Cts Corporation · NYSE:CTS
Cts — Investor Presentation (February 2021)
23 slides from Cts's investor presentation, Feb 9, 2021
Slide 1: February 2021 Investor Presentation
February 2021 Investor Presentation
Slide 2: Forward-looking statements
This presentation contains statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, any financial or other guidance, statements that reflect ou
Slide 3: Solid Foundation With Opportunities For Growth
Solid Foundation With Opportunities For Growth 3 Sales/Technical Office Manufacturing Facility Note: Sales by region and end market based on trailing twelve months sales as of December 31, 2020 We aim to be a leading provider of sensing and motion devices as well as connectivity components, enabling
Slide 4: Broad Product Portfolio Around Targeted Strategy
Broad Product Portfolio Around Targeted Strategy 4 Controls Pedals Piezoelectric Products Position Sensors Switches Temperature Sensors Transducers EMI/RFI Filters Frequency Control Products RF Filters Specialty Capacitors Specialty Resistors Piezoelectric Products Rotary Actuators
Slide 5: Transportation
Transportation 5 Motorcycles Light Vehicles Electric/Hybrid Vehicles Commercial Vehicles/Off-Road Market Sectors Key Customers Relevant Products Accelerator Pedals Position Sensors Temperature Sensors Current Sensors Smart Actuator
Slide 6: Industrial
Industrial 6 Piezoelectric Components Transducers Sensors & Controls Switches EMI/RFI Filters Temperature Sensors Flow Metering Inkjet Print Heads HVAC Systems Market Sectors Commercial Sonar Key Customers Relevant Products
Slide 7: Medical
Medical 7 Piezoelectric Components Sensors & Controls Switches Frequency Control Products EMI/RFI Filters Equipment Control Panel Ultrasonic Imaging Therapeutic Ultrasound Market Sectors Dental Equipment Key Customers Relevant Products
Slide 8: Aero & Defense
Aero & Defense 8 Piezoelectric Components Transducers RF Filters Temperature Sensors Frequency Control Products Relevant Products Market Sectors Key Customers Sonobuoys Hydrophones Torpedo/Missile Control Airplane Communications
Slide 9: Telecom & IT
Telecom & IT 9 Piezoelectric Components RF Filters EMI/RFI Filters Frequency Control Products Relevant Products Market Sectors Key Customers Macro Cell Base Stations Small Cell Base Stations Satellite Communication Wireline/ Network Switching
Slide 10: End Markets Growing Mid-Single Digits
End Markets Growing Mid-Single Digits 10 Transportation Industrial Medical Aero & Defense Telecom & IT SAM $1.9B Booked Business, Share Gains Actuators – Asia/EU customers Sensors for Electric/Hybrid Inductive Accelerator Pedals Increased Sensor Content 3D and textile printing Applications in flow,
Slide 11: Strategic M&A Approach Case Study: Piezoelectric Ceramic Growth Platform
11 Strategic M&A Approach Case Study: Successfully Built Broad Piezoelectric Ceramic Growth Platform Single Crystal Technology Double-Digit Growth 2016 Bulk Technology Single-Digit Growth Pre 2016 SAM : $714M 2017 Tape Cast Technology Single-Digit Growth SAM : $968M Robust Double-Digit Growth Platfo
Slide 12: Sensor Scientific Inc. Acquisition
Sensor Scientific Inc. Acquisition 12 Products Applications Customers Thermistors Thermistor assemblies and probes RTDs and Thermocouples Neonatal applications Lab freezers Fluid warmers Analytical Instruments Company Overview Acquisition Rationale Founded in 1983, facilities in Fairfield, NJ and Ca
Slide 13: Balanced Capital Deployment Approach
Balanced Capital Deployment Approach 13 Capital Structure Leverage = 1.0x - 2.5x EBITDA Operating Cash Flow Return Capital to Shareholders ~4% of Sales 20-40% of Free Cash Flow 12-15% of Sales 60-80% of Free Cash Flow Growth Acquisitions Investment Dividends & Buybacks
Slide 14: Financial Performance Trend and 2021 Guidance
Financial Performance Trend and 2021 Guidance 14 Adjusted Earnings Per Share Sales ($ Millions) $490 $430 Note: 2021E represents guidance provided on February 9, 2021. $1.60 $1.20
Slide 15: Strong Cash Conversion and Balance Sheet
Strong Cash Conversion and Balance Sheet 15 Free Cash Flow ($ Millions) $300 $92 $55 Borrowed Total Facility Low Leverage, Debt to Equity Ratio Solid Pipeline of M&A Targets Disciplined Approach – Strategic Fit, ROIC Note: FCF Conversion = FCF / Adjusted Net Earnings Cash and Debt ($ Millions) FCF F
Slide 16: Financial Framework Targeting 10% Annual Growth
Financial Framework 16 Targeting 10% Annual Growth (Organic + Inorganic)
Slide 17: Appendix
Appendix cts
Slide 18: CTS Core Values
CTS Core Values Ol Play to Win Responsiveness Simplicity Solution Oriented cts
Slide 19: Financial Summary
($ Millions, except percentages and Adjusted Diluted EPS) 19 Financial Summary Note: See Regulation G reconciliations from GAAP to Non-GAAP measures and adjustments. Net Sales Adjusted Diluted EPS Operating Cash Flow Total Debt / Capitalization Depreciation and Amortization Adjusted EBITDA Adjusted
Slide 20: Regulation G Schedules: Adjusted EBITDA
20 Regulation G Schedules ($ Millions, except percentages) Adjusted EBITDA
Slide 21: Regulation G Schedules: Adjusted Net Earnings
21 Regulation G Schedules ($ Millions, except percentages) Adjusted Net Earnings
Slide 22: Regulation G Schedules: Adjusted Diluted EPS, Debt to Capitalization
22 Regulation G Schedules Adjusted Diluted EPS ($ Millions, except percentages) Total Debt to Capitalization
Slide 23: Regulation G Schedules: Free Cash Flow
23 Regulation G Schedules ($ Millions) Free Cash Flow