Attached files
| file | filename |
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| 8-K - FORM 8-K - Commercial Vehicle Group, Inc. | d819248d8k.htm |
 Baird
Industrial Conference 2014 Richard Lavin –
President and CEO
Tim Trenary –
Chief Financial Officer
Patrick Miller –
President of Global Truck and Bus
Ulf Lindqwister –
Chief Administrative Officer
Exhibit 99.1 |
 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 Company’s 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 Company’s initiatives
to address customer needs, organic growth, the Company’s economic growth plans to focus on
certain segments and markets and the Company’s 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 Company's ability to
develop or successfully introduce new products; (iii) risks associated with conducting business
in foreign countries and currencies; (iv) increased competition in the medium and heavy-duty truck,
construction, aftermarket, military, bus, agriculture and other markets; (v) the Company’s
failure to complete or successfully integrate strategic acquisitions; (vi) the impact of
changes in governmental regulations on the Company's customers or on its business; (vii) the
loss of business from a major customer or the discontinuation of particular commercial vehicle
platforms; (viii) the Company’s ability to obtain future financing due to changes in the lending
markets or its financial position; (ix) the Company’s ability to comply with the financial
covenants in its revolving credit facility; (x) the Company’s ability to realize the
benefits of its cost reduction and strategic initiatives; (xi) a material weakness in our
internal control over financial reporting which could, if not remediated, result in material misstatements
in our financial statements; (xii) volatility and cyclicality in the commercial vehicle market
adversely affecting us; and (xiii) various other risks as outlined under the heading "Risk
Factors" in the Company's Annual Report on Form 10-K for fiscal year ending December
31, 2013. There can be no assurance that statements made in this presentation 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. |
 Our
Focus is to Drive Profitable Organic Growth •
We will invest in products and capabilities that will
strengthen our right-to-win with our core products in our
end markets
•
We will consider opportunistic acquisitions to address
gaps in our product portfolio and to enhance serving our
end markets & customers
•
We intend to achieve sales and earnings targets
commensurate with companies delivering top-quartile
total shareholder returns
pg | 3
STRATEGY |
 REGIONS
END-
MARKETS
CORE PRODUCTS
COMPLEMENTARY
PRODUCTS
NA
Seats
Trim
Wire
Harnesses
Mirrors
Office Seats
Structures
Wipers
Truck
X
X
Construction
X
X
X
Agriculture
X
X
X
Bus
X
X
Aftermarket
X
X
EMEA
Truck
X
Construction
X
X
Agriculture
X
X
Bus
X
Aftermarket
X
APAC
Truck
X
X
Construction
X
X
Agriculture
X
X
Bus
X
X
Aftermarket
X
•
Focus on core, value accretive
businesses
•
Prioritize investment in core products
•
Hire and develop difference-making
talent across the product lines
–
Product line management
–
Engineers
–
Sales
–
Manufacturing management
•
Build / enhance our right to win
–
Design and engineer innovative products
–
Next generation product plans
–
Global supply chain management
–
Operational excellence / Lean Six Sigma
•
CVG Sales Playbook
–
OEM coverage / participation / closure plans
at customer product family, product, and
program level
–
“Sell the House”
Prioritized Opportunities | Focused on Core
Products | Driving Disciplined Execution
CVG Business Portfolio
Regions, End-Markets and Products
Action Plan for Core Products
STRATEGY
pg | 4
•
Better support our customers globally |
 CVG
has about 5% share of the addressable market – significant opportunity
to drive profitable organic growth across our end markets and penetrate our
addressable market with current products
•
Available Market
1
| $27B
•
Addressable Market
2
| $13B
pg | 5
$5M
$3.5B
$3.2B
$5.6B
Truck
$5.0B
$416M
Construction
$176M
$2.6B
$2.8B
Bus
$1.2B
$2.9B
Agriculture
2013 Sales
Addressable Market
White Space
$32M
Source:
Company data, LMC + Millmark research reports
1
Available market = Universe of applications / platforms available for product
portfolio 2
Addressable market = Subset of available market for which products are currently
available or product plans are in place 3
Does not include approximately $118M in sales of complementary products
$10.6B
$6.7B
$4.1B
$5.4B
MARKET SHARE
Our Opportunity is Significant
3 |
 Sales
and Operating Income Margin SELECTED FINANCIAL RESULTS
Q1
Q2
Q3
Q4
Q1
Q2
Sales
(millions)
OIM
Adjusted
OIM
Sales
2014
2013
(0.2)%
1.1%
2.3%
(1.8)%
2.1%
4.4%
4.2%
2.8%
3.4%
See
appendix
for
reconciliation
of
GAAP
to
non-GAAP
financial
measures
–
adjusted
OIM
OI Margin
5%
4%
3%
1%
2%
0%
(1)%
(2)%
(3)%
Q3
4.6%
4.5% |
 QUESTIONS AND
DISCUSSION |
 APPENDIX |
 RECONCILIATION OF GAAP TO NON-
GAAP FINANCIAL MEASURES
Adjusted Operating Income Reconciliation
pg | 9
TOT_CVG_LOB
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
$ (000's)
Net Sales
177,822
198,909
187,942
183,045
198,071
215,996
213,802
Cost of Sales
159,737
176,035
169,852
162,364
173,767
187,811
185,376
Gross Profit
18,085
22,874
18,090
20,681
24,304
28,185
28,426
SGA
17,949
20,339
21,135
12,288
18,472
18,748
18,333
Amortization
409
404
383
384
384
390
388
Operating Income
(273)
2,131
(3,428)
8,009
5,448
9,047
9,705
Operating Income Margin
(0.2)%
1.1%
(1.8)%
4.4%
2.8%
4.2%
4.5%
2013 Special Items
RIF
(1,800)
Third-Party Consulting Services
(2,800)
Asset Impairment
(2,700)
CEO Change
(2,500)
2014 Special Items
Tigard / Dublin Closure
(500)
(100)
(200)
Loss on Sale of Building
(800)
Adjusted Operating Income
(273)
4,631
3,872
8,009
6,748
9,147
9,905
Adjusted Operating Income Margin
(0.2)%
2.3%
2.1%
4.4%
3.4%
4.2%
4.6% |