Gentex Corporation · NASDAQ:GNTX
Gentex — Shareholder Meeting (May 2019)
18 slides from Gentex's shareholder meeting presentation, May 16, 2019
Slide 1: Annual Shareholder Meeting
ANNUAL SHAREHOLDER MEETING MAY 16, 2019
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: Company Snapshot
COMPANY SNAPSHOT Sales and Support Offices: United States, Germany, France, United Kingdom, Sweden, Korea, Japan, and China Employee Count: 5,700+ Shipping to: Available on: 30+ OEMs 500+ Nameplates <GENTEX INVESTOR OVERVIEW> 3
Slide 4: 2018 Product Performance: Auto-Dimming Mirror Shipments
2018 PRODUCT PERFORMANCE AUTO-DIMMING MIRROR SHIPMENTS (thousands) 31.3% (Global Penetration) Interior Auto-Dimming Mirrors (IEC) 29,651 IECs (+5%) 28,332 in 2017 11,954 OECs (+9%) 11,010 in 2017 12.6% (Global Penetration) 41,605 TOTAL MIRRORS (+6%) 39,343 in 2017 Outside Auto-Dimming Mirrors (OEC)
Slide 5: 2018 Performance
$1.834B 16.1% Revenue Annual Tax Rate 37.6% $86M Gross Margin Performance Capital Expenditures 2018 $182M $102M PERFORMANCE Operating Expenses (E, R&D and S, G&A) Depreciation & Amortization 6% 8% Unit Shipment Growth Net Income Growth 2% 15% Revenue Growth Diluted EPS Growth <GENTEX INVESTOR OVERVI
Slide 6: 2018 Return to Shareholders
2018 RETURN TO SHAREHOLDERS $0.44 $800.0 $708.2M Dividend Per Share $700.0 $116.6 $116.6M $600.0 $500.0 Dividends Paid MILLIONS USD $400.0 26.4M $300.0 $264.5M $340.2M $108.8 $591.6 Shares Repurchased $208.2M $200.0 $101.1 $117.6M $97.0 $591.6M $100.0 $87.6 $111.2 $163.4 $231.4 Share Repurchases $-
Slide 7: Guidance
$1.83 – 1.93B 16 – 18% Revenue Annual Tax Rate 2019 36 – 37% $90 – 100M GUIDANCE Gross Margin Capital Expenditures $195 – 200M $105 - 115M Operating Expenses Depreciation & Amortization (E, R&D and S, G&A) 2020 3-8% Revenue GUIDANCE Growth above 2019 <GENTEX INVESTOR OVERVIEW> 7
Slide 8: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY • Announced March 8, 2019 －Dividend Increase +5% - $.46 per year －New Share Authorization - 25M additional shares • Utilizing Free Cash Flow －Capital Expenditures －Dividends －Repurchases －M&A <GENTEX INVESTOR OVERVIEW> 8
Slide 9: Future Direction
FUT URE D IREC T IO N <GENTEX INVESTOR OVERVIEW> 9
Slide 10: Core Competencies
CORE COMPETENCIES • Electronics & Microelectronics • Vision Systems, Cameras, & Optics • Software Design • Chemistry & Coatings • Automated Assembly • Glass Processing <GENTEX INVESTOR OVERVIEW> 10
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES • Distinct Products and Locations • Superior Quality • Strong Intellectual Property • Dominant Market Share • Unique Fusion of Technologies <GENTEX INVESTOR OVERVIEW> 11
Slide 12: Market Perception: The Bear Case
MARKET PERCEPTION: THE BEAR CASE Autonomous vehicles Cameras replace mirrors remove mirrors Ride sharing and lower vehicle production stall growth Apps replace HomeLink <GENTEX INVESTOR OVERVIEW> 12
Slide 13: Our Technology Strategy
OUR TECHNOLOGY STRATEGY Vision Systems Dimmable Devices Connected Cars <GENTEX INVESTOR OVERVIEW> 13
Slide 14: Vision Systems
VISION SYSTEMS • Strategy －Continue our long tradition of mirror growth in emerging markets while benefiting from digital content opportunities in developed regions • Core Competencies / Competitive Advantages －Leverages all core competencies and competitive advantages • Execution －Auto Dimming Mirr
Slide 15: Connected Car
CONNECTED CAR • Strategy －Combine existing HomeLink RF technology with cloud-based functionality and transactional capability to provide car-to-home and car-to-infrastructure solutions. • Core Competencies / Competitive Advantages －Electronics & Microelectronics －Software Design －Strong IP －Unique f
Slide 16: Dimmable Devices
DIMMABLE DEVICES • Strategy －Leverage our market-leading position in dimming technology to accelerate growth in aerospace, automotive, and new markets. • Core Competencies / Competitive Advantages －Chemistry & Coatings －Glass Processing －Distinct Products and Location －Superior Quality －Strong IP －U
Slide 17: CES Overview Video
CES Overview Video: To see the video, visit: https://youtu.be/AIpwTLIbGt8 <GENTEX INVESTOR OVERVIEW> 17
Slide 18: Thank You
THANK YOU FOR MORE INFORMATION VISIT GENTEXTECH.COM