EX-99 2 lund011114_ex99-1.txt EXHIBIT 99.1 POWER POINT PRESENTATION SLIDE 1 - [PHOTO] Truck SLIDE 2 - Photo w/Lund International logo [LOGO] LUND International(TM) [PHOTO] Truck TO BE THE LEADER IN SATISFYING CUSTOMER NEEDS FOR TRUCK AND AUTOMOTIVE ACCESSORIES. 2 Slide 3 - LUND INTERNATIONAL Some of the information contained in our presentation today are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements involve risk and uncertainty which may lead to results significantly different from those which we expect. Factors that could impact our expected results are outlined in our annual report on page 21. As all of you will understand, changes in economic conditions, variations in product demand, product costs and operational performance can affect our expected results. As well, our ability to identify, negotiate and integrate acquisitions could also impact our results. 3 Slide 4 - LUND INTERNATIONAL MARKET LEADER PHOTO WITH CALLOUTS: CAB VISORS SIDE VENTS CAB FAIRINGS SUSPENSION SYSTEMS STEPS & RUNNING BOARDS LIGHT COVERS TUBULAR GUARDS GRILLE COVERS HOOD SHIELDS 4 SLIDE 5- STRATEGIC DEVELOPMENT * SEPTEMBER 1997 HARVEST PARTNERS ACQUIRED LUND AS PLATFORM COMPANY * DECEMBER 1997 DEFLECTA-SHIELD ACQUIRED * DECEMBER 1998 AUTO VENTSHADE ACQUIRED * JANUARY 1999 SMITTYBILT ACQUIRED 5 Slide 6 - STRATEGIC DEVELOPMENT * RESTRUCTURED MANAGEMENT -11 of 13 New Executives -Corporate HR/IS Functions -Controllers - 8 of 9 New 6 Slide 7 - STRATEGIC DEVELOPMENT * RESTRUCTURED MANAGEMENT * UPGRADED BUSINESS SYSTEMS -Starting Point - 7 Systems -Y2K Compliant - Only 2 -Currently - 2 Systems 7 Slide 8 - STRATEGIC DEVELOPMENT * RESTRUCTURED MANAGEMENT * UPGRADED BUSINESS SYSTEMS * FINANCIAL CONTROLS -Restructured Financial Reports -Key Performance Factors -Rolling Forecasts -Standardized Accounting Practices 8 Slide 9 - STRATEGIC DEVELOPMENT * RESTRUCTURED MANAGEMENT * UPGRADED BUSINESS SYSTEMS * FINANCIAL CONTROLS * EMPLOYEE PROGRAMS -People - Most Important Resource -Attractive Competitive Benefits -Standard Salary/Wage Policy -Results Sharing - Company-wide 9 Slide 10 - STRATEGIC DEVELOPMENT * RESTRUCTURED MANAGEMENT * UPGRADED BUSINESS SYSTEMS * FINANCIAL CONTROLS * EMPLOYEE PROGRAMS MORE TO DO 10 Slide 11 - LOGOS: Lund International(TM) Autotron Lund(R) Truck Accessories Auto Ventshade(R) Company Smittybilt(R) Beltmore Heavy Truck Products Deflecta-Shield(R) Styling Accessories Trailmaster(R) Suspension 11 Slide 12 - AUTOMOTIVE AFTERMARKET SALES [PIE CHART] OVER-THE-COUNTER SPECIALTY EQUIPMENT SERVICE REPAIR $165 BILLION MARKET 12 Slide 13 - SPECIALTY EQUIPMENT MARKETS [PIE CHART] $8.0 BILLION PLUS RACING & PERFORMANCE ACCESSORIES WHEELS/SUSPENSION 5% SERVED 40% SERVED MARKET SERVED $1.6+ BILLION 13 Slide 14 - DYNAMIC TRADE CHANNELS [PIE CHART] MAIL ORDER E-COMMERCE 13% RETAIL SPECIALTY 25% DEALERS/OEM AFTERMARKET 20% WAREHOUSE DISTRIBUTION 42% 80,000 OUTLETS 14 Slide 15 - ACCESSORIES MARKET [BAR CHART] [No data supplied] 15 Slide 16 - 12 MONTH SALES [PLOT POINTS CHART] Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ---------------------------------------------------------------- TRAILING 182 188 191 193 197 194 187 178 SAAR 193 194 198 195 202 183 171 154 1999 2000 16 Slide 17 - OUR RESPONSE REDUCED EXPENSES * Warehousing $2.5M 25% * SG&A $6.7M 17% 17 Slide 18 - OUR RESPONSE REDUCED EXPENSES REDUCED HEADCOUNT * From 12/99 230/17% * From 06/00 300/21% 18 Slide 19 - OUR RESPONSE REDUCED EXPENSES REDUCED HEADCOUNT CONTAINED CAPITAL EMPLOYED 1999 2000 -------------------------------------- Sales: CE 2.7 2.7 19 Slide 20 - OUR RESPONSE REDUCED EXPENSES REDUCED HEADCOUNT CONTAINED CAPITAL EMPLOYED REDUCED CAPEX 1999 Actual $6.1M 2000 Plan $6.0M 2000 Actual $4.3M 20 Slide 21 - STRATEGIC INITIATIVES - 2000 * IMPROVE KEY SUCCESS FACTORS -Quality of Customer Service -Quality of Products -Product Styling -Timeliness to Market -Product Line Breadth -Pull Promotion Programs 21 Slide 22 - STRATEGIC INITIATIVES - 2000 * IMPROVE KEY SUCCESS FACTORS * LAUNCHED PRODUCT FAMILY PLANS -28 Products - $0.1M - $40M Sales -Financials - Developed Monthly -Business Plans - OST -Resource Needs/Priority 22 Slide 23 - STRATEGIC INITIATIVES - 2000 * IMPROVE KEY SUCCESS FACTORS * LAUNCHED PRODUCT FAMILY PLANS * RESTRUCTURED ANOKA -Declining Sales/Heavy Losses -Outsourced Manufacturing -Launched Concrete Program - 26 Projects -Reduced Headcount 50% -Reduced Capital Employed 50%/$11M -Reduced Operating Losses $5M -Positioned Facility for Sale 23 Slide 24 - STRATEGIC INITIATIVES - 2000 * Improve Key Success Factors * Launched Product Family Planning * Restructured Anoka * Turnaround Longmont -Strong Category/Market Share -Poor Financial Results - Declining -Rebuilt Management Team -Restored OE Service/Product Quality -Improved Margins - Cost/Price -Operating Profit 6% to 18% / $2M to $5M 24 Slide 25 - STRATEGIC INITIATIVES - 2000 * Improve Key Success Factors * Launched Product Family Planning * Restructured Anoka * Turnaround Longmont * Relocate Suspension Division -From Michigan to California -Synergy/Cost Reduction -Delayed 4 Months -Preserved Customer Relations -Restored Volume - December 25 Slide 26 - STRATEGIC INITIATIVES - 2000 * Improve Key Success Factors * Launched Product Family Planning * Restructured Anoka * Turnaround Longmont * Relocate Suspension Division * Grow Smittybilt Brand -Capacity Available - System Inadequate -Launched MRP System Q2 - Failed -Inventory/Productivity/Service Quality -Restored Control - Q4 2000 26 Slide 27 - STRATEGIC INITIATIVES - 2000 * Improve Key Success Factors * Launched Product Family Planning * Restructured Anoka * Turnaround Longmont * Relocate Suspension Division * Grow Smittybilt Brand * Eliminate Real Estate -Terminated Coldwater, MI Lease - 08/00 -Listed Anoka, MN Plant - 11/00 -Sold Indianola, IA Warehouse - 12/00 -Net Reduction - 385K Sq. Ft. 27 Slide 28 - FINAL RESULTS B(W) 2000 1999 ---- ---- NET SALES $177.3M ($17.7M) (10.0%) EBITDA $18.2M ($1.0M) (5.2%) 10.3% 0.5% STILL DISAPPOINTING 28 Slide 29 - MARKET OUTLOOK [BAR CHART] [No data supplied] 29 Slide 30 - LUND INTERNATIONAL STRATEGIC INITIATIVES CURRENT 30 Slide 31 - CURRENT INITIATIVES [LOGO] SMITTYBILT (R) CORONA TURNAROUND -New Leader - Q4 2000 -Strengthened Management Team -Genesis Program Launched * 3 Teams - 45 Projects * $3.8M Cost Reduction * $3.7M Inventory Reduction * Streamline Product Line 31 Slide 32 - CURRENT INITIATIVES [LOGO] LUND(R) TRUCK ACCESSORIES [LOGO] DEFLECTA-SHIELD(R) STYLING ACCESSORIES CORONA TURNAROUND ANOKA, MN CLOSING -Relocated to Lawrenceville, GA -Solid Project Plan * Recruiting Positive * Training Solid * Moved in 3 Waves -Expense Savings of $0.8M+ -Property Sale - Approx. $10.0M 32 Slide 33 - CURRENT INITIATIVES [LOGO] DEFLECTA-SHIELD(R) ALUMINUM PRODUCTS CORONA TURNAROUND ANOKA, MN CLOSING HOWE BREAKOUT PROGRAM -Marginal Financial Results -Focus on Efficiency/Expansion -Driving for Aftermarket Volume -Expanding OEM Sales Effort -Developing New Products 33 Slide 34 - CURRENT INITIATIVES CORONA TURNAROUND ANOKA, MN CLOSING HOWE BREAKOUT PROGRAM RESTRUCTURING SALES & MARKETING -Consolidates 70% of Volume -Centralized Professional Support -Sales Management by Channel -Expense Savings of $0.8M+ -Improved Focus 34 Slide 35 - CURRENT INITIATIVES CORONA TURNAROUND ANOKA, MN CLOSING HOWE BREAKOUT PROGRAM RESTRUCTURING SALES & MARKETING PRICE INCREASES -Retail Channel - First Increase - 5%+ -Warehouse/Catalogue Channel - 5%+ -OEM Channel - Flat -$6M Potential Impact -Competition Following 35 Slide 36 - CURRENT INITIATIVES CORONA TURNAROUND ANOKA, MN CLOSING HOWE BREAKOUT PROGRAM RESTRUCTURING SALES & MARKETING PRICE INCREASES COST REDUCTION PROGRAM -Company-wide Effort -Attacking Product Cost/Expense/Productivity -Target - $8.0M Annualized -Q1 Results - $2.4M Annualized 36 Slide 37 - CURRENT INITIATIVES CORONA TURNAROUND ANOKA, MN CLOSING HOWE BREAKOUT PROGRAM RESTRUCTURING SALES & MARKETING PRICE INCREASES COST REDUCTION PROGRAM ENERGIZE GROWTH PROGRAMS -Capacity/Market Share Available -Customer Service Improved -Reorganize Research & Development -Sales & Marketing Restructured -Product Outsourcing Strengthened -Timeliness to Market Improved 37 Slide 38 - SALES PROJECTIONS [PL0T POINTS CHART] TRAILING 182 188 191 195 197 194 187 178 170 166 168 172 SAAR 193 194 198 193 202 183 171 154 172 172 172 172 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1999 2000 2001 38 Slide 39 - OUTLOOK 2001 BETTER(WORSE) ------------- 2001 2000 ----------------------- Net Sales $172.7M ($4.7M) (2.7%) EBITDA $20.3M $2.1M 11.5% 11.7% 1.4% 39 Slide 40 - LUND INTERNATIONAL $225M SALES 16% + EBITDA [ARROW GRAPHIC] $172 M SALES 11 - 12% EBITDA 40 Slide 41 - LUND INTERNATIONAL KEY SUCCESS FACTORS $225M SALES 16% + EBITDA SERVICE RETURNS QUALITY SAFETY STYLING PRICING PRODUCT QUALITY PRODUCTIVITY [ARROW GRAPHIC] PRODUCT DSO OFFERING TURNOVER PROMOTION COST REDUCTION TIMELINESS DPO $172 M SALES 11 - 12% EBITDA OPERATIONAL EXCELLENCE [ARROW GRAPHIC] 41 Slide 42- LUND INTERNATIONAL KEY SUCCESS FACTORS $225M SALES 16% + EBITDA SERVICE RETURNS QUALITY SAFETY STYLING PRICING PRODUCT QUALITY PRODUCTIVITY [ARROW GRAPHIC] PRODUCT RESTRUCTURING SALES & MARKETING DSO OFFERING ADVANCING INTEGRATION FINANCIAL CONTROLS TURNOVER PROMOTION COST REDUCTION TIMELINESS DPO $172 M SALES 11 - 12% EBITDA OPERATIONAL EXCELLENCE [ARROW GRAPHIC] 42 Slide 43 - [LOGO] LUND INTERNATIONAL(TM) [PHOTO] TRUCK 43