Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Investor Presentation (June 2019)
23 slides from Commercial Vehicle's investor presentation, Jun 13, 2019
Slide 1: Investor Presentation June 2019
Patrick Miller President & CEO Tim Trenary Chief Financial Officer & Treasurer Kirk Feiler VP Corporate Development & COMMERCIAL VEHICLE GROUP, INC. Investor Relations June 2019 Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “continue”, “likely”, and sim
Slide 3: Investment Highlights
Investment Highlights Leading supplier of electrical wire harnesses, seating systems and a full range of cab related components to the global commercial vehicle industry Strong and growing global presence – 24 facilities across North America, Europe and Asia Pacific FY 2018 revenue $898 millio
Slide 4: 2018 Sales by Region, Product, End Market and Customer
2018 Sales Region Product 11% 7% N. America 8% Seating Systems 18% EMEA 41% Wire Harnesses APAC 22% Trim 71% Structures 22% Wipers / Mirrors End Market Customer Volvo 8% OEM Truck 4% 19% 5% Daimler OEM Construction 33% 15% 46% Paccar 16% Aftermarket Caterpillar 6% 22% OEM Automotive John Deere 7% 11
Slide 5: Products
Products Seats & Seating Systems Wire Harnesses & Controls Wiper Systems, Mirrors & Interior Trim Cabs and Sleeper Boxes Controls Page | 5 COMMERCIAL VEHICLE GROUP, INC.
Slide 6: Electrical Systems
Electrical Systems Electrical Systems Segment: Electrical wire harnesses and panel assemblies for increasingly complex and content-rich electrical and data distribution systems in vehicles and other applications; trim products for component integration FY 2018 MARKET SECTOR MIX PRODUCT METRICS (SALE
Slide 7: Growth Drivers – Electrical Systems
Growth Drivers – Electrical Systems Macro Economic Trends - Global electrical distribution market expected to grow 6.5% CAGR through 2023* Diversification - Adjacent market penetration in truck powertrain, power generation and other industrial applications Digitalization and connectivity - Gro
Slide 8: Global Seating
Global Seating Global Seating Segment: Strong brand recognition in $3.1B addressable global market* (~$15B available market)* with established market position and new wins in Asia Pacific market FY 2018 MARKET SECTOR MIX PRODUCT METRICS (SALES) PORTFOLIO SALES 7% 5% Seats and Seating Systems 21% 43%
Slide 9: Growth Drivers – Global Seating
Growth Drivers – Global Seating Brand - Strong brand recognition Product Enhancements - New modular seat product leverages product engineering, design and manufacturing capabilities across end markets; maintains functionality and styling options while reducing complexity and cost Global Trends
Slide 10: End Market Outlook - North America Truck
End Market Outlook - North America Truck Heavy-Duty Truck (Class 8) Build (000’s) Medium-Duty Truck (Class 5-7) Build (000’s) 337 322 272 268 271 249 256 246 2017 2018 2019E 2020E 2017 2018 2019E 2020E Source: April 2019 ACT Research Report Source: April 2019 ACT Research Report Class 8 builds exp
Slide 11: End Market Outlook – Global Construction Equipment
End Market Outlook – Global Construction Equipment HD-MD Construction Machinery (000’s) Excavator Industry US/CAN* (6-40mt) (000’s) 1,227 1,121 32.5 32.8 1,031 29.9 896 24.7 2017 2018 2019E 2020E 2017 2018 2019E 2020E Source: Management estimates, Millmark, S&OP data *Global Excavator growth in line
Slide 12: Long-term Strategy
Long-term Strategy Enhance Market Position Organic and Inorganic Growth Optimizing our competitive position Investment in the business to accelerate growth Reorganized to leverage secular trends Strategic acquisitions that expand the portfolio, add capabilities and Reinvesting in next gene
Slide 13: Investments to Support Growth
Investments to Support Growth • Meeting the needs of current and future Expanding wire harness customer demand facility in Ukraine • Operational in 2H 2019 New wire harness facility • Latest technology and digitalization in Morelos, Mexico • Ramping in 2H 2019 Enhancing injection • Purpose-built fac
Slide 14: Finance Update
Finance Update COMMERCIAL VEHICLE GROUP, INC.
Slide 15: Historical Performance
Historical Performance Revenues (Millions) Operating Income (Millions) & Margin $898 7.4% $755 3.8% 4.1% $67 $662 $25 $31 2016 2017 2018 2016 2017 2018 Strong end-market performance Reflects benefit of margin enhancement actions Revenues up 36% from 2016 Restructuring Both segments contrib
Slide 16: Q1 2019 Financial Update
Q1 2019 Financial Update Millions except per share data Q1 2019 Q1 2018 Qtr Change Revenue $ 243.2 $ 215.7 12.7% Gross Profit 34.6 30.8 12.1% Gross Margin 14.2% 14.3% SGA 15.2 15.2 - Operating Income 19.0 15.3 24.6% Operating Margin 7.8% 7.1% Diluted Earnings per Share 0.36 0.32 12.5% Revenue up 1
Slide 17: Electrical Systems Segment Results
Electrical Systems Segment Results Qtr Electrical Systems 1Q 2019 Sales Millions Q1 2019 Q1 2018 Change Revenue $ 143.6 $ 122.9 16.8% Gross Profit 20.8 18.0 16.1% 21% Truck OEMs Construction OEMs Gross Margin 14.5% 14.6% 10% 52% Aftermarket / OE Service SG&A 4.1 3.8 9.9% 17% Other Operating Income 1
Slide 18: Global Seating Segment Results
Global Seating Segment Results Qtr Global Seating 1Q 2019 Sales Millions Q1 2019 Q1 2018 Change Revenue $ 104.1 $ 95.1 9.4% 11% Truck OEMs Gross Profit 13.8 13.1 5.0% 19% Construction OEMs Gross Margin 13.2% 13.8% 47% Aftermarket / OE Service SG&A 5.3 5.7 (5.5%) 23% Other Operating Income 8.3 7.3 13
Slide 19: Capital Structure
Capital Structure ($M) 3/31/2019 3/31/2018 Cash $54.3 $37.9 ABL Availability 63.4 55.8 Total Liquidity $117.7 $93.7 Debt $163.2 $179.2 TTM EBITDA $86.6 $59.2 Gross Leverage 1.9x 3.0x Net Leverage 1.3x 2.4x Solid cash position No borrowings on asset-based line of credit at March 2019 Repaid $5
Slide 20: Investment Highlights
Investment Highlights Leading supplier of electrical wire harnesses, seating systems and a full range of cab related components to the global commercial vehicle industry Strong and growing global presence – 24 facilities across North America, Europe and Asia Pacific FY 2018 revenue $898 millio
Slide 21: Appendix
Appendix COMMERCIAL VEHICLE GROUP, INC.
Slide 22: Use of Non-GAAP Measures
Use of Non-GAAP Measures This presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the non-GAAP measures exclude items that (i) management believes reflect the Company’s multi-year corporate activities
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Trailing Twelve Months $M Ended March 31, 2019 2018 Net Income $ 45.8 $ 7.5 Interest 16.7 16.8 Provision for Income Taxes 8.8 19.7 Depreciation 14.0 13.9 Amortization 1.3 1.3 EBITDA $ 86.6 $ 59.2 As of March 31, 2019 2018 Debt per Balance Sheet $
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