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8-K - 8-K - Commercial Vehicle Group, Inc. | d637682d8k.htm |
Exhibit 99.1
CVG
Commercial Vehicle Group, Inc.
INVESTOR PRESENTATION
December | 2013
FORWARD LOOKING STATEMENT
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 press release may contain forward-looking statements about Company expectations for future periods with respect to its plans to improve financial results and enhance the Company, the future of the Companys end markets, Class 8 North America build rates, performance of the global construction equipment business, expected cost savings, enhanced shareholder value and other economic benefits of the consulting services, the Companys initiatives to address customer needs, organic growth, the companys growth plans to focus on certain segments and markets and the Companys financial position or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to: (i) general economic or business conditions affecting the markets in which the Company serves; (ii) the Companys ability to develop or successfully introduce new products; (iii) risks associated with conducting business in foreign countries and currencies; (iv) increased competition in the heavy-duty truck, construction, aftermarket, military, bus, agriculture and other markets; (v) the Companys failure to complete or successfully integrate strategic acquisitions; (vi) the impact of changes in governmental regulations on the Companys customers or on its business; (vii) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; (viii) the Companys ability to obtain future financing due to changes in the lending markets or its financial position; (ix) the Companys ability to comply with the financial covenants in its revolving credit facility; (x) the Companys ability to realize the benefits of its cost reduction and strategic initiatives; and (xi) various other risks as outlined under the heading Risk Factors in the Companys Annual Report on Form 10-K for fiscal year ending December 31, 2012. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements Need to identify each forward-looking statement in the release.
COMMERCIAL VEHICLE GROUP. INC.
2
CVG PRODUCT MIX
SEATING
WIRE HARNESSES & PANEL ASSEMBLIES
TRIM
CAB STRUCTURES & PANELS
MIRRORS, WIPERS & CONTROLS
42%
21%
20%
10%
7%
CVG an industry leader as a global supplier to the commercial vehicle industry.
Percentages shown based on 2012 Revenues
COMMERCIAL VEHICLE GROUP. INC.
3
CVG GLOBAL FOOTPRINT
OHIO
R&D
Corporate HQ Int | Ext Trim Stampings
IOWA
Wire Harness Assy
UNITED
KINGDOM
Seat Manufacturing
INDIANA
Wiper Systems Motors
OREGON
Int | Ext Trim
TENNESEE
Seat Manufacturing
Northampton, UK
Liberec, GZ
LViv, UKR
Brandys, CZ
CZECH REPUBLIC
Seat Manufacturing Wire Harness Assy
UKRAINE
Seat Assy
VIRGINIA
Interior Trim
Dalton, GA Piedmont, AL
MEXICO
Seat Assembly Wire Harness Assy
Baska Pune
Dharwad
INDIA
Seat Assembly
ALABAMA
Seat Manufacturing
Tigard. OR
Michigan City. IN Monona, IA Edgewood, IA
Vonore. TN Agua Prieta MX
Saltillo MX
GEORGIA
Trim Finishes
NORTH
CAROLINA
Stampings Interior Trim
Dublin VA Concord, NC Kings Mountain, NC
New Albany, OH Chillicothe, OH Shadyside, OH
CHINA
Seat Assembly Wire Harness Assy
AUSTRALIA
Seat Assembly Seat Manufacturing
Shanghai
Beijing
Mackay
Brisbane
Perth
Sydney
Melbourne
COMMERCIAL VEHICLE GROUP. INC.
4
UPDATE
New Management
Evaluated the Company and Business
Reorganized the Leadership Team
Identified Key Initiatives Going Forward
Moving from Evaluation to Execution
COMMERCIAL VEHICLE GROUP, INC.
5
ORGANIZATIONAL CHART
PRESIDENT & CEO
Rich Lavin
PRESIDENT CONSTRUCTION AG & MILITARY
Kevin Frailey
PRESIDENT TRUCK, BUS
Pat Miller
PRESIDENT AFTERMARKET & STRUCTURES
Timo Haatanen
CHIEF FINANCIAL OFFICER
Tim Trenary
CHIEF HR & PUBLIC RELATIONS OFFICER
Laura Macias
GENERAL COUNSEL
Brent Walters
MANAGING DIRECTOR EUROPEAN MARKETS
Open
MANAGING DIRECTOR ASIA PACIFIC MARKETS
Geoff Perich
CHIEF INFORMATION OFFICER
Bob Averitt
CHIEF TECHNOLOGY OFFICER
Paul Bennett
COMMERCIAL VEHICLE GROUP, INC.
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OPPORTUNITIES AND INITIATIVES
North American Truck Market
Construction Equipment Growth Globally
China/India Market Growth
New Product Development
Design to Value Local Market Needs
Manufacturing Footprint
M & A Analysis
Organizational Audit Costs and Excellence
COMMERCIAL VEHICLE GROUP, INC.
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GROWTH OPPORTUNITIES
CONSTRUCTION*
(Build)
NORTH AMERICA
74,545 80,950 88,370
2013F 2014F 2015F
* Source: Millmark Q2 2013
CHINA
333,655 365,525 406,745
2013F 2014F 2015F
AGRICULTURE*
(Build)
NORTH AMERICA
97,605 108,860 118,030
2013F 2014F 2015F
* Source: Millmark Q2 2013
CHINA
589,595 626,915 669,715
2013F 2014F 2015F
Construction Market
North American Truck Market
Agricultural Market
TRUCK | CLASS 8*
(Build)
NORTH AMERICA
252,399 280,826 293,791
2013F 2014F 2015F
CHINA
772,199 927,567 979,000
2013F 2014F 2015F
* Source: Act Research - North America
COMMERCIAL VEHICLE GROUP, INC.
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UPDATE
China represents an opportunity that is at least:
4X in Construction
6X in Agriculture
3+X in Truck
Compared to North America
CVG Commercial Vehicle Group, Inc.
COMMERCIAL VEHICLE GROUP, INC.
9
FINANCIAL
OVERVIEW
Tim Trenary
CVG
Commercial Vehicle Group, Inc.
AGRICULTURE
CONSTRUCTION
TRUCK
SCHOOL BUS
BUS
COMMERCIAL VEHICLE GROUP, INC.
10
FINANCIAL OVERVIEW
Sales / Operating Income Margin
(thousands)
2012
Operating Income Margin Sales
2013
250,000
200,000
150,000
100,000 50,000
$ 236,990
$ 242,745
Q1
Q2
$ 204,824
Q3
$ 173,357
Q4
$ 177,822
Q1
$ 198,909
Q2
$ 187,942
Q3
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
7.8% 7.8% 4.3% -1.3% -0.2% 1.1% -1.8%
Operating
Income
Margin
COMMERCIAL VEHICLE GROUP, INC.
CVG Commercial Vehicle Group, Inc.
11
FINANCIAL OVERVIEW
Address the Cost Structure
Manufacturing Capacity
Operational Excellence
SG&A
Enhance Margins
COMMERCIAL VEHICLE GROUP, INC.
CVG Commercial Vehicle Group, Inc.
12
FINANCIAL OVERVIEW
Scale / Leverage the Cost Structure Grow Organically / Diversify - Geography - End Markets - Customer Base - Products
Operating Leverage / Diminish Cyclicality
COMMERCIAL VEHICLE GROUP, INC.
CVG
Commercial Vehicle Group, Inc.
13
FINANCIAL OVERVIEW
Deploy Capital Manufacturing Footprint Facilities and Equipment Product Innovation
COMMERCIAL VEHICLE GROUP, INC.
CVG
Commercial Vehicle Group, Inc.
14
FINANCIAL OVERVIEW
Capital Structure Senior Notes
- $250M
- 7.875%
- Due April 2019
ABL
- $40M Commitment - Amended November 2013 - Expires Nov. 2018
Liquidity
Cash
- $75M (9/30/13)
ABL
- $35M Accordion - $30M Availability
$7.5M Block
$2.8M LOCs
COMMERCIAL VEHICLE GROUP, INC.
CVG
Commercial Vehicle Group, Inc.
15
CVG
Commercial Vehicle Group, Inc.
AGRICULTURE
CONSTRUCTION
TRUCK SCHOOL BUS
BUS
QUESTIONS
Wrap-Up
COMMERCIAL VEHICLE GROUP, INC.
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