Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Sidoti March Small-Cap Virtual Conference 2023
22 slides from Commercial Vehicle's conference presentation, Mar 22, 2023
Slide 1: Sidoti Conference
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures These slides contain 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”, “co
Slide 3: Who We Are
* An experienced Tier 1 vehicle partner who has launched a new Electrification and EV business strategy which is beginning to show results. WHO WE ARE « We assembled a new world class management team to drive this strategy with 8 of 10 leaders new in the last 3 years. * A multi-year growth plan is a
Slide 4: CVG – Focused on Vehicles and Automation
Slide 5: Strategically Repositioning The Business
Strategically Repositioning The Business CVG f 2019 } 2023s | 2027 Broaden our sweet spot, decrease our cyclical risk m= Non-Class 8 m= Class 8 Focus on high margin, high-ROIC business Pea ™@ = Electrical Systems Ml = Non-Electrical Systems Decrease our [a customer concentration @=Other Customers Ml
Slide 6: Electrical Systems vs All other
2023 2024 2025 Electrical Systems All other
Slide 7: Speed + product engineering helps our customers move fast
Speed + product engineering helps our customers move fast Low-cost manufacturing set up for high service, and speed with proprietary digital boards and software Low to medium volumes — sweet spot at target accounts and better margins Complete full vehicle connectivity solutions — high voltage and lo
Slide 8: Strategy in Action: Example of New Win in Electric Delivery Van Market
Strategy in Action > Example of New Win in Electric Delivery Van Market CVG @ 2020 ® 2021 @ 2022 @ 2023 @ 2024 - 2031 * Target electric delivery van market and target OE's for the electrical system in vehicles + Not an approved supplier + Design low voltage and high voltage product lines Outfit exis
Slide 9: Strategic priorities: improve profitability, reduce cyclicality, reinvest
Improve profitability or exit unprofitable and/or non-strategic business Control cost structure and manufacture in-house what we should Reallocate SG&A, fund and install digital backbone Secular growth in Electric Vehicle market globally Expand and diversify our customer roster Expand product line-u
Slide 10: 2023 Outlook Stronger than 2022
2023 Outlook Stronger than 2022 Another record year of Revenue expected due to strong heavy and medium duty truck demand, increased pricing and new business growth Gross Margins and EBITDA expected to be higher as pricing is now ahead of inflation and new business growth is ramped up We expect conti
Slide 11: Financial Review Q4 / FY 2022
Financial Review Qa /FY 2022 11
Slide 12: Q4 and FY 2022 Highlights
Q4 and FY 2022 Highlights CVG Q4 FINANCIAL HIGHLIGHTS ~ 2022 HIGHLIGHTS wn > PRICE NEW BUSINESS WINS “ilill| ($} Continued Ge cuss = @ $15 NET SALES ADJUSTED EBITDA Realization SO $ 2 3 4 9 $1 3 3 Continued improvement in price | . : ati H Value when fully ramped realization completed in Q4, new MIL
Slide 13: Industrial Automation and Vehicle-Related Segments
Industrial Automation Vehicle-Related Segments Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
Slide 14: Adjusted EBITDA (% of revenue)
ADJUSTED EBITDA (% of revenue) 9.0% 2022 2027 2022 2027 Target and win accretive new business to diversify the Company’s customer and product portfolio and increase the Company’s value proposition through innovation Improve the Company’s legacy business, renegotiate contracts, optimize costs, and im
Slide 15: Appendix Q4 / FY 2022
Y Appendix Q4/ FY 2022
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures This earnings presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). In general, the non-GAAP measures exclude items that (i) management believes reflect the Company’s multi-year corporat
Slide 17: Fourth Quarter Results
Fourth Quarter Results Three Months Three Months GAAP Measures Ended Dec 31 NON-GAAP Measures Ee Dec 31 ($ in millions except for share 2022 2021 ($ in millions except for share information) information) 2022 2021 Revenue $ 234.9 $ 228.9 Adjusted EBITDA $13.3 $12.9 Operating Income (4.0) 6.5 Adjuste
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Q4 2021 Operating Income/(Loss) (4.0) 6.5 Restructuring 2.0 19 HW inventory adj 10.4 - Deferred consideration purchase accounting - 01 Adjusted Operating Income 8.4 8.5 % of Revenues 3.6% 3.7% Net Income/(Loss) (31.9) 26 Interest Expense 29 17 Pr
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Net income/(Loss) 8.5 5.1 75 2.6 4.0 2.5 3.6 (32.0) Interest 5.0 2.8 1.6 17 2.0 24 2.8 2.9 Provision / (Benefit) for Income Taxes 25 15 24 1.9 14 0.9 13 7.4 Depreciation 3.8 3.8 3.7 3.8 3.5 3.7 3.7 3.7 Amortization 0.9 0.9 0.9 0.9 0.9 0.8 0.8 0.8
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS
Reconciliation of GAAP to Non-GAAP Financial Measures — Diluted EPS CVG information) Q4 2022 Q4 2021 Net income/(Loss) (32.0) 2.6 Operating income (loss) adjustments 12.4 2.0 Other adjustment on FX (0.1) - Pension Settlement 8.1 - Pension Settlement - Tax Adjustment 1.5 - Tax Valuation Allowance 14.
Slide 21: Segment GAAP to Non GAAP QTD
Segment GAAP to Non GAAP QTD For the Three Months Ended Dec 31, 2022 (in millions) Operating Income/(Loss) Restructuring Inventory Adjustment Adjusted Operating Income/(Loss) % of Revenue For the Three Months Ended Dec 31, 2021 (in millions) Operating Income/(Loss) Deferred consideration purchase ac
Slide 22: Reconciliation of GAAP to Non-GAAP Cash Flow Information
Reconciliation of GAAP to Non-GAAP Cash Flow Information (in millions) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Cash Flow from Operations $ (154) $ (9.4) $ 39 $ (89) $ (214) $ 169 $ 383 $ 35.2 Capital Expenditures! (1.7) (5.2) (4.5) (6.2) (3.6) (5.0) (3.9) (7.2) Free Cash Flow
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