Trimas Corporation · NASDAQ:TRS
Trimas — Investor Day (May 2012)
120 slides from Trimas's investor day presentation, May 16, 2012
Slide 1: TriMas Investor & Analyst Day Presentation
TriMas Investor & Analyst Day Presentation NASDAQ MarketSite May 16, 2012 NASDAQ • TRS
Slide 2: Welcome
Welcome Sherry Lauderback, VP of Investor Relations
Slide 3: Forward Looking Statements
Forward Looking Statements Any “forward-looking” statements contained herein, including those relating to market conditions or the Company’s financial condition and results, expense reductions, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including, but n
Slide 4: Agenda
Agenda 8:00 a.m. Registration and Continental Breakfast 8:45 a.m. Welcome: Sherry Lauderback, VP, Investor Relations, TriMas 8:50 a.m. Opening Remarks: Dave Wathen, President & CEO, TriMas 9:10 a.m. Lamons: Kurt Allen, President 9:30 a.m. Arrow Engine Company: Len Turner, President 9:45 a.m. Break a
Slide 5: Corporate Leadership
David Wathen President & CEO Joined TriMas in 2009 Mark Zeffiro Chief Financial Officer Joined TriMas in 2008 Colin Hindman Vice President, Human Resources Joined TriMas in 2002 Corporate Leadership Tom Aepelbacher Vice President, Global Sourcing and Productivity Joined TriMas in 2003 Robert Zalupsk
Slide 6: Business Unit Leadership
Tom Benson President, Cequent Performance Products Years of Service: Industry - 28 TriMas - 21 Lynn Brooks President, Rieke Packaging Systems Years of Service: Industry - 34 TriMas - 34 Business Unit Leadership Helga Arminak President, Arminak & Associates Years of Service: Industry - 25 TriMas - Jo
Slide 7: TriMas Video
TriMas Video 7
Slide 8: Opening Remarks
Opening Remarks Dave Wathen, TriMas President and CEO
Slide 9: TriMas Key Messages
9 TriMas Key Messages • Highly-engineered products serving defensible, focused markets • TriMas Operating Model is working well and delivering results • Continuous productivity improvements fund growth initiatives and margin expansion • Significant opportunities for organic growth and bolt-on acquis
Slide 10: Balanced Portfolio with Common Attributes
Common Attributes Across Businesses • Focused markets with leading market positions • Strong brand names • Well-established customer relationships • Proprietary, highly-engineered products • Common operating processes • Opportunities for growth and productivity • Strong cash flow generation Cequent
Slide 11: Highly Diversified Business and Customer Profile
Packaging 17% Energy 15% A&D 7% Engineered Components 16% Cequent North America 36% Cequent Asia Pacific 9% By Segment U.S. (domestic) 70% U.S. (export) 12% APAC 9% Europe 6% RoW 3% By Geography Highly Diversified Business and Customer Profile 11 Leading product offerings across businesses and end m
Slide 12: TriMas Operating Model Drives New Performance Level
TriMas Operating Model Drives New Performance Level Turnaround & Stability • Implemented repeatable planning process including strategic, people and operating plans/reviews • Restructured businesses and consolidated management teams • Enhanced accountability and aligned incentive system with busines
Slide 13: TriMas Operating Model Drives Results
13 TriMas Operating Model Drives Results 2009 2011 $777M 9.1% 12.2% $0.42 $1.084B $1.58 $777M $1.084B Net Sales CAGR of 18% Operating Profit Margin(1) up 310 bps Diluted EPS(1) CAGR of 94% (1) From continuing operations, excluding Special Items. Special Items for each period are provided in the Appe
Slide 14: TriMas Operating Model Drives Results
14 TriMas Operating Model Drives Results 2009 2011 $1.084B $777M $1.084B $777M $69M $63M Cumulative Free Cash Flow(1) generation of over $200M $777M 14.3% 12.7% Improvement in Operating Working Capital as % of Sales $777M ~3.7x ~2.7x Leverage Ratio declines a full turn TriMas stock has improved from
Slide 15: Strategic Aspirations
Strategic Aspirations TriMas provides engineered and applied product solutions that customers in growing end markets need and value. 15 • Generate high single-digit top-line growth • Invest in growing end markets through new products, global expansion and acquisitions • Drive 3% to 5% total gross co
Slide 16: Ability to Accelerate Our Strategic Initiatives
Ability to Accelerate Our Strategic Initiatives • 4,000,000 primary shares priced at $20.75 • Underwriters have 30-day option to purchase up to an additional 600,000 shares • Proceeds for general corporate purposes including bolt-on acquisitions, repayment of debt and capital expenditures for growth
Slide 17: Additional TriMas Businesses
Additional TriMas Businesses Norris Cylinder • Record past 18 months • Positive results from prior acquisition of cylinder assets • Future growth prospects include: • Penetrate newer markets (cell towers, mine safety, fire suppression) • Continued product extension • Exports 17 Cequent North America
Slide 18: Lamons
Lamons Kurt Allen, President
Slide 19: Key Messages
Key Messages • Experts at manufacturing and distributing specialty gaskets and bolts • Local manufacturing and quick delivery model provides competitive advantage • Replicate U.S. branch strategy to serve major customers globally • Product expansion underway • Pursue bolt-on acquisitions to suppleme
Slide 20: Recent History
Recent History 20 Rapid growth through product and geographic expansion, as well as the successful integration of bolt-on acquisitions. Since 2009: • Sales CAGR of approximately 22% • Expanded branch locations from 14 to 20 – several outside of North America • Increased sales of specialty gaskets an
Slide 21: Product Overview
Product Overview 21 Most significant product growth has been in the bolts category. Bolts 2011 Product Mix Other Heat Exchanger Spiral Wound Gaskets Soft Gaskets Ring Type Joint Kammpro Per management estimates Significant variety of gaskets and bolts – can vary by size, shape and material
Slide 22: Product Overview
Product Overview 22 2011 Product Mix Based on Volume 2011 Delivery Time Mix Based on Volume Standard Special Routine Rush Ability to charge for speed. Per management estimates
Slide 23: Major Customers and Markets
23 Major Customers and Markets Key Customers Major Markets Upstream/ Midstream OEM/ Power/ Steel Petrochemical Refining Long-term relationships and global contracts with key customers create opportunities around the world. Engineering & Construction Per management estimates
Slide 24: Lamons Opportunities for Growth
Lamons Opportunities for Growth • Global Expansion – Recent branches – Additional opportunities? • Engineered Products – Higher margin • Specialty Bolts – Higher margin 24 Continued geographic and product expansion will generate future growth.
Slide 25: Branch Expansion to Better Serve Global Customers
Branch Expansion to Better Serve Global Customers 25 New locations since 2009: • Midland, Michigan • St. Paul, Minnesota • Edmonton, Canada • Faridabad, India • Grimsby, United Kingdom • Singapore • Tarragona, Spain Lamons Market Global Market Follow global customers; Sealing Global. Servicing Local
Slide 26: Branch Expansion map
26 KEY Exxon Chevron BP Shell Phillips 66 Tesoro LyondellBasell Dow Beaumont Bellingham Ft. Erie Sarnia Freeport Salt Lake Boothwyn Joliet Martinez Rancho New Orleans Baton Rouge Lake Charles Houston = Lamons Branch Expansion Edmonton St. Paul Midland
Slide 27: Global Expansion Europe
27 France Italy Spain Germany Bel Czech Republic Belarus Ukraine Poland Norway Sweden Finland Ireland Croatia Albania Switz Austria Hungary Slovakia Romania Lithuania Latvia Estonia Portugal Greece Turkey Bulgaria KEY Exxon Chevron BP Shell Phillips 66 LyondellBasell Dow Valero Rotterdam Global Expa
Slide 28: Global Expansion Asia
28 KEY Exxon Chevron BP Shell Dow Phillips 66 Zhangjiagang Hangzhou Global Expansion = Lamons Singapore Faridabad
Slide 29: Additional Opportunities – Brazil
Additional Opportunities – Brazil • Current market estimated: • Gaskets: $75 million • Bolts: $80 million • Petrobras plans to spend approximately $225 billion between 2011 and 2015; 57% in exploration and production • 50 new drilling rigs and 50 FPSO to be built between 2011- 2020 • 400,000 barrels
Slide 30: Brazil Opportunity
Brazil Opportunity 30 KEY Petrobras: Current Refineries Future Refineries Braskem Dow Major Cities Manaus Recife Salvador
Slide 31: Engineered Products Opportunity
Engineered Products Opportunity • Upgrade customers to highly-engineered products • Refinery market • WRI-LP gaskets • Offshore/upstream market • Inhibitor gaskets • All customers • Intelligent bolt 31 Engineered products tend to have higher margins.
Slide 32: Specialty Bolts Opportunity
Specialty Bolts Opportunity • Increase specialty bolt volumes and market share • Continue to leverage acquisition of South Texas Bolt & Fitting • Further product expansion in North America 32 STBF –related bolt revenue has more than doubled since time of acquisition. More opportunities in the future
Slide 33: Key Messages
Key Messages 33 • Experts at manufacturing and distributing specialty gaskets and bolts • Local manufacturing and quick delivery model provides competitive advantage • Replicate U.S. branch strategy to serve major customers globally • Product expansion underway • Pursue bolt-on acquisitions to suppl
Slide 34: Arrow Engine Company
Arrow Engine Company Len Turner, President
Slide 35: Key Messages
Key Messages 35 Packaging Engineered Components Energy Aerospace & Defense Cequent Asia Pacific Cequent North America TriMas Overview % of 2011 Revenue % of 2011 Operating Profit • Proven track record of rapid growth in new products – continue to add well-site content • Product diversification decre
Slide 36: Recent History
Recent History 36 2007 2008 2009 2010 2011 Revenue Arrow Revenue Trends • Cyclical business, but new product growth has provided diversification into new areas • Rapid new product expansion in well-site content has more than offset impact from natural gas price declines • Product mix of more oil tha
Slide 37: Arrow Overview
• Founded in 1955 as a replacement parts supplier for oilfield engines • Current management team in place since late 2000 • Added compressor products in 2007 • Bought gas products capability in 2008 • Established electronics/emissions division in 2010 Arrow Overview Arrow has added to its product po
Slide 38: Oil and Gas Estimated Revenue and Sales
Pump Jack Power Compression Gas Production Equipment and Meter Runs U.S. Canada Mexico Other Oil Natural Gas 2012 Estimated Revenue by: End Market Geography Oil and Gas Estimated Revenue and Sales Arrow has a large share in focused markets. 38 Per management estimates
Slide 39: Core Products
C-Series Single Cylinder Engines • Designed for pump jack power • Fueled by natural gas from the well • Heavy-duty – Made to withstand years of use VR Multi-Cylinder Engines • Gas compression • Pump jack power Core Products Arrow core products consist of engines and replacement parts. 39
Slide 40: Core Products
Engine Parts • For Arrow OEM engines • Replacement parts for other manufacturers’ engines Chemical Pumps Core Products Arrow continues to advance its legacy products to stay on top of industry trends. 40
Slide 41: New Products – Compression
Compression Products • VR Compressors (125 - 275 Hp) for production of oil and natural gas from a well • CNG Compressor Systems for vehicle refueling • New compressor packaging facility for assembling full compressor packages • New small Hp compressor (<50 Hp) for vapor recovery (emissions) New Prod
Slide 42: New Products
Oil and Gas Production Equipment and Gas Measurement Equipment New Products 42
Slide 43: New Products
Engine and Compressor Electronic Components • For engine controls and emissions New Products 43
Slide 44: Oil and Natural Gas Well-Site Animation
Oil and Natural Gas Well-Site Animation 44
Slide 45: 45
45
Slide 46: New Products Sales Growth
2007 2008 2009 2010 2011 New Products Sales Growth Growth has been fueled by new product development efforts. 46 New Product Sales
Slide 47: New Products Sales Growth
2007 2008 2009 2010 2011 New Products Sales Growth Growth has been fueled by new product development efforts. 47 New Product Sales Source: Spears Research Report
Slide 48: New Products Sales Growth
2007 2008 2009 2010 2011 New Products Sales Growth New product sales outpaced growth in rig counts. 48 New Product Sales Growth CAGR of 56%
Slide 49: Product Expansion Summary
Mid-2000s Product Breakout as % of Sales Product Expansion Summary 49 Engines Chemical Pumps Engine Parts Core Products: During mid-2000, core products consisted of three main product groups. Per management estimates
Slide 50: Product Expansion Summary
2011 Product Breakout as % of Sales Mid-2000s Product Breakout as % of Sales Product Expansion Summary 50 Engines Chemical Pumps Engine Parts Core Products: Core Products New Engine models Non-OEM engine parts Compressors Gas Production Equipment Compressor Packaging Electronics Meter runs Per manag
Slide 51: Product Expansion Summary
2011 Product Breakout as % of Sales Estimated 2015 Product Breakout as % of Sales Mid-2000s Product Breakout as % of Sales Core Products New Engine models Non-OEM engine parts Compressors Gas Production Equipment Compressor Packaging Electronics Meter runs Growth fueled by new products and new appli
Slide 52: Positive Market Trends – Near-term
Near-term • Oil drilling where Arrow has higher well content is expected to be up over the next few years • Canada will also be strong – expected increase in oil drilling • Continued expansion of well completion equipment will fuel continued growth U.S. Oil Production 2005-2017 Positive Market Trend
Slide 53: Positive Market Trends – Longer-term
Longer-term • Expanding shale drilling where more production equipment is needed earlier in the wells’ life cycle • Tightening environmental standards will lead to additional well content (engine controls and scavenging compressors) • CNG vehicle growth is a potential upside for Arrow Positive Marke
Slide 54: Key Messages
Key Messages 54 • Proven track record of rapid growth in new products – continue to add well-site content • Product diversification decreases cyclicality • Positive market trends: – Shift toward natural gas usage – Increased oil drilling activity – Increases in liquid-rich shale drilling
Slide 55: Break and Q & A
Break and Q & A
Slide 56: Rieke Packaging Systems
Rieke Packaging Systems Lynn Brooks, President
Slide 57: Key Messages
Key Messages • Maintain leading market share in industrial products for North America and Europe • Protect our technology—majority of revenue is IP-protected • Grow revenue of specialty dispensing and closure systems • Continue geographic expansion • Leverage strategic bolt-on acquisitions 57 Packag
Slide 58: Recent History
Recent History 58 $161 $145 $171 $185 2008 2009 2010 2011 23.2% 25.9% 28.5% • Enhanced specialty dispensing and closure systems product offering through product development and recent bolt- on acquisitions • Launched sales efforts in emerging markets • Continued productivity efforts and lean initiat
Slide 59: Product Overview
Product Overview • Diverse products designed to enhance customers’ ability to store, transport, process and dispense 59
Slide 60: Packaging Segment Dynamics
Packaging Segment Dynamics: • Industrial product growth at GDP • Dispensing/delivery system growth is 2-4 times industrial growth rate • Much larger market size in dispensing • Dispensing market is fragmented with more “individualized” requirements (not a standard) • Margins will be similar over tim
Slide 61: Rieke Differentiation
Rieke Differentiation • Customized solution – focus on customer needs and application versus “one size fits all” • Intellectual property • Significant technical support and engineering • Speed and delivery advantages – start to finish time • Broader geographic presence 61 Rieke’s technical support a
Slide 62: Key Customer Base
62 Working with global customers to provide unique product solutions. Key Customer Base
Slide 63: Geographic Footprint
Production Sites Sales/Warehouses Circle = New Since 2010 Geographic Footprint Rieke is a global business and will continue to expand geographic coverage. 63
Slide 64: Recent Acquisitions – Innovative Molding
Innovative Molding - Rohnert Park, California • Completed August 2011 • Internal threaded plastic closures for the food and neutraceutical markets • Reasons for acquisition: – Five-year growth rate approx. 15% per year – Regional player—customers want manufacturing capabilities east of the Rockies –
Slide 65: Recent Acquisitions – Arminak & Associates
Arminak & Associates - Azusa, California • Completed February 2012 • Dispensing and delivery systems • Primarily North American revenue • Reasons for acquisition: – Expanded product lines – Excellent sales and business development – Large customer base – Speed to market • Synergies: – Rieke manufact
Slide 66: Margin Performance
• No significant difference between industrial closures and specialty systems – Pricing elasticity – Low-cost production via China and/or full automation – Technical design advantages – Transfer raw material specs at Innovative – Complete automation projects at Innovative and Arminak – Arminak – thi
Slide 67: Strategy Moving Forward
• Maintain market share in industrial base • Expand geographic footprint of Innovative product line • Provide regional manufacturing to service major customer requirements • Focus on growth opportunities in dispensing and delivery systems – Expanded product lines now available – Project list still s
Slide 68: Key Messages
Key Messages 68 • Maintain leading market share in industrial products for North America and Europe • Protect our technology—majority of revenue is IP-protected • Grow revenue of specialty dispensing and closure systems • Continue geographic expansion • Leverage strategic bolt-on acquisitions
Slide 69: Monogram Aerospace Fasteners
Monogram Aerospace Fasteners David Adler, President
Slide 70: Key Messages
Key Messages 70 TriMas Overview Packaging Engineered Components Energy Aerospace & Defense Cequent Asia Pacific % of 2011 Revenue % of 2011 Operating Profit Cequent North America Monogram is positioned for revenue and earnings growth due to: • Unique offering • Increased content on composite aircraf
Slide 71: Recent History
Recent History • 2012 revenue estimates back to peak levels – backlog at 5-year high • Margins climbing back while investing in future growth ̶ Doubled the number of R&D engineers ̶ Increased emphasis on innovation ̶ Invested capital to grow business and improve service to customers • Improved custo
Slide 72: Aerospace Market
72 Aerospace Market Aircraft Production Value Breakdown Aerostructures ~$40B Aircraft systems, avionics & defense electronics ~$25B Aeroengines ~$25B Interiors ~$5B OEM final assembly ~$35B Source: ICF International Plenty of opportunity in a large growing market. 2011 Market ~$130B
Slide 73: Aerospace Market Share – Top Two Suppliers
73 Aerospace Market Market Share – Top Two Suppliers Source: ICF International 0% 20% 40% 60% 80% 100% Aerostructures Flight Controls Avionics & Defense Electronics Environmental Control Systems Wheels & Brakes Electrical Power & Distribution Nacelles & Thrust Reversers Engines Interiors Landing Gea
Slide 74: Monogram's Unique Offering
74 Monogram’s Unique Offering • Highly engineered and superior products • Long development cycles • Experienced team focused on product development and continuous improvement • Reputation for quality and consistent lead times • Blind bolts are preferred approach for automated aircraft assembly and o
Slide 75: Increased Content on Composite Aircraft
75 Increased Content on Composite Aircraft Legacy Aircraft • 767 $30K • A330 $25K • A320 $20K • 737 $20K • G5 $10K Composite Aircraft Designs • 787 $200K • A350 $160K • A320NEO $35K • 737MAX $40K • A380 $200K • G650 $20K • Bell 525 TBD • KC 390 TBD Examples per management estimates Monogram expects
Slide 76: Trends – Robotic Assembly and One-sided Installation
Trends – Robotic Assembly and One-sided Installation • Industry trends toward robotic assembly and one-sided fastener installation • Customer benefits include: – Reduced airframe assembly labor costs – Improvement in assembly throughput – Elimination of assembly variability • Blind bolts are inheren
Slide 77: Preferred Supplier Partnerships with Customers
77 Preferred Supplier Partnerships with Customers Monogram provides superior quality and consistent lead times to ensure positive customer feedback. Large Commercial Regional Business Military Sales by Aircraft Type Based on 2011 management estimates Key Customers
Slide 78: Preferred Supplier Partnerships with Customers
78 Leader in automated processes for fastener assembly and secondary operations with impressive lead times and repeatable quality. Preferred Supplier Partnerships with Customers Monogram’s internal robotic assembly process and tooling enhancements create an advantage with customers
Slide 79: Product Innovation Overview
79 Product Innovation Overview Category Estimated Market Size Approximate Market Share Market Trend Blind Bolts (Threaded & Pull Type) $200 million 25% Temporary Clamps $12 million 40% Titanium Screws $450 million <1% Collars $180 million <1% Honeycomb Pins $5 million 75% Monogram’s Position in the
Slide 80: Product Innovation - Blind Bolt Opportunities
80 Product Innovation - Blind Bolt Opportunities Vertical Tail Plane Flap Tracks Horizontal Tail Plane Nacelles Rudders • Develop OEM customer specific applications for new products • Partner with customers and automation Typical Applications Category Market Size Our Market Share Market Trend Blind
Slide 81: Product Innovation - Temporary Fastener Opportunities
81 Product Innovation - Temporary Fastener Opportunities Category Market Size Our Market Share Market Trend Temporary Clamps $12 million 40% • Manufacture in low cost country • Work with automation companies so OEMs can install temporary fasteners by automation • Products include: — Wedgelock - mark
Slide 82: Product Innovation - Titanium Screw Opportunities
82 Product Innovation - Titanium Screw Opportunities • Manufacture titanium (higher margin) screws in a low cost country • Improve manufacturing methods, lead times and delivery • Standard product; many competitors in low-end alloys and stainless steels • Alcoa and Precision Castpart Corporation hav
Slide 83: Product Innovation - Collar Opportunities
83 Product Innovation - Collar Opportunities • Utilize new facility in Arizona for collars – slated to open summer 2012 • Allows California facility to focus on blind bolts – improves blind bolt output • Use proprietary, simplified manufacturing processes reducing manufacturing costs and lead times
Slide 84: Product Innovation – Honeycomb Pin Opportunities
84 Product Innovation – Honeycomb Pin Opportunities • Productivity opportunity, while maintaining market share of mature product • Reduce cost by eliminating operations • Maintain short lead times and superior on time delivery • Largest customers: Goodrich (UTC), MRAS, Spirit and Aircelle (Safran) C
Slide 85: Global Network
Global Network 85 Monogram is positioned to serve new and emerging markets by leveraging sales and engineering networks. Existing sales/ marketing support Newer sales/ marketing support Partner with Embraer Partner with Airbus Opened sales and marketing office in 2011
Slide 86: Key Messages
Key Messages 86 Monogram is positioned for revenue and earnings growth due to: • Unique offering • Increased content on composite aircraft • Trends toward robotic assembly and one-sided installation • Preferred supplier relationships • Innovation of new products and processes • Global network
Slide 87: Break and Q & A
Break and Q & A
Slide 88: Cequent Asia Pacific and Africa
Cequent Asia Pacific and Africa Carl Bizon, President
Slide 89: Key Messages
Key Messages 89 Packaging Engineered Components Energy Aerospace & Defense TriMas Overview % of 2011 Revenue % of 2011 Operating Profit Cequent North America Cequent Asia Pacific • Leader in towing systems for the Australian market • Growth opportunities: – Regional customers in new geographies – Ex
Slide 90: Recent History
Recent History • Significant new sales awards – sales CAGR of 21% in since 2009 • Developed new major product line in tubular accessories – providing an accelerant for growth • Developed and executed growth plans into the emerging markets of Asia and South Africa • Positive mix shift to SUVs - away
Slide 91: Products
Products 91 Unique product offering provides opportunities for growth.
Slide 92: Differentiation
Differentiation 92 • Leading supplier of towing systems, brand strength and reputation • Broad product offering – product and distribution innovation • National distribution channels • Design and innovation capability – superior engineering and design support in quality critical applications • Flexi
Slide 93: Growth Opportunities
Growth Opportunities • Expansion into new geographies provides growth • OE customers desire for consolidated supply and development protocols • Provides new markets for our industry leading brands • Drive share growth in traditional markets and with known customers – while still expanding margins •
Slide 94: Regional Market View
Regional Market View Exisiting Customer Regional Sourcing Office Cequent Asia Pacific Production/ Warehouse Sales Isuzu Subaru Ford Ford GM Toyota Ford OEM Toyota OEM Isuzu OEM Mitsubishi OEM Nissan OEM Toyota OEM Volkswagen OEM GM OEM Ford OEM Opportunities to grow with global customers. 94
Slide 95: Projected Emerging Market Growth
Projected Emerging Market Growth By 2015, approximately one third of sales expected to be outside Australia. 2007 2012 Estimate 2015 Estimate Based on management estimates Australia Emerging Markets 95 Revenue
Slide 96: Expansion in Asia
Expansion in Asia • Established in 2006, Thailand has provided base level capacity at low cost – now becoming the major supply source for our region • Securing local business was slow initially – leveraging of existing customer relationships into new business delivered both growth and pathways into
Slide 97: Plant Consolidation
Plant Consolidation • Recently completed migration from two legacy plants in Melbourne to a new purpose built facility • Investment in state of the art metal cutting and fabrication equipment • Installation of market leading coating technology – resets benchmark regionally for product type 97 Invest
Slide 98: Key Messages
Key Messages 98 • Leader in towing systems for the Australian market • Growth opportunities: – Regional customers in new geographies – Existing customers in adjacent products – Existing products in new geographies • Consolidating two facilities into a state of the art production facility in Australi
Slide 99: TriMas Value Proposition
TriMas Value Proposition Mark Zeffiro, CFO
Slide 100: TriMas Value Proposition
TriMas Value Proposition Growth > End Markets Clear goals, high-performance teams and streamlined processes drive enhanced results. 100 • Multiple projects in all businesses • Geographic • Product • Customer penetration • Acquisitions • Services Stability • Energy • Aerospace • Industrial • Consumer
Slide 101: Balanced Portfolio
101 Balanced Portfolio Productivity Growth Opportunities Increased Enterprise Value • Combination of long and short cycle businesses • Diverse, blue-chip customer base – no customer with significant level of total company sales • Increasing exposure to new and emerging markets, while maintaining sha
Slide 102: Productivity
102 Balanced Portfolio Productivity Growth Opportunities Increased Enterprise Value • 3%+ total gross cost productivity in 2012 plans • Global sourcing group expanding in Mexico, Brazil and India • Lean initiatives embraced across the businesses • Productivity initiatives and kaizen events taking pl
Slide 103: Game Changing Strategies – TriMas in 2009
103 Game Changing Strategies • VA / VE • Lean Manufacturing • Six Sigma • Strategic Partnering B ene fi ts Game Changing Strategies Global Sourcing Initiatives • Aggregate Spend • Expanding Global Opportunities • Supplier Development • Strategic Sourcing Productivity Maturity Curve TriMas has a wide
Slide 104: Game Changing Strategies – TriMas in 2012
104 Game Changing Strategies • VA / VE • Lean Manufacturing • Six Sigma • Strategic Partnering B ene fi ts Game Changing Strategies Global Sourcing Initiatives • Aggregate Spend • Expanding Global Opportunities • Supplier Development • Strategic Sourcing Productivity Maturity Curve TriMas has a wide
Slide 105: TriMas Operating System and Lean Examples
• Defined & deployed the TriMas Operating System • Multiple teams actively working on value-stream mapping • Standardized problem solving methodology and KPI’s across the company (safety, quality, delivery and cost measures) • Recent Lean examples: • Lamons – Bolt Assembly Cell • Significant reducti
Slide 106: Non-Operational Efficiencies
Non-Operational Efficiencies • Lower interest rates • Continue deleveraging • Tax rate efficiency • Drive corporate efficiency and leverage infrastructure • Improve deployment of cash 106 Balanced Portfolio Productivity Growth Opportunities Increased Enterprise Value $10+ million in opportunities ta
Slide 107: Growth by Segment
$74 $79 $309 $384 $145 $185 $64 $94 $112 $167 $73 $175 $777 $1,084 $0 $200 $400 $600 $800 $1,000 $1,200 2009 2011 Strong growth through market share gains, product innovation, geographic expansion, acquisitions and increased end market demand. 107 Growth by Segment Future Growth Opportunities • New
Slide 108: Recent Selected Acquisition History
Date Target Acquisition Price ($mm) Est. Annual Sales ($mm) Segment Description Feb-12 $67 $60 Packaging • Designer and distributor of specialty dispensing products for cosmetic, personal care and household product markets Aug-11 $27 $28 Packaging • Designer and manufacturer of plastic closures for
Slide 109: Bolt-on Acquisition Process
• Disciplined process to evaluate and execute bolt-on acquisitions • Target identification often driven by business leader • Target criteria: • Supplement our existing product lines • Expand market or geographic coverage • Gain access to or expand additional distribution channels • Realize revenue a
Slide 110: Bolt-on Acquisitions Create Value
110 Bolt-on acquisitions create value through effective buying, fast integration, pre-identified synergies and aligned incentive systems. Balanced Portfolio Productivity Growth Opportunities Increased Enterprise Value • Revenue synergies achieved quickly • Manufacturing footprint leverage • Purchasi
Slide 111: Increased Enterprise Value
Execution of strategic initiatives will drive additional value. 111 Balanced Portfolio Productivity Growth Opportunities Increased Enterprise Value 2009 - 2011 Sales(1) CAGR 18% EPS(1) CAGR 94% Deleverage To 2.67x Return on Capital(2) Up ~750 bps Market Cap(3) Up almost $600M (1) From continuing ope
Slide 112: TriMas Value Proposition
TriMas Value Proposition Growth > End Markets Clear goals, high-performance teams and streamlined processes drive enhanced results. 112 • Multiple projects in all businesses • Geographic • Product • Customer penetration • Acquisitions • Services Stability • Energy • Aerospace • Industrial • Consumer
Slide 113: Questions and Answers
Questions and Answers All
Slide 114: Closing
Closing Dave Wathen, TriMas President and CEO
Slide 115: TriMas Key Messages
115 TriMas Key Messages • Highly-engineered products serving defensible, focused markets • TriMas Operating Model is working well and delivering results • Continuous productivity improvements fund growth initiatives and margin expansion • Significant opportunities for organic growth and bolt-on acqu
Slide 116: TriMas Investor & Analyst Day Presentation
TriMas Investor & Analyst Day Presentation NASDAQ MarketSite May 16, 2012 NASDAQ • TRS
Slide 117: Appendix
Appendix
Slide 118: Additional Information Regarding Special Items
Additional Information Regarding Special Items Impacting Reported GAAP Financial Measures 118 (unaudited - dollars in thousands, except per share amounts) 2011 2010 2009 2012 2011 Income from continuing operations, as reported 50,810$ 38,930$ 12,440$ 12,250$ 10,690$ Less: Net loss attributable to no
Slide 119: Company and Business Segment Financial Information – Cont. Ops
Company and Business Segment Financial Information – Cont. Ops 119 Three months ended 2011 2010 2009 2012 2011 Packaging Net sales 185,240$ 171,170$ 145,060$ 54,310$ 43,900$ Operating profit 48,060$ 48,710$ 33,050$ 9,890$ 11,830$ Special Items to consider in evaluating operating profit: - Severance
Slide 120: Company and Business Segment Financial Information – Cont. Ops (cont.)
Company and Business Segment Financial Information – Cont. Ops (cont.) 120 (Unaudited, dollars in thousands) Cequent North America Net sales 383,710$ 339,270$ 309,020$ 96,930$ 98,400$ Operating profit (loss) 32,730$ 27,840$ (3,160)$ 4,160$ 6,680$ Special Items to consider in evaluating operating pro