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

2016 Annual Shareholder Meeting May 19, 2016

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

Executing on our Strategy: 2015 Highlights  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 3

Our Vision We aim aim t to b be a a le lead adin ing p provider of of 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 Market T Trends nds Pr Prod oducts Applications  Vehicles with added intelligence, safety and connectivity  Vehicle smart lighting  Improved medical diagnostics and drug Single Crystal Piezo Ride  4D and intravascular ultrasound Smart Height delivery Sensor  Smart appliances Appliance  Smart Home sensing and new technology Sensor for human machine interface  RF sensing for efficient use of  Powertrain, transmission and exhaust diesel particulate filters sensing to enable fuel efficiency Eff fficien ent Turbo RF Sensor  Wireless charging  Energy harvesting for devices and self Actuator powered sensors  Powering of medical implants Piezo Sensor  Internet of Things: 50 Billion connected  Small Cells devices by 2020 RF Filters Connec ected ed  100GB Wired Networks  Densification of networks for higher  NYSE Transactions resolution video and faster data transfer Timing Components CTS makin ing o organic ic and inorgan anic i inves estments to e expand SAM i in growth m mar arkets 5

Product Applications in Light and Commercial Vehicles Fuel H l Handlin ling Occu ccupant Safe fety Engin gine E Efficie iency  Contacting Fuel Level Card  Seat Belt Buckle Switch  Accelerator Pedal Module  Seat Belt Tension Sensor  Current Sensor  Seat Track Position Sensor  Gear Position Sensor  Throttle Position Sensor  Turbo Actuator  Turbo Position Sensor  Variable Valve Lift Sensor Chassis is / / Driv ivelin line Exhau aust M Man anag agem emen ent / /  Air Grill Shutter Actuator After ertreatmen ent  Brake Pedal Sensor  EGR Position Sensor  Chassis Height Sensor  DPF RF Sensor  Transmission Speed Sensor  Transmission Range Sensor  Wheel Speed Sensor Key C Custome mers New New European European Customer #1 Customer #2 6

Product Applications in Medical Imaging and Devices Ultrasound / / IVUS Infusio ion P Pumps, C CPAPs a and  Single Crystal Piezo other er m med edical al d dev evices es  Bulk Piezo  Piezo micro-valves  Encoders  Encoders  Frequency Control  Switches  Joysticks Key C Custome mers

Product Applications in Industrial and Military Industria ial P l Prin inters, HV HVAC, Mi Milit itary S Sonar a and Automation a and S Safety P Products Communic icatio ion P Products  Piezo micro-actuators  Piezo hydrophones  Switches  Piezo sonar arrays  Encoders  Frequency Control  Frequency Control  EMI Filters  EMI Filters Key C Custome mers

Single Crystal Technology Acquisition  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 Current A Applic licatio ions – 3D & & 4D U Ultraso sound, , IVUS US Future A Applications – Hearing A Aid, P , Pace cemaker Traditional Technology Single Crystal Technology Single crystals create higher quality imaging compared to current solutions Wireless powering of Implantable hearing aids to pacemakers replace cochlear implants Advanced imaging with Intravascular Ultrasound (IVUS) used to detect plaques that cause heart disease 9

RF Sensor Technology Acquisition  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 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 Historic ical f l flee eet C CO 2 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: Diesel Particulate Filter (DPF) CTS R RF Sensor B Benefi fits ts I Include:  Up to 4% better fuel economy  Reduced CO 2 emissions  Lower risk of DPF damage  Direct Measurement 10 Source: International Council of Clean Transportation

Diversifying End Markets Organically and with Acquisitions Targeted End Markets Light Vehicles 30-50% AD Single le C Crys ystal al acquisition ion d double les Industrial 20-30% C/IT LV current C CTS s sale ales t to me medic ical mar l market Medical 10-20% Comm. / IT 10-20% CV Commercial Vehicles 10-20% RF S Sensing a g acquisition f furth ther Aviation/Defense 5-15% diversifie ies CTS i in comm mmercial ial vehic icle les M O M I LV/CV DA C I AD C/IT Organic Growth CV Innovation M&A M LV EMS Divestiture M IT/O AD I Front End Refocus Legend: C AD: Aviation/Defense C: Communications I CV: Commercial Vehicles New Customers LV/CV I: Industrial Regional Expansion IT: Information Technology Organic Projects LV: Light Vehicles M: Medical M&A O: Others 11

Targeting 10% Revenue Growth (Organic + Inorganic) Simplified ed a and nd F Focused sed t the B he Busi siness I Footprint Optimization i Profitability Improvement ii ii Positioni ning ng f for Growth a h around nd Sense, C Connect a and Move ve II II Execute on organic growth i Invest in Innovation for new product development ii ii Complement portfolio with targeted M&A ii ii 12