Core Molding Technologies Inc · AMEX:CMT
Core Molding Technologies — Southwest Ideas Conference November 2023
25 slides from Core Molding Technologies's conference presentation, Nov 17, 2023
Slide 1: Southwest Ideas Conference November 2023
SOUTHWEST IDEAS CONFERENCE November 2023
Slide 2: Safe Harbor Statements and Non-GAAP Financial Measures
SAFE HARBOR STATEMENTS AND NON-GAAP FINANCIAL MEASURES 2 Certain statements in this Annual Report on Form 10-K constitute forward-looking statements within the meaning of the federal securities laws, which are subject to the "safe harbor" created by Section 27A of the Securities Act of 1933, as amen
Slide 3: Core Molding Technologies
US 36% Canada 26% Mexico 38% CORE MOLDING TECHNOLOGIES The most reliable, innovative and responsive partner in engineered materials and manufacturing solutions: SOLUTION | INNOVATION | MANUFACTURING Diversified Portfolio with Long Term Customer Relationships Building Products Industrial & Utilities
Slide 4: Investment Highlights
✓ Market Leadership Position ✓ Few competitors, high barriers to entry ✓ Large Addressable Market ✓ Long-term relationships with blue-chip companies with single-source manufacturing ✓ Proprietary, Highly-Engineered Products ✓ Single source, technical solutions of structural systems ✓ Product innovat
Slide 5: $10B Addressable Market
> $10B ADDRESSABLE MARKET • Grow wallet share with large customers • Multiple industry channel expansion $2.6B Grow • Market leader in truck & powersports • Focus on higher value solutions Based on management estimates with current process portfolio. Industry Dynamics $2.3B Grow $1.9B Grow $1.9B Gro
Slide 6: Large North American Manufacturing Footprint
LARGE NORTH AMERICAN MANUFACTURING FOOTPRINT *Based on 2022 Product Sales 26% 31% 19% 11% 6% 7% Columbus, OH Matamoros, MX Cobourg, Ontario Winona, MN Gaffney, SC Monterrey, MX 80 presses >1.3M Square Feet Product Sales by Facility* 6
Slide 7: Industry and Customer Diversification
INDUSTRY AND CUSTOMER DIVERSIFICATION 44% Truck 24% Power Sports 11% Building Products 8% Industrial & Utilities 13% Other 2022 Net Product Sales By Industry Truc k Powerspor t Building Products Industrial and Utilities Long-term relationships with blue-chip companies providing single- source manufa
Slide 8: Thermoset and Thermoplastic Processes and Competitors
Thermoset ProcessesThermoplastic Processes Hand Layup Spray Up Primary competitors are single-plant facilities Core operations in Mexico due to heavy labor content SF/SW (Structural Foam or Web Molding) One large competitor & a few small single-facility competitors Material blending and large press
Slide 9: How We Diversify
HOW WE DIVERSIFY 9 Building Products Industrial & Utilities Power Sports Transportation Light Weighting | Durability | Cost Savings | Corrosion Resistance | Parts Consolidation | Recyclability
Slide 10: Four Strategic Growth Initiatives
Organic and Acquisition, New Industries, Deeper Penetration with Existing Customers Revenue Growth FOUR STRATEGIC GROWTH INITIATIVES 10 Unique, High Value Solutions = Higher Margins Technical Solution Sales Operational Excellence, Continuous Improvement Culture Profitability Improvements Reinvestmen
Slide 11: Macro Tailwinds from the Infrastructure Investment and Jobs Act
Water Systems $62B Investment Roads, Bridges & Major Projects MACRO TAILWINDS FROM THE INFRASTRUCTURE INVESTMENT AND JOBS ACT 11 Broadband $110B Investment $65B Investment
Slide 12: Technical Solution Sales
TECHNICAL SOLUTION SALES Conversion Expertise for Railway Data Transmission Trough Concret e Parts Consolidation for Truck Sideboard (step rail) DLFT Hull DLFT + Structural FoamSMC Hull Integrated Material Development & Advanced Manufacturing Engineering for PWCs Structural Foam 48 pcs 1 pc Customer
Slide 13: Growth by Acquisition
• New Core Competencies or Materials • Press Capacity Expansion • Added Material Systems or Processes • Geographic Expansions GROWTH BY ACQUISITION • New Customers • New Industries Priorities Over 50% of 2022 revenues came from processes & materials acquired since 2015 From 2015 To 2022 100% Thermos
Slide 14: Manufacturing Excellence
Excellence drives long term targets in range of 17-19% gross margins MANUFACTURING EXCELLENCE 14 Continuous Improvement in All PlantsImprovements in Underperforming Plants Must Win Battle Major productivity improvements Quality improvements / Scrap reductions New product launch improvements Employee
Slide 15: Sustainability
SUSTAINABILITY The Company is committed to sustainable operational excellence that drives long-term value creation, positive corporate citizenship and sustainable solutions for our customers Internal 30x30 environmental strategy – reduce energy, greenhouse gas emissions and waste 30% by 2030 Custome
Slide 16: Financials
16 FINANCIALS
Slide 17: Selected Financial Information
SELECTED FINANCIAL INFORMATION 17 Short term sales headwinds from macro-economic impacts and customer inventory optimization Diverse industries and customers with long-term sales growth potential Margin improvement resulting from operational improvements and raw material recoveries Controlled fixed
Slide 18: Selected Financial Information
SELECTED FINANCIAL INFORMATION 18 • Sustained strong sales growth since reopening from COVID • 2023 strategic initiative to improve profitability resulting in increasing EBITDA • Increasing profit and tight management of capital providing doubling of ROCE since 2020 $222 $308 $377 $370 $0 $50 $100 $
Slide 19: Long Term Financial Goals
LONG TERM FINANCIAL GOALS Revenues Operating Income Return on Capital Employed December 2022 3 – 5 Years $377MM 4.8% 12.7% >$500MM • Organic growth • Acquisitions • Further industry diversification 8%-10% • Operational improvements • Value selling • Leverage fixed costs 14%-16% • Brick and mortar ad
Slide 20: Cash Flows and Reinvestment
in millions Operating Cash Flows Sustaining Capex Growth Capex Free Cash Flows Free Cash Flows Excluding Growth Capex 2020 28.2$ 1.3$ 2.4$ 24.5$ 26.9$ 2021 12.5$ 6.3$ 5.1$ 1.1$ 6.2$ 2022 19.0$ 7.8$ 8.8$ 2.4$ 11.2$ Total 59.7$ 15.4$ 16.3$ 28.0$ 44.3$ 3 Year Avg. 19.9$ 5.1$ 5.4$ 9.3$ 14.8$ First 9 Mon
Slide 21: Capitalization
in millions As of Sept 30, 2023 Equity 134.0$ Total Debt 23.3$ Capital Deployed 157.3$ Cash on Hand 18.0$ Lines of Credit Availability 50.0$ 68.0$ Debt Leverage Ratio 0.56 CAPITALIZATION 21 $25.0 Revolver $25.0 Term Loan $25.0 Capex Facility Debt Facility (in millions) • Term Loan Interest rate fixe
Slide 22: Contacts
CONTACTS 22 Company Contact John Zimmer Chief Financial Officer jzimmer@coremt.com Investor Contact Sandy Martin / Steven Hooser Three Part Advisors 214.616.2207
Slide 23: Appendix
APPENDIX 23
Slide 24: Net Income (Loss) to Adjusted EBITDA Reconciliation
NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION (1) Includes net interest expense, non-cash periodic post retirement costs and loss on extinguishment of debt. (2) Reflects Cincinnati facility closing. Reconciliation of GAAP to Non-GAAP Financial Measures * Ad just ed EBITDA represent s net incom
Slide 25: Year-End and Return on Capital Employed (ROCE) Reconciliation
YEAR-END AND RETURN ON CAPITAL EMPLOYED (“ROCE”) RECONCILIATION 25 . Reconciliation of GAAP to Non-GAAP Financial Measures * Return on Capital Employed represent s net income b efore, as applicable from t ime t o t ime, ( i) interest expense, net , (i i) p rovis ion (benefit) f or income ta xes, ( i
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