Cts Corporation · NYSE:CTS
Cts — Investor Presentation (June 2021)
24 slides from Cts's investor presentation, Jun 2, 2021
Slide 1: June 2021 Investor Presentation
June 2021 Investor Presentation
Slide 2: Forward-looking statements
This document contains statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, any financial or other guidance, statements that reflect our cu
Slide 3: Solid Foundation With Opportunities For Growth
Solid Foundation With Opportunities For Growth 3 Sales/Technical Office Manufacturing Facility Note: Sales by region and end market based on trailing twelve months sales as of March 31, 2021 We aim to be a leading provider of sensing and motion devices as well as connectivity components, enabling an
Slide 4: Broad Product Portfolio Around Targeted Strategy
Broad Product Portfolio Around Targeted Strategy 4 Controls Pedals Piezoelectric Products Position Sensors Switches Temperature Sensors Transducers EMI/RFI Filters Frequency Control Products RF Filters Specialty Capacitors Specialty Resistors Piezoelectric Products Rotary Actuators
Slide 5: Transportation
Transportation 5 Motorcycles Light Vehicles Electric/Hybrid Vehicles Commercial Vehicles/Off-Road Market Sectors Key Customers Relevant Products Accelerator Pedals Position Sensors Temperature Sensors Current Sensors Smart Actuator
Slide 6: Industrial
Industrial 6 Piezoelectric Components Transducers Sensors & Controls Switches EMI/RFI Filters Temperature Sensors Flow Metering Inkjet Print Heads HVAC Systems Market Sectors Commercial Sonar Key Customers Relevant Products
Slide 7: Medical
Medical 7 Piezoelectric Components Sensors & Controls Switches Frequency Control Products EMI/RFI Filters Equipment Control Panel Ultrasonic Imaging Therapeutic Ultrasound Market Sectors Dental Equipment Key Customers Relevant Products
Slide 8: Aero & Defense
Aero & Defense 8 Piezoelectric Components Transducers RF Filters Temperature Sensors Frequency Control Products Relevant Products Market Sectors Key Customers Sonobuoys Hydrophones Torpedo/Missile Control Airplane Communications
Slide 9: Telecom & IT
Telecom & IT 9 Piezoelectric Components RF Filters EMI/RFI Filters Frequency Control Products Relevant Products Market Sectors Key Customers Macro Cell Base Stations Small Cell Base Stations Satellite Communication Wireline/ Network Switching
Slide 10: End Markets Growing Mid-Single Digits
End Markets Growing Mid-Single Digits 10 Transportation Industrial Medical Aero & Defense Telecom & IT SAM $1.9B Actuators – Asia/EU customers Inductive Accelerator Pedals Current Sensors E-Brake Other sensors for EV/PHEV 3D and textile printing Applications in flow, level and temperature sensing Up
Slide 11: Strategic M&A Approach
11 Strategic M&A Approach Case Study: Successfully Built Ceramic-based Temperature Sensor Growth Platform Temperature sensors for Industrial applications 2019 Position Sensing, Ceramic materials Pre 2019 SAM : $1,900M 2020 Temperature sensors for Medical applications SAM : $1,100M Robust Growth Plat
Slide 12: Sensor Scientific Inc. Acquisition
Sensor Scientific Inc. Acquisition 12 Products Applications Customers Thermistors Thermistor assemblies and probes RTDs and Thermocouples Neonatal applications Lab freezers Fluid warmers Analytical Instruments Company Overview Acquisition Rationale Founded in 1983, facilities in Fairfield, NJ and Ca
Slide 13: Balanced Capital Deployment Approach
Balanced Capital Deployment Approach 13 Capital Structure Leverage = 1.0x - 2.5x EBITDA Operating Cash Flow Return Capital to Shareholders ~4% of Sales 20-40% of Free Cash Flow 12-15% of Sales 60-80% of Free Cash Flow Growth Acquisitions Investment Dividends & Buybacks
Slide 14: Financial Performance Trend and 2021 Guidance
Financial Performance Trend and 2021 Guidance 14 Adjusted Earnings Per Share Sales ($ Millions) $500 $445 $1.70 $1.35 (Using Diluted Shares)
Slide 15: Strong Cash Conversion and Balance Sheet
Strong Cash Conversion and Balance Sheet 15 Free Cash Flow ($ Millions) $300 $103 $50 Borrowed Total Facility Low Leverage and Debt to Equity Ratio Solid Pipeline of M&A Targets Disciplined Approach – Strategic Fit, ROIC Note: FCF Conversion = FCF / Adjusted Net Earnings Cash and Debt ($ Millions) F
Slide 16: Financial Framework Targeting 10% Annual Growth
Financial Framework 16 Targeting 10% Annual Growth (Organic + Inorganic)
Slide 17: Pension Plan Settlement Update
Pension Plan Settlement Update Plan status on Dec 31, 2020 Overfunded on cash basis approx. $55m Unrecognized deferred losses of approx. $125M Plan termination steps in process Lump sum settlement payout – Q2 2021 Purchase of final annuities – Estimated Q3-Q4 2021 Expected 2021 impact Estimated non-
Slide 18: Appendix
Appendix cts
Slide 19: CTS Core Values
CTS Core Values ps iO) Play to Win Responsiveness © © Simplicity Solution Oriented cts
Slide 20: Financial Summary
($ Millions, except percentages and Adjusted Diluted EPS) 20 Financial Summary Note: See Regulation G reconciliations from GAAP to Non-GAAP measures and adjustments. Net Sales Adjusted Diluted EPS Operating Cash Flow Total Debt / Capitalization Depreciation and Amortization Adjusted EBITDA Adjusted
Slide 21: Regulation G Schedules: Adjusted EBITDA
21 Regulation G Schedules ($ Millions, except percentages) Adjusted EBITDA
Slide 22: Regulation G Schedules: Adjusted Net Earnings
22 Regulation G Schedules ($ Millions, except percentages) Adjusted Net Earnings
Slide 23: Regulation G Schedules: Adjusted Diluted EPS, Debt to Capitalization
23 Regulation G Schedules Adjusted Diluted EPS ($ Millions, except percentages) Total Debt to Capitalization
Slide 24: Regulation G Schedules: Free Cash Flow
24 Regulation G Schedules ($ Millions) Free Cash Flow