Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Investor Presentation (August 2017)
21 slides from Commercial Vehicle's investor presentation, Aug 16, 2017
Slide 1: Commercial Vehicle Group, Inc. August 2017
Commercial Vehicle Group, Inc. August 2017 Patrick Miller President and CEO Tim Trenary Chief Financial Officer Terry Hammett Treasurer and VP Investor Relations
Slide 2: Forward Looking Statement
Forward Looking Statement pg | 1 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 presentation m
Slide 3: Global Presence
23 Facilities 9 Countries 2016 sales $662M NASDAQ CVGI Global Presence pg | 2 North America 12 facilities Europe 5 facilities Asia Pacific 6 Facilities Mexico Australia Ohio United Kingdom Belgium Czech Republic Ukraine India China
Slide 4: Products
Products pg | 3 Seats & Seating Systems Cabs and Sleeper BoxesWiper Systems, Mirrors & Controls Wire Harnesses & Controls Interior Trim
Slide 5: 2016 Sales - $662 Million
2016 Sales - $662 Million pg | 4 78% 11% 11% N. America EMEA APAC 42% 19% 5%2% 18% 14% OEM Truck OEM Construction OEM Bus OEM Agriculture Aftermarket Other 42% 23% 20% 9% 6% Seats Wire Harnesses Trim Structures Wipers / Mirrors 17% 15% 10% 7%6% 6% 39% Volvo Daimler Paccar Caterpillar John Deere Navi
Slide 6: 2016 Business Segment Sales
2016 Business Segment Sales¹ pg | 5 1. Before intercompany sales eliminations 62% 19% 8% 2% 9% MD/HD Truck OEMs Aftermarket and OE Service Bus OEMs Construction OEMs Other Global Truck and Bus $416 Million (62%) 47% 16% 14% 8% 5% 3% 7% Construction Aftermarket and OE Service Automotive Truck Militar
Slide 7: Industry Outlook – North America Truck
Industry Outlook – North America Truck pg | 6 North American Truck Build Rates 2016 CVG Sales by End Market (‘000s of units) 228 245 253 289 295 231 269 2016A 2017E 2018E 2019E 2020E 2021E 2022E Heavy-Duty Truck (Class 8) 233 245 249 256 271 266 275 2016A 2017E 2018E 2019E 2020E 2021E 2022E 42% 19%
Slide 8: Industry Outlook – Global Construction
534 625 649 652 630 225 260 273 274 26821 21 21 22 22151 171 181 183 188160 190 202 199 195 2016A 2017E 2018E 2019E 2020E Asia Pacific Europe Latin America Middle East & Africa North America (‘000s of units) Industry Outlook – Global Construction pg | 7 Global Sales of Construction Equipment 2016 CV
Slide 9: Strategies to Improve the Core
Strategies to Improve the Core pg | 8 18% Fewer Sales 18% Fewer Sales 18% Fewer Sales Restructuring and cost reductions SGA reductions fully implemented Footprint and operational changes – target completion by end of 2017 CVG Digital - Digitize processes, design, production, and products U
Slide 10: Examples of CVG Digital Actions
Examples of CVG Digital Actions pg | 9 18% Fewer Sales 18% Fewer Sales 18% Fewer Sales Virtual Wiring Boards for high proliferation Built-in Quality – Digital error proofing and smart processes Real time process monitoring and data tracking Digital design and validation - speeds product development
Slide 11: Improving the Foundation
Improving the Foundation pg | 10 18% Fewer Sales 18% Fewer Sales 18% Fewer Sales Institutionalizing Lean Culture Reducing Working Capital Cost Focus to lower Break-Even Investing in Innovation Next Gen Product Growth Initiatives Customer Support CVG Digital Actions Optimizing Manufacturing Footprint
Slide 12: Recent Customer Awards
pg | 11 Recent Customer Awards • 2016 Caterpillar Supplier Quality Excellence Awards • CVG Czech Republic – Platinum (3 years in a row) • CVG China – Gold Award • CVG Mexico – Bronze Award • 2016 John Deere • Partner Award - CVG Mexico • Global Supplier Excellence - CVG Wire Harness • 2016 Cummins P
Slide 13: Targets for Growth
pg | 12 Targets for Growth Global Truck and Bus Next Gen seat products for North America, India, and China. Expand interior trim and wiper options in Europe. Wire harnesses – Europe and North America Expanding capacity in Wire harness – Growing in construction, agriculture, truck, and power generati
Slide 14: Financial Update
FINANCIAL UPDATE
Slide 15: Financial Results
Financial Results pg | 14 Outlook for medium and heavy duty truck production 000’s)* Class 8 Class 5-7 * Source: ACT Research See appendix for reconciliation of GAAP to non-GAAP financial measures (Dollars in millions) Q2 2016 Q2 2017 Sales $ 178.3 $ 195.1 Market improvement Gross Profit $ 24.3 $ 22
Slide 16: Business Segments
Business Segments¹ pg | 15 1 Before intercompany sales eliminations See appendix for reconciliation of GAAP to non-GAAP financial measures (Dollars in millions) Global Truck & Bus Global Construction & Agriculture Sales $ 119.9 $ 78.2 Gross Profit $ 17.1 $ 5.9 MX labor shortage - $4 million Q2 '17 i
Slide 17: Capital Structure
See appendix for reconciliation of GAAP to non-GAAP financial measures Capital Structure pg | 16 Capital Allocation: 1.) liquidity 2.) growth 3.) de-leverage 4.) return capital to shareholders LTM Q1 LTM Q2 1 (Dollars in millions) 2017 2017 Principal Balance $ 175 Debt $ 235 $ 175 Interest LIBOR + 6
Slide 18: GAAP to Non-GAAP Reconciliation Appendix
GAAP to Non-GAAP Reconciliation APPENDIX
Slide 19: Adjusted Operating Income Reconciliation
pg | 18 GAAP to Non-GAAP Reconciliation Adjusted Operating Income Reconciliation Q2 Q2 (Dollars in millions) 2016 2017 Operating Income $ 8.4 $ 7.6 Margin 4.7 % 3.9 % Special Items: Restructuring & Related 0.5 0.9 Adjusted Operating Income $ 8.9 $ 8.4 Margin 5.0 % 4.3 %
Slide 20: EBITDA & Adjusted EBITDA Reconciliation
EBITDA & Adjusted EBITDA Reconciliation pg | 19 GAAP to Non-GAAP Reconciliation LTM LTM (Dollars in millions) Q1 2017 Q2 2017 Net Income $ 4.8 $ 2.3 Interest Expense 19.3 21.9 Tax Provision (Benefit) (1.7) (1.8) Depreciation 14.7 14.5 Amortization 1.3 1.3 EBITDA $ 38.4 $ 38.2 Restructuring & Related
Slide 21: Business Segment Adjusted Operating Income Reconciliation
pg | 20 GAAP to Non-GAAP Reconciliation Business Segment Adjusted Operating Income Reconciliation Global Global Truck Construction (Dollars in millions) & Bus & Agriculture Operating Income $ 11.1 $ 1.9 Margin 9.2 % 2.5 % Special Items: Restructuring & Related 0.9 Adjusted Operating Income $ 11.1 $
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