Cts Corporation · NYSE:CTS
Cts — Investor Presentation (October 2021)
22 slides from Cts's investor presentation, Oct 27, 2021
Slide 1: October 2021 Investor Presentation
October 2021 Investor Presentation
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
This document 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 our cu
Slide 3: Solid Foundation With Opportunities For Growth
Solid Foundation With Opportunities For Growth 3 Note: Sales by region and end market based on trailing twelve months sales as of September 30, 2021 We aim to be a leading provider of sensing and motion devices as well as connectivity components, enabling an intelligent and seamless world. Diversifi
Slide 4: Investment Thesis
Investment Thesis 4 Positioned for Growth Strong Competitive Position Successful Business Model Fundamental market trends underpinning future growth Accelerating new business awards Complementing organic growth with targeted M&A Flexible, responsive and customer-oriented organization Long standing r
Slide 5: Transportation
Transportation 5 Motorcycles Light Vehicles Electric/Hybrid Vehicles Commercial Vehicles/Off-Road Market Sectors Key Customers Accelerator Pedals Position Sensors Current Sensors Smart Actuator Revenue Relevant Products SAM % of total Revenue Goal Light Vehicles 30-50% Commercial Vehicles 10-20% $3.
Slide 6: Industrial
Industrial 6 Flow Metering Inkjet Print Heads HVAC Systems Market Sectors Commercial Sonar Key Customers Piezoelectric Components Transducers Sensors & Controls Switches EMI/RFI Filters Temperature Sensors Relevant Products Revenue 20-30% $2.2B SAM % of Total Revenue Goal Note: Percentage of sales b
Slide 7: Medical
SAM Medical 7 Equipment Control Panel Ultrasonic Imaging Therapeutic Ultrasound Market Sectors Dental Equipment Key Customers Piezoelectric Components Sensors & Controls Switches Frequency Control Products EMI/RFI Filters Relevant Products Revenue Note: Percentage of sales by end market based on tra
Slide 8: Aero & Defense
Aero & Defense 8 Market Sectors Key Customers Sonobuoys Hydrophones Torpedo/Missile Control Airplane Communications Piezoelectric Components Transducers RF Filters Temperature Sensors Frequency Control Products Relevant Products Revenue 5-15% $0.9B SAM % of Total Revenue Goal Note: Percentage of sal
Slide 9: Telecom & IT
Telecom & IT 9 Market Sectors Key Customers Macro Cell Base Stations Small Cell Base Stations Satellite Communication Wireline/ Network Switching Piezoelectric Components RF Filters EMI/RFI Filters Frequency Control Products Relevant Products Revenue $1.9B 5-10% SAM Note: Percentage of sales by end
Slide 10: Financial Performance Trend and 2021 Guidance
Financial Performance Trend and 2021 Guidance 10 Expecting Full Year Results Above Pre-Covid Levels
Slide 11: Strong Cash Conversion and Balance Sheet
Strong Cash Conversion and Balance Sheet 11 Cash Availability for Strategic Acquisitions
Slide 12: Strategic M&A Approach Case Study: Ceramic-based Temperature Sensor Growth Platform
12 Strategic M&A Approach Case Study: Successfully Built Ceramic-based Temperature Sensor Growth Platform Temperature sensors for Industrial applications 2019 Position Sensing, Ceramic materials Pre 2019 SAM : $1,900M 2020 Temperature sensors for Medical applications SAM : $1,100M Robust Growth Plat
Slide 13: Capital Structure
Capital Structure Leverage 1.0x - 2.5x EBITDA Balanced Capital Deployment Approach
Slide 14: Financial Framework
Financial Framework 14 Targeting 10% Annual Growth (Organic + Inorganic)
Slide 15: Appendix
Appendix cts
Slide 16: CTS Core Values
CTS Core Values ps iO) Play to Win Responsiveness © © Simplicity Solution Oriented cts
Slide 17: Pension Plan Settlement Complete
Pension Plan Settlement Complete 17 Plan status on September 30, 2021 Overfunded on cash basis. Plan termination steps in process Lump sum settlement payout completed in Q2 2021. 366 participants elected the lump sum payout and approximately $36m of the liability was settled with plan assets. Purcha
Slide 18: Financial Summary
($ Millions, except percentages and Adjusted Diluted EPS) 18 Financial Summary Net Sales Adjusted Diluted EPS Operating Cash Flow Total Debt / Capitalization Depreciation and Amortization Adjusted EBITDA Adjusted EBITDA % of Sales Gross Margin Gross Margin % of Sales 2018 $470.5 $1.53 $58.2 11.7% $2
Slide 19: Regulation G Schedules: Adjusted EBITDA
19 Regulation G Schedules ($ Millions, except percentages) Adjusted EBITDA
Slide 20: Regulation G Schedules: Adjusted Net Earnings
20 Regulation G Schedules ($ Millions, except percentages) Adjusted Net Earnings
Slide 21: Regulation G Schedules: Adjusted Diluted EPS and Total Debt to Capitalization
21 Regulation G Schedules Adjusted Diluted EPS ($ Millions, except percentages) Total Debt to Capitalization
Slide 22: Regulation G Schedules: Free Cash Flow
22 Regulation G Schedules ($ Millions) Free Cash Flow