Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q1 2022 Earnings Presentation
22 slides from Commercial Vehicle's earnings presentation, May 5, 2022
Slide 1: Earnings Presentation Q1 2022
Earnings Presentation Q1 – 2022 May 5, 2022 Harold Bevis – President & Chief Executive Officer Chris Bohnert - Chief Financial Officer 1
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures These slides contain 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”, “co
Slide 3: Q1 2022 Highlights
Q1 2022 Highlights FINANCIAL HIGHLIGHTS BUSINESS HIGHLIGHTS AWARDED NEW BUSINESS AWARDS NET SALES ADJUSTED EBITDA 11 $89 additional hybrid and $244.4 $13.5 electric vehicle customers MILLION IN Q1 estimated annualized value. MILLION MILLION in the last two years. PRICE INCREASE agreements reached wi
Slide 4: Pricing, Inflation and Investments
Pricing, Inflation and Investments Pricing Inflation Investments for the Future • Completed negotiations on two large • At fastest pace in 40 years. • $3.1 million of new business startup legacy contracts. costs primarily related to electric • CVG is primarily impacted by steel, vehicles. • Resultin
Slide 5: North American Class 8 Truck Market
North American Class 8 Truck Market NA Class 8 Truck Build Outlook* (in thousands) 400 Annual 300 360 296 200 265 214 100 • Q1 22 class 8 truck build up sequentially vs Q4 21 but flat year over year. 0 2020 2021 2022 2023 • Global conversion to EV and Fuel Cell away from ICE is expected to 100 disru
Slide 6: Electrification and Technology Development
Electrification and Technology Development Electrification Electric Vehicle Systems • New Center for Engineering Innovation in • Custom designed high and low voltage Phoenix, AZ, set to open this summer. distribution boxes. • Customer segments: electric vehicles, • Engineered design of high and low
Slide 7: Unity – Next Generation Seating Platform
Unity – Next Generation Seating Platform • Unity seats are modular - improves cost management, quality, resources and investment optimization. • Unity seat production lines launched in China, Mexico and U.S. • Diversifying into EV market & start-ups as well as Asia & EU truck markets. • Aftermarket
Slide 8: New Business Startup Costs and Sales Ramp
New Business Startup Costs and Sales Ramp • CVG continuing to invest in new business as it prepares for growth in electric vehicles and other new business. • Won an additional $89 million of new business in Q1 adding to our existing wins; now totaling more than $500 million when fully ramped up. New
Slide 9: Secured > $2 Billion of Lifetime Revenue
Secured > $2 Billion of Lifetime Revenue • Strengthening the company’s revenue profile with new markets, customers and products. • Organic growth has exceeded expectations. New Business Wins 2,193 1,778 1,820 1,606 1,419 1,057 523 365 415 433 325 222 2020 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Annual Value L
Slide 10: 2022 Initiatives to Drive Shareholder Value
2022 Initiatives to Drive Shareholder Value Win New Business Vertical Integration Debt Paydown Core Business Optimization • Grow Earnings. • Decrease China supply • Pay down $25-40 million • Improve pricing strategy and chains. in debt. contractual agreements. • Improve revenue mix. • Increase value
Slide 11: 2025 Roadmap
2025 Roadmap Revenue (in millions) $1,900* Strengthen the company’s revenue profile $500 with accretive new business that increases the $1,400 company’s value proposition and decreases its legacy customer dependence. $972 2021 2025 Improve the company’s legacy business, renegotiate contracts, improv
Slide 12: Financial Review
Financial Review Q1 - 2022 May 5, 2022 12
Slide 13: First Quarter Results
First Quarter Results Three Months Three Months GAAP Measures Ended March 31 NON-GAAP Measures Ended March 31 (in millions except for share information) 2022 2021 (in millions except for share information) 2022 2021 Revenue $ 244.4 $ 245.1 Adjusted EBITDA $ 13.5 $ 21.1 Operating Income 8.4 15.4 Adju
Slide 14: Q&A
Q&A Q1 – 2022 May 5, 2022 14
Slide 15: Appendix
Appendix Q1 – 2022 May 5, 2022 15
Slide 16: Ukraine Update
Ukraine Update CVG responded quickly in Ukraine to support its team and customers. • L’viv plant is located on the far west of Ukraine and operating at near capacity. • Annually, Ukraine represents $50 million in revenue and $3 million in EBITDA. • As a safety net, CVG opened two new facilities in t
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures This earnings 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 corporat
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) Q1 2022 Q1 2021 Operating Income 8.4 15.4 Deferred Consideration Purchase Accounting 0.1 0.2 Restructuring 1.0 - Investigation - 0.2 Adjusted Operating Income 9.5 15.8 % of Revenues 3.9% 6.5% Net Income/(Loss) 4.0 8.5 Interest Expen
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures – Adjusted EBITDA
Reconciliation of GAAP to Non-GAAP Financial Measures – Adjusted EBITDA Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 (in millions) 2020 2020 2020 2021 2021 2021 2021 2022 Net income/(Loss) (12.5) 4.2 (4.1) 8.5 5.1 7.5 2.6 4.0 Interest 5.3 5.5 5.2 5.0 2.8 1.6 1.7 2.0 Provision / (Benefit) for Income Taxes (3.1) (1.0) 3.9
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS
Reconciliation of GAAP to Non-GAAP Financial Measures – Diluted EPS (in millions except for share information) Q1 2022 Q1 2021 Net income/(Loss) 4.0 8.5 Operating income (loss) adjustments 1.1 0.4 Hryvnia fair value adjustments on forward exchange contracts 0.6 - Adjusted (benefit) provision for inc
Slide 21: Segment GAAP to Non GAAP QTD
Segment GAAP to Non GAAP QTD For the Three Months Ended March 31,2022 Vehicle Warehouse Electrical Aftermarket & (in millions) Corporate Total Solutions Automation Systems Accessories Operating Income/(Loss) 6.3 3.7 1.8 2.6 (6.0) 8.4 Deferred consideration purchase accounting - 0.1 - - - 0.1 Restruc
Slide 22: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Cash Flow from Operations $ 10.1 $ 10.4 $ 3.6 $ (15.4) $ (9.4) $ 3.9 $ (8.9) $ (21.4) Capital Expenditures1 (1.0) (1.0) (1.0) (1.7) (5.2) (4.5) (6.2) (3.6) Free Cash
Commercial Vehicle Group — Q1 2022 Earnings Presentation on 6ix