Forward Looking Statements This presentation contains - - PowerPoint PPT Presentation

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Forward Looking Statements This presentation contains - - PowerPoint PPT Presentation

Apr 09, 2023 192 likes •700 views

Forward Looking Statements 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 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 the remainder of the year with respect to revenues and earnings per share. 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 serves; (iv) increased competition in the heavy-duty truck market; (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

Forward Looking Statements

2 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

  • ral 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 current SEC reports

  • n file.
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Mervin Dunn President and CEO

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Kevin R. L. Frailey

Executive Vice President Business Development

Gerald L. Armstrong

President Global Truck

  • W. Gordon Boyd

President Global Construction

James F. Williams

Vice President Human Resources

Chad M. Utrup

Chief Financial Officer

Introductions

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CVG Historical Perspective

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State of Our Business in 1999

100% Trim Systems and Components

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Approximately 95% of Our Business Concentrated in North American Heavy Truck Market

Columbus, OH Chillicothe, OH Dublin, VA Seattle, WA Vancouver, WA Statesville, NC Denton, TX Toluca, MX

State of Our Business in 1999

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95% of that business was divided between 3 customers State of Our Business in 1999

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Signs Change Was Needed Overly dependent on North America Overly dependent on Class 8 trucks Overly dependent on too few customers Highly susceptible to cyclical markets

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In 1999 CVG was:

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Our Strategic Direction Previous tactics would not be useful in creating a sustainable growth-oriented company. A long term strategy was needed

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Innovation Innovation and and Technology Technology Operational Operational Excellence Excellence Flexible Flexible Cost Cost Structure Structure Sustainable Sustainable Financial Financial Structure Structure Expanded Expanded End End Markets Markets Geographic Geographic Diversity Diversity Customer Customer Diversity Diversity Expanded Expanded Product Product Portfolio Portfolio

A commitment to both internal and external change was necessary in the deployment of the strategy Our strategy was built on 4 internal and 4 external initiatives

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Our Strategic Direction

Innovation Innovation and and Technology Technology Operational Operational Excellence Excellence Flexible Flexible Cost Cost Structure Structure Sustainable Sustainable Financial Financial Structure Structure Expanded Expanded End End Markets Markets Geographic Geographic Diversity Diversity Customer Customer Diversity Diversity Expanded Expanded Product Product Portfolio Portfolio

Generate a Lean and Flexible Cost Structure Generate a Sustainable Financial Structure Generate a Culture of Innovation and Technology Generate Operational Excellence Generate Expanded End Markets Generate Geographic Diversity Generate an Expanded Product Portfolio

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Our Strategy has served CVG well

Continued to invest in R & D Opened this Center as a cornerstone of our corporate strategy

The Role of R & D In Our Strategy

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Innovation Innovation and and Technology Technology Operational Operational Excellence Excellence Flexible Flexible Cost Cost Structure Structure Sustainable Sustainable Financial Financial Structure Structure Expanded Expanded End End Markets Markets Geographic Geographic Diversity Diversity Customer Customer Diversity Diversity Expanded Expanded Product Product Portfolio Portfolio

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Kevin Frailey

Premiering CVG’s New Research and Development Center

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1999

Talent Emphasis Center

  • f Gravity

Our Strategic Direction

Generate a Culture of Innovation and Technology

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Separate by Product Solely North American Truck Adequate, yet Autonomous Building Capabilities for Full Cab Global Reach New End Markets

Core Design, Materials, Product

New State-of- the-Art Corporate R&D Center Core Capabilities and Integration Increased Breadth Systems Integration

2007 2008

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R & D In 2007: Bringing It All Together

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Consolidated Engineering Facilities Invested in Intellectual Capital Invested in New Products Increased Design Capacity

Gahanna Farmington Hills New Albany Dublin New State-of-the-Art Corporate and R&D Center

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2008 R&D Priorities

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Research & Development at Corporate Headquarters

Integration Next logical integration step of CVG acquisitions (“Technical Integration”) Teamwork Leadership and employees together at the source of innovation Efficiencies in information- sharing Growth “Gravitational pull” for business unit capabilities to become corporate competencies Advanced Information Technology Working across constraints of time and space New Products and Solutions Focus of entire corporation on strategy to create a culture of innovation

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Headquarters & R&D Center Facts Customer Project Bays and Presentation Room Prototyping and Development Shop Competitive Intelligence and Benchmarking Room Acoustic and Thermal Development Center Durability Chamber Full-Cab Driving Simulator Advanced Data Center Concept to Prototype Development of complete cab-system products for our facilities around the world

89,000 sq. feet total complex 39,000 sq. feet for Research & Development

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Description Purpose Secure design bays with video surveillance and electronic keyed access Preserve confidentiality of multiple customer projects Designed and sized to accommodate

  • ur end customer

Handle variety of vehicles: Class 8 trucks, marine equipment, bus, and military vehicles Large adjoining presentation room Unveil/exhibit customer project work

Customer Project Bays and Presentation Room

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Competitive Intelligence and Benchmarking Room

Description Purpose Complete tear-down capabilities Increase competitiveness of CVG products Standardized methods/processes Grow knowledge base of employees ATOS 3-D scanner/digital photogrammetry Reproduce competitive product digitally CAD data creation Identify opportunities/cost reduction ideas Data base of competitive information Develop new features/functions Teaching sessions/report-outs Earn more money/increase shareholder value

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Acoustical and Thermal Development Center

Description Purpose Sound absorption testing Contrast competitive material choices Noise source identification and noise plotting Improve insulation, seats, flooring and trim Full range of data collection and simulation Channel design efforts for maximum impact Jury testing Create more operator-friendly cab interiors

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Durability Chamber

Description Purpose Multi-axis Vibration Table (Sept. 08) Optimize seat/cab suspension to achieve better ride quality Accelerate design validation Climactic Chamber (2009) Test durability and vibration on all products within a wide range of temperatures and humidity conditions

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Full-Cab Simulator

Description Purpose Reproduction of realistic driving conditions in controlled, repeatable environment Ride-test concept prototypes Data recording Prove out field research testing protocols

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Description Purpose Connectivity between CVG R&D center projects via live feed to customers around the globe Overcome constraints of space and time Collaborate Globally with customers and partners Enhanced Data Security Protect the intellectual capital of CVG and its customers Worldwide MPLS Network Connectivity Reduce Cost

Advanced Data Center

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Jerry Armstrong

Global truck

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442% Growth Construction

Our Strategic Direction Generate Expanded End Markets

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Expanded Expanded End End Markets Markets

OEM Truck Other 1

Revenues (in millions)

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Flexible Flexible Cost Cost Structure Structure Geographic Geographic Diversity Diversity Expanded Expanded Product Product Portfolio Portfolio

North America North America North America North America Trim Trim Trim Trim Mirrors Mirrors Wipers Wipers Trim Trim Mirrors Mirrors Wipers Wipers Seats Seats Wire Harn. Wire Harn. Trim Trim Mirrors Mirrors Wipers Wipers Seats Seats Europe

Regional Location Product Diversification

Our Strategic Direction

Generate a Lean and Flexible Cost Structure

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Awarded new business from our top four customers

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GT 2007 Highlights

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Global Truck received several awards

MAN Supplier of the Year Award Freightliner Master’s of Quality Award PACCAR Quality Achievement Award MAN Trucknology Supplier Award Henry Ford Technology Award International Diamond Supplier Award

Operational Operational Excellence Excellence

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GT 2007 Highlights

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2007 Product Launches

P3 Trim/Seats Prostar Cabs/Seats MRAP Seats/Trim Western Star Trim North America Office Seat Aftermarket Seats

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Expanded Expanded Product Product Portfolio Portfolio

GT 2007 Highlights

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Operational Excellence Position Business for Globalization Develop Top Talent and Improve Bench Strength Diversify Market Portfolio Integrate a Flexible and Competitive Cost Structure into Acquisitions

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GT 2008 Priorities

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Gordon Boyd

Global Construction

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Seat Plant (5) Wire Harness Plant (6) Key Seat Distributor (37)*

Our Strategic Direction Generate Geographic Diversity

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Europe 100% Europe 90% Hubs 10%

Components Assembly

2004

Europe Low cost countries Europe Low cost countries Hubs

2008E

Low cost countries Europe Low cost countries Hubs

2011 Objective

Europe

Our Strategic Direction

Generate a Lean and Flexible Cost Structure

Flexible Flexible Cost Cost Structure Structure

Geographic Geographic Diversity Diversity

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2011 Objective

Mexico US Chin a Europ e

2004

Mexico 40% US 60%

Revenue by location

2008E

Mexico US Europe

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Our Strategic Direction

Generate a Lean and Flexible Cost Structure

Geographic Geographic Diversity Diversity

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CNH Deere-Hitachi Fiat-Kobelco Doosan Hitachi Caterpillar JCB

USA BRAZIL UK SWEDEN FRANCE BELGIUM ITALY INDIA CHINA KOREA TASMANIA JAPAN

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Generate Customer Diversity Our Strategic Direction

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Kawasaki Kobelco Komatsu Komdresco Kubota Sumitomo Volvo Terex Hyundai

USA BRAZIL UK SWEDEN BELGIUM ITALY CHINA KOREA JAPAN CANADA GERMANY

Linkbelt Takeuchi

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Generate Customer Diversity Our Strategic Direction

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UK ITALY CHINA KOREA JAPAN CANADA GERMANY

Oshkosh Corp

BRAZIL

CAT

BELGIUM

Deere

SWEDEN USA

Komatsu

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Generate Customer Diversity Our Strategic Direction

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800 Series XH2/Pans 100 Series 200 Series 300 Series 400/700 Series 500 Series Office Generate a Culture of Innovation and Technology Our Seat Product Portfolio

Our Strategic Direction

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New Products 600 Series

Modular Seat Concept

Designed to reduce number of assemblies and parts and for easier build and servicing

KAB Air 65/K4 40

Generate a Culture of Innovation and Technology

Our Strategic Direction

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K-Series office chair Compact Semi-suspension Seat for light duty Construction and Industrial machines

Our Strategic Direction

Generate a Culture of Innovation and Technology

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Wire Harness

Developing leading edge solutions for our customers

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Our Strategic Direction

Generate a Culture of Innovation and Technology

Moulded systems are more aesthetic and durable. Creating CVG branded CN Series Connectors and solid terminals Create CVG brand protective Boots and Plugs Program managing customer solutions

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Chad M. Utrup

Financial Overview

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Since 2001, we have:

Grown our OEM Truck market revenues 95% (the market has only grown 45% during this period) Grown our OEM Construction market by 442% Grown our “Other” markets by 153%

Our Strategic Direction

Generate Expanded End Markets

442% Growth 95% Growth 153% Growth

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Expanded Expanded End End Markets Markets

Revenue (in millions)

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Since 2001, we have:

Grown our revenues by approximately 156% with our top five customers Gone from two to five customers with greater than 10% or more of our total revenues In 2007, we also added a key customer in MAN through the PEKM acquisition

Major Customers 2001 % Total Revenues 2007 % Total Revenues Paccar 44.4 16.4% 97.6 14.0% Freightliner/Sterling/WS 56.9 21.0% 73.8 10.6% International 21.1 7.8% 78.4 11.3% Volvo / Mack 23.3 8.6% 73.8 10.6% Caterpillar 10.9 4.0% 78.1 11.2% ($ in millions)

Generate Customer Diversity

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Customer Customer Diversity Diversity

Our Strategic Direction

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Since 1999, we have: Grown our Product Portfolio from

  • ne

primary product to five

Our Strategic Direction

Generate An Expanded Product Portfolio

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Expanded Expanded Product Product Portfolio Portfolio

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Our Strategic Direction

Generate Geographic Diversity

Columbus, OH Chillicothe, OH Dublin, VA Seattle, WA Vancouver, WA Statesville, NC Denton, TX Toluca, MX

1999

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Our Strategic Direction

Generate Geographic Diversity

2007

Belgium Seneffes (Brussels) Czech Republic Prague Brandys nad Orlici Liberec United Kingdom Northampton Ukraine Kamyanets-Podilsky Australia Adelaide Brisbane Melbourne Mackay China Shanghai

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Conclusion:

Our Strategy & Abilities as a Company are Proven

Market and Economic events have recently impacted us, yet we remain strong and viable We are structured for Growth – operationally, strategically, commercially

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Revenues Operating Income

Our Strategic Direction

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Q&A

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