2015 annual shareholder meeting - cts...2015 annual shareholder meeting safe harbor statement 2 this...

13
May 21, 2015 2015 Annual Shareholder Meeting

Upload: others

Post on 23-Jun-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

May 21, 2015

2015 Annual Shareholder Meeting

Page 2: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

Safe Harbor Statement

2

This presentation contains statements that are, or may bedeemed to be, forward‐looking statements within the meaningof the Private Securities Litigation Reform Act of 1995. Theseforward‐looking statements are subject to various risks anduncertainties, and as a result, actual results may differmaterially from those expressed in the forward‐lookingstatements. These risks and uncertainties are discussed infurther detail in the quarterly and annual SEC filings of thecompany.

Page 3: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

Drive Profitable GrowthSimplify Focus

The CTS Strategy

1 2 3

3

• Exited EMS business

• Improved cost structure

• Right‐sizing global footprint

• Renewed approach and reenergized culture

• Sharpening focus on core strengths ‐

Sense | Connect | Move

• Meeting the evolving needs of customers

• Refreshing brand and communication approach

• Continued market driven new product innovation

• Investing in global sales and marketing capabilities

• Enhancing capabilities in new geographies

• Investing in R&D

• Evaluation of value‐enhancing external  opportunities  

Investment Decisions Driven Around    SENSE | CONNECT | MOVE

Page 4: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

1 SIMPLIFY – Smaller, Leaner, More Profitable

4

($ millions)

Sales and EPS

$577 

$404 

$0.64 

$0.97 

2012 2014Sales Adj EPS

Footprint

Gross Margin %

20 

12 

35%

65%

2012 2014

Mfg Plants Best Cost %

21.2%

32.2%

($ millions)

Operating Expenses

$80 

$59 

$21 

$23 

2012 2014

SG&A R&D

(% of Sales)

Controllable Working Capital

16.8%

10.3%

2012 2014

CWC %

Page 5: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

5 Year Share Performance

5

Base 100(1/10 – 12/14)

S&P 500

CTS

Smaller company, improved valuation

$51 million cash returned to Shareholders

Dividend $23 million

Share Buybacks 28 million

Total Cash Returned to Shareholders $51 million

Page 6: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

MoveSense

Connect

2 FOCUS – Diversified Portfolio – Sense | Connect | Move

6

Page 7: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

2 FOCUS – Broad Customer Base

7

New European

OEM

Medical

Light Vehicle

Industrial, Defense Communications

Industrial, Computer

Distribution

Light & Commercial Vehicle

Computer

Industrial

MoveSense

Connect

Page 8: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

Drive Profitable Growth – New Business Awards3

8

($ millions)

$299 

$484 

$192 

2012 2013 2014 2015

NotReported

1Q NotReported

2Q‐4Q

1Q YTD

Page 9: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

Drive Profitable Growth – Diversify End Markets3

9

LV/CV

I

C

DA

MO

LV

I

M

CVC/IT

AD

LV/CVI

C

ADM

IT/O

LV

IM

CV

C/IT

AD

SIMPLIFY

FOCUS

DRIVE PROFITABLEGROWTH

30-50%20-30%10-20%10-20%10-20%5-15%

Targeted End MarketsLight VehiclesIndustrialMedicalCommercial VehiclesComm./ITAviation/Defense

EMS DivestitureFront End Refocus

New CustomersRegional ExpansionOrganic ProjectsM&A

Legend:AD: Aviation/DefenseC: CommunicationsCV: Commercial VehiclesI: IndustrialIT: Information TechnologyLV: Light VehiclesM: MedicalO: Others

Organic GrowthInnovationM&A

Page 10: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

Drive Profitable Growth3

10

MOVESENSE CONNECT

Target Growth Rate ~10%, Organic + Inorganic

Page 11: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

11

CTS Management Team

Ashish AgrawalVice President &

CFO

Bob PattonVice President, General Counsel& Secretary

Albert VidiellaEx. Director,Corporate

Development

Tony UrbanVice President &GM, Sensors &Mechatronics

Mark CassensVice President &

GM, PiezoElectronicProducts

Mario SaucedoVice President &GM, ElectronicComponentsSolutions

MC YenVice President &

GM,Electrocomponents

OPENVice President

Human Resources

Kieran O’SullivanChairman,

President & CEO

Page 12: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

ResponsivePlay to Win SolutionsOriented

Integrity      |      Respect      |      Self Confidence

CTS CORE VALUES

Simplicity

12

CTS VISION

Our Vision is to become a leading provider of sensing and motion devices as well as connectivity components, 

enabling an intelligent and seamless world.

Moving Forward

Page 13: 2015 Annual Shareholder Meeting - CTS...2015 Annual Shareholder Meeting Safe Harbor Statement 2 This presentation contains statements that are, or may be deemed to be, forward‐looking

13

Summary

Transformation• Smaller, more profitable company• Speed and industry focus with customer intimacy• Strategic clarity, alignment and commitment

Organization• Board of Directors• New management team• Evolving Culture• Prudent cost management• Ethical

Clear Strategy• Simply, focus, drive profitable growth• Sense | Connect | Move