Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Colliers Institutional Investor Conference 2020
25 slides from Commercial Vehicle's conference presentation, Sep 10, 2020
Slide 1: Colliers Conference September 2020
SEPTEMBER 2020 COLLIERS CONFERENCE 09.10.2020
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains 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”, “continue”, “likely”, and sim
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS L E A D I N G S U P P L I E R O F E L E C T R I C A L W I R E H A R N E S S E S , S E AT I N G S Y S T E M S , ENGINEERE D PLASTIC COMPONE NTS, AND ELECTROMEC HA N ICAL ASSEMBL IES Pivoting the company for Leading supplier to Expanding into growth by optimizing the core sophist
Slide 4: Global Team Delivered During Abrupt Downturn
Q2 2 0 2 0 GLOBAL TEAM DELIVERED DURING ABRUPT DOW NTURN Generated >$1m of adjusted EBITDA and >$9m of cash → despite 48% decline in revenue 1 • $8 million of cost-outs in the quarter: combination of permanent and short-term actions including corporate overhead reductions, plant overhead reductions,
Slide 5: Comprehensive Set of Actions Taken
Q2 2 0 2 0 COMPREHENSIVE SET OF ACTIONS TAKEN Free cash flow of >$9m and maintained solid 2 liquidity of >$106M ACTIONS IN PROCESS • Comprehensive global set of actions: used opportunity of light demand to initiate consolidation and repurposing of multiple Consolidating and repurposing facilities, ~
Slide 6: Multi-Year Recovery Forecast for Commercial Vehicles
MULTI-YEAR RECOVERY FORECAST FOR COMMERCIAL VEHICLES 1 End markets forecast to recover to pre-COVID levels 2 Lowering the cost structure on traditional business, expect better margins 3 Expecting additional revenue from new business wins beginning in Q4 END MARKET OUTLOOKS N.A. HEAVY DUTY (CLASS 8)
Slide 7: Change Is Underway
CHANGE IS UNDERWAY POSITION IN G CVG FOR A NEW AND BETTER FUTURE LEADERSHIP INNOVATION NEW MARKETS Building a strong, new Kick-starting Adding market credibility leadership team with innovation & new and repurposing footprint robust experience product agendas and capabilities outside growing busines
Slide 8: Pivoting the Company
PIVOTING THE COMPANY 1 Optimizing financial performance of the core business 2 Adding people & growth outside of traditional commercial vehicle business 3 Building strong momentum with new business wins and new opportunities • E-commerce material handling equipment • Electric vehicles and last-mile
Slide 9: Strategic Reposition of Footprint
STRATEGIC REPOSITION OF FOOTPRINT I M P L E M E N T I N G A S E T O F D E C I S I V E S T R AT E G I C A C T I O N S T O R E S E T T H E C O M PA N Y ’ S F O O T P R I N T Adding Dedicated Moving to Consolidating Floor Space Expanded footprint, capacity, and Optimize Space Space product complexity t
Slide 10: Penetrate Fast-Growing Ecommerce, Last-Mile Delivery Market
PENETRATE FAST-GROW ING ECOMMERCE, LAST-MILE DELIVERY MARKET KEY HIGHLIGHTS First win with Unity™ seat Multi-year, multi-million Last-mile delivery market for global platform aimed at accretive win with a major e-commerce growing at penetration of medium duty electric vehicle (EV) 10%+ CAGR*, expect
Slide 11: Grow Warehouse Automation Business
GROW WAREHOUSE AUTOMATION BUSINESS This market is central to the company’s growth strategy Multi-year, multi-million accretive win Market expected to grow at 11.7% CAGR to $27 billion by 2025 Expanded product portfolio with a top global warehouse automation technology provider Footprint repurposing
Slide 12: Enhancing the Value of the Company
ENHANCING THE VALUE OF THE COMPANY N AV I G AT I N G N E A R - T E R M M A R K E T D I S R U P T I O N A N D I N C R E A S I N G I N V E S T M E N T I N L O N G - T E R M A D VA N C E M E N T S 12
Slide 13: Four Focus Areas for Increasing the Value of the Company
FOUR FOCUS AREAS FOR INCREASING THE VALUE OF THE COMPANY OPTIMIZE CORE BUSINESS WIN IN ELECTRIC VEHICLES • Leverage new unique global seating platform • EV market is growing with global delivery • Consolidate facilities companies • Improve ROI • Focused on last mile delivery vans and medium • Grow a
Slide 14: New Approach, Direction, and Decisions for Achieving Success
NEW APPROACH, DIRECTION, AND DECISIONS FOR ACHIEVING SUCCESS N E W L E A D E R S H I P, N E W D I R E C T I O N , N E W C U S T O M E R S , N E W P R O D U C T S , N E W M A R K E T S 14
Slide 15: Financial Update Q2 2020
FINANCIAL UPDATE Q2 2020 MMENG | READY.SET. LEAD
Slide 16: CVG Consolidated Financials
Q2 2 0 2 0 CVG CONSOLIDATED FINANCIALS $ MILLIONS, EXCEPT PER SHARE DATA Q2 2020 Q2 2019 $ Change Q2 2020 NOTES Revenue 126.9 243.2 (116.3) Gross Profit 6.5 32.4 (25.9) • Revenue down 48% compared Gross Margin 5.1% 13.3% to prior year due to COVID-19 impacts SGA 16.0 16.2 (0.2) Amortization 0.9 0.3
Slide 17: Electrical Systems Segment Results
Q2 2 0 2 0 ELECTRICAL SYSTEMS SEGMENT RESULTS $ MILLIONS Q2 2020 Q2 2019 $ Change Q2 2020 NOTES Revenue 74.2 141.9 (67.7) Gross Profit 1.1 17.8 (16.7) • Revenue down 48% compared Gross Margin 1.5% 12.5% to prior year due to covid impacts, offset partially by FSE SGA 6.6 3.7 2.9 • Used opportunity of
Slide 18: Global Seating Segment Results
Q2 2 0 2 0 GLOBAL SEATING SEGMENT RESULTS $ MILLIONS Q2 2020 Q2 2019 $ Change Q2 2020 NOTES Revenue 53.9 105.3 (51.4) Gross Profit 5.3 14.7 (9.4) • Revenue down 49% compared Gross Margin 9.9% 13.9% to prior year due to covid impacts SGA 3.7 5.2 (1.5) Amortization 0.1 0.1 (0.0) • Used opportunity of
Slide 19: Balance Sheet
Q2 2 0 2 0 BALANCE SHEET $ MILLIONS June 30, March 30, 2020 2020 Q2 2020 NOTES Cash 63.4 58.1 Accounts Receivable 102.8 123.3 • Cash and available liquidity at Inventories 70.7 84.5 June 30, 2020 was $106.6M Other Assets 164.1 165.3 • Reduced inventory by ~$14M in 2Q through a focused effort, Total
Slide 20: Supplemental Information
SUPPLEMENTAL INFORMATION 20
Slide 21: Use of Non-GAAP Financial Measures
Q2 2 0 2 0 USE OF 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 m
Slide 22: Reconciliation of GAAP to Non-GAAP Measures – Adjusted Operating Income and EBITDA
Q2 2 0 2 0 R E C O N C I L I AT I O N O F G A A P T O N O N - G A A P F I N A N C I A L M E A S U R E S – A D J U S T E D O P E R AT I N G I N C O M E A N D E B I T D A 22
Slide 23: Reconciliation of GAAP to Non-GAAP Measures – Adjusted EBITDA
Q2 2 0 2 0 R E C O N C I L I AT I O N O F G A A P T O N O N - G A A P F I N A N C I A L MEASURES – ADJUSTED EBITDA $ Millions For the three months ended Trailing twelve months ended March 31, June 30, September 30, December 31, March 31, June 30, June 30, June 30, 2019 2019 2019 2019 2020 2020 2020
Slide 24: Business Segment Financial Information
Q2 2 0 2 0 BUSINESS SEGMENT FINANCIAL INFORMATION 24
Slide 25: Free Cash Flow
Q2 2 0 2 0 FREE CASH FLOW For the three months ended FREE CASH FLOW* ($M) December 31, March 31, June 30, 9.1 $ Millions 2019 2020 2020 6.9 Cash Flow from Operations $ 8.2 $ 10.3 $ 10.1 3.0 Capital Expenditures (5.2) (3.4) (1.0) Free Cash Flow $ 3.0 $ 6.9 $ 9.1 Q419 Q120 Q220 25
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