Slide 1: Growth Over Market
GROWTH OVER MARKET GENTEX Q 3 2024 INV ESTO R P RESENTATION 1 OCT 25, 2024
Slide 2: Safe Harbor for Forward-Looking Statements
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private SecuritiesLitigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking
Slide 3: Performance
$2.3B $266.9M $183.7M 2023 Revenue Operating Expenses (E, R&D and S, G&A) Capital Expenditures PERFORMANCE 33.2% $93.6M Gross Margin 15.2% Depreciation & Performance Annual Tax Rate Amortization GENTEX Q 3 2024 INV ESTO R P RESENTATION 3 OCT 25, 2024
Slide 4: Guidance
$2.35 - 2.4B 15 – 15.5% Revenue Annual Tax Rate 2024 33.5 – 34% $150 – 175M GUIDANCE Gross Margin Capital Expenditures Updated Oct 25, 2024 $295 – 305M $90 - 95M Operating Expenses Depreciation (E, R&D and S, G&A) & Amortization 2025 GUIDANCE $2.45 – $2.55B Revenue Updated Oct 25, 2024 GENTEX Q 3 20
Slide 5: Business Environment in Flux
BUSINESS ENVIRONMENT IN FLUX • Today’s business environment: －Light vehicle production declines －Chip shortage －Supply chain issues Global Light Vehicle Volumes －Record inflation －Labor shortage • Gentex is systematically tackling each of these issues through creative ideas • Content growth through
Slide 6: Growth Through Features and Vehicle Content
GROWTH THROUGH FEATURES AND VEHICLE CONTENT 2017 95M Vehicles 2023 89.8M Vehicles 2024 88.5M Vehicles $1.79B Revenue $2.3B Revenue $2.35-2.4B Revenue Global LVP Revenues 100,000,000 $2,500,000,000 90,000,000 80,000,000 $2,000,000,000 70,000,000 60,000,000 $1,500,000,000 50,000,000 40,000,000 $1,000,
Slide 7: IEC and OEC – Developing Our Market
IEC AND OEC – DEVELOPING OUR MARKET • IEC – Interior Electrochromic Mirrors – 31.8M units in 2023 • OEC – Outside Electrochromic Mirrors – 18.8M units in 2023 Mirror Volume 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Slide 8: Marketshare Over Time
MARKETSHARE OVER TIME • GNTX has maintained a consistent market share in the automotive market while continuing to grow the total number of electrochromic mirrors －Quality and reliability －Product portfolio – advanced features help ”pull” EC onto new vehicles －Profitability for our customers, prefer
Slide 9: FDM Gains
FDM GAINS FDM Volume • Shipping on 19 OEMs and more 3000000 than 124 nameplates (as of 10/25/24) 2500000 • Growth in premium vehicles, 2000000 mass market vehicles, and work vans 1500000 • Targeting +500k unit growth in 2024 1000000 • GNTX is positioned well for continued 500000 opportunities in new
Slide 10: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY • Utilizing Free Cash Flow －Capital Expenditures • $225-250M/year －Dividends - $.48 per share annually • $112M per year • Dividend policy will remain at this level until we achieve record net Income levels －M&A • Currently focused on new tech based on valuation models and
Slide 11: Capital Allocation Strategy (cont'd)
CAPITAL ALLOCATION STRATEGY (cont’d) • New Facilities/Expansions －China office – Light Final Assembly - opened in 2022 －State Street South Expansion – opened in 2023 －Grand Rapids Cottage Grove – opened in 2023 －Grand Rapids 25 Ottawa – opened in 2023 －North Riley #3 – 2024 opening －State Street Nor
Slide 12: Return to Shareholders
RETURN TO SHAREHOLDERS Since 2014, GNTX has repurchased and retired more than 100M shares. 2023 $0.48 $800.0 RETURN OF CAPITAL Dividend Per Share $700.0 $708.2M $116.6 $112.2M $600.0 Dividends Paid $500.0 $447.8M $439.9M MILLIONS USD $405.7M $400.0 $116.3 4.93M $340.2M $117.2 $115.3 $300.0 $264.5M $
Slide 13: Margin Recovery
MARGIN RECOVERY • 2019 – 37% Gross Margin －HomeLink, FDM, OEC, and Aerospace growth • 2020-2022 – Headwinds －APRs, SmartBeam losses, Covid-19 and shutdowns, Component Shortages, Labor Shortages, base EC growth in China, Labor Cost Increases, Freight Cost Increases • 2022 Gross Margin: 31. 8% －Labor,
Slide 14: Product Strategy
PRODUCT STRATEGY GENTEX Q 3 2024 INV ESTO R P RESENTATION 14 OCT 25, 2024
Slide 15: Automotive - An Industry in Flux
AUTOMOTIVE - AN INDUSTRY IN FLUX • Unprecedented time of transition • Multiple disruptive trends occurring simultaneously DIGITALIZATION ELECTRIFICATION AUTONOMOUS DRIVING GENTEX Q 3 2024 INV ESTO R P RESENTATION 15 OCT 25, 2024
Slide 16: What We Do Well: GNTX Core Competencies
WHAT WE DO WELL: GNTX CORE COMPETENCIES • Self-analysis: what makes us unique? • Highly vertically integrated in: GENTEX Q 3 2024 INV ESTO R P RESENTATION 16 OCT 25, 2024
Slide 17: Augmenting Our Tech Portfolio
AUGMENTING OUR TECH PORTFOLIO • Enhance in-house skill sets • Add new complementary technologies through acquisitions and partnerships IN-CABIN CHEMICAL (NANO) ADVANCED COATINGS V2I/V2X PRODUCTS MONITORING SENSING AND FILMS AND MOBILE PAYMENTS GENTEX Q 3 2024 INV ESTO R P RESENTATION 17 OCT 25, 2024
Slide 18: Technology Paths / Product Portfolio
TECHNOLOGY PATHS / PRODUCT PORTFOLIO DIGITAL VISION DIMMABLE GLASS CONNECTIVITY SENSING GENTEX Q 3 2024 INV ESTO R P RESENTATION 18 OCT 25, 2024
Slide 19: Digital Vision Platform
DIGITAL VISION PLATFORM Managing the evolution from analog to digital rear vision. Full Display Mirror/Digital Mirror Camera Monitoring Systems Technology Path Vision for the Future GENTEX Q 3 2024 INV ESTO R P RESENTATION 19 OCT 25, 2024
Slide 20: Dimmable Device Platform
DIMMABLE DEVICE PLATFORM Controlling light transmission for safety, privacy and performance. Dimmable Sunroofs Dimmable Sun Visors Aerospace Windows Dimmable Privacy Glass Technology Path Vision for the Future GENTEX Q 3 2024 INV ESTO R P RESENTATION 20 OCT 25, 2024
Slide 21: Connectivity Platform
CONNECTIVITY PLATFORM Streamlining connectivity with home, infrastructure, and travel. HomeLink / HomeLink Connect Transactional Vehicle Concierge and Experiential Technology Path Vision for the Future CAR TO HOME PAYMENTS AND INFRASTRUCTURE RIDE SHARING/USER-SPECIFIED CONTROL GENTEX Q 3 2024 INV ES
Slide 22: Sensing Platform
SENSING PLATFORM Keeping passengers safe and vehicles up and running. Biometrics/Iris Scanning In-Cabin Monitoring Particulate & Chemical Sensing ADASKY Technology Path Vision for the Future GENTEX Q 3 2024 INV ESTO R P RESENTATION 22 OCT 25, 2024
Slide 23: Strategy
STRATEGY Gentex’s strategy is to leverage our core competencies to cultivate emerging technologies that address the industry’s macro trends while also acting as innovation platforms for today’s vehicles. In short, we look to introduce features for today based on tomorrow’s emerging technology paths.
Slide 24: GNTX Ships to Every Major OEM
GNTX SHIPS TO EVERY MAJOR OEM • IEC penetration globally is 36% －Our primary competition is the 64% of vehicles that still use prism mirrors • We currently supply mirrors and electronic modules for: － Aston Martin, BMW Group, Daimler Group, Faraday Future, Ferrari, Ford Motor Co., Geely/Volvo, Gener
Slide 25: GNTX Is Powertrain Agnostic
GNTX IS POWERTRAIN AGNOSTIC • GNTX ships to more than 36 OEM customers internationally • We are available on more than 660 vehicle nameplates • Our products are available across vehicle segments • Our best customers are tech-focused GENTEX Q 3 2024 INV ESTO R P RESENTATION 25 OCT 25, 2024
Slide 26: GNTX Is (Somewhat) Driver Agnostic…Deliberately!
GNTX IS (SOMEWHAT) DRIVER AGNOSTIC…deliberately! • Gentex products bridge the transition from driver-controlled to fully autonomous driving －Dimmable Devices: LAD and Dimmable Visors provide Comfort, Privacy, and Functionality in automotive and aerospace －Vision Systems: Dimmable Mirrors, FDM, DVR,
Slide 27: New Tech in the Hopper
NEW TECH IN THE HOPPER • Dimmable Visor • Dimmable Sunroofs / Large Area Dimmable Devices (LAD) • DMS/ICMS – Enabled by Guardian Acquisition (now Gentex Israel) • Thermal Imaging System (LWIR) – Enabled by ADASKY Partnership • HomeLink Smart Home Solutions • eSight • Place GENTEX Q 3 2024 INV ESTO R
Slide 28: eSight video links
https://www.esighteyewear.com/ https://www.youtube.com/watch?v=sGqbdbFpDEA GENTEX Q 3 2024 INV ESTO R P RESENTATION 28 OCT 25, 2024
Slide 29: Fire protection link
https://fireprotection.gentex.com GENTEX Q 3 2024 INV ESTO R P RESENTATION 29 OCT 25, 2024
Slide 30: Gentex Product Strategy
GENTEX PRODUCT STRATEGY • Our strategy is easily summarized by 2 key ideas: －Expand in automotive through a deeper product portfolio based on new tech －Expand in new industries outside of automotive based on new tech from our expanding list of core competencies AUTOMOTIVE AEROSPACE FIRE PROTECTION M
Slide 31: ESG Performance
ESG PERFORMANCE • Updates －2023 Sustainability Report • [Link] －Updated Sustainability Section on Gentex.com • [Link] －Carbon Reduction & Neutrality Goals • 5-Year (2026) – 15% below 2021 levels • 10-Year (2031) – 40% below 2021 levels • 20-Year (2041) – 70% below 2021 levels • 2049 – Carbon Neutral
Slide 32: https://www.youtube.com/watch?v=9W0xvEBaIBY
https://www.youtube.com/watch?v=9W0xvEBaIBY https://www.youtube.com/watch?v=9W0xvEBaIBY GENTEX Q 3 2024 INV ESTO R P RESENTATION 32 OCT 25, 2024
Slide 33: Thank You
THANK YOU • For more information, visit －ir.Gentex.com －Gentex.com －fulldisplaymirror.com GENTEX Q 3 2024 INV ESTO R P RESENTATION 33 OCT 25, 2024