Slide 1: Resilience By Design
Resilience By Design Annual Shareholder <GENTEX INVESTOR OVERVIEW> May 19, 2022 Meeting - 2022 1
Slide 2: Safe Harbor for Forward-Looking Statements
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this communication that are not purely historical are forward-looking
Slide 3: Performance
$1.73B 13.3% Revenue Annual Tax Rate 2021 35.8% Gross Margin Performance $75.1M Capital Expenditures PERFORMANCE $209.9M $99.1M Operating Expenses Depreciation & (E, R&D and S, G&A) Amortization <GENTEX INVESTOR OVERVIEW> 3
Slide 4: What happened to the auto market
What happened to the auto market IHS Markit Light Vehicle Forecast 2018 120.0 WLTP 110.0 110 2019 104 106 107 109 100.0 101 UAW Strike 99 Axis Title 94 90.0 92 2020 89 88 COVID-19 80.0 81 77 2021 75 70.0 Component Shortages 60.0 CY2018 CY2019 CY2020 CY2021 CY2022 CY2023 CY2024 CY2018 IHS - January C
Slide 5: 2022 Guidance / 2023 Guidance
$1.87 – 2.02B 15 – 17% Revenue Annual Tax Rate 2022 GUIDANCE 35 – 36% $150 – 175M Gross Margin Capital Expenditures Updated April 22, 2022 $230 – 240M $100 - 110M Operating Expenses Depreciation (E, R&D and S, G&A) & Amortization 2023 GUIDANCE 15-20% Revenue Updated April 22, 2022 Growth above 2022
Slide 6: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY • Utilizing Free Cash Flow －Capital Expenditures －Dividends • Dividend of $.48 per year －Repurchases • Additional 25M share authorization (Aug 2021) －M&A <GENTEX INVESTOR OVERVIEW> 6
Slide 7: Return to Shareholders
RETURN TO SHAREHOLDERS RETURN OF CAPITAL 2021 $800.0 $708.2M $0.48 $700.0 $116.6 Dividend Per Share $600.0 $115.3M $500.0 $447.8M $439.9 MILLIONS USD $405.7M Dividends Paid $400.0 $116.3 $115.3 $340.2M $117.2 9.6M $300.0 $264.5M $108.8 $591.6 $208.2M Shares Repurchased $200.0 $101.1 $117.6M $97.0 $3
Slide 8: Acquisitions/Partnerships
Acquisitions/Partnerships • Targets － Aligns with or expands our core competencies － Unique/proprietary technology or capabilities － Extends current product portfolio and offerings － Creates opportunities in new verticals • Recent Acquisitions/Partnerships － Mayo Clinic – Partnership – 2019 － PayByC
Slide 9: Product Video
Product Video <GENTEX INVESTOR OVERVIEW> 9
Slide 10: Core Competencies
CORE COMPETENCIES • Existing Core Competencies －Electronics & Microelectronics －Vision Systems, Cameras, & Optics －Software Design －Chemistry & Coatings －Automated Assembly －Glass Processing • Developing Core Competencies: －Driver Monitoring & Cabin Monitoring －Nano-sensing －Advanced Coatings & Film
Slide 11: Competitive Advantages
COMPETITIVE ADVANTAGES • Distinct Products and Locations • Superior Quality • Strong Intellectual Property • Dominant Market Share • Unique Fusion of Technologies <GENTEX INVESTOR OVERVIEW> 11
Slide 12: Our Technology Platforms
OUR TECHNOLOGY Platforms Dimmable Devices Vision Systems Connectivity Sensing <GENTEX INVESTOR OVERVIEW> 12
Slide 13: Dimmable Device Platform
DIMMABLE DEVICE Platform • Strategy －Leverage our market-leading position in dimming technology to accelerate growth in aerospace, auto, and new markets • Core Competencies / Competitive Advantages －Chemistry & Coatings －Glass Processing －Distinct Products and Location －Superior Quality －Strong IP －
Slide 14: Vision System Platform
VISION SYSTEM Platform • Strategy －Continue our long tradition of mirror growth in emerging markets while growing digital content opportunities in developed regions • Core Competencies / Competitive Advantages －Electronics & Microelectronics －Software Design －Chemistry & Coatings －Glass Processing －
Slide 15: Connectivity Platform
CONNECTIVITY Platform • Strategy －Combine existing HomeLink RF technology with cloud-based functionality and transactional capability to provide car-to-home and car-to-infrastructure solutions • Core Competencies / Competitive Advantages －Electronics & Microelectronics －Software Design －Strong IP －U
Slide 16: Sensing Platform
Sensing PLATFORM • Strategy －Expand our sensing technologies through development and acquisition to grow in new and existing markets • Core Competencies / Competitive Advantages －Electronics & Microelectronics －Vision Systems, Cameras, & Optics －Software Design – Machine Learning and AI －Automated A
Slide 17: ESG Performance
ESG Performance • Updates －2022 Sustainability Report • [Link] －Sustainability Page on Gentex website • [Link] －Carbon Reduction & Neutrality Goals • 5-Year (2026) – 15% below 2020 levels • 10-Year (2031) – 40% below 2020 levels • 20-Year (2041) – 70% below 2020 levels • 2049 – Carbon Neutral －Landf
Slide 18: New Video
New Video <GENTEX INVESTOR OVERVIEW> 18
Slide 19: Thank you
Thank you • For more information, visit －ir.Gentex.com －Gentex.com －fulldisplaymirror.com <GENTEX INVESTOR OVERVIEW> 19