Eastern Company (the) · NASDAQ:EML
Eastern Company (the) — Investor Presentation (July 2023)
24 slides from Eastern Company (the)'s investor presentation, Jul 12, 2023
Slide 1: The Eastern Company Investor Presentation
The Eastern Company NASDAQ: EML Investor Presentation July 2023
Slide 2: Disclosures
Disclosures THE EASTERN Forward-Looking Statements ‘Statements in this document about our future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and the rul
Slide 3: Portfolio of Attractive Businesses
Portfolio of Attractive Business mania Global manufacturer and designer of access hardware systems, providing custom-engineered industrial, vehicular and specialty hardware to a wide variety of industries. EBERHARD Innovator in vision systems and components to truck, recreational and VELVAC specialt
Slide 4: Investment Highlights
Investment Hi EASTERN lights Well positioned to capitalize on industry trends to electrification, digitization and automation. New CEO and CFO implementing rapid financial and operational improvements. Executing four-pronged plan to restore consistent, sustainable profitability y @® v— and make valu
Slide 5: Eberhard: Industrial and Vehicular Hardware
EM Electronic Rotary Latch ying Vehicular Hardware |" Industry leader in hardware solutions for domestic commercial vehicle and vehicle accessory manufacturers. Strong recurring sales from participation in leading OEM programs. Highly engineered, value-added product offering, supported by one of ind
Slide 6: Demand for Electro-Mechanical Devices
ives Demand for Electro-Mechanical Devices — Eberhard End-to-End Electro-Mechanical Solutions Control a ce YG systems Bluetooth actuators 6 ile << 2 a latches a U.S. Industrial Internet Of Things Market size, by component, 2020 - 2030 (USD Billion) $77.68 rt an Py 0 a a 2022 2023 2024 2025 2026 2027
Slide 7: Velvac Vision Systems for Commercial Vehicles
Velvac Vision Systems for Commercial Vehicles " * Leader in commercial vehicle vision system design and production. * Strong recurring sales to very long-term commercial vehicle programs — average program life 10+ years. * Well positioned to continue to grow and consolidate vision system opportuniti
Slide 8: Vision-based Blind Spot Detection
Vision-based Blind Spot Detection em 6 * Camera-based object detection | a| 4 rable detection zone ‘= fi he detection up to 80” 2 |» indicator icon in the mirror or monitor Gee ary/exclusive algorithms Target Markets OL a) Motorhomes "a Cut-away vans <>!) Medium duty chassis a) Heavy duty trucks
Slide 9: Returnable Packaging
Returnable Packaging rasta * Industry leader in ~$1.0-1.5 billion market for custom Tier 1 component suppliers returnable packaging solutions for supply chain applications. Pol * Highly engineered, value-added, and turn-key product Component Custom offering, including design, metal fabrication, dunn
Slide 10: Large, Diverse Custom Returnable Packaging Market
Large, Diverse Custom Returnable Packaging Market Returnable Packaging Market - North America 100% = approximately $4 billion Custom engineered = approx. $1.045, billion Plastic pallets 15% Source: Returnable Packaging Association; Eastern estimates 2022 Primary End-Markets Automotive Commercial veh
Slide 11: New Leadership Team
New Leadership Team THE PASTERN COMPANY | Mark Hernandez Nick Vlahos Chief Executive Officer Vice President and and Board Member Chief Financial Officer * 30+ years of experience in commercial + 19 years of finance and business experience vehicle business + Previously VP of Finance, Treasurer and +
Slide 12: Pillars of Value-Creation Strategy
Pillars of Value-Creation Strategy Optimum Capital Utilization Commercial Business y for 2023: optimize operations, restore consistent profitability, and begin scaling the business.
Slide 13: Operational Transformation Plan Underway
Operational Transformation Plan Underway Ge] Effective Strong Capital Commercial Allocation and Utilization Business Focus * Ensuring COGS and + Instilling discipline in + Improving ROIC through + Acquire companies that can operating expenses meet working capital pricing actions and margin be absorb
Slide 14: Financial Performance - 1Q23 Improvements
EASTERN Financial Performance - 1Q23 Improvements Net sales from continuing operations up 5% Inventory Wertdng copteal YoY. $68 28% $64.6 26% Net cash provided by operating activities » 4 zy 26% improved $10.4 million YOY. Z $60 oe 24% 2% Inventory down 11% versus year-end 2022. $56 | ad im « $52 20
Slide 15: Long-Term Growth Opportunities
Long-Term Growth Opportunities PEREIRA connins Industry Trends. Eastern Capabilities Core Competencies Lightweight Solutions Sustainable Solutions Infrastructure Development Electromechanical Solutions Sustainability Precision Machining *+ Increased MPG ~ less weight and wind resistance + Lower Carb
Slide 16: Shareholder Value Creation
Shareholder Value Crea =a (@p % i Innovation- Strategic led organic acquisitions growth (bolt-on or stand- alone) 2023 performance priorities 16
Slide 17: Appendix
ppendix
Slide 18: Top Institutional Holders
nal Holders Sigua Institution EML Shares %S/0 1 Barington Companies Investors, LLC 630,100 10.1 2 GAMCO Asset Management, Inc. 541,450 8.7 3 Forager Capital Management, LLC 523,082 8.4 4 Minerva Advisors, LLC 409,176 6.6 5 Dimensional Fund Advisors, L.P. (U.S.) 406,924 6.5 6 Teton Advisors, Inc. 295
Slide 19: Streamlined Portfolio of Businesses
Streamlined Portfolio of Businesses | Nowinber November October May 2021 2022 m0 Sale of Sale OF 3038 Consolidation Greenwald ‘Argo EMS Closed of Eberhard Industries and Associated and iLc Frazer & Tool Makers, Ltd. Jones March November 2020 gore. Sale of Sale of Sesamee Canadian Mexicana Commercial
Slide 20: Statement of Operations
Statement of Operations TaFHARTHAN Cowra $in millions (except per share data) Three Months Ended ‘Year Ended April 1, 2023 April 2, 2022 December 31, 2022 Jamuary 1, 2022 ‘Net sales $ Rs Ss 0 $ 793 $ 2465 [Gross margin 155 146 586 568 Product development expense a4) a2) 42) ay Selling and administra
Slide 21: Balance Sheet
Balance Sheet $n miions Bank Covenant Metrics orreatAsets " cae hea ay ¢ sea Net Debt / Adjusted EBITDA | Accounts receivable, net 445 29) — 317 645) 3.0x [Ot cares aes 69 76| 25x “otal Current Assets Tr Tiss z 23x 6 ‘Property, Plant and Equipment, net 64 261 |coodmt ros roa Traders 33 33| Pees nd e
Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation THE EASTERN ‘Sin millions ‘Three Months Ended ‘Twelve Months Ended. April 1, 2023 April 2, 2022 December 31,2022, __January 1, 2022 ‘Net income from continuing operations $06 $27 sud $162 Interest expense 07 04 23 17 Provision for income taxes 02 09 34 28 ‘Depreciation
Slide 23: Adjusted Earnings Reconciliation
Adjusted Earnings Reconciliation THE EASTERN $ in millions (except eamings per share) ‘Three Months Ended. ‘Twelve Months Ended. Apeil 12023 Apeil 2. 2022 December 31,2022, __January 1, 2022 ‘Net income from continning operations $06 927 sua $162 | Diluted carnings per share from continuing operatio
Slide 24: The Eastern Company Corporate Office
‘The Eastern Company Corporate Office 3 Enterprise Drive, Suite 408 Shelton, CT Phone: (203) 729-2255 info@easterncompany.com