Core Molding Technologies Inc · AMEX:CMT
Core Molding Technologies — Investor Presentation (April 2022)
23 slides from Core Molding Technologies's investor presentation, April 2022
Slide 1: Spring 2022 Investor Presentation
SPRING 2022 INVESTOR PRESENTATION April 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 Manufacturer • Large diversified customers and industries • Manufacturing footprint: U.S.(3), Mexico (2), Canada (1) Favorable Industry Momentum $307M FY21 Revenues • Total addressable composite market $15+ billion • Few competitors, high barriers to entry Str
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 Technical solutions providing engineered materials that expand CMT’s Total Addressable Market
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 10
Slide 11: Distinct Competitive Advantages: Market Applications
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 12: Leveraging Existing Strengths
LEVERAGING EXISTING STRENGTHS Diverse Products & Deep Expertise Processes Strategic Footprint • 40 years of structural plastics • Sole-source provider • Existing asset base -high manufacturing • Most diverse process offering barriers to entry • 20 years manufacturing in in industry • Large in-place
Slide 13: Technical Solutions Team
3 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 Class A materials • Unique prototyping expertise • Material and process integration • Robust
Slide 14: Technical Solutions Team: Value Proposition
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 15: Acquisition Strategy
ACQUISITION STRATEGY* Diversified • Over 50% of 2021 revenues came from Revenues processes & materials acquired since 2015 Expanded Geographic Material • Changes from 2015 to 2021: Expansions Capabilities • From 100% Thermosets to 53% Thermoplastics and 47% Thermosets Tuck-in Acquisitions • From 4 p
Slide 16: 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 17: Selected Financial Information
SELECTED FINANCIAL INFORMATION dollars in millions, except per share amounts • Record sales in 2022 2021 2020 Total Sales $ 307.5 $ 222.4 • Strong demand from all industries Gross Margin $ 41.3 $ 34.5 • Margin impacted by supply chain 13.4% 15.5% disruption costs and raw material inflation Operating
Slide 18: Selected Financial Information
SELECTED FINANCIAL INFORMATION Total Sales in millions • Average sales growth of 13.7% $350 per year over past five years $300 $250 $200 • Acquisition growth of ~$60mm in $150 2018 $100 $50 • Remainder of growth from $0 organic growth 2017 2018 2019 2020 2021 Adj EBITDA in millions • EBITDA rebound
Slide 19: Operating Cash Flows
OPERATING CASH FLOWS in millions • Approximately 40% of operating cash flows reinvested into Operating Free Cash business Cash Flows Capex Spend Flows 2019 $ 16.7 $ 7.5 $ 9.2 • Company anticipates investing 2020 28.2 3.7 24.5 more then 50% of future 2021 12.5 11.4 1.1 operating cash flows back into
Slide 20: 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 21: Capitalization
CAPITALIZATION in millions • Debt refinanced in 2020 As of December 31, 2021 • Strong balance sheet with low Equity $ 100.1 leverage and sufficient excess Term Loans $ 25.5 liquidity Total Capital $ 125.6 • The Company plans to further restructure its capital structure to Leverage Ratio 1.23 provide
Slide 22: Net Income (Loss) to Adjusted EBITDA Reconciliation
NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION Twelve Months Ended In thousands December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net income (loss) $ 8,190 $ 6,866 $ 9,634 $ 12,050 $ 7,411 $ 5,459 $ (4,782) $ (15,223) $ 8,165 $ 4,671 Income tax expense (benefit) $ 3,966 $ 3,034 $ 4
Slide 23: Company and Investor Contacts
Company Contact: Investor Contact: John Zimmer Sandy Martin / Steven Hooser Chief Financial Officer Three Part Advisors 614.870.5604 214.616.2207 23
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