Matthews International Corporation · NASDAQ:MATW

Matthews International — Q3 2016 Earnings Presentation

31 slides from Matthews International's earnings presentation, Aug 19, 2016

  1. Slide 1: Investor Presentation 3rd Quarter Fiscal 2016

    ©2016 Matthews International Corporation. All Rights Reserved. INVESTOR PRESENTATION 3RD QUARTER FISCAL 2016 Exhibit 99.1

  2. Slide 2: Business Overview

    ©2016 Matthews International Corporation. All Rights Reserved. Business Overview 2

  3. Slide 3: Disclaimer

    ©2016 Matthews International Corporation. All Rights Reserved. Disclaimer Any forward-looking statements with respect to Matthews International Corporation (the “Company”) in connection with this discussion are being made pursuant to the safe harbor provisions of the Private Securities Litigation Re

  4. Slide 4: Matthews

    ©2016 Matthews International Corporation. All Rights Reserved. Matthews  Founded in 1850 – headquartered in Pittsburgh, PA  Three business segments:  SGK Brand Solutions  Memorialization  Industrial Technologies  Over 10,000 employees  Over 25 countries  NASDAQ – 32.1 million shares outstand

  5. Slide 5: Sales by segment, fiscal 2015

    ©2016 Matthews International Corporation. All Rights Reserved. Sales 5 Memorialization Industrial Technologies SGK Brand Solutions FISCAL 2015 56% 36% 8% 100% SGK Brand Solutions Memorialization Industrial Technologies

  6. Slide 6: SGK Brand Solutions

    ©2016 Matthews International Corporation. All Rights Reserved. SGK BRAND SOLUTIONS 6

  7. Slide 7: SGK Brand Solutions

    ©2016 Matthews International Corporation. All Rights Reserved. SGK Brand Solutions 7 Brand Development Brand Deployment Create Brand Performance Improved top- line growth Activate Improved bottom-line performance = + Premedia Tooling Merchandising Delivering Brand Performance

  8. Slide 8: SGK Brand Solutions

    ©2016 Matthews International Corporation. All Rights Reserved. SGK Brand Solutions 8 The full U.K. packaging portfolio for Kit Kat was redesigned by Anthem, a global creative agency that is part of the brand development business of the SGK Brand Solutions segment. The SGK Brand Solutions segment pro

  9. Slide 9: Memorialization

    ©2016 Matthews International Corporation. All Rights Reserved. MEMORIALIZATION 9

  10. Slide 10: Memorialization

    ©2016 Matthews International Corporation. All Rights Reserved. 10 Building signs are an example of the segment’s architectural product offerings. Memorialization Matthews is well known for its heritage of creating beautiful, time-tested bronze memorials. The segment designs unique glass-front niches

  11. Slide 11: Memorialization

    ©2016 Matthews International Corporation. All Rights Reserved. 11 Memorialization The Company is a leading manufacturer and distributor of caskets (wood, metal and cremation) in North America. The Super Power Pak III Plus cremation unit has some of the most advanced features in combustion technology

  12. Slide 12: Memorialization: Casketed Deaths vs. Total Deaths

    ©2016 Matthews International Corporation. All Rights Reserved. 12 Memorialization  Casketed Deaths vs. Total Deaths *Total anticipated deaths per US Census Bureau 2009 projections Non-Cremation Data compiled from CDC, US Census Bureau, Industry reports and internal projections.

  13. Slide 13: Industrial Technologies

    ©2016 Matthews International Corporation. All Rights Reserved. INDUSTRIAL TECHNOLOGIES 13

  14. Slide 14: Industrial Technologies

    ©2016 Matthews International Corporation. All Rights Reserved. 14 Industrial Technologies Non-contact ink-jet printing units apply print on products. Driven by sophisticated automation software and controls, multiple integrated distribution and fulfillment systems (including laser-based identificati

  15. Slide 15: Financial Overview

    ©2016 Matthews International Corporation. All Rights Reserved. Financial Overview 15

  16. Slide 16: Key Elements of Long-Term EPS Growth

    ©2016 Matthews International Corporation. All Rights Reserved. Key Elements of Long-Term EPS Growth  Internal Growth  Expand market presence of existing products  New product development  Manufacturing/cost structure improvements  Acquisitions  Share Repurchases 16

  17. Slide 17: Acquisition Program

    ©2016 Matthews International Corporation. All Rights Reserved. Acquisition Program Principal objective: Support existing business plans of each operating segment and long-term growth objectives of the Company. Financial criteria: Immediately accretive to EPS. Achieve long-term target of an annual re

  18. Slide 18: Consolidated Results

    ©2016 Matthews International Corporation. All Rights Reserved. Consolidated Results 18 Fiscal year ended September 30, YTD June 30, 2013 2014 2015 2015 2016 (unaudited) (unaudited) Sales 985,357$ 1,106,597$ 1,426,068$ 1,057,730$ 1,103,469$ Operating Profit 94,615$ 81,522$ 105,023$ 72,265$ 79,143$ Ad

  19. Slide 19: Segment Results – Sales

    ©2016 Matthews International Corporation. All Rights Reserved. Segment Results – Sales 19 (Dollars in thousands) Fiscal year ended September 30, YTD June 30, 2013 2014 2015 2015 2016 Sales: (unaudited) (unaudited) SGK Brand Solutions 373,941$ 497,328$ 798,339$ 597,638$ 562,308$ Memorialization 517,9

  20. Slide 20: Segment Results – Operating Profit

    ©2016 Matthews International Corporation. All Rights Reserved. Segment Results – Operating Profit 20 (Dollars in thousands) Fiscal year ended September 30, YTD June 30, 2013 2014 2015 2015 2016 Operating Profit: (unaudited) (unaudited) SGK Brand Solutions 13,999$ 2,536$ 21,864$ 5,536$ 26,108$ Memori

  21. Slide 21: Adjusted Free Cash Flow

    ©2016 Matthews International Corporation. All Rights Reserved. Adjusted Free Cash Flow 21 (Dollars in thousands) 2013 2014 2015 Net Income 54,121$ 42,625$ 63,449$ Adjustments to Net Income (1) 10,533 27,416 20,481 Adjusted Net Income 64,654 70,041 83,930 Depreciation and Amortization 37,865 42,864 6

  22. Slide 22: Earnings Per Share

    ©2016 Matthews International Corporation. All Rights Reserved. Earnings Per Share 22 Note: Adjusted earnings per share reflects certain adjustments impacting comparability and other adjustments. See reconciliation at Appendix C. Earnings Per Share Adjusted Earnings Per Share $0.00 $0.50 $1.00 $1.50

  23. Slide 23: EBITDA

    ©2016 Matthews International Corporation. All Rights Reserved. EBITDA (Dollars in millions) 23 Note: EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. See reconciliation at Appendix B. Adjusted EBITDA represents EBITDA plus certain expenses, and also re

  24. Slide 24: Common Stock Price

    ©2016 Matthews International Corporation. All Rights Reserved. Common Stock Price 24 Note: Stock price obtained from daily adjusted close price for each respective month-end period.

  25. Slide 25: Recent Highlights

    ©2016 Matthews International Corporation. All Rights Reserved. Recent Highlights  Acquisition integrations remain on track  Increased quarterly dividend 15.4% to 15.0 cents (November 2015)  21st consecutive annual dividend increase since the Company’s IPO  Reported record sales of $1.4 billion i

  26. Slide 26: Institutional Shareholders

    ©2016 Matthews International Corporation. All Rights Reserved. Institutional Shareholders 26 Shares 6/30/2016 Franklin Advisory Services, LLC 3,076,200 BlackRock Institutional Trust Company, N.A. 2,827,107 The Vanguard Group, Inc. 2,742,543 T. Rowe Price Associates, Inc. 1,479,692 Wellington Managem

  27. Slide 27: Appendices

    ©2016 Matthews International Corporation. All Rights Reserved. Appendices 27

  28. Slide 28: Adjusted Operating Profit Non-GAAP Reconciliation

    ©2016 Matthews International Corporation. All Rights Reserved. Adjusted Operating Profit Non-GAAP Reconciliation 28 Appendix A (Dollars in thousands) 2013 2014 2015 2015 2016 SGK Brand Solutions Operating Profit 13,999$ 2,536$ 21,864$ 5,536$ 26,108$ Acquisition-related items 9,408 28,214 33,605 26,4

  29. Slide 29: EBITDA and Adjusted EBITDA Non-GAAP Reconciliation

    ©2016 Matthews International Corporation. All Rights Reserved. EBITDA and Adjusted EBITDA Non-GAAP Reconciliation 29 Appendix B (Dollars in thousands) Fiscal year ended September 30, YTD June 30, 2013 2014 2015 2015 2016 Net Income 54,121$ 42,625$ 63,449$ 46,475$ 42,886$ Interest expense 12,925 12,6

  30. Slide 30: Adjusted Earnings Per Share Non-GAAP Reconciliation

    ©2016 Matthews International Corporation. All Rights Reserved. Adjusted Earnings Per Share Non-GAAP Reconciliation 30 Appendix C Fiscal year ended September 30, YTD June 30, 2013 2014 2015 2015 2016 EPS - GAAP 1.95$ 1.49$ 1.91$ 1.40$ 1.30$ Acquisition-related items (0.14) 0.71 0.79 0.57 0.57 Intangi

  31. Slide 31: Adjusted Net Income Non-GAAP Reconciliation

    ©2016 Matthews International Corporation. All Rights Reserved. Adjusted Net Income Non-GAAP Reconciliation 31 Appendix D (Dollars in thousands) Pretax After Tax Pretax After Tax Pretax After Tax Net Income 80,179$ 54,121$ 66,076$ 42,625$ 89,652$ 63,449$ Acquisition-related items 3,369 2,291 28,662 1

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