Ct Automotive Group Plc · LSE:CTA

Ct Automotive — H1 2022 Earnings Presentation

26 slides from Ct Automotive's earnings presentation, September 2022

Slide 2: Presentation team
Presentation team Presentation team Simon Phillips Scott McKenzie David Wilkinson Stuart Lorraine Executive Chairman Chief Executive Officer Chief Financial Officer Chief Operations Officer © 2022 CT Automotive Group Ltd. All rights reserved PAGE 1
Slide 5: Highlights
HIGHLIGHTS • Revenues ahead in H1, production recovery gaining momentum New plant in Mexico • Revenues ahead of the Board's expectations at c.$57 million • Continued market stabilisation • Customer schedules more stable and strengthening • Supply chain issues starting to be resolved • Container rate
Slide 7: Continued progress against our growth plans
STRATEGIC AND OPERATIONAL HIGHLIGHTS Continued progress against our growth plans Growth plan Current status Expansion: • Mexico facility ahead of schedule, lines are running trial production volumes and customer Expanding in Europe and a move into Mexico supply is starting within September • Czech R
Slide 8: Visibility increasing
STRATEGIC AND OPERATIONAL HIGHLIGHTS Visibility increasing • Return towards stability in demand seen in Q4 2021 continued through H1 Impact of semi-conductor shortage on global automotive production volumes 2022. H1 2022 was expected to be a period of lower demand, continuing from H2 2021 as the sem
Slide 9: UK plant closure
STRATEGIC AND OPERATIONAL HIGHLIGHTS UK plant closure • UK plant has always been non-core but retained to support UK customers despite low level of added value compared to core operations • Inflationary pressures in the UK are significant and labour shortages have created a challenging market to sec
Slide 10: China update
STRATEGIC AND OPERATIONAL HIGHLIGHTS China update China lockdowns and air freight China cost stability • China continues to operate its “Zero COVID” policy • There remain some key competitive advantages in China: • This means borders effectively remain closed and lockdowns are put in place o In gene
Slide 11: Improvement initiatives being delivered
STRATEGIC AND OPERATIONAL HIGHLIGHTS Improvement initiatives being delivered H1 2022 Inventory spend cost Tactical approach focused on downs low hanging fruit post IPO / pandemic and during customer volume recovery phase. Logistics Make vs buy centre studies Internal cost improvements Transfers from
Slide 12: Improvement initiatives being delivered
STRATEGIC AND OPERATIONAL HIGHLIGHTS Improvement initiatives being delivered Raw Customer material payment price terms escalation reduction Bought Out Energy Supplier Parts price Tooling prices payment escalation amortisation terms pull forward extension Inflation Cash Flow based improvements custom
Slide 14: Financial Review: Income Statement
FINANCIAL REVIEW Income Statement • Revenue ahead of expectation, albeit production schedules continued to be impacted by wider automotive supply chain issues. • H1 reported profit behind expectation for the following reasons: o IAS 29; this is a new standard required to be applied due to hyperinfla
Slide 15: Financial Review: Balance Sheet
FINANCIAL REVIEW Balance Sheet • The completion of the IPO transformed CT’s Balance Sheet in December 2021, removing all amortising term debts and keeping only vanilla working capital facilities. • Trade receivables and associated debt reduced substantially after the period end with receipt of a lar
Slide 17: FY22 on track despite challenging Q2 market backdrop
OUTLOOK AND SUMMARY FY22 on track despite challenging Q2 market backdrop – accelerating volumes in FY23 Light vehicles: 2022 global production volumes (S&P Global Mobility forecasts – July 2022) • CT’s trading performance has historically outperformed the global production volume trends. Similar to
Slide 18: Summary
OUTLOOK AND SUMMARY Summary • H1 revenues ahead of the Board’s expectations, driven by 19.3% increase in production revenue • Continued market stabilisation, with schedules showing a recovery of volumes in H2, supply chain issues starting to recover and container rates out of China continuing to red
Slide 20: Overview of CT
OVERVIEW OF CT Specialist supplier of interior kinematic systems and finishers CT Automotive offers two principal services: • ED&D – Full Engineering Design and Development of complex kinematic interior components. • Production – Lean efficient vertically integrated manufacturing of interior compone
Slide 21: Investment Case
INVESTMENT CASE EXPERIENCED MANAGEMENT TEAM NICHE MARKET WITH HIGH BARRIERS TO ENTRY INNOVATIVE BUSINESS MODEL EMBEDDED RELATIONSHIPS WITH GROWING BLUE CHIP CLIENT BASE; EXPANDING SHARE OF WALLET TRACK RECORD OF PROFITABLE GROWTH WITH FORWARD VISIBILITY OF REVENUES MULTIPLE DRIVERS OF GROWTH ACCELER
Slide 22: Product Range
PRODUCT RANGE 6. HVAC 4. Mechanical assemblies CT specialises in 2k tooling A wide range of kinematic 5. Light guides manufacture and production assemblies with the supply of Ambient light guides supplied supply of cabin comfort system deployable cup holders, by CT’s class 10,000 clean components, i
Slide 23: Customers
CUSTOMERS Strong reputation with both OEMs and Tier 1 customers across the industry OEMs Volume brands Premium brands Electric vehicles Tier 1 Suppliers > 15 years > 10 years > 5 years Newest Customers © 2022 CT Automotive Group Ltd. All rights reserved PAGE 22
Slide 24: Board Structure
BOARD STRUCTURE Simon Phillips Scott McKenzie David Wilkinson Founder & Chairman Chief Executive Officer Chief Financial Officer Ray Bench Francesca Ecsery Tracey James Independent NED Independent NED & Chair of SID & Chair of Audit Committee Remuneration Committee © 2022 CT Automotive Group Plc. Al
Slide 25: Management team with long term growth track record
Management team Management team with long term growth track record Simon Phillips Scott McKenzie David Wilkinson Stuart Lorraine Executive Chairman Chief Executive Officer Chief Financial Officer Chief Operations Officer ▪ Simon co-founded CT in 2000, having ▪ Scott joined CT from Magna Intier in •

CT Automotive Group — H1 2022 Earnings Presentation on 6ix

Ct Automotive — H1 2022 Earnings Presentation

Slide 1: H1 2022 Results Presentation

Slide 2: Presentation team

Slide 3: Agenda

Slide 4: 1. Highlights

Slide 5: Highlights

Slide 6: 2. Strategic and Operational Highlights

Slide 7: Continued progress against our growth plans

Slide 8: Visibility increasing

Slide 9: UK plant closure

Slide 10: China update

Slide 11: Improvement initiatives being delivered

Slide 12: Improvement initiatives being delivered

Slide 13: 3. Financial Review

Slide 14: Financial Review: Income Statement

Slide 15: Financial Review: Balance Sheet

Slide 16: 4. Outlook and Summary

Slide 17: FY22 on track despite challenging Q2 market backdrop

Slide 18: Summary

Slide 19: Appendices

Slide 20: Overview of CT

Slide 21: Investment Case

Slide 22: Product Range

Slide 23: Customers

Slide 24: Board Structure

Slide 25: Management team with long term growth track record

Slide 26: PAGE 25