Core Molding Technologies Inc · AMEX:CMT
Core Molding Technologies — Non-Deal Roadshow (October 2022)
21 slides from Core Molding Technologies's roadshow presentation, October 2022
Slide 1: West Coast Non-Deal Roadshow Investor Presentation
West Coast Non-Deal Roadshow INVESTOR PRESENTATION October 2022 1
Slide 2: Disclaimers
DISCLAIMERS This presentation, our remarks, and answers to questions may contain forward-looking statements within the meaning of the federal securities laws. As a general matter, forward-looking statements are those focused upon future plans, objectives or performance as opposed to historical items
Slide 3: Presenters
PRESENTERS Dave Duvall John Zimmer President and CEO EVP, CFO and Treasurer 3
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Leading Composite • Large diversified customers and industries Manufacturer • Manufacturing footprint: U.S.(3), Mexico (2), Canada (1) • Total addressable composite market $15+ billion Growing Industries • Few competitors, high barriers to entry • Distinct Competitive Advantage
Slide 5: Company Overview at a Glance
COMPANY OVERVIEW AT A GLANCE The most reliable, innovative and responsive partner in engineered materials and manufacturing solutions: SOLUTION | INNOVATION | MANUFACTURING Founded in Headquartered in 1980 Columbus, Ohio NYSE American Employees CMT 1,600 Major Customer Relationships Fiscal Year 2021
Slide 6: Large, Diversified Customers & Industries
LARGE, DIVERSIFIED CUSTOMERS & INDUSTRIES Building Products | Industrial/Utilities | Power Sports | Transportation • Long-term relationships with blue-chip companies 13% 13% • Diverse industries 6% 12% 3% • Single-source manufacturing arrangements 14% 27% All Others • Key customers in industries wit
Slide 7: Strategic Manufacturing Footprint
STRATEGIC MANUFACTURING FOOTPRINT Monterrey Winona Columbus, OH Gaffney, SC Winona, MN 7.0% Cobourg 6.0% Gaffney 32.0% 9.0% 2021 Cobourg, Canada Monterrey, Mexico Matamoros, Mexico Product Sales* (by facility) Floor Space Square Feet (in 000's) 20.0% 478 338 Columbus 26.0% 274 Matamoros 140 87 61 Ma
Slide 8: $15+ Billion Total Addressable Market
$15+ Billion Total Addressable Market (1) Consumer Products Truck Automotive Building Industrial & Packaging (Select Opportunities) Products Utilities $0.9B $0.6B $0.3B $0.3B $5.8B $2.6B $1.9B $2.3B Grow Grow Defend Defend Grow Grow Grow Grow Technical solutions applying engineered materials to expa
Slide 9: Distinct Competitive Advantages
DISTINCT COMPETITIVE ADVANTAGES Large portfolio of processes & materials Engineered materials and innovation processes to create optimal custom solution Large installed asset base and facility footprint Single source provider Engineered materials providing wide range of weight, performance & recycla
Slide 10: Distinct Competitive Advantages
DISTINCT COMPETITIVE ADVANTAGES Market Applications Why They Choose Core Building Products Durability Cost savings Lattice, Decking, Cabinets Material substitution Corrosion resistance Industrial/Utilities Cost savings Part consolidation Water & Power Distribution Weight reduction Strength-to-weight
Slide 11: Technical Solutions Team
TECHNICAL SOLUTIONS TEAM Value Proposition Customer Benefit Applications Concrete Structural Foam • Lower Total Cost Conversion Expertise • Light-weighting • Improve performance Integrated Material Development & • Unique solutions – Designed from DLFT Hull material formulation to final production Ad
Slide 12: Technical Solutions Team
2 TECHNICAL SOLUTIONS TEAM Research & Development Speed-to-Market • Material experts with functionality and • Additive compression molds long-lasting performance • Design simulation and testing • Ultra-light materials • Unique prototyping expertise • Material and process integration • Robust launch
Slide 13: Leveraging Existing Strengths
LEVERAGING EXISTING STRENGTHS Diverse Deep Strategic Products & Expertise Footprint Processes • 40 years of structural • Sole-source provider • Existing asset base -high plastics manufacturing • Most diverse process barriers to entry • 20 years manufacturing offering in industry • Large in-place cap
Slide 14: Proven Operational and M&A Expertise
PROVEN OPERATIONAL AND M&A EXPERTISE Dave Duvall John Zimmer Eric Palomaki Renee Anderson Chris Highfield • President and CEO • Executive VP, CFO • Executive VP of • Executive VP of • Executive VP of and Treasurer Operations, R&D Human Resources Sales • Industry Experience • Industry Experience • In
Slide 15: Selected Financial Information
SELECTED FINANCIAL INFORMATION dollars in millions, except per share amounts • Record sales in 2021 1H 2022 2021 2020 • Strong start to 2022 Total Sales $ 189.3 $ 307.5 $ 222.4 • Strong demand across most Gross Margin $ 27.6 $ 41.3 $ 34.5 industries 14.6% 13.4% 15.5% • Margin impacted by inflation a
Slide 16: Selected Financial Information
SELECTED FINANCIAL INFORMATION Total Sales in millions • Average sales growth of 13.7% per $400 year over past five years $350 $300 $250 • Acquisition growth of ~$60mm in $200 $150 2018 $100 $50 • Remainder of growth from organic $0 2017 2018 2019 2020 2021 TTM growth June 30, 2022 • Strong sales co
Slide 17: Operating Cash Flows
OPERATING CASH FLOWS • Approximately 40% of operating in millions cash flows reinvested into business Operating Free Cash Cash Flows Capex Spend Flows • Company anticipates investing more then 50% of future operating cash 2019 $ 16.7 $ 7.5 $ 9.2 flows back into business 2020 28.2 3.7 24.5 2021 12.5
Slide 18: Sales by Industry – Diversification Transition
SALES BY INDUSTRY – DIVERSIFICATION TRANSITION • Company has transformed the % of Total Net Product sales 2017 2018 2019 2020 2021 Medium and Heavy-Duty Truck 68% 57% 58% 43% 40% customer base over the past five Power Sports 19% 14% 16% 17% 21% years Building Products 0% 12% 10% 19% 16% Industrial a
Slide 19: Capitalization
CAPITALIZATION in millions As of June 30, 2022 New Debt Facility (in millions) Equity $ 106.6 Term Loans $ 24.5 $25.0 $25.0 Total Long-term Capital $ 131.1 Excess Liquidity $ 17.6 $25.0 Total Debt Leverage Ratio 1.26 Revolver Term Loan Capex Facility • Company completed debt refinancing in July 2022
Slide 20: Net Income (Loss) to Adjusted EBITDA Reconciliation
NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION (1) Reflects Cincinnati facility closing. Reconciliation of GAAP to Non-GAAP Financial Measures * Adjusted EBITDA represents net income before, as applicable from time to time, (i) interest expense, net, (ii) provision (benefit) for income taxes, (
Slide 21: Company Contact / Investor Contact
Company Contact: Investor Contact: John Zimmer Sandy Martin / Steven Hooser Chief Financial Officer Three Part Advisors 614.870.5604 214.616.2207 21
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