Core Molding Technologies Inc · AMEX:CMT
Core Molding Technologies — Midwest IDEAS Investor Conference 2023
25 slides from Core Molding Technologies's conference presentation, Aug 23, 2023
Slide 1: Midwest Ideas Investor Conference August 2023
MIDWEST IDEAS INVESTOR CONFERENCE August 2023
Slide 2: Safe Harbor Statements and Non-GAAP Financial Measures
SAFE HARBOR STATEMENTS AND NON-GAAP FINANCIAL MEASURES 2 Certain statements in this Annual Report on Form 10-K constitute forward-looking statements within the meaning of the federal securities laws, which are subject to the "safe harbor" created by Section 27A of the Securities Act of 1933, as amen
Slide 3: Core Molding Technologies
US 36% Canada 26% Mexico 38% CORE MOLDING TECHNOLOGIES The most reliable, innovative and responsive partner in engineered materials and manufacturing solutions: SOLUTION | INNOVATION | MANUFACTURING Diversified Portfolio with Long Term Customer Relationships Building Products Industrial & Utilities
Slide 4: Investment Highlights
✓ Market Leadership Position ✓ Few competitors, high barriers to entry ✓ Large Addressable Market ✓ Long-term relationships with blue-chip companies with single-source manufacturing ✓ Proprietary, Highly-Engineered Products ✓ Single source, technical solutions of structural systems ✓ Product innovat
Slide 5: >$10B Addressable Market
> $10B ADDRESSABLE MARKET • Grow wallet share with large customers • Multiple industry channel expansion $2.6B Grow • Market leader in truck & powersports • Focus on higher value solutions Based on management estimates with current process portfolio. Industry Dynamics $2.3B Grow $1.9B Grow $1.9B Gro
Slide 6: Large North American Manufacturing Footprint
LARGE NORTH AMERICAN MANUFACTURING FOOTPRINT *Based on 2022 Product Sales 26% 31% 19% 11% 6% 7% Columbus, OH Matamoros, MX Cobourg, Ontario Winona, MN Gaffney, SC Monterrey, MX 80 presses >1.3M Square Feet Product Sales by Facility* 6
Slide 7: Industry and Customer Diversification
INDUSTRY AND CUSTOMER DIVERSIFICATION 44% Truck 24% Power Sports 11% Building Products 8% Industrial & Utilities 13% Other 2022 Net Product Sales By Industry Truck Powersport Building Products Industrial and UtilitiesLong-term relationships with blue-chip companies providing single-source manufactur
Slide 8: Thermoset and Thermoplastic Processes
Thermoset ProcessesThermoplastic Processes Hand Layup Spray Up Primary competitors are single-plant facilities Core operations in Mexico due to heavy labor content SF/SW (Structural Foam or Web Molding) One large competitor & a few small single-facility competitors Material blending and large press
Slide 9: How We Diversify
HOW WE DIVERSIFY 9 Building Products Industrial & Utilities Power Sports Transportation Light Weighting | Durability | Cost Savings | Corrosion Resistance | Parts Consolidation | Recyclability
Slide 10: Four Strategic Growth Initiatives
Organic and Acquisition, New Industries, Deeper Penetration with Existing Customers Revenue Growth FOUR STRATEGIC GROWTH INITIATIVES 10 Unique, High Value Solutions = Higher Margins Technical Solution Sales Operational Excellence, Continuous Improvement Culture Profitability Improvements Reinvestmen
Slide 11: Macro Tailwinds from the Infrastructure Investment and Jobs Act
Water Systems $62B Investment Roads, Bridges & Major Projects MACRO TAILWINDS FROM THE INFRASTRUCTURE INVESTMENT AND JOBS ACT 11 Broadband $110B Investment $65B Investment
Slide 12: Technical Solution Sales
TECHNICAL SOLUTION SALES Conversion Expertise for Railway Data Transmission Trough Concrete Parts Consolidation for Truck Sideboard (step rail) DLFT Hull DLFT + Structural FoamSMC Hull Integrated Material Development & Advanced Manufacturing Engineering for PWCs Structural Foam 48 pcs 1 pc Customer
Slide 13: Growth by Acquisition
• New Core Competencies or Materials • Press Capacity Expansion • Added Material Systems or Processes • Geographic Expansions GROWTH BY ACQUISITION • New Customers • New Industries Priorities Over 50% of 2022 revenues came from processes & materials acquired since 2015 From 2015 To 2022 100% Thermos
Slide 14: Manufacturing Excellence
Excellence drives long term targets in range of 17-19% gross margins MANUFACTURING EXCELLENCE 14 Continuous Improvement in All PlantsImprovements in Underperforming Plants Must Win Battle Major productivity improvements Quality improvements / Scrap reductions New product launch improvements Employee
Slide 15: Sustainability
SUSTAINABILITY The Company is committed to sustainable operational excellence that drives long-term value creation, positive corporate citizenship and sustainable solutions for our customers Internal 30x30 environmental strategy – reduce energy, greenhouse gas emissions and waste 30% by 2030 Custome
Slide 16: Financials
16 FINANCIALS
Slide 17: Selected Financial Information
SELECTED FINANCIAL INFORMATION 17 Increasing sales due to growing markets and new business Margin improvement resulting from operational improvements and raw material recoveries Controlled fixed cost spending allows gross margin improvement to flow through to operating income Record first half net i
Slide 18: Selected Financial Information
SELECTED FINANCIAL INFORMATION 18 • Sustained strong sales growth since reopening from COVID • 2023 strategic initiative to improve profitability resulting in increasing EBITDA • Increasing profit and tight management of capital providing doubling of ROCE since 2020 $222 $308 $377 $385 $0 $100 $200
Slide 19: Long Term Financial Goals
LONG TERM FINANCIAL GOALS Revenues Operating Income Return on Capital Employed December 2022 3 – 5 Years $377MM 4.8% 12.7% >$500MM • Organic growth • Acquisitions • Further industry diversification 8%-10% • Operational improvements • Value selling • Leverage fixed costs 14%-16% • Brick and mortar ad
Slide 20: Cash Flows and Reinvestment
in millions Operating Cash Flows Sustaining Capex Growth Capex Free Cash Flows Free Cash Flows Excluding Growth Capex 2020 28.2$ 1.3$ 2.4$ 24.5$ 26.9$ 2021 12.5$ 6.3$ 5.1$ 1.1$ 6.2$ 2022 19.0$ 7.8$ 8.8$ 2.4$ 11.2$ Total 59.7$ 15.4$ 16.3$ 28.0$ 44.3$ 3 Year Avg. 19.9$ 5.1$ 5.4$ 9.3$ 14.8$ 1H 2023 18.
Slide 21: Capitalization
in millions As of June 30, 2023 Equity 130.3$ Total Debt 23.6$ Capital Deployed 153.9$ Cash on Hand 14.2$ Lines of Credit Availability 50.0$ 64.2$ Debt Leverage Ratio 0.6 CAPITALIZATION 21 $25.0 Revolver $25.0 Term Loan $25.0 Capex Facility Debt Facility (in millions) • Term Loan Interest rate fixed
Slide 22: Contacts
CONTACTS 22 Company Contact John Zimmer Chief Financial Officer 614.870.5604 Investor Contact Sandy Martin / Steven Hooser Three Part Advisors 214.616.2207
Slide 23: Appendix
APPENDIX 23
Slide 24: Net Income (Loss) to Adjusted EBITDA Reconciliation
NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION (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 25: Year-End and Return on Capital Employed Reconciliation
YEAR-END AND RETURN ON CAPITAL EMPLOYED (“ROCE”) RECONCILIATION 25 . Reconciliation of GAAP to Non-GAAP Financial Measures * Return on Capital Employed represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for income taxes, (iii) restructu
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