Matthews International Corporation · NASDAQ:MATW
Matthews International — Investor Presentation (February 2015)
28 slides from Matthews International's investor presentation, Feb 25, 2015
Slide 1: Matthews
Matthews 12/31/14
Slide 2: Business Overview
Matthews Business Overview Matthews
Slide 3: Disclaimer
Disclaimer Any forward-looking statements in connection with this discussion are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s a
Slide 4: Company overview
Founded in 1850 – headquartered in Pittsburgh, PA Three business segments: ◦ SGK Brand Solutions ◦ Memorialization ◦ Industrial Over 9,000 employees Over 25 countries NASDAQ – 32.9 million shares outstanding 4
Slide 5: Pro Forma Fiscal 2014
PRO FORMA FISCAL 2014 SGK Brand Solutions Memorialization SGK Brand Solutions 58% Industrial Memorialization 35% Industrial 7% 100% 5
Slide 6: SGK Brand Solutions
Matthews SGK BRAND SOLUTIONS Matthews
Slide 7: Brand development and deployment services
Brand Brand Brand Delivery Development Deployment Strategy/ Adaptive Merchandising Pre Media Tooling Creative CPG Printer Brandimage Anthem iDL Schawk Saueressig $50MM $50MM $100MM Matthews Matthews $350MM Schawk $300MM 7
Slide 8: SGK Brand Solutions offers a wide range of services
SGK Brand Solutions offers a wide range of services to the corrugated Printing plates for the packaging industry are one of and flexible packaging industries, including creative graphic design. segment’s product lines. Matthews produces gravure printing and embossing tools used in the packaging, wal
Slide 9: Crayola and Hasbro display examples
Matthews facilitated the execution of the new Crayola retail store in Easton, PA. Matthews was engaged by Hasbro to create a display for their FurReal Friends products line 9
Slide 10: Memorialization
Matthews MEMORIALIZATION Matthews
Slide 11: Memorialization products
Building signs are an example of the segment’s architectural product offerings. Matthews eVantage℠ is our new, best-in-class, web-based program for memorial design, product orders and order management. Matthews is well known for its heritage of creating beautiful, time-tested bronze memorials. Crema
Slide 12: Leading manufacturer of caskets in North America
The Company is a leading manufacturer and distributor of caskets in North America, producing a wide variety of wood , metal and cremation caskets. 12
Slide 13: Cremation systems and pet loss care
Bio-cremation is a water-based (versus flame-based) cremation process. The Power Pak II cremation system is one of the most popular cremation systems in North America. Faithful Forever Pet Loss Care is a program that allows clients access to the growing e-commerce market for their pet loss care need
Slide 14: Total deaths and cremation trend
4,000 3,500 Total Deaths * 3,000 2,500 2,000 Cremation 1,500 1,000 Non-Cremation 500 0 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 *Total anticipated deaths per US Census Bureau 2009 projections 14
Slide 15: Industrial
Matthews INDUSTRIAL Matthews
Slide 16: Industrial marking and conveyor control products
Non-contact ink-jet printing units apply print on products. Matthews continues to be one of the market leaders in automated conveyor controls. A control system provided by Pyramid Controls manages the sorting and conveyance of finished shipping cartons. Pick-to-Light systems use light indicators for
Slide 17: Financial Overview
Matthews FINANCIAL OVERVIEW Matthews
Slide 18: Growth strategy: internal growth, acquisitions, repurchases
Internal Growth ◦ Expand market presence of existing products ◦ New product development ◦ Manufacturing/cost structure improvements Acquisitions Share Repurchases 18
Slide 19: Acquisition objectives and financial criteria
Principal objective: Support the business plan of the operating segment and long-term growth objectives of the Company. Financial criteria: Immediately accretive to Earnings per Share. Achieve long-term target of an annual return on invested capital of 12%. 19
Slide 20: Sales, adjusted operating profit, EBITDA and EPS
(Dollars in thousands) Fiscal year ended September 30, Qtr. Ended December 31, 2012 2013 2014 2013 2014 Sales $900,317 $985,357 $1,106,597 $229,945 $343,584 Adjusted Operating Profit (a) $101,427 $109,887 $121,489 $17,496 $24,427 Adjusted EBITDA (b) $146,817 $160,423 $173,982 $29,540 $43,791 EPS - G
Slide 21: Sales and adjusted operating profit by segment
(Dollars in thousands) Fiscal year ended September 30, Qtr. Ended December 31, 2012 2013 2014 2013 2014 Sales: SGK Brand Solutions $332,829 $373,941 $497,328 $91,062 $200,834 Memorialization 492,867 517,911 508,420 117,360 116,223 Industrial 74,621 93,505 100,849 21,523 26,527 Consolidated $900,317
Slide 22: Fiscal 2014 adjusted free cash flow
(Dollars in thousands) Fiscal 2014 Adjusted Net Income $71,137 Depreciation and Amortization 42,864 Stock-Based Compensation 6,812 120,813 Capital Expenditures (29,237) Adjusted Free Cash Flow $91,576 Adjusted net income reflects adjustments to exclude net charges primarily related to acquisition- r
Slide 23: GAAP earnings per share 2005-2014
$3.00 $2.55 $2.46 $2.50 $2.31 $2.06 $2.04 $1.98 $1.98 $1.90 $2.00 $1.79 $1.53 $1.50 $1.00 $0.50 $0.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 23
Slide 24: Non-GAAP earnings per share 2005-2014
$3.00 $2.69 $2.74 $2.61 $2.59 $2.53 $2.43 $2.31 $2.37 $2.50 $2.12 $1.87 $2.00 $1.50 $1.00 $0.50 $0.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Non-GAAP earnings per share reflect adjustments to exclude net charges primarily related to acquisition-related costs, strategic initiatives and lit
Slide 25: Adjusted EBITDA 2005-2014
(Dollars in millions) $200.0 $174.0 $165.4 $160.4 $175.0 $157.2 $156.8 $160.9 $147.8 $146.8 $139.6 $150.0 $121.1 $125.0 $100.0 $75.0 $50.0 $25.0 $0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 25
Slide 26: Share price history
$60 $50.74 $48.67 $50 $43.80 $43.89 $38.08 $36.79 $40 $35.38 $35.36 $30.73 $29.82 $30 $20 $10 $0 9/30/06 9/30/07 9/30/08 9/30/09 9/30/10 9/30/11 9/30/12 9/30/13 9/30/14 12/31/14 26
Slide 27: Recent highlights and analyst coverage
Acquisition of Schawk, Inc. (SGK) on July 29, 2014 Increased quarterly dividend 18.2% to 13.0 cents (November 2014) ◦ 20th consecutive annual dividend increase since the IPO Reported record sales of $1.1 billion in fiscal 2014 Sales of $430 million (39% of total) generated outside the U.S. i
Slide 28: Top institutional shareholders
Shares 12/31/2014 Franklin Advisory Services, LLC 2,786,169 BlackRock Institutional Trust Company, N.A. 2,400,377 The Vanguard Group, Inc. 2,239,278 T. Rowe Price Associates, Inc. 1,838,390 Wellington Management Company, LLP 1,534,419 Dimensional Fund Advisors, L.P. 1,049,693 Channing Capital Manage
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