Matthews International Corporation · NASDAQ:MATW
Matthews International — Needham Growth Conference 2025
36 slides from Matthews International's conference presentation, Jan 14, 2025
Slide 1: Matthews International – Transaction Overview
Matthews Sea eTION INTERNATIONAL? OVERVIEW
Slide 2: Transaction Overview
C O N F I D E N T I A L TRANSACTION OVERVIEW TRANSACTION SUMMARY ⚫ Matthews to sell SGK Brand Solutions (“SGK”) to a newly formed entity created by affiliates of SGS & Co (“SGS”) ⚫ Combination of SGS and SGK represents a world-class leader in brand experience and technology- enabled brand solutions
Slide 3: Proactively Advancing Matthews' Strategy
C O N F I D E N T I A L PROACTIVELY ADVANCING MATTHEWS’ STRATEGY Simplifies Matthews’ corporate structure ✓ Realizes significant value for the SGK Brand Solutions segment ✓ Allows for an immediate reduction in debt ✓ Retained upside in the new entity ✓ Potential for additional shareholder value crea
Slide 4: Transaction Highlights
C O N F I D E N T I A L TRANSACTION HIGHLIGHTS ● Transaction values the SGK business at 9.0x adjusted trailing-twelve-months EBITDA, a premium to its existing multiple ● The combination provides the opportunity to realize substantial run-rate cost synergies of over $50 million annually ⚫ Given the p
Slide 5: Needham Growth Conference January 14, 2025
NEEDHAM GROWTH CONFERENCE JANUARY 14, 2025
Slide 6: Business Overview
Ma tthews BUSINESS OVERVIEW INTERNATIONAL?
Slide 7: Revenue by Segment and Geography
Revenue by Segment ~11,000+ EMPLOYEES 6 CONTINENTS 300+ LOCATIONS 30 COUNTRIES Revenue by Geography Across three unique segments and dozens of countries, Matthews maintains market leadership positions due to its consistently high standards, comprehensive product offerings and decades of expertise No
Slide 8: Deep Industry Expertise
Deep Industry Expertise P a platform for continued evolution and growth Trusted Leader in Stable Market High-Growth Technology Innovator Exposure to Favorable Industry Tailwinds P Leading Market Positions P Longstanding Customer Relationships P Broad Geographical Footprint P Diverse End Markets P Pr
Slide 9: Memorialization
MATTHEWS memorialization Helping families move from grieving to remembrance for nearly 100 years Leading provider of products, business solutions and technology services to cemeteries, funeral homes, and monument dealers
Slide 10: Products & Solutions
Products & solutions CEMETERY PRODUCTS FUNERAL HOME SOLUTIONS CREMATION & INCINERATION EQUIPMENT U.S. MARKET POSITION Bronze Memorials - #1 Granite Memorials - #1 Caskets - #2 Cremation Equipment - #1
Slide 11: Growing Position in Cremation Products and Equipment
Significant and growing position in cremation products and equipment with average annual growth of ~9% for 2018–2023 U.S. Casketed Deaths vs. Non-casketed Deaths(1) STRONG and predictable BASE BUSINESS WITH GROWTH OPPORTUNITIES Source: Company Provided Information, Internal Estimates Note: Fiscal ye
Slide 12: Industrial Technologies
Creators of world-leading energy and converting technologies Matthews Engineering Over 70 years of experiences as a production equipment manufacturer, offering advanced calendering and processing systems, coating lines, rotary embossing, cutting cylinders and assembly and production lines Matthews I
Slide 13: Products & Solutions: Industrial Technologies
Industrial Automation Warehouse Automation Product Identification Highly innovative solutions with loyal base Operating at scale for the major 3PL and distribution companies providing e-commerce solutions Comprehensive suite of advanced marking & printing technologies, consumables and software New d
Slide 14: Warehouse Automation Demand in Automation End Market
Warehouse Automation Continued Demand in Automation End Market Multiple industry tailwinds DRIVING growth potential Key Megatrends Driving Growth Growth of E-Commerce Warehouse Labor Shortages Speed of Shipping Improved order fulfillment Increased volume necessitates reducing human-error Shortages o
Slide 15: DBE Process Offers Significant Advantages
DBE PROCESS OFFERS SIGNIFICANT Advantages Source: Company and Customer Provided Information Dry Coated Electrodes Mixing Calendering & Laminating 75% Reduction in Labor 75% Reduction in Utilities Eliminates Toxic Solvents & Improves Battery Performance Allows Faster Gigafactories Buildout Customer E
Slide 16: SGK Brand Solutions
Creators of experiences and solutions, we simplify marketing and amplify brands SGK Brand Solutions connects many of the largest global consumer products companies through every step of the packaging continuum – from brand development and creative stages to the adaptation necessary for deployment an
Slide 17: Products & Solutions: Packaging Continuum
Products & solutions DEFINE CREATE PRODUCE TRANSFORM DESIGN STRATEGY MARKETING OPS CONSULTING BUSINESS PROCESS OUTSOURCING DESIGN PHOTOGRAPHY RETOUCHING ILLUSTRATION eCOMMERCE ASSETS PRODUCTION ART PREMEDIA PRINT TECHNICAL SERVICES FLEXOGRAPHIC PLATES ROTOGRAVURE CYLINDERS TECHNOLOGY APPLICATION Too
Slide 18: Longstanding Relationships with the World's Leading Brands
longstanding relationships with the world’s leading brands Food & Beverage Clients Global Pharma/ Healthcare Clients Global Retailer Clients Other Leading Brands Market Analysis Depth of services and ability to navigate complexity creates strong, lasting customer relationships Matthews’ standardized
Slide 19: Financial Overview
Matthews Gael INTERNATIONAL? OVERVIEW
Slide 20: Q4 & YTD FY2024 Summary
Q4 & YTD FY2024 SUMMARY * See supplemental slides for Adjusted EPS and Adjusted EBITDA reconciliations, and other important disclaimers regarding Matthews’ use of Non-GAAP measures 4th Quarter ("Q4") Highlights Sales SGK Brand Solutions segment current quarter sales higher than a year ago Lower sale
Slide 21: Memorialization
MEMORIALIZATION * See supplemental slide for Adjusted EBITDA reconciliation and other important disclaimers regarding Matthews’ use of Non-GAAP measures 23.0% 21.1% Sales Benefits from recent acquisitions, improved price realization, and higher mausoleum sales U.S. death rates have normalized from h
Slide 22: SGK Brand Solutions
SGK BRAND SOLUTIONS Sales Q4 sales growth, primarily reflecting higher sales in the private-label and merchandising businesses, and improved pricing to help mitigate inflationary cost increases Adjusted EBITDA Higher YTD adjusted EBITDA Favorable impacts of cost reduction initiatives Higher labor-re
Slide 23: Industrial Technologies
INDUSTRIAL TECHNOLOGIES * See supplemental slide for Adjusted EBITDA reconciliation and other important disclaimers regarding Matthews’ use of Non-GAAP measures 15.5% 12.4% 15.6% 10.3% Sales Energy storage sales impacted by customer delays Warehouse automation sales unfavorably impacted by market co
Slide 24: Capitalization and Cash Flows
Debt decreased by $53.8 million during the quarter Current year operating cash flow reflects benefits from working capital reductions Operating cash flow for prior period reflected final payouts for the settlement of the Company’s supplemental retirement plan obligations and prior year swap settleme
Slide 25: Capital Allocation Supports Long-Term Growth
Note: See Disclaimer for Management’s assessment of supplemental information related to non-GAAP net debt leverage ratio. (1) Non-GAAP net debt leverage ratio is defined as outstanding debt (net of cash) relative to adjusted EBITDA. See appendix for reconciliation. CAPITAL ALLOCATION SUPPORT LONG-TE
Slide 26: Key Investment Highlights
Key investment highlights GROWTH OPPORTUNITIES SUPPORTED BY STABLE CORE BUSINESSES 1 FAVORABLE COMPETITIVE POSITIONS ACROSS BUSINESS SEGMENTS 2 ROBUST CASH FLOW HISTORY AND PRUDENT BALANCE SHEET MANAGEMENT 4 3 DIVERSE REVENUE STREAMS ACROSS SEGMENTS, CUSTOMERS AND GEOGRAPHIES STRONG AND EXPERIENCED
Slide 27: Appendix: Supplemental Information
APPENDIX: SUPPLEMENTAL INFORMATION
Slide 28: Non-GAAP Measures Definitions
Included in this report are measures of financial performance that are not defined by GAAP, including, without limitation, adjusted EBITDA, adjusted net income and EPS, constant currency sales, constant currency adjusted EBITDA, and net debt and net debt leverage ratio. The Company defines net debt
Slide 29: Adjusted EBITDA Reconciliation
* See Disclaimer for Management’s assessment of supplemental information related to adjusted EBITDA. Three Months Ended September 30, Year Ended September 30, 2024 2023 2024 2023 Net (loss) income $(68,161) $17,693 $(59,660) $39,136 Income tax provision (benefit) 680 (2,362) (9,997) 1,774 (Loss) inc
Slide 30: Adjusted Net Income and EPS Reconciliation
ADJUSTED NET INCOME AND EARNINGS PER SHARE NON-GAAP RECONCILIATION (Unaudited) (In thousands, except per share data) * See Disclaimer for Management’s assessment of supplemental information related to adjusted net income and adjusted EPS. Three Months Ended September 30, Year Ended September 30, 202
Slide 31: Constant Currency Sales and Adjusted EBITDA Reconciliation
* See Disclaimer for Management’s assessment of supplemental information related to constant currency sales. CONSTANT CURRENCY SALES AND ADJUSTED EBITDA NON-GAAP RECONCILIATION (Unaudited) (In thousands) Memorialization Industrial Technologies SGK Brand Solutions Corporate and Non-Operating Consolid
Slide 32: Net Debt Non-GAAP Reconciliation
* See Disclaimer for Management’s assessment of supplemental information related to net debt. September 30, 2024 September 30, 2023 Long-term debt, current maturities $6,853 $3,696 Long-term debt 769,614 786,484 Total debt 776,467 790,180 Less: Cash and cash equivalents (40,816) (42,101) Net Debt $7
Slide 33: Disclaimer: Forward-looking Information
Disclaimer Forward-looking Information Any forward-looking statements contained in this release are included pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the ex
Slide 34: Disclaimer: Non-GAAP Measures
Disclaimer The Company has presented constant currency sales and constant currency adjusted EBITDA and believes these measures provide relevant and useful information, which is used by the Company's management in assessing the performance of its business on a consistent basis by removing the impact
Slide 35: Disclaimer: Additional Information
Disclaimer Additional Information In connection with the Company’s 2025 Annual Meeting, the Company has filed with the U.S. Securities and Exchange Commission (“SEC”) and commenced mailing to the shareholders of record entitled to vote at the 2025 Annual Meeting a definitive proxy statement and othe
Slide 36: Thank You
THANK YOU
Matthews International — Needham Growth Conference 2025 on 6ix