Matthews International Corporation · NASDAQ:MATW
Matthews International — Q3 2021 Earnings Presentation
34 slides from Matthews International's earnings presentation, Aug 19, 2021
Slide 1: Investor Presentation Third Quarter Fiscal Year 2021
INVESTOR PRESENTATION THIRD QUARTER FISCAL YEAR 2021 © 2021 Matthews International Corporation. All Rights Reserved.
Slide 2: Disclaimer
© 2021 Matthews International Corporation. All Rights Reserved. 2 DISCLAIMER Any forward-looking statements contained in this presentation are included pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and
Slide 3: Business Overview
BUSINESS OVERVIEW © 2021 Matthews International Corporation. All Rights Reserved.
Slide 4: Founded in 1850: Rooted in Identification Products
© 2021 Matthews International Corporation. All Rights Reserved. 4 FOUNDED in 1850 • Marking Products • Printing Plates • Bronze Plaques ROOTED IN IDENTIFICATION PRODUCTS TODAY • Industrial Technologies • SGK Brand Solution • Memorialization
Slide 5: Fiscal 2020 Segment Sales
© 2021 Matthews International Corporation. All Rights Reserved. 5 Fiscal 2020 SEGMENT SALES (% of Total ) SGK Brand Solutions 46% Industrial Technologies 10% Memorialization 44%
Slide 6: Global Products and Services Sales Across Diverse Businesses
© 2021 Matthews International Corporation. All Rights Reserved. GLOBAL PRODUCTS AND SERVICES SALES ACROSS DIVERSE BUSINESSES (FY2020) 6 AMERICAS EUROPE ASIA- PACIFIC / OTHER ~11,000 EMPLOYEES | 6 CONTINENTS | OVER 25 COUNTRIES NASDAQ LISTED – 31.6M Shares outstanding as of June 30, 2021 70% 26% 4%
Slide 7: © 2021 Matthews International Corporation. All Rights Reserved.
© 2021 Matthews International Corporation. All Rights Reserved.
Slide 8: Core Packaging Services
© 2021 Matthews International Corporation. All Rights Reserved. 8 PRINTED PACKAGING SKU’s BRAND CREATIVE & DESIGN BRAND ASSETS, CLIENT & LEGAL INPUTS PACKAGING LAYOUT, PRODUCTION ART & COLOR SEPARATION COLOR CONTROL & PRINT TOOLING CORE PACKAGING SERVICES
Slide 9: Tooling Expertise: Taking Ideas to Finished Products
© 2021 Matthews International Corporation. All Rights Reserved. • Saueressig is leading global designer and supplier of rotary tools for non-woven materials: ◦ Printing ◦ Texturing ◦ Converting • Growth opportunities in purpose-built equipment and engineered solutions for energy storage and other ap
Slide 10: SGK Brand Solutions: Servicing Global and Regional Clients
© 2021 Matthews International Corporation. All Rights Reserved. SGK BRAND SOLUTIONS FOOD/BEVERAGE CLIENTS GLOBAL PHARMA / HEALTHCARE CLIENTS GLOBAL RETAILER CLIENTS OTHER LEADING BRANDS 10 SERVICING GLOBAL AND REGIONAL CLIENTS • Longstanding relationships with a large, blue chip customer base consis
Slide 11: Reserved.
© 2021 Matthews International Corporation. All Rights Reserved.© 2021 Matthews International Corporation. All Rights Reserved.
Slide 12: Memorialization Products
© 2021 Matthews International Corporation. All Rights Reserved. PRODUCTS Cemetery Products Bronze Memorials - #1 Granite Memorials - #1 North America, Italy, Australia 12 Funeral Home Products Caskets - #2 United States Cremation and Incineration Equipment Cremation Equipment - #1 Global Market Posi
Slide 13: Stability in Memorialization
© 2021 Matthews International Corporation. All Rights Reserved. 13 STABILITY IN MEMORIALIZATION Sales of Cremation Products Cremation related sales continue to grow with cremation trend** ** Includes incineration products. * * *Company 2020 estimates. Data compiled from CDC, US Census Bureau, Indust
Slide 14: Reserved.
© 2021 Matthews International Corporation. All Rights Reserved.© 2021 Matthews International Corporation. All Rights Reserved.
Slide 15: Product Identification
© 2021 Matthews International Corporation. All Rights Reserved. Source: Technavio Report (May 2017) 15 PRODUCT IDENTIFICATION New Technology Improved Reliability + 75% lower cost of ownership + Reduced downtime Continuous Inkjet 46% Laser 15% Print & Apply 11% Drop on Demand 28% New Market Opportuni
Slide 16: Warehouse Automation and Applied Technologies
© 2021 Matthews International Corporation. All Rights Reserved. 16 Autonomous Vehicle Navigation The market looks to Matthews as a trail blazer for applying robotics in fulfillment and distribution applications. Industrial’s Pyramid unit introduced a new warehouse execution solution, Continuous Inte
Slide 17: ESG Leadership
© 2021 Matthews International Corporation. All Rights Reserved. 17 ESG LEADERSHIP BRINGING ENVIRONMENTALLY RESPONSIBLE SOLUTIONS TO THE MARKETPLACE • Provider of Energy storage solutions including battery production technology for electric vehicles • Waste-to-Energy solutions with projects in UK and
Slide 18: © 2021 Matthews International Corporation. All Rights Reserved.
© 2021 Matthews International Corporation. All Rights Reserved.
Slide 19: Value Creation
© 2021 Matthews International Corporation. All Rights Reserved. 19 DEBT REDUCTION • Continued reduction in Net Debt Leverage Ratio(1), targeting 3X or less ORGANIC • Leverage existing capability in new markets and geographic regions • Cost structure improvements • New product development ACQUISITION
Slide 20: Consolidated Results
© 2021 Matthews International Corporation. All Rights Reserved. 20 CONSOLIDATED RESULTS (Dollars in thousands, except per share data) Fiscal Year Ended September 30, Year to Date June 30, 2018 2019 2020 2020 2021 (unaudited) (unaudited) Consolidated Sales $ 1,602,580 $ 1,537,276 $ 1,498,306 $ 1,099,
Slide 21: Segment Operating Results
© 2021 Matthews International Corporation. All Rights Reserved. 21 SEGMENT OPERATING RESULTS (Dollars in thousands) Fiscal Year Ended September 30, Year to Date June 30, 2018 2019 2020 2020 2021 Sales: (unaudited) (unaudited) SGK Brand Solutions $ 805,274 $ 743,869 $ 693,093 $ 513,515 $ 538,879 Memo
Slide 22: Free Cash Flow Yield
© 2021 Matthews International Corporation. All Rights Reserved. 22 FREE CASH FLOW YIELD (Dollars in thousands) Fiscal Year Ended September 30, 2018 2019 2020 Cash Provided from Operating Activities $ 147,574 $ 131,083 $ 180,447 Less: Capital Expenditures (43,200) (37,688) (34,849) Free Cash Flow $ 1
Slide 23: Earnings Per Share (EPS)
© 2021 Matthews International Corporation. All Rights Reserved. 23 EARNINGS PER SHARE (EPS) Note: See Disclaimer (Page 2) for Management’s assessment of supplemental information related to non-GAAP adjusted EPS. (1) Non-GAAP adjusted EPS reflects certain adjustments to facilitate comparability and e
Slide 24: Sales and Total Adjusted EBITDA
© 2021 Matthews International Corporation. All Rights Reserved. 24 SALES AND TOTAL ADJUSTED EBITDA Note: See Disclaimer (Page 2) for Management’s assessment of supplemental information related to total adjusted EBITDA. (1) Total adjusted EBITDA is defined by the Company as earnings before interest,
Slide 25: Capital Allocation Priorities
© 2021 Matthews International Corporation. All Rights Reserved. 25 Debt Reduction • Continued reduction in Net Debt Leverage Ratio* to 3.1 • Near-term focus of cash flow and continued debt reduction Cash Dividend • $0.21 per share quarterly for FY2020 • $0.215 per share for Q3 FY2021 Invest in Growt
Slide 26: Institutional Shareholders
© 2021 Matthews International Corporation. All Rights Reserved. 26 INSTITUTIONAL SHAREHOLDERS Shares June 30, 2021 BlackRock, Inc. 5,360,162 The Vanguard Group, Inc. 3,400,822 Dimensional Fund Advisors, L.P. 1,555,273 Aristotle Capital Boston, LLC 1,101,211 State Street Corporation 1,057,654 Gamco I
Slide 27: Appendices
APPENDICES © 2021 Matthews International Corporation. All Rights Reserved.
Slide 28: COVID-19 Impacts
© 2021 Matthews International Corporation. All Rights Reserved. 28 COVID-19 IMPACTS MATTHEWS IS A CRITICAL SUPPLIER • Safeguarding our employees is top priority • Continuing operations as an essential supplier • Meeting demand with virtual information technology enabled environment – globally COMMER
Slide 29: Common Stock Price
© 2021 Matthews International Corporation. All Rights Reserved. 29 COMMON STOCK PRICE Note: Stock price obtained from NASDAQ for each respective month-end period. $30.73 $29.82 $38.08 $43.89 $48.97 $60.76 $62.25 $50.15 $35.39 $22.36 $35.96 9/30/2011 9/30/2012 9/30/2013 9/30/2014 9/30/2015 9/30/2016
Slide 30: Total Adjusted EBITDA Non-GAAP Reconciliation
© 2021 Matthews International Corporation. All Rights Reserved. TOTAL ADJUSTED EBITDA NON-GAAP RECONCILIATION (Unaudited) * See Disclaimer (page 2) for Management’s assessment of supplemental information related to adjusted EBITDA. 30 (In thousands, except per share data) Fiscal Year Ended September
Slide 31: Adjusted Net Income and Earnings Per Share Non-GAAP Reconciliation
© 2021 Matthews International Corporation. All Rights Reserved. ADJUSTED NET INCOME AND EARNINGS PER SHARE NON-GAAP RECONCILIATION (Unaudited) * See Disclaimer (page 2) for Management’s assessment of supplemental information related to adjusted net income and adjusted EPS. 31 (In thousands, except p
Slide 32: Appendix C: Additional Segment Information
© 2021 Matthews International Corporation. All Rights Reserved. 32 APPENDIX C ADDITIONAL SEGMENT INFORMATION SUPPLEMENTAL ASSET DATA (Dollars in thousands) (unaudited) SGK Brand Solutions Memorialization Industrial Technologies Corporate and Non-Operating Total Fiscal 2020 Operating assets (1) $ 372
Slide 33: Net Debt and Net Debt Leverage Ratio Non-GAAP Reconciliation
© 2021 Matthews International Corporation. All Rights Reserved. * See Disclaimer (page 2) for Management’s assessment of supplemental information related to net debt and net debt leverage ratio. 33 (Dollars in thousands) Fiscal Year Ended September 30, June 30, (unaudited) 2018 2019 2020 2021 Long-t
Slide 34: © 2021 Matthews International Corporation. All Rights Reserved.
© 2021 Matthews International Corporation. All Rights Reserved.
Matthews International — Q3 2021 Earnings Presentation on 6ix