Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Sidoti Small Cap Conference January 2022
23 slides from Commercial Vehicle's conference presentation, Jan 19, 2022
Slide 1: Sidoti Small Cap Conference January 19, 2022
Sidoti Small Cap Conference January 19, 2022 Exhibit A
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
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”, “continue”, “likely”, and similar expressions. In particular,
Slide 3: Management in Attendance Today
Management in Attendance Today 3 Harold Bevis President, CEO, Director of CVG 7 years with company - Director since 2014, CEO since 2020 17 years as a CEO, President, Director Experienced at growth, cashflow, ROIC, debt paydown, portfolio balancing Chris Bohnert Chief Financial Officer and Investor
Slide 4: CVG at a Glance
CVG at a Glance CVG is a global provider of components, assemblies and systems to the traditional commercial vehicle market, the electric vehicle market, and the warehouse automation market 2021 Q3 LTM Sales ~$960 million 2021 Q3 LTM Adj. EBITDA $73 million ~7,800 Employees New Business Focus on Ele
Slide 5: CVG Products & Services
January 2022 Investor Presentation| 5 Plastics, Thermoforming, Injection Molding Electric Vehicle Systems Automated Warehouses Trucks / On-road Powersports, ATVs Delivery Vans CVG Products & Services Value Added Products Integrated into Large Systems Customer End Products Automation Systems Seating,
Slide 6: Strong Core Markets, Significant New Accretive Business, Optimization Program
6 Strong Core Markets Significant New Accretive Business Multi-Year Optimization Program on Track Strong Cashflow Focus on ROIC • Core vehicle business is strong for next several years • Core warehouse automation business is strong for many years • Walking away from legacy low-profit business • Reco
Slide 7: Base Transportation Business is Strong & Growing
214 256 301 363 0 50 100 150 200 250 300 350 400 2020 2021 2022 2023 7January 2022 Investor Presentation| Base Transportation Business is Strong & Growing ⚫ eCommerce increasing truck miles & first mile/middle mile/last mile complexities ⚫ North America transportation increasing with less dependency
Slide 8: Strong New End Markets
8January 2022 Investor Presentation| Strong New End Markets NA Truck Builds NA Truck Builds Electric Vehicles, Fuel Cell Vehicles o Government regulation and company environmental initiatives are driving electric vehicle and fuel cell vehicle adoption o New market entrants looking for technical expe
Slide 9: Electric Vehicles
9January 2022 Investor Presentation| Electric Vehicles Low Voltage Systems Electric drive train Low voltage historical build to print business High and low voltage system designs with additional electrical product opportunities Internal Combustion Engines Electric Vehicle o Vehicle evolution and mar
Slide 10: Warehouse Automation
10January 2022 Investor Presentation| Warehouse Automation NA Truck Builds o Growing customer roster & value proposition o Expanding footprint o Europe – new facility open in Czech Republic to serve warehouse automation market. Have first orders for 2022 o Vertical Integration objectives for 2022 o
Slide 11: 2022 Initiatives
11January 2022 Investor Presentation| 2022 Initiatives NA Truck Builds NA Truck Builds Optimize Core Business Walk Away, Reprice Decrease China Supply Chains 3rd Year Vertically integrate Win New Business Debt Paydown Reduce Leverage
Slide 12: CVG is Winning New Diversified Business
January 2022 Investor Presentation| 12 Notes: 1) Vehicle wins are ~18 month ramp-ups and 5-7 year estimated duration with aftermarket 2) Warehouse Automation wins are ~3 month ramp-ups and 3 year estimated duration • Two consecutive years of net new business wins of $100M+ • Electric Vehicles are 35
Slide 13: New Business: $300+ Million of Wins and $1.1 Billion Pipeline
January 2022 Investor Presentation| 13 Number of Customer Wins 109 Number of Project Wins 314 Number of New Customers 36 Number of EV & Fuel Cell Wins 14 Launched Not Yet Launched Size of 2022 New Business Pipeline $1.1 billion Number of 2022 Pipeline Opportunities 317 New Business…$300+ Million of
Slide 14: Debt Reduction Key Goal for 2022
14January 2022 Investor Presentation| Debt Reduction Key Goal for 2022 • Targeting to pay down $25-40 million of debt in 2022 • Leverage ratio estimated to further decline • CVG is cash generative. Through 9 months in 2021, CVG invested $81 million ➢ $70 million in working capital to support >$250M
Slide 15: Investment Highlights
15January 2022 Investor Presentation| Investment Highlights ⚫ Renovating a slow-moving cyclical commercial vehicle company into a vibrant, growing diversified industrial company with higher margins, stronger cashflow ⚫ Underway with a legacy business optimization program to rid the company of undesi
Slide 16: The Road Ahead
The Road Ahead ⚫ $300m/yr of new business won in the first 2 years ⚫ Focus areas are: Electric Vehicles, Fuel Cell Vehicles, Warehouse Automation, Value-Added Products January 2022 Investor Presentation| 16 ⚫ Transportation equipment is needed & in short supply ⚫ Global supply chains impacting CVG s
Slide 17: Financial Update
Financial Update January 2022 Investor Presentation| 17
Slide 18: CVG Sales and Adjusted Operating Income Margin
18January 2022 Investor Presentation| CVG Sales Adjusted Operating Income Margin 3.8% -2.8% 6.4% 3.8% 6.5% 6.5% 5.1% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 187 127 188 216 245 258 240 - 50 100 150 200 250 300 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 (1) Zero
Slide 19: Electrical Systems Sales and Adjusted Operating Income Margin
19January 2022 Investor Presentation| Electrical Systems Sales Adjusted Operating Income Margin 112 74 121 139 162 175 164 - 20 40 60 80 100 120 140 160 180 200 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 5.6% -1.0% 11.1% 7.4% 9.3% 10.7% 10.9% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Q1 20 Q2 20 Q3
Slide 20: Global Seats Sales and Adjusted Operating Income Margin
January 2022 Investor Presentation| Global Seats Sales Adjusted Operating Income Margin 76 54 69 79 91 85 76 - 10 20 30 40 50 60 70 80 90 100 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 6.0% 3.9% 7.4% 2.7% 6.1% 5.9% 0.6% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Slide 21: Last Twelve Month EBITDA Reconciliation
21January 2022 Investor Presentation| Last Twelve Month EBITDA Reconciliation (in millions) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Net income $ (4.1) $ 8.5 $ 5.1 $ 7.5 Interest 5.2 5.0 2.8 1.6 Provision / (Benefit) for Income Taxes 3.9 2.5 1.5 2.4 Depreciation 3.8 3.8 3.8 3.7 Amortization 0.9 0.9 0.9 0.9 I
Slide 22: Facts About CVG's Stock
January 2022 Investor Presentation| 22 ⚫ CVG is just beginning a transformation ⚫ CVGI enterprise value multiple is at 5.8x and is trading at a discount to its peers ⚫ Strong markets, many new business wins, front-end of a new optimization program ⚫ Global supply chains will provide a few bumps alon
Slide 23: Thank You
Thank You
Commercial Vehicle Group — Sidoti Small Cap Conference January 2022 on 6ix