Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q1 2023 Earnings Presentation
22 slides from Commercial Vehicle's earnings presentation, May 3, 2023
Slide 1: Earnings Presentation Q1 2023
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures These slides contain forward-looking statements that are subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “co
Slide 3: Q1 2023 Highlights
Q1 2023 Highlights FINANCIAL HIGHLIGHTS an % NET SALES ADJUSTED EBITDA $263 $19.8 MILLION MILLION ég < ADJUSTED ADJUSTED NET OPERATING INCOME INCOME $15.4 $9.2 MILLION MILLION Note: US GAAP net income was $8.7M for Q1 2023. GAAP diluted income per share was $0.26 for Q1 2023. CVG BUSINESS HIGHLIGHTS
Slide 4: Transforming revenue mix organically via new customers and vehicle platforms
Transforming revenue mix organically via new customers and vehicle platforms Transforming cost structure through process automation and low-cost production capabilities Delivering best in class quality and service $1 billion revenue run rate, with $350 million in new wins still ramping On track to h
Slide 5: Key CVG Markets - Forecast to Grow
Key CVG Markets - Forecast to Gr > NA Class 8 Truck Build ACT Research and FTR are forecasting 2023 North American Class 8 truck production levels to be between 312,000 and 320,000 trucks. The 2022 actual Class 8 truck builds according to ACT Research was 315,128 units. »> NA Medium Duty Truck Build
Slide 6: Electrical Systems Wins
• • • • 2023 2024 2025 Electrical Systems Wins All Other
Slide 7: Speed + engineering + large scale experience
Speed + engineering + large scale experience Low-cost manufacturing set up for high service, and speed with proprietary digital boards and software Low to medium volumes — sweet spot at target accounts and better margins Complete full vehicle connectivity solutions — high voltage and low voltage Sta
Slide 8: Morocco — Tangier, Mexico — Aldama, Mexico — Agua Prieta
Morocco — Tangier Mexico — Aldama Mexico — Agua Prieta * Expanding our low-cost Electrical Systems O footprint globally ¢ Additional production capacity to support new businesses growth program and wins in-hand All capacity expansion programs on schedule Coupling best-in-class process automation and
Slide 9: 20% 22% 40% 80% 78% 60% 30% 45% 45% 55% 55% 70% 30% 40%
20% 22% 40% 80% 78% 60% 30% 45% 45% 55% 55% 70% 30% 40% 50% 50% 60% 70%
Slide 10: Improve profitability or exit
Improve profitability or exit unprofitable and/or non-strategic business Control cost structure and manufacture in-house what we should Reallocate SG&A, fund and install digital backbone Secular growth in Electric Vehicle market globally Expand and diversify our customer roster Expand product line-u
Slide 11: Adjusted EBITDA (% of revenue) 2022 to 2027
ADJUSTED EBITDA (% of revenue) 2022 2027 2022 2027 Target and win accretive new business to diversify the Company’s customer and product portfolio and increase the Company’s value proposition through innovation Improve the Company's legacy business, renegotiate contracts, optimize costs, and improve
Slide 12: 2023 Outlook is Good
2023 Outlook is Good CVG * 2023 will be another record year of revenue + 3rd Year in a Row * Quarterly sales similar to Q1, possible modest slowdown in 4Q23 tied to lower industry truck build forecast + Based on ACT and FTR truck demand, modest pricing, and continued new business growth additions *
Slide 13: Financial Review
Financial Review May 22028 13
Slide 14: Q1 2023 — Vehicle-Related Business Powered Results
Q1 2023 — Vehicle-Related Business Powered Results Three Months GAAP Measures Ended Mar 31 ($ in millions except for share information) 2023 2022 Revenue $ 262.7 $244.4 Operating Income 14.6 8.4 Operating Income Margin 5.6% 3.4% Diluted EPS 0.26 0.12 Segment Results Net Sales For the Three Months En
Slide 15: Vehicle-Related Segments and Industrial Automation quarterly trends
Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Vehicle-Related Segments Industrial Automation Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
Slide 16: Appendix
M Appendix TOT
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures This earnings presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the non-GAAP measures exclude items that (i) management believes reflect the Company’s multi-year corporat
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures
conciliation of GAAP to Non-GAAP Financial Me (in millions) Operating Income/(Loss) 14.6 8.4 Restructuring 07 1.0 Deferred consideration purchase accounting - 01 Adjusted Operating Income 15.4 9.5 % of Revenues 5.8% 3.9% Net Income/(Loss) 87 40 Interest Expense 29 20 Provision (benefit) for income t
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) Net income/(Loss) 5.1 75 26 4.0 2.5 3.6 (32.0) 87 Interest 28 1.6 17 2.0 21 28 29 29 Provision / (Benefit) for Income Taxes 15 24 1.9 14 0.9 1.3 17.4 3.3 Depreciation 3.8 37 3.8 3.5 37 37 37 3.4 Amortization 0.9 0.9 0.9 0.9 0.8 0.8
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS
Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS CVG (in million: for share information) Q1 2023 Q1 2022 Net income/(Loss) 8.7 4.0 Operating income (loss) adjustments 0.7 11 Hryvnia fair value adjustments on forward exchange contracts - 0.6 Adjusted (benefit) provision for income
Slide 21: Segment GAAP to Non GAAP QTD
Segment GAAP to Non GAAP QTD For the Three Months Ended Mar 31, 2023 (in millions) Solations Sestone Aftermarket automate Corporate Total Operating Income/(Loss) 13.4 61 5.6 (0.9) (9.5) 14.6 Restructuring 01 0.0 - 0.6 - 07 Adjusted Operating Income/(Loss) 13.5 6.1 5.6 (0.2) (9.5) 15.4 % of Revenue 8
Slide 22: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Cash Flow from Operations $ (94) $ 39 $ (89) $ (214) $ 169 $ 383 $ 35.2 $ 01 Capital Expenditures! (5.2) (4.5) (6.2) (3.6) (5.0) (3.9) (7.2) (3.3) Free Cash Flow (14
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