Accuride (ACUZW) 8-K Accuride Corporation Turnaround Continues in Second Quarter

Second Quarter 2012
Earnings Call

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Statements contained in this news release that are not purely historical are forward-
looking statements within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
including statements regarding Accuride’s expectations, hopes, beliefs and
intentions with respect to future results.  Such statements are subject to the impact
on Accuride’s business and prospects generally of, among other factors, market
demand in the commercial vehicle industry, general economic, business and
financing conditions, labor relations, governmental action, competitor pricing activity,
expense volatility and other risks detailed from time to time in Accuride’s Securities
and Exchange Commission filings, including those described in Item 1A of
Accuride’s Annual Report on Form 10-K for the fiscal year ended December 31,
2011. Any forward-looking statement reflects only Accuride’s belief at the time the
statement is made. Although Accuride believes that the expectations reflected in
these forward-looking statements are reasonable, it cannot guarantee its future
results, levels of activity, performance or achievements.  Except as required by law,
Accuride undertakes no obligation to update any forward-looking statements to
reflect events or developments after the date of this news release.

Forward Looking Statements

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Second Quarter 2012 Earnings

ØOpening Comments

•CEO Update

•Industry Highlights

•Plan Execution

ØFinancial Information

•Second Quarter Results

•2012 Outlook

ØQ&A

ØClosing Comments

Rick Dauch

President & CEO

Greg Risch

Vice President & CFO

Rick Dauch

Greg Risch

Rick Dauch

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2nd Quarter Highlights

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•STRONG performance across the Wheels & Brillion business units

•Imperial stabilizing:

•Decatur “under control” operationally - organizationally, delivery, quality, scheduling

•New business wins at Daimler & Navistar ($12 to $15 million)

•CAPEX Projects on schedule and on-budget:

•AL wheel capacity 2-3 weeks ahead of schedule in Camden & Monterrey

•Gunite >25% of new equipment installed and operating

•Cost structure reduction initiatives:

•Steel wheel capacity consolidation & capability studies (London & Mexico facilities)

•Gunite Elkhart, IN facility closure announced

•ERP migration launched

•Class 8 Truck Orders < OEM Builds by +20% ... significant production cuts in 3Q/4Q

•Imperial profitability: TN à TX consolidation delayed 6-8 months from original timing

•Aluminum wheel demand > Accuride capacity (7-day operations)

•Soft Gunite aftermarket demand (offshore pricing impact)

•Unfavorable anti-dumping ruling creating pressure in the steel wheel aftermarket

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Industry Fundamentals

Average Age: Class 8 Fleet

Carrier Profitability

Real Gross Domestic Product

Class 8 Fleet Utilization

Net Order Weakness

Class 8 Backlog

OEM Momentum

Class 8 Net Orders vs. Builds

Fleet Concerns

•Uncertain global market conditions

•European debt situation

•Middle Eastpolitical volatility

•US political uncertainty in an election year

•Fuel price volatility

•New CAFE standards on the horizon (2014/2018)

•Lumpy freight associated w/slow economic recovery

•It is difficult to slow production quickly

•We are still at the front end of an upward cycle

(i.e. no one wants to risk losing share)

•OEMs have a “cushion”

•Backlog

•Inventory

•Seasonality of orders (summer weakness)

•Low order cancellation rates

OEM Build Rate Adjustments

Forecasted OEM Build Rates: June vs. July

June
Schedules

July
Schedules

Source: ACT & FTR

Industry Builds

Class 8 Truck Production

Medium-Duty Truck Production

Trailer Production

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Strategic Objectives

Ø#1-2 globally in wheel-end systems

ØROIC > 20% through a cycle

Ø>80% of revenue from CORE products

ØBalanced geographical revenues:

•40% North America

•30% Asia

•20% Europe

•10% South America

Ø>95% retention of personnel

ØMaximize ACW share price

Accuride Vision:Accuride will be the premier supplier of wheel-end system
solutions to the global commercial vehicle industry

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Share

Price

Grow Globally

Create a Competitive

Cost Structure &

LEAN Operating Culture

Divest Non-Core Assets

Fix Core Business & Operations

Customer Centric, Technology Leadership

Ethical People, Selfless Leaders, Team Oriented

Our Focus

“Fix & Grow” Accuride

“Fix” (6-12 months):

•Invest to catch up

•Clean and organize

•Close or fix uncompetitive operations

•Rationalize / consolidate capacity

•Divest non-core assets

•Reassign, release, reduce

•Upgrade from outside

•Standardize

•Understand LEAN

“Grow” (12-18 months):

•Invest to leapfrog

•World class standards

•Open new facilities

•Build and expand

•Acquire “core” assets

•Add and expand

•Promote from within

•Benchmark

•Operate LEAN

Strategic Objectives

Accuride Vision:Accuride will be the premier supplier of wheel-end system
solutions to the global commercial vehicle industry

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Share

Price

Grow Globally

Create a Competitive

Cost Structure &

LEAN Operating Culture

Divest Non-Core Assets

Fix Core Business & Operations

Customer Centric, Technology Leadership

Ethical People, Selfless Leaders, Team Oriented

Our Focus

Fix (6-12 months):

–New Senior Leadership team in place

–Critical Technical staff repopulated

–HR development systems introduced

–Brillion to positive FCF (Jun) & Net Income

–Gunite & Imperial turn-around in process

–Common & LEAN systems introduced

–ERP system selection

–Non-core assets divested or identified

–Plant consolidations underway

Grow (12-18 months):

–Acquired Camden

–2x Alum wheel capacity

–Imperial business wins

–M&A growth opportunities

Transformation & Execution

2012 - A Year of Execution

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Top Priorities - Q3 2012

Project Timeline

Q4

Q1

Q2

Q3

Q4

Q1

2011

2012

Ahead

of schedule

&

on budget

2013

Q4 2013 ---->

Aluminum Capacity Timeline

MC1 & MC2
Equipment
Arrival

Building
Renovation

MC1 & MC2
Ramp-Up

MC1 & MC2
commercial

Machine Line

1 Equipment
Arrival

Machine Line 1

capacity added

Machine Line
2 Equipment
Arrival

Machine
Line 1
Ramp-Up

Machine Line 2

Ramp- Up

Machine Line 2
commercial

Acme
Polish
Installed

JAN

FEB

MAR

APR

MAY

JUN

AUG

SEP

OCT

NOV

JUL

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MC3 & MC4
Equipment
Arrival

Dec

AHEAD OF SCHEDULE &
ON BUDGET

Gunite CAPEX Timeline

Slack Line
Installation

Slack Line
Full
Production

Drum Machine
Line 1
Equipment
Arrival

Drum
Machine
Line 1 Full
Production

Site
Preparation

Drum Machine
Line 2

Full Production

Drum Machine
Line 3
Equipment
Arrival

Drum Machine
Line 3

Full Production

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Hub Machine
Line Equipment
Arrival

JAN

FEB

MAR

APR

MAY

JUN

AUG

SEP

OCT

NOV

JUL

Dec

ON TRACK & ON BUDGET

Elkhart

Closure

(Q1 2013)

Imperial Progress

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Past Due Reductions

On Time Delivery

Imperial Improvements Underway

•Upgraded Business Unit and Plant Leadership
teams (TX, TN)

•Elimination of past due situation at customers

•Completion of TX-TN consolidation projects:

•Transferred presses safely, up and
running consistently

•PPAP remaining parts at TX

•TN2 expansion and bumper consolidation
from TN1

•TX polish plant expansion and new
process launch

•Reduce labor costs

•Fix ERP & scheduling systems in TX

•Addressing key commercial issues with customers

•$12 to $15 million in new business awards

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Summary Income Statement

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Summary Income Statement

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Consolidated Results

Q2 Consolidated Revenue

Q2 Consolidated EBITDA

Consolidated Revenue Breakout

(2011 Full Year)

Business Segment

Customer

Market Segment

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Wheels & Gunite Performance

Q2 Wheels Revenue

Q2 Wheels EBITDA (1)

(1) EBITDA before corporate allocations

Q2 Gunite Revenue

Q2 Gunite EBITDA (1)

(1) EBITDA before corporate allocations

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Brillion & Imperial Segments

Q2 Brillion Revenue

Q2 Brillion EBITDA (1)

(1) EBITDA before corporate allocations

Q2 Imperial Revenue

Q2 Imperial EBITDA (1)

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Trade Working Capital

Historical Working Capital Requirements

Q2 2012 Working Capital Breakout

Q2 2011 Working Capital Breakout

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Free Cash Flow

27

Net Debt & Liquidity

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Full Year Guidance

Class8260Kto270K

Class5-7165Kto175K

Trailer230Kto250K

NetSales$1,000to$1,025

AdjustedEBITDA$95to$100

EPS-Diluted$(0.12)to$(0.05)

CAPEX$70

Depreciation&Amortization$53

CashInterestExpense$32

ExcessPensionContributions$12

TradeWorkingCapitalSourceofCash$9

FreeCashFlow$(10)to$(5)

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Summary

•“Fix & Grow” Strategy being executed

•Long-term market trends remain favorable
heading into 2013 and beyond despite
near-term softness

•Resources focused on key priorities:

•Aluminum Wheels ahead of schedule

•Gunite restructuring on track

•Imperial back under control

•Adequate liquidity and initiatives to
improve it

•Strategic opportunities exist to “Fix &
Grow” the company

•We are executing our plan!

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Segment Revenue

34

Segment Operating Income

35

Segment Adjusted EBITDA

36

Sales & Adjusted EBITDA

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Net Income to EBITDA Reconciliation

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Trade Working Capital

39

Customer Receivables - Net

40

Inventories - Net

41

Accounts Payable

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