Eastern Company (the) · NASDAQ:EML
Eastern Company (the) — Investor Presentation (January 2021)
21 slides from Eastern Company (the)'s investor presentation, Jan 12, 2021
Slide 1: The Eastern Company Investor Presentation January 2021
The Eastern Compai Investor Presentation January 2021
Slide 2: Forward-looking statements
‘Statements in this document about our Ste expectations, belief, goals, Jans or prospects courtateforwardlocking statements within the Reform Act of 1995 and the rules, regulations and releases of the meaning ofthe safe harbor provisions ofthe Private Secures Lie Secunties and Exchange Commision, An
Slide 3: Non-GAAP financial measures
“This prevention cde Adjued igs Por Shane, Adjusted EBITDA. ad Fee Cah Flow and catain rain aod thr atic derived tare ous, Adjusted EBITDA is et sac before iatres aces, depection aad aotzation and on-eecuring eos nd expenses, These os-GAAP fanaa manures ae not manus of fnncilperermance in acordance
Slide 4: Compelling Value Creation
Compelling Value Creation Allocate capital te maximize retums to shareholders Maintain 2 strong balance sheet with ample flexibility EN Ol Grow and build scale sn our three core businesses capitalizing on accelerators Generate cash flow from more efficient and less capital intensive ‘operations
Slide 5: Our three core businesses
Leading provider ofe tumkey packaging as well as blow mold and injection blow mold tooling serving diverse murkets, achuding: truck, automotive packaged consumer goods and pharmaceuticals, Global manufacturer and designer of access hardware systems, providing custom-engineered industrial vehicular a
Slide 6: Long sales cycles and program life
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Slide 7: Net Sales and sales growth
Net Sales 2015-2018 Sates growth (S muilhions) (Percent of growth) 2517-487 2343 S146 1376 2015 2016-—«2017-=«08~—«2019—+2020 LIM
Slide 8: Focus on Cash generation
Focus on Cash generation (S millions) 28% CAGR 2018, 2019 LTM2020"*
Slide 9: Capital Efficiency
apital Efficienc 2015.2019 change free exh Net working capa Capital atensty flow" Paceat fin Dace peg enh ot sons sea 302%
Slide 10: Big 3 Precision: Capitalizing on New Product Launches
Big 3 Precision: Capitalizing on New Product Launches [iS Si ee AE 6 Q 8 Retumable Packaging + Industry leader in retumable packaging solutions for manufacturers + Highly engin cred, value-added product offering + Manufacturing automation requires integrated material, idling systems. requency of new
Slide 11: Eberhard Manufacturing: Digitizing Vehicular Hardware
anufacturing: Digitizing jar Hardware + Industry leader in domestic vehicular hardware solutions for conmmercial vehicle and vehicle accessory nufacturers uring sales from participation in leading OEM + Highly engineered, value-added product offering, supported by one of the largest hardware enginee
Slide 12: Velvac: Leader in commercial vehicle vision systems
Leader in commercial vehicle vision system design and production. Strong recurring sales to very long-term commercial vehicle programs — average program life more than 10 years. Well positioned to continue to grow and consolidate vision system opportunities. New electric truck expanding the market f
Slide 13: A Bias For Action
A Bias For Action January 2017 2016 New August ‘August Viak leadership April2017 June 2018 2019, Sppouted appouted at Acquisition Acquistion Acquistion President & Eberhard” «of elvac’—ofoadN of Big3 CEO sodILC Tne, Lock Precision 2019 September May 201 May2016- Jane 2017 ¢ Barngton New Russell Barn
Slide 14: Build scale, invest in M&A, goal of $100 million EBITDA
J _ Build scale at Big 3 Precision including synergies with Hallink) and at Eberhard (combination with Illinois Lock) fnvest in compelling M&A growth opportunities, seeking additional bolt-on acquisition opportuni Our goal to become a $100 million EBITDA company Ramp organic growth by taking advanta
Slide 15: Financial Summary FY 2016 to LTM 10/2020
Financial Summary —FY 2016 to LTM 10/2020 Smullin 2020 FY2016 © FY2017_, = FY2018.— FY 2019 ae LTM Sales $1376 $2042 $2343 $2517, SM87 2015-17 ey-0-y growth (48%) 484 14.7% 75% 3.8% eae ae (Gross Profit 8363 $510 $587 S619 $58.7 sales, 26.4% 25.0% 25.1% 24.6% 23.6% Net Income S78 50 sus $133 90 sale
Slide 16: Balance sheet
ance sheet Goodall Other Ttangibles, Other (Our balance sheet remains strong. Based on our extensive scenario planning. we believe that Eastem’s balance sheet has ample resources to navigate the current business enviroument. As of October 3, 2020, our net leverage ratio is 2.90. and ous fixed charge
Slide 17: Reconciliation of GAAP to Non-GAAP EPS
Slide 18: Reconciliation of Expenses from GAAP to Non-GAAP EBITDA
Slide 19: Reconciliation of Free Cash Flow
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Slide 20: Notes to reconciliation
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Slide 21: The Eastern Company contact details