Slide 1: Investor Presentation December 2020
Investor Presentation December 2020
Slide 2: Cautionary Statement
Cautionary Statement Information in this presentation relating to projected growth and financial performance of the Company’s business units, contribution of our greenfield business units, margin performance and operating efficiencies are forward-looking statements. Readers are cautioned not to plac
Slide 3: Company Overview
Company Overview Business Highlights Financial Highlights • Manufacturer of tooling for the light metal industries + • F2020 revenue of C$412 million and EBITDA of C$53 interior trim components & solutions for the million (13% margin) despite COVID-related disruptions automotive market • Consistentl
Slide 4: Principal Business Segments
Principal Business Segments Last Twelve Months Revenue and EBITDA Through Sept 30, 2020 C$412 million Revenue C$53 million in EBITDA (13% Margin) Neocon C$32M Extrusion Casting & Tooling Extrusion 56% AFX 44% (18% Margin) Automotive Casting & Solutions Extrusion Large Mould Group (C$231M) (C$181M) C
Slide 5: Global Presence
Global Presence 15 Manufacturing Locations in 7 Countries and 5,400 Employees Uxbridge, ON Newmarket, ON Chesterfield, MI Markham, ON Troy, MI Port Huron, MI Toledo, OH Dartmouth, NS Tangier, Morocco Matamoros, MX (2) Wylie, TX Kenitra, Morocco* Queretaro, MX (2) Chonburi, Thailand Medellin, Colombi
Slide 6: End Customer Sales Diversity
End Customer Sales Diversity F2020 C$412M Consolidated Sales by Ultimate OEM customer 16 OEM's 17% Non - Automotive 27% 3% 4% 5% 6% 18% 9% 11% EXCO TECHNOLOGIES LIMITED | 6
Slide 7: Vision and Mission
Vision and Mission Vision: To be the benchmark for innovation, efficiency and quality in the industries we serve Mission: We enhance the look and functionality of passenger vehicles and tool up light metal industries for superior performance EXCO TECHNOLOGIES LIMITED | 7
Slide 8: Exco Values
Exco Values Safety: We strive for all our employees to go home unharmed Entrepreneurial spirit: Our culture fosters idea generation and risk taking Excellence: We set the standard for high quality craftsmanship Integrity: We expect honesty and transparency in all our dealings Accountability: We empo
Slide 9: Automotive Solutions Segment
Automotive Solutions Segment EXCO TECHNOLOGIES LIMITED | 9
Slide 10: Automotive Solutions Segment
Automotive Solutions Segment A innovative provider of interior trim and convenience solutions to the global auto market Competitive Strengths Market Conditions • Leading supplier of flexible restraint (netting), vehicle • Production significantly disrupted by COVID-19 protection (cargo trays/ mats)
Slide 11: Automotive Solutions Segment
Automotive Solutions Segment Four businesses provide an expanding array of product offerings Business Manufacturing Facility Size Key Products/ Programs Location(s) • Netting-based storage systems for trunks, seat backs and door panels, etc. Polytech Mexico 130,000 sq ft • • Netting-based restraint
Slide 12: Polytech
Polytech Leading manufacturer of automotive netting and storage solutions for North America Business Overview • Clear market leader in design, engineering and manufacturing of flexible restraint and storage systems for OEM customers in North America • Product portfolio continues to broaden into othe
Slide 13: Polydesign
Polydesign Leading manufacturer of automotive netting and wrapped products for Europe Business Overview • Diversified product portfolio with an emphasis on Door panel Armrest Consoles Leather-wrapped nets steering wheels integrated assemblies that take advantage of our vertical integration (injectio
Slide 14: Award winning designer and manufacturer of innovative accessory products for OEM’s
Award winning designer and manufacturer of innovative accessory products for OEM’s Business Overview • Diversified and growing portfolio of vehicle protection and storage solutions • Market leader in thermoformed cargo trays and chrome plated bumper protectors • Significant SUV/ CUV and growing EV e
Slide 15: Leading supplier of hand wrapped interior trim components in North America
Leading supplier of hand wrapped interior trim components in North America Business Overview • Leading independent supplier of hand wrapped interior trim components • Specialists in cutting leather and other trim materials for seating and various applications • Tier 2 supplier to a diversified custo
Slide 16: Casting & Extrusion Segment
Casting & Extrusion Segment EXCO TECHNOLOGIES LIMITED | 16
Slide 17: Casting & Extrusion Segment
Casting & Extrusion Segment World’s largest independent provider of tooling for the Extrusion and Die Cast markets Competitive Strengths Market Conditions • Large scale, diversified operations with a total of 11 • Aluminum use is growing across many applications tooling plants in six countries with
Slide 18: Casting & Extrusion Segment
Casting & Extrusion Segment Vehicle light-weighting provides significant growth opportunity across the entire segment • Ever more stringent fuel efficiency and Passenger Car Fuel Efficiency emission reduction standards are driving the development of increasingly advanced engines and transmissions by
Slide 19: Casting & Extrusion Segment
Casting & Extrusion Segment Both Internal Combustion Engine and Electric Vehicles are using an increasing number of extruded and die-cast aluminum components to reduce weight Instrument Panel Roof Rails Beam Components Electronics Housing Rear Bumper Beams Shock Towers Rear Subframes Transmission Ho
Slide 20: Casting & Extrusion Segment
Casting & Extrusion Segment Three related business groups covering die-cast and extrusion tooling Group Business Manufacturing Locations Total Group Key Products/ Programs Facility Sizes • Design and manufacture of large high Ontario, Canada pressure die-cast moulds Large Mould Toledo, Ohio 200,000
Slide 21: Large Mould Group
Large Mould Group Aluminum-focused tooling for automotive powertrain and structural components Business Overview • Largest independent manufacturer of high pressure die-cast (HPDC) moulds in North America; exclusively focused on large moulds • Moulds for both powertrain and non-powertrain components
Slide 22: Exco Additive Manufacturing
Exco Additive Manufacturing Global leader in the additive manufacturing of tool steel for die casting applications Business Overview • Three, quad-laser, large scale additive machines dedicated for tooling applications • Fully integrated into large mould design to provide enhanced overall die perfor
Slide 23: Extrusion Tooling Group
Extrusion Tooling Group Largest designer and manufacturer of dies for aluminum extrusions in the Americas Business Overview Extruded Products by End Market1 • Six manufacturing locations in the Americas (Ontario, 2% Transportation/ Auto Michigan, Texas, Mexico, Brazil, Colombia) 10% Building & Const
Slide 24: Equipment, accessories and tooling for aluminum die-cast machines and extrusion presses
Equipment, accessories and tooling for aluminum die-cast machines and extrusion presses Business Overview • Proprietary consumable tooling components and modular systems designed to dramatically increase overall efficiency of extrusion presses and die-cast machines through improved uptime and yields
Slide 25: Financial Results
Financial Results EXCO TECHNOLOGIES LIMITED | 25
Slide 26: Annual Revenue by Segment
Annual Revenue by Segment Strong underlying top-line growth from core operations over time despite COVID- related disruptions in F2020 C$ Millions 589 584 576 ALC Automotive Solutions 498 105 106 507 159 20 Casting and Extrusion 412 147 368 83 296 270 283 238 231 245 156 116 92 153 170 195 192 183 2
Slide 27: Quarterly Revenue by Segment
Quarterly Revenue by Segment Revenues Significantly Impacted by COVID-19 in the Second Half of Fiscal 2020 C$ Millions ALC Bulgaria 143 Automotive Solutions 20 123 120 121 120 120 Casting and Extrusion 101 70 73 71 69 68 73 71 61 28 53 50 49 52 52 47 43 40 Q1 F19 Q2 F19 Q3 F19 Q4 F19 Q1 F20 Q2 F20 Q
Slide 28: Annual EBITDA by Segment
Annual EBITDA by Segment Cost increases in Automotive Solutions Segment have stabilized C$ Millions Corporate Expense Automotive Solutions (inc. ALC) 83 83 Casting and Extrusion 77 77 63 54 41 54 53 59 52 43 27 38 28 19 43 37 29 34 31 31 31 32 -5 -7 -7 -7 -6 -7 -7 -7 F2013 F2014 F2015 F2016 F2017 F2
Slide 29: Quarterly EBITDA by Segment
Quarterly EBITDA by Segment EBITDA rebounded in Q4F20 after severe COVID-related disruptions in Q3F20 C$ Millions Corporate 19 ALC Bulgaria 17 17 Automotive Solutions 14 16 16 Casting and Extrusion 14 15 11 10 11 9 9 7 5 9 8 7 8 8 8 9 8 -2 Q1 F19 Q2 F19 Q3 F19 Q4 F19 Q1 F20 Q2 F20 Q3 F20 Q4 F20 Fisc
Slide 30: Net Income and Adjusted Net Income
Net Income and Adjusted Net Income Reported EPS in F2019 negatively impacted by write-off of remaining equity in ALC C$ Millions 44.1 44.1 42.3 Other Income/ Expense 40.8 30.7 33.0 Reported Net Income 27.4 47.6 40.8 42.5 42.3 30.7 26.6 27.4 F2014 F2015 F2016 F2017 F2018 F2019 F2020 Diluted Reported
Slide 31: Net Income and Adjusted Net Income
Net Income and Adjusted Net Income Strong rebound in profitability in Q4F20 from COVID-related disruptions in Q3F20 3.8 C$ Millions 10.7 Other Expense 9.5 8.6 8.1 7.5 6.8 Net Income from ALC 12.1 9.5 10.7 Net Income (Ex ALC) 8.6 7.5 8.1 6.8 -0.8 Q1 F19 Q2 F19 Q3 F19 Q4 F19 Q1 F20 Q2 F20 Q3 F20 Q4 F2
Slide 32: Cash Flow Generation
Cash Flow Generation Consistently strong EBITDA to free cash flow conversion with proceeds directed to meaningful shareholder returns and further strengthening of the balance sheet F2020 15 (22) 53 (4) 42 (15) C$ Millions (9) 18 EBITDA Taxes/ Working Net Capex Free Cash Dividends Share Net Cash to I
Slide 33: Dividend
Dividend Dividend increased by 6% to an annualized rate of 38 cents per share January 2020 38.0 CAD Cents/ Share 10.5 F2011 F2012 F2013 F2014 F2015 F2016 F2017 F2018 F2019 F2020 EXCO TECHNOLOGIES LIMITED | 33
Slide 34: Capital Expenditures
Capital Expenditures Recent/ planned elevated capex reflects strong organic growth opportunities C$ Millions 33 27 25 23 23 22 23 20 15 F2013 F2014 F2015 F2016 F2017 F2018 F2019 F2020 F2021E Automotive Solutions C&E Maintenance/ Growth C&E Greenfield/ Special Projects EXCO TECHNOLOGIES LIMITED | 34
Slide 35: Financial Leverage & Liquidity
Financial Leverage & Liquidity Balance Sheet in a $27M Net Cash Position as at September 30, 2020 Exco C$27M Net Cash 40 • F2020 EBITDA of C$53M • C$50M committed revolver matures February 30 2023; $44M available Bank Indebtedness/ Other • Balance sheet cash of $33M 20 Revolver Borrowings C$ Million
Slide 36: Questions
Questions EXCO TECHNOLOGIES LIMITED | 36
Slide 37: EXCO TECHNOLOGIES LIMITED | 37
EXCO TECHNOLOGIES LIMITED | 37