INVESTOR PRESENTATION //// DECEMBER 2018
DISCLAIMER FORWARD LOOKING STATEMENTS This presentation includes “forward looking statements” within the meaning of the “safe harbor” provisions of the United Stat es Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward looking statements with respect to revenues, earnings, financial information, performance, strategies, prospects and other aspects of the businesses of Jason Industries, Inc. (the “Company”) are based on current expectations that are subject to risks and uncertainties. A number of f actors could cause actual results or outcomes to differ materially from those indicated by such forward looking statements. The forward ‐ looking statements contained in this presentation are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. The forward-looking statements are not guarantees of performance or results, as they involve risks, uncertainties (some of which are beyond our control) and assumptions. Although we believe that these forward ‐ looking statements are based on reasonable assumptions, many factors could affect our actual results and cause them to differ materially from those anticipated in the forward-looking statements. More information on potential factors that could affect the Company’s financial condition and operating results is included in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10 -K filed on March 1, 2018, and in the Company’s other filings with the Securities and Exchange Commission. Any forward ‐ looking statement made by the Company in this presentation speaks only as of the date on which we make it. We undertake no obligation to publicly update any forward ‐ looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. NON-GAAP AND OTHER COMPANY INFORMATION Included in this presentation are certain non-GAAP financial measures designed to complement the financial information presented in accordance with generally accepted accounting principles in the United States of America because management believes such measures are useful to investors. Because the Company’s calculations of these mea sures may differ from similar measures used by other companies, you should be careful when comparing the Company’s non -GAAP financial measures to those of other companies. A reconciliation of non-GAAP financial measures to GAAP financial measures is included in an appendix to this presentation. JASON INDUSTRIES – INVESTOR PRESENTATION DECEMBER 2018 //// PAGE 2
JASON INVESTMENT HIGHLIGHTS STRONG FUNDAMENTAL BUSINESS Leader in target Global manufacturing Diversified end market markets, significant footprint, serving Free cash flow exposure scale versus longstanding generation competition customer base MULTIPLE PATHS TO VALUE CREATION Margin expansion Targeted sales growth EBITDA growth • Global cost reduction program • Focusing on the core, exiting • Increasing intimacy with end-users generating $25M in annual savings noncore businesses, product lines, to improve product portfolio and customers positioning • Operational improvements • Pricing opportunities • New product development through • Footprint optimization – five specific initiatives and investment facilities consolidated, more to come JASON INDUSTRIES – INVESTOR PRESENTATION DECEMBER 2018 //// PAGE 3
OUR SIMPLIFIED OPERATING MODEL Plant growth seeds De-lever Improve Generate balance operations cash sheet Fund self- help projects Simplification Prioritization Effort Execution Decisiveness JASON INDUSTRIES – INVESTOR PRESENTATION DECEMBER 2018 //// PAGE 4
JASON OVERVIEW KEY COMPANY FACTS GEOGRAPHIC FOOTPRINT Employees ~4,000 Headquarters Milwaukee, WI 2017 Revenue $648.8 million 2017 Adjusted EBITDA $67.8 million Founded 1985 Listed on NASDAQ (JASN, JASNW) July 2014 Manufacturing 33 Sites in 12 Countries FINANCIAL PROFILE NET SALES ADJUSTED EBITDA ($ in Millions) ($ in Millions) $800 $90 $77.8 $81.2 $80 $708.4 $705.5 $67.8 $66 - $70 $702.5 $700 $70 $64.2 $648.8 $60 $600 - $615 11.5% 11.1% ~11% $50 $600 10.4% $40 9.1% $30 $500 $20 $10 $400 $0 ʼ14 ʼ15 ʼ16 ʼ17 ʼ18E ʼ14 ʼ15 ʼ16 ʼ17 ʼ18E JASON INDUSTRIES – INVESTOR PRESENTATION DECEMBER 2018 //// PAGE 5
SEGMENT OVERVIEW % OF JASON TTM ADJUSTED SEGMENT KEY HIGHLIGHTS BRANDS TTM REVENUE TTM REVENUE EBITDA % • World’s leading producer of industrial brushes, buffs and polishing compounds • Used for surface preparation, $210M 14% cutting, finishing, polishing, and 34% sealing • Only global provider supplying full product portfolio range FINISHING • 85% consumable, high recurring revenue • Expanded and perforated metal solutions • Used in filter products, safety $88M 13% grating, security fencing, railcars, 14% and other industrial equipment • Industry-leading engineering, coupled with customized components and individualized COMPONENTS solutions JASON INDUSTRIES – INVESTOR PRESENTATION DECEMBER 2018 //// PAGE 6
SEGMENT OVERVIEW % OF JASON TTM ADJUSTED SEGMENT KEY HIGHLIGHTS BRANDS TTM REVENUE TTM REVENUE EBITDA % • Leading seating systems provider for niche applications • Designs and manufactures comfort $161M 12% solutions for heavyweight 26% motorcycles, turf care, heavy industry, and powersports • Market-leading industrial design and rapid prototyping capability 90% SEATING • Leading manufacturer of lightweight molded fiber panels and accessories $167M 13% • Provide content for over half of 27% light vehicle platforms in North America • Plastic to fiber technology conversion expertise ACOUSTICS JASON INDUSTRIES – INVESTOR PRESENTATION DECEMBER 2018 //// PAGE 7
TARGETED GROWTH INITIATIVES Finishing Seating • Geography • Innovative design and rapid prototyping Middle East, APAC, Mexico • Platform placement • Vertical markets • Globalization of customers Oil & gas, heavy fab, automotive, process • New product development Acoustics Components • • Build bridge from old to new platforms Geography Mexico, southern US • Diversifying customer base • Market diversification • Continued market share gains Safety grating, security fencing, architectural Plastic to fiber technology conversion Increased End-User Interface And Intimacy JASON INDUSTRIES – INVESTOR PRESENTATION DECEMBER 2018 //// PAGE 8
OSBORN GROWTH Jason’s most diverse and highest profit business Engaged employees … …in teracting directly with end- users… …to help do the job bett er… …encouraged to pursue their passions… Building Relationships In a few weeks, our Vice President of Brush, is Building Value branding his personal race car with Building The Brand the Osborn logo for @NHRA@ LucasOilRaceway. Talk about loyalty! We can't wait to show you. Stay tuned.#finishfirst • Globally recognized brand possessing >130 year history • Extensive range of recurring revenue / consumable products to prepare, process and finish surfaces ranging from wood to metal to composite • Diverse customers, industries, channels and geography providing multiple avenues for growth JASON INDUSTRIES – INVESTOR PRESENTATION DECEMBER 2018 //// PAGE 9
LEAN TRANSFORMATION Numerous Initiatives Across The Enterprise Adding Up To Meaningful Improvement JASON INDUSTRIES – INVESTOR PRESENTATION DECEMBER 2018 //// PAGE 10
ENGAGED WORKFORCE • Continued investment in talent • Upgraded team comprised of long- tenured performers and newly recruited expertise • Increasing engagement with our customers, in our plants and in our communities Improved And Expanded Organizational Capabilities JASON INDUSTRIES – INVESTOR PRESENTATION DECEMBER 2018 //// PAGE 11
COST REDUCTION AND MARGIN EXPANSION PROGRAM Annual EBITDA Impact SELF HELP PROGRAMS Annual Savings Savings Target Over Achieved 3 Years 2016 2017 2018 2019 SG&A RESTRUCTURING $8M $3M -- -- $11M $10M • Actions exceeded target OPERATIONS OPTIMIZATION • Supply chain project $13M $15M $2M $7M $3M $1M • Footprint rationalization $24M $25M $10M $10M $3M $1M ACTIONS PROGRESS UPDATE UK FACILITY CLOSURE IN PROCESS / ON TRACK 4Q18 FINISHING BRAZIL EXIT COMPLETE • Consolidating Nuneaton, U.K. plant into existing facilities • Annual cost savings of $0.1M, ~$0.7M of restructuring costs to be FACILITY SALE LEASEBACK COMPLETE funded via expected net proceeds of $3.3M from facility sale ADDITIONAL ACTIONS PENDING ACOUSTICS SALE OF EUROPEAN OPERATIONS COMPLETE FINISHING VIRGINIA FACILITY CLOSURE COMPLETE COMPONENTS FACILITY CLOSURE COMPLETE ACOUSTICS FACILITY CONSOLIDATION COMPLETE JASON INDUSTRIES – INVESTOR PRESENTATION DECEMBER 2018 //// PAGE 12
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