Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Q3 2023 Earnings Presentation
20 slides from Commercial Vehicle's earnings presentation, Nov 2, 2023
Slide 1: Earnings Presentation
“VG Earnings Presentation \ihem es Robert Gtiffin— Chairmanjand Interim woe as Serre Officer Andy Cheung - ond ice ee nana! Officer = ke ak | \
Slide 2: Forward-looking statements
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”, “targets” “forecast” “continue”, “likely”, and similar express
Slide 3: Q3 2023 Highlights
Q3 2023 Highlights FINANCIAL HIGHLIGHTS % an NET SALES ADJUSTED EBITDA $247 $16.6 MILLION MILLION ég, < ADJUSTED ADJUSTED EPS OPERATING INCOME $0 22 $1 2.5 PER DILUTED SHARE MILLION Note: US GAAP net income was $7.3M for Q3 2023. GAAP diluted income per share was $0.22 for Q3 2023 CVG ~ BUSINESS HIG
Slide 4: Key CVG Markets Update
Key CVG Markets Update » 4 NA Class 8 Truck Build Electrical Systems - Wire Harnesses ACT Research and FTR are forecasting 2023 North 7 American Class 8 truck production levels to be CVG Revenue Profile + Global commercial and automotive vehicle wire between 327,000 and 336,000 trucks. The 2022 actu
Slide 5: New Business Wins Program is Transforming CVG
New Business Wins Program is Transforming CVG CVG ~75% of the 2023 new wins YTD are in the Electrical Systems Segment Electrical Systems All Other Aviation & Auton uronomous Aerospace Battery Bus & Van Class 8 Trucks CON/AG 2023 new wins profile ~$140M YTD * 50 different customers * 30+ are new cust
Slide 6: New Business Wins driving New Electrical Systems Plants
New Business Wins driving New Electrical Systems Plants CVG @ = New Electrical Systems Plant e = Existing Electrical Systems Plant + 2 new Electrical Systems plants ramping up in Mexico and Morocco * We are evaluating an expansion of our Moroccan footprint
Slide 7: Strategically Repositioning the Business
Strategically Repositioning the Business CVG Make Electrical Systems our largest business * Continue to win accretive new business, increase volumes and diversify our product portfolio + Increase the design and engineering value in our products * Strategically add new plant locations which provide c
Slide 8: Continuing to Deliver on our Strategy
Continuing to Deliver on our Strategy Win new business to transform our revenue profile + Diversify our customer base and product portfolio + Significantly grow the Electrical Systems business through new business wins, volume growth and market diversification + Approximately $140 million of new bus
Slide 9: Improve profitability or exit
Improve profitability or exit unprofitable and/or non-strategic business Control cost structure and manufacture in-house what we should Reallocate SG&A, fund and install digital backbone Secular growth in Electric Vehicle market globally Expand and diversify our customer roster Expand product line-u
Slide 10: Improved working capital and debt paydown
• • • • • • • • • Improved working capital position, driving free cash flow • Further debt paydown; much lower leverage ratio
Slide 11: Financial Review
M4 Financial Review November 2, 2023 11
Slide 12: Q3 2023 — Electric Systems Shows Strong Growth
Q3 2023 — Electric Systems Shows Strong Growth Three Months Three Months GAAP Measures Ended Sep 30 NON-GAAP Measures Jed Sep 30 ($ in millions except for share en information) 2023 = 2022 oie mine except for share 2023 2022 Revenue $246.7 $251.4 Adjusted EBITDA $16.6 $143 Operating Income 12.4 9.5
Slide 13: Quarterly trends Q3'22 to Q3'23
Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23
Slide 14: Appendix
Slide 15: 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 16: Operating Income and EBITDA reconciliation
Operating Income/(Loss) 12.4 9.5 Restructuring 01 07 Deferred consideration purchase accounting - 01 Executive transition - 0.3 Adjusted Operating Income 12.5 10.6 % of Revenues 5.1% 4.2% Net Income/(Loss) 7.3 3.6 Interest Expense 26 28 Provision (benefit) for income taxes 22 13 Depreciation Expense
Slide 17: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Me (in millions) Net income/(Loss) 2.6 4.0 25 3.6 (32.0) 8.7 10.1 7.3 Interest 17 2.0 24 2.8 2.9 2.9 2.8 26 Provision / (Benefit) for Income Taxes 1.9 14 0.9 13 7.4 3.3 27 2.2 Depreciation 3.8 3.5 3.7 37 3.7 3.4 3.5 3.6 Amortization 0.9 0.9 0.8 0.8 0.8 0.
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS
Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS CVG (in millions 0 Q3 2022 Net income/(Loss) 7.3 3.6 Operating income (loss) adjustments 0.1 1.0 Hryvnia fair value adjustments on forward exchange contracts - (0.1) Adjusted (benefit) provision for income taxes - (0.5) Pension sett
Slide 19: Segment GAAP to Non GAAP QTD
Segment GAAP to Non GAAP QTD For the Three Months Ended Sep 30, 202 (in millions) Operating Income/(Loss) Restructuring Adjusted Operating Income/(Loss) % of Revenue For the Three Months Ended (in millions) Operating Income/(Loss) Restructuring Deferred consideration purchase accounting Executive tr
Slide 20: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Cash Flow from Operations $ (214) $ 169 $ 383 $ 35.2 $01 $ 15 $ 185 Capital Expenditures! (3.6) (5.0) (3.9) (7.2) (3.3) (5.9) (6.0) Free Cash Flow (25.0) 11.9 34.4 28.0 (3.2
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