Matthews International Corporation · NASDAQ:MATW

Matthews International — Investor Presentation (September 2023)

43 slides from Matthews International's investor presentation, Sep 30, 2023

  1. Slide 1: Corporate Presentation

    CORPORATE PRESENTATION September 30, 2023 www.matw.com | Nasdaq: MATW © 2023 Matthews International Corporation. All Rights Reserved.

  2. Slide 2: Disclaimer

    DISCLAIMER Any forward-looking statements contained in this presentation are included pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beli

  3. Slide 3: A History of Innovating and Creating

    A HISTORY OF INNOVATING AND CREATING Matthews today builds on its legacy with development of new technologies that provide a platform for continued evolution and growth. The Memorialization segment is a leading The Industrial Technologies segment provider of memorialization products, including memor

  4. Slide 4: Historical Revenue and Adjusted EBITDA

    MATTHEWS HISTORICAL REVENUE AND ADJUSTED EBITDA* TOTAL SALES BY SEGMENT ($000) TOTAL ADJUSTED EBITDA BY SEGMENT ($000)* $900,000 $180,000 $800,000 $160,000 $700,000 $140,000 $600,000 $120,000 $500,000 $100,000 $400,000 $80,000 $300,000 $60,000 $200,000 $40,000 $100,000 $20,000 $— $— Fiscal 2021 Fisc

  5. Slide 5: Key Figures - FY23

    KEY FIGURES - FY23 Total Sales by Segment 28% 45% 173 $1.88 BILLION YEARS IN BUSINESS Consolidated Revenue 27% Total Sales by Region Europe 30% Americas Asia & Pacific 65% 5% 6 CONTINENTS ~12,000+ 30+ COUNTRIES EMPLOYEES © 2023 Matthews International Corporation. All Rights Reserved. 5

  6. Slide 6: Industrial Technologies

    INDUSTRIAL TECHNOLOGIES © 2023 Matthews International Corporation. All Rights Reserved.

  7. Slide 7: Our Businesses

    MATTHEWS INDUSTRIAL TECHNOLOGIES OUR BUSINESSES Energy / EV Batteries Industrial Automation MATTHEWS WAREHOUSE AUTOMATION PRODUCT IDENTIFICATION ENGINEERING Principal Product Lines Advanced tooling equipment supporting lithium- State-of-the-art software, automation, and Intelligent in-line marking a

  8. Slide 8: Matthews Engineering

    MATTHEWS INDUSTRIAL TECHNOLOGIES MATTHEWS ENGINEERING WHO WE ARE Creators of world-leading energy and converting technologies Matthews Engineering is a global team that turn ideas into powerful technologies Over 70 years of experiences as a production equipment manufacturer, offering advanced calend

  9. Slide 9: Energy Solutions

    MATTHEWS INDUSTRIAL TECHNOLOGIES ENERGY SOLUTIONS Advanced calendering system enables patented lithium-ion dry-battery electrode (DBE) manufacturing and embossing cylinders used in hydrogen fuel cells and electrolyzers by automotive and battery manufacturers. Leading Expertise ◦ 10 years experience,

  10. Slide 10: Lithium-Ion Battery

    MATTHEWS INDUSTRIAL TECHNOLOGIES LITHIUM-ION BATTERY MATTHEWS IS AGNOSTIC TO WHICH CELL CHEMISTRY Lithium-ion battery structure Where Matthews delivers value CELL DESIGN Matthews’ engineering division develops cutting edge calendering equipment to compact PRISMATIC anode and cathode (electrode) coat

  11. Slide 11: Dry Coated vs Wet Coated Electrodes

    MATTHEWS INDUSTRIAL TECHNOLOGIES DRY COATED WET COATED ELECTRODES ELECTRODES DUCTION CUSTOMER EXPERIENCE 70% MIXING SLURRY MIXING Total Investment ODE PRO Reduction 75% Reduction in Labor SOLVENT COATING & + RECOVERY DRYING 75% Reduction in Utilities ELECTR Eliminates Toxic Solvents & Improves CALEN

  12. Slide 12: Energy Solutions Growth

    MATTHEWS INDUSTRIAL TECHNOLOGIES ENERGY SOLUTIONS GROWTH Tax Incentives Stimulate Demand Energy Storage Solutions Sales ($mm)* $180 ◦ Over 600 incremental Gigawatt hour (GWh) installation projection for U.S. by 2030 prior to the Inflation $160 Reduction Act $140 ◦ Expect projected GWh to grow signif

  13. Slide 13: Matthews Industrial Automation

    MATTHEWS INDUSTRIAL TECHNOLOGIES MATTHEWS INDUSTRIAL AUTOMATION WHO WE ARE Creators of premier industrial automation applications. Designs manufacturing technologies and solutions for industrial automation applications that mark, identify, track, control and pick products at the highest levels of ac

  14. Slide 14: Warehouse Automation

    MATTHEWS INDUSTRIAL TECHNOLOGIES WAREHOUSE AUTOMATION Delivers industry-leading technologies that integrate dynamic material handling applications, increasing productivity in ecommerce, omnichannel fulfillment centers, and manufacturing facilities Our Products • PyramidTM and CompassTM • Lightning P

  15. Slide 15: Warehouse Automation

    MATTHEWS INDUSTRIAL TECHNOLOGIES WAREHOUSE AUTOMATION Global Warehouse Automation Market Size ($bn) Key Megatrends Driving Growth ◦ Requires improved order fulfillment capabilities ◦ Increased throughput volume and the importance of accuracy Growth of means reducing human-error in sorting and pickin

  16. Slide 16: Warehouse Automation – Leading WES

    MATTHEWS INDUSTRIAL TECHNOLOGIES WAREHOUSE AUTOMATION – LEADING WES Software and Integration for Warehouse Execution Software Matthews designs and implements proprietary warehouse execution software in custom applications to connect distribution center material handling operations Leading WES Modern

  17. Slide 17: Product Identification

    MATTHEWS INDUSTRIAL TECHNOLOGIES PRODUCT IDENTIFICATION Market Opportunity - ~ $4B New Product MARKETExpands Opportunity OPPORTUNITY • Organically developed to address Continuous Ink Jet Matthews A Market Leader market - nearly double market opportunity Drop on New Market Demand Opportunity • High q

  18. Slide 18: Strong Reputation with MPERIA Controller and Inks

    MATTHEWS INDUSTRIAL TECHNOLOGIES CONFIDENTIAL STRONG REPUTATION WITH MPERIA CONTROLLER AND INKS • Differentiated hardware – Matthews’ proprietary MPERIA software interprets customer data and manages a fleet of printers on a single controller ◦ Operator-friendly, intuitive touchscreen user interface

  19. Slide 19: Memorialization

    MATTHEWS MEMORIALIZATION © 2023 Matthews International Corporation. All Rights Reserved.

  20. Slide 20: Matthews Memorialization

    MATTHEWS MEMORIALIZATION MATTHEWS MEMORIALIZATION WHO WE ARE Helping families move from grieving to remembrance for nearly 100 years Leading provider of products, business solutions and technology services to cemeteries, funeral homes, and monument dealers. © 2023 Matthews International Corporation.

  21. Slide 21: Products & Solutions

    MATTHEWS MEMORIALIZATION PRODUCTS & SOLUTIONS CREMATION & INCINERATION CEMETERY PRODUCTS FUNERAL HOME SOLUTIONS EQUIPMENT MARKET POSITION Bronze Memorials - #1 Caskets - #2 Cremation Equipment - #1 Granite Memorials - #1 CORE GEOGRAPHIES North America, Italy, Australia United States Global © 2023 Ma

  22. Slide 22: Memorialization Competitive Advantage

    MATTHEWS MEMORIALIZATION MEMORIALIZATION COMPETITIVE ADVANTAGE STRONG BRAND & REPUTATION LEAN OPERATING MODEL & NATIONAL DELIVERY NETWORK • Respected and growing market leader within the death care services industry • Maintains a strong supply chain that maximizes efficiency and reliability OPERATOR

  23. Slide 23: Stable Demand with Growth Potential

    MATTHEWS MEMORIALIZATION STABLE DEMAND WITH GROWTH POTENTIAL Casketed Deaths vs. Non-casketed Deaths1 Sales of Cremation Products ($m)2 4,000,000 $160 3,500,000 $140 3,000,000 $120 2,500,000 $100 2,000,000 1,500,000 $80 1,000,000 $60 500,000 $40 0 $20 2033 2039 2022 2028 2034 2040 2023 2029 2035 201

  24. Slide 24: SGK Brand Solutions

    SGK BRAND SOLUTIONS © 2023 Matthews International Corporation. All Rights Reserved.

  25. Slide 25: SGK Brand Solutions

    SGK BRAND SOLUTIONS SGK BRAND SOLUTIONS WHO WE ARE Creators of experiences and solutions, we simplify marketing and amplify brands SGK Brand Solutions connects many of the largest global consumer products companies through every step of the packaging continuum – from brand development and creative s

  26. Slide 26: Packaging Continuum

    SGK BRAND SOLUTIONS SGK BRAND SOLUTIONS PACKAGING CONTINUUM Brand Brand Brand Delivery Development Deployment Strategy / le Team CPG Creative Adaptive Merchandising Pre-Media Tooling Printer Assemb © 2023 Matthews International Corporation. All Rights Reserved. 26

  27. Slide 27: Core Packaging

    SGK BRAND SOLUTIONS SGK BRAND SOLUTIONS CORE PACKAGING © 2023 Matthews International Corporation. All Rights Reserved. 27

  28. Slide 28: Diverse Client Base

    SGK BRAND SOLUTIONS SGK Brand solutions DIVERSE CLIENT BASE FOOD/ GLOBAL PHARMA/ HEALTHCARE GLOBAL RETAILER OTHER BEVERAGE CLIENTS CLIENTS LEADING CLIENTS BRANDS © 2023 Matthews International Corporation. All Rights Reserved. 28

  29. Slide 29: Investment Highlights and Financial Overview

    INVESTMENT HIGHLIGHTS AND FINANCIAL OVERVIEW © 2023 Matthews International Corporation. All Rights Reserved. 29

  30. Slide 30: Key Investment Highlights

    KEY INVESTMENT HIGHLIGHTS 1 GROWTH OPPORTUNITIES SUPPORTED BY STABLE CORE BUSINESSES 2 FAVORABLE COMPETITIVE POSITIONS IN ATTRACTIVE ADDRESSABLE MARKETS 3 ROBUST CASH FLOW HISTORY 4 DISCIPLINED TRACK RECORD OF ACQUISITIONS AND INTEGRATION 5 STRONG AND EXPERIENCED MANAGEMENT TEAM © 2023 Matthews Inte

  31. Slide 31: Financial Overview

    Financial Overview © 2023 Matthews International Corporation. All Rights Reserved. 31

  32. Slide 32: Capital Allocation

    CAPITAL ALLOCATION 1 SUPPORT LONG-TERM GROWTH ◦ Continue organic growth leveraging and innovating existing capability thru extending market reach, investing in productivity, and new product development ◦ Acquire and integrate complementary businesses with prudent capital deployment (achieve long-ter

  33. Slide 33: Financial Summary

    FINANCIAL SUMMARY (Unaudited) Fiscal Year Ended September 30, (Dollars in thousands) 2021 2022 2023 Sales: Memorialization $ 769,016 $ 840,124 $ 842,997 Industrial Technologies 284,495 335,523 505,751 SGK Brand Solutions 617,519 586,756 532,148 Consolidated Sales $ 1,671,030 $ 1,762,403 $ 1,880,896

  34. Slide 34: ESG Overview

    ESG Overview © 2023 Matthews International Corporation. All Rights Reserved. 34

  35. Slide 35: ESG Commitment to Sustainability

    ESG COMMITMENT TO SUSTAINABILITY Business Solutions to Drive Efficiency and Environmental Performance ◦ Provider of Energy storage solutions including battery production technology for electric vehicles ◦ Waste-to-Energy solutions with projects in UK and Europe ◦ Creating environmental solutions to

  36. Slide 36: Appendix

    Appendix © 2023 Matthews International Corporation. All Rights Reserved. 36

  37. Slide 37: Our Executive Team

    APPENDIX A OUR EXECUTIVE TEAM Joseph C. Bartolacci Steven F. Nicola Gregory S. Babe Chief Executive Officer & President Chief Financial Officer & Secretary CTO & Group President, Industrial Technologies ◦ 2006: Named Chief Executive Officer ◦ 2003: Named Chief Financial Officer and President ◦ 2001:

  38. Slide 38: Total Adjusted EBITDA

    APPENDIX B TOTAL ADJUSTED EBITDA NON-GAAP RECONCILIATION (Unaudited) NON-GAAP RECONCILIATION (Unaudited) (In thousands, except per share data) Fiscal Year Ended September 30, 2021 2022 2023 Net (loss) income $ 2,858 $ (99,828) $ 39,136 Income tax (benefit) provision 6,375 (4,391) 1,774 income (loss)

  39. Slide 39: Adjusted Net Income & Earnings Per Share

    APPENDIX C ADJUSTED NET INCOME & EARNINGS PER SHARE NON-GAAP RECONCILIATION (Unaudited) (In thousands, except per share data) Fiscal Year Ended September 30, 2021 2022 2023 per share per share per share Net (loss) income attributable to Matthews $ 2,910 $ 0.09 $ (99,774) $ (3.18) $ 39,291 $ 1.26 Acq

  40. Slide 40: Constant Currency Sales and Adjusted EBITDA

    APPENDIX D CONSTANT CURRENCY SALES AND ADJUSTED EBITDA NON-GAAP RECONCILIATION (Unaudited) (In thousands) Industrial SGK Brand Corporate and Non- Memorialization Technologies Solutions Operating Consolidated Reported sales for the year ended September 30, 2023 $ 842,997 $ 505,751 $ 532,148 $ — $ 1,8

  41. Slide 41: Net Debt & Net Debt Leverage Ratio

    APPENDIX E NET DEBT & NET DEBT LEVERAGE RATIO NON-GAAP RECONCILIATION (Unaudited) (Dollars in thousands) Fiscal Year Ended September 30, 2021 2022 2023 Long-term debt, current maturities $ 4,624 $ 3,277 $ 3,696 Long-term debt 759,086 795,291 786,484 Total debt 763,710 798,568 790,180 Less: Cash and

  42. Slide 42: Free Cash Flow

    APPENDIX F FREE CASH FLOW NON-GAAP RECONCILIATION (Unaudited) Fiscal Year Ended September 30, (Dollars in thousands) 2021 2022 2023 Cash Provided from Operating Activities $ 162,811 $ 126,860 $ 79,524 Less: Capital Expenditures (34,313) (61,321) (50,598) Free Cash Flow $ 128,498 $ 65,539 $ 28,926 No

  43. Slide 43: Robust Cash Flow History

    APPENDIX G ROBUST CASH FLOW HISTORY FREE CASH FLOW 1 ($mm) OPERATING CASH FLOW ($mm) $180 $146 $163 $149 $148 $128 $141 $140 $131 $127 $104 $104 $99 $93 $108 $92 $93 $105 $106 $85 $96 $83 $91 $91 $72 $73 $82 $82 $71 $80 $66 $75 $61 $70 $66 $54 $49 $49 $58 $47 $55 $45 $42 $38 $38 $39 $31 $32 $36 $29

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