2015 Annual Shareholder Meeting May 21, 2015
Safe Harbor Statement This presentation contains statements that are, or may be deemed to be, forward ‐ looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward ‐ looking statements are subject to various risks and uncertainties, and as a result, actual results may differ materially from those expressed in the forward ‐ looking statements. These risks and uncertainties are discussed in further detail in the quarterly and annual SEC filings of the company. 2
The CTS Strategy 1 2 3 Drive Profitable Simplify Focus Growth • Exited EMS business • Sharpening focus on core • Investing in global sales strengths ‐ and marketing capabilities • Improved cost structure Sense | Connect | Move • Enhancing capabilities in new geographies • Meeting the evolving needs • Right ‐ sizing global of customers • Investing in R&D footprint • Refreshing brand and • Evaluation of value ‐ • Renewed approach and communication approach enhancing external reenergized culture opportunities • Continued market driven new product innovation Investment Decisions Driven Around SENSE | CONNECT | MOVE 3
1 SIMPLIFY – Smaller, Leaner, More Profitable Operating Controllable Sales and EPS Footprint Expenses Working Capital ($ millions) ($ millions) (% of Sales) 16.8% $577 $21 20 $80 $23 32.2% $404 10.3% $59 21.2% 12 $0.97 65% $0.64 35% 2012 2014 2012 2014 2012 2014 2012 2014 Sales Adj EPS Mfg Plants Best Cost % SG&A R&D CWC % Gross Margin % 4
5 Year Share Performance Smaller company, improved valuation S&P 500 CTS Base 100 (1/10 – 12/14) $51 million cash returned to Shareholders Dividend $23 million Share Buybacks 28 million Total Cash Returned to Shareholders $51 million 5
2 FOCUS – Diversified Portfolio – Sense | Connect | Move Sense Move Connect 6
2 FOCUS – Broad Customer Base Sense Move Medical Light & Commercial Vehicle Light Vehicle Computer Industrial New European OEM Industrial, Defense Communications Industrial, Computer Distribution Connect 7
Drive Profitable Growth – New Business Awards 3 ($ millions) $484 $299 2Q ‐ 4Q $192 1Q YTD Not 1Q Not Reported Reported 2012 2013 2014 2015 8
Drive Profitable Growth – Diversify End Markets 3 Targeted End Markets AD Light Vehicles 30-50% Industrial 20-30% C/IT LV Medical 10-20% Commercial Vehicles 10-20% CV Comm./IT 10-20% Aviation/Defense 5-15% O M M I LV/CV DA DRIVE PROFITABLE GROWTH C I AD C/IT Organic Growth CV Innovation M&A FOCUS M LV EMS Divestiture M IT/O Front End Refocus I AD C Legend: SIMPLIFY AD: Aviation/Defense I C: Communications LV/CV New Customers CV: Commercial Vehicles I: Industrial Regional Expansion IT: Information Technology Organic Projects LV: Light Vehicles M&A M: Medical O: Others 9
Drive Profitable Growth 3 SENSE CONNECT MOVE Target Growth Rate ~10%, Organic + Inorganic 10
CTS Management Team Kieran O’Sullivan Chairman, President & CEO OPEN Ashish Agrawal Bob Patton Albert Vidiella Tony Urban Mark Cassens Mario Saucedo MC Yen Vice President Vice President & Vice President, Ex. Director, Vice President & Vice President & Vice President & Vice President & Human Resources CFO General Counsel Corporate GM, Sensors & GM, Piezo GM, Electronic GM, & Secretary Development Mechatronics Electronic Components Electrocomponents Products Solutions 11
Moving Forward CTS VISION Our Vision is to become a leading provider of sensing and motion devices as well as connectivity components , enabling an intelligent and seamless world. CTS CORE VALUES Solutions Play to Win Responsive Simplicity Oriented Integrity | Respect | Self Confidence 12
Summary Transformation • Smaller, more profitable company • Speed and industry focus with customer intimacy • Strategic clarity, alignment and commitment Organization • Board of Directors • New management team • Evolving Culture • Prudent cost management • Ethical Clear Strategy • Simply, focus, drive profitable growth • Sense | Connect | Move 13
Recommend
More recommend
