Gentex Corporation · NASDAQ:GNTX
Gentex — Shareholder Meeting (May 2023)
24 slides from Gentex's shareholder meeting presentation, May 18, 2023
Slide 1: Vision for the Future
VISION FOR THE FUTURE DIMMABLE DEVICES | DIGITAL VISION CONNECTIVITY | SENSING < G ENT EX I NV ESTO R OV ERV I EW > Annual Shareholder Meeting – May 18, 2023 1
Slide 2: Safe Harbor for Forward-Looking Statements
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking
Slide 3: Gentex Strategy for an Industry in Flux
GENTEX STRATEGY FOR AN INDUSTRY IN FLUX
Slide 4: 2022 Performance
$1.92B 13.8% Revenue Annual Tax Rate 2022 31.8% $146.4M Gross Margin Performance Capital Expenditures PERFORMANCE $239.8M $96.6M Operating Expenses Depreciation & (E, R&D and S, G&A) Amortization < G ENT EX I NV ESTO R OV ERV I EW > 4
Slide 5: Growth Through New Features and Vehicle Content
GROWTH THROUGH NEW FEATURES AND VEHICLE CONTENT 2017 95M Vehicles 2022 81M Vehicles 2023* 85M Vehicles Global LVP $1.79B Revenue $1.92B Revenue ~$2.2B Revenue Revenues 100,000,000 $2,500,000,000 90,000,000 80,000,000 $2,000,000,000 70,000,000 60,000,000 $1,500,000,000 50,000,000 40,000,000 $1,000,00
Slide 6: 2023 Guidance
Approx. $2.2B 15 – 17% Revenue Annual Tax Rate 2023 32 – 33% $200 – 225M GUIDANCE Gross Margin Capital Expenditures Updated April 28, 2023 $260 – 270M $100 - 110M Operating Expenses Depreciation (E, R&D and S, G&A) & Amortization 2024 GUIDANCE +10% Revenue Updated April 28, 2023 Growth above 2023 <
Slide 7: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY • Utilizing Free Cash Flow －Capital Expenditures －Dividends • Dividend of $.48 per year －Repurchases • Approximately 19.7M shares available for repurchase under current plan (April 2023) －M&A • New Facilities/Expansions －China – opened in 2022 －North Riley – 2022 began co
Slide 8: Return to Shareholders
RETURN TO SHAREHOLDERS RETURN OF CAPITAL 2022 $800.0 $708.2M $0.48 $700.0 $116.6 Dividend Per Share $600.0 $113.1M $500.0 $447.8M $439.9 MILLIONS USD $405.7M Dividends Paid $400.0 $116.3 $115.3 $340.2M $117.2 4.04M $300.0 $264.5M $108.8 $591.6 $227 $208.2M Shares Repurchased $200.0 $101.1 $97.0 $331
Slide 9: Product Strategy
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Slide 10: Automotive - An Industry in Flux
AUTOMOTIVE - AN INDUSTRY IN FLUX • Unprecedented time of transition • Multiple disruptive trends occurring simultaneously DIGITALIZATION ELECTRIFICATION AUTONOMOUS DRIVING <GENTEX INVESTOR OVERVIEW> 10
Slide 11: Challenge: Autonomous Vehicles vs. Driver-Centric Features
CHALLENGE: AUTONOMOUS VEHICLES VS. DRIVER-CENTRIC FEATURES • The autonomous movement jeopardizes the product portfolio of many smaller, niche suppliers • Many Gentex products have been focused on the driver • The issue revolves around how to compete for OEM R&D spend and vehicle budget • Our product
Slide 12: Business Environment in Flux
BUSINESS ENVIRONMENT IN FLUX • Today’s business environment: －Light vehicle production declines －Chip shortage －Supply chain issues Global Light Vehicle Volumes －Record inflation －Labor shortage • Gentex is attempting to systematically tackle each of these issues through creative ideas • Content gro
Slide 13: What We Do Well: Gentex Core Competencies
WHAT WE DO WELL: GENTEX CORE COMPETENCIES • Self-analysis: what makes us unique? • Highly vertically integrated in: < G ENT EX I NV ESTO R OV ERV I EW > 13
Slide 14: Augmenting Our Tech Portfolio
AUGMENTING OUR TECH PORTFOLIO • Enhance in-house skill sets • Add new complementary technologies through acquisitions and partnerships IN-CABIN CHEMICAL (NANO) ADVANCED COATINGS V2I/V2X PRODUCTS MONITORING SENSING AND FILMS AND MOBILE PAYMENTS < G ENT EX I NV ESTO R OV ERV I EW > 14
Slide 15: Strategy
STRATEGY Gentex’s strategy is to leverage our core competencies to cultivate emerging technologies that address the industry’s macro trends while also acting as innovation platforms for today’s vehicles. In short, we look to introduce features for today based on tomorrow’s emerging technology paths.
Slide 16: Technology Paths / Product Portfolio
TECHNOLOGY PATHS / PRODUCT PORTFOLIO DIGITAL VISION DIMMABLE GLASS CONNECTIVITY SENSING < G ENT EX I NV ESTO R OV ERV I EW > 16
Slide 17: Digital Vision Platform
DIGITAL VISION PLATFORM Managing the evolution from analog to digital rear vision. Full Display Mirror/Digital Mirror Camera Monitoring Systems Technology Path Vision for the Future < G ENT EX I NV ESTO R OV ERV I EW > 17
Slide 18: Dimmable Device Platform
DIMMABLE DEVICE PLATFORM Controlling light transmission for safety, privacy and performance. Dimmable Sunroofs Dimmable Sun Visors Aerospace Windows Dimmable Privacy Glass Technology Path Vision for the Future < G ENT EX I NV ESTO R OV ERV I EW > 18
Slide 19: Connectivity Platform
CONNECTIVITY PLATFORM Streamlining connectivity with home, infrastructure, and travel. HomeLink / HomeLink Connect Transactional Vehicle Concierge and Experiential Technology Path Vision for the Future CAR TO HOME PAYMENTS AND INFRASTRUCTURE RIDE SHARING/USER-SPECIFIED CONTROL < G ENT EX I NV ESTO R
Slide 20: Sensing Platform
SENSING PLATFORM Keeping passengers safe and vehicles up and running Biometrics/Iris Scanning In-Cabin Monitoring Particulate & Chemical Sensing ADASKY Technology Path Vision for the Future < G ENT EX I NV ESTO R OV ERV I EW > 20
Slide 21: AdaSky
ADASKY • Relationship －Lead investor of Series B financing • Product －Thermal Sensing – Long Wave Infrared (LWIR) －Shutterless • Benefits －Utilizes Gentex’s Core Competencies －Strong IP －Existing Customers and Interest －Leverages Gentex’s OEM relationships • Execution －Commercial, Engineering, and M
Slide 22: Gentex Product Strategy
GENTEX PRODUCT STRATEGY • Our strategy is easily summarized by 2 key ideas: －Expand in automotive through a deeper product portfolio based on new tech －Expand in new industries outside of automotive based on new tech from our expanding list of core competencies Markets: AUTOMOTIVE AEROSPACE FIRE PRO
Slide 23: ESG Performance
ESG PERFORMANCE • Updates －2022 Sustainability Report • [Link] －Sustainability Page on Gentex website • [Link] －Carbon Reduction & Neutrality Goals • 5-Year (2026) – 15% below 2020 levels • 10-Year (2031) – 40% below 2020 levels • 20-Year (2041) – 70% below 2020 levels • 2049 – Carbon Neutral －Landf
Slide 24: Thank You
THANK YOU • For more information, visit －ir.Gentex.com －Gentex.com －fulldisplaymirror.com < G ENT EX I NV ESTO R OV ERV I EW > 24