Trimas Corporation · NASDAQ:TRS
Trimas — Investor Day (September 2011)
28 slides from Trimas's investor day presentation, Sep 14, 2011
Slide 1: Rieke Packaging Systems Analyst Day September 14, 2011
Rieke Packaging Systems Analyst Day September 14, 2011 NASDAQ • TRS
Slide 2: Forward Looking Statements
Forward Looking Statements Any “forward-looking” statements contained herein, including those relating to market conditions or the Company’s financial condition and results, expense reductions, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including, but n
Slide 3: Opening Remarks – Dave Wathen, TriMas CEO
Opening Remarks – Dave Wathen, TriMas CEO
Slide 4: Business Environment
Business Environment • Management processes proven through the cycle • “Choppy” demand levels; unclear macro- economics • Constant attention to capture opportunities and mitigate risks • Experienced, expert management teams at SBUs • Diversified…Some end markets showing upside, some downside • Posit
Slide 5: Strategic Aspirations
Strategic Aspirations • High single-digit top-line growth • Earnings growth faster than revenue growth • 3% to 5% of total gross cost productivity gains annually – utilize savings to fund growth • Invest in growth programs that deliver new products, new markets and expanded geographies • Increase re
Slide 6: Balanced Diversification
Cequent Engineered Components Revenue: $79.5 7.6% of Company Aerospace & Defense EnergyPackaging Revenue: $149.5 14.4% of Company Revenue: $173.8 16.7% of Company Revenue: $189.6 18.2% of Company North America Revenue: $368.9 35.5% of Company ($ in millions; from continuing operations) 6/30/11 LTM R
Slide 7: Rieke Introduction
Rieke Introduction • Strong management team • Innovative spirit • Long-term customer relationships • Global footprint • Proven track record of growth and margin expansion 7 Core growth platform for TriMas.
Slide 8: Lynn Brooks – President, Rieke Packaging
Lynn Brooks – President, Rieke Packaging
Slide 9: Packaging Overview
Packaging Overview • Diverse products designed to enhance customers’ ability to store, transport, process and dispense 9
Slide 10: Packaging Overview: Industrial Closure and Specialty Systems
Industrial Closure Systems (Approx. 60% of historical segment revenue) • Products include: • Steel and plastic closure caps • Drum and pail closures • Rings and levers • End markets include: • Industrial chemicals • Agricultural chemicals • Sanitary and cleaning chemicals • Petroleum • Paints and so
Slide 11: Approximate Revenue by End Market
Approximate Revenue by End Market 25% 5% 21% 24% 12% 38% 5% 2010 Revenue Chemicals Paints Petroleum Pharma/Food/Personal Care All Other 20% 20% 10% 45% + 5% 2013 Revenue Forecast 11 /Nutraceutical
Slide 12: Packaging Financial Overview
Packaging Financial Overview $161 $145 $171 2008 2009 2010 Net Sales $32 $34 $49 2008 2009 2010 Operating Profit(1) and Margin (1) Operating Profit excludes Special Items of $62.9 in 2008 and $0.6 in 2009 Consistent profitability despite economy. 12 19.6% 23.2% 28.5% $ in millions
Slide 13: Culture of Productivity
• Target “3x salary” in incremental profit to justify new hires • Constant review of cost footprint • Re-engineering products and specs • Ability to obtain fixed cost leverage • Realize acquisition synergies Culture of Productivity 13 Ability to fund growth and support business expansion.
Slide 14: Current Geographic Footprint
Production Locations Warehouse/Sales Locations Current Geographic Footprint Rieke is a global business and will continue to expand geographic coverage. 14
Slide 15: How Does Rieke Differentiate?
How Does Rieke Differentiate? • Customized solution – focus on customer needs and application vs. one size fits all • Intellectual property • Significant technical support and engineering • Speed and delivery advantages – start to finish time • Broader geographic presence 15
Slide 16: Industrial Closures
Industrial Closures 16 • Rieke historically focused on closures for industrial customers – since 1921 • No. 1 or No. 2 market share in most industrial products in North America and Europe • End user specifications “pull” demand • 90% of revenue is specified • Intellectual property coverage on approx
Slide 17: Industrial Closures
Industrial Closures • Historical margins consistent with specialty system products • Slower growth business – moves with industrial GDP • Continue to maintain/grow market share • Ensure products have barriers to entry/intellectual property • Continue to capture productivity 17 More significant growt
Slide 18: Growth Strategies
Growth Strategies • Target specialty dispensing and closure products into higher end growth markets • Pharmaceutical, medical, food, beverage, nutrition and personal care • Focus on Asian market and begin to cultivate other geographic opportunities • China, Southeast Asia, South America • Consider v
Slide 19: Actual New Product Sales
Actual New Product Sales Proven model for product development and growth. Track Record of Growth in New Products 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 19 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 20: Specialty Systems Market – North America
Specialty Systems Market – North America • Specialty dispensing in North America • Focus has been on pharma, personal care, food and beverage markets • More than 70% of sales are covered via IP • 2010 sales were approximately $40M, while target markets exceed $500M and are growing in North America •
Slide 21: Specialty Systems Market – Europe
Specialty Systems Market – Europe • Specialty dispensing products in Europe • Dispensing is more than half of Rieke sales in Europe • Leverage Rieke locations in France, Germany, Italy and the United Kingdom • Target market for specialty systems in Europe is approximately $500M • Major end users inc
Slide 22: Specialty Systems Market – Asia
Specialty Systems Market – Asia • Market in transition from supply base to customer base • Manufacturing facility in Asia • Low cost, high quality • Started sales and business development effort in 4Q09 • Focused on China, Indonesia and Southeast Asian markets • Expect to double 2011 sales in 2012 •
Slide 23: Bolt-on Acquisition Strategy
Bolt-on acquisition criteria: • Provide new products, new markets • Markets similar to our focus • Intellectual property coverage • Ability to leverage Rieke’s footprint to capture incremental revenue • Accretive – financials make sense Bolt-on Acquisition Strategy 23
Slide 24: Innovative Molding Acquisition
Innovative Molding Acquisition • Manufacturer of plastic closures for bottles and jars located in California and Arkansas (primarily regional focus) • Produces 360 million caps per year ranging in size from 28mm to 120mm • Holds numerous patents on closures, container finishes, molds and tooling • C
Slide 25: Innovative Molding Video
Innovative Molding Video © wnovarive www.innovativemolding.com Potemas =
Slide 26: Innovative Molding Strategy
• Cross sell products of both companies • Leverage Rieke’s assets to expand customer base • Targeting Midwest and Southeast United States • Potential opportunities in Mexico and China; reviewing South America and Europe • Potential cost efficiencies can be significant • Potential introduction of sma
Slide 27: Summary
• Continue to focus on higher growth market sectors • Maintain our position in industrial products • Own our technology • Innovate • Expand geographically • Pursue bolt-on acquisitions • Continue to reduce costs and generate productivity Summary 27
Slide 28: Questions & Answers
Questions & Answers