Exco Technologies Limited · TSX:XTC
Exco Technologies — Investor Presentation (August 2023)
33 slides from Exco Technologies's investor presentation, August 2023
Slide 1: Investor Presentation August 2023
Investor Presentation August 2023
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. We may use words such as “anticipate”, “may”, “will”, “should”, “expect”, “believe", "estimate", “5-year target” and similar expressions to ide
Slide 3: Company Overview
Company Overview Business Highlights Financial Highlights • Manufacturer of tooling for the light metal industries + • LTM Q3 F23 revenue of C$600 million and EBITDA of interior trim components & solutions for the automotive C$68 million (11% margin) market • Consistently strong free cash flow • Ver
Slide 4: Principal Business Segments
Principal Business Segments LTM Q3 F2023 Revenue and EBITDA C$600 million Revenue* C$68 million in EBITDA (11% Margin) C$36M Neocon Casting & Extrusion Extrusion Tooling (12% Margin) 51% AFX 49% Automotive Casting & Solutions Extrusion Large Mould C$34M (C$306M) Polydesign (C$294M*) Group Automotive
Slide 5: Strong Growth Profile
Strong Growth Profile Anticipated pathway to a five-year 10% Revenue CAGR with further sizeable potential upside 250+* 1,000+ Revenue C$ Millions 100 ~750 65 90 ~460 30 LTM Q3 F21 Castool Greenfields Casting and Auto Solutions Auto Solutions Fiscal 2026 Target Potential Fiscal 2026 Target Extrusion
Slide 6: ESG Strategic Priorities
ESG Strategic Priorities Marketplace • Leader in innovation for vehicle light-weighting and sustainable production processes Environment • Responsible use of resources: energy efficiency, waste management, use of recycled materials and a focus on clean energy People • Diversity & inclusion, health &
Slide 7: Exco Values
Exco Values Safety: We strive for all our employees to go home unharmed Entrepreneurial spirit: Our culture fosters idea generation and risk taking Excellence: We set the standard for high quality craftsmanship Integrity: We expect honesty and transparency in all our dealings Accountability: We empo
Slide 8: Vision and Mission
Vision and Mission Mission: We enhance the look and functionality of passenger vehicles and tool up light metal industries for superior performance Vision: To be the benchmark for innovation, efficiency and quality in the industries we serve EXCO TECHNOLOGIES LIMITED (TSX: XTC) | 8
Slide 9: Global Presence
Global Presence 20 Manufacturing Locations in 9 Countries and 5,000 Employees Uxbridge, ON Newmarket, ON Aldenhoven, Germany Chesterfield, MI Markham, ON Toledo, OH Troy, MI** Weissenburg, Germany Port Huron, MI** Brescia, Italy (2) Dartmouth, NS Tangier, Morocco Matamoros, MX (2) Wylie, TX Kenitra,
Slide 10: Automotive Solutions Segment
Automotive Solutions Segment EXCO TECHNOLOGIES LIMITED | 10
Slide 11: Automotive Solutions Segment
Automotive Solutions Segment An innovative provider of interior trim and convenience solutions to the global auto market Competitive Strengths Market Conditions • Leading supplier of flexible restraint (netting), vehicle • Vehicle production significantly disrupted by COVID-19 in protection (cargo t
Slide 12: Automotive Solutions Segment
Automotive Solutions Segment Four businesses provide an expanding array of product offerings Business Manufacturing Facility Size Key Products/ Programs Location(s) • Tier 1 and 2 supplier to a highly diverse customer list for the N.A. market • Netting-based storage systems for trunks, seat backs an
Slide 13: Polytech
Polytech Leading manufacturer of automotive netting and storage solutions for North America Business Overview • Clear market leader in design, engineering and manufacturing of flexible restraint and storage systems for OEM customers in North America • Product portfolio continues to broaden into othe
Slide 14: Polydesign
Polydesign Leading manufacturer of automotive netting and wrapped products for Europe Business Overview • Diversified product portfolio with an emphasis on Door panel Armrest Consoles Leather-wrapped nets steering wheels integrated assemblies that take advantage of our vertical integration (injectio
Slide 15: Award winning designer and manufacturer of innovative accessory products for OEM’s
Award winning designer and manufacturer of innovative accessory products for OEM’s Business Overview • Diversified and growing portfolio of vehicle protection and storage solutions • Market leader in thermoformed cargo trays and chrome plated bumper protectors • Significant SUV/ CUV and growing EV e
Slide 16: Leading supplier of hand wrapped interior trim components in North America
Leading supplier of hand wrapped interior trim components in North America Business Overview • Leading independent supplier of hand wrapped interior trim components • Specialists in cutting leather and other trim materials for seating and various applications • Tier 2 supplier to a diversified custo
Slide 17: Casting & Extrusion Segment
Casting & Extrusion Segment EXCO TECHNOLOGIES LIMITED | 17
Slide 18: Casting & Extrusion Segment
Casting & Extrusion Segment World’s largest independent provider of tooling for the Extrusion and Die Cast markets Competitive Strengths Market Conditions • Large scale, diversified operations with a total of 16 • Aluminum use is growing across many applications tooling plants in nine countries with
Slide 19: Casting & Extrusion Segment
Casting & Extrusion Segment Vehicle light-weighting provides significant growth opportunity across the entire segment • Ever more stringent fuel efficiency and Passenger Car Fuel Efficiency emission reduction standards are driving the development of increasingly advanced engines and transmissions by
Slide 20: Casting & Extrusion Segment
Casting & Extrusion Segment Both Internal Combustion Engine and Electric Vehicles are using an increasing number of extruded and die-cast aluminum components to reduce weight Instrument Panel Roof Rails Beam Components Electronics Housing Rear Bumper Beams Shock Towers Rear Subframes Transmission Ho
Slide 21: Casting & Extrusion Segment
Casting & Extrusion Segment Three related business groups covering die-cast and extrusion tooling Group Business Manufacturing Locations Total Group Key Products/ Programs Facility Sizes • Design and manufacture of large high • Ontario, Canada pressure die-cast moulds Large Mould • Toledo, Ohio 200,
Slide 22: Large Mould Group
Large Mould Group Aluminum-focused tooling for automotive powertrain and structural components Business Overview • Largest independent manufacturer of high pressure die-cast (HPDC) moulds in N.A.; exclusively focused on large moulds • Moulds for both powertrain and non-powertrain components • Mix of
Slide 23: Exco Additive Manufacturing
Exco Additive Manufacturing Global leader in the additive manufacturing of tool steel for die casting applications Business Overview • Five, quad-laser, large scale additive machines dedicated for tooling applications • Fully integrated into large mould design to provide enhanced overall die perform
Slide 24: Extrusion Tooling Group
Extrusion Tooling Group Largest designer and manufacturer of dies for aluminum extrusions in the Americas Business Overview Extruded Products by End Market1 • Ten manufacturing locations – six in the Americas 2% Transportation/ Auto and four in Europe 10% Building & Construction 10% 31% • €40M Acqui
Slide 25: Equipment, accessories and tooling for aluminum die-cast machines and extrusion presses
Equipment, accessories and tooling for aluminum die-cast machines and extrusion presses Business Overview • Proprietary consumable tooling components and modular systems designed to dramatically increase overall efficiency through improved uptime & reduced scrap Die-Cast Shot Sleeves • Systems-based
Slide 26: Financial Results
Financial Results EXCO TECHNOLOGIES LIMITED | 26
Slide 27: Revenue by Segment
Revenue by Segment Anticipated pathway to a five-year 10% Revenue CAGR with further sizeable potential upside C$ Millions Potential Acquisitions ~750 - 1,000+ Automotive Solutions Casting and Extrusion 250+ 600 461 490 ~400 456 412 306 263 254 231 268 294 ~350 181 198 236 188 F2020 F2021 F2022 LTM Q
Slide 28: EBITDA by Segment
EBITDA by Segment Targeting to restore industry leading margins in both reporting segments C$ Millions ~120 - 160+ Potential Acquisitions 40+ Corporate Automotive Solutions 70 ~60 Casting and Extrusion 71 53 53 64 37 38 40 28 25 ~70 32 40 31 36 38 EBITDA Margin F2020 F2021 F2022 LTM Q3 F2023 TTM Q3
Slide 29: Net Income
Net Income Strong revenue growth profile and margin focus drives significant expected profit gains C$ Millions ~75.0 38.4 42.0 27.4 22.6 19.0 F2020 F2021 F2022 LTM Q3 F2023 TTM Q3 Target F2026 F2021 (without acquisitions) Basic and Diluted EPS $0.69 $0.98 $0.49 $0.58 $1.07 $1.90 EXCO TECHNOLOGIES LI
Slide 30: Capital Expenditures
Capital Expenditures Near Term Capex will Remain Elevated to Support Strong Organic Growth Initiatives C$ Millions 47 28 Growth Capex 19 Maintenance Capex F2023 Budgeted Capex Maintenance Castool Greenfields Energy Efficient Heat Treatment Equipment Casting & Extrusion Capacity Increases Auto Soluti
Slide 31: Dividend
Dividend In February 2023 Dividend was maintained at an annualized rate of 42 cents per share 42.0 CAD Cents/ Share 10.5 F2011 F2012 F2013 F2014 F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 EXCO TECHNOLOGIES LIMITED | 31
Slide 32: Financial Leverage & Liquidity
Financial Leverage & Liquidity Balance Sheet net leverage of 1.4x as at June 30, 2023 Exco Net Debt 40 • LTM EBITDA of C$68M Long Term Debt 30 Bank Indebtedness/ Other • C$150M committed revolver matures 20 10 21 Cash February 2025 0 • Balance sheet net debt of $97M 13 C$ Millions -10 -20 • C$53M of
Slide 33: Questions
Questions EXCO TECHNOLOGIES LIMITED (TSX: XTC) | 33
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