Eastern Company (the) · NASDAQ:EML
Eastern Company (the) — Investor Presentation (December 2021)
19 slides from Eastern Company (the)'s investor presentation, Dec 9, 2021
Slide 1: The Eastern Company Investor Presentation December 2021
The Eastern Company 0 Investor Presentation December 2021
Slide 2: Forward-Looking Statement
Forward-Looking Statement: Ey Statements in this document about our future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the rules, regulations and re
Slide 3: Statement on Non-GAAP Measures
Statement on Non-GAAP Measures Te wasn This presentation includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) such as Adjusted Earnings Per Share, Adjusted EBITDA, and Free Cash Flow and certain ratios and other metrics derived there
Slide 4: Allocate capital to maximize returns to shareholders
Allocate capital to maximize returns to shareholders Maintain a strong balance sheet with ample flexibility Grow and build scale in our three core businesses — capitalizing on accelerators Generate cash flow from more efficient and less capital intensive operations
Slide 5: Three core businesses
Wm") WELVAC Leading provider of engineered turn-key packaging as well as blow mold and injection blow mold tooling serving diverse markets, including: truck, automotive, packaged consumer goods and pharmaceuticals. Global manufacturer and designer of access hardware systems, providing custom-enginee
Slide 6: Diversified Vehicle End-markets
Diversified Vehicle End-markets Estimated Sales by End-Market each submarket / application * Less cyclical due to market diversity * ‘Niche-player customers including chassis manufacturers and specialty Other industrial Go mercial vehicle builders, e.g,, Fard, Navistar, Pekice Freightliner, Mitsubis
Slide 7: Net Sales
Net Sales (S millions) 283.9 weer 234.3 2ane ce pee CAGR $144.6 137.6 201 2016 2017 2018 2019 2020 LIM 921" * actus both coatiming and discontinued operations: 12 months ending October? 2021 2015-2021 Sales growth (Percent of growth) °° Organic sales represents the sum of the year-over-year chang in
Slide 8: Component Custom returnable transport packaging
-— ES Component Custom returnable transport packaging diy @ \ tia OEM assembly plants — Industry leader in the approximately $1.0-1.5 billion market for custom returnable packaging solutions for supply chain applications. Highly engineered, value-added, and turn-key product offering, including desig
Slide 9: Returnable Packaging Market
able Packaging Market Ese Returnable Packaging Market — North America Primary end-markets 100% = Approximately $4 billion BY «Automotive Custom f= + Commercial vehicles engineered = Approx. $1.0-1.5 > a industria Si Other industrial + Aerospace Source: Returable Packaging Assocation; Easter estimate
Slide 10: Secular Returnable Packaging Demand Growth
Secular Returnable P Number of planned new vehicle launches in North America B 6 & 53 Average = 60) Increase be =61% 35_ 34 “Average = 37 2019 2020 2021F 2022F 2023F 2024F 2025F aging Demand Grow Future use of retumable transport packaging Percent of respondents «3. Increase significantly - Loree si
Slide 11: Eberhard Manufacturing: Electrifying Vehicular Hardware
Eberhard Manufacturing: Elec’ ing Vehicular Hardv * Industry leader in domestic vehicular hardware solutions for commercial vehicle and vehicle accessory manufacturers. * Strong recurring sales from participation in leading OEM programs. + Highly engineered, value-added product offering, supported b
Slide 12: North America IoT market revenue by application
North America loT market revenue by application, 2015 — 2022 $ Billion 600 ™ Consumer electronics ® Manufacturing 500 = Healthcare Retail Priorit 400 = Transportation ‘cages "Others 300 200 100 7 2015 2016 2017 2018 2019 2020 2021 2022 Source: Grandview Research nc. [oT Market Analysis And Forecasts
Slide 13: Leader in commercial vehicle vision system design and production
Leader in commercial vehicle vision system design and production. Strong recurring sales to very long-term commercial vehicle programs — average program life more than 10 years. Well positioned to continue to grow and consolidate vision system opportunities. New electric truck expanding the market f
Slide 14: Vision-based object detection
a-based object detection ble detection zone icon in the mirror or ry/exclusive software s ing detection up to 80” Target markets Len Motorhomes iD Cut-away vans a) Medium duty chassis wood Pe] Heavy duty trucks 4
Slide 15: Company transformation timeline
‘August Viak appointed President & CEO January 2017 New leadership April 2017 appointed at Acquisition Eberhard of Velvac and atILC Ine. June 2018 Acquisition of Load N Lock August 2019 Acquisition of Big 3 Precision July 2020 Acquisition of Hallink RSM November 2020 January 2021 ‘New President Cons
Slide 16: Path to becoming a $100 million EBITDA company
Build scale at Big 3 Precision (including Path to becoming a $100 million EBITDA Hallink) and at Eberhard (combination with company Illinois Lock) $ millions Ramp organie growth by taking advantage of io favorable market trends and digitization ‘opportunities. Invest in compelling M&A growth opportu
Slide 17: Statement of Operations and Balance Sheet
Statement of Operations and Balance Sheet Sailions 3MoutisEnded —_ 9’ Months Ended Ocwber2, October October Octber3, 2001 3.2000, 2.2001 2020 Net Sates 3639 $557 Sige siaT. (Gross Margin 52 34 M7 S386 Product Development expense GH @H wD GH ‘Selling & Administrative expenses G4) G8) ATH «G33 Opernti
Slide 18: Adjusted EBITDA Reconciliation
Reconciliation 3 months ended October October 3, 2.2001 2020 Reporied Net income fom 8 3.2 continning operations * = Terest expense soa $05 Provision for income taxes sto sio Depreciation and amortization $1.7 sis Gain on Sale of Foeshard coupe 00 $00 Factory relocation sole $03 ‘Transaction expense
Slide 19: Contact information