Core Molding Technologies Inc · AMEX:CMT
Core Molding Technologies — 2022 Midwest IDEAS Conference
21 slides from Core Molding Technologies's conference presentation, Aug 22, 2022
Slide 1: 2022 Midwest IDEAS Conference Investor Presentation
2022 Midwest IDEAS Conference INVESTOR PRESENTATION August 2022 1
Slide 2: Disclaimers
DISCLAIMERS This presentation, our remarks, and answers to questions may contain forward-looking statements within the meaning of the federal securities laws. As a general matter, forward-looking statements are those focused upon future plans, objectives or performance as opposed to historical items
Slide 3: Presenters
3 PRESENTERS Dave Duvall President and CEO John Zimmer EVP, CFO and Treasurer
Slide 4: Investment Highlights
4 INVESTMENT HIGHLIGHTS $15B Total Addressable Market $344M TTM 6/30/22 Revenues Leading Composite Manufacturer Growing Industries Growing application of composites Experienced Management Team Strong Financial Platform • Large diversified customers and industries • Manufacturing footprint: U.S.(3),
Slide 5: Company Overview at a Glance
The most reliable, innovative and responsive partner in engineered materials and manufacturing solutions: SOLUTION | INNOVATION | MANUFACTURING COMPANY OVERVIEW AT A GLANCE NYSE American CMT Employees 1,600 Fiscal Year 2021 $307 Million Founded in 1980 Headquartered in Columbus, Ohio Major Customer
Slide 6: Large, Diversified Customers & Industries
12% 14% 12% 13% 13% 6% 3% 27% • Long-term relationships with blue-chip companies • Diverse industries • Single-source manufacturing arrangements • Key customers in industries with extensive structural plastics’ needs 6 LARGE, DIVERSIFIED CUSTOMERS & INDUSTRIES All Others Building Products | Industri
Slide 7: Strategic Manufacturing Footprint
STRATEGIC MANUFACTURING FOOTPRINT 478 338 274 140 87 61 Matamoros Columbus Cobourg Gaffney Winnona Monterrey Floor Space Square Feet (in 000's) 32.0% 26.0% 20.0% 9.0% 6.0% 7.0% Columbus Matamoros Cobourg Winona Gaffney Monterrey 2021 Product Sales* (by facility) Columbus, OH Matamoros, MexicoCobourg
Slide 8: $15+ Billion Total Addressable Market
$15+ Billion Total Addressable Market (1) Technical solutions applying engineered materials to expand CMT’s Total Addressable Market $5.8B $2.6B $2.3B $1.9B $0.9B $0.6B $0.3B $0.3B Automotive (Select Opportunities) Packaging Consumer Products Truck Building Products Industrial & Utilities Grow Defen
Slide 9: Distinct Competitive Advantages
DISTINCT COMPETITIVE ADVANTAGES 9 Large portfolio of processes & materials Engineered materials and innovation processes to create optimal custom solution Large installed asset base and facility footprint Single source provider Engineered materials providing wide range of weight, performance & recyc
Slide 10: Distinct Competitive Advantages: Market Applications
DISTINCT COMPETITIVE ADVANTAGES Market Applications Why They Choose Core Building Products Lattice, Decking, Cabinets Durability Cost savings Material substitution Industrial/Utilities Water & Power Distribution Corrosion resistance Cost savings Part consolidation Weight reduction Powersports Person
Slide 11: Technical Solutions Team
TECHNICAL SOLUTIONS TEAM 11 • Lower Total Cost • Light-weighting • Improve performance Conversion Expertise Integrated Material Development & Advanced Manufacturing Engineering Part Consolidation • Unique solutions – Designed from material formulation to final production • Improve performance Design
Slide 12: Technical Solutions Team: Research & Development
TECHNICAL SOLUTIONS TEAM Research & Development • Material experts with functionality and long-lasting performance • Ultra-light materials • Material and process integration Speed-to-Market • Additive compression molds • Design simulation and testing • Unique prototyping expertise • Robust launch pr
Slide 13: Leveraging Existing Strengths
LEVERAGING EXISTING STRENGTHS 13 Deep Expertise • 40 years of structural plastics manufacturing • 20 years manufacturing in Mexico • Long standing customers and relationships • Large press expertise Diverse Products & Processes • Sole-source provider • Most diverse process offering in industry • Lar
Slide 14: Proven Operational and M&A Expertise
Dave Duvall • President and CEO • Industry Experience >30 years Past Companies: • Danfoss • Carlyle Group • TI Automotive • Ford John Zimmer • Executive VP, CFO and Treasurer • Industry Experience >30 years Past Companies: • Parex • Upper Deck • Cardinal Health Eric Palomaki • Executive VP of Operat
Slide 15: Selected Financial Information
15 SELECTED FINANCIAL INFORMATION (1) Adjusted EBITDA is a non-GAAP financial measure as defined and reconciled later in this presentation. • Record sales in 2021 • Strong start to 2022 • Strong demand across most industries • Margin impacted by inflation and raw material recoveries • Raw material i
Slide 16: Selected Financial Information
16 SELECTED FINANCIAL INFORMATION • Average sales growth of 13.7% per year over past five years • Acquisition growth of ~$60mm in 2018 • Remainder of growth from organic growth • Strong sales continued in 2022 • EBITDA rebound after Company’s operational turnaround in 2019 • Operational turnaround a
Slide 17: Operating Cash Flows
17 OPERATING CASH FLOWS • Approximately 40% of operating cash flows reinvested into business • Company anticipates investing more then 50% of future operating cash flows back into business • Growth capex investment of $12 million over past three years • The Company intends to continue to invest in g
Slide 18: Sales by Industry – Diversification Transition
18 SALES BY INDUSTRY – DIVERSIFICATION TRANSITION • Company has transformed the customer base over the past five years • Reduced risk through strategic customer diversification • Less cyclical results • Entering new markets has increased the Company’s addressable market • Focus on industries with co
Slide 19: Capitalization
19 CAPITALIZATION $25.0 $25.0 $25.0 New Debt Facility (in millions) Revolver Term Loan Capex Facility in millions As of June 30, 2022 Equity 106.6$ Term Loans 24.5$ Total Long‐term Capital 131.1$ Excess Liquidity 17.6$ Total Debt Leverage Ratio 1.26 • Company completed debt refinancing in July 2022:
Slide 20: Net Income (Loss) to Adjusted EBITDA Reconciliation
NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION 20 (1) Reflects Cincinnati facility closing. Reconciliation of GAAP to Non-GAAP Financial Measures * Adjusted EBITDA represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for income taxes
Slide 21: Company and Investor Contacts
Company Contact: John Zimmer Chief Financial Officer 614.870.5604 21 Investor Contact: Sandy Martin / Steven Hooser Three Part Advisors 214.616.2207
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