Download - 2011 CVGI Annual Meeting Presentation

8/3/2019 2011 CVGI Annual Meeting Presentation

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Good Afternoon and Welcome to the

Commercial Vehicle Group, Inc.

2011 Annual Meeting of Stockholders


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WelcomeThe Year in Review / Moving Ahead

Managing for the Future

Financial ReviewClosing

Questions

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Agenda


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Over the past year, and in preparation for continued growth andsuccess, we focused on:

Continuing to diversify our products, end markets and customersImproving our capital structure

$25 million equity offering in Q1 2010 $250 million bond offering in April 2011

Investing in global expansion

Saltillo, Mexico Beijing, China

Realigning our manufacturing footprint through facility consolidationsAchieving new business awardsCapitalizing on our variable cost structure and improving our bottom lineStrategic acquisitions and new market opportunities

Bostrom Seating Exploring India Opportunities Exploring Brazil Opportunities

The Year in Review


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CVG continued to be a diversified global leader, with a balancedproduct, market and customer portfolio:

The Year in Review

2010


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CVG has a well positioned capital structure for the future:

First Quarter 2010: public offering of common stock 4.37 million shares

Priced at $6.25 per share

CVG received approximately $25.4 million of net proceeds fromthe offering

$21.4 million cash tax refund during the second quarter of 2010

$250 million bond offering in April 2011 at 7.875% (due in 2019)

Stock Offering + Tax Refund + Revolver Capacity + Bond Offering

= Strong Balance Sheet / Liquidity

Year in Review and Moving Ahead


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Moving Ahead - Global Expansion Saltillo, Mexico


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Moving Ahead - Global Expansion Beijing, China


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Daimler Trucks North America(DTNA) Seats, Flooring, InteriorComponents

Beiqi Foton Motor CoTruck Seats ($30m sales at fullproduction)

XCMGSeat Supplier ($4-6m sales)

John DeereWire Harnesses for ExcavatorsManufactured in China ($4-4.5msales)

HinoSeat Supplier for Medium-duty TrucksManufactured in North America ($2-3m sales)

Skoda Auto

Wire Harnesses ($14-17m sales)

Moving Ahead - New Business Success

Strong Pipeline of New Business Achievements


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Managing for the Future - Continuous Improvement and GrowthMoving forward, our focus will remain on:

Capitalizing on Strong End Market Recovery and Growth Truck/ConstructionGeographic Diversification organic & acquisition

Mexico Opportunities

China Opportunities

India Opportunities Brazil Opportunities

U.S. Opportunities

End Market Diversification - organic & acquisition

Investment in Technology


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Indicators Support Ongoing Recovery Significant Opportunity For Global Growth

Early stages of penetration into large Asiancommercial vehicle market

Growth opportunities in Asia with strongproduction volumes

Continued growth in China

Opportunity in other emerging markets (India,Russia, South America, etc.)

New business wins with new and existingcustomers

Managing for the Future End Market Growth Opportunity

ROW12%

NA12%

Europe

15%

Asia61%


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Managing for the Future - End Market Growth Opportunity

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2009 2010 2011 2012 2013 2014 2015

North America Europe Asia South America

837 860937

1,038 1,144

1,2471,326

Medium / Heavy Duty Equipment Sales(Represents cranes & movers and earthmoving equipment in thousands of units)

09-15CAGR

12.3%

8.4%

6.6%

6.6%

8.0%

CVG Construction End Market SalesHeavy truck

40 %

Construction

23%

Aftermarket

14%

Military

9%

Other

10 %

Agriculture 1%

Bus 3%

Favorable End Market Trends

Improving tone in key U.S. and European constructionmarkets supported by strong order rates

Exceptional growth in emerging markets, particularlyChina, Brazil, Middle East and India

Significant equipment requirements to improve / replaceaging infrastructure globally

Broader equipment usage / recovery across end markets(e.g., industrial, oil and gas, power and mining)

Source: Millmark Associates (January 2011)Note: Revenue breakdown based on 2010 results.


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Managing for the Future - Global and Expanding FootprintMedium\ Heavy Truck Production 2010 | 2015 All Regions

Opportunity Focus:ChinaIndiaBrazilMexico

U.S.AJapanEurope

* Based on Market Research Untapped Medium / Heavy Truck Markets represent CVGs largest opportunity for content through 1.3M vehicles in China, 384K vehicles in India and 230K vehicles in Brazil by 2015


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Managing for the Future - Global and Expanding FootprintMedium\ Heavy Construction Production 2010 | 2014 All Regions

Opportunity Focus:ChinaIndiaBrazilU.S.A

JapanEurope

* Based on Market Research Construction market growth from 2010 to 2014 shows China and India as CVGs largest opportunity to increase content along with continued focus on North American increased content and Western Europe and Japan


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Opportunity Focus:ChinaIndiaBrazilU.S.A

JapanEurope

* Based on Market Research Agriculture market growth from 2010 to 2014 represent CVGs largest opportunity for content through 762K vehicles in China and 640K vehicles in India, along with continued focus onincreasing North American content and growth in Brazil, Europe and Japan

Managing for the Future - Global and Expanding FootprintAgriculture Equipment Production 2010 | 2014 - All Regions


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Managing for the Future - Becoming A Technology Leader

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Global Engineering Support

Acoustics and Thermal Systems Development

Material and Process Development

Advanced Testing Services

Dedicated 37,500 sq.ft. facility

Design and Visualization Studio

Three Secure Customer Project Bays

Concept Development and Realization

Physical and Rapid Prototyping

Benchmarking and ReverseEngineering

Innovative, Industry Leading Products

Arm RestExtended Position

Advanced Seating

Innovative Design and R&D Capabilities


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Financial Overview


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Historical Financial Overview


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Financial Review

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Global industry recession continued tochallenged the business through 2009 withsigns of recovery in 2010 and in early 2011

Continued improvement in financial results ona sequential quarter-over-quarter basis lasteight quarters

Continue to drive culture of entrepreneurship,innovation and employee engagement to

improve our bottom lineFocus on strategic efforts during downturn:

Diversification

Profit improvement goals across organization

Actions during 2009 and 2010 demonstratesignificant progress towards CVGs long-termfinancial goals


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Financial Review - Strong Liquidity and Maturity Profile

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Strong Balance Sheet & Liquidity

Q1 2010 Equity OfferingQ2 2010 Tax Refund

April 2011 $250 million bond offering:

Reduced overall cost of debt to 7.875%

Simplified capital structure Maintains modest leverage level, positioned to improve with cycle rebound

3/31/2011 Pro forma available liquidity of approximately $130 million

Amended and upsized ABL to $40M with no availability block

Significantly extends maturity profile

Positioned well to capitalize on growth plans and strategic initiatives


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Acquisition ofBostrom Seating

Saltillo, Mexicoexpansion Beijing, China

expansion

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Pursue additional new business and conquest business wins

Continue to monitor competitors operating in a distressed state for additional opportunities

Invest in new processes or capabilities

Pursue strategic, add-on acquisitions to augment strategic initiatives

Capitalize on track record integration and performance

Sale of Monona Medical Harness

Acquisition of CIEB Groundbreaking of CVG Corporate Headquarters

Acquisition of National

Seating Acquisition of Sprague

Device (Prutsman /Motomirror)

Acquisition of KAB Seating

Acquisition of

R-Squared Acquisition of Tempress,

Inc.

CVG Initial PublicOffering

Opening of CVGShanghai

Acquisition of Short Bark

Industries Acquisition of Gage Acquisition of PEKM

Acquisition of ASC, Inc. Acquisition of Landmark Industries Formation of Trim Systems

Acquisition of

Mayflower Acquisition of Monona Acquisition of Cabarrus

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Financial ReviewTrack Record of Disciplined, Successful Investment & Growth Strategy


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Appendix23


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Historical Non-GAAP MeasuresAdjusted EBITDA and Adjusted Operating Income

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Non-GAAP MeasuresReconciliation to Adjusted Operating Income

2005 2006 2007 2008 2009 2010 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 6/30/10 9/30/10 12/31/10 3/31/11

Operating Income 89.5$ 97.5$ 18.8$ (191.4)$ (89.7)$ 16.7$ (18.4)$ (22.2)$ (7.8)$ (41.2)$ 3.6$ 2.6$ 5.1$ 5.4$ 8.1$

Long-lived asset impairment - - - - 17.3 - - 3.4 - 13.8 - - - - -

G oodw il l and intangi bl e as se t i mpai rm ent - - - 207.5 30.1 - - 7.0 - 23.1 - - - - -

Restructuring Charges - - 1.4 - 3.7 1.7 1.7 0.2 - 1.7 - 1.4 0.2 0.2 0.3

Adjusted Operating Income 89.5$ 97.5$ 20.3$ 16.1$ (38.6)$ 18.4$ (16.7)$ (11.6)$ (7.8)$ (2.6)$ 3.6$ 4.0$ 5.3$ 5.5$ 8.4$

Source: Company filings

Fiscal Year Ending December 31 Fiscal Quarter Ending

Download - 2011 CVGI Annual Meeting Presentation

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