Investor Presentation November 2015
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 include, but are not limited to, any financial or other guidance, statements that reflect our current expectations concerning future results and events, and any other statements that are not based solely on historical fact. Forward-looking statements are based on management's expectations, certain assumptions and currently available information. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. These forward-looking statements are made subject to certain risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from those presented in the forward-looking statements. Examples of factors that may affect future operating results and financial condition include, but are not limited to: changes in the economy generally and in respect to the businesses in which CTS operates; unanticipated issues in integrating acquisitions; the results of actions to reposition our businesses; rapid technological change; general market conditions in the automotive, communications, and computer industries, as well as conditions in the industrial, defense and aerospace, and medical markets; reliance on key customers; unanticipated natural disasters or other events; the ability to protect our intellectual property; pricing pressures and demand for our products; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters as well as any product liability claims; and risks associated with our international operations, including trade and tariff barriers, exchange rates and political and geopolitical risks. Many of these, and other, risks and uncertainties are discussed in further detail in Item 1A. of the Annual Report on Form 10-K. We undertake no obligation to publicly update our forward- looking statements to reflect new information or events or circumstances that arise after the date hereof, including market or industry changes. Note: This presentation was re-formatted in December 2015 to reflect the new CTS identity and presentation format. None of the information contained in the original November 9, 2015 posting has been updated or revised. This presentation speaks only as of November 9, 2015. 2
CTS’ New Identity Our r Purpo rpose: CTS has been part of the future for We’re here to enable an intelligent and 120 years. As technology has seamless world. continued to move forward, we’ve been right alongside, engineering Our r Vis isio ion: intelligent ways to meet people’s ever We aim to be a leading provider of changing needs. sensing and motion devices as well as connectivity components, enabling an Today is no different and we continue intelligent and seamless world. to reinvent ourselves by establishing a Our r Promise: new identity. New visuals and Your Partner in Smart Solutions graphics are representative of our renewed purpose, vision, promise Our r Valu lue Prop opositi tion: and value proposition. Sense. Connect. Move. To learn more, visit www.ctscorp.com 3
The CTS Story Evolved from a Purchased Component manufacturer of finished Established plants in Products Division (CPD) of Sold EMS business as products (telephones Taiwan, Mexico to Motorola, including RF Filter part of its strategy to Chicago Telephone and switchboards) to a Listed on the “Big increase cost and Piezoelectric technology. simplify, focus and Supply Company major supplier of radio Board” at the New efficiency, penetrate Entered emerging cell phone drive profitable receiver components international markets handset and base station established (later to York Stock Exchange growth market, become CTS) 1896 1902 1922 1950 1962 1964 1967 1980’s 1999 2012 2013 2015 In need of more space, When television fever Acquired James Knight & Automotive emissions Acquired Filter Acquired D&R Technology. the Company moved to hit America, the Co. Became major control requirements Sensing Technologies. Expanded strategic Elkhart, Indiana, about Company applied its supplier of quartz crystal pushed CTS into custom Innovative sensing automotive sensor product 100 miles east of radio technology to the producing oscillation in under-the-hood and platform with new technology with Chicago new television market frequency control devices chassis position sensor customers and a broader potential to become a business sensing platform product portfolio CT CTS Cor orpor oratio ion – 120 120 con ontinuous s year ears of of inn innovatio ion 4
Sales by Market and Geographic Regions Sale Sales by y Mark arket Sales by Sale y Reg egio ion Communica cations 3% % Medical 3% Defense / Aerospace 4% 4% Europe 13% Computer / Oth ther 9% Americas 54% Ind ndustrial 14% Asia 33% Transp sportation 67% Note: Based on trailing twelve months sales (Q4 2014 through Q3 2015) . Globa lobal Sup upplie ier of of Sens ensor ors, , Act ctuator ors an and Elec Electronic Com omponents 5
Strategic Focus 1 2 3 Dr Driv ive Profitable Si Simplify fy Focus Gr Growth 6
1 | Simplify: Improving Cost Structure Grow manufacturing in best cost locations – ~50% in 2013 to >80% by 2017 – ~65% in 2014 Shift SG&A spend – Increase Sales & Marketing, Optimize G&A • Improve presence in Europe and Asia • Increase customer intimacy • Lean corporate office • G&A best cost optimization Continue to fund R&D for growth • Closer to customer • Best cost optimization Nort orth Am America Eur Europe Asia Asia Glasgow ow Farmington on Hill ills Japan Albu buquerque Ostrava va Canada Tia ianjin Hopki opkinton on Nogales Taiwa iwan Elkha hart rt Jua uarez Lisle Zhon ongshan Delh lhi Matamor oros os Manu nufacturin ing Sales Offi fice Germany Sin ingapor ore Headquarters 7
2 | Focus: Competitive Strengths Res esponsive Reputation Innovatio Inn ion Mark arket-Driven Highly Res Hig esponsiv ive Established Br Es Brand + + New Product an and Fl Flexib ible to to wit ith Str Strong Development De Customers’ Reputation for or Enabled by Ena y Ind Individ idual Quality an Qu and Inn Innovativ ive Requirements Relia liability Tec echnologies Providing inn innovativ ive an and cus customiz ized solu solutio ions s for or our our customers’ most challenging needs 8
2 | Focus Sense Connect Move 9
2 | Focus: Diversified Portfolio Sense Move Sensors Micro Actuators Torque Motor HDD Inkjet Actuator Accelerator Pedals Smart Actuator Switches & Resistors Timing Components Air Grill Shutter Actuator RF Filters EMI/RFI Filters Connect 10
2 | Focus: Broad Customer Base Sense Move Medical Light & Commercial Vehicle Light Vehicle Computer Industrial New Eur urop opea ean OEM OEM Industrial, Defense Communications Industrial, Computer Distribution Connect 11
3 | Drive Profitable Growth: New Business Awards ($ Millions) $484 $299 $455 2Q-4Q 3Q YTD Not 1Q Not Reported Reported 2012 2013 2014 2015 Ne New Cus Customers in n 2015: 12
3 | Drive Profitable Growth: Diversify End Markets Targeted End Markets AD Light Vehicles 30-50% Industrial 20-30% C/IT LV Medical 10-20% Commercial Vehicles 10-20% CV Comm./IT 10-20% Aviation/Defense 5-15% M O M I LV/CV DA DRIVE PROFITABLE GROWTH C I AD C/IT Organic Growth CV Innovation M&A M LV FOCUS EMS Divestiture M IT/O AD I Front End Refocus C Legend: AD: Aviation/Defense SIMPLIFY I C: Communications LV/CV New Customers CV: Commercial Vehicles I: Industrial Regional Expansion IT: Information Technology Organic Projects LV: Light Vehicles M&A M: Medical O: Others 13
3 | Drive Profitable Growth: Organic Growth Le Leveraging Competitive Str Strengths RESPONSIVE RE REPUTATION REP INN INNOVATION Improve Imp Ut Util iliz ize New Cus Customer CTS Br Brand Products In Inti timacy Strength Str Increase Europe, Asia Leverage reputation to Evaluate new products and presence aggressively engage new alternate technologies for customer opportunities growth Sales & Marketing, R&D closer to customers Target new customers in Focus R&D on next gen existing and adjacent products – get ahead of Create Partnerships with markets legislative and consumer custom engineering trends Rebranding initiative underway Continue to grow share through vertical integration 14
Recommend
More recommend
