Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Sidoti & Company 2017 Fall Convention
21 slides from Commercial Vehicle's conference presentation, Sep 28, 2017
Slide 1: Commercial Vehicle Group, Inc. September 2017
Patrick Miller President and CEO Commercial Vehicle Group, Inc. Tim Trenary Chief Financial Officer September 2017 Terry Hammett Treasurer and VP Investor Relations
Slide 2: Forward Looking Statements
Forward Looking Statements 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 may con
Slide 3: Global Presence
23 Facilities Global Presence 9 Countries 2016 sales $662M NASDAQ CVGI United Kingdom Czech Republic Ukraine Belgium Ohio China India Mexico Australia North America 12 facilities Europe 5 facilities Asia Pacific 6 facilities pg | 2
Slide 4: Products
Products Seats & Seating Wire Harnesses & Systems Controls Interior Trim Wiper Systems, Cabs and Sleeper Boxes Mirrors & Controls pg | 3
Slide 5: 2016 Sales - $662 Million
2016 Sales - $662 Million Region End Market 11% OEM Truck 14% 11% OEM Construction N. America 42% 18% OEM Bus EMEA OEM Agriculture APAC 2% 5% 78% Aftermarket 19% Other Product Customer 6% Volvo 9% 17% Seats Daimler 39% 42% Wire Harnesses Paccar 20% 15% Trim Caterpillar Structures John Deere 10% Wipe
Slide 6: 2016 Business Segment Sales
2016 Business Segment Sales¹ Global Truck and Bus Global Construction and Agriculture $416 Million (62%) $254 Million (38%) 3% 2% 7% Construction 9% MD/HD Truck OEMs 5% Aftermarket and 8% Aftermarket and OE Service 8% Automotive OE Service 47% Bus OEMs Truck 19% 14% 62% Military Construction OEMs Ag
Slide 7: Industry Outlook – North America Truck
Industry Outlook – North America Truck North American Truck Build Rates 2016 CVG Sales by End Market (‘000s of units) Other 228 251 279 294 291 250 281 14% 2016A 2017E 2018E 2019E 2020E 2021E 2022E Aftermarket OEM Truck 42% Heavy-Duty Truck (Class 8) * 18% 258 271 265 275 250 251 OEM 2% 233 5% Agric
Slide 8: Industry Outlook – Global Construction
Industry Outlook – Global Construction Global Sales of Construction Equipment 2016 CVG Sales by End Market (‘000s of units) 1,325 1,330 1,303 Other 1,267 CAGR 202 199 195 14% 1,090 190 5.1% 160 181 183 188 171 5.6% 21 21 22 22 OEM Truck 151 1.2% Aftermarket 42% 21 260 273 274 268 4.5% * 18% 225 OEM
Slide 9: Strategies to Improve the Core
Strategies to Improve the Core Restructuring plan announced November 2015 SG&A reductions fully implemented in 2016 Remaining operational changes – expect completion by end of 2017 Process investments Proprietary automated processes for interior trim in North America Updated high volume
Slide 10: Examples of CVG Digital Actions
Examples of CVG Digital Actions Built-in Quality – Digital error proofing and smart processes Virtual Wiring Boards for high proliferation Real time 18% Fewer process Sales monitoring 18% Fewer Sales and data Digital design and validation 18% Fewer Sales tracking speeds product development pg | 9
Slide 11: Improving the Foundation
Improving the Foundation Institutionalizing Lean Culture Optimizing Reducing Manufacturing Working Capital Footprint Stronger CVG Digital Performance Cost Focus to lower Actions Break-Even throughout the cycle Customer Support Investing in 18% Fewer Innovation Sales 18% Fewer Sales Next Gen Product
Slide 12: Targets for Growth
Targets for Growth 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. Launching trim for new Volvo, Daimler and Mack Trucks in 2017. New off-road seating product lines Construction and Ag seats available now (“S
Slide 13: Finance Update
COMMERCIAL VEHICLE GROUP, INC Finance Update
Slide 14: Financial Results
Financial Results (Dollars in millions) Q2 2016 Q2 2017 Sales $ 178.3 $ 195.1 Market improvement Gross Profit $ 24.3 $ 22.7 MX labor shortage — $4 million Q2 '17 impact Margin 13.6 % 11.6 % SG&A $ 15.6 $ 14.8 5% improvement Operating Income $ 8.4 $ 7.6 Margin 4.7 % 3.9 % Adjusted Operating Income $
Slide 15: Business Segments
Business Segments1 Three Months Ended June 30, 2017 Global Global Construction & (Dollars in millions) Truck & Bus Agriculture Sales $ 119.9 $ 78.2 Gross Profit $ 17.1 $ 5.9 MX labor shortage — $4 million Q2 '17 impact Margin 14.2 % 7.6 % SG&A $ 5.7 $ 4.0 Operating Income $ 11.1 $ 1.9 Margin 9.2 % 2
Slide 16: Capital Structure
Capital Structure LTM Q1 LTM Q2 1 (Dollars in millions) 2017 2017 New Term Loan1 Principal Balance $ 175 Debt $ 235 $ 175 Interest Rate LIBOR + 600 Less: Cash 119 52 Maturity April 2023 Net Debt $ 116 $ 123 Interest Rate Swap $ 80 Adjusted EBITDA $ 44 $ 45 Interest Rate 8.07% Maturity April 2022 Adj
Slide 17: Commercial Vehicle Group, Inc. September 2017
Patrick Miller President and CEO Commercial Vehicle Group, Inc. Tim Trenary Chief Financial Officer September 2017 Terry Hammett Treasurer and VP Investor Relations
Slide 18: Appendix GAAP to Non-GAAP Reconciliation
Appendix GAAP to Non-GAAP Reconciliation
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Adjusted Operating Income Reconciliation Q2 Q2 (Dollars in millions) 2016 2017 Operating Income $ 8.4 $ 7.6 Margin 4.7 % 3.9 % Special Items: Restructuring & Related 0.5 0.9 Adjusted Operating Income $ 8.9 $ 8.4 Margin 5.0 % 4.3 % pg | 18
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation EBITDA & Adjusted EBITDA Reconciliation LTM LTM (Dollars in millions) Q1 2017 Q2 2017 Net Income $ 4.8 $ 2.3 Interest Expense 19.3 21.9 Tax Provision (Benefit) (1.7) (1.8) Depreciation 14.7 14.5 Amortization 1.3 1.3 EBITDA $ 38.4 $ 38.2 Restructuring & Related 4.3 4.7
Slide 21: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Business Segment Adjusted Operating Income Reconciliation Three Months Ended June 30, 2017 Global Global Truck Construction (Dollars in millions) & Bus & Agriculture Operating Income $ 11.1 $ 1.9 Margin 9.2 % 2.5 % Special Items: Restructuring & Related 0.9 Adjusted O
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