，該指南顯示出增長，我希望今年是我們錯誤的一年。

Well, I mean we hope so, too. I mean you're not really looking at any kind of betterment in your financials that based on the guidance you're giving. And it just appears that the industry probably bottomed in 2022 and is starting a slow movement higher. All right. So let me just ask another thing. I'm trying to get a handle on these cost recoveries here. you're saying these negotiations are ongoing. But again, it would appear that the peak levels of inflation and input costs and whatever are in the rearview mirror. And as you're going into 2023 or in 2023, can you just help us out there with this whole issue where you're trying to get cost recoveries from the client, your end users. And it's obviously going to affect your margins. And then, I guess, to date, how well has that been going?

好吧，我的意思是我們也希望如此。我的意思是，根據您提供的指導，您並沒有真正看到財務狀況有任何改善。而且看起來該行業可能會在 2022 年觸底並開始緩慢走高。好的。所以讓我再問一件事。我正試圖在這里處理這些成本回收問題。你是說這些談判正在進行中。但同樣，似乎通貨膨脹和投入成本的峰值水平以及後視鏡中的任何東西。當你進入 2023 年或 2023 年時，你能否幫助我們解決整個問題，你正試圖從客戶、你的最終用戶那裡收回成本。這顯然會影響您的利潤。然後，我想，到目前為止，進展情況如何？

So Gary, let me first speak to this and Tim can pick up, okay? So the cost recovery story, as you can imagine, with everybody, it's complex, it's fast, okay? Really 2 points I'm going to make with you. Number one is, at the highest level, okay, at the highest level, the company's normalized margin is what Tim mentioned, is 23% to 25%. And from then, you come back into what recoveries were in the year, what the covers what in prior years. But the second point I think is more clear. So for us, Gary, cost recovery is multiprogram.

所以加里，讓我先談談這個，蒂姆可以接電話，好嗎？所以成本回收的故事，正如你可以想像的那樣，對於每個人來說，它很複雜，它很快，好嗎？我真的要和你一起做 2 點。第一，在最高級別，好吧，在最高級別，公司的標準化利潤率就是蒂姆提到的，是 23% 到 25%。從那時起，你就會回到當年的複蘇情況，以及前幾年的情況。但是第二點我覺得更明確。所以對我們來說，加里，成本回收是多項目的。

But if you look at the details, you look at the bridges Tim showed you, 80% to 85% of the year-on-year recoveries are commodities. You can back into anywhere between $240 million to $280 million, Gary. That all that, as you see in Tim's bridges, 85% of our recoveries -- it's either aluminum or aluminum additives or silicon. That leaves you with the balance, which is the dialogue we have with customers on the rest, call it the 15 tangible, little bit more maybe. And that non-commodity inflation, including energy.

但如果你看細節，看看蒂姆向你展示的橋樑，80% 到 85% 的同比復甦是商品。你可以回到 2.4 億到 2.8 億美元之間的任何地方，加里。這一切，正如你在蒂姆的橋樑中看到的那樣，我們回收的 85%——要么是鋁，要么是鋁添加劑，要么是矽。剩下的就是平衡，這是我們與客戶之間的對話，稱之為 15 個有形的，也許更多一點。還有非商品通脹，包括能源。

And by the way, Tim has been consistent in the last few calls. We have fared very well on energy because we had -- we did a good job of hedging energy in 2022. And then what's left there is paint and other, obviously, labor and manufacturing costs. And the third piece of that, the 15% to 20% is volatility and cancellation. So what we're telling you is the 85% was indexed. It's been indexed. Our work with customers was on the 15%. We fit well. We have to shift some of that focus now from onetime recoveries to put together the piece price. And yes, there are some carry over from '21 that we're saying is not carrying into '23.

順便說一句，蒂姆在最近幾次通話中一直保持一致。我們在能源方面表現非常好，因為我們在 2022 年很好地對沖了能源。然後剩下的就是油漆和其他顯然是勞動力和製造成本。第三部分，15% 到 20% 是波動和取消。所以我們告訴你的是 85% 已編入索引。它已被索引。我們與客戶的合作佔 15%。我們很合身。我們現在必須將部分關注點從一次性恢復轉移到計件價格上。是的，我們說的是 21 年遺留下來的一些東西沒有帶入 23 年。

So Mike, I can't really improve on that, but I would like to, for a moment, Gary, if I may just go back to your previous question, which is the guide 2023 vis-a-vis the company's performance in 2022. And I think you made reference to how it compares to certain other companies. As we've said, our performance in 2022 were somewhat boosted by customer recoveries that were really associated with 2021. I think if you go back and you compare the company's performance last year 2022 compared to 2021. As compared to our peers, you'll find that we, for the most part, outperform because of those that mismatches the customer recoveries. So a better comp is really 23 '21 vis-a-vis our peers. And I think you'll see that we still compare very reasonably in that regard. So that's around about we say 2022 was a little unusual.

所以邁克，我真的不能改進，但我想，加里，如果我可以回到你之前的問題，這是 2023 年相對於公司 2022 年業績的指南. 我想你提到了它與某些其他公司的比較。正如我們所說，我們 2022 年的業績在一定程度上受到了與 2021 年真正相關的客戶復甦的提振。我認為，如果你回過頭來比較公司去年 2022 年與 2021 年的業績。與我們的同行相比，你我們會發現，在大多數情況下，我們的表現優於大盤，因為這些與客戶的回收率不匹配。因此，與我們的同行相比，更好的競爭實際上是 23 '21。我想你會看到我們在這方面的比較仍然非常合理。所以這就是我們所說的 2022 年有點不尋常。

Okay. I guess my way of thinking is that you're so specialized, high amount of technology in what you're producing in the wheels that you have and that you should have some modicum of success because of your portfolio and your technologies and getting these cost recoveries because where else would the OEMs turn to?

好的。我想我的想法是，你是如此專業，在你所擁有的車輪上生產的產品中擁有大量技術，並且由於你的投資組合和技術以及獲得這些成本，你應該取得一些成功恢復，因為原始設備製造商還會轉向哪裡？

Gary, that was a great point. We see ourselves as competitively advantaged in many ways. We have the technology. We have the portfolio. We have a team that is executing on most of those directly. And guess what? We have what we believe to be the most competitive, unique footprint in the industry. Gary, if you look at just this industry from a low-cost standpoint, you could argue that of all the capacity in North America, remember, 50% of wheels come from China were 27% duties. If you look at only the capacity in metal, we have 50% of the lead capacity in Mexico. You could look at North America, that's 30%. That's a competitive advantage where customers are fine localized.

加里，這是一個很好的觀點。我們認為自己在許多方面都具有競爭優勢。我們有技術。我們有投資組合。我們有一個團隊直接執行其中的大部分。你猜怎麼著？我們認為我們擁有業內最具競爭力、最獨特的足跡。加里，如果你從低成本的角度來看這個行業，你可能會爭辯說，在北美的所有產能中，請記住，50% 的車輪來自中國，27% 的關稅。如果你只看金屬產能，我們在墨西哥擁有 50% 的鉛產能。你可以看看北美，那是 30%。這是一個競爭優勢，客戶可以很好地本地化。

Now I shift you over to Europe, and I don't know if you caught in to my comments. But last month, the EU Commission imposed duties on wheels coming out of Morocco in addition to do these that were wheels coming out of China. So obviously, Morocco was a concern for us, right, from a pricing standpoint. So now we're back to where we were 3 years ago. And it just so happens that 90% of my capacity in Europe is in low cost, it's in Poland. If you assume Poland and Czech Republic of low cost and Turkey, we have 25% of the low-cost capacity in Europe. So we have the product, we have the technology, we have the competitive cost. And then now we have a very much a differentiated footprint where we expect the tailwind to that.

現在我把你轉到歐洲，我不知道你是否理解我的評論。但上個月，歐盟委員會除了對來自中國的車輪徵收關稅外，還對來自摩洛哥的車輪徵收關稅。很明顯，從定價的角度來看，摩洛哥對我們來說是一個問題。所以現在我們回到了 3 年前的狀態。碰巧我在歐洲 90% 的產能都是低成本的，它在波蘭。如果你假設波蘭和捷克共和國的低成本和土耳其，我們擁有歐洲 25% 的低成本產能。所以我們有產品，我們有技術，我們有競爭力的成本。然後現在我們有一個非常不同的足跡，我們期待順風。

And you're right, (inaudible) customers have along with a supplier that they value very much. And they are collaborative on. But we also have to demonstrate our customers that we help ourself where we can. So I'm very -- I tell you, I'm very encouraged with how constructive the dialogues have been and our prospects for 2013.

你是對的，（聽不清）客戶與他們非常重視的供應商一起。他們是合作的。但我們也必須向我們的客戶證明，我們會盡力幫助自己。所以我非常 - 我告訴你，我對對話的建設性以及我們 2013 年的前景感到非常鼓舞。

There's no further questions. So I will hand back over to the host, Majdi Abulaban, to conclude today's conference. Thank you.

沒有其他問題了。因此，我將把今天的會議交還給主持人 Majdi Abulaban。謝謝。

Thanks, everyone, for joining our call today. In closing, I am very encouraged by our results this quarter and throughout the year. We look forward to continuing to execute on our strategic priorities, delivering long-term profitable growth. To the superior team, I am very proud of what we have accomplished. Thank you for your perseverance, hard work and execution to these challenging times. Thanks again for joining the call. Have a nice day.

感謝大家今天加入我們的電話會議。最後，我對我們本季度和全年的業績感到非常鼓舞。我們期待繼續執行我們的戰略重點，實現長期盈利增長。對於優秀的團隊，我為我們所取得的成就感到非常自豪。感謝您在這個充滿挑戰的時代所表現出的毅力、辛勤工作和執行力。再次感謝您加入電話會議。祝你今天過得愉快。

Thank you for joining today's call. You may now disconnect.

感謝您參加今天的電話會議。您現在可以斷開連接。