Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Sidoti Virtual Small-Cap Investor Conference September 2024
20 slides from Commercial Vehicle's conference presentation, Sep 19, 2024
Slide 1: Sidoti Virtual Small-Cap Investor Conference
Sidoti Virtual Small-Cap Investor Conference James Ray – President & Chief Executive Officer September 19, 2024 Andy Cheung – Executive Vice President & Chief Financial Officer
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: CVG At A Glance
CVG At A Glance Seating GLOBAL TIER 1 SUPPLIER Electrical Systems OVERVIEW Vehicle • 2023 Revenue: $995M Solutions Electrical 56% Systems 27% • 2023 FY Adj. OI $51M 2023 • 2023 FY Adj. EBITDA 6.8% Plastics Revenue Aftermarket Parts Composition* • ~8,200 Employees Aftermarket & • Founded in 2000 Acce
Slide 4: CVG's Unique Customer Value Proposition
CVG’s Unique Customer Value Proposition Deliver Real Solutions Design & Engineering o Providing complete full vehicle o Custom design capabilities to connectivity solutions meet customer needs o Specialized, custom systems o Speed and product engineering designed to meet strict customer helps our cu
Slide 5: Key Strategic Actions Strengthen Value Proposition
Key Strategic Actions Strengthen Value Proposition ACTIONS TAKEN STRATEGIC RATIONALE Sale of Cab Structures and FinishTEK • Reduce Class 8 exposure and cyclicality by balancing customer Portfolio concentration Realignment • Improves capital efficiency and business complexity Strategic Review of Indu
Slide 6: CVG Revenue Breakdown
CVG Revenue Breakdown FY23 Revenue = $995M FY23 Revenue* = $835M As Reported Adjusted Electrical Electrical Segment Systems Systems 23% 27% Vehicle Aftermarket & Solutions Accessories Vehicle Aftermarket & 59% 14% Solutions Accessories 56% 16% Industrial Automation 4% Heavy End Market Heavy Truck Tr
Slide 7: Business Segment Overview
Business Segment Overview Segment Key Product Categories/Brands Key End Markets Vehicle • Seating Systems HD / MD Trucks Construction Agriculture Solutions • Plastics Bus & Van Military & Defense Recreational • Cable and Wire Electrical Harness Assemblies Construction Agriculture HD / MD Trucks Syst
Slide 8: Key End Market Outlooks Support Long-Term Growth
Key End Market Outlooks Support Long-Term Growth NA Class 8 Heavy Truck Build CVG is Managing to Global Mega Trends ACT Research is forecasting a weaker 2024/2025 followed by strong growth 340 349 Onshoring/Re-industrialization 315 316 -7% -11% 280 +25% • Strategically located facilities to support
Slide 9: Capital Allocation Focus
Capital Allocation Focus Near-term Focus Future Potential Internal Debt Opportunistic Return Cash to Investment Repayment M&A Shareholders • Annual capital spending of • Target leverage ratio of • Look for opportunities to • Additional avenue to create 2-3% of revenue 1.5 – 2.0x increase growth prof
Slide 10: Financial Review
Financial Review Sidoti Virtual Small-Cap Investor Conference - 10
Slide 11: Segment Financial Summary – 2020-2023
Segment Financial Summary – 2020-2023 All values are in millions of dollars Revenue Adjusted Operating Income 600 50 40 400 30 20 200 10 0 0 2020 2021 2022 2023 2020 2021 2022 2023 Vehicle Solutions Electrical Systems Aftermarket Industrial Automation Vehicle Solutions Electrical Systems Aftermarket
Slide 12: First Half 2024 Results
First Half 2024 Results CONSOLIDATED RESULTS ($M) Commentary Revenue • Revenue in the first half of 2024 pressured by: $525 $462 ✓ Decline in Class 8 truck builds year-over-year ✓ Accelerated softening in construction and agricultural demand ✓ Wind-down of certain programs in Vehicle Solutions • Pro
Slide 13: Fiscal 2024 Outlook
Fiscal 2024 Outlook 2024 Revenue Guidance Mid-Point Walk ($M) FY24 CVG Outlook ($M) $900 - $960 Adjusted Current 2024 Metric Current 2024 Outlook $730 - $780 Outlook(1) ($140) ($35) Net Sales $900 – $960 $730 – $780 Strategic decision to exit two businesses Adjusted EBITDA $42 - $52 $28 – $36 (1) Th
Slide 14: CVG Key Investment Highlights
CVG Key Investment Highlights 1 Secular trends driving growth in total addressable market 2 Focused on growing our global Electrical Systems business 3 Strategic actions underway to improve operational efficiency and underlying profitability 4 Stronger operating leverage in anticipated end market re
Slide 15: Questions
Questions Sidoti Virtual Small-Cap Investor Conference - 15
Slide 16: Appendix
Appendix Sidoti Virtual Small-Cap Investor Conference - 16
Slide 17: 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 18: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures (in millions) FY 2023 FY 2022 Operating Income/(Loss) 48.1 20.1 Restructuring 2.3 5.4 HW Inventory adjustment - 10.4 Deferred consideration purchase accounting - 0.3 Executive transition 0.8 0.3 Adjusted Operating Income 51.1 36.6 % of Revenues 5
Slide 19: Segment GAAP to Non-GAAP QTD
Segment GAAP to Non-GAAP QTD For the Twelve Months Ended Dec 31, 2023 Vehicle Electrical Industrial (in millions) Solutions Systems Aftermarket Automation Corporate Total Operating Income/(Loss) 42.0 26.3 19.0 (1.4) (37.9) 48.1 Restructuring 0.8 0.0 - 0.5 1.0 2.3 Executive transition - - - 0.8 0.8 A
Slide 20: Segment GAAP to Non-GAAP QTD
Segment GAAP to Non-GAAP QTD For the Twelve Months Ended Dec 31, 2021 Vehicle Electrical Industrial (in millions) Solutions Systems Aftermarket Automation Corporate Total Operating Income/(Loss) 23.6 14.6 12.1 23.6 (24.3) 49.6 Deferred consideration purchase accounting - - - 0.6 - 0.6 Executive Tran
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