2015 annual shareholder meeting - cts...2015 annual shareholder meeting safe harbor statement 2 this...
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May 21, 2015
2015 Annual Shareholder Meeting
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Safe Harbor Statement
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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.
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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
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1 SIMPLIFY – Smaller, Leaner, More Profitable
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($ 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 %
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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 $51 million
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MoveSense
Connect
2 FOCUS – Diversified Portfolio – Sense | Connect | Move
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2 FOCUS – Broad Customer Base
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New European
OEM
Medical
Light Vehicle
Industrial, Defense Communications
Industrial, Computer
Distribution
Light & Commercial Vehicle
Computer
Industrial
MoveSense
Connect
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Drive Profitable Growth – New Business Awards3
8
($ millions)
$299
$484
$192
2012 2013 2014 2015
NotReported
1Q NotReported
2Q‐4Q
1Q YTD
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Drive Profitable Growth – Diversify End Markets3
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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
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Drive Profitable Growth3
10
MOVESENSE CONNECT
Target Growth Rate ~10%, Organic + Inorganic
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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
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ResponsivePlay to Win SolutionsOriented
Integrity | Respect | Self Confidence
CTS CORE VALUES
Simplicity
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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
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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