2016 Annual Shareholder Meeting May 19, 2016 Safe Harbor Statement - - PowerPoint PPT Presentation

2016 Annual Shareholder Meeting

May 19, 2016

Safe Harbor Statement

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This presentation contains statements that are, or may be deemed to be, forward-looking statements within the meaning

• f 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.

Executing on our Strategy: 2015 Highlights

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• Booked $560 million in new business awards, an

increase of 16% from 2014

• Revenue growth was a challenge in 2015

Targeting mid single digit organic growth for 2016

• Expanded gross margins to 33.2%, the highest

reported for our company

• Returned $23 million to shareholders through

dividends and share repurchases

• Increased operating cash flow from $32.4 million

in 2014 to $38.6 million in 2015

Our Vision We aim aim t to b be a a le lead adin ing p provider of

• f sen

ensing and mot motion ion devic ices as as well as ll as connec ecti tivity componen ents, e enabling g an an in intell lligent an and seamle less w world ld.

Positioning for Growth with Fundamental Market Trends

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Smart

Pr Prod

• ducts

Applications

• Vehicles with added intelligence, safety

and connectivity

• Improved medical diagnostics and drug

delivery

• Smart Home sensing and new technology

for human machine interface

• Powertrain, transmission and exhaust

sensing to enable fuel efficiency

• Energy harvesting for devices and self

powered sensors

Market T Trends nds

• RF sensing for efficient use of

diesel particulate filters

• Wireless charging
• Powering of medical implants
• Vehicle smart lighting
• 4D and intravascular ultrasound
• Smart appliances
• Small Cells
• 100GB Wired Networks
• NYSE Transactions

Eff fficien ent Connec ected ed

Single Crystal Piezo RF Sensor

• Internet of Things: 50 Billion connected

devices by 2020

• Densification of networks for higher

resolution video and faster data transfer

Ride Height Sensor Appliance Sensor RF Filters Timing Components Turbo Actuator Piezo Sensor

CTS makin ing o

• rganic

ic and inorgan anic i inves estments to e expand SAM i in growth m mar arkets

Product Applications in Light and Commercial Vehicles

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Engin gine E Efficie iency

• Accelerator Pedal Module
• Current Sensor
• Gear Position Sensor
• Throttle Position Sensor
• Turbo Actuator
• Turbo Position Sensor
• Variable Valve Lift Sensor

Exhau aust M Man anag agem emen ent / / After ertreatmen ent

• EGR Position Sensor
• DPF RF Sensor

Occu ccupant Safe fety

• Seat Belt Buckle Switch
• Seat Belt Tension Sensor
• Seat Track Position Sensor

Chassis is / / Driv ivelin line

• Air Grill Shutter Actuator
• Brake Pedal Sensor
• Chassis Height Sensor
• Transmission Speed

Sensor

• Transmission Range

Sensor

• Wheel Speed Sensor

Fuel H l Handlin ling

• Contacting Fuel Level Card

Key C Custome mers

New European Customer #1 New European Customer #2

Product Applications in Medical Imaging and Devices

Key C Custome mers

Ultrasound / / IVUS

• Single Crystal Piezo
• Bulk Piezo
• Encoders
• Frequency Control

Infusio ion P Pumps, C CPAPs a and

• ther

er m med edical al d dev evices es

• Piezo micro-valves
• Encoders
• Switches
• Joysticks

Key C Custome mers

Industria ial P l Prin inters, HV HVAC, Automation a and S Safety P Products

• Piezo micro-actuators
• Switches
• Encoders
• Frequency Control
• EMI Filters

Mi Milit itary S Sonar a and Communic icatio ion P Products

• Piezo hydrophones
• Piezo sonar arrays
• Frequency Control
• EMI Filters

Product Applications in Industrial and Military

Single Crystal Technology Acquisition

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Current A Applic licatio ions – 3D & & 4D U Ultraso sound, , IVUS US Future A Applications – Hearing A Aid, P , Pace cemaker

• Founded in 1997 and located in Bolingbrook, IL
• The industry leader for the design and manufacture of piezoelectric single crystals for use in the medical and

defense industries with existing long-term relationships with blue chip OEM customers

• The leading large scale, vertically integrated manufacturer of single crystals, having invested heavily in refining

proprietary production processes and equipment

• Total Addressable Market of $100M in the next 5-7 years

Wireless powering of pacemakers Implantable hearing aids to replace cochlear implants Advanced imaging with Intravascular Ultrasound (IVUS) used to detect plaques that cause heart disease Single crystals create higher quality imaging compared to current solutions Traditional Technology Single Crystal Technology

RF Sensor Technology Acquisition

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Disruptiv ive S Sensin ing T g Technology f for Fuel E l Efficie iency…. ….Boosted b by Gl Global l Emis issio ions L Legi gisla latio ion

• Start-up founded by two MIT Ph. D. graduates located in the Boston area
• Innovative sensing technology that uses a low power RF signal to measure soot and ash loading on Diesel

Particulate Filters (DPF) or Gasoline Particulate Filters (GPF)

• Suitable for aftertreatment systems in Passenger or Commercial Vehicles, diesel or gasoline.
• Total Addressable Market of $100M in the next 5 years

Diesel Particulate Filter (DPF)

CTS R RF Sensor B Benefi fits ts I Include:

• Up to 4% better fuel economy
• Reduced CO2 emissions
• Lower risk of DPF damage
• Direct Measurement

Historic ical f l flee eet C CO2 emis issio ions ns p per erformance e and d proposed ed commer ercia ial l veh ehic icle le/lig light truc uck stan andar ards:

Source: International Council of Clean Transportation

LV I M CV C/IT AD LV/CV I C AD M IT/O

LV I M CV C/IT AD 30-50% 20-30% 10-20% 10-20% 10-20% 5-15%

Targeted End Markets

Light Vehicles Industrial Medical

• Comm. / IT

Commercial Vehicles Aviation/Defense EMS Divestiture Front End Refocus New Customers Regional Expansion Organic Projects M&A

Legend: AD: Aviation/Defense C: Communications CV: Commercial Vehicles I: Industrial IT: Information Technology LV: Light Vehicles M: Medical O: Others

Organic Growth Innovation M&A

Diversifying End Markets Organically and with Acquisitions

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LV/CV I C DA M O Single le C Crys ystal al acquisition ion d double les current C CTS s sale ales t to me medic ical mar l market RF S Sensing a g acquisition f furth ther diversifie ies CTS i in comm mmercial ial vehic icle les

Targeting 10% Revenue Growth (Organic + Inorganic)

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I

Simplified ed a and nd F Focused sed t the B he Busi siness

ii ii

Profitability Improvement

i

Footprint Optimization II II

Positioni ning ng f for Growth a h around nd Sense, C Connect a and Move ve

ii ii

Invest in Innovation for new product development

i

Execute on organic growth

ii ii

Complement portfolio with targeted M&A