Matthews International Corporation · NASDAQ:MATW
Matthews International — Investor Presentation (March 2016)
28 slides from Matthews International's investor presentation, Mar 31, 2016
Slide 1: Matthews
Matthews 3/31/16
Slide 2: Business Overview
Matthews Business Overview Matthews
Slide 3: Disclaimer
Disclaimer Any forward-looking statements in connection with this discussion are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s a
Slide 4: Company overview: founded 1850, three segments
Founded in 1850 – headquartered in Pittsburgh, PA Three business segments: ◦ SGK Brand Solutions ◦ Memorialization ◦ Industrial Technologies Over 10,000 employees Over 25 countries NASDAQ – 33.0 million shares outstanding 4
Slide 5: Fiscal 2015 sales by segment
FISCAL 2015 SGK Brand Solutions Memorialization Industrial SGK Brand Solutions 56% Technologies Memorialization 36% Industrial Technologies 8% 100% 5
Slide 6: SGK Brand Solutions
Matthews SGK BRAND SOLUTIONS Matthews
Slide 7: Delivering Brand Performance
Delivering Brand Performance Brand Brand Brand Development Deployment Performance Improved top- Create + Premedia Tooling = line growth Activate Improved Merchandising bottom-line performance 7
Slide 8: SGK Brand Solutions: Kit Kat packaging and printing plates
Printing plates for the packaging industry are one of The full U.K. packaging portfolio for Kit Kat was redesigned by segment’s brand deployment product lines. Anthem, a global creative agency that is part of the brand development business of the SGK Brand Solutions segment. The SGK Brand Solutions
Slide 9: Brandimage and iDL Worldwide examples
Brandimage, a global brand consultancy with the SGK Brand Solutions segment, developed a new store concept for Optic 2000, a specialty chain for eyewear, to enhance their company’s customer experience and to express the brand’s commitment to its fresh positioning “a new outlook on life.” iDL Worldwi
Slide 10: Memorialization
Matthews MEMORIALIZATION Matthews
Slide 11: Memorialization product offerings
Building signs are an example of the segment’s architectural product offerings. Matthews eVantage℠ is our new, best-in-class, web-based program for memorial design, product orders and order management. Matthews is well known for its heritage of creating beautiful, time-tested bronze memorials. The s
Slide 12: Leading manufacturer and distributor of caskets
The Company is a leading manufacturer and distributor of caskets (wood, metal and cremation) in North America. The Memorialization Group acquired Aurora Casket Company is August 2015. 12
Slide 13: Bio-cremation, cremation units and pet loss care
Bio-cremation is a water-based (versus flame-based) cremation process. The Super Power Pak III cremation unit has some of the most advanced features in combustion technology as well as industry leading performance, reliability and support. Faithful Forever Pet Loss Care is a program that allows clie
Slide 14: Total deaths: cremation vs non-cremation
4,000 3,500 Total Deaths * 3,000 2,500 2,000 Cremation 1,500 1,000 Non-Cremation 500 0 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 *Total anticipated deaths per US Census Bureau 2009 projections 14
Slide 15: Industrial Technologies
Matthews INDUSTRIAL TECHNOLOGIES Matthews
Slide 16: Industrial Technologies products and systems
Non-contact ink-jet printing units apply print on products. Driven by sophisticated automation software and controls, multiple integrated distribution and fulfillment systems (including laser-based identification and dimensioning technologies) communicate in a warehouse to identify and route items a
Slide 17: Financial Overview
Matthews FINANCIAL OVERVIEW Matthews
Slide 18: Growth strategy: internal growth, acquisitions, repurchases
Internal Growth ◦ Expand market presence of existing products ◦ New product development ◦ Manufacturing/cost structure improvements Acquisitions Share Repurchases 18
Slide 19: Acquisition objectives and financial criteria
Principal objective: Support the business plan of the operating segment and long-term growth objectives of the Company. Financial criteria: Immediately accretive to Earnings per Share. Achieve long-term target of an annual return on invested capital of 12%. 19
Slide 20: Sales, adjusted operating profit, EBITDA and EPS
(Dollars in thousands) Fiscal year ended September 30, YTD March 31, 2013 2014 2015 2015 2016 Sales $985,357 $1,106,597 $1,426,068 $349,394 $367,176 Adjusted Operating Profit (a) $108,710 $120,120 $141,906 $56,392 $61,351 Adjusted EBITDA (b) $160,561 $172,007 $215,974 $95,328 $103,078 EPS - GAAP (c)
Slide 21: Sales and adjusted operating profit by segment
(Dollars in thousands) Fiscal year ended September 30, YTD March 31, 2013 2014 2015 2015 2016 Sales: SGK Brand Solutions $373,941 $497,328 $798,339 $392,556 $362,675 Memorialization 517,911 508,420 508,058 246,478 304,987 Industrial Technologies 93,505 100,849 119,671 53,944 53,746 Consolidated $985
Slide 22: Fiscal 2015 adjusted free cash flow
(Dollars in thousands) Fiscal 2015 Adjusted Net Income $83,930 Depreciation and Amortization 62,620 Stock-Based Compensation 9,097 Pension Cost (non-service portion) 5,677 161,324 Capital Expenditures (48,251) Adjusted Free Cash Flow $113,073 Adjusted net income reflects adjustments to exclude net c
Slide 23: GAAP earnings per share 2006-2015
$3.50 $3.00 $2.55 $2.45 $2.31 $2.50 $2.06 $2.04 $1.90 $1.95 $1.95 $1.91 $2.00 $1.49 $1.50 $1.00 $0.50 $0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 23
Slide 24: Non-GAAP earnings per share 2006-2015
$3.50 $3.03 $3.00 $2.74 $2.61 $2.69 $2.59 $2.53 $2.37 $2.43 $2.31 $2.50 $2.12 $2.00 $1.50 $1.00 $0.50 $0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Non-GAAP earnings per share reflect adjustments to exclude net charges primarily related to acquisition-related costs, strategic initiatives,
Slide 25: Adjusted EBITDA 2006-2015
(Dollars in millions) $250.0 $216.0 $200.0 $172.0 $165.4 $160.6 $157.2 $156.8 $160.9 $147.8 $139.6 $143.4 $150.0 $100.0 $50.0 $0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 25
Slide 26: Share price history
$60 $50.74 $51.47 $48.97 $50 $43.80 $43.89 $38.08 $36.79 $40 $35.38 $35.36 $30.73 $29.82 $30 $20 $10 $0 9/30/06 9/30/07 9/30/08 9/30/09 9/30/10 9/30/11 9/30/12 9/30/13 9/30/14 9/30/15 3/31/16 26
Slide 27: Recent highlights, dividend increase and analyst coverage
Acquisition of Aurora Casket on August 19, 2015 Increased quarterly dividend 15.4% to 15.0 cents (November 2015) ◦ 21st consecutive annual dividend increase since the IPO Reported record sales of $1.4 billion in fiscal 2015 Reported record operating cash flow of $141.1 million in fiscal 2015
Slide 28: Top institutional shareholders
Shares 12/31/2015 Franklin Advisory Services, LLC 2,928,627 BlackRock Institutional Trust Company, N.A. 2,860,188 The Vanguard Group, Inc. 2,510,205 T. Rowe Price Associates, Inc. 1,481,340 Wellington Management Company, LLP 1,306,810 Dimensional Fund Advisors, L.P. 1,262,915 Channing Capital Manage
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