Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Commercial Vehicle Group, Inc. | a8kdeutschebankroadshowfin.htm |
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, 2015. 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.
pg | 1
$825M 2015 Sales
22 Facilities
9 Countries
Global Presence
pg | 2
North America
11 facilities
Europe
5 facilities
Asia-Pacific
6 facilities
Products
Seats & Seating
Systems
Cabs and Sleeper BoxesWiper Systems,
Mirrors & Controls
Wire Harnesses &
Controls
Interior Trim
pg | 3
$825 Million 2015 Sales
pg | 4
78%
12%
10%
Region
N. America
EMEA
APAC
49%
18%
4%
1%
16%
12%
End Market
OEM Truck
OEM Construction
OEM Bus
OEM Agriculture
Aftermarket
Other
41%
22%
19%
11%
7%
Product
Seats
Trim
Wire Harnesses
Structures
Wipers/Motors
20%
18%
11%8%
7%
6%
30%
Customer
Volvo
Daimler
Paccar
Caterpillar
Navistar
John Deere
All Other
2015 Business Segment Sales¹
70%
15%
6%
2%
7%
Global Truck and Bus
$565 Million
MD/HD Truck
OEM
Aftermarket/OES
Bus OEMs
Construction
OEMs
Other
5…
16%
14%
5%
3%
3%
7%
Global Construction and Agriculture
$272 Million
Construction
Aftermarket/OES
Auto
Truck
Agriculture
Military
Other
pg | 5
1. Before intercompany sales eliminations
Strategies to Improve the Core
Operational Improvement Margin Impact
18% Fewer Sales
pg | 6
Optimizing North American capacity utilization and facility footprint
Changes are announced and underway – complete by the end of 2017
Leveraging global buy, increasing standardization, and localizing supply
Institutionalizing Lean/Six Sigma
2016 goal 400 belts
To date, 447 belts granted
Investing in:
Dry Urethane process and material
technology
Large tonnage injection molding
Trim design
Realigned executive leadership 18% Fewer Sales
See appendix for reconciliation of GAAP to non-GAAP financial measures
18% Fewer
Sales
Winning next generation business
Launching seat, trim, and/or cab structures for most major North American Truck
OEMs in 2017 and 2018
Landed next gen global off-road seat programs
Enhancing off-road equipment seating product line
Two phase product development for large and medium equipment
Launching foam in place seat line
Expanding in India
Developed modular driver seat for truck, bus and off-road vehicles
Winning with domestic customers – JCB, Eicher, Komatsu, and TATA
Established engineering center for global engineering support
Expanding into agriculture with seating, trim, and wire harnesses
Landed ~ $13 million in new agriculture business since 2015; ramping 2016-2017
Wire harnesses - $33 million in new business wins this year
Improved manufacturing capacity utilization and low cost flexibility
Growing off-road in Europe
Entering new markets – agriculture, truck (powertrain) and power generation
M&A
Actively reviewing opportunities
pg | 7
Strategies for Growth
FINANCIAL UPDATE
Financial Results
pg | 9
ACT outlook for medium
and heavy duty truck
production (000’s)*
Class 8 Class 5-7
* Source: ACT Research
See appendix for reconciliation of GAAP to non-GAAP financial measures
Business Segments¹
pg | 10
(Dollars in millions)
Global
Truck & Bus
Global
Construction
& Agriculture
Sales 112.1 68.5
Gross Profit 14.4 10.3
Margin 12.9 % 15.0 %
SG&A 5.6 4.8
Operating Income 8.5 5.5
Margin 7.6 % 8.0 %
Adjusted Operating Income 8.8 5.7
Margin 7.9 % 8.3 %
Three Months Ended June 30, 2016
1. Before intercompany sales eliminations
See appendix for reconciliation of GAAP to non-GAAP financial measures
(Millions) 2013 2014 2015
LTM
Q2 2016
Principal $ 235
Debt $ 250 $ 250 $ 235 $ 235 Interest 7.875%
Cash 73 70 92 124 Due April 2019
Net Debt $ 177 $ 180 $ 143 $ 111 April 2016 Redemption 102%
Post April 2016 Redemption7 100%
EBITDA $ 27 $ 52 $ 56 $ 49
Leverage:
Debt / EBITDA 9.3 X 4.8 X 4.2 X 4.8 X Commitment $ 40
Net Debt / EBITDA 6.6 X 3.5 X 2.6 X 2.3 X Availability $ 37
Letters of Credit $ 3
Liquidity: Accordion Feature $ 35
Cash $ 124
ABL $ 40
Less: LOC $ (3) Moody's B2 / Stable
S&P B / Stable
$ 161
Senior Secured Notes
Asset Based Credit Facility
Agency Ratings
See appendix for reconciliation of GAAP to non-GAAP financial measures
Capital Structure
pg | 11
Capital Allocation: 1.) liquidity 2.) growth 3.) de-leverage 4.) return capital to shareholders
GAAP to Non-GAAP Reconciliation
APPENDIX
GAAP to Non-GAAP Reconciliation
Adjusted Operating Income Reconciliation
pg | 13
2016
(Dollars in millions) Q2 FY Q2
Sales 217.6 825.3 178.2
Cost of Sales 188.1 714.5 153.9
Gross Profit 29.5 110.8 24.3
SG&A 17.6 71.5 15.6
Amortization 0.3 1.3 0.3
Operating Income 11.6 38.0 8.4
Margin 5.3 % 4.6 % 4.7 %
Special Items:
Restructuring 0.5 2.3 0.5
Adjusted Operating Income 12.1 40.3 8.9
Margin 5.5 % 4.9 % 5.0 %
2015
EBITDA Reconciliation
GAAP to Non-GAAP Reconciliation
pg | 14
(Dollars in millions) 2013 2014 2015
LTM Q2
2016
Operating Income 6.4 33.7 38.0 32.2
Depreciation 19.0 16.7 16.4 16.0
Amortization 1.6 1.5 1.3 1.3
EBITDA 27.0 51.9 55.7 49.5
GAAP to Non-GAAP Reconciliation
Business Segment Adjusted Operating Income Reconciliation
pg | 15
Three Months Ended June 30, 2016
(Dollars in millions)
Global Truck
& Bus
Global
Construction
& Agriculture
Operating Income 8.5 5.5
Special Items
Restructuring 0.3 0.2
Adjusted Operating Income 8.8 5.7
Margin 7.9% 8.3%