Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Non-Deal Roadshow (June 2017)
21 slides from Commercial Vehicle's roadshow presentation, Jun 8, 2017
Slide 1: Commercial Vehicle Group, Inc. June 2017
Commercial Vehicle Group, Inc. June 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) 297 323 228 228 265 294 295 2014A 2015A 2016A 2017E 2018E 2019E 2020E Heavy-Duty Truck (Class 8) 227 237 233 245 248 255 270 2014A 2015A 2016A 2017E 2018E 2019E 2020E 42% 19%
Slide 8: Industry Outlook – Global Construction
Industry Outlook – Global Construction pg | 7 Global Sales of Heavy-Duty Construction Equipment (‘000s of units) 2016 CVG Sales by End Market 42% 19% 5% 2% 18% 14% OEM Truck OEM Bus OEM Agriculture Aftermarket* Other Market Observations CAGR 6.8% 4.7% 5.7% 7.7% OEM Construction Source: Millmark Asso
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 announced – target completion by end of 2017 CVG Digital - Digitize processes, design, production, and pr
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 targeted 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 pow
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) Q1 2016 Q4 2016 Q1 2017 Sales $ 180.3 $ 150.0 $ 173.4 Reflects Q1 market improve
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 $ 102.1 $ 73.5 Gross Profit $ 14.0 $ 7.8 Margin 13.7 % 10.6 % SG&A $ 5.5 $ 4.5
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 Proforma LTM Q1 Q1 2017 (Dollars in millions) 2015 2016 2017 (Refinancing) Satisfaction & Discharge Filed -
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 Q1 Q4 Q1 (Dollars in millions) 2016 2016 2017 Operating Income $ 8.6 $ 3.9 $ 4.6 Margin 4.8 % 2.6 % 2.6 % Special Items: Restructuring & Related 0.3 1.2 1.1 Litigation Settlement 2.3 Impaired Asset 0.6 Adjusted Operatin
Slide 20: EBITDA & Adjusted EBITDA Reconciliation
EBITDA & Adjusted EBITDA Reconciliation pg | 19 GAAP to Non-GAAP Reconciliation FY FY Q2 Q3 Q4 Q1 LTM (Dollars in millions) 2015 2016 2016 2016 2016 2017 Q1 2017 Net Income $ 7.1 $ 6.8 $ 2.7 $ 1.2 $ 0.4 $ 0.6 $ 4.9 Interest Expense 21.4 19.3 4.9 5.0 4.5 4.9 19.3 Tax Provision (Benefit) 9.8 0.8 (1.5)
Slide 21: Business Segment Adjusted Operating Income Reconciliation
pg | 20 GAAP to Non-GAAP Reconciliation Business Segment Adjusted Operating Income Reconciliation Three Months Ended March 31, 2017 (Dollars in millions) Global Truck & Bus Global Construction & Agriculture Operating Income $ 8.3 $ 3.3 Special Items: Restructuring & Related 1.0 0.1 Adjusted Operatin
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