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,” “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 for future periods with respect to cost savings, restructuring charges, revenues or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perspective on 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) CVG’s ability to develop or successfully introduce new products; (ii) risks associated with conducting business in foreign countries and currencies; (iii) general economic or business conditions affecting the markets in which CVG t i d i (iii) l i b i diti ff ti th k t i hi h CVG serves; (iv) increased competition in the heavy-duty truck and construction markets; (v) CVG’s failure to complete or successfully integrate additional strategic acquisitions; (vi) the impact of changes in governmental regulations on our customers or on our business; (vii) the loss of business from a major customer or the discontinuation of particular commercial vehicle platforms; and (viii) various other risks as outlined 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 2008 Annual Report on Form 10-K and current SEC For a complete description of risks, please refer to our 2008 Annual Report on Form 10-K and current SEC reports on file. 2 2
Welcome Good Afternoon and Welcome to Commercial Vehicle Group’s 2009 Annual Meeting of Stockholders 2009 Annual Meeting of Stockholders 3 3
Agenda Welcome Welcome Introductions Video 2008 i 2008 in Review | Taking Action R i | T ki A ti Financial Review Managing for the Future - Cab Systems - Electrical Systems - Seating Systems - Research and Development - Purchasing Closing Questions 4 4
Introductions Chad M. Utrup, Chief Financial Officer Jerry Armstrong President Cab Systems Jerry Armstrong, President, Cab Systems Kevin Frailey, Executive Vice President, Electrical Systems y Milt Kniss, Executive Vice President, Seating Systems Bob Averitt, Vice President, Strategy and Business , , gy Development Pat Miller, Executive Vice President, Purchasing John Hyre, Director, Investor Relations 5 5
6 VIDEO
2008 in Review Industry downturn began in 2007 and lasted throughout 2008 throughout 2008 2008 was a difficult and challenging year as markets and economies continued to slide markets and economies continued to slide CVG has taken steps in 2008 and early 2009 to better position ourselves for economic and market recovery 7
2008 in Review Depressed commercial vehicle market was complicated by spikes in commodity prices Crude oil peaked at $147 a barrel The rise in oil prices, along with its rippling p g pp g effects, was particularly difficult for those in our industry to manage All-time high oil prices were then followed by a All ti hi h il i th f ll d b near collapse of the global credit markets April issue of Transport Topics reported that a April issue of Transport Topics reported that a significant number of fleet failures took place 8 8
2008 in Review 9
2008 in Review Taking Action g Reduced our hourly workforce to meet changing customer needs and lower market g g demands - We also need to keep a skilled workforce ready to be competitive for the future Rationalized facilities to gain efficiencies and obtain cost savings bt i t i - Consolidated facilities reducing our manufacturing footprint by more than 250,000 f t i f t i t b th 250 000 square feet 10 10
2008 in Review Taking Action g Approximately 20% salaried workforce reduction 10% salaried furlough and wage reduction where 10% salaried furlough and wage reduction where possible Increased controls on inventory management Increased controls on inventory management Reduced capital expenditures Renewed emphasis on managing logistics and R d h i i l i ti d transportation cost Developed cost containment teams to uncover Developed cost containment teams to uncover additional cost reduction opportunities 11 11
2008 in Review Taking Action g Sought full recovery of material / commodity cost increases from our customers Continued to explore alternate supply resources Tightened cash management policies with customers and suppliers Optimized employee benefit programs to gain O ti i d l b fit t i savings Temporarily suspended the Company’s Temporarily suspended the Company s match on contributions to our 401(k) savings plans 12 12
2008 in Review Taking Action g CVG continued to make strategic investments in exciting new products, investments in exciting new products, such as the new GSX 3000 Global Truck Seat The GSX 3000 was introduced at the IAA Truck Show in Hanover Germany in September Well received by customers and distributors Additional developments displayed in Research and Development section 13 13
FINANCIAL OVERVIEW 14
Fi Financial Overview i l O i OEM Truck Growth - 130% Since 2001, we have: Grown our OEM Truck market revenues 130% (Class 8 market OEM Construction Growth – 447% has only grown 40% during this period) this period) Grown our OEM Construction market by 447% market by 447% Other 1 Growth - 168% 1 Grown our “Other” markets by 168% 168% 1 Bus, Agriculture, Military, Specialty, Aftermarket, 15 15 OEM Service and Other Markets
Financial Overview Since 2001, we have: Grown our revenues by approximately 184% with our top five y pp y p customers In 2007, we added a key customer in MAN through the PEKM acquisition – (Our 8th largest customer in 2008) acquisition (Our 8th largest customer in 2008) Major % Total % Total 2001 2008 Customers Revenues Revenues $ in millions Paccar $ 44.4 16.4% $ 90.5 11.9% Daimler Trucks 56.9 21.0% 82.1 10.7% International 21.2 7.8% 117.6 15.4% Volvo / Mack 23.3 8.6% 72.7 9.5% Caterpillar 10.9 4.0% 82.7 10.8% 16 16
Financial Overview Historical Operating Performance lass 8 Units (1) C 146 181 182 269 341 378 212 205 (Units and $ in thousands) 2001 2002 2003 2004 2005 2006 2007 2008 R Revenues $ $ 271,226 271 226 $ $ 298,678 298 678 $ $ 287,579 287 579 $ $ 380 445 380,445 $ $ 754 481 754,481 $ $ 918,751 918 751 $ $ 696 786 696,786 $ $ 763,489 763 489 10.7% 10.1% -3.7% 32.3% 98.3% 21.8% -24.2% 9.6% % C hange from Prior Year perating Income (2) O $ 16,044 $ 25,423 $ 25,229 $ 41,657 $ 89,528 $ 97,474 $ 20,254 $ 16,137 5.9% 8.5% 8.8% 10.9% 11.9% 10.6% 2.9% 2.1% % of Revenues Depreciation & A mortization $ 12,833 $ 8,682 $ 8,106 $ 7,567 $ 12,064 $ 14,983 $ 16,425 $ 19,062 4.7% 2.9% 2.8% 2.0% 1.6% 1.6% 2.4% 2.5% % of Revenues (1) AC T Publications (2) E xcludes restructuring costs, 2004 share-based compensation expense and 2008 goodwill and intangible asset impairment - for comparative purposes only g , p p g g p p p p y 17 17
Financial Overview Operating Income (1) Revenues (1) Excludes restructuring costs, 2004 share-based compensation * In thousands expense and 2008 goodwill and intangible asset impairment - for comparative purposes only. * In thousands Market and economic conditions, commodity pricing and currency events impacted us through 2007 and 2008 h h 200 d 2008 We are positioned to remain strong and viable 18 18
Financial Overview Variable Variable Costs Costs Reduce Material and Freight Costs Adjust Hourly Labor Costs in Line with Revenues V Kent, WA xed xed Statesville, NC (Seating Facility ONLY) osts osts Facility Closures Lake Oswego, OR Fix Fix Co Co Concord, NC Reductions in Salaried Seneffs, Belgium Workforce Vancouver, WA Cash Cash Capital Spending Minimization Inventory and Working Capital Management Management Cash generation and elimination of costs is our number one priority through the down cycle 19
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