Release Date: January 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss the potential shift towards more Clarios content per vehicle and the opportunity it presents? A: Mark Wallace, CEO of Clarios, explained that the addition of supercapacitors to their portfolio has significantly increased content per vehicle. As vehicles demand more electrical power and autonomous features, multiple energy storage devices will be needed, increasing both OEM and aftermarket content.
Q: How will the $2 billion-plus planned investments in the US be allocated? A: Mark Wallace stated that investments will focus on modernizing facilities with automation and AI, increasing capacity for advanced batteries, enhancing domestic recycling capabilities, and exploring leapfrog technologies like sodium-ion to reduce reliance on foreign supply chains.
Q: Does the financial leverage of Scientific Games impact its ability to pursue growth opportunities? A: Jaspreet Dehl, CFO, noted that Scientific Games has stable cash flows and operational improvements have strengthened its position. The business can self-fund new contracts, including recent wins like the UK lottery and Ohio contracts, without needing additional capital from BBU.
Q: What is the opportunity for Clarios' connected service solutions for fleet operators? A: Mark Wallace highlighted a contract with a European fleet, using battery algorithms to reduce idling and fuel costs, and prevent roadside breakdowns. Clarios is expanding this service to other European and US fleet operators, providing significant value to customers.
Q: How does the re-industrial revolution theme influence BBU's M&A focus? A: Anuj Ranjan, CEO, stated that BBU targets businesses that align with re-industrialization and technology advancement themes, as seen with Clarios and Chemelex. This focus is integral to their investment strategy and pipeline development.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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