Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Sidoti December Small-Cap Virtual Conference 2022
23 slides from Commercial Vehicle's conference presentation, Dec 7, 2022
Slide 1: Sidoti December Small-Cap Virtual Conference
Sidoti December Small-Cap Virtual Conference December 7, 2022
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures CVG 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”,
Slide 3: CVG Snapshot and Value Proposition
CVG Snapshot and Value Proposition OUR Make the world a better place through our products and actions MISSION YOUNG ENTREPRENEURIAL COMPANY + Founded 2000 + 2021 Revenue: $972 million GLOBAL TIER 1 SUPPLIER + We compete globally with our business model and have >1,000 customers + We are service and
Slide 4: CVG — Focused on Vehicles and Automation
CVG — Focused on Vehicles and Automation Secular Growth Across the Business Units from Electric Vehicle Penetration CVG On Track for our Electrical Systems Business to Become our Largest Business Unit Electrical Systems Seating Structures Aftermarket
Slide 5: CVG Business Strategy Overview
CVG Business Strategy Overview CVG Mission | Make the world a better place through our products and actions « Aggressively grow Electrical Systems and Aftermarket business + New products, new customers * Selectively participate in OE seat business globally with new global seat platform — Unity * Reb
Slide 6: Electrical Systems growth 2023-2025
400 300 200 100 0 2023 2024 2025 Electrical Systems All other
Slide 7: Electrical Systems and Other Segments
• • Electrical Systems Other Segments • • •
Slide 8: E-Commerce Aftermarket Business is Nearing Launch
E-Commerce Aftermarket Business is Nearing Launch Organize Business & Adapt to Post-Covid Get Product Lines Ready Adapter plates for all-make seats Design new custom floormat offering Design new wiper product Design new seat cushion with Serta Design new road watch sensors Get Software Platform Read
Slide 9: Focused and Optimized
Focused and Optimized Base Business Improve profitability or exit Control cost structure and manufacture in-house what we should Lower our costs by getting better and smarter, lean down SG&A Win New Accretive Business Secular growth in Electric Vehicle market globally Expand and diversify our custom
Slide 10: 2021 vs 2025-2027E
2021 2025-2027E 2021 2025-2027E • • • •
Slide 11: CVG Investment Highlights
CVG Investment Highlights » pe ea Significantly improved our pricing across customer base to ensure we are earning attractive margins and to offset material cost increases This will help achieve our goal of 8.5% operating income margin Continuing to win first-fit positions and 2022 on track for 3rd
Slide 12: Financial Review Third Quarter 2022
Financial Review rhird Quarter 2022
Slide 13: Q3 2022 Highlights
Q3 2022 Highlights CVG FINANCIAL HIGHLIGHTS BUSINESS HIGHLIGHTS 4 Alla. GROWTH NEW BUSINESS “on Ne (0) (ap ‘iil ($) “| +4. 9% $39m NET SALES ADJUSTED EBITDA YoY of additional new wins during $251.4 $14.3 etc Total new wins of $143M YTD of new business wins on an annualized basis | E> $ COMPETITIVE P
Slide 14: Quarterly trends Q4'21 to Q3'22
Q4'21 Q1'22 Q2'22 Q3'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4'21 Q1'22 Q2'22 Q3'22 • → •
Slide 15: Third Quarter Segment Results
Third Quarter Segment Results All Vehicle Businesses Up in Sales and Profits, Offsetting Warehouse Automation Pause Adjusted Segment Results Net Sales Operating Income For the Three Months Ended 2022 2021% Change} 2022 2021 % Change September 30, 2022 (in millions) $154.0 $1179 31%] $96 $29 230% $46
Slide 16: Looking Forward
Looking Forward CVG * Completing another round of inflation-driven price increases in Q4 on existing business +> And readying another round for Q1 2023 * Electrical Systems business for Electric Vehicles market is growing, and our opportunities are large and attractive +> Building two new, low-cost
Slide 17: Appendix
Appendix
Slide 18: 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 19: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures cvcG Operating Income 9.5 11.4 Deferred Consideration Purchase Accounting 01 01 Restructuring 07 - Executive transition 03 07 Adjusted Operating Income 10.6 12.2 % of Revenues 4.2% 5.1% Net Income/(Loss) 3.6 75 Interest Expense 28 16 Provision (b
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures — Adjusted EBITDA
Reconciliation of GAAP to Non-GAAP Financial Measures — Adjusted EBITDA {in millions) Net income/(Loss) (4.1) 8.5 5.1 75 2.6 4.0 25 3.6 Interest 5.2 5.0 2.8 1.6 17 2.0 21 2.8 Provision / (Benefit) for Income Taxes 3.9 25 15 2.4 1.9 14 0.9 1.3 Depreciation 3.8 3.8 3.8 3.7 3.8 3.5 3.7 3.7 Amortization
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS
Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS (in mill Net income/(Loss) 3.6 75 Operating income (loss) adjustments 1.0 0.8 Hryvnia fair value adjustments on forward exchange contracts (0.1) - Pension settlement 11 - Adjusted (benefit) provision for income taxes! (0.5) (0.2) Ad
Slide 22: Segment GAAP to Non-GAAP QTD
Segment GAAP to Non-GAAP QTD For the Three Months Ended September 30, 2022 Vehicle Warehouse Electrical Aftermarket & (in millions) Solutions Automation Systems Accessories Corporate Total Operating Income/(Loss) 9.5 (0.9) 5.1 5.0 (9.1) *9.5 Deferred consideration purchase accounting - 0.1 - - - 0.1
Slide 23: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Cash Flow from Operations $ 36 $ (15.4) $ (94) $ 39 $ (89) $ (214) $ 169 $ 383 Capital Expenditures! (1.0) (1.7) (5.2) (4.5) (6.2) (3.6) (5.0) (3.9) Free Cash Flow 2
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