Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Bank of America Merrill Lynch Leveraged Finance Conference 2017
21 slides from Commercial Vehicle's conference presentation, Nov 28, 2017
Slide 1: Bank of America Merrill Lynch Leveraged Finance Conference
Patrick Miller President and CEO Tim Trenary Chief Financial Officer Terry Hammett Treasurer and VP Investor Relations Commercial Vehicle Group, Inc. Bank of America Merrill Lynch Leveraged Finance Conference November 29, 2017
Slide 2: Forward Looking Statements
Forward Looking Statements pg | 1 This presentation contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," or similar expressions. In particular, this presentation
Slide 3: Global Presence
23 Facilities 9 Countries 2016 sales $662M NASDAQ CVGI pg | 2 Global Presence North America 12 facilities Europe 5 facilities Asia Pacific 6 facilities Mexico Australia Ohio United Kingdom Belgium Czech Republic Ukraine India China
Slide 4: Products
pg | 3 Products Seats & Seating Systems Cabs and Sleeper BoxesWiper Systems, Mirrors & Controls Wire Harnesses & Controls Interior Trim
Slide 5: 2016 Sales - $662 Million
2016 Sales - $662 Million pg | 4 78% 11% 11% N. America EMEA APAC 42% 19% 5%2% 18% 14% OEM Truck OEM Construction OEM Bus OEM Agriculture Aftermarket Other 42% 23% 20% 9% 6% Seats Wire Harnesses Trim Structures Wipers / Mirrors 17% 15% 10% 7%6% 6% 39% Volvo Daimler Paccar Caterpillar John Deere Navi
Slide 6: 2016 Business Segment Sales
2016 Business Segment Sales¹ pg | 5 1. Before intercompany sales eliminations 62% 19% 8% 2% 9% MD/HD Truck OEMs Aftermarket and OE Service Bus OEMs Construction OEMs Other Global Truck and Bus $416 Million (62%) 47% 16% 14% 8% 5% 3% 7% Construction Aftermarket and OE Service Automotive Truck Militar
Slide 7: Industry Outlook – North America Truck
pg | 6 North American Truck Build Rates 2016 CVG Sales by End Market (‘000s of units) 228 256 322 295 244 263 280 2016A 2017E 2018E 2019E 2020E 2021E 2022E Heavy-Duty Truck (Class 8) 233 250 251 258 271 265 275 2016A 2017E 2018E 2019E 2020E 2021E 2022E 42% 19% 5% 2% 18% 14% OEM Truck OEM Bus OEM Agr
Slide 8: Industry Outlook – Global Construction
534 625 649 652 630 625 225 260 273 274 268 26321 21 21 22 22 22151 171 181 183 188 187160 190 202 199 195 192 2016A 2017E 2018E 2019E 2020E 2021E Asia Pacific Europe Latin America Middle East & Africa North America (‘000s of units) pg | 7 Industry Outlook – Global Construction Global Sales of Const
Slide 9: Strategies to Improve the Core
Strategies to Improve the Core pg | 8 18% Fewer Sales 18% Fewer Sales 18% Fewer Sales CVG Digital – Digitalize processes, design, production, and products Updating manufacturing and support processes – connectivity Benefits – Increased efficiency, quality, and reduction of working capital Pr
Slide 10: Examples of CVG Digital Actions
Examples of CVG Digital Actions pg | 9 18% Fewer Sales 18% Fewer Sales 18% Fewer Sales Virtual Wiring Boards for high proliferation Built-in Quality – Digital error proofing and smart processes Real time process monitoring and data tracking Digital design and validation speeds product development
Slide 11: Improving the Foundation
Improving the Foundation pg | 10 18% Fewer Sales 18% Fewer Sales 18% Fewer Sales Institutionalizing Lean Culture Reducing Working Capital Cost Focus to lower Break-Even Investing in Innovation Next Gen Product Growth Initiatives Customer Support CVG Digital Actions Optimizing Manufacturing Footprint
Slide 12: Targets for Growth
Targets for Growth pg | 11 Global Truck and Bus Next Gen NA truck seat unveiled September 2017 at NACV truck show. Next Gen seat products for India and China markets. Wire harnesses – Europe, North America and Asia Expanding capacity in Wire Harness – Growing in construction, agriculture, truck, and
Slide 13: Finance Update
Finance Update
Slide 14: Financial Results
pg | 13 Outlook for medium and heavy duty truck production 000’s)* Class 8 Class 5-7 * Source: ACT Research See appendix for reconciliation of GAAP to non-GAAP financial measures Financial Results (Dollars in millions) Q3 2016 Q3 2017 Sales $ 153.6 $ 198.3 Up 29% Gross Profit $ 18.9 $ 25.2 MX labor
Slide 15: Business Segments
pg | 14 Business Segments1 1 Before intercompany sales eliminations See appendix for reconciliation of GAAP to non-GAAP financial measures (Dollars in millions) Global Truck & Bus Global Construction & Agriculture Sales $ 122.0 $ 79.6 Gross Profit $ 17.2 $ 8.3 MX labor shortage — $2 million Q3 '17 i
Slide 16: Capital Structure
See appendix for reconciliation of GAAP to non-GAAP financial measures pg | 15 Capital Structure Capital Allocation: 1.) liquidity 2.) growth 3.) de-leverage 4.) return capital to shareholders 1 Refinanced $235 million in Senior Secured Notes with an Institutional Term Loan in April 2017 LTM Q1 LTM
Slide 17: Patrick Miller President and CEO Tim Trenary Chief Financial Officer Terry Hammett Treasurer and
Patrick Miller President and CEO Tim Trenary Chief Financial Officer Terry Hammett Treasurer and VP Investor Relations Commercial Vehicle Group, Inc. Bank of America Merrill Lynch Leveraged Finance Conference November 29, 2017
Slide 18: Appendix GAAP to Non-GAAP Reconciliation
Appendix GAAP to Non-GAAP Reconciliation
Slide 19: Adjusted Operating Income Reconciliation
pg | 18 GAAP to Non-GAAP Reconciliation Adjusted Operating Income Reconciliation Q3 Q3 (Dollars in millions) 2016 2017 Operating Income $ 4.5 $ 10.7 Margin 2.9 % 5.4 % Special Items: Restructuring & Related 1.5 0.4 Adjusted Operating Income $ 6.0 $ 11.1 Margin 3.9 % 5.6 %
Slide 20: EBITDA & Adjusted EBITDA Reconciliation
EBITDA & Adjusted EBITDA Reconciliation pg | 19 GAAP to Non-GAAP Reconciliation LTM LTM (Dollars in millions) Q1 2017 Q3 2017 Net Income $ 4.8 $ 5.9 Interest Expense 19.3 20.6 Tax Provision (1.7) 2.1 Depreciation 14.7 14.0 Amortization 1.3 1.3 EBITDA $ 38.4 $ 43.9 Restructuring & Related 4.3 3.6 Ins
Slide 21: Business Segment Adjusted Operating Income Reconciliation
pg | 20 GAAP to Non-GAAP Reconciliation Business Segment Adjusted Operating Income Reconciliation Global Global Truck Construction (Dollars in millions) & Bus & Agriculture Operating Income $ 11.3 $ 4.1 Margin 9.3 % 5.2 % Special Items: Restructuring & Related 0.4 Adjusted Operating Income $ 11.7 $
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