Commercial Vehicle Group, Inc. · NASDAQ:CVGI
Commercial Vehicle — Colliers NDR (February 2022)
23 slides from Commercial Vehicle's conference presentation, Feb 8, 2022
Slide 1: CVG "We Find A Way" Colliers NDR
Exhibit 99.1 CVG “We Find A Way” Colliers NDR February 8, 2022
Slide 2: 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”, “continue”, “likely”, and similar expressions. In particular,
Slide 3: Management in Attendance Today
Management in Attendance Today 3 Harold Bevis President, CEO, Director of CVG 7 years with company - Director since 2014, CEO since 2020 17 years as a CEO, President, Director Experienced at growth, cashflow, ROIC, debt paydown, portfolio balancing Chris Bohnert Chief Financial Officer and Investor
Slide 4: CVG at a Glance
CVG is a global provider of components, assemblies and systems to the commercial vehicle market, the electric vehicle market, and the warehouse automation market 2021 Q3 LTM Sales ~$960 million 2021 Q3 LTM Adj. EBITDA $73 million ~7,800 Employees High Growth Markets Electric Vehicles, Fuel Cell Vehi
Slide 5: CVG Products & Services
February 2022 Investor Presentation| 5 Plastics, Thermoforming, Injection Molding Electric Vehicle Systems Automated Warehouses Trucks / On-road Powersports, ATVs Delivery Vans CVG Products & Services Value Added Products Integrated into Large Systems Customer End Products Automation Systems Seating
Slide 6: CVG Investment Thesis
6February 2022 Investor Presentation | • Have won 300+ new programs with 100+ customers in first 2 years of a new growth program – and nearly 70% is with Electric Vehicles & Warehouse Automation • Winning in Electric Vehicles, Fuel Cell Vehicles, Warehouse Automation, Value Added Products CVG Invest
Slide 7: Base Transportation Business is Strong But Bumpy due to OE Part Shortages
214 256 301 363 0 50 100 150 200 250 300 350 400 2020 2021 2022 2023 7February 2022 Investor Presentation| Base Transportation Business is Strong But Bumpy due to OE Part Shortages ⚫ eCommerce increasing truck miles & first mile/middle mile/last mile complexities ⚫ North America transportation incre
Slide 8: Strong New End Markets
8February 2022 Investor Presentation| Strong New End Markets NA Truck Builds NA Truck Builds Electric Vehicles, Fuel Cell Vehicles o Government regulation and company environmental initiatives are driving electric vehicle and fuel cell vehicle adoption o New market entrants looking for technical exp
Slide 9: Electric Vehicles
9February 2022 Investor Presentation| Electric Vehicles Low Voltage Systems Electric drive train Low voltage historical build to print business High and low voltage system designs with additional electrical product opportunities Internal Combustion Engines Electric Vehicle o Vehicle evolution and ma
Slide 10: Warehouse Automation
10February 2022 Investor Presentation| Warehouse Automation NA Truck Builds o Growing customer roster & value proposition o Expanding footprint o Europe – new facility open in Czech Republic to serve warehouse automation market. Have first orders for 2022 o Vertical Integration objectives for 2022 o
Slide 11: 2022 Initiatives
11February 2022 Investor Presentation| 2022 Initiatives NA Truck Builds NA Truck Builds Optimize Core Business Walk Away, Reprice Simplify Global Supply Chains 3rd Year Vertically integrate Win New Business Debt Paydown FCF Business Model
Slide 12: CVG is Winning New Diversified Business
February 2022 Investor Presentation| 12 Notes: 1) Vehicle wins are ~18 month ramp-ups and 5-7 year estimated duration with aftermarket 2) Warehouse Automation wins are ~3 month ramp-ups and 3 year estimated duration • Two consecutive years of net new business wins of $100M+ • Electric Vehicles are >
Slide 13: Over $350 million / year of net New Business Awards Over Past Two Years
February 2022 Investor Presentation| 13 Over $350 million / year of net New Business Awards Over Past Two Years New Wins Customer Diversification CVG is winning new business primarily in Electrical Systems and Warehouse Automation with new customers
Slide 14: Debt Reduction is a New Go-Forward Goal
14February 2022 Investor Presentation| Debt Reduction is a New Go-Forward Goal • Targeting to pay down $25-40 million of debt in 2022 • Leverage ratio estimated to further decline • CVG is cash generative. Through 9 months in 2021, CVG invested $81 million ➢ $70 million in working capital to support
Slide 15: Investment Highlights
15January 2022 Investor Presentation| Investment Highlights ⚫ Strong core market growth coupled with strong growth in EV market and warehouse automation ⚫ CVG has already transformed on a pro-forma basis into an electrical and electronics business ⚫ CVG will optimize it’s business portfolio tied to
Slide 16: The Road Ahead
The Road Ahead ⚫ $300m/yr of new business won in the first 2 years ⚫ Focus areas are: Electric Vehicles, Fuel Cell Vehicles, Warehouse Automation, Value-Added Products February 2022 Investor Presentation| 16 ⚫ Transportation equipment is needed & in short supply ⚫ Global supply chains impacting CVG
Slide 17: Financial Update
Financial Update January 2022 Investor Presentation| 17
Slide 18: CVG Sales and Adjusted Operating Income Margin
18February 2022 Investor Presentation| CVG Sales Adjusted Operating Income Margin 3.8% -2.8% 6.4% 3.8% 6.5% 6.5% 5.1% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 187 127 188 216 245 258 240 - 50 100 150 200 250 300 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 (1) Zero
Slide 19: Electrical Systems Sales and Adjusted Operating Income Margin
19January 2022 Investor Presentation| Electrical Systems Sales Adjusted Operating Income Margin 112 74 121 139 162 175 164 - 20 40 60 80 100 120 140 160 180 200 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 5.6% -1.0% 11.1% 7.4% 9.3% 10.7% 10.9% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Q1 20 Q2 20 Q3
Slide 20: Global Seats Sales and Adjusted Operating Income Margin
February 2022 Investor Presentation| Global Seats Sales Adjusted Operating Income Margin 76 54 69 79 91 85 76 - 10 20 30 40 50 60 70 80 90 100 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 6.0% 3.9% 7.4% 2.7% 6.1% 5.9% 0.6% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21
Slide 21: Last Twelve Month EBITDA Reconciliation
21February 2022 Investor Presentation| Last Twelve Month EBITDA Reconciliation (in millions) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Net income $ (4.1) $ 8.5 $ 5.1 $ 7.5 Interest 5.2 5.0 2.8 1.6 Provision / (Benefit) for Income Taxes 3.9 2.5 1.5 2.4 Depreciation 3.8 3.8 3.8 3.7 Amortization 0.9 0.9 0.9 0.9
Slide 22: Facts About CVG's Stock
February 2022 Investor Presentation| 22 ⚫ CVG is just beginning a transformation ⚫ CVGI enterprise value multiple is at 5.8x and is trading at a discount to its peers ⚫ Strong markets, many new business wins, front-end of a new optimization program ⚫ Global supply chains will provide a few bumps alo
Slide 23: Thank You
Thank You
Commercial Vehicle Group — Colliers NDR (February 2022) on 6ix