Core Molding Technologies Inc · AMEX:CMT
Core Molding Technologies — Investor Presentation (April 2022)
23 slides from Core Molding Technologies's investor presentation, Apr 1, 2022
Slide 1: Spring 2022 Investor Presentation
SPRING 2022 INVESTOR PRESENTATION April 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 Leading Composite Manufacturer • Large diversified customers and industries • Manufacturing footprint: U.S.(3), Mexico (2), Canada (1) Favorable Industry Momentum • Total addressable composite market $15+ billion • Few competitors, high barriers to entry Strong Growth Drivers
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 Technical solutions providing engineered materials that expand CMT’s Total Addressable Market
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
10 DISTINCT COMPETITIVE ADVANTAGES
Slide 11: 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 12: Leveraging Existing Strengths
LEVERAGING EXISTING STRENGTHS 12 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 13: Technical Solutions Team
TECHNICAL SOLUTIONS TEAM Research & Development • Material experts with functionality and long-lasting performance • Ultra-light Class A materials • Material and process integration Speed-to-Market • Additive compression molds • Design simulation and testing • Unique prototyping expertise • Robust l
Slide 14: Technical Solutions Team
TECHNICAL SOLUTIONS TEAM 14 • 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 15: Acquisition Strategy
15 ACQUISITION STRATEGY* Tuck-in Acquisitions Diversified Revenues Expanded Material Capabilities Lower Material Concentration Risk Process Expansions Lower Industry Concentration Risk Geographic Expansions • Over 50% of 2021 revenues came from processes & materials acquired since 2015 • Changes fro
Slide 16: 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 17: Selected Financial Information
17 SELECTED FINANCIAL INFORMATION (1) Adjusted EBITDA is a non-GAAP financial measure as defined and reconciled later in this presentation. • Record sales in 2022 • Strong demand from all industries • Margin impacted by supply chain disruption costs and raw material inflation • More than 50% of raw
Slide 18: Selected Financial Information
18 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 • EBITDA rebound after Company’s operational turnaround in 2019 • Operational turnaround and diversification of customer ba
Slide 19: Operating Cash Flows
19 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 20: Sales by Industry – Diversification Transition
20 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 21: Capitalization
21 CAPITALIZATION • Debt refinanced in 2020 • Strong balance sheet with low leverage and sufficient excess liquidity • The Company plans to further restructure its capital structure to provide more liquidity and lower cost • Create liquidity to provide for future growth investments in millions As of
Slide 22: Net Income (Loss) to Adjusted EBITDA Reconciliation
NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION 22 (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 23: Company Contact
Company Contact: John Zimmer Chief Financial Officer 614.870.5604 23 Investor Contact: Sandy Martin / Steven Hooser Three Part Advisors 214.616.2207
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