Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Sidoti November Micro-Cap Conference 2023
20 slides from Commercial Vehicle's conference presentation, Nov 15, 2023
Slide 1: Sidoti Micro-Cap Conference
Sidoti Mictes “Cab Conf LT we Robert Griffin - Chairman anal interim Presige nt Andy Cheung - si Pregidaat & i Fin _ Officer j ke oe E&Y & Chief Executive: Officer —
Slide 2: Forward-looking statements
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”, “targets” “forecast” “continue”, “likely”, and similar express
Slide 3: Who We Are
¢ An experienced Tier 1 partner who launched a transformation strategy to drive customer and product diversification by winning new business. WHO WE ARE a : ; . ¢ Driving growth in our electrical systems for new business growth and supply chain improvements. + A multi-year growth plan is already und
Slide 4: CVG - Key Product Lines
Slide 5: Key CVG Markets Update
Key CVG Markets Update » 4 NA Class 8 Truck Build Electrical Systems - Wire Harnesses ACT Research and FTR are forecasting 2023 North 7 American Class 8 truck production levels to be CVG Revenue Profile + Global commercial and automotive vehicle wire between 327,000 and 336,000 trucks. The 2022 actu
Slide 6: Continuing to Deliver on our Strategy
Continuing to Deliver on our Strategy Win new business to transform our revenue profile + Diversify our customer base and product portfolio + Significantly grow the Electrical Systems business through new business wins, volume growth and market diversification + Approximately $140 million of new bus
Slide 7: Strategically Repositioning the Business
Strategically Repositioning the Business CVG Make Electrical Systems our largest business * Continue to win accretive new business, increase volumes and diversify our product portfolio + Increase the design and engineering value in our products * Strategically add new plant locations which provide c
Slide 8: New Business Beginning to Transform CVG
New Business Beginning to Transform CVG CVG ~75% of the 2023 new wins YTD are in the Electrical Systems Segment 2023 new wins ~$140M YTD (annual value when fully ramped) Electrical Syaismne All Other * 50 different customers * 30+ are new customers * 70+ awards across multiple end markets Autonomous
Slide 9: New Business Wins driving New Electrical Systems Plants
New Business Wins driving New Electrical Systems Plants CVG @ = New Electrical Systems Plant e = Existing Electrical Systems Plant + 2 new Electrical Systems plants ramping up in Mexico and Morocco * We are evaluating an expansion of our Moroccan footprint
Slide 10: 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 11: Q3 2023 Highlights
Q3 2023 Highlights FINANCIAL HIGHLIGHTS % an NET SALES ADJUSTED EBITDA $247 $16.6 MILLION MILLION ég, < ADJUSTED ADJUSTED EPS OPERATING INCOME $0 22 $1 2.5 PER DILUTED SHARE MILLION Note: US GAAP net income was $7.3M for Q3 2023. GAAP diluted income per share was $0.22 for Q3 2023 CVG ~ BUSINESS HIG
Slide 12: Financial Review
Financial Review Noverber 15,2023
Slide 13: Revenue and Adj. Operating Income YTD 2022 vs YTD 2023
Revenue Adj. Operating Income Revenue Adj. Operating Income YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 114.0 109.0 104.0 99.0 94.0 89.0 84.0 79.0 74.0 Revenue Adj. Operating Income Revenue YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 Adj. Operating Income YTD 20
Slide 14: Appendix
Slide 15: 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 16: Operating Income and EBITDA Reconciliation
Operating Income/(Loss) 12.4 9.5 Restructuring 01 07 Deferred consideration purchase accounting - 01 Executive transition - 0.3 Adjusted Operating Income 12.5 10.6 % of Revenues 5.1% 4.2% Net Income/(Loss) 7.3 3.6 Interest Expense 26 28 Provision (benefit) for income taxes 22 13 Depreciation Expense
Slide 17: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Me (in millions) Net income/(Loss) 2.6 4.0 25 3.6 (32.0) 8.7 10.1 7.3 Interest 17 2.0 24 2.8 2.9 2.9 2.8 26 Provision / (Benefit) for Income Taxes 1.9 14 0.9 13 7.4 3.3 27 2.2 Depreciation 3.8 3.5 3.7 37 3.7 3.4 3.5 3.6 Amortization 0.9 0.9 0.8 0.8 0.8 0.
Slide 18: Reconciliation of GAAP to Non-GAAP Diluted EPS
Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS CVG (in millions 0 Q3 2022 Net income/(Loss) 7.3 3.6 Operating income (loss) adjustments 0.1 1.0 Hryvnia fair value adjustments on forward exchange contracts - (0.1) Adjusted (benefit) provision for income taxes - (0.5) Pension sett
Slide 19: Segment GAAP to Non GAAP QTD
Segment GAAP to Non GAAP QTD For the Three Months Ended Sep 30, 202 (in millions) Operating Income/(Loss) Restructuring Adjusted Operating Income/(Loss) % of Revenue For the Three Months Ended (in millions) Operating Income/(Loss) Restructuring Deferred consideration purchase accounting Executive tr
Slide 20: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Cash Flow from Operations $ (214) $ 169 $ 383 $ 35.2 $01 $ 15 $ 185 Capital Expenditures! (3.6) (5.0) (3.9) (7.2) (3.3) (5.9) (6.0) Free Cash Flow (25.0) 11.9 34.4 28.0 (3.2
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