Trimas Corporation · NASDAQ:TRS
Trimas — Investor Day (November 2012)
42 slides from Trimas's investor day presentation, Nov 7, 2012
Slide 1: TriMas Investor & Analyst Day at Lamons
TriMas Investor & Analyst Day at Lamons Houston, Texas November 7, 2012 NASDAQ • TRS
Slide 2: 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 3: Opening Remarks
Opening Remarks Dave Wathen, TriMas President and CEO
Slide 4: Common Attributes Across Businesses
Common Attributes Across Businesses • Focused markets with leading market positions • Strong brand names • Well-established customer relationships • Proprietary, highly-engineered products • Common operating processes • Opportunities for growth and productivity • Strong cash flow generation Cequent
Slide 5: Strategic Aspirations
Strategic Aspirations 5 • Generate high single-digit top-line growth • Invest in growing end markets through new products, global expansion and acquisitions • Drive 3% to 5% total gross cost productivity gains annually – utilize savings to fund growth • Grow earnings faster than revenue growth • Con
Slide 6: Lamons Introduction
Lamons Introduction • Strong management team • Long-term customer relationships • Proven local business model • Growing global footprint • Opportunities for growth and margin expansion 6 Strategic growth platform for TriMas.
Slide 7: Lamons
Lamons Kurt Allen, President
Slide 8: Lamons Team Introductions
Lamons Team Introductions Brad Hubbard Division Finance Officer Anthony Startz Director Human Resources Kris Kolb Vice President Sales & Marketing Hank Gund Vice President Manufacturing & Engineering 8 Kurt Allen President Dave Wiebe Vice President Purchasing & IT
Slide 9: Lamons History
Lamons History 9 1990 LA Hose 1988 Power Engineering 1987 Canadian Gasket 2005 Hangzhou (China) 2002 Joliet (IL) 1998 Freeport (TX) * = Estimate Revenue 1997 Beaumont Bolt 1986 King of Prussia (PA) 2008 Zhangjagang (China) 2011 Edmonton (Canada), Midland (MI), Minneapolis (MN), Tarragona (Spain), X-
Slide 10: Product Overview
Product Overview 10 Most significant product growth has been in the bolt category. Bolts 2011 Product Mix Other Heat Exchanger Spiral Wound Gaskets Soft Gaskets Ring Type Joint Kammpro Per management estimates Significant variety of gaskets and bolts – can vary by size, shape and material
Slide 11: Product Overview
Product Overview 11 2011 Product Mix Based on Volume 2011 Delivery Time Mix Based on Volume Standard Special Routine Rush Ability to charge for speed. Per management estimates
Slide 12: Major Customers and Markets
12 Major Customers and Markets Key Customers Major Markets Upstream/ Midstream OEM/ Power/ Steel Petrochemical Refining Long-term relationships and global contracts with key customers create opportunities around the world. Engineering & Construction Per management estimates
Slide 13: Market Overview
Market Overview 13 Significant opportunities to increase market share over the next several years. • Global industrial gasket and bolt market is approximately $1.2 billion • Lamons’ global market share is approximately 15% for gaskets and 10% for bolts • Lamons' market share in North America is esti
Slide 14: Global Competitors
Global Competitors • Garlock – one of the global market leaders in sheet gaskets with a global distribution network • – predominantly supplies gaskets through distribution but recently added own locations and bolts • – gasket market leader in Europe with their own locations • – predominantly a bolt
Slide 15: Unique Position in the Marketplace
Unique Position in the Marketplace • Broad product portfolio • Gaskets and bolts • Standards and specials • Manufacturing and distribution • Hub and spoke model • Accepted on customers’ global approval lists 15 Proven model – expanding globally.
Slide 16: Lamons Opportunities
Lamons Opportunities
Slide 17: Lamons Opportunities
Lamons Opportunities • Global expansion • Engineered and specialty products • Margin expansion and productivity 17 Continued geographic and product expansion will generate future growth.
Slide 18: Global Expansion
Global Expansion
Slide 19: Branch Expansion to Better Serve Global Customers
Branch Expansion to Better Serve Global Customers 19 New locations since 2009: • Midland, Michigan • Minneapolis, Minnesota • Edmonton, Canada • Houston, Texas (second location) • Faridabad, India • Grimsby, United Kingdom • Singapore • Tarragona, Spain • São Paulo, Brazil • Denver, Colorado Lamons
Slide 20: North America Branch Expansion Map
20 KEY Exxon Chevron BP Shell Phillips 66 Tesoro LyondellBasell Dow Beaumont Bellingham Ft. Erie Sarnia Freeport Salt Lake Boothwyn Joliet Martinez New Orleans Baton Rouge Lake Charles Houston = Lamons Branch Expansion Edmonton St. Paul Denver 20 Midland
Slide 21: Inside a Lamons Branch
Inside a Lamons Branch 21 Full service branches close to customers provide a competitive advantage – not a significant dollar investment.
Slide 22: Global Expansion: Europe
United Kingdom 22 France Italy Spain Germany Bel Czech Republic Belarus Ukraine Poland Norway Sweden Finland Ireland Croatia Albania Switz Austria Hungary Slovakia Romania Lithuania Latvia Estonia Portugal Greece Turkey Bulgaria KEY Exxon Chevron BP Shell Phillips 66 LyondellBasell Dow Valero Rotter
Slide 23: Global Expansion: Asia
Hangzhou Global Expansion KEY Exxon Chevron BP Shell Dow Phillips 66 = Lamons Zhangjiagang Singapore Faridabad 23
Slide 24: Global Expansion: South America
Global Expansion KEY Petrobras Braskem Dow = Lamons 24 São Paulo
Slide 25: Global Expansion: Why Brazil?
Global Expansion: Why Brazil? • Current market estimate: • Gaskets: $75 million • Bolts: $80 million • Petrobras plans to spend approximately $225 billion between 2011 and 2015; 57% in exploration and production • 50 new drilling rigs and 50 FPSO to be built between 2011 and 2020 • 400,000 barrels p
Slide 26: Petrobras Current and Future Refineries
KEY Petrobras: Current Refineries Braskem Dow Global Expansion = Lamons 26 Future Refineries São Paulo
Slide 27: Why CIFAL?
Why CIFAL? 27 • São Paulo manufacturer and supplier of specialty fasteners and stud bolts for the oil and gas industry with CRCC approval (Petrobras) • Establishes energy footprint in Brazil • Fastener “hub” similar to South Texas Bolt & Fitting – will broaden fastener capability • Add gasket manufa
Slide 28: Brazil Next Steps
Brazil Next Steps • Seek local approval of current North American customers (Dow, Braskem, National Oilwell Varco, FMC, Cooper Cameron, General Electric) • Upgrade bolt equipment at CIFAL, and install equipment and train for gaskets • Improve shop floor layouts to increase productivity • Utilize Lam
Slide 29: Engineered and Specialty Products
Engineered and Specialty Products
Slide 30: WRI-LP Gaskets
WRI-LP Gaskets 30 This product generates significant revenue and margin during turnarounds at HF plants around the world. • Maintain market position as provider of ultimate HF Acid gasket solution • Listed on many major specifications as the preferred gasket for users such as Exxon, Valero, Conoco a
Slide 31: Inhibitor Gaskets
Inhibitor Gaskets • Developed and launched in 2011 • Experienced significant success in the offshore market particularly in the North Sea • Designed to prevent corrosion in offshore platform flanges due to presence of chlorides • Potential to grow into other offshore markets based on successes and s
Slide 32: IsoTek Gaskets
IsoTek Gaskets™ Engineered sealing solutions for flanged pipe connections used in the water/wastewater, oil and gas industries IsoMate • Economical solution for basic performance IsoGuard • Optimizes each seal's elastic memory, in conjunction with a proven rectangular sealing element • Guarantees lo
Slide 33: Intelligent Bolts
Intelligent Bolts • Load indicating fasteners have gained a significant following in our industry in 2012 • Much more reliable and simple than ultrasonic measurement systems • Only technology to provide accurate feedback after service history 33 Exxon Baton Rouge has purchased more than $200K for pr
Slide 34: CorruKamm
CorruKamm™ • Revolutionary new gasket technology specific to Lamons • Tremendous deflection and recovery • Completely patented and protected 34 Launched in the third quarter of 2012, initial industry response has been very favorable.
Slide 35: Specialty Bolts
Specialty Bolts • Increase specialty bolt volumes and market share • Continue to leverage acquisition of South Texas Bolt & Fitting • Further product expansion in North America • Expand specialty bolt offering to gain market share in Brazil (CIFAL) 35 Specialty bolts have higher margins than standar
Slide 36: South Texas Bolt & Fitting Acquisition Update
South Texas Bolt & Fitting Acquisition Update
Slide 37: South Texas Bolt & Fitting Acquisition Update
South Texas Bolt & Fitting Acquisition Update • $14 million in revenue when acquired • Sales growth of 100% in year one; approximately 30% in year two • System integration within three months of acquisition • All Lamons locations switched immediately from other vendors to STBF • Added 8 CNC machines
Slide 38: Margin Expansion and Productivity
Margin Expansion and Productivity
Slide 39: Opportunities for Margin Expansion & Productivity
Opportunities for Margin Expansion & Productivity • Specialty products have higher margins • Margins should expand when build out of global branches complete • Locations increase profits as they mature • Significant productivity opportunities 39
Slide 40: Additional Productivity Opportunities
Additional Productivity Opportunities 40 Material • New computer optimization program for sheet utilization • Leverage TriMas’ Global Sourcing Organization in China, India, Brazil and Vietnam • Continual quote and sampling process for new supplier development • Shifting SKUs between India and China
Slide 41: Summary of Opportunities
Summary of Opportunities • Experts at manufacturing and distributing specialty gaskets and bolts • Local manufacturing and quick delivery model provides competitive advantage • Replicate U.S. branch strategy to serve major customers globally • Product expansion underway • Pursue bolt-on acquisitions
Slide 42: Questions & Answers
Questions & Answers