Iochpe-Maxion (MYPK3) investor relations material

Strategic direction and business outlook

• Emphasis on global presence with 33 plants in 14 countries, expanding to 34 with new facilities in Turkey and Mexico.

• Shift from divisional to business unit structure to foster synergies between wheels and structural components, especially in the Americas.

• Focus on operational efficiency, smart growth through smaller, quicker payback projects, and leveraging AI and digitalization.

• Continued investment in Brazil, India, and China to capture above-average growth, with redeployment of assets and targeted CapEx.

• Commitment to local-for-local production strategy, serving local markets rather than relying on exports.

Financial performance and capital allocation

• Net revenue for 2Q 2025 reached BRL 4.1 billion, with gross margin at 13% and EBITDA margin returning to historical levels.

• Leverage reduced to 2.38x, with a short-term target of 2x and a medium-term goal of 1.5x.

• CapEx allocation to shift toward multiple smaller projects with faster payback, maintaining overall investment levels.

• Strong cash position with nearly BRL 1.7 billion available and competitive debt costs, including a 3.49% euro bond.

• Plans to consider dividends or share buybacks once leverage targets are met, with a focus on shareholder returns.

Innovation, product development, and market positioning

• Launch of new products such as Maxeon Fusion wheels and aluminum battery boxes for electric vehicles.

• Expansion into new applications and niches, including light rail, recreational vehicles, and defense sectors.

• Investment in modular, scalable plants to ensure capacity and flexibility, especially in North America.

• Use of AI and digital tools to drive productivity, quality, and profitability, with employee training programs to support adoption.

• Sustainability initiatives include solar panels in Mexico and low CapEx CO2 reduction projects.