Forward-Looking Statement This presentation contains forward-looking - - PowerPoint PPT Presentation

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Forward-Looking Statement This presentation contains forward-looking - - PowerPoint PPT Presentation

Forward-Looking Statement This presentation contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as believe, expect, anticipate, intend, plan,


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This presentation contains forward-looking statements that are subject to risks and uncertainties. These statements

  • ften include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or similar expressions. In

particular, this presentation contains forward-looking statements about Company estimates for future periods with respect to cost savings, restructuring charges, revenues or other financial information. These statements are based

  • n certain assumptions that the Company has made in light of its experience in the industry as well as its perspective
  • n historical trends, current conditions, expected future developments and other factors it believes are appropriate

under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to: (i) general economic or business conditions affecting the markets in which the Company serves; (ii) the Company's ability to develop or successfully introduce new products; (iii) risks associated with conducting business in foreign countries and currencies; (iv) increased competition in the heavy-duty truck market and other key end markets; (v) our failure to complete or successfully integrate additional strategic acquisitions; (vi) the impact of changes in governmental regulations on the Company's customers or on its business; (vii) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; (viii) the Company’s ability to obtain future financing due to changes in the lending markets or its financial position; (ix) our ability to comply with the financial covenants in our revolving credit facility; and (x) various other risks as

  • utlined in CVG’s SEC filings. There can be no assurance that statements made in this presentation relating to future

events will be achieved. CVG undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to CVG or persons acting on behalf of CVG are expressly qualified in their entirety by such cautionary statements. For a complete description of risks, please refer to our 2010 Annual Report on Form 10-K and current SEC reports on file.

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Forward-Looking Statement

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Introductions

Mervin Dunn President & CEO Chad M. Utrup CFO

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Products

About CVG

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Major Customers

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Locations

All About CVG

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CVG continues to be a diversified global leader, with a balanced product, market and customer portfolio:

CVG Sales Breakdown

2010

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Strategic Initiatives

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CVG Continues to Focus On:

Diversification of our products, end markets and customers Improving our capital structure Investing in global expansion

− Saltillo, Mexico − Beijing, China

Realigning our manufacturing footprint through facility consolidations Achieving new business awards Capitalizing on our variable cost structure and improving our bottom line Strategic acquisitions and new market opportunities

− Bostrom Seating − Exploring India Opportunities − Exploring Brazil Opportunities

Strategic Initiatives

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Daimler Trucks North America (“DTNA”) – Seats, Flooring, Interior Components Beiqi Foton Motor Co Truck Seats ($30m sales at full production) XCMG Seat Supplier ($4-6m sales) John Deere Wire Harnesses for Excavators Manufactured in China ($4-4.5m sales) Hino Seat Supplier for Medium-duty Trucks Manufactured in North America ($2- 3m sales) Skoda Auto Wire Harnesses ($14-17m sales)

Moving Ahead - New Business Success Strong Pipeline of New Business Achievements

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Moving Ahead - Global Expansion – Saltillo, Mexico

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Moving Ahead - Global Expansion – Beijing, China

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Managing for the Future - Continuous Improvement and Growth Moving forward, our focus will remain on:

Capitalizing on Strong End Market Recovery and Growth – Truck/Construction Geographic Diversification – organic & acquisition – Mexico Opportunities – China Opportunities – India Opportunities – Brazil Opportunities – U.S. Opportunities End Market Diversification - organic & acquisition Investment in Technology

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Indicators Support Ongoing Recovery Significant Opportunity For Global Growth

Early stages of penetration into large Asian commercial vehicle market Growth opportunities in Asia with strong production volumes Continued growth in China Opportunity in other emerging markets (India, Russia, South America, etc.) New business wins with new and existing customers

Managing for the Future – End Market Growth Opportunity

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Managing for the Future - End Market Growth Opportunity

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Medium / Heavy Duty Equipment Sales

(Represents cranes & movers and earthmoving equipment in thousands of units)

’09-’15 CAGR

12.3% 8.4% 6.6% 6.6% 8.0%

CVG Construction End Market Sales

Heavy truck 40% Construction 23% Aftermarket 14% Military 9% Other 10% Agriculture 1% Bus 3%

Favorable End Market Trends

Improving tone in key U.S. and European construction markets supported by strong order rates Exceptional growth in emerging markets, particularly China, Brazil, Middle East and India Significant equipment requirements to improve / replace aging infrastructure globally Broader equipment usage / recovery across end markets (e.g., industrial, oil and gas, power and mining)

Source: Millmark Associates (January 2011) Note: Revenue breakdown based on 2010 results.

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Managing for the Future - Global and Expanding Footprint Medium / Heavy Truck Production 2010 | 2015 – All Regions

Opportunity Focus: China India Brazil Mexico U.S.A Japan Europe

* Based on Market Research – Untapped Medium / Heavy Truck Markets represent CVG’s largest opportunity for content through 1.3M vehicles in China, 384K vehicles in India and 230K vehicles in Brazil by 2015

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Managing for the Future - Global and Expanding Footprint Medium / Heavy Construction Production 2010 | 2014 – All Regions

Opportunity Focus: China India Brazil U.S.A Japan Europe

* Based on Market Research – Construction market growth from 2010 to 2014 shows China and India as CVG’s largest opportunity to increase content along with continued focus on North American increased content and Western Europe and Japan

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Opportunity Focus: China India Brazil U.S.A Japan Europe

* Based on Market Research – Agriculture market growth from 2010 to 2014 represent CVG’s largest opportunity for content through 762K vehicles in China and 640K vehicles in India, along with continued focus on increasing North American content and growth in Brazil, Europe and Japan

Managing for the Future - Global and Expanding Footprint Agriculture Equipment Production 2010 | 2014 - All Regions

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Managing for the Future - Becoming A Technology Leader

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Global Engineering Support Acoustics and Thermal Systems Development Material and Process Development Advanced Testing Services Dedicated 37,500 sq. ft. facility Design and Visualization Studio Three Secure Customer Project Bays Concept Development and Realization Physical and Rapid Prototyping Benchmarking and Reverse Engineering

Innovative, Industry Leading Products

Arm Rest Extended Position Advanced Seating

Innovative Design and R&D Capabilities

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Financial OVERVIEW

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Historical Financial Overview

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Financial Review

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Global industry recession continued to challenged the business through 2009 with signs of recovery in 2010 and in early 2011 Continued improvement in financial results on a sequential quarter-over-quarter basis – last eight quarters Continue to drive culture of entrepreneurship, innovation and employee engagement to improve our bottom line Focus on strategic efforts during downturn:

− Diversification − Profit improvement goals across organization Actions during 2009 and 2010 demonstrate significant progress towards CVG’s long-term financial goals

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Financial Review - Strong Liquidity and Maturity Profile

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Strong Balance Sheet & Liquidity Q1 2010 Equity Offering Q2 2010 Tax Refund April 2011 $250 million bond offering:

− Reduced overall cost of debt to 7.875% − Simplified capital structure − Maintains modest leverage level, positioned to improve with cycle rebound − 3/31/2011 Pro forma available liquidity of approximately $130 million

  • Amended and upsized ABL to $40M with no availability block

− Significantly extends maturity profile

Positioned well to capitalize on growth plans and strategic initiatives

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  • Acquisition of Bostrom Seating
  • Saltillo, Mexico expansion
  • Beijing, China expansion

Pursue additional new business and “conquest” business wins

− Continue to monitor competitors operating in a distressed state for additional opportunities − Invest in new processes or capabilities

Pursue strategic, add-on acquisitions to augment strategic initiatives

− Capitalize on track record integration and performance

  • Sale of Monona Medical Harness
  • Acquisition of CIEB
  • Groundbreaking of CVG Corporate Headquarters
  • Acquisition of National Seating
  • Acquisition of Sprague Device

(Prutsman / Motomirror)

  • Acquisition of KAB Seating
  • Acquisition of R-Squared
  • Acquisition of Tempress, Inc.
  • CVG Initial Public Offering
  • Opening of Shanghai
  • Acquisition of Short Bark Industries
  • Acquisition of Gage
  • Acquisition of PEKM
  • Acquisition of ASC, Inc.
  • Acquisition of Landmark Industries
  • Formation of Trim Systems
  • Acquisition of Mayflower
  • Acquisition of Monona
  • Acquisition of Cabarrus

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Financial Review

Track Record of Disciplined, Successful Investment & Growth Strategy

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ANSWERS

Questions &

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APPENDIX

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Historical Non-GAAP Measures

Adjusted EBITDA and Adjusted Operating Income

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Non-GAAP Measures Reconciliation to Adjusted Operating Income

2005 2006 2007 2008 2009 2010 3/31/09 6/30/09 9/30/09 12/31/09 3/31/10 6/30/10 9/30/10 12/31/10 3/31/11 Operating Income 89.5 $ 97.5 $ 18.8 $ (191.4) $ (89.7) $ 16.7 $ (18.4) $ (22.2) $ (7.8) $ (41.2) $ 3.6 $ 2.6 $ 5.1 $ 5.4 $ 8.1 $ Long-lived asset impairment

  • 17.3
  • 3.4
  • 13.8
  • Goodwill and intangible asset impairment
  • 207.5

30.1

  • 7.0
  • 23.1
  • Restructuring Charges
  • 1.4
  • 3.7

1.7 1.7 0.2

  • 1.7
  • 1.4

0.2 0.2 0.3 Adjusted Operating Income 89.5 $ 97.5 $ 20.3 $ 16.1 $ (38.6) $ 18.4 $ (16.7) $ (11.6) $ (7.8) $ (2.6) $ 3.6 $ 4.0 $ 5.3 $ 5.5 $ 8.4 $

Source: Company filings

Fiscal Year Ending December 31 Fiscal Quarter Ending