Cts Corporation · NYSE:CTS
Cts — Investor Presentation (January 2007)
12 slides from Cts's investor presentation, Jan 10, 2007
Slide 1: Segments and Markets
Segment Markets Based on Last Four Quarters Through September 2006 Segment Segments and Markets Automotive 25% Communications 22% Other 11% Computer 27% Electronic Components and Sensors Electronics Manufacturing Services Industrial & Medical 15% 42% 58% 25% 7% 1% 8% 26% 3% 15% 1% 14% Defense & Aero
Slide 2: Business Growth Targets
- Automotive Sensors - Electronic Components Electronics Manufacturing Services 13 - 15% 3 - 6% 6 - 8% 7 - 10% Overall Organic Growth Target Components & Sensors: 9 - 11% Business Growth Targets Annual Sales Growth Product/Market Area (2005 - 2008)
Slide 3: CTS Accelerator Pedal Modules Offer Performance, Quality and Cost Advantages
Awarded 50 Platforms Industry trend is to adopt integrated pedals for increased control with reduced costs. Total Available Market (Including Pedal Sensors) $150 $223 $266 $361 $381 $305 CTS Accelerator Pedal Modules Offer Performance, Quality and Cost Advantages CTS Sales $ in Millions $400 Actual
Slide 4: Electronic Components – Communications Infrastructure
WiMAX Optical Networking Telematics Cellular Repeaters Wireless Base Station Satellite Communications Design Wins OCXO RF Module Filter Electronic Components – Communications Infrastructure
Slide 5: Growth Focused on High Margin Segments
Growth Focused on High Margin Segments 95% 69% Top 5 EMS Customers Communications Other Industrial Medical Computer 2006 Sales (9 mos.) Aerospace/ Defense More Complex Less Complex High Volume / Low Mix Low Volume / High Mix EMS Business CTS Markets
Slide 6: Expense Leverage Contributing to Earnings Growth
12.5% 13.0% Adjusted Operating Expenses (Percent of Sales) Expense Leverage Contributing to Earnings Growth
Slide 7: Balance Sheet Management
Capital Expenditures Controllable Working Capital* * Controllable Working Capital Defined as Accounts Receivable + Inventories - Accounts Payable. Balance Sheet Management Normal Level 3% Target 13% Efficient Utilization of Capital 4%
Slide 8: Strong Cash Earnings and Free Cash Flow
Cumulative Free Cash Flow $ in Millions Cumulative Cash Earnings 71.5 75.5 FY 2006 Estimate Cumulative Free Cash Flow Strong Cash Earnings and Free Cash Flow
Slide 9: Segment Performance
Components & Sensors EMS SALES $ in Millions ADJUSTED SEGMENT OPERATING EARNINGS % OF SALES 9 Mos. 9 Mos. 9 Mos. 9 Mos. Segment Performance
Slide 10: Financial Summary
Note: Data shown excludes all restructuring and related one-time charges, asset impairments, customer reimbursement, income tax adjustment and material asset gains, except adjusted EBITDA, which includes the customer reimbursement only. Financial Summary
Slide 11: Other Financial Data – Income Statement
Note: Data shown excludes restructuring costs, income tax adjustments related to repatriation and material asset gains. Other Financial Data – Income Statement
Slide 12: Other Financial Data – Balance Sheet Metrics
Other Financial Data – Balance Sheet Metrics APPENDIX CTS Corporation Reconciliation of Earnings Per Share to Adjusted Earnings Per Share 2006 YTD 2006 2006 2006 2005 2005 2004 2003 2002 Full Year Q3 Q3 Q2 Q1 Q4 Q2 Q2 Q3 Q3 Q2 Q1 2005 2004 2003 2002 2001 Earnings per share $ 0.48 $ 0.15 $ 0.16 $ 0.1