Matthews International Corporation · NASDAQ:MATW
Matthews International — Investor Presentation (July 2023)
43 slides from Matthews International's investor presentation, Jul 31, 2023
Slide 1: Corporate Presentation July 2023
www.matw.com | Nasdaq: MATW © 2023 Matthews International Corporation. All Rights Reserved. CORPORATE PRESENTATION July 2023
Slide 2: Disclaimer
© 2023 Matthews International Corporation. All Rights Reserved. DISCLAIMER 2 Any forward-looking statements contained in this presentation are included pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and
Slide 3: A History of Innovating and Creating
© 2023 Matthews International Corporation. All Rights Reserved. A HISTORY OF INNOVATING AND CREATING Matthews today builds on its legacy with development of new technologies that provide a platform for continued evolution and growth. 3 The SGK Brand Solutions segment is a leading provider of packagi
Slide 4: Matthews Historical Revenue and Adjusted EBITDA
© 2023 Matthews International Corporation. All Rights Reserved. 4 ‘* The Segment results do not include Corporate and Non-Operating Expense of $56,602 for FY20, $64,227 for FY21 and $58,323 for FY22. Total Adjusted EBITDA as defined by the company as earnings before interest, income taxes, depreciat
Slide 5: Key Figures
© 2023 Matthews International Corporation. All Rights Reserved. KEY FIGURES 5 $1.76 BILLION FY22 Consolidated Revenue 6 CONTINENTS 30+ COUNTRIES 300+ WORLDWIDE LOCATIONS Europe 25% Asia & Pacific 5% Americas 70% FY22 Total Sales by Region FY22 Total Sales by Segment 48% 33% 19% 300+ WORLDWIDE LOCATI
Slide 6: Industrial Technologies
© 2023 Matthews International Corporation. All Rights Reserved. INDUSTRIAL TECHNOLOGIES
Slide 7: Matthews Industrial Technologies Our Businesses
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS INDUSTRIAL TECHNOLOGIES OUR BUSINESSES 7 MATTHEWS ENGINEERING Advanced tooling and equipment supporting next-generation lithium-ion battery production WAREHOUSE AUTOMATION Software & hardware control solutions that enable produ
Slide 8: Matthews Engineering
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS INDUSTRIAL TECHNOLOGIES MATTHEWS ENGINEERING 8 Creators of world-leading energy and converting technologies Matthews Engineering is a global team that turn ideas into powerful technologies Over 70 years of experiences as a prod
Slide 9: Energy Solutions
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS INDUSTRIAL TECHNOLOGIES ENERGY SOLUTIONS 9 Advanced calendering system enables patented lithium-ion dry-battery electrode (DBE) manufacturing and embossing cylinders used in hydrogen fuel cells and electrolyzers by automotive a
Slide 10: Lithium-Ion Battery Structure and Principle of Operation
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS INDUSTRIAL TECHNOLOGIES LITHIUM-ION BATTERY STRUCTURE AND PRINCIPLE OF OPERATION 10 CYLINDRICAL POUCHPRISMATIC CELL DESIGN
Slide 11: DBE Calendering Solutions
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS INDUSTRIAL TECHNOLOGIES Engineered to produce dry electrodes as they allow for powder processing and lamination in only one production step versus multiple steps and machinery required in current processes. DBE CALENDERING SOLU
Slide 12: Dry vs Wet Coated Electrodes
© 2023 Matthews International Corporation. All Rights Reserved. SLURRY MIXING COATING & DRYING CALENDERING SOLVENT RECOVERY + 12 MIXING CALENDERING & LAMINATING DRY COATED ELECTRODES WET COATED ELECTRODES MATTHEWS INDUSTRIAL TECHNOLOGIES 75% Reduction in Utilities Eliminates Toxic Solvents & Improve
Slide 13: Energy Solutions Growth
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS INDUSTRIAL TECHNOLOGIES 13 Note: All figures reflect fiscal years ended September 30th. ENERGY SOLUTIONS GROWTH Energy Storage Solutions Sales ($mm)* Growing demand for fuel efficient and low emissions vehicles Increasing gover
Slide 14: Energy Opportunities Beyond EV
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS INDUSTRIAL TECHNOLOGIES 14 ENERGY OPPORTUNITIES BEYOND EV Battery Hydrogen Fuel Cells Rollers & After Sales Service Converting ✓ “All-in-one” electrode calendering lines ✓ Lab/pilot scale calender machines ✓ Current collector p
Slide 15: Matthews Industrial Automation
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS INDUSTRIAL TECHNOLOGIES Creators of premier industrial automation applications. Designs manufacturing technologies and solutions for industrial automation applications that mark, identify, track, control and pick products at th
Slide 16: Warehouse Automation
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS INDUSTRIAL TECHNOLOGIES Delivers industry-leading technologies that integrate dynamic material handling applications, increasing productivity in ecommerce, omnichannel fulfillment centers, and manufacturing facilities Our Produ
Slide 17: Warehouse Automation Market
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS INDUSTRIAL TECHNOLOGIES 17 WAREHOUSE AUTOMATION Global Warehouse Automation Market Size ($bn) Key Megatrends Driving Growth Speed of shipping Growth of e-commerce Labor shortages in warehouse • Consumers expect faster delivery
Slide 18: Product Identification Addressable Market
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS INDUSTRIAL TECHNOLOGIES 18 MARKET OPPORTUNITY PRODUCT IDENTIFICATION ADDRESSABLE MARKET Significant market opportunity for organically developed product. Market Opportunity New Market Opportunity Limited Offering Matthews A Mar
Slide 19: Matthews Memorialization
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS MEMORIALIZATION
Slide 20: Matthews Memorialization
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS MEMORIALIZATION Helping families move from grieving to remembrance for nearly 100 years Leading provider of products, business solutions and technology services to cemeteries, funeral homes, and monument dealers MATTHEWS MEMORI
Slide 21: Products & Solutions
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS MEMORIALIZATION 21 PRODUCTS & SOLUTIONS CEMETERY PRODUCTS FUNERAL HOME SOLUTIONS CREMATION & INCINERATION EQUIPMENT MARKET POSITION CORE GEOGRAPHIES North America, Italy, Australia United States Global Bronze Memorials - #1 Gra
Slide 22: Memorialization Competitive Advantage
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS MEMORIALIZATION 22 MEMORIALIZATION COMPETITIVE ADVANTAGE OPERATOR OF SCALE • Leadership position and barriers to entry create strong margins and stable cash flow generation STRONG BRAND & REPUTATION • Respected and growing mark
Slide 23: Stable Demand with Growth Potential
© 2023 Matthews International Corporation. All Rights Reserved. MATTHEWS MEMORIALIZATION 23 STABLE DEMAND WITH GROWTH POTENTIAL Casketed Deaths vs. Non-casketed Deaths1 Sales of Cremation Products ($m)2 Relatively stable demand driven by predictable trends: increased deaths and rising cremation rate
Slide 24: SGK Brand Solutions
© 2023 Matthews International Corporation. All Rights Reserved. SGK BRAND SOLUTIONS
Slide 25: SGK Brand Solutions
© 2023 Matthews International Corporation. All Rights Reserved. SGK BRAND SOLUTIONS Creators of experiences and solutions, we simplify marketing and amplify brands SGK Brand Solutions connects many of the largest global consumer products companies through every step of the packaging continuum – from
Slide 26: Packaging Continuum
© 2023 Matthews International Corporation. All Rights Reserved. SGK BRAND SOLUTIONS SGK BRAND SOLUTIONS PACKAGING CONTINUUM 26 Brand Development Assem ble Team Strategy / Creative Adaptive Merchandising Pre-Media Tooling PrinterCPG Brand Deployment Brand Delivery
Slide 27: Core Packaging
© 2023 Matthews International Corporation. All Rights Reserved. SGK BRAND SOLUTIONS SGK BRAND SOLUTIONS 27 CORE PACKAGING
Slide 28: Core Packaging Services and Diverse Client Base
© 2023 Matthews International Corporation. All Rights Reserved. SGK BRAND SOLUTIONS SGK BRAND SOLUTIONS 28 CORE PACKAGING SERVICES GK BRAND SOLUTIONS DIVERSE CLIENT BASE FOOD/ BEVERAGE CLIENTS GLOBAL PHARMA/ HEALTHCARE CLIENTS GLOBAL RETAILER CLIENTS OTHER LEADING BRANDS
Slide 29: Investment Highlights and Financial Overview
© 2023 Matthews International Corporation. All Rights Reserved. 29 INVESTMENT HIGHLIGHTS AND FINANCIAL OVERVIEW
Slide 30: Key Investment Highlights
© 2023 Matthews International Corporation. All Rights Reserved. 30 GROWTH OPPORTUNITIES SUPPORTED BY STABLE CORE BUSINESSES 1 FAVORABLE COMPETITIVE POSITIONS IN ATTRACTIVE ADDRESSABLE MARKETS 2 DISCIPLINED TRACK RECORD OF ACQUISITIONS AND INTEGRATION 4 STRONG AND EXPERIENCED MANAGEMENT TEAM 5 3 KEY
Slide 31: Financial Overview
© 2023 Matthews International Corporation. All Rights Reserved. 31 Financial Overview
Slide 32: Debt Reduction and Growth
© 2023 Matthews International Corporation. All Rights Reserved. 32 Debt Reduction • Historically maintained a modest leverage profile • Publicly stated Net Debt Leverage Ratio (1) target of 3.0x or less • Continued emphasis on leverage, balanced growth and share repurchase • Settled the principal U.
Slide 33: Financial Summary
© 2023 Matthews International Corporation. All Rights Reserved. 33 FINANCIAL SUMMARY (Unaudited) 2020 2021 2022 Sales: Memorialization $ 656,035 $ 769,016 $ 840,124 Industrial Technologies 228,453 284,495 335,523 SGK Brand Solutions 613,818 617,519 586,756 Consolidated Sales $ 1,498,306 $ 1,671,030
Slide 34: ESG Overview
© 2023 Matthews International Corporation. All Rights Reserved. 34 ESG Overview
Slide 35: Business Solutions to Drive Efficiency and Environmental Performance
© 2023 Matthews International Corporation. All Rights Reserved. 35 Business Solutions to Drive Efficiency and Environmental Performance • Provider of Energy storage solutions including battery production technology for electric vehicles • Waste-to-Energy solutions with projects in UK and Europe • Cr
Slide 36: Appendix
© 2023 Matthews International Corporation. All Rights Reserved. 36 Appendix
Slide 37: Our Executive Team
© 2023 Matthews International Corporation. All Rights Reserved. Steven F. Nicola Chief Financial Officer & Secretary • 2003: Named Chief Financial Officer • 2001: Vice President, Accounting and Finance • 1995: Corporate Controller • 1992: Joined Matthews • Prior to Matthews: Steve worked at Coopers
Slide 38: Adjusted EBITDA Non-GAAP Reconciliation
© 2023 Matthews International Corporation. All Rights Reserved. NON-GAAP RECONCILIATION (Unaudited) 38 APPENDIX B T T L ADJUSTED EBITDA Fiscal Year Ended September 30, 2020 2021 2022 Net (loss) income $ (87,652) $ 2,858 $ (99,828) Income tax (benefit) provision (18,685) 6,375 (4,391) (Loss) income b
Slide 39: Adjusted Net Income & EPS Non-GAAP Reconciliation
© 2023 Matthews International Corporation. All Rights Reserved. 39 APPENDIX C ADJUSTED NET INCOME & EARNINGS PER SHARE NON-GAAP RECONCILIATION (Unaudited) Fiscal Year Ended September 30, 2020 2021 2022 per share per share Net (loss) income attributable to Matthews $ (87,155) $ (2.79) $ 2,910 $ 0.09
Slide 40: Constant Currency Sales Non-GAAP Reconciliation
© 2023 Matthews International Corporation. All Rights Reserved. * See Disclaimer (page 2) for Management’s assessment of supplemental information related to constant currency sales and adjusted EBITDA. 40 APPENDIX D CONSTANT CURRENCY SALES NON-GAAP RECONCILIATION (Unaudited) (In thousands) Memoriali
Slide 41: Net Debt & Net Debt Leverage Ratio
© 2023 Matthews International Corporation. All Rights Reserved. 41 APPENDIX E NET DEBT & NET DEBT LEVERAGE RATIO NON-GAAP RECONCILIATION (Unaudited)
Slide 42: Free Cash Flow Non-GAAP Reconciliation
© 2023 Matthews International Corporation. All Rights Reserved. 42 APPENDIX F FREE CASH FLOW NON-GAAP RECONCILIATION (Unaudited)
Slide 43: Robust Cash Flow History
© 2023 Matthews International Corporation. All Rights Reserved. 43 Note: All figures reflect fiscal years ended September 30th; Historical FY1994 – FY2018 reflect amounts as reported in the Company's 10-K filings for those fiscal years. See Disclaimer (Page 2) for Management’s assessment of suppleme
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