MATS Investor Meeting March 2014

Transcription

1 INDUSTRY-LEADING COMMERCIAL VEHICLE PRODUCTS MATS Investor Meeting March 2014 accuridecorp.com

2 Forward Looking Statements Statements contained in this news release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding Accuride s expectations, hopes, beliefs and intentions with respect to future results. Such statements are subject to the impact on Accuride s business and prospects generally of, among other factors, market demand in the commercial vehicle industry, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Accuride s Securities and Exchange Commission filings, including those described in Item 1A of Accuride s Annual Report on Form 10-K for the fiscal year ended December 31, Any forward-looking statement reflects only Accuride s belief at the time the statement is made. Although Accuride believes that the expectations reflected in these forward-looking statements are reasonable, it cannot guarantee its future results, levels of activity, performance or achievements. Except as required by law, Accuride undertakes no obligation to update any forward-looking statements to reflect events or developments after the date of this news release. 2

3 Accuride Overview Leading supplier of components to the North American commercial vehicle industry #1 producer of steel wheels; #2 producer of aluminum wheels Brake drums, disc wheel hubs and slack adjusters among leaders in their categories 3 Business units : Accuride Wheels, Gunite, and Brillion Iron Works 2,250 associates in North America with 9 operational sites Serve Class 5-8 OEMs (Truck & Trailer) and Aftermarket segments; Mining & Industrial $642.9 million FY 2013 Consolidated Revenue, as follows: Businesses Customers Markets 3

4 Our Vision Fix & Grow Accuride Vision: Accuride will be the premier supplier of wheel-end system solutions to the global commercial vehicle industry Shifting Focus to Growth Significant Operational Improvements Made 4

5 Fix & Grow Strategic Progress Brillion Farm NOV 2010 Bostrom JAN 2011 Fix & Divest Non-Core Assets Fabco JUN 2011 SEP 2011 Camden $22 Million Aluminum Expansion $33 Million CAPEX Fix & Grow Core Assets Q Gunite Upgrades $61 Million CAPEX Steel Wheel Upgrades $40 Million CAPEX Brillion Imperial Group Q

6 2013 Performance 2013 Performance: Achievements Continued margin improvement despite lower volumes Reduced breakeven points on all three business units & reduced SG&A costs Significantly improved quality (PPM), delivery and lead-times to customers Improved Liquidity: Efficiently managing working capital, renewed $100M ABL & sold Imperial Group Gunite Business Stabilized & Fixed: Achieving positive operating income; approaching world-class operating metrics New Technology Introductions Steel Armor Coating Technology (Q4) Gunite Silver Lightweight Brake Drum (Q3) Challenges Challenges Operating at or near breakeven levels: Weak industry volumes (NA Truck, global construction) impacted all business units Abnormal operating costs: Hub consolidation/launch (1H13), Distribution relocation (2H13) Pull back in global mining and industrial markets hurt Brillion revenues, recovery

7 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 2/1/1984 7/1/ /1/1986 5/1/ /1/1989 3/1/1991 8/1/1992 1/1/1994 6/1/ /1/1996 4/1/1998 9/1/1999 2/1/2001 7/1/ /1/2003 5/1/ /1/2006 3/1/2008 8/1/2009 1/1/2011 6/1/ /1/2013 Industry Indicators ISM Manufacturing Index Commercial Vehicle Demand (Wheels & Gunite) Achievements Fleet Utilization Fleet Age Construction and Mining Machinery Demand (Brillion) CAT Worldwide Retail Machine Sales Housing Starts NA Machinery Demand 80% 60% 40% 20% 0% -20% 600, , , , , ,000 Forestry Agricultural Earthmoving Material Handling -40% -60% Strong commercial vehicle industry improvements are offset by Brillion s end markets 7

8 Class Build Projections 80,000 Bar Base Delta FTR ACT 75,000 70,000 65,000 60,000 55,000 50, Full Year FTR 273,036 ACT 277, Full Year FTR 242,936 ACT 245, Full Year FTR 268,706 ACT 284,552 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 FTR 73,306 77,720 63,895 58,115 52,784 66,273 63,373 60,506 61,206 66,800 68,200 72,500 ACT 77,701 78,268 64,901 57,850 54,737 67,064 63,432 60,263 65,889 72,088 74,587 71,988 1Q13 was the trough of the cycle moving in right direction 8

9 GROW PROCESS IMPROVEMENTS Shifting Focus to Growth 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Plex ERP Implementation Wheels ADC Steel Wheel Coating Systems Install Launch Select Foundry Upgrades Gunite & Brillion New Technology Introductions Wheels & Gunite Aluminum Wheel Capacity Utilization Gunite Market Share Global Wheel Expansion Our efforts are increasingly focused on the Grow portion of our Fix & Grow plan! 9

10 Steel Armor - $6.5M Investment Henderson Paint Line Monterrey Paint Line January 2014 Accuride 100% powder coat finish Henderson and Monterrey Steel Armor leapfrogs existing steel wheel coating technology Standardized paint & chemical supply, processes Strong fleet interest Powerful Corrosion Protection l Superior Finish l Reduced Refinishing Costs 10

11 Powerful Corrosion Protection Steel Armor employs a proprietary three-phase protection process that fights corrosion, improving the life and look of every steel wheel Accuride sells Proprietary Powder Coat Epoxy E-Coat with Sharp Edge Protection Zinc Phosphate Pre-Treatment Zinc Phosphate It all starts with our unique formula of trimetal Zinc Phosphate the same fundamental high-performance chemistry used by leading automakers which prepares the metal for maximum adhesion. Epoxy Coat Next, we apply our new enhanced cathodic epoxy electrocoat (E-coat) optimized for sharp edge and overall corrosion protection. Powder Coat Finally, we spray on an exacting application of our premium Powder Top Coat, formulated exclusively for Accuride to meet the tough demands of the heavy truck environment. 11

12 Industry Leading Performance Acrylic E-Coat Previous Accuride Powder Coat Competitive Powder Coat Steel Armor 336 to 500 hrs. 1,200 to 1,800 hrs. 1,200 to 1,800 hrs. 2,500 to 3,000 hrs. Blister Rating 6-7 Marginal edge corrosion protection Blister Rating 7-8 Improved edge corrosion protection Moderate scribe creep Blister Rating 7-8 Improved edge corrosion protection Moderate scribe creep Blister Rating 9-10 Superior edge corrosion protection Minimal scribe creep Steel Armor - superior protection from corrosion 12

13 Reduces Refinishing Costs Steel Armor Accuride s superior coating technology enables fleets to defer their first wheel refinishing cost by at least two years Some fleets will be able to avoid refinishing entirely before trading their vehicle Delaying refinishing reduces the risk of excess paint on the wheel mating surfaces, thereby limiting wheel-damaging torque retention issues (TMC RP 237A) Improved corrosion protection should also translate into higher residual values for trucks being sold or traded Accuride Steel Armor 18 Wheels Per Vehicle Delaying Refinishing 2 Yrs. Can Save Fleets $630,000 (For a 1,000-Unit Fleet) 13

14 2014 Outlook 14

15 2014 Full Year Guidance Class 8 260K to 275K Class K to 215K Trailer 235K to 245K Brillion Revenue Growth 0.0% to 2.5% Net Sales $650 to $685 Adjusted EBITDA $60 to $70 CAPEX $22 Depreciation & Amortization $43 Cash Interest Expense $32 Cash Taxes $3 Cash Pension Funding $16 Free Cash Flow Cash from Ops minus Capex $0 to ($5) Proceeds from Divestitures/Other $1.1 15

16 Positioned for the Future Majority of the Actions to Fix Accuride are Complete Steel wheel capacity consolidated and upgraded Aluminum wheel capacity & footprint expanded Gunite restructured and profitable Common LEAN Operating Systems implemented Non-Core assets divested Advancing our Product Technology Steel Armor coating established the new industry benchmark Several new initiatives in our pipeline for Focused on Profitable Growth Regain share at both Accuride Wheels and Gunite Opportunistically expand globally Poised For Success! 16

17 Questions 17

18 INDUSTRY-LEADING COMMERCIAL VEHICLE PRODUCTS MATS Investor Meeting March 2014 accuridecorp.com