Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q2 2023 Earnings Presentation
21 slides from Commercial Vehicle's earnings presentation, Aug 2, 2023
Slide 1: Earnings Presentation Q2 2023
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures These slides contain forward-looking statements that are subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “co
Slide 3: Q2 2023 Highlights
Q2 2023 Highlights FINANCIAL HIGHLIGHTS an % NET SALES ADJUSTED EBITDA $262 $20.8 MILLION MILLION ég, < ADJUSTED ADJUSTED EPS OPERATING INCOME $0 32 $1 6.7 PER DILUTED SHARE MILLION Note: US GAAP net income was $10.1M for Q2 2023. GAAP diluted income per share was $0.30 for Q2 2023. CVG ~ BUSINESS H
Slide 4: Transforming revenue mix organically via new customers and vehicle platforms
Transforming revenue mix organically via new customers and vehicle platforms Transforming cost structure through process automation and low-cost production capabilities Delivering best in class quality and service Remain on track to deliver our 2027 revenue target of $1.5 billion On track to hit tar
Slide 5: Key CVG Markets - Forecast to Grow
Key CVG Markets - Forecast to Grow » 4 NA Class 8 Truck Build Connectivity Systems and Electric Vehicles ACT Research and FTR are forecasting 2023 North - - . . American Class 8 truck production ao ‘ola CVG Revenue Profile a Global commercial and automotive vehicle wire between 325,000 and 339,000 t
Slide 6: New Business Win Program is Foundational & Ongoing
New Business Win Program is Foundational & Ongoing CVG New Business Revenue ($MM) as of June 2023 ~$300 YTD 2023 Wins of ~$124 Million + ~80% of YTD wins are in the Electrical Systems segment * Continued to win globally with new customers and new product types + Winning new business in both ICE and
Slide 7: Morocco — Tangier, Mexico — Aldama, Mexico — Agua Prieta
Morocco — Tangier Mexico — Aldama Mexico — Agua Prieta + Expanding our low-cost Electrical Systems footprint . globally + Additional production capacity to support new business ¢ growth program and wins in-hand Aldama, Mexico facility held grand opening in July 2023, with production ramping Tangier,
Slide 8: 20% 22% 40% 80% 78% 60% 30% 45% 45% 55% 55% 70% 30% 40%
20% 22% 40% 80% 78% 60% 30% 45% 45% 55% 55% 70% 30% 40% 50% 50% 60% 70%
Slide 9: Improve profitability or exit
Improve profitability or exit unprofitable and/or non-strategic business Control cost structure and manufacture in-house what we should Reallocate SG&A, fund and install digital backbone Secular growth in Electric Vehicle market globally Expand and diversify our customer roster Expand product line-u
Slide 10: Adjusted EBITDA
ADJUSTED EBITDA (% of revenue) ae (7) 1H23 Run-Rate 47” 2022 2027 2022 2027 Target and win accretive new business to diversify the Company’s customer and product portfolio and increase the Company’s value proposition through innovation Improve the Company’s legacy business, renegotiate contracts, op
Slide 11: 2023 Outlook
2023 Outlook Expect another record revenue year in 2023 * 3rd Year in a Row + Inline with our original expectations, 2H 2023 class-8 volumes are showing a modest slowdown + ACT and FTR truck demand data suggests lower Q4 builds versus prior year Full year 2023 margin performance is expected to show
Slide 12: Financial Review
Financial Review ugust, 2028 12
Slide 13: Q2 2023 - Vehicle-Related Business Powered Results
Q2 2023 - Vehicle-Related Business Powered Results Three Months Three Months GAAP Measures Ended Jun 30 NON-GAAP Measures evi jun 30 ($ in millions except for share rn information) 2023 2022 oie mine except for share 2023 2022 Revenue $ 262.2 $250.8 Adjusted EBITDA $208 $12.4 Operating Income 15.9 6
Slide 14: Vehicle-Related Segments and Industrial Automation quarterly results
Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Vehicle-Related Segments Industrial Automation Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23
Slide 15: Appendix
M4 Appendix august 2202
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures This earnings presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the non-GAAP measures exclude items that (i) management believes reflect the Company’s multi-year corporat
Slide 17: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Operating Income/(Loss) 15.9 6.2 Restructuring 07 1.8 Deferred consideration purchase accounting - 01 Adjusted Operating Income 16.7 8.1 % of Revenues 6.4% 3.2% Net Income/(Loss) 10.1 2.5 Interest Expense 28 24 Provision (benefit) for income taxe
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Net income/(Loss) 75 2.6 4.0 25 3.6 (32.0) 8.7 10.1 Interest 1.6 17 2.0 24 2.8 2.9 2.9 2.8 Provision / (Benefit) for Income Taxes 2.4 1.9 14 0.9 13 7.4 3.3 27 Depreciation 37 3.8 3.5 3.7 37 3.7 3.4 3.5 Amortization 0.9 0.9 0.9 0.8 0.8 0.8 0.8 0.9
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS
Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS CVG information) Q2 2023 Net income/(Loss) 10.1 25 Operating income (loss) adjustments 0.7 1.9 Hryvnia fair value adjustments on forward exchange contracts - (0.4) Adjusted (benefit) provision for income taxes (0.1) (0.6) Loss on ex
Slide 20: Segment GAAP to Non GAAP QTD
Segment GAAP to Non GAAP QTD For the Three Months Ended Jun 30, 202 (in millions) solutions oe Aftermarket autonstie Corporate Total Operating Income/(Loss) 14.1 77 5.5 (2.1) (9.3) 15.9 Restructuring 0.3 0.0 - 0.4 - 0.7 Adjusted Operating Income/(Loss) 14.4 77 5.5 (1.7) (9.3) 16.6 % of Revenue 9.5%
Slide 21: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Cash Flow from Operations $ (89) $ (214) $ 169 $ 383 $ 352 $ O1 $ 115 Capital Expenditures! (6.2) (3.6) (5.0) (3.9) (7.2) (3.3) (5.9) Free Cash Flow (15.1) (25.0) 11.9 34.4
Commercial Vehicle Group — Q2 2023 Earnings Presentation on 6ix