Trimas Corporation · NASDAQ:TRS
Trimas — Investor Day (May 2014)
121 slides from Trimas's investor day presentation, May 14, 2014
Slide 1: TriMas Investor & Analyst Day Presentation
TriMas Investor & Analyst Day Presentation Ma y 1 4 , 2 0 1 4 NASDAQ • TRS
Slide 2: Welcome
Welcome Sherry Lauderback, VP of Investor Relations & Communications
Slide 3: Forward-Looking Statements
Forward‐Looking Statements Any “forward‐looking” statements contained herein, including those relating to market conditions or the Company’s financial condition and results, expense reductions, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including, but n
Slide 4: Agenda
Agenda 8:00 a.m. Registration and Continental Breakfast 8:30 a.m. Welcome: Sherry Lauderback, VP, Investor Relations & Communications, TriMas 8:35 a.m. Opening Remarks/TriMas Vision: Dave Wathen, President & CEO, TriMas 8:55 a.m. Packaging: Lynn Brooks, President, and David Pritchett, Executive Vice
Slide 5: Corporate Leadership in Attendance
David Wathen President & Chief Executive Officer Joined TriMas in 2009 Mark Zeffiro Executive Vice President and Chief Financial Officer Joined TriMas in 2008 Colin Hindman Vice President, Human Resources Joined TriMas in 2002 Corporate Leadership in Attendance Tom Aepelbacher Vice President, Global
Slide 6: Business Unit Leadership
Tom Benson President, Cequent Performance Products Years of Service: Industry - 30 TriMas - 23 Lynn Brooks President, Rieke Packaging Systems Years of Service: Industry - 36 TriMas - 36 Business Unit Leadership David Pritchett Executive Vice President, Rieke Packaging Systems Years of Service: Indus
Slide 7: TriMas Overview Video
TriMas Overview Video 7
Slide 8: Opening Remarks
Opening Remarks Dave Wathen, TriMas President and CEO
Slide 9: TriMas Key Messages
9 TriMas Key Messages • Highly‐engineered products serving defensible, focused markets • Significant opportunities for organic growth and bolt‐on acquisitions • Increased focus on margin expansion • Business units managed by experienced leaders and industry experts • Multiple levers to drive EPS gro
Slide 10: Balanced Portfolio with Common Attributes
10 Balanced Portfolio with Common Attributes aaa CEQUENT ENG INEERED COMPONENTS AEROSPACE & DEFENSE ENERGY PACKAG ING Revenue: $313.2 Op. profit margin(1): 24.2% Americas Revenue: $437.3 Op. profit margin(1): 7.9% ($ in millions; from continuing operations) Revenue: $205.6 Op. profit margin: 4.2% Re
Slide 11: Highly Diversified Business and Customer Profile
Packaging 23% Energy 15% Aerospace & Defense 7% Engineered Components 13% Cequent Americas 31% Cequent APEA 11% By Segment U.S. (domestic) 70% U.S. (export) 9% Europe 7% Australia 7% Asia 3% ROW 4% By Geography Highly Diversified Business and Customer Profile 11 2013 Revenue Breakdown Broad Blue‐Chi
Slide 12: Strategic Aspirations – As of 2009
Strategic Aspirations – As of 2009… 12 Launched strategic aspirations and operating model in 2009. G E N E R A T E high single-digit top-line growth I N V E S T in growing end markets through new products, global expansion and acquisitions D R I V E 3% to 5% total gross cost productivity gains annua
Slide 13: …Drives Results
13 …Drives Results S a l e s ( $ i n m i l l i o n s ) D i l u t e d E a r n i n g s P e r S h a r e ( 1 ) (1) Sales and Diluted EPS(1) (1) Defined as diluted earnings per share from continuing operations attributable to TriMas Corporation, excluding “Special Items.” Sales CAGR= ~16% EPS(1) CAGR = ~
Slide 14: Total Debt and Leverage Ratio
14 ($ in millions) Total Debt and Leverage Ratio (including A/R Facility) $630 $515 $495 $470 $422 $306 1x 2x 3x 4x 5x $200 $300 $400 $500 $600 $700 YE 08 YE 09 YE 10 YE 11 YE 12 YE 13 L e v e r a g e R a t i o T o t a l D e b t Series1 Series2Total Debt Leverage Ratio …Drives Results Improvements i
Slide 15: External Benchmarking
External Benchmarking TriMas versus Premier Diversified Industrial Companies(1) 2009 ‐ 2013 Revenue Growth > Peers EPS Growth > Peers Leverage Ratio vs. Peers ROIC vs. Peers Margin vs. Peers X FCF Conversion vs. Peers X Tax Rate vs. Peers Dividend vs. Peers Possible in future While we achieved
Slide 16: Strategic Aspirations – As of 2014
Strategic Aspirations – As of 2014 16 Consistent strategic aspirations – modified slightly to capture current focus. G E N E R A T E high single-digit top-line growth I N V E S T in growing end markets through new products, global expansion and acquisitions E N H A N C E margins through productivity
Slide 17: Longer-Term Market Trends
Longer‐Term Market Trends 17(1) Source: Wolfensohn Center for Development Uniquely positioned to take advantage of “bright spots.” • Growing global middle class at 4.7% CAGR projected(1) with 80% of growth projected in Asia and South America • Fuel efficient aircraft; aircraft backlog through 2019,
Slide 18: Recent Strategic Plan Key Takeaways
Recent Strategic Plan Key Takeaways 18 Plan meets strategic aspirations for growth, productivity, ROIC, earnings and margin improvement Businesses have identified achievable growth plans via product and geographic expansion, as well as acquisitions Each business has identified achievable margin impr
Slide 19: Future Aspirations
Future Aspirations 19 • Ongoing organic and acquisition growth • Disciplined focus on higher growth markets • Business mix, ongoing productivity and cost leverage • Deploy cash for growth and productivity • Hurdle rate goal We are working toward these metrics of success.
Slide 20: Packaging
Packaging Lynn Brooks, President David Pritchett, Executive Vice President
Slide 21: Packaging Recent History
Recent History 21 • Enhanced specialty dispensing and closure systems product offering through product development and bolt‐on acquisitions • Increased sales efforts in emerging markets • Continued productivity efforts and lean initiatives • Continued to leverage flexible manufacturing footprint – a
Slide 22: Product Overview
Product Overview Diverse products designed to enhance customers’ ability to store, transport, process and dispense 22 We develop and manufacture high‐performance, value‐added products.
Slide 23: 5 Year Evolution
• Industrial product growth approximates GDP • Dispensing/delivery system product growth trends 2‐4 times industrial growth rate • Significantly larger market size for dispensing products • Dispensing market is fragmented with more “individualized” requirements (not a standard) • Margins should be s
Slide 24: Differentiation
Differentiation • Customized solution – focus on customer needs and application versus “one size fits all” • Intellectual property • Significant technical support and engineering • Speed and delivery advantages – start to finish • Broader geographic presence 24 Our technical support and engineering
Slide 25: Key Strategies
• Maintain market share in industrial‐based business • Focus on growth opportunities in dispensing and delivery systems and niche closure systems • Expand geographically (customer led) • Provide regional manufacturing to service major customer requirements • Pursue and leverage bolt‐on acquisitions
Slide 26: Positive Market Trends
Positive Market Trends • New dispensing technologies (hands‐free dispensing, inverted containers dispensing systems, fewer components, all plastic) • Food, pharma and personal care markets grow at rates higher than GDP – align with growth markets • Environmentally‐friendly packaging options desired
Slide 27: Positive Market Trends (cont.)
We are focused on consumer packaging with specific geographic and market segment attractiveness – we are aligning with growth markets and sectors. Sources: Euromonitor and PIRA 2012 4.0% 3.0% 1.0% ‐1.0% Overall annual average growth rate 2.9% (2010‐16) Personal Care MEAA LATAM Europe NA 7.0% 3.0% 2.
Slide 28: Follow Global Customers
Follow Global Customers Working with global customers to provide unique product solutions. 28
Slide 29: Global Expansion
Global Expansion 29 Rieke is a global business and will continue to expand geographic coverage. Production/Sales Locations Additional Sales/Warehouse Locations New Since 2012
Slide 30: Increased Focus on New Product Development
Increased Focus on New Product Development 30 New Product Development Centers and regional technical support will drive product expansion and future growth. FUTURE FOOTPRINT FOR TECHNOLOGY TEAM FUTURE FOOTPRINT FOR TECHNOLOGY TEAM FUTURE FOOTPRINT FOR TECHNOLOGY TEAM Global NPD Centers Regional Tech
Slide 31: Update on Past Acquisitions
• Completed in August 2011 • Internal threaded plastic closures for the food and neutraceutical markets • Reasons for acquisition: – Regional player ‐ customers wanted manufacturing capabilities east of the Rockies – Latin American and Asian opportunities – Synergies include: food market, geographic
Slide 32: Update on Past Acquisitions
• 70% completed in 2012; remainder purchased in March 2014 • Dispensing and delivery systems • Primarily North American revenue • Reasons for acquisition: – Expanded product lines – Excellent sales and business development – Large customer base – Speed to market – Synergies include: Rieke manufactur
Slide 33: Future Pipeline of Acquisitions
Future Pipeline of Acquisitions Focus of future acquisitions: • High margin companies • Product lines with barriers to entry • Focus on personal care, food, pharma and specialty industrial markets • Immediate synergies (operationally, sales coverage, product lines, geography) • Potential for a “thir
Slide 34: Future Objectives
Future Objectives 34 Goals to accomplish over the next few years: • Further sales and production penetration into Asia • Follow our customer base into Latin America and establish a significant presence in sales and operations • Complete one or two meaningful bolt‐on acquisitions • Convert third‐part
Slide 35: Summary
Summary 35 • Maintain leading market share in industrial products for North America and Europe • Protect our technology—majority of revenue is IP‐protected • Grow revenue of specialty dispensing and closure systems • Continue geographic expansion • Leverage strategic bolt‐on acquisitions
Slide 36: Energy
Energy Kurt Allen, President
Slide 37: Energy Recent History
Recent History 37 • 5 year sales CAGR of nearly 13% • Increased locations from 14 to 31 to support customers globally • Added standard and specialty bolts to product portfolio, as well as sheet jointing and isolation kits • Increased sales of highly‐engineered products • Continued to integrate and c
Slide 38: Product Overview
Product Overview 38 2013 Product Mix Based on Sales Dollars 2013 Delivery Time Mix Based on Sales Dollars Standard Special Routine Rush Approximations per management estimates Ability to charge for speed; special products have significantly higher margins than the standard products. 2013 Product Mix
Slide 39: Major Customers and Markets
39 Major Customers and Markets 2013 Major Markets Upstream/ Midstream OEM/ PowerGen/ Other Petrochemical Refining Oil & Gas Engineering & Construction Per management estimates Long‐term relationships and global contracts with key customers create opportunities around the world. Key Customers
Slide 40: Branch Expansion Better Serves Global Customers
Branch Expansion Better Serves Global Customers 40 Lamons Market Global Market Opportunity North America Central/ South America Middle/ Far East Europe North America Middle/Far East Europe Central/South America Africa Per 2013 management revenue estimates Refining branch strategy to capitalize on gl
Slide 41: Current Global Footprint
Current Global Footprint 41 Hub Branch Continue optimization of global footprint.
Slide 42: Optimizing Global Footprint
Optimizing Global Footprint • Increase revenue at newer branches – leverage costs • Increase specialty/engineered product sales • Focus the specialty bolt facilities on the global oil and gas sector • Integrate vertically and modify manufacturing footprint to improve costs • Fine‐tune branch network
Slide 43: Grow the Top-line
Grow the Top‐line • Lamons has a unique “go to market” model • Manufacturing and distribution • Gaskets and bolts • Standards and specials • Focus on oil and gas market with specialty fasteners and ring type joint gaskets • Increase revenue through recent acquisitions of sheet jointing and isolation
Slide 44: Increase Specialty/Engineered Product Sales
Increase Specialty/Engineered Product Sales • Specialty products have higher margins • Opportunity to differentiate through customer education of unidentified needs • Newer products: • WRI‐LP Gaskets • Inhibitor Gaskets • IsoTek Gaskets™ • Intelligent Bolts • CorruKamm™ Gaskets • Specialty Bolts 44
Slide 45: Vertical Integration and Low Cost Manufacturing
Vertical Integration and Low Cost Manufacturing • Basrur (India) – acquired in 2013 • Manufacturer of high quality, low cost non‐asbestos sheet jointing • Recently moved to a newer, more efficient facility • Ability to sell Lamons‐branded products to existing customers • Opportunity to seek global p
Slide 46: Productivity Initiatives
Productivity Initiatives 46 Opportunities across business to drive productivity and cost‐out; continuous improvement to enhance margins. Labor Productivity • Job shop production balanced with high volume production in low cost manufacturing plants • Lean initiatives ongoing in all manufacturing site
Slide 47: Summary
Summary 47 • Experts at specialty gaskets and bolts requiring fast delivery to customers who are willing to pay for speed • Local manufacturing and quick delivery model works with more prospects globally • Expanding into oil and gas market with specialty fasteners • Focus on footprint optimization a
Slide 48: Aerospace
Aerospace David Adler, President
Slide 49: Aerospace Recent History
Recent History • 2013 backlog at 5‐year high, 2014 even higher • Invested capital to grow business, increase capacity and improve service to customers • Completed two bolt‐on acquisitions in 2013 • Margins recently impacted by costs related to acquisitions, new facility and manufacturing ramp‐up • L
Slide 50: Aerospace Market
50 Aerospace Market Aircraft Production Value Breakdown Aerostructures ~$46B Aircraft systems, avionics & defense electronics ~$27B Aeroengines ~$32B Interiors ~$6B OEM Final Assembly ~$39B Source: ICF International 2013 Market ~$150B We operate in an $85B market – significant opportunity in a large
Slide 51: TriMas Aerospace Unique Offering
51 TriMas Aerospace Unique Offering • Highly‐engineered and complex products • Long development cycles; high switching costs • Experienced team focused on product development and continuous improvement • Reputation for quality and best‐in‐class lead times • Blind bolts are preferred approach for aut
Slide 52: TriMas Aerospace Competes On Service
52 TriMas Aerospace Competes On Service 2010 • Monogram Composi‐Lok 26 weeks • Monogram OSI Blind Bolt 28 weeks • Monogram Collars 34 weeks • Monogram Temp Fasteners 24 weeks • Martinic product average 26 weeks • Mac Fasteners product average 51 weeks 8 weeks 8 weeks 8 weeks 8 weeks 14 weeks 24 week
Slide 53: Increased Content on Composite Aircraft
53 Increased Content on Composite Aircraft Legacy Aircraft • 767 $30K • A330 $25K • A320 $20K • 737 $20K • G5 $10K Composite Aircraft Designs • 787 $230K • A350 $165K • A320NEO $35K • 737MAX $40K • G650 $45K • A380 $215K • Bell 525 $15K • KC 390 $15K Examples per management estimates Approximate Con
Slide 54: Preferred Supplier Partnerships with Customers
54 Preferred Supplier Partnerships with Customers Sales by Aircraft Type Based on 2013 management estimates Key Customers Large Commercial Business Military Regional Quality, shorter lead times and ability to run stocking programs for customers.
Slide 55: Product Expansion Opportunities
55 Product Expansion Opportunities Category Estimated Market Size Approximate Market Share Market Trend Blind Bolts (Threaded & Pull Type) $200 million 32% Temporary Clamps $12 million 40% Aerospace Screws $450 million 4% Collars $180 million <2% Honeycomb Pins $5 million 75% Position in the Market
Slide 56: Martinic Engineering Acquisition
Martinic Engineering Acquisition 56 • Located 15 miles from Monogram • Acquired January 2013 – approximate annual revenue of $13 million at time of acquisition • Manufacturer of highly‐engineered, precision machined, complex parts for commercial and military aerospace applications • Well‐positioned
Slide 57: Mac Fasteners Acquisition
• Located in Ottawa, Kansas • Acquired October 2013 – approximate annual revenue of $18 million at time of acquisition • Manufacturer of aerospace fasteners, globally utilized by OEMs, aftermarket repair companies, and commercial and military aircraft producers 57 Focus on lead time reduction will d
Slide 58: Summary
Summary 58 Our mission is to develop and manufacture complex, highly profitable aerospace components with world‐class service. • Increased content on composite aircraft • Best‐in‐class service • Preferred supplier relationships • Innovation of new products and processes • Opportunities for geographi
Slide 59: Q & A Packaging, Energy and Aerospace
Q & A Packaging, Energy and Aerospace
Slide 60: Break
Break
Slide 61: Cequent Introduction
Cequent Introduction Dave Wathen, TriMas President & CEO
Slide 62: Cequent Overview
Cequent Americas Net Sales Cequent Overview • Broadest product portfolio in the market • Global reach to support global customers – with local presence • Market leading brands • History of long‐term customer relationships • Expertise in serving the majority of channels • Opportunities for margin exp
Slide 63: Cequent Global Footprint
Cequent Global Footprint Global reach to support global customers – with local presence. 63 Channels OEM/OES Aftermarket/Installers Retail
Slide 64: OEM & OES Discussion
OEM & OES Discussion Carl Bizon, Cequent APEA President
Slide 65: OEM versus OES – What's the Difference?
OEM versus OES – What's the Difference? • Component parts used on the assembly line to build the car • Generally the car manufacturer’s design and engineering • Typically high volume and low margin • Proximity to the assembly plant is usually essential • Parts used to accessorize the car after manuf
Slide 66: Serving Majority of Customers
Serving Majority of Customers through 66 • Global relationships with 60+ automotive brands • Established track record with major brands • Products from Thailand facility reach more than 180 regional markets
Slide 67: Global Product Set
Global Product Set 67 Broad product offering; growth delivered from adjacent products.
Slide 68: Major Market Characteristics
Major Market Characteristics North American Market • Annual vehicle sales circa 16 million units • Towing vehicles are predominately large pickups and SUVs; trailer hitches integrated into vehicle chassis • Minimal tubular usage South American Market • Annual vehicle sales circa 7 million units • To
Slide 69: Major Market Characteristics
Major Market Characteristics European Market • Annual vehicle sales circa 11 million units • Towing more common on passenger vehicles • Cargo management very popular, due to smaller vehicle sizes • Tubular products popular African Market • Annual vehicle sales circa 2 million units • Towing very com
Slide 70: Major Market Characteristics
Major Market Characteristics Chinese Market • Annual vehicle sales circa 19 million units • Vehicle accessories demand in its infancy • Demand expected to increase over the next decade South East Asian Market • Annual vehicle sales circa 4 million units • Towing popular in Australia and New Zealand
Slide 71: Driving Growth from our Value Proposition
Driving Growth from our Value Proposition • We are unique in our ability to provide global customers with a single development and supply option – engineering and development they trust • Our “in market” development and engineering provide locally acceptable towing solutions • Local supply is highly
Slide 72: Global Variants of a Common Design
Global Variants of a Common Design Global Design Common Structural Member End Market Interface 72 One core design; globally adaptable with local manufacture and supply. North America, Australia and New Zealand Europe South Africa
Slide 73: Engineering and Design
Engineering and Design 73 Unique and technologically advanced full service engineering and design.
Slide 74: Vehicle Technology
Vehicle Technology • Access to the latest motor vehicle technologies and the integration pathway for intelligent accessories – participating in the evolution • Relationships with the OEs ensure we are at the cutting edge of thinking and the evolution of product integration • Trailer sway detection •
Slide 75: Key Messages
Key Messages • We add value – not the low margin/low return business many companies face in dealing with this customer base • Only one that can provide customers with global product set • Follow and support our global OE customers around the world ‐ almost every global brand in the market • Signific
Slide 76: Aftermarket/Installer Discussion
Aftermarket/Installer Discussion Tom Benson, Cequent Performance Products President
Slide 77: CEQUENT Brands By Region
CEQUENT Brands By Region Global Aftermarket 77
Slide 78: Global Distribution
• Financial Capability • Broad Portfolio • Marketing Support • Training • Predictable Product Availability • New Product & Applications • Pricing Logic • Brand Reputation Pelligrino Global Distribution 78
Slide 79: Global Installers/Dealers
• Same or Next Day Service • Broad Portfolio • Training & Education • Marketing Support • New Product & Applications • Speed to Market • Brand Power TRUCK PLAZA Cia LTDA AQUASPORTS SAC Aramis TRUCK DEXTRUS MELRICK AUTO CENTRES Global Installers/Dealers 79
Slide 80: Global Innovation
PRODUCT • Supplying products to match vehicle technology advances MARKET DEVELOPMENT • Utilizing best practices and global experience to create products that cater to applicable markets • Designing, creating and bundling worldwide product availability from a single source BUSINESS PROCESS • Collabor
Slide 81: We Have A World To Tow
We Have A World To Tow Global Reach With Local Feel Our Message 81
Slide 82: Retail Discussion
Retail Discussion John Aleva, Cequent Consumer Products President
Slide 83: Key Retail Customers by Channel
Key Retail Customers by Channel 83 Automotive Retail Mass Merchant Home Center Hardware Farm & Agricultural Cequent has the largest North American retail market share. Internet • Servicing both pure‐play and brick and mortar retailers
Slide 84: Our Retail Value Proposition
Our Retail Value Proposition • Significant breadth of products to serve large retailers • Brand leverage across channels • Innovative new products with IP protection • Speed to market • Merchandising expertise • Omni‐channel retailing 84 Cequent is uniquely positioned to serve retail customers and c
Slide 85: Broad Product Offering
Broad Product Offering • Towing Hitches • Towing Accessories – ball mounts, hitch balls, trailer locks and other accessories • Trailer Accessories – jacks, couplers and winches • Trailer Brake Controllers, Lighting & Wiring • Loading Ramps • Cargo Securing – bungees, tie downs, tow straps, cargo net
Slide 86: Retail Brand Leverage
Retail Brand Leverage Case in Point 86 Cequent has market leading brands consumers know and want. • Cause Marketing generating good will and brand awareness
Slide 87: Innovative New Products, Packaging and Speed to Market
Innovative New Products, Packaging and Speed to Market 87 Cequent’s speed to market with new products and packaging is a competitive advantage.
Slide 88: Merchandising Expertise
Merchandising Expertise 88 Cequent partners with leading retailers to merchandise products to drive sales.
Slide 89: Omni-Channel Retailing and Selling
Omni‐Channel Retailing and Selling 89 • Shoppers now expect the same experience on their devices across multiple shopping channels (such as Website and Facebook) • Leveraging our brands with the tools, content and structure for omni‐channel synchronized shopping including selling direct Cequent diff
Slide 90: Marketing Initiatives
Marketing Initiatives Video Cequent is moving from a specialty products business to a more traditional consumer products business. 90
Slide 91: Marketing Initiatives
Marketing Initiatives Video 91 Cequent is moving from a specialty products business to a more traditional consumer products business.
Slide 92: Operational Excellence
Operational Excellence • State‐of‐the‐art North American order fulfillment center: • Voice pick, Transportation Management System and parcel fulfillment center with box‐on‐demand • 98% fill rates and on‐time deliveries expected • Lean practices for continuous productivity improvement • Global supply
Slide 93: Key Initiatives
Key Initiatives • Launch new products (20% revenue replacement every year) and leverage globally • Drive omni‐channel marketing and brand initiatives • Continue to leverage retail expertise across all Cequent geographies and business units • Leverage global retailers to gain access and placement in
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Slide 95: Cequent Breakouts
Cequent Breakouts Group 1 ‐ Performance Demonstration Tom Romero, Director of Sales & Technical Training Performance is central to our products’ value in the market. This brief opportunity to experience Cequent products in a live towing environment will help demonstrate why Cequent and its brands ho
Slide 96: Cequent Q & A
Cequent Q & A
Slide 97: Lunch Break
Lunch Break
Slide 98: Norris Cylinder
Norris Cylinder Jerry Van Auken, President
Slide 99: Norris Cylinder Recent History
Recent History 99 • 5 year sales CAGR of more than 20% • Operating profit margins improved more than 800 basis points over the period • Expanded product portfolio and export sales through product development and acquisitions • Acquired Taylor Wharton assets in June 2010 and Worthington cylinder asse
Slide 100: Key Initiatives
Key Initiatives • Continue to deploy acquired Worthington assets in Huntsville and Longview • Addresses equipment needed for specific customer special designs or approvals acquired from Worthington • Increases capacity and flexibility of acetylene and small high pressure resale cylinders • Evaluate
Slide 101: Arrow
Arrow Len Turner, President
Slide 102: Arrow Recent History
Recent History 102 • History of revenue growth fueled by new products and applications • 2012 and 2013 sales and margins impacted by end market slow down in drilling activity • Rapid expansion of well‐site content – expanded from core products of engines and parts to include compressors, gas product
Slide 103: Key Initiatives
Key Initiatives • Build upon broad range of quality products (one‐stop shop) to grow top‐line • Focus on additional highly‐engineered products • Continued expansion of electronics, higher horsepower engines and pumpjack parts • Pursue new international markets • Continue low cost sourcing efforts •
Slide 104: Bob Zalupski, VP of Finance, Corporate Development and Treasurer
Bob Zalupski VP of Finance, Corporate Development and Treasurer
Slide 105: Acquisitions
Acquisitions 105 2010 • Completed 2 transactions in the U.S. • Invested $31M 2011 • Completed 3 transactions • Located in 3 different countries • Invested $31M 2012 • Completed 7 transactions • Located in 3 different countries • Invested $90M 2013 • Completed 10 transactions • Located in 6 different
Slide 106: Tom Aepelbacher, VP of Global Services Organization
Tom Aepelbacher VP of Global Services Organization
Slide 107: Evolution of Global Services
Evolution of Global Services 107 2010 •Global Sourcing Organization formation •Low cost country sourcing •Aggregate spend •Back office sourcing (LCC) •Working capital reductions 2011 •Emerging markets (BRICS) •New low cost countries (Sri Lanka, Vietnam) •Functional summits launched •National contrac
Slide 108: Q&A
CORPORATION Q&A
Slide 109: TriMas Summary
TriMas Summary Mark Zeffiro, EVP and CFO, TriMas
Slide 110: Sales
Sales • Solid end market growth opportunities augmented by more than 125 growth projects across all of the businesses • Supplement organic growth with bolt‐on acquisitions • Pursue faster growing markets in Packaging • Scale to support increasing aircraft build rates and expanding content in Aerospa
Slide 111: Growth in Emerging Markets
Growth in Emerging Markets 111 Investing in faster growing markets. 3% 4% 4% 6% 7% 2009 2010 2011 2012 2013 Percent of Net Sales in Emerging Markets(1) • Balance emerging market growth with risk • Follow global Packaging customers into Asia and South America • Optimize Energy’s newer branches in Sou
Slide 112: Operating Profit Margins
Operating Profit Margins • Margin expansion through productivity, business mix and operating leverage • Elevate acquisitions to core business margins via productivity, consolidations and synergies • Optimize Lamons’ footprint • Expand Cequent margins as a result of recent footprint moves and ongoing
Slide 113: Working Capital as a Percentage of Sales
Working Capital as a Percentage of Sales • Working capital increased as we support customers in new geographies, launch new products and acquire businesses • Sales Inventory Operating Plan (SIOP) program rolling across company • Opportunities for increased inventory turns in several businesses • Ceq
Slide 114: Return on Invested Capital
Return on Invested Capital • Income growth supported by LT revenue prospects • Manage acquisitions’ short‐term versus long‐ term effects • Margin expansion, EPS growth and being more tax effective will drive higher returns • More efficient balance sheet (capital expenditures and working capital) (1)
Slide 115: Total Shareholder Return
Total Shareholder Return 115 We believe these management philosophies and objectives will continue shareholder value creation. Peer group includes Actuant Corporation, Carlisle Companies Inc., Crane Co., Dover Corporation, IDEX Corporation, Illinois Tool Works, Inc., SPX Corporation, Teleflex, Inc.
Slide 116: Q&A
CORPORATION Q&A
Slide 117: Closing Remarks
Closing Remarks Dave Wathen, TriMas President & CEO
Slide 118: TriMas Value Proposition
TriMas Value Proposition 118 Clear goals, high‐performance teams and streamlined processes drive enhanced results. STAB I L I T Y • Consumer • Industrial • Agricultural • Aerospace • Energy • Geographic diversity • Customer diversity BALANCED PORTFOLIO MARG IN EXPANS ION FUNDS GROWTH • Rationalizati
Slide 119: Appendix
Appendix
Slide 120: Segment Information
Segment Information 120 2013 2012 2011 2010 2009 Packaging Net sales 313,220$ 275,160$ 185,240$ 171,170$ 145,060$ Operating profit 83,770$ 57,550$ 48,060$ 48,710$ 33,050$ Special Items to consider in evaluating operating profit: - Severance and business restructuring costs (7,910)$ -$ -$ -$ 590$ Exc
Slide 121: Segment Information (cont.)
Segment Information (cont.) 121 Cequent North America Net sales 437,280$ 400,400$ 383,710$ 339,270$ 309,020$ Operating profit (loss) 8,850$ 27,420$ 32,730$ 27,840$ (3,160)$ Special Items to consider in evaluating operating profit (loss): - Severance and business restructuring costs 25,570$ 7,530$ 52