Dorman Products, Inc. · NASDAQ:DORM
Dorman Products — Investor Presentation (April 2021)
18 slides from Dorman Products's investor presentation, Apr 26, 2021
Slide 1: Investor Presentation April 26, 2021
rc Investor Presentation APRIL 26,2021
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
| Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation contains, and oral statements made from time to time by our representatives constitute, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, i
Slide 3: Agenda
l Agenda * Dorman Snapshot * Industry Dynamics * Growth Strategy * Financial Results * Summary en
Slide 4: Dorman History
Dorman History Founded in 1978 NASDAQ listed since 1991: DORM Founding family ~18% ownership! A Leading Supplier of Replacement Parts in the Automotive Aftermarket Industry 2020 Net Sales of $1.1 Billion Year-over-year Net Sales growth of 10% 5 year CAGR of 6% 1. Dataas of 12/26/2020. Dorman offers!
Slide 5: Core Automotive Competencies
| Perarems Core Automotive Competencies NEW TO THE GLOBAL BROAD ‘NICHE’ AFTERMARKET SOURCING DISTRIBUTION* OFFERING* Distinctive Business Model Global Design, Development 58% - Retail 40% - Powertrain and Sourcing Capabilities 31% - Traditional 30% - Chassis 11% - Other 25% - Automotive Body 5% - Ha
Slide 6: Industry Dynamics
| Industry Dynamics Average Age of Vehicles in Operation ny ag 120285 — 280 Bw 275 |] 270 | 265 10 260 2016 2017 2018 2019 2020 VIO (millions) ran i) 11.6 Average Age Vehicles b Source: Polk, a division of IHS Automotive Annual Change in Miles Driven 5.0% 2.6% 12% 0.4% 0.9% 0.0% —Mi een - 50% 2018 2
Slide 7: New Products Driving Growth
'New Products Driving Growth * Dorman Net Sales CAGR of ~6% for 2016-2020 Outpaced the Broader ado Aftermarket $1,000 * New Product Revenue Creates Growth Opportunities conn — Items previously only available at the OE Dealer or Salvage Yard $600 — New Products = Comp Store Sales Growth Opportunities
Slide 8: New to the Aftermarket Products
New to the Aftermarket Products New to the Aftermarket Line Extensions (Many of which are exclusive items) 2020 Total Distinct Parts Introduced JOB REPLACE THE REPLACEMENT PIECE, NOT THE KITS ASSEMBLY OE DEALER EXCLUSIVES UNDERSERVED COMPETITIVE
Slide 9: New to the Aftermarket Engine
'New to the Aftermarket Engine * Installer Relationship and Feedback Network Help Identify Failure-prone OEM Parts R&D Investments (in $ Millions) $25.0 $20.0 $201 aie a.” * Culture of Contribution Drives Innovation $200 | $189 — 425+ product, engineering, and quality contributors in 8 co-located te
Slide 10: Marketing Strategy
| Marketing Strategy Social Media Industry Tradeshow / Training 3 ey ress Releases ey You DON'T KNOW DORMAN. National Advertising SEO/SEM AdWord
Slide 11: Growth Opportunities
Growth @ppoeeunities nh a + US & Canadian Light Duty Automotive Market + Medium & Heavy Duty Aftermarket + Support our customers’ expansion into new geographies & product categories ww, Strategic Acquisitions * Bolt-on acquisitions in Light + Significant investment in Duty R&D over last 5 years + Ex
Slide 12: 2020 Net Sales and EPS Growth Rebound
' 2020 Net Sales and EPS Growth Rebound Net Sales Growth Rates 14% 12% 12% 10% 10% 8% 8% 6% 5% 4% 2% 2% 2017 2018 2019 2020 Qi 2021 80% 60% 40% 20% 0% -20% -40% Adjusted Earnings Per Share Growth Rates! 30% 25% 10% -37% 2017 2018 2019 2020 58% Q12021 1. Refer to Non-GAAP reconciliation in Appendix f
Slide 13: Summary Income Statement
Summary Income Statement Three Months Ended 3/27/21 Net sales $288.0 Cost of goods sold 183.5 Gross profit 104.5 (36.3%) Selling, general and administrative expenses 62.9 Income from operations 416 (14.5%) Other (expense) income, net (0.0) Provision for income taxes 89 Net income $ 327 Diluted earni
Slide 14: Summary Balance Sheet
Summary Balance Sheet 3/27/2021 Cash $ 166.6 Accounts receivable, net 452.5 Inventories 3377 Prepaids and other current assets 98 Property, plant and equipment, net 90.7 Other long-term assets. 207.0 Total Assets 1,264.3 Current liabilities 335.4 Long-term liabilities 45.1 Shareholders’ equity 883.8
Slide 15: Summary Statement of Cash Flows
Summary Statement of Cash Flows For the Years Ended 3/27/2021 3/28/2020 Net Income Depreciation, amortization, and accretion i i Ended Q1 2021 with $167 million of Change in accounts receivable i cash Change in inventories at ge in inventori Generated $21 million of cash from operating activities du
Slide 16: Recap
| Riacsp * ALeading Supplier of Replacement Parts in the Automotive Aftermarket * Strong Growth Opportunities ¢ Historical Track Record of Net Sales and EPS Growth * Strong Balance Sheet
Slide 17: Questions
| Questions KEVIN OLSEN DAVID HESSION President & CEO SVP & CFO =
Slide 18: Earnings Per Share Growth
Earnings Per Share Growth Fiscal Year Ended Three Months Ended 2016 2017 2018 2019 2020 2020 2021 Diluted earnings per share (GAAP) $ 3.07 $ 3.13 $ 4.02 $ 2.56 $ 3.30 $ 0.70 $ 1.02 Percentage change from PY 18% 2% 28% -36% 29% 46% Adjustments to diluted earnings per share: Pretax acquisition-related