Matthews International Corporation · NASDAQ:MATW
Matthews International — Investor Presentation (September 2015)
28 slides from Matthews International's investor presentation, Sep 30, 2015
Slide 1: Matthews
Matthews 9/30/15
Slide 2: Business Overview
Matthews Business Overview Matthews
Slide 3: Disclaimer
Disclaimer Any forward-looking statements in connection with this discussion are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s a
Slide 4: Founded in 1850, headquartered in Pittsburgh, PA
Founded in 1850 – headquartered in Pittsburgh, PA Three business segments: ◦ SGK Brand Solutions ◦ Memorialization ◦ Industrial Over 10,000 employees Over 25 countries NASDAQ – 32.9 million shares outstanding 4
Slide 5: Fiscal 2015 sales by segment
FISCAL 2015 SGK Brand Solutions Memorialization Industrial SGK Brand Solutions 56% Memorialization 36% Industrial 8% 100% 5
Slide 6: SGK Brand Solutions
Matthews SGK BRAND SOLUTIONS Matthews
Slide 7: Delivering Brand Performance
Delivering Brand Performance Brand Brand Brand Development Deployment Performance Improved top- Create + Premedia Tooling = line growth Activate Improved Merchandising bottom-line performance 7
Slide 8: SGK Brand Solutions services for packaging industries
SGK Brand Solutions offers a wide range of services to the corrugated Printing plates for the packaging industry are one of and flexible packaging industries, including creative graphic design. segment’s product lines. Matthews produces gravure printing and embossing tools used in the packaging, wal
Slide 9: Crayola and Hasbro retail display projects
Matthews facilitated the execution of the new Crayola retail store in Easton, PA. Matthews was engaged by Hasbro to create a display for their FurReal Friends products line 9
Slide 10: Memorialization
Matthews MEMORIALIZATION Matthews
Slide 11: Memorialization product offerings
Building signs are an example of the segment’s architectural product offerings. Matthews eVantage℠ is our new, best-in-class, web-based program for memorial design, product orders and order management. Matthews is well known for its heritage of creating beautiful, time-tested bronze memorials. Crema
Slide 12: Casket manufacturing and distribution
The Company is a leading manufacturer and distributor of caskets in North America, producing a wide variety of wood , metal and cremation caskets. 12
Slide 13: Bio-cremation and cremation systems
Bio-cremation is a water-based (versus flame-based) cremation process. The Power Pak II cremation system is one of the most popular cremation systems in North America. Faithful Forever Pet Loss Care is a program that allows clients access to the growing e-commerce market for their pet loss care need
Slide 14: Total deaths and cremation projections
4,000 3,500 Total Deaths * 3,000 2,500 2,000 Cremation 1,500 1,000 Non-Cremation 500 0 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 *Total anticipated deaths per US Census Bureau 2009 projections 14
Slide 15: Industrial
Matthews INDUSTRIAL Matthews
Slide 16: Industrial products and automation systems
Non-contact ink-jet printing units apply print on products. Matthews continues to be one of the market leaders in automated conveyor controls. A control system provided by Pyramid Controls manages the sorting and conveyance of finished shipping cartons. Pick-to-Light systems use light indicators for
Slide 17: Financial Overview
Matthews FINANCIAL OVERVIEW Matthews
Slide 18: Growth strategy
Internal Growth ◦ Expand market presence of existing products ◦ New product development ◦ Manufacturing/cost structure improvements Acquisitions Share Repurchases 18
Slide 19: Acquisition objectives and financial criteria
Principal objective: Support the business plan of the operating segment and long-term growth objectives of the Company. Financial criteria: Immediately accretive to Earnings per Share. Achieve long-term target of an annual return on invested capital of 12%. 19
Slide 20: Sales, adjusted profit, EBITDA and EPS
(Dollars in thousands) Fiscal year ended September 30, 2012 2013 2014 2015 Sales $900,317 $985,357 $1,106,597 $1,426,068 Adjusted Operating Profit (a) $100,435 $108,710 $120,120 $141,906 Adjusted EBITDA (b) $143,365 $160,561 $172,007 $215,974 EPS - GAAP (c) $1.95 $1.95 $1.49 $1.91 Non-GAAP EPS (d) $
Slide 21: Sales and adjusted operating profit by segment
(Dollars in thousands) Fiscal year ended September 30, 2012 2013 2014 2015 Sales: SGK Brand Solutions $332,829 $373,941 $497,328 $798,339 Memorialization 492,867 517,911 508,420 508,058 Industrial 74,621 93,505 100,849 119,671 Consolidated $900,317 $985,357 $1,106,597 $1,426,068 Adjusted Operating P
Slide 22: Adjusted free cash flow
(Dollars in thousands) Adjusted Net Income $83,930 Depreciation and Amortization 62,620 Stock-Based Compensation 9,097 Pension Cost (non-service portion) 5,677 161,324 Capital Expenditures (48,251) Adjusted Free Cash Flow $113,073 Adjusted net income reflects adjustments to exclude net charges prima
Slide 23: GAAP earnings per share 2006-2015
$3.50 $3.00 $2.55 $2.45 $2.31 $2.50 $2.06 $2.04 $1.90 $1.95 $1.95 $1.91 $2.00 $1.49 $1.50 $1.00 $0.50 $0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 23
Slide 24: Non-GAAP earnings per share
$3.50 $3.03 $3.00 $2.74 $2.61 $2.69 $2.59 $2.53 $2.37 $2.43 $2.31 $2.50 $2.12 $2.00 $1.50 $1.00 $0.50 $0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Non-GAAP earnings per share reflect adjustments to exclude net charges primarily related to acquisition-related costs, strategic initiatives,
Slide 25: Adjusted EBITDA 2006-2015
(Dollars in millions) $250.0 $216.0 $200.0 $172.0 $165.4 $160.6 $157.2 $156.8 $160.9 $147.8 $139.6 $143.4 $150.0 $100.0 $50.0 $0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 25
Slide 26: Share price history
$60 $50.74 $48.97 $50 $43.80 $43.89 $38.08 $40 $36.79 $35.38 $35.36 $30.73 $29.82 $30 $20 $10 $0 9/ 30/06 9/ 30/07 9/ 30/08 9/ 30/09 9/ 30/10 9/ 30/11 9/ 30/12 9/ 30/13 9/ 30/14 9/ 30/15 26
Slide 27: Fiscal 2015 highlights and analyst coverage
Acquisition of Aurora Casket on August 19, 2015 Increased quarterly dividend 15.4% to 15.0 cents (November 2015) ◦ 21st consecutive annual dividend increase since the IPO Reported record sales of $1.4 billion in fiscal 2015 Reported record operating cash flow of $141.1 million in fiscal 2015
Slide 28: Institutional ownership
Shares 9/30/2015 Franklin Advisory Services, LLC 2,926,527 BlackRock Institutional Trust Company, N.A. 2,748,315 The Vanguard Group, Inc. 2,445,421 T. Rowe Price Associates, Inc. 1,673,260 Wellington Management Company, LLP 1,592,079 Dimensional Fund Advisors, L.P. 1,186,522 Channing Capital Managem
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