Core Molding Technologies Inc · AMEX:CMT
Core Molding Technologies — Investor Presentation (August 2021)
28 slides from Core Molding Technologies's investor presentation, Aug 23, 2021
Slide 1: Investor Presentation
I N V E S T O R P R E S E N T A T I O N
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation, our remarks, and answers to questions contains forward-looking statements within the meaning of the federal securities laws. As a general matter, forward-looking statements are those focused upon future plans, objectives or performance as opposed to hist
Slide 3: Company Overview
3 Company Overview 3 2020 Net Sales $222 MILLION Employees 1,600 NYSE CMT Headquarters COLUMBUS OHIO Founded in 1980 Incorporated in 1996 Core Molding Technologies is a custom manufacturer of composites and highly- specialized plastic products for diverse industries
Slide 4: Composite Industry Growth
Composite Industry Growth 4 Composite industry growing at 7.7% per year across multiple markets provides the Company with significant growth opportunities Carbon FiberCAGR = 7.7% Composites Market Analysis, 2020 ; Grand View Research, Inc., USA. Glass Fiber Other Wind Energy Aerospace & Defense Elec
Slide 5: Leverage Our Existing Strengths to Grow the Business
5 Leverage Our Existing Strengths to Grow the Business • Over 40 years of experience in structural plastics manufacturing • Design for manufacturing and tailored material expertise • Twenty years of experience operating in Mexico • Over 75% of revenues from long term customers (more than 10 years) •
Slide 6: Market Applications
Market Applications Why They Choose Core Building Products Lattice, Decking, Cabinets Durability Cost savings Material substitution Powersports Personal Watercraft, ATV, On-board Vehicles Strength to weight ratio Part consolidation Corrosion resistance In-mold color Transportation HD / MD Truck, Bus
Slide 7: Core Process and Material Offering
7 Core Process and Material Offering Thermoset (TS) Thermoplastic (TP) Sheet Molding Compound (SMC) Compression Molded Press Size: 250 – 4,500 Tons Class A Surface Fiber reinforced structure Direct Long-Fiber Thermoplastic (DLFT) Compression Molded Press Size: 500 – 5,500 Tons Non-Class A Surface Fi
Slide 8: CORE Value Proposition
CORE Value Proposition Customer Benefit Applications Conversion Expertise • Lower Total Cost • Light-weighting • Improved performance Integrated Material Development and Advanced Manufacturing Engineering • Unique solutions – Designed from material formulation to final production • Improved performa
Slide 9: Culture is one of our Competitive Advantages
9 CULTURE is one of our Competitive Advantages Companies that effectively manage their culture deliver 20% higher returns to shareholders relative to comparable companies over a five-year period. “Winners Win” Transparency Mutual Respect Courage to Challenge Learning Organization
Slide 10: Serving a Diverse Industry Base of Customers
10 Serving a Diverse Industry Base of Customers 91% 43% 5% 22% 19% 5% 4% 12% 0% 25% 50% 75% 100% 2011 2020 Revenue Mix By Industry (1) Truck Power Sports Building Products Utilities Other Diverse industry base provides business stability Industry diversification provides opportunity to sell entire l
Slide 11: Diversified Customer Base
Diversified Customer Base No customer makes up more than 18% of the Company’s business Customers are sole source on programs providing predictable revenue streams Blue chip customer base with long-term relationships Customers in multiple industries with wide range of needs for structural plastics 18
Slide 12: Strategic Manufacturing Footprint
12 Strategic Manufacturing Footprint 478 338 274 140 87 61 Matamoros Columbus Cobourg Gaffney Winnona Monterrey Floor Space Square Feet (in 000's) 30.0% 24.0% 22.0% 9.0% 5.0% 5.0% 5.0% Columbus Matamoros Cobourg Cincinnati (1) Winona Gaffney Monterrey 2020 Sales Revenue (by facility) Columbus, OH Ma
Slide 13: Strategic Direction
S T R A T E G I C D I R E C T I O N
Slide 14: Long-term Strategy
Utilize conversion expertise to create unique solutions Integrated partner with customer Enter new markets and products Growth in industries that value conversions / solutions Stability to business systems and profit streams Focus on emerging and growing industries 14 Long-term Strategy Technical So
Slide 15: Strategic Investments
15 Strategic Investments Research & Development Material functionality and performance Ultra light Class A materials Material and process integration Strategic Investments Speed to Market Additive compression molds Design simulation and testing Robust launch processes Sales Force Transformation Impl
Slide 16: Long Term Business Plan Goals
16 Long Term Business Plan Goals Revenue - Grow Revenue: • Increased Sales in Current and Targeted Industries • Strategic Acquisitions Profitability - Increase Operating Income: • Operational Improvements • Higher Margin New Business Increase Return on Capital Employed (ROCE)(1): • Increase Profitab
Slide 17: Acquisition Strategy
17 Acquisition Strategy Before Acquisitions After Acquisitions Diversified Revenues 100% from base business Over 46% of 2020 revenues came from processes and materials acquired since 2015 Expanded Material Capabilities / Reduced Material Concentration Risk 100% Thermosets 54% Thermosets / 46% Thermo
Slide 18: Financial Information
F I N A N C I A L I N F O R M A T I O N
Slide 19: Operational Performance
19 Operational Performance Company undertook an operational turnaround in 2019: • Replaced operational management team • Implemented new operational systems and processes • Increased repair and maintenance spending to improve asset reliability Returned to profitability in 2020 on lower net sales wit
Slide 20: Operational Turnaround – Get the Basics Right
20 Operational Turnaround – Get the Basic Right Execution Plan Safety First program implemented (Equipment & People) Company wide Standard Daily Operating System (DOS) Organizational improvement & development plan / Employee engagement & Retention Electronic Preventive Maintenance / Spare parts syst
Slide 21: Operational Transformation
21 Operational Transformation Core Completed an Operational Turnaround in 2019 which Returned the Company to Profitability in 2020 15.9% 16.4% 17.2% 18.2% 16.0% 15.2% 10.1% 7.6% 15.5% 17.3% 0.0% 5.0% 10.0% 15.0% 20.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 Gross Margin Turnaround - Onl
Slide 22: Capital Expenditures
22 Capital Expenditures Sustaining Capital Expenditures • Increased sustaining capital expenditures improving asset reliability • Increased 2021 spending makes up for 2020 reduced spending due to COVID • Five year average spend of 2.6% of product sales • Company plans to continue to spend 2.5% - 3.0
Slide 23: Capitalization
23 Capitalization Wells Fargo Term Notes $15.2 million Libor + 300bps FGI (net of $1.2mm deposit) $11.8 million Fixed 8.25% Total Commitment $25.0 million Libor + 175 to 225 bps Available $23.7 million Accordion Commitment $10.0 million As of June 30, 2021 In millions Shareholders' Equity $102.1 Sen
Slide 24: Why Core Molding Technologies
24 Why Core Molding Technologies S U M M A R Y • Composite industry growing faster than the overall economy • Over 40 years of experience in manufacturing large structural composite parts • Successful 2019 turnaround with new operating management, systems and processes • Diversified customer and ind
Slide 25: Contact
25 Contact Corporate Offices: Core Molding Technologies, Inc. 800 Manor Park Drive Columbus, Ohio 43228 Company Representative: John Zimmer Chief Financial Officer 614.870.5604 jzimmer@coremt.com
Slide 26: Appendix
26 Appendix
Slide 27: Historical Financial Information
27 Historical Financial Information in 000's 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 Net Sales 162,450$ 144,125$ 175,204$ 199,068$ 174,882$ 161,673$ 269,485$ 284,290$ 222,356$ 153,290$ Gross Margin 25,848$ 23,574$ 30,186$ 36,252$ 27,906$ 24,631$ 27,141$ 21,506$ 34,474$ 26,454$ Gross Mar
Slide 28: Historical EBITDA
28 Historical EBITDA in 000's 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 Net Income 8,190$ 6,866$ 9,634$ 12,050$ 7,411$ 5,459$ (4,782)$ (15,223)$ 8,165$ 7,542$ Income Tax Expense (Benefit) 3,966$ 3,034$ 4,891$ 6,118$ 3,836$ 2,286$ (664)$ (355)$ (3,618)$ 2,894$ Interest Expense 334$ 214$ 12
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