INVESTOR PRESENTATION //// MAY 2018 - …investors.jasoninc.com/.../jason-investor-presentation-may-2018.pdf · This presentation includes “forward looking statements” within

INVESTOR PRESENTATION //// MAY 2018

2

DISCLAIMER

FORWARD LOOKING STATEMENTS

This presentation includes “forward looking statements” within the meaning of the “safe harbor” provisions of the United States 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 factors 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 measures 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 MAY 2018 //// PAGE

3

JASON INVESTMENT HIGHLIGHTS


STRONG FUNDAMENTAL BUSINESS

MULTIPLE PATHS TO VALUE CREATION

EBITDA growth

• Global cost reduction program

generating $25M in annual savings

• Operational improvements

• Footprint optimization – five

facilities consolidated, more to

come

• Focusing on the core, exiting

noncore businesses, product lines,

and customers

• Pricing opportunities

• Increasing intimacy with end-users

to improve product portfolio

positioning

• New product development through

specific initiatives and investment

• Expansion into targeted

geographies

Diversified end market

exposure

Leader in target

markets, significant

scale versus

competition

Global manufacturing

footprint, serving

longstanding

customer base

Free cash flow

generation

Margin expansion Targeted sales growth

4

OUR SIMPLIFIED OPERATING MODEL

Simplification

Prioritization

Effort

Execution

Decisiveness

Improve

operations

Generate

cash

Plant growth

seeds

Fund self-

help projects

De-lever

balance

sheet


5

Low single-digit organic sales decline, in line with expectationsOrganic growth in Finishing and Components industrial segments

Softness in Seating and Acoustics OEM segments

150 bps gross profit margin improvement

Adjusted EBITDA margin growth in all 4 businesses, first time since 2014 go-public transaction

Increased free cash flow through improved operations

Continued footprint rationalization progressLibertyville facility consolidation completed

Acoustics Richmond operations rationalization actioned

Q1 2018 RESULTS


Revenue

$167.3M

2.1% organic

decline

Solid Start To 2018

Adj. EBITDA

$19.7M, 11.8%

120 bps

Free Cash Flow

$0.2M

$0.7M

Net Leverage

5.3x

¼ of a turn

6

JASON OVERVIEW

KEY COMPANY FACTS

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

GEOGRAPHIC FOOTPRINT

FINANCIAL PROFILE

$702.5 $708.4 $705.5

$648.8 $600 - $615

$400

$500

$600

$700

$800

ʼ14 ʼ15 ʼ16 ʼ17 ʼ18E

$77.8 $81.2

$64.2 $67.8 $66 - $70

11.1% 11.5%

9.1%

10.4%~11%

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

ʼ14 ʼ15 ʼ16 ʼ17 ʼ18E

NET SALES($ in Millions)

ADJUSTED EBITDA($ in Millions)


7

SEGMENT OVERVIEW


SEGMENT KEY HIGHLIGHTS BRANDS 2017 REVENUE

% OF JASON

2017 REVENUE

2017 ADJUSTED

EBITDA %

• World’s leading producer of

industrial brushes, buffs and

polishing compounds

• Used for surface preparation,

cutting, finishing, polishing, and

sealing

• Only global provider supplying full

product portfolio range

• 85% consumable, high recurring

revenue

$200M 14%

• Expanded and perforated metal

solutions

• Used in filter products, safety

grating, security fencing, railcars,

and other industrial equipment

• Industry-leading engineering,

coupled with customized

components and individualized

solutions

$83M 12%

FINISHING

31%

COMPONENTS

87%13%

8

SEGMENT OVERVIEW


SEGMENT KEY HIGHLIGHTS BRANDS 2017 REVENUE

% OF JASON

2017 REVENUE

2017 ADJUSTED

EBITDA %

• Leading seating systems provider

for niche applications

• Designs and manufactures comfort

solutions for heavyweight

motorcycles, turf care, heavy

industry, and powersports

• Market-leading industrial design

and rapid prototyping capability

$159M 10%

• Leading manufacturer of

lightweight molded fiber panels

and accessories

• Provide content for over half of

light vehicle platforms in North

America

• Plastic to fiber technology

conversion expertise

$207M 13%

SEATING 25%

25%

ACOUSTICS

32%

9

TARGETED GROWTH INITIATIVES


Finishing

• Geography

Middle East, APAC, Mexico

• Vertical markets

Oil & gas, heavy fab, automotive, process

• New product development

Seating

• Innovative design and rapid prototyping

• Platform placement

• Globalization of customers

Components

• Geography

Mexico, southern US

• Market diversification

Safety grating, security fencing, architectural

Acoustics

• Build bridge from old to new platforms

• Diversifying customer base

• Continued market share gains

Plastic to fiber technology conversion

Increased End-User Interface And Intimacy

10

GROWTH EXAMPLE: OSBORN


Increasing Osborn Presence

Where Products Are Used And

Purchase Decisions Are Made

Product Placement and Testimonials

Jobsite Support Vans

End-user demand generation Geographic expansionNew product development

TufBrush™ Industrial Brushes

Extreme Environment Mill Rolls

11

LEAN TRANSFORMATION

JASON INDUSTRIES - INVESTOR PRESENTATION MAY 2018 //// PAGE

Numerous Initiatives Across The Enterprise

Adding Up To Meaningful Improvement

12

COST REDUCTION AND

MARGIN EXPANSION PROGRAM


SELF HELP PROGRAMS EBITDA ImpactAnnual

Savings

Achieved

Annual

Savings

Target Over

3 Years2016 2017 2018 2019

SG&A RESTRUCTURING• Actions exceeded target

$8M $3M -- -- $11M $10M

OPERATIONS OPTIMIZATION• Supply chain project

• Footprint rationalization $2M $7M $3M $1M $13M $15M

$10M $10M $3M $1M $24M $25M

ACTIONS PROGRESS UPDATE

FINISHING BRAZIL EXIT COMPLETE

FACILITY SALE LEASEBACK COMPLETE

ACOUSTICS SALE OF EUROPEAN OPERATIONS COMPLETE

FINISHING VIRGINIA FACILITY CLOSURE COMPLETE

COMPONENTS FACILITY CLOSURE COMPLETE

ACOUSTICS FACILITY CONSOLIDATION• Consolidating Richmond, IN plant into existing facilities

• Annual cost savings of $1.8M, ~$2.1M of restructuring costs

IN PROCESS / ON TRACK 2Q18

ADDITIONAL ACTIONS PENDING

13

FINANCIAL POSITION


LIQUIDITY, DEBT & LEVERAGE FREE CASH FLOW

Focus On Debt Reduction &

Free Cash Flow Generation

(in millions)

$400

$410

$420

$430

$440

$450

$460

$0

$20

$40

$60

$80

$100

$120

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

D

e

b

t

L

i

q

u

i

d

i

t

y

Cash Revolver Availability Debt

*See Appendix for calculation of Net Debt to Adjusted EBITDA.

Net Debt To Adj. EBITDA 5.3X As Of 1Q18

Reducing debt and leverage, and improving liquidity in 2018

Preferred exchange executed on 25% of outstanding preferred shares

Rating agencies outlooks upgraded to stable

Net Debt to

Adj. EBITDA5.2X 5.6X 5.8x 6.2x 6.2x 5.7x 5.7x 5.5x 5.3x

$2.6

$11.7

$14.2

$13 - $17

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

2015 2016 2017 2018E

14

2018 OUTLOOK BY BUSINESS

Finishing: 2% – 5% Organic Sales Growth

• Strong industrial markets

• Accelerated commercial activity

• Higher value product offerings, pricing to drive margin

expansion

Components: 0% – 4% Organic Sales Growth

• Rail end markets further decline

• Growth in industrial markets

• Diversification into new markets and customers

Jason Organic Sales Decline 2 – 4%

Seating: 1% – 3% Organic Sales Decline

• Growth in construction and agricultural markets

• Exiting low margin and unprofitable business, focus on

pricing

• Heavyweight motorcycles weakness continues

Acoustics: 11% – 13% Organic Sales Decline

• Platforms rolling off mid-year, impacting 2H18

• Flat North American vehicle build, unfavorable mix of

cars/trucks

• Holding EBITDA margin on double digit volume decline

• Diversify customer base, market share gains via plastic

to fiber conversion


15

OUR JOURNEY FORWARD


Improve

Operations

Reduce

Debt Leverage

Grow

Revenues

Targeted Growth

Organizational Capability

Lean Transformation

Self-help Projects

Cash Generation

2016A 2017A 2018E 2019 2020E

Adjusted

EBITDA$64M $68M $66 - $70M > $75M

Free Cash

Flow$12M $14M $13 - $17M ~$20M

Debt

Leverage6.2x 5.5x 4.9 – 5.3x ~ 4.0x

Facilities 35 31 28 - 29 < 25

Note: Excluding Acoustics Europe divestiture, 2016 and 2017 Adjusted

EBITDA were $60M and $66M, respectively

16

SUMMARY


MULTIPLE PATHS TO VALUE CREATION

EBITDA growth

• Global cost reduction program

generating $25M in annual savings

• Operational improvements

• Footprint optimization – five

facilities consolidated, more to

come

• Focusing on the core, exiting

noncore businesses, product lines,

and customers

• Pricing opportunities

• Increasing intimacy with end-users

to improve product portfolio

positioning

• New product development through

specific initiatives and investment

• Expansion into targeted

geographies

Margin expansion Targeted sales growth

2017 EXECUTION

• Completed and ongoing restructuring actions

• Improving operations through Lean

• Free cash flow and working capital reduction

• Leverage reduction

Did What We Said We Were Going To Do,

Creating Future Value

APPENDIX


18

ADDRESSABLE MARKET(1)

$8 BILLIONWORLDWIDE

EUROPE 60%

U.S. 34%

MEXICO 4%

ROW 2%

INDUSTRIAL BRUSHES 44%

ABRASIVES 24%

INDUSTRIAL BUFFS &

COMPOUNDS 22%

OTHER 10%

FINISHING OVERVIEW

OVERVIEW

• Global manufacturer of products used for finishing, preparation, metal removal, sealing, shielding and polishing; manufacturing, distribution and sales facilities in 13 countries

• #1 manufacturer of industrial brushes, buffs and polishing compounds in the world; 85% of revenue is recurring in nature (consumable)

• Improving profit margins by consolidating facilities and employing 80/20 techniques to portfolio of products and customers

• Targeted growth initiatives through new product development, select geographies, and end-user demand generation

GLOBALLY RECOGNIZED BRAND, WITH EXCEPTIONAL REPUTATION

FOR QUALITY, PERFORMANCE, AND MARKET LEADERSHIP


Europe

55%

2017

REVENUE BY

END PRODUCT

2017

REVENUE BY

GEOGRAPHY

$188 $191 $197 $200

14% 14%

12%

14%

$0

$40

$80

$120

$160

$200

ʼ14 ʼ15 ʼ16 ʼ17

FINANCIAL PROFILE

Adjusted EBITDA %

Revenue ($ in millions)

(1) Management estimates

19

U.S. 100%

FILTRATION 36%

RAIL 33%

ELECTRIC METERS 21%

INDUSTRIAL 8%

OTHER 1%

COMPONENTS OVERVIEW

OVERVIEW

• North America’s top manufacturer of expanded and perforated metal products,

used in filtration, safety grating, security fencing, and other industrial applications

• Exited dilutive non-core product lines in 2016 and 2017, consolidated footprint

• Targeting attractive growth markets including infrastructure security, architectural

applications, and Mexico

INNOVATIVE DESIGN AND MANUFACTURING CAPABILITIES TO

SUPPORT AND SUSTAIN SUCCESSFUL, LONG-TERM CUSTOMER

RELATIONSHIPS


2017

REVENUE BY

GEOGRAPHY

2017

REVENUE BY

END PRODUCT

$124 $122

$98

$83

14%

17%

15%

12%

$0

$30

$60

$90

$120

$150

ʼ14 ʼ15 ʼ16 ʼ17

FINANCIAL PROFILE

Adjusted EBITDA %



$750 MILLIONIN NORTH AMERICA

$2 BILLIONWORLDWIDE//


20


$1.5 BILLIONWORLDWIDE

SEATING OVERVIEW

OVERVIEW

• Milsco brand maintains the #1 position in the global static seating market and

growing presence in suspension seat systems; serving heavyweight motorcycles,

turf care, heavy industry and powersports

• Enhancing operational performance through Lean manufacturing tools

• Positioned for future growth opportunities in global heavy construction and

agriculture markets

LONG-STANDING OEM CUSTOMERS REPRESENTING SOME OF THE

WORLD’S BEST-KNOWN BRANDS, INCLUDING HARLEY-DAVIDSON,

JOHN DEERE, MTD, POLARIS AND HUSQVARNA

United

States

95%


$172 $177 $161 $159

15%

11%10% 10%

$0

$50

$100

$150

$200

ʼ14 ʼ15 ʼ16 ʼ17

FINANCIAL PROFILE

Adjusted EBITDA %


2017

REVENUE BY

GEOGRAPHY

31%2017

REVENUE BY

END PRODUCT

U.S. 94%

EUROPE 6%

TURF EQUIPMENT 33%

CONSTRUCTION &

AGRIGULTURE 20%

MOTORCYCLE OEM 15%

MATERIAL HANDLING 13%

MOTORCYCLE

AFTERMARKET 12%

UTILITY VEHICLES 7%


21

OVERVIEW

• North America’s largest producer of acoustical fiber insulation and a leading

producer of automotive fiber-based molded and die-cut products

• Products are used in greater than 50% of light vehicles in North America today,

including the majority of top platforms

• Future organic growth will be driven by innovative new products, including

lightweight-fiber automotive underbodies and wheel liners

EXTENSIVE DESIGN AND MANUFACTURING EXPERTISE TO

PROVIDE CUSTOM ACOUSTICAL SOLUTIONS FOR EACH VEHICLE

PLATFORM IT SERVES


$2.5 BILLIONIN NORTH AMERICA

U.S. 69%

MEXICO 20%

EUROPE 11%

TRUNK SYSTEMS 27%

MOLDED INSULATION 27%

DIE CUT INSULATION 18%

IP CLOSEOUTS 8%

CARPET SYSTEMS 8%

WHEEL LINERS 3%

ENGINE 1%

OTHER 8%

ACOUSTICS OVERVIEW


2017

REVENUE BY

GEOGRAPHY

2017

REVENUE BY

END PRODUCT*

$219 $218

$250

$207

9%

13%

11%

13%

$0

$50

$100

$150

$200

$250

ʼ14 ʼ15 ʼ16 ʼ17

FINANCIAL PROFILE

Adjusted EBITDA %



Wheelhouse/Cowl

Under Bonnet

Hush Panels

Dashboard Insulators(Interior & Exterior)

Door Panel Insulation

Underbody

Floor/CarpetUnderlayment

LuggageCompartment

*North America only

22

FISCAL 2018 GUIDANCE

Continued Leverage Improvement Through Free Cash Flow Generation

2017

ACTUALS

2017

EXCLUDING

ACOUSTICS

EUROPE

2018

GUIDANCE

Revenue (in millions): $648.6 $625.7 $600 - $615

Adjusted EBITDA (in millions):$67.810.4%

$65.710.5%

$66 - $70~11%

Cap Ex As % Of Sales: 2.4% 2.5% ~2.8%

Free Cash Flow (in millions): $14.2 $14.2 $13 - $17

Net Debt to Adjusted

EBITDA:5.5X 5.5X 4.9X – 5.3X


23

DEBT SUMMARY


DEBT STRUCTURE

Long-Term Maturities With Covenant-Lite Terms

(in millions)

$297

$90

$23

1Q18

First Lien

Term Loan

Second Lien

Term Loan

Non-U.S. Debt

2021

2022

Maturity

45% Variable

55% Fixed

Effective Interest

Rate ~ 7.0%

COVENANTS

• Springing first lien leverage ratio covenant only

applicable when ≥$10M borrowings on U.S. Revolver

at quarter end

• Zero borrowings outstanding on U.S. revolver, strong

liquidity with no expectation to use revolver

• First lien leverage ratio of 3.78x as of 1Q18

• Covenant 4Q17 and thereafter 4.50x (if applicable)

*Note the consolidated First lien net leverage ratio under the Company’s senior secured credit facilities was 3.78x as of March 30, 2018, and excludes second lien term loan

borrowings from net debt. See Form 10-Q for further discussion of the Company’s senior secured credit facilities.

$410

24

ADJUSTED EBITDA RECONCILIATION


1Q18 1Q17

(in millions)

Net Income (Loss) $(0.8) $(0.5)

Interest expense 8.0 8.4

Tax provision (benefit) 0.3 (0.0)

Depreciation and amortization 10.8 10.0

EBITDA 18.3 17.9

Adjustments:

Restructuring 0.6 0.7

Integration and other restructuring costs 0.4 -

Share-based compensation 0.2 0.3

(Gain) loss on disposals of fixed assets – net 0.2 (0.3)

(Gain) loss on extinguishment of debt - -

Loss on divestitures - -

Total adjustments 1.4 0.7

Adjusted EBITDA $19.7 $18.6

25

ADJUSTED NET INCOME &

ADJUSTED EARNINGS PER SHARE


1Q18 1Q17

(in millions, except per share amounts)

GAAP Net Income (Loss) $(0.8) $(0.5)

Adjustments:




(Gain) loss on disposal of fixed assets-net 0.2 (0.3)

Tax effect on adjustments (0.3) (0.1)

Tax benefit 0.4

Adjusted Net Income (Loss) $0.7 $0.2

Diluted weighted average number of

common shares outstanding (non-GAAP)30.6 29.8

GAAP Net (loss) income per share available to

Common shareholders of Jason Industries$(0.09) $(0.05)

Adjustments net of income taxes:




(Gain) loss on disposal of fixed assets-net 0.01 (0.01)

Tax benefit 0.02 -

Redemption premium on preferred stock

conversion0.04

GAAP to non-GAAP impact per share - 0.03

Adjusted (loss) earnings per share $0.02 $0.01

26

NET DEBT TO ADJUSTED EBITDA


March 30, 2018

(in millions)

Current and long-term debt $ 401.1

Add: Debt discounts and deferred financing costs 8.6

Less: Cash and cash equivalents (48.0)

Net Debt $ 361.7

Adjusted EBITDA

2Q17 $ 20.6

3Q17 16.1

4Q17 12.5

1Q18 19.7

TTM Adjusted EBITDA 68.9

Divestiture TTM Adjusted EBITDA* (1.3)

Pro Forma TTM Adjusted EBITDA $ 67.6

Net Debt to Adjusted EBITDA 5.3x

*Divestiture TTM Adjusted EBITDA excludes Adjusted EBITDA prior to the date of the divestiture during the trailing twelve months


Documents

INVESTOR PRESENTATION //// MAY 2018 - …investors.jasoninc.com/.../jason-investor-presentation-may-2018.pdf · This presentation includes “forward looking statements” within