Matthews International Corporation · NASDAQ:MATW

Matthews International — 19th Annual B. Riley FBR Investor Conference 2018

22 slides from Matthews International's conference presentation, May 23, 2018

  1. Slide 1: 19th Annual B. Riley FBR Investor Conference

    19th Annual B. Riley FBR Investor Conference May 23, 2018 Joseph C. Bartolacci President and Chief Executive Officer Steven F. Nicola Chief Financial Officer ©2018 Matthews International Corporation. All Rights Reserved.

  2. Slide 2: Disclaimer

    Disclaimer Any forward-looking statements with respect to Matthews International Corporation (the “Company”) in connection with this presentation are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve kno

  3. Slide 3: A Global Company Serving Consumer Products, Memorialization and Industrial Markets

    A GLOBAL COMPANY SERVING THE CONSUMER PRODUCTS, MEMORIALIZATION AND INDUSTRIAL MARKETS – ROOTED IN IDENTIFICATION PRODUCTS NASDAQ: MATW Founded 1850 Common Shares Outstanding 32.1 million Market Capitalization $1.7 billion Annualized Dividend / Yield $0.76 / 1.4% Recent Price $53.05 Institutional Ow

  4. Slide 4: Driving Growth Amidst Change

    Driving Growth Amidst Change EPS Growth Strategy  Organic . Expand market penetration with existing products . Manufacturing/cost structure improvements . New product development  Acquisitions . Support segment business plans . Leverage existing operating infrastructure . Achieve long-term annual

  5. Slide 5: Delivering Growth

    Delivering Growth ($ in millions, except EPS) Sales Operating Cash Flow 200 $1,426.1 $1,480.5 $1,515.6 $149.3 150 $141.1 $140.3 $1,106.6 $985.4 $108.1 100 $90.7 50 0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 FY2016 FY2017 EPS & Adjusted EPS* Adjusted EBITDA and Margin 4 Adj EPS EPS $3.

  6. Slide 6: Segment Contributions

    Segment Contributions ($ in millions) FY2017 FY2017 Sales Adjusted EBITDA* Consolidated: $1,515.6 Consolidated: $238.7 Memorialization SGK Brand SGK Brand 41% Memorialization Solutions Solutions 50% 45% 51% Industrial Industrial Technologies Technologies 8% 5% * See supplemental slides for Adjusted

  7. Slide 7: SGK Brand Solutions Overview

    SGK Brand Solutions Overview  FY2017 financial results: Revenue Estimates Merchandising . Sales: $770.2 million Creative . Tooling Design Adjusted EBITDA* and Margin: $107.2 million, 13.9% (cylinders, plates for printers)  ~7,000 employees Reprographic (from design to  Leading global brands print

  8. Slide 8: Servicing Global and Regional Clients

    Servicing Global and Regional Clients • Longstanding relationships with a large, blue chip customer base consisting of many Fortune 100 and Fortune 50 companies • “Strategic” relationships rather than “vendor” relationships – more valued client engagement, over 400 employees working onsite across 85

  9. Slide 9: SGK Brand Solutions Strategy

    SGK Brand Solutions Strategy  Global footprint, regional relationships Differentiators  #1 global market share  Execution capability, local know-how  High barriers to entry  Branded vs. private label Trends  Centralizing, with local adoption  On-line marketing, consistency with on-shelf  Max

  10. Slide 10: Memorialization Overview

    Memorialization Overview  FY2017 financial results: Revenue Estimates . Sales: $615.9 million . Bronze & Adjusted EBITDA* and Margin: $118.9 million, 19.3% Granite Memorials Caskets  ~3,300 employees  Caskets, bronze/granite memorials, cremation Cremation Equipment & equipment, cremation-related

  11. Slide 11: Memorialization Strategy

    Memorialization Strategy  #1 / #2 market position – bronze memorials / caskets Differentiators  Granite - regionally located, gaining share  Cremation-related product offerings 4,000,000 Total US Deaths * Casketed Deaths * 3,500,000  Population growth… 3,000,000 2,500,000 increasing deaths 2,000

  12. Slide 12: Industrial Technologies Overview

    Industrial Technologies Overview  FY2017 financial results: . Sales: $129.5 million . Adjusted EBITDA* and Margin: $12.6 million, 9.7%  ~700 employees  Inkjet, thermal and laser marking products Multiple integrated distribution and fulfillment systems (including laser-based identification and dim

  13. Slide 13: Industrial Technologies Strategy

    Industrial Technologies Strategy  Leading warehouse fulfillment systems provider  Differentiators Broad marking product offerings, including equipment, inks and service  Innovative mindset  Growth in e-commerce warehousing, logistics Trends  New product development focus on total cost of owners

  14. Slide 14: Capital Allocation Priorities

    Capital Allocation Priorities  Invest in organic growth . Annual capex ~3% of revenue Capitalization  Debt reduction (in millions) $1,046.3 . $911.1 4.1x Net debt : adjusted EBITDA at 3/31/18 $852.1 $790.3 . Goal of under 3x  Dividends . $0.76 annualized per share $57.5 $64.8 . 1.5% yield 9/30/20

  15. Slide 15: Recent Developments

    Recent Developments  Fiscal 2018 non-GAAP earnings per share expectations to be at least 10% over fiscal 2017  Acquired Star Granite & Bronze for $41.2 million in February 2018  Record sales of $1.57 billion for TTM 3/31/18  Record operating cash flow of $161.3 million for TTM 3/31/18  Complete

  16. Slide 16: Investment Highlights

    Investment Highlights Leading market positions Strong cash flow profile Consistent EPS growth trend Strategically filling revenue growth gaps via acquisition Proven history of acquisition integration and realization of synergies Industrial Technologies presents opportunities for marketplace disrupti

  17. Slide 17: 19th Annual B. Riley FBR Investor Conference

    19th Annual B. Riley FBR Investor Conference May 23, 2018 ©2018 Matthews International Corporation. All Rights Reserved.

  18. Slide 18: Supplemental Information

    Supplemental Information ©2018 Matthews International Corporation. All Rights Reserved. 18

  19. Slide 19: Reconciliations of Non-GAAP Financial Measures

    Reconciliations of Non-GAAP Financial Measures The Company uses non-GAAP financial measures to assist in comparing its performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect the Company’s cor

  20. Slide 20: Adjusted Earnings Per Share Non-GAAP Reconciliation

    Adjusted Earnings Per Share Non-GAAP Reconciliation ($ in millions, except EPS) Fiscal year ended September 30, 2013 2014 2015 2016 2017 Net income attributable to Matthews $ 54.1 $ 42.6 $ 63.4 $ 66.7 $ 74.4 Acquisition-related items 2.3 19.5 26.4 23.6 20.6 Intangible asset write-offs - - 3.3 - - Li

  21. Slide 21: EBITDA and Adjusted EBITDA Non-GAAP Reconciliation

    EBITDA and Adjusted EBITDA Non-GAAP Reconciliation ($ in millions) Fiscal year ended September 30, 2013 2014 2015 2016 2017 Net Income $ 54.1 $ 42.6 $ 63.4 $ 66.7 $ 74.4 Interest expense 12.9 12.6 20.6 24.3 26.4 Income tax provision (benefit) (1) 26.2 22.8 26.4 29.1 22.4 Depreciation and amortizatio

  22. Slide 22: Adjusted EBITDA by Segment Non-GAAP Reconciliation

    Adjusted EBITDA by Segment Non-GAAP Reconciliation ($ in millions) Fiscal year ended Sept ember 30, S GK B r a nd S ol ut i ons 2015 2016 2017 Operat ing Prof it $ 21.9 $ 42.9 $ 24.9 Depreciat ion and amort izat ion (1) 47.2 42.5 43.5 Ot her (2) 2.5 0.7 4.9 EBITDA $ 71.6 $ 86.0 $ 73.3 Acquisit ion-r

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