Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Investor Presentation (May 2016)
21 slides from Commercial Vehicle's investor presentation, May 11, 2016
Slide 1: Commercial Vehicle Group, Inc. May 2016
Commercial Vehicle Group, Inc. Patrick Miller President and CEO Tim Trenary Chief Financial Officer Terry Hammett Treasurer and VP Investor Relations May 2016
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. In particular, this press release may con
Slide 3: Commercial Vehicle Group - Overview
Commercial Vehicle Group - Overview 27 Facilities 9 Countries 2015 sales $825M NASDAQ CVGI pg |2
Slide 4: Products: Two Major Segments
Products Two Major Segments - Global Truck and Bus, Global Construction and Agriculture pg | 3
Slide 5: 2015 Consolidated Sales Breakout
2015 Consolidated Sales Breakout 41% 22% 19% 11% 7% Product Seats Trim Wire Harness Structures Wipers/Motors 49% 18% 4% 1% 16% 12% End Market OEM Truck OEM Construction OEM Bus OEM Agriculture Aftermarket Other 21% 18% 11% 8% 7% 6% 29% Customer Volvo Daimler Paccar Caterpillar Navistar John Deere Al
Slide 6: 2015 Segment Sales Breakout
2015 Segment Sales Breakout 70% 15% 6% 2% 7% Global Truck and Bus MD/HD Truck OEM Aftermarket/OES Bus OEMs Construction OEMs Other 52% 16% 14% 5% 3% 3% 7% Global Construction and Agriculture Construction Aftermarket/OES Auto Truck Agriculture Military Other • MD/HD Truck OEM 70% • Aftermarket/OES 15
Slide 7: Global Truck and Bus
Global Truck and Bus Improve the Core • Defend leadership position in NA – Next Gen product launches • Transition to hard trim with asset and resource investments • Optimize landed cost positions with key customers – The restructuring plans support this direction • New process technology, Productivi
Slide 8: GTB - Improve the Core
GTB - Improve the Core pg | 7 • New automated system using dry substrates improves labor, material usage, floor-space and cycle time • Proprietary process technology and material • Next generation headliner business won with this process Hard Trim – Molding and Forming • Installed large tonnage inje
Slide 9: GTB – Growth Example India Investment
GTB – Growth Example India Investment • Developed a modular driver seat for applications on truck, bus, and off-road vehicles • Locally sourced, common core architecture modified to specific needs; meets global standards • Announced domestic wins with new products – JCB, Eicher, Komatsu, and TATA On
Slide 10: Global Construction & Agriculture
Global Construction & Agriculture Improve the Core • Restructuring efforts – Announced Edgewood, IA facility consolidation into Mexico – Expanding Mexico and Ukraine wire harness • Margin enhancement through commercial, productivity, supply chain focus • Seat operations in China and Europe Growth •
Slide 11: GCA - Improve the Core
GCA - Improve the Core Cost/Margin • Restructuring – reducing fixed costs and improving leverage • Operational Excellence gaining traction – Re-alignment of seat product/process complexity – Driving quality, throughput, and productivity • Supply Chain – Simplifying chain and logistics – localization
Slide 12: GCA – Growth
GCA – Growth • Wire harness – Improvements in flexibility and low cost capacity – Installing small lot production processes – Expanding foam harness to Europe • Product Development – Sentinel Seat in production in North America and Europe • Foam in Place derivative in 2016 – light duty construction
Slide 13: Financial Update
FINANCIAL UPDATE pg | 12 pg |
Slide 14: Financial Results: Sales and Adjusted Operating Income Margin
Financial Results Sales and Adjusted Operating Income Margin See appendix for reconciliation of GAAP to non-GAAP financial measures – Adjusted Operating Income reconciliation pg | 13 Dollars (millions) 5.4% 3.3% 5.3% 0% 1% 2% 3% 4% 5% 6% 50 100 150 200 250 Q1 2015 Q4 2015 Q1 2016 Operating Income Ma
Slide 15: Financial Results
See appendix for reconciliation of GAAP to non-GAAP financial measures – Adjusted Operating Income reconciliation Financial Results • Sales generally reflect end markets • Gross profit margin up on less sales • Centrally led Procurement & Logistics • Operational Excellence • Productivity • Facility
Slide 16: Segments
Segments1 Strong North American business Developing global presence Profitable Developing global seat business Leverage GTB capabilities and know-how Seat cost structure not yet optimized Profitable wire harness business/Winning new wire harness business (Dollars in millions) Global Truck
Slide 17: Capital Structure
See appendix for reconciliation of GAAP to non-GAAP financial measures – EBITDA reconciliation Capital Structure pg | 16 Capital Allocation Strategy – 1.) liquidity; 2.) growth; 3.) de-leverage; 4.) return capital to shareholders (Dollars in millions) 2013 2014 2015 LTM Q1 2016 Principal Balance $23
Slide 18: Appendix
Appendix pg | 17
Slide 19: Adjusted Operating Income Reconciliation
GAAP To Non-GAAP Reconciliation Adjusted Operating Income Reconciliation 2016 (Dollars in millions) Q1 Q4 Q1 Sales 220.3 184.7 180.3 Cost of Sales 191.2 160.4 154.6 Gross Profit 29.1 24.3 25.7 SGA 17.6 18.7 16.8 Amortization 0.3 0.3 0.3 Operating Income 11.2 5.3 8.6 OIM 5.1% 2.9% 4.8% Special Items:
Slide 20: EBITDA Reconciliation
EBITDA Reconciliation GAAP To Non-GAAP Reconciliation pg | 19 (Dollars in millions) 2013 2014 2015 LTM Q1 2016 Operating Income 6.4 33.7 38.0 35.4 Depreciation 19.0 16.7 16.4 16.3 Amortization 1.6 1.5 1.3 1.3 EBITDA 27.0 51.9 55.7 53.0
Slide 21: Segment Adjusted Operating Income Reconciliation
GAAP To Non-GAAP Reconciliation Segment Adjusted Operating Income Reconciliation Quarter Ended March 31, 2016 (Dollars in millions) Global Truck & Bus Global Construction & Agriculture Operating Income $ 11.0 $ 3.8 2016 Special Items Restructuring $ 0.1 $ 0.1 Adjusted Operating Income $ 11.1 $ 3.9 A
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