Trimas Corporation · NASDAQ:TRS
Trimas — Investor Day (May 2010)
116 slides from Trimas's investor day presentation, May 13, 2010
Slide 1: TriMas Analyst Day
TriMas Analyst Day NASDAQ MarketSite • May 13, 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement Any “forward-looking” statements contained herein, including those relating to market conditions or the Company’s financial condition and results, expense reductions, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including, but not li
Slide 3: Agenda
3 Agenda 8:00 AM – 8:45 AM Registration and Continental Breakfast 8:45 AM – 9:00 AM Welcome and TriMas Vision: Dave Wathen, TriMas President & CEO 9:00 AM – 10:00 AM Growth Strategy Presentations: Various Businesses Packaging – Rieke: Lynn Brooks, President Aerospace & Defense – Monogram Aerospace:
Slide 4: Welcome and TriMas Vision
Welcome and TriMas Vision Dave Wathen • President & CEO
Slide 5: TriMas Key Messages
TriMas • Key Messages Collection of diverse businesses with common characteristics Highly-engineered products serving defensible, focused markets TriMas Operating Model is working well and delivering results Strong continuous productivity – used to fund growth, drive additional productivity, enhance
Slide 6: Corporate Leadership
David Wathen President & CEO Joined TriMas in 2009 A. Mark Zeffiro Chief Financial Officer Joined TriMas in 2008 Colin Hindman Vice President, Human Resources Joined TriMas in 2002 Corporate Leadership Tom Aepelbacher Vice President, Global Sourcing Joined TriMas in 2003 Robert Zalupski Vice Preside
Slide 7: Business Unit Leadership
Len Turner President, Arrow Engine Eli Crotzer President, Hi-Vol & PTC Business Unit Leadership Lynn Brooks President, Rieke Packaging Systems Kurt Allen President, Lamons Gasket Jerry VanAuken President, Norris Cylinder Brian McGuire President, Monogram Aerospace Fasteners * Not Attending Carl Bizo
Slide 8: TriMas Vision and Strategic Aspirations
TriMas Vision and Strategic Aspirations We provide engineered and applied products that customers in growing markets need and value. We build and run agile businesses that provide high returns on capital. High single-digit top-line growth Earnings growth faster than revenue growth 3% to 5% of total
Slide 9: TriMas Operating Model
TriMas Operating Model Implemented consistent processes to maximize performance of diverse businesses.
Slide 10: Operating Model: Strategic Plan
TriMas Operating Model Strategic Plan Update – During Q1 My targets 3-year horizon Trends, competition, issues Agreement on productivity and growth projects Next year’s budget Intellectual property Structured processes for resource allocation.
Slide 11: Operating Model: Accountability
TriMas Operating Model Accountability Requires empowerment Budget set in Q4 Risk review in Q4 Monthly forecasts Empowerment with fences.
Slide 12: Operating Model: People Plan
TriMas Operating Model People Plan – During Q3 Skills and capabilities to implement strategic plan Back-ups, high-potentials, development Organizational structure Great place to work.
Slide 13: Operating Model: Asset Efficiency
TriMas Operating Model Utilize every tool and tactic. Asset Efficiency Working capital Treasury Inventory Willing to use outside help Cycle-time
Slide 14: Operating Model: Quarterly On-Site Operating Reviews
TriMas Operating Model Focus on key levers and changes needed. Quarterly On-Site Operating Reviews Focus on previous quarter/ current quarter Bridges – Price, productivity, economics and revenue drivers Working capital Program updates
Slide 15: Operating Model: Balanced Incentive Plan
TriMas Operating Model Balanced incentive plan drives desired results. Incentive Comp Matrix Corp SBU Sales / Profitability 35% 40% Cash flow 15% 15% Inventory turns 10% New products 10% Productivity 15% EPS 25% ROIC 15% Non-financial 10% 10%
Slide 16: TriMas Overview: Balanced Diversification
Cequent Engineered Components Revenue: $74.4 9.3% of Company Aerospace & Defense Energy Packaging Revenue: $148.9 18.5% of Company Revenue: $145.1 18.1% of Company Revenue: $62.3 7.8% of Company Revenue: $373.0 46.3% of Company ($ in millions; from continuing operations) 2009 Revenue: $803.7 2009 Ad
Slide 17: Common Business Characteristics
TriMas • Common Business Characteristics Leaders in very defined and defensible markets Strong brands, full product lines – customers know and need us Difficult to design and produce products Expert, experienced management teams Multiple growth programs underway and staged Multiple productivity proj
Slide 18: Packaging – Rieke Packaging Systems
Packaging – Rieke Packaging Systems Lynn Brooks • President
Slide 19: Rieke Key Messages
Rieke • Key Messages Maintain #1 or #2 market share in most industrial products for North America and Europe Significant growth opportunity in dispensing and delivery systems throughout the world Own our technology – approximately 60% of revenue is IP-protected Retain long-term customer contracts an
Slide 20: Rieke Overview
Rieke • Overview Targeting specialty dispensing systems in higher growth end markets. Core products—closures for industrial containment and shipment of liquids Industrial chemicals Agricultural chemicals Sanitary and cleaning chemicals Petroleum Paints and solvents Specialty systems—including dispen
Slide 21: Rieke Revenue by End Market
Rieke • Overview Increased percentage sold into growing end markets such as pharmaceutical, food and beverage and personal care. Chemicals Paints Petroleum Pharma, Food, Personal Care All Other 20% 25% 15% 35% 5% Approximate 2009 Revenue by End Market Core Specialty
Slide 22: Rieke Global Footprint
BLUE = Production Sites GREEN = Sales Offices Rieke • Overview Rieke is a global business and will continue to expand geographic coverage.
Slide 23: Market Dynamics: North America Core
23 Market Dynamics • North America Core products in North America End user specifications “pull” demand 90% of core revenue is specified Intellectual property coverage on approximately 60% of core product sales Major end users include:
Slide 24: Market Dynamics: North America Specialty Dispensing
Market Dynamics • North America Specialty dispensing in North America Focus is on pharma, personal care and food markets Over 70% of sales are covered via IP 2009 sales were approximately $30M while target markets exceed $500M in North America Major end users include:
Slide 25: Market Dynamics: Europe
Market Dynamics • Europe Industrial and specialty dispensing products in Europe Dispensing is 55% of total sales; remainder closure sales IP coverage on 40% of sales Target market for dispensing in Europe is approximately $500M (same as North America) Major end users include: Boots
Slide 26: Market Dynamics: Asia
Market Dynamics • Asia Manufacturing facility in Asia Low cost, high quality Started sales and business development effort in 4Q09 Focused on China, Indonesia and Southeast Asian markets Achieved in excess of $1M in FRR revenue in first 3 months “on ground” Potential market size for Rieke custom pro
Slide 27: Rieke Differentiation: Industrial Closures
90% of revenue specified by end user of container – “Pull demand” Provides dies, machinery and spare parts on “memo free” loan basis to container companies for insertion of closure to the container Significant barrier to entry – Estimate $20M+ replacement value for equipment Patent protection on key
Slide 28: Rieke Differentiation: Dispensing/Delivery Systems
Focus on customer needs, application vs. competitors’ “one size fits all” Highly viscous liquids, metering size, colors, opening sizes to the bottle are some of the differentiation factors Customer and market specific products Majority of revenue is patent protected Speed and delivery times are adva
Slide 29: Actual/Forecasted New Product Sales
Actual/Forecasted New Product Sales Proven model for product development and growth. Track Record of Growth in New Products Sales Growth CAGR 35% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 30: Foamer Product and New Product Development
Foamer Product – Rieke Advantages: Multiple components (15) Customer-led or generic Patent protection Long-term contracts Current customer base or target market Specialty, niche products and markets Typical New Product Development
Slide 31: Rieke Key Messages
Rieke • Key Messages Maintain #1 or #2 market share in most industrial products for North America and Europe Significant growth opportunity in dispensing and delivery systems throughout the world Own our technology – approximately 60% of revenue is IP-protected Retain long-term customer contracts an
Slide 32: Aerospace & Defense – Monogram Aerospace
Aerospace & Defense – Monogram Aerospace Dave Wathen • TriMas President & CEO
Slide 33: Monogram Aerospace Key Messages
34 Monogram Aerospace • Key Messages TriMas Overview Packaging Engineered Components Energy Aerospace & Defense % of 2009 Revenue % of 2009 Adj. EBITDA Cequent We are broadly specified on fixed and rotary winged aircraft We own our technology and customers need us Positive end market trends include:
Slide 34: Monogram Overview
Monogram • Overview Manufacturing fasteners since 1889 Provider of highly-engineered mechanical fasteners for temporary and permanent applications in fixed and rotary wing aircraft Over 75% of sales are blind bolt products Los Angeles plant with approximately 250 employees Worldwide customer base wi
Slide 35: Monogram Blind Bolt Overview
A blind bolt is a multi-component fastener which can: Build better aircraft High preload or “clamp-up” Fewer access holes in aircraft structure Improved manufacturing cycle time Replace 2-sided fasteners One-sided installation Better ergonomics Reduced labor cost Automated assembly Monogram • Blind
Slide 36: Monogram Products
Monogram • Products Monogram products are industry standards: Visu-Lok® for metal Composi-Lok® for composite Wedge Lock temporary clamps Maff pins for light Honeycomb nacelles Proprietary products and systems on new aircraft: Radial-Lok® for fatigue and lightning strike resistance Composi-Lok® 3 eli
Slide 37: Monogram Product Application
Monogram • Product Application Monogram is increasing applications on aircraft. Vertical Tail Plane Flap Tracks Horizontal Tail Plane Nacelles Rudders
Slide 38: Monogram Customers
Monogram • Customers OEM CUSTOMERS: Airbus / EADS Boeing Embraer Bombardier Spirit AeroSystems Northrop DISTRIBUTOR PARTNERS: Wesco Aircraft (Carlyle) Peerless Aerospace Fasteners M&M Aerospace (B/E Aerospace) Honeywell (Now M&M) Satair UFC H-H Tool Aero Fastener OEM CUSTOMERS: BAE Systems Gulfstrea
Slide 39: Monogram Market
Category Market Size* Our Market Share* Market Trend Blind Bolts $175-$225 Million 25% Temporary Clamps $10-$15 Million 33% Honeycomb Pins $4-$6 Million 60% Titanium Screws $425-$475 Million 1% Collars $150-$200 Million 0% Monogram • Market *Market sizes and share are based on management estimates M
Slide 40: Monogram Growth Initiatives
Monogram • Growth Initiatives Expand Monogram products on existing applications Win new applications with existing products Secure Monogram products on new aircraft Continue development of new composite products Expand geographic reach into Asia to capture emerging aircraft manufacturing market
Slide 41: Monogram Content on Legacy Programs
Monogram • Content on Legacy Programs Airbus Fleet Boeing Fleet Military Regional Fleet
Slide 42: Monogram Content on New Programs
Monogram • Content on New Programs Forward Wheel Well Inboard Flaps Horizontal Tail Plane Vertical Tail Plane Nacelles Rudder Cargo Door Struts Boeing 787 Airbus A-380 Vertical Tail Plane Rudders Horizontal Tail Plane Flaptracks
Slide 43: Monogram Content in Development
Monogram • Content in Development Commercial Military Bombardier C-Series A-400M Due 2015 UMV Ongoing F-35 Due 2015 Airbus A-350 Due 2015
Slide 44: Monogram Key Messages
Monogram • Key Messages We are broadly specified on fixed and rotary winged aircraft We own our technology and customers need us Positive end market trends include: Composite aircraft Robotic assembly Opportunities in Asia provide upside
Slide 45: Energy – Arrow Engine
Energy – Arrow Engine Len Turner • President
Slide 46: Arrow Key Messages
47 Arrow • Key Messages High market share in core engines and parts Globally competitive Rapidly growing well-site content Rapidly growing compression products Positive market trends: Shift toward natural gas usage Increased oil drilling activity where we have higher well content Shale drilling play
Slide 47: Arrow Overview
Founded as Arrow Specialty Co. in 1955 as a replacement parts supplier for oilfield engines Purchased C-Series Engine line in 1974 Purchased manufacturing rights for VR line of engines in 1993 Current management team in place since late 2000 Added compressor products in 2007 Bought gas products capa
Slide 48: Arrow Market Segmentation
Arrow Market Segmentation Pump Jack Power Compression Gas Production Equipment and Meter Runs U.S. Canada Mexico Other Oil Natural Gas End Market Oil and Gas 2010 Estimated Revenue by: Geography Arrow has a large market share in focused market.
Slide 49: Arrow Core Products
Arrow • Core Products Arrow core products consist of engines and replacement parts. C-Series Single Cylinder Engines Exclusively designed for pump jack power 50% pump oil 50% pump water at natural gas wells Fueled by natural gas from the well Main advantages of the Arrow Engine: Heavy duty-Made to w
Slide 50: Arrow Core Products: Engine Parts and Pumps
Arrow • Core Products Engine Parts Arrow OEM engines Lufkin Engines Witte (Oilwell) Engines Climax Engines VR Engines Replacement parts for other manufacturers’ engines Waukesha Engines Caterpillar Engines Fairbanks-Morse Engines Ajax Engines Chemical Pumps Designed for injection of chemicals in sma
Slide 51: Arrow New Products: Compression
Arrow • New Products Compression Products VRC-2 Compressor (100 Hp) Natural Gas Compressor introduced in 2007 250+ units in use New High Pressure CNG Compressor Systems Full system for vehicle fueling and other high pressure applications Introduced in 2010 Up to 6000 psi applications In Development:
Slide 52: Arrow New Products: Production and Measurement Equipment
Arrow • New Products Oil and Gas Production Equipment and Gas Measurement Equipment Natural Gas Water Separators Meter Tubes Skid-mounted Meter Runs Packaged Measurement Stations Other welded fabricated products engineered to AGA and ASME code specs
Slide 53: Arrow New Products: Electronic Components
Arrow • New Products Engine and Compressor Electronic Components Multi-Cylinder Ignition System Engine Protection System Electronic Governor Auto-Start Patented Clutch Actuator Air Fuel Ratio Controller
Slide 54: Arrow Positive Market Trends
Near-term Oil drilling where Arrow has higher well content is expected to be up 60% for the year Canada will also be strong – expected increase in oil drilling of 60% Mexico's expanding well program will be beneficial Longer-term Expanding shale drilling (natural gas) - Compressor and gas products a
Slide 55: Arrow Key Messages
Arrow • Key Messages High market share in core engines and parts Globally competitive Rapidly growing well-site content Rapidly growing compression products Positive market trends: Shift toward natural gas usage Increased oil drilling activity where we have higher well content Shale drilling plays f
Slide 56: Energy – Lamons
Energy – Lamons Kurt Allen • President
Slide 57: Lamons Key Messages
59 Lamons • Key Messages Experts at specialty gaskets and bolts requiring fast delivery to customers who are willing to pay for speed Our local manufacturing and quick delivery model works with more prospects globally Product expansion underway with more opportunities in the future TriMas Overview P
Slide 58: Lamons Overview
Lamons • Overview Started over 50 years ago in Houston, Texas as local sheet gasket cutter Developed wider product range through metallic gaskets and fasteners Growth came from product expansion and either buying a distributor or starting a new branch close to core customer base Market leader in the
Slide 59: Lamons History
1990 LA Hose 1988 Power Engineering 1987 Canadian Gasket 1986 King of Prussia, PA 1998 Freeport, TX 2002 Joliet, IL 1997 Beaumont Bolt 2008 Zhangjiagang, China 2005 Hangzhou, China 1986 2004 2006 1988 1990 1992 1994 1996 1998 2000 2002 2008 Lamons History 11% Sales CAGR for 22 years 2009 2009 Rotter
Slide 60: Lamons Product Overview
Lamons • Product Overview Stock 55% Largest gasket is 29 feet; largest bolt is 4 inches in diameter. Product Mix Special Stock Bolts Heat Exchanger Ring Joints Soft Spiral Wound Kammpro Other
Slide 61: Lamons Market and Product Overview
Lamons • Market and Product Overview Customer Expectations Speedy service Local manufacturing and inventory Global service capabilities 17 locations Manufacture full range of specialty (high margin) gaskets and bolts Distributors stock standards locally if no Lamons location available Distributors b
Slide 62: Lamons Geographic Mix
Lamons • Geographic Mix Lamons Market Global Market United States Majority of Lamons sales are in North America, and North America only represents 34% of global market for these products. Middle/Far East Europe North America Middle/Far East Europe South America Africa South America Canada
Slide 63: Lamons Market
65 Lamons • Market Approximate global market size is $475-$595M for gaskets and $400-$450M for stud bolts Lamons has almost 40% market share in gaskets and stud bolts in the United States, but only about 15% of global market share for gaskets and 10% for stud bolts Market growth trend is relatively
Slide 64: Lamons Major Markets and Customers
Lamons • Major Markets and Customers End Market Mix Distributors Refining Petrochemical OEM/Powergen Engineering & Construction International
Slide 65: Lamons Major Customers
Lamons * Major Customers EXXON © LYONDELL << iving. Improved daily™ bp Chevron = is as 5) Bayer Ww =a VALERO a a 4 Siege INEOS QTRMas
Slide 66: Lamons Branch Strategy
KEY Exxon Chevron BP Shell Conoco Tesoro LyondellBasell Dow Beaumont Bellingham Ft. Erie Sarnia Freeport Salt Lake Boothwyn Joliet Martinez Rancho New Orleans Baton Rouge Lake Charles Houston = Lamons Lamons • Branch Strategy
Slide 67: Lamons Branch Strategy
KEY Exxon Chevron BP Shell Dow Conoco Zhangjiagang Hangzhou Lamons • Branch Strategy = Lamons
Slide 68: Lamons Growth Opportunities: Locations and Projects
Lamons • Growth Opportunities New Locations Follow customer contracts Replicate U.S. branch strategy overseas Capitalize on underserved markets New Plant Projects Ensure Lamons wins the projects both in North America and overseas
Slide 69: Lamons Growth Opportunities: New Products
Lamons • Growth Opportunities New Products Expand fastener manufacturing Intelligent bolts Thread lubricant PTFE coated studs Environmental Changes and Plant Upgrades Environmental legislation results in gasket/bolt business Canadian shale sands projects results in major plant capacity increases (BP
Slide 70: Lamons Key Messages
Lamons • Key Messages Experts at specialty gaskets and bolts requiring fast delivery to customers who are willing to pay for speed Our local manufacturing and quick delivery model works with more prospects globally Product expansion underway with more opportunities in the future
Slide 71: Productivity Panel
Productivity Panel Mark Zeffiro • Chief Financial Officer
Slide 72: Productivity Key Messages
75 Productivity • Key Messages New organization and new processes Wide range of opportunities for all businesses Funds growth, expands margins and protects us from inflationary/competitive pressures
Slide 73: What is Productivity?
76 What is Productivity? Productivity = Doing the same or more with less CASH Working Capital CAPEX Supply Chain Terms Freight COST Labor Material MRO Building Footprint Productivity initiatives will drive . . . Earnings Per Share Cash Flow Shareholder Value Opportunities
Slide 74: Productivity Maturity Curve
77 Maturity Curve TriMas has a wide range of productivity opportunities. Engineered Components Aerospace & Defense Energy TriMas Packaging Cequent Game Changing Strategies VA / VE Lean Manufacturing Six Sigma Strategic Partnering BENEFITS Game Changing Strategies Global Sourcing Initiatives Aggregat
Slide 75: Productivity Panel
78 Productivity Panel Tom Aepelbacher – TriMas Global Sourcing Tom Benson – Cequent (CPP) Front-line John Aleva – Cequent (CCP) Supply Chain Jerry VanAuken – Norris Labor Eli Crotzer – HiVol/PTC Business Efficiency Examples in each business and working on productivity in all areas.
Slide 76: Productivity Panel: Global Sourcing
Productivity Panel Tom Aepelbacher • Vice President – Global Sourcing
Slide 77: What is Productivity? Productivity Savings
80 What is Productivity? Productivity Savings Productivity savings funds other initiatives, enhances margins and improves cash flow. 3% – 5% Total Productivity Inflation Offset Margin Expansion Productivity Growth (NPI)
Slide 78: How Do We Do It?
81 How do we do it? Organizational Global Sourcing Office (GSO) Asian Sourcing Office (ASO) Strategic Business Units (SBU) Productivity Council Cross-Business Teams Commodity Leaders Tracking Process Accountability Prioritization Visibility Focus “Play together” TriMas Operating Model Operational Ex
Slide 79: Where Do We Go to Get It?
82 Where do we go to get it? Operational team utilizing best practices across all business units. Operational Targets Kaizen Events Six Sigma Automation Tactics / Tools Employed Supply Chain Consolidate Leverage Lean Design for Repeatability Supply Chain Sourcing LCC Content Review Redesign Consolid
Slide 80: Productivity Tracking
83 Productivity Tracking Review and tracking mechanisms are in place.
Slide 81: Productivity Example: Supplier Consolidation
84 Aggregate Spend on Logistics for TriMas SBUs: Created freight partnerships to aggregate and leverage TriMas total spend Developed a consolidated warehouse in China to maximize containers Negotiate rates quarterly to maximize economic pressure Productivity Example Aggregate spend on Steel for TriM
Slide 82: Maturity Curve: Opportunity Remains
85 Maturity Curve Opportunity remains on the majority of the spend. Engineered Components Aerospace & Defense Energy TriMas Packaging Cequent BENEFITS Game Changing Strategies Productivity Maturity Curve Sourced Opportunity
Slide 83: Cequent Performance Products Overview
86 The highest recognized brands in the marketplace Dominant in the towing and trailer markets Over 4,000 customers supported in the Agricultural, Industrial, Marine, OEM, RV and Automotive Aftermarket Formerly 8 different companies Cequent Performance Products |Overview Primary Brands Supporting Br
Slide 84: Cequent Performance Products Productivity: Consolidation Efforts
87 Cequent Performance Products |Productivity Consolidation Efforts Achieved: One Management Team One Business Process One ERP System One Sales Team One Price List One Manufacturing Footprint One Distribution Network One Face to the Customer Impact: Simpler Business Less SKUs Less Inventory Better M
Slide 85: Cequent Performance Products: Manufacturing & Distribution
88 Cequent Performance Products |Productivity Manufacturing & Distribution We continue to evaluate and reduce our manufacturing and distribution footprints. These results include: Increased overseas production Consolidated 11 domestic manufacturing plants to four Consolidated 26 distribution warehou
Slide 86: Headcount
89 Headcount Assessment of our employment headcount in both the U.S. and Mexico resulted in the following: Back office consolidations for efficiencies Streamlining practices Increased overseas production, reducing domestic Consolidation of warehouse & manufacturing locations Cequent Performance Prod
Slide 87: Cequent Performance Products Productivity Focus
90 Productivity Focus Cequent Performance Products has culturally embraced productivity Considerable improvements made: Manufacturing Footprint Reductions 50% Warehouse Footprint Reductions 50% Headcount Reductions 44% Inventory Level Reductions 31% Working Capital Reductions 44% Productivity Cost S
Slide 88: Cequent Consumer Products Overview
91 Focused on serving the retail market and the Do-It-Yourself consumer Retail channels served: Mass Merchants, Hardware/Home Centers, Farm/Fleet, Auto Retail, Warehouse Club, Specialty Catalog, Internet, Sporting Goods, Dollar Stores Leader in the towing accessories, cargo securing and loading ramp
Slide 89: Cequent Consumer Products: Low Cost Country Sourcing
93 Cequent Consumer Products |Productivity Low Cost Country (LCC) Sourcing We continue to evaluate and reduce our domestic purchases. These results include: Increased overseas production Leverage the total LCC spend through purchase negotiation Leverage the GSO and other SBUs Evaluate other LCCs out
Slide 90: Working Capital and Inventory Reductions
94 Reduce inventories through better product flow and changes in ownership terms with LCC partners Increase payables by expanding payment terms with LCC partners Reduce receivables by improving terms with customers and through early collection programs and A/R facility Smarter inventory ordering Lev
Slide 91: Revenue Expansion and Productivity Focus
95 Revenue Expansion and Productivity Focus Cequent Consumer Products has built productivity improvements into our culture and are focused on expanding our business Focused initiatives in VA/VE and enterprise lean Leveraging with other TriMas SBUs and GSO is now bringing new improvements Considerabl
Slide 92: Norris Cylinder Overview
96 Norris Cylinder |Overview Largest domestic manufacturer of high/low pressure gas cylinders DOT 3AA cylinders ISO cylinders Acetylene cylinders Markets Served: Domestic Industrial Gas packaged gases (inert, oxygen, hydrogen, CO2) International Industrial Gas (ISO) ~30% of sales South America, Mexi
Slide 93: Norris Cylinder Productivity: Labor and Working Capital
97 Reduced labor per sales over time and will continue to do so Targeted project areas are: Material Handling Lean initiatives in shop floor scheduling Capital expenditures in equipment (to improve throughput and reduce labor) Improved shop floor scheduling Improved vendor delivery performance Steel
Slide 94: Norris Cylinder Productivity: Cost Savings
98 Cost Savings (non-labor): MRO improvements; e.g. saw blades Optimize electrical usage & power factor improvement Paint usage Tooling costs & utilization Product design changes to gain lower costs 35% 38% Norris Cylinder |Productivity
Slide 95: Hi-Vol / PTC Overview: Hi-Vol
99 Hi-Vol / PTC |Overview Hi-Vol Strong market position in male tube nut product line Leadership position in engineered components for new direct injection engines Attractive margins and high growth in new products Generated cash flow despite very difficult market conditions Businesses are positione
Slide 96: Hi-Vol / PTC Overview: Precision Tool Company
100 Hi-Vol / PTC |Overview Precision Tool Company Historically high margins and strong cash flow Strong market position and brand with KEO Cutters Leveraging KEO brand and distribution network to drive new product growth Leverage KEO’s center drill manufacturing cost advantages and favorable currenc
Slide 97: Hi-Vol / PTC Productivity
101 Hi-Vol / PTC |Productivity Hi-Vol Opportunities for margin enhancement on new FSC product line Insourcing, vendor cost reductions, automation, lean initiatives, labor productivity, etc. Favorable labor contract negotiations and productivity incentive opportunities Continued operating leverage wi
Slide 98: Productivity Summary
102 Productivity Summary Goal = Doing the same or more with less Process New and increased accountability and focus– now part of the incentive system New resources deployed Varying business maturity and targeted focus creates opportunity Not just labor discussion Uses Offset inflationary pressures E
Slide 99: Productivity Key Messages
103 Productivity • Key Messages New organization and new processes Wide range of opportunities for all businesses Funds growth, expands margins and protects us from inflationary/competitive pressures
Slide 100: TriMas Value Proposition
TriMas Value Proposition Mark Zeffiro • CFO
Slide 101: TriMas Value Proposition
105 TriMas Value Proposition Stability Margin expansion High single-digit growth Energy Aerospace Industrial Consumer Agricultural Geographic diversity Customer diversity Balanced Portfolio Many small opportunities = big results Geographic Product Customer penetration Services Growth Opportunities X
Slide 102: TriMas 2010 Outlook
106 TriMas 2010 Outlook Q4-2009 Q1-2010 Sales Growth 4% - 7% 5% - 9% Core growth 3% - 4% 3% - 4% New program growth 1% - 3% 2% - 5% Bolt-on acquisitions 0% - 2% 0% - 2% Recurring Operating Profit Up 60 to 100 bps Up 80 to 120 bps Free Cash Flow(1) > $30 million $40 to $45 million Diluted EPS (excl.
Slide 103: EPS Growth: Three Year Horizon
107 EPS Growth: Three Year Horizon 2010 Outlook $0.65 – $0.75
Slide 104: EPS Growth: Market Trends
108 EPS Growth: Three Year Horizon GDP + 1% - 3% per year Market Trends > GDP Pharma & Medical Food & Beverage Global Markets Natural Gas Usage Composite Aircraft Markets Markets 2010 Outlook $0.65 – $0.75
Slide 105: EPS Growth: New Products
109 EPS Growth: Three Year Horizon New product sales of 2% – 5% growth Significant funnel of opportunities – all small in nature Packaging Specialty dispensing Energy Well-site products Technical solutions Aerospace & Defense Super flush, casings Engineered Components Cylinder applications, fuel rai
Slide 106: EPS Growth: Productivity
110 EPS Growth: Three Year Horizon Continued focus on driving 80-120 basis points improvement annually Purchasing leverage VA / VE Sourcing / supply chain efficiency Capital prioritization and returns requirements Overhead leverage Productivity New Products Markets Productivity 2010 Outlook $0.65 –
Slide 107: EPS Growth: Cash Flow and Deleveraging
111 EPS Growth: Three Year Horizon Cash flow generation of $100 to $150M over three years Deployment towards deleveraging Term and Revolving debt targeted Cash Flow & Deleveraging New Products Markets Productivity Deleveraging 2010 Outlook $0.65 – $0.75
Slide 108: EPS Growth: Acquisitions
112 EPS Growth: Three Year Horizon Goals Global expansion Intellectual property Product extension “Bolt-on” in nature Synergies driven Lower risk Targeted Segments Packaging Aerospace Energy Acquisitions New Products Markets Productivity Deleveraging Acquisitions 2010 Outlook $0.65 – $0.75
Slide 109: EPS Growth: Significant EPS Growth
113 EPS Growth: Three Year Horizon Significant EPS Growth . . . Multiple of Sales Growth New Products Markets Productivity Deleveraging Acquisitions 2010 Outlook $0.65 – $0.75
Slide 110: TriMas Operating Model Roadmap
114 TriMas Operating Model Roadmap Diverse set of businesses Strong leverage position Progress underway Growth and productivity projects Disciplined model to prioritize and execute Focused on creating stakeholder value Operating Model and related processes are baseline for TriMas future development.
Slide 111: Questions and Answers
Questions and Answers All
Slide 112: Closing
Closing Dave Wathen • President & CEO
Slide 113: TriMas Key Messages
117 TriMas • Key Messages Collection of diverse businesses with common characteristics Highly-engineered products serving defensible, focused markets TriMas Operating Model is working well and delivering results Strong continuous productivity – used to fund growth, drive additional productivity, enh
Slide 114: TriMas Overview
118 TriMas Overview Five strategic platforms Highly-engineered product portfolio servicing defensible, focused markets Leading market positions Strong brand names Significant diversification End markets Customers and distribution channels Geographies Proven operating model TriMas Operating Model dri
Slide 115: TriMas Analyst Day
TriMas Analyst Day NASDAQ MarketSite • May 13 2010
Slide 116: Reconciliation of Non-GAAP Measure Adjusted EBITDA and Special Items
120 Appendix Reconciliation of Non-GAAP Measure Adjusted EBITDA and Special Items (1)The Company defines Adjusted EBITDA as net income (loss) before cumulative effect of accounting change, interest, taxes, depreciation, amortization, debt extinguishment costs, non-cash asset and goodwill impairment