Core Molding Technologies Inc · AMEX:CMT
Core Molding Technologies — Investor Presentation (August 2021)
28 slides from Core Molding Technologies's investor presentation, August 2021
Slide 1: Investor Presentation
CORE MOLDING TECHNOLOGIES INVESTOR ee PRESENTATION
Slide 2: Forward Looking Statements
CORE MOLDING TECHNOLOGIES Forward Looking Statements This presentation, our remarks, and answers to questions contains forward-looking statements within the meaning of the federal securities laws. As a general matter, forward-looking statements are those focused upon future plans, objectives or perf
Slide 3: Company Overview
Company Overview Core Molding Technologies is a custom manufacturer of composites and highly- specialized plastic products for diverse industries Headquarters Employees COLUMBUS OHIO 1,600 Founded in NYSE 1980 Incorporated in 1996 CMT 2020 Net Sales $222 3 MILLION 3
Slide 4: Composite Industry Growth
Composite Industry Growth CAGR = 7.7% Carbon Fiber Glass Fiber Other Transportation Aerospace & Defense Wind Energy Electrical & Electronics Construction Pipes & Tanks Marine Composite industry growing at 7.7% per year across multiple markets provides the Company with significant growth opportunitie
Slide 5: Leverage Our Existing Strengths to Grow the Business
Leverage Our Existing Strengths to Grow the Business • Over 40 years of experience in structural plastics manufacturing • Design for manufacturing and tailored material expertise EXPERIENCE • Twenty years of experience operating in Mexico • Over 75% of revenues from long term customers (more than 10
Slide 6: Wide Range of Complex Products
Wide Range of Complex Products Market Applications Why They Choose Core Building Products Durability Cost savings Lattice, Decking, Cabinets Material substitution Strength to weight ratio Powersports Part consolidation Personal Watercraft, ATV, Corrosion resistance On-board Vehicles In-mold color Cl
Slide 7: Core Process and Material Offering
Core Process and Material Offering Thermoset (TS) Thermoplastic (TP) Sheet Molding Compound (SMC) Direct Long-Fiber Thermoplastic (DLFT) Largest portfolio of processes and materials Compression Molded Compression Molded Press Size: 250 – 4,500 Tons Press Size: 500 – 5,500 Tons Class A Surface Non-Cl
Slide 8: Core Molding Value Proposition in Action
Core Molding Value Proposition in Action CORE Value Proposition Customer Benefit Applications Concrete Structural Foam • Lower Total Cost Conversion Expertise • Light-weighting • Improved performance Integrated Material • Unique solutions – Designed from Development and material formulation to final
Slide 9: Culture is one of our Competitive Advantages
CULTURE is one of our Competitive Advantages Companies that effectively manage their culture deliver 20% higher returns to shareholders relative to comparable companies over a five-year period. Learning Organization Courage to Challenge Mutual Respect Transparency “Winners Win” 9
Slide 10: Serving a Diverse Industry Base of Customers
Serving a Diverse Industry Base of Customers Revenue Mix By Industry (1) 100% 4% 5% 12% Diverse industry base provides business stability 5% 75% 19% Industry diversification provides opportunity to sell entire line of processes and materials 22% 50% 91% Decreased truck concentration from 91% to 43%
Slide 11: Diversified Customer Base
Diversified Customer Base No customer makes up more than 18% of the Company’s business 9% 11% 7% 3% Customers are sole source on programs providing predictable revenue streams 13% Blue chip customer base with long-term 24% All Other relationships Customers 15% Customers in multiple industries with w
Slide 12: Strategic Manufacturing Footprint
Cincinnati (1) Strategic Manufacturing Footprint Winona Monterrey 5.0% 5.0% Cobourg 5.0% 30.0% Gaffney 9.0% 2020 Sales Revenue (by facility) 22.0% Columbus 24.0% Matamoros (1) Cincinnati scheduled to close December 31, 2021 Floor Space Square Feet (in 000's) 478 338 Columbus, OH Gaffney, SC Winona,
Slide 13: Strategic Direction
CORE MOLDING TECHNOLOGIES STRATEGIC DIRECTION
Slide 14: Long-term Strategy
Long-term Strategy Technical Industry Solution Sales Diversification Technical Growth in industries that value Utilize conversion expertise to create Industry conversions / solutions Solution Sales unique solutions Diversification Stability to business systems and profit Integrated partner with cust
Slide 15: Strategic Investments
Strategic Investments Speed to Market Research & Development Additive compression molds Material functionality and performance Design simulation and testing Strategic Ultra light Class A materials Robust launch processes Investments Material and process integration Sales Force Transformation Core Bu
Slide 16: Long Term Business Plan Goals
Long Term Business Plan Goals Business Goals 2020 Future Revenue - Grow Revenue: • Increased Sales in Current and Targeted Industries Revenues Revenues • Strategic Acquisitions $222 million $500 million Profitability - Increase Operating Income: • Operational Improvements Operating Operating • Highe
Slide 17: Acquisition Strategy
Acquisition Strategy Acquisitions anticipated to support strategic goals and accelerate growth: • Reduce customer concentration; further diversify industries • Enhance technological capabilities • Create operating synergies and portfolio extensions Past acquisitions have transformed the Company and
Slide 18: Financial Information
FINANCIAL INFORMATION
Slide 19: Operational Performance
Operational Performance Company undertook an operational turnaround in 2019: • Replaced operational management team • Implemented new operational systems and processes • Increased repair and maintenance spending to improve asset reliability Net Sales (in millions) Operating Income (Loss) (in million
Slide 20: Operational Turnaround – Get the Basics Right
Operational Turnaround – Get the Basic Right CMT 5yr Plan Goals Execution Plan Creating the Safety First program implemented (Equipment & People) CMT Annual Strategies RED THREAD Company wide Standard Daily Operating System (DOS) Policy Deployment Organizational improvement & development plan / Indi
Slide 21: Operational Transformation
Operational Transformation Core Completed an Operational Turnaround in 2019 which Returned the Company to Profitability in 2020 Gross Margin Turnaround - Only two years with negative net 20.0% 18.2% income over past 20 years 16.4% 17.2% 17.3% 15.9% 16.0% 15.2% 15.5% 15.0% 10.1% 10.0% 7.6% 5.0% 0.0%
Slide 22: Capital Expenditures
Capital Expenditures $12.0 5.0% Sustaining Capital (in millions) $10.0 4.0% $8.0 3.0% $6.0 2.0% $4.0 $2.0 1.0% $- 0.0% 2017 2018 2019 2020 2021 Projected Sustaining % of Product Sales Sustaining Capital Expenditures Growth Capital • Increased sustaining capital expenditures improving asset reliabili
Slide 23: Capitalization
Capitalization Completed Refinancing Senior Credit Facility in October 2020: Term Notes Wells Fargo Term Notes $15.2 million Libor + 300bps As of June 30, 2021 FGI (net of $1.2mm deposit) $11.8 million Fixed 8.25% Total Commitment $25.0 million Libor + 175 to 225 bps ABL Credit Facility Available $2
Slide 24: Why Core Molding Technologies
SUMMARY Why Core Molding Technologies • Composite industry growing faster than the • Investment in sustaining capex improving overall economy asset reliability • Over 40 years of experience in manufacturing • Long-term relations with large blue-chip large structural composite parts entities • Succes
Slide 25: Contact
Contact Corporate Offices: Core Molding Technologies, Inc. 800 Manor Park Drive Columbus, Ohio 43228 Company Representative: John Zimmer Chief Financial Officer 614.870.5604 jzimmer@coremt.com 25
Slide 26: Appendix
Appendix 26
Slide 27: Historical Financial Information
Historical Financial Information in 000's 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 Net Sales $ 162,450 $ 144,125 $ 175,204 $ 199,068 $ 174,882 $ 161,673 $ 269,485 $ 284,290 $ 222,356 $ 153,290 Gross Margin $ 25,848 $ 23,574 $ 30,186 $ 36,252 $ 27,906 $ 24,631 $ 27,141 $ 21,506 $ 34,474 $
Slide 28: Historical EBITDA
Historical EBITDA in 000's 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 Net Income $ 8,190 $ 6,866 $ 9,634 $ 12,050 $ 7,411 $ 5,459 $ (4,782) $ (15,223) $ 8,165 $ 7,542 Income Tax Expense (Benefit) $ 3,966 $ 3,034 $ 4,891 $ 6,118 $ 3,836 $ 2,286 $ (664) $ (355) $ (3,618) $ 2,894 Interest Exp
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