Secular Themes Drive Growth Across End Markets
- Industry 4.0
- Factory Automation
- Passenger Safety
- Defense Automation
- Improved Diagnostics
- Minimally Invasive
- Therapeutics
- Patient Experience
- Electrification
- Reduced Emissions
- Energy Efficiency
- Fluid Metering
Diversifying Revenue To High Growth End Markets Outside Of Transportation
- Transportation
- Industrial
- Medical
- Aero & Defense
- Telecom & IT
Notes:
Beginning in 2022, sales to Telecom & IT end market are included in the Industrial end market.
- Utilizing core capabilities and domain expertise in fast-growing end markets
- Investing in business development resources, process and technology capabilities
- Disciplined capital investments to support diversification strategy
Non-transportation revenue is up from 35% to 46% with a goal of >50%
Successful Business Model
The CTS Advantage - Your Partner in Smart Solutions
Technology Leadership
Recognized leader with global design and engineerng capabilities
Domain Expertise
Deep experience solving complex application requirments
Custom Engineered Solutions
Engineered solutions lead to long term customer partnerships
Global Footprint
Commercial, engineering and manufacturing presence globally
Technology and application expertise creates competitive advantage and long-term relationships with blue-chip customers
Strong Financial and Capital Allocation Framework
Financial Framework
|
20121 |
LTM2 |
Long-Term Target |
| Revenue |
$304M |
$515M |
+10% per year |
| Adj Gross Margin %3 |
30.1% |
35.2% |
35-38% |
| Adj SG&A Expense %3 |
19.4% |
15.6% |
13-15% |
| R&D Expense% |
6.9% |
4.7% |
5-6% |
| CapEx |
4.4% |
2.9% |
~4% |
Notes:
12012 Financial from Continuing Operations
2LTM through June 2024
3Adj. Gross Margin and Adj. SG&A Expense are non-GAAP financial measures. Refer to Appendix
for reconciliation of non-GAAP financial measures to the most directly comparable financial measures
calculated and presented in accordance with GAAP.
Capital Allocation Framework
Operating Cash Flow
15-17% of Sales
Growth
Capex~4% of Sales
Acquisitions60-80% of FCF
Capital Structure
Leverage 1.0-2.5x EBITDA
Cash Return to Shareholders
Dividends & Buybacks20-40% of FCF