Randoncorp (RAPT4) Investor Day 2024 summary

Strategic transformation and business evolution

• Transitioned from a regional semi-trailer manufacturer to a diversified multinational auto solutions ecosystem, now present in over 120 countries with 32 industrial complexes and 13 distribution centers.

• Focused on four pillars: internationalization (targeting 30% of revenues from abroad), spare parts expansion, innovation in services, and capital allocation to profitable businesses.

• Significant investments of BRL 2.5 billion from 2019–2023, with 65% directed to auto parts and movement control, and 29% to car manufacturing.

• Achieved strong growth: net revenues rose from BRL 2.9 billion in 2017 to BRL 10 billion in 2023, with EBITDA increasing from BRL 300 million to BRL 1.5 billion.

• Auto parts now represent 75% of EBITDA in Q1 2024, reflecting a shift toward higher-margin, resilient business lines.

Market potential and internationalization

• Agribusiness is a key growth driver, with Brazil’s leadership in global grain and protein production fueling demand for trucks, semi-trailers, and auto parts.

• U.S. market expansion is a priority, with recent contracts (e.g., 3,000 units for Hercules) and a focus on organic growth, product portfolio expansion, and selective M&A.

• Spare parts and movement control verticals are positioned for growth in North America and Europe, leveraging leadership in friction materials and plans to expand light line offerings.

• Automation and AI are being deployed to optimize manufacturing, with new facilities like Mogi Guaçu serving as export hubs and innovation centers.

• Strategic partnerships and joint ventures (e.g., with Mercedes-Benz and Master) are enhancing competitiveness and market reach.

Innovation, efficiency, and technology

• Major focus on smart manufacturing, automation, and AI, with over 350 robots installed and digital twin technology driving productivity gains.

• Proprietary MES and data platforms centralize operations, enabling advanced analytics and real-time management across 32 plants.

• Nanotechnology (Nione) and advanced materials are being developed for both internal use and external markets, with international exposure and partnerships.

• Autonomous vehicle technology is under development, targeting both confined and open environments, with a long-term vision for integrated truck and trailer solutions.

• Sustainability is integral, with targets for greenhouse gas reduction, increased women in leadership, and a strong ESG agenda.