©2016 Matthews International Corporation. All Rights Reserved.
INVESTOR PRESENTATION
3rd QUARTER FISCAL 2017
Exhibit 99.1
©2016 Matthews International Corporation. All Rights Reserved.
Business Overview
2
©2016 Matthews International Corporation. All Rights Reserved.
Disclaimer
Any forward-looking statements with respect to Matthews International Corporation (the “Company”) in connection with this presentation are being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to be materially
different from management’s expectations. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations
will prove correct. Factors that could cause the Company’s results to differ from those presented herein are set forth in the Company’s Annual Report on Form 10-K and other periodic filings with the Securities
and Exchange Commission (“SEC”).
The Company periodically provides information derived from financial data which is not presented in the consolidated financial statements prepared in accordance with U.S. generally accepted accounting
principles (“GAAP”). Certain of this information are considered “non-GAAP financial measures” under the SEC rules. The Company believes that this information provides management and investors with a
useful measure of the Company’s financial performance on a comparable basis. These non-GAAP financial measures are supplemental to the Company’s GAAP disclosures and should not be considered an
alternative to the GAAP financial information.
The Company uses non-GAAP financial measures to assist in comparing its performance on a consistent basis for purposes of business decision making by removing the impact of certain items that
management believes do not directly reflect the Company’s core operations including acquisition-related items, system-integration costs, adjustments related to intangible assets, litigation items, and strategic
initiative and other charges, which includes non-recurring charges related to operational initiatives and exit activities. Management believes that presenting non-GAAP financial measures is useful to investors
because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that
management uses to budget, forecast, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in
evaluating the Company’s results. The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the
reconciliations to those measures, provided herein, provides investors with an additional understanding of the factors and trends affecting the Company’s business that could not be obtained absent these
disclosures.
The Company has presented free cash flow, adjusted free cash flow, free cash flow yield and adjusted free cash flow yield as supplemental measures of cash flow that are not required by, or presented in
accordance with, GAAP. Management believes that these measures provide relevant and useful information, which is widely used by analysts and investors as well as by our management. These measures
provide management with insight on the cash generated by operations, excluding certain expenses, above and beyond the annual capital expenditures. These measures allows management, as well as analysts
and investors, to assess the Company’s ability to pursue growth and investment opportunities designed to increase Shareholder value.
The Company also has presented adjusted operating profit and believes that it provides relevant and useful information, which is widely used by analysts and investors, as well as by the Company’s
management in assessing both consolidated and segment performance. Adjusted operating profit provides the Company with an understanding of the results from the primary operations of its business by
excluding the effects of certain acquisition and system-integration costs, and items that do not reflect the ordinary earnings of the Company’s operations. This measure may be useful to an investor in evaluating
the underlying primary operating performance of the Company’s segments and business overall on a consistent basis.
Similarly, the Company believes that EBITDA and adjusted EBITDA provide relevant and useful information, which is widely used by analysts and investors, as well as by the Company’s management in
assessing the performance of its business. Adjusted EBITDA provides the Company with an understanding of earnings before the impact of investing and financing charges and income taxes, and the effects of
certain acquisition and system-integration costs, and items that do not reflect the ordinary earnings of the Company’s operations. This measure may be useful to an investor in evaluating operating performance.
It is also useful as a financial measure for lenders and is used by the Company’s management to measure performance as well as strategic planning and forecasting.
The Company has also presented adjusted earnings per share and believes it provides relevant and useful information, which is widely used by analysts and investors, as well as by the Company’s
management in assessing the performance of its business. Adjusted earnings per share provides the Company with an understanding of the results from the primary operations of our business by excluding the
per share effects of certain acquisition and system-integration costs, and items that do not reflect the ordinary earnings of our operations. This measure provides management with insight into the earning value
for shareholders excluding certain costs, not related to the Company’s primary operations. Likewise, this measure may be useful to an investor in evaluating the underlying operating performance of the
Company’s business overall, as well as performance trends, on a consistent basis.
Lastly, the Company has presented adjusted net income and believes it provides relevant and useful information, which is widely used by analysts and investors, as well as by the Company’s management in
assessing financial performance. Adjusted net income provides the Company with an understanding of the results from the primary operations of its business by excluding the effects of certain acquisition and
system-integration costs, and items that do not reflect the ordinary earnings of the Company’s operations. This measure may be useful to an investor in evaluating the underlying performance of the business.
3
©2016 Matthews International Corporation. All Rights Reserved.
Matthews
Founded in 1850 – headquartered in Pittsburgh, PA
Three business segments:
SGK Brand Solutions
Memorialization
Industrial Technologies
Approximately 11,000 employees
Over 25 countries
NASDAQ – 32.2 million shares outstanding, as of June 30, 2017
4
©2016 Matthews International Corporation. All Rights Reserved.
51%
8%
41%
Memorialization
SGK Brand Solutions
Industrial Technologies
5
Fiscal 2017 YTD Sales
©2016 Matthews International Corporation. All Rights Reserved.
SGK BRAND SOLUTIONS
6
©2016 Matthews International Corporation. All Rights Reserved.
SGK Brand Solutions
7
Brand
Development
Brand
Deployment
Create
Brand
Performance
Improved top-
line growth
Activate Improved
bottom-line
performance
= + Premedia
Tooling
Merchandising
Delivering Brand Performance
©2016 Matthews International Corporation. All Rights Reserved.
SGK Brand Solutions
8
The full U.K. packaging portfolio for Kit Kat was redesigned by
Anthem, a global creative agency that is part of the brand
development business of the SGK Brand Solutions segment.
The SGK Brand Solutions segment produces
gravure printing and embossing tools used in
the packaging, wallpaper and tobacco
industries.
iDL Worldwide, a brand services firm within the SGK
Brand Solutions segment, brought Sunglass Hut’s “Punk-
It-Up!” campaign to life with this pop-up experience in
New York City.
©2016 Matthews International Corporation. All Rights Reserved.
MEMORIALIZATION
9
©2016 Matthews International Corporation. All Rights Reserved. 10
Building signs are
an example of the
segment’s
architectural
product offerings.
Memorialization
Matthews is well known for
its heritage of creating
beautiful, time-tested
bronze memorials.
The segment designs unique
glass-front niches to meet the
growing demand for cremation
memorialization.
©2016 Matthews International Corporation. All Rights Reserved. 11
Memorialization
The Company is a leading manufacturer and distributor of caskets
(wood, metal and cremation) in North America.
The Super Power Pak III Plus cremation unit has some of the most
advanced features in combustion technology as well as industry
leading performance, reliability and support.
©2016 Matthews International Corporation. All Rights Reserved. 12
Memorialization
Casketed Deaths vs. Total Deaths
Company estimates. Data compiled from CDC, US Census Bureau, Industry reports and internal projections.
©2016 Matthews International Corporation. All Rights Reserved.
INDUSTRIAL TECHNOLOGIES
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©2016 Matthews International Corporation. All Rights Reserved. 14
Industrial Technologies
Non-contact ink-jet printing units apply print on products.
Driven by sophisticated automation software and controls,
multiple integrated distribution and fulfillment systems (including
laser-based identification and dimensioning technologies)
communicate in a warehouse to identify and route items and
parcels through the facility and out to a customer.
Pick-to-Light systems use light indicators
for sorting and control of merchandise.
©2016 Matthews International Corporation. All Rights Reserved.
Financial Overview
15
©2016 Matthews International Corporation. All Rights Reserved.
Key Elements of Long-Term EPS Growth
Internal Growth
Expand market presence of existing products
Manufacturing/cost structure improvements
New product development
Acquisitions
Primary objective to support strategic business plans
Achieve long-term annual return (EBITDA) of 15% on invested
capital
Share Repurchases
Repurchase in periods of excess cash flow
Current remaining authorization – 1.9 million shares
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©2016 Matthews International Corporation. All Rights Reserved.
Consolidated Results
17
2014 2015 2016 2016 2017
(unaudited) (unaudited)
Sales 1,106,597$ 1,426,068$ 1,480,464$ 1,103,469$ 1,119,544$
Operating Profit 81,522$ 105,023$ 118,815$ 79,143$ 82,677$
Adj. Operating Profit (a) 120,120$ 141,906$ 154,872$ 106,065$ 108,336$
EBITDA (b) 120,921$ 173,043$ 185,646$ 129,600$ 142,605$
Adj. EBITDA (c) 172,071$ 215,974$ 239,586$ 170,064$ 174,580$
EPS - GAAP 1.49$ 1.91$ 2.03$ 1.30$ 1.64$
Adj. EPS (d) 2.74$ 3.03$ 3.38$ 2.31$ 2.50$
(Dollars in thousands,
except per share data)
Fiscal year ended September 30, YTD June 30,
(a) Adjusted operating profit reflects certain adjustments to facilitate comparability. See reconciliation at Appendix A.
(b) EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. See reconciliation at
Appendix B.
(c) Adjusted EBITDA represents EBITDA plus stock compensation expense and the non-service cost portion of
pension/post-retirement expense, and also reflects certain adjustments to facilitate comparability. See reconciliation at
Appendix B.
(d) Adjusted earnings per share reflects certain adjustments to facilitate comparability and excludes intangible amortization
and the non-service cost portion of pension/post-retirement expense. See reconciliation at Appendix C.
©2016 Matthews International Corporation. All Rights Reserved.
Segment Results – Sales
18
(Dollars in thousands)
2014 2015 2016 2016 2017
Sales: (unaudited) (unaudited)
SGK Brand Solutions 497,328$ 798,339$ 755,975$ 562,308$ 566,527$
Memorialization 508,420 508,058 610,142 457,802 463,567
Industrial Technologies 100,849 119,671 114,347 83,359 89,450
Consolidated 1,106,597$ 1,426,068$ 1,480,464$ 1,103,469$ 1,119,544$
Fiscal year ended September 30, YTD June 30,
©2016 Matthews International Corporation. All Rights Reserved.
Segment Results – Operating Profit
19
(Dollars in thousands)
2014 2015 2016 2016 2017
Operating Profit: (unaudited) (unaudited)
SGK Brand Solutions 2,536$ 21,864$ 42,909$ 26,108$ 19,941$
Memorialization 67,937 70,064 68,252 48,059 60,759
Industrial Technologies 11,049 13,095 7,654 4,976 1,977
Consolidated 81,522$ 105,023$ 118,815$ 79,143$ 82,677$
Adjusted Operating Profit:*
SGK Brand Solutions 33,932$ 61,327$ 67,901$ 44,788$ 37,836$
Memorialization 74,919 67,484 78,685 56,072 67,770
Industrial Technologies 11,269 13,095 8,286 5,205 2,730
Consolidated 120,120$ 141,906$ 154,872$ 106,065$ 108,336$
Fiscal year ended September 30, YTD June 30,
* Adjusted operating profit reflects certain adjustments to facilitate comparability. See reconciliation at Appendix A.
.
©2016 Matthews International Corporation. All Rights Reserved.
Adjusted Free Cash Flow
20
(Dollars in thousands)
2014 2015 2016
Net Income 42,625$ 63,449$ 66,749$
Depreciation and Amortization 42,864 62,620 65,480
Stock-Based Compensation 6,812 9,097 10,612
Pension Cost (non-service portion) 4,020 5,677 8,413
Subtotal 96,321 140,843 151,254
Capital Expenditures (29,237) (48,251) (41,682)
Free Cash Flow
(2)
67,084 92,592 109,572
Adjustments to Net Income
(1)
27,416 20,481 23,742
Adjusted Free Cash Flow
(2)
94,500$ 113,073$ 133,314$
Cash Provided from Operating Activities 90,679$ 141,064$ 140,274$
Fiscal year ended September 30,
(1) Adjusted net income reflects certain adjustments, net of tax, to facilitate comparability. See reconciliation at Appendix D.
(2) See Disclaimer (Page 3) for Management’s assessment of supplemental information related to free cash flow and
adjusted free cash flow.
©2016 Matthews International Corporation. All Rights Reserved.
Free Cash Flow Yield
21
2014 2015 2016
Free Cash Flow (1) 67,084$ 92,592$ 109,572$
Adjusted Free Cash Flow (1) 94,500 113,073 133,314
Market Capitalization 1,443,097$ 1,609,892$ 1,952,929
Free Cash Flow Yield (1) 4.65% 5.75% 5.61%
Adjusted Free Cash Flow Yield (1) 6.55% 7.02% 6.83%
Fiscal year ended September 30,(Dollars in thousands)
(1) See Disclaimer (Page 3) for Management’s assessment of supplemental information related to free cash flow, adjusted
free cash flow, free cash flow yield and adjusted free cash flow yield.
©2016 Matthews International Corporation. All Rights Reserved.
Earnings Per Share
22
Note: Adjusted earnings per share reflects certain adjustments to facilitate comparability and other adjustments. See reconciliation at Appendix C.
Earnings Per Share Adjusted Earnings Per Share
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
2012 2013 2014 2015 2016
$1.95 $1.95
$1.49
$1.91
$2.03
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
2012 2013 2014 2015 2016
$2.43 $2.59
$2.74
$3.03
$3.38
©2016 Matthews International Corporation. All Rights Reserved.
EBITDA
(Dollars in millions)
23
Note: EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. See reconciliation at Appendix B. Adjusted
EBITDA represents EBITDA plus certain expenses, and also reflects certain adjustments to facilitate comparability. See reconciliation at Appendix B.
EBITDA Adjusted EBITDA
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
2012 2013 2014 2015 2016
$123.9
$131.1
$120.9
$173.0
$185.6
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
2012 2013 2014 2015 2016
$143.4
$160.6
$172.1
$216.0
$239.6
©2016 Matthews International Corporation. All Rights Reserved.
Common Stock Price
24
Note: Stock price obtained from NASDAQ for each respective month-end period.
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
9/30/2007 9/30/2008 9/30/2009 9/30/2010 9/30/2011 9/30/2012 9/30/2013 9/30/2014 9/30/2015 9/30/2016
$43.80
$50.74
$35.18 $35.36
$30.73
$29.82
$38.08
$43.89
$48.97
$60.76
©2016 Matthews International Corporation. All Rights Reserved.
Recent Highlights
Reported record sales of $1.48 billion in fiscal 2016
2016 GAAP EPS of $2.03; Adjusted EPS of $3.38, an increase of 11.6% and a
new record for the Company
Completed 5 acquisitions during the first six months of Fiscal 2017
Increased quarterly dividend 13.3% to 17.0 cents (November 2016)
22nd consecutive annual dividend increase since the Company’s IPO
Reported operating cash flow of $140.3 million in fiscal 2016
Sales of $462.3 million (31% of total) generated outside the U.S. in fiscal 2016
SGK and Aurora acquisition integrations remain on track
Analyst coverage:
CJS Securities (D. Moore)
FBR Capital Markets (L. Burke)
Great Lakes Review (E. Schlang)
Macquarie Securities Group (J. Clement)
25
©2016 Matthews International Corporation. All Rights Reserved.
Institutional Shareholders
26
Shares
3/31/2017
BlackRock Institutional Trust Company, N.A. 3,574,885
The Vanguard Group, Inc. 3,081,037
Franklin Advisory Services, LLC 2,953,919
Wellington Management Company, LLP 1,376,970
Dimensional Fund Advisors, L.P. 1,256,102
Clarkston Capital Partners, LLC 1,071,916
T. Rowe Price Associates, Inc. 1,035,518
Channing Capital Management, LLC 767,663
State Street Global Advisors (US) 753,709
Emerald Advisers, Inc. 549,550
Top Ten Institutions 16,421,269 51% of outstanding shares
Remaining Institutions 9,386,115
Total Institutional Ownership 25,807,384 80% of outstanding shares
Note: Institutional share information obtained from NASDAQ as of March 31, 2017.
©2016 Matthews International Corporation. All Rights Reserved.
Appendices
27
©2016 Matthews International Corporation. All Rights Reserved.
Adjusted Operating Profit
Non-GAAP Reconciliation
28
Appendix A
(Dollars in thousands)
2014 2015 2016 2016 2017
SGK Brand Solutions
Operating Profit 2,536$ 21,864$ 42,909$ 26,108$ 19,941$
Acquisition-related items 28,214 33,605 24,872 18,680 17,895
Intangible asset w rite-offs - 4,842 - - -
Strategic initiative and other charges (1) 3,182 1,016 120 - -
Adjusted Operating Profit 33,932$ 61,327$ 67,901$ 44,788$ 37,836$
Memorialization
Operating Profit 67,937$ 70,064$ 68,252$ 48,059$ 60,759$
Acquisition-related items 448 5,260 11,022 8,483 7,011
Litigation matter 3,027 (8,996) - - -
Strategic initiative and other charges (1) 3,507 1,156 (589) (470) -
Adjusted Operating Profit 74,919$ 67,484$ 78,685$ 56,072$ 67,770$
Industrial Technologies
Operating Profit 11,049$ 13,095$ 7,654$ 4,976$ 1,977$
Acquisition-related items - - - 229 753
Strategic initiative and other charges (1) 220 - 632 - -
Adjusted Operating Profit 11,269$ 13,095$ 8,286$ 5,205$ 2,730$
Consolidated
Operating Profit 81,522$ 105,023$ 118,815$ 79,143$ 82,677$
Acquisition-related items 28,662 38,865 35,894 27,392 25,659
Intangible asset w rite-offs - 4,842 - - -
Litigation matter 3,027 (8,996) - - -
Strategic initiative and other charges (1) 6,909 2,172 163 (470) -
Adjusted Operating Profit 120,120$ 141,906$ 154,872$ 106,065$ 108,336$
Fiscal year ended September 30, YTD June 30,
Note: See Disclaimer (Page 3) for Management’s assessment of supplemental information related to adjusted operating profit.
(1) – See Disclosure (Page 3).
©2016 Matthews International Corporation. All Rights Reserved.
EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation
29
Appendix B
(Dollars in thousands)
2014 2015 2016 2016 2017
Net Income 42,625$ 63,449$ 66,749$ 42,886$ 53,493$
Interest expense 12,628 20,610 24,344 18,146 19,750
Income taxes 22,805 26,364 29,073 19,290 18,552
Depreciation and Amortization 42,864 62,620 65,480 49,278 50,810
EBITDA 120,921$ 173,043$ 185,646$ 129,600$ 142,605$
Acquisition-related items 28,662 38,865 34,674 26,687 22,897
Intangible asset w rite-offs 4,842 - - -
Litigation matter 3,027 (8,996) - - -
Strategic initiative and other charges
(1)
8,629 4,968 241 - -
Loss recoveries, net of costs, and other - - - (391) (9,358)
Pension settlement - (11,522) - - -
Stock-based compensation 6,812 9,097 10,612 7,940 11,854
Pension and postretirement expense
(2)
4,020 5,677 8,413 6,228 6,582
Adjusted EBITDA 172,071$ 215,974$ 239,586$ 170,064$ 174,580$
Fiscal year ended September 30,
Note: See Disclaimer (Page 3) for Management’s assessment of supplemental information related to EBITDA and adjusted EBITDA.
(1) See Disclosure (Page 3).
(2) The non-GAAP adjustment to pension and postretirement expense represents the add-back of the non-service related components of these costs. Non-service related
components include interest cost, expected return on plan assets and amortization of actuarial gains and losses. The service cost and prior service cost components of
pension and postretirement expense are considered to be a better reflection of the ongoing service-related costs of providing these benefits. The other components of GAAP
pension and postretirement expense are primarily influenced by general market conditions impacting investment returns and interest (discount) rates. Please note that GAAP
pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit
plans. On September 30, 2016, the Company changed the method used to estimate the service and interest components of net periodic benefit costs for its pension plans. The
impact of this change was not material for the quarter or year-to-date periods.
YTD June 30,
©2016 Matthews International Corporation. All Rights Reserved.
Adjusted Earnings Per Share
Non-GAAP Reconciliation
30
Appendix C
2014 2015 2016 2016 2017
EPS - GAAP 1.49$ 1.91$ 2.03$ 1.30$ 1.64$
Acquisition-related items 0.71 0.79 0.74 0.57 0.56
Intangible asset w rite-offs 0.10 - - -
Litigation matter 0.07 (0.18) - - -
Strategic initiative and other charges
(1)
0.22 0.14 0.01 - -
Loss recoveries, net of costs, and other - - - (0.01) (0.20)
Pension settlement - (0.24) - - -
Pension and postretirement expense
(2)
0.09 0.12 0.17 0.13 0.14
Intangible amortization expense 0.16 0.39 0.43 0.32 0.36
Adjusted EPS 2.74$ 3.03$ 3.38$ 2.31$ 2.50$
Fiscal year ended September 30, YTD June 30,
Note: See Disclaimer (Page 3) for Management’s assessment of supplemental information related to adjusted earnings per share. All per-share amounts are net of tax.
(1) See Disclosure (Page 3).
(2) The non-GAAP adjustment to pension and postretirement expense represents the add-back of the non-service related components of these costs. Non-service
related components include interest cost, expected return on plan assets and amortization of actuarial gains and losses. The service cost and prior service cost
components of pension and postretirement expense are considered to be a better reflection of the ongoing service-related costs of providing these benefits. The other
components of GAAP pension and postretirement expense are primarily influenced by general market conditions impacting investment returns and interest (discount)
rates. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow
requirements related to these employee benefit plans. On September 30, 2016, the Company changed the method used to estimate the service and interest components
of net periodic benefit costs for its pension plans. The impact of this change was not material for the quarter or year-to-date periods.
©2016 Matthews International Corporation. All Rights Reserved.
Adjusted Net Income
Non-GAAP Reconciliation
31
Appendix D
(Dollars in thousands)
Pretax After Tax Pretax After Tax Pretax After Tax
Net Income 66,076$ 42,625$ 89,652$ 63,449$ 95,234$ 66,749$
Acquisition-related items 28,662 19,490 38,865 26,428 34,674 23,578
Intangible asset w rite-offs - - 4,842 3,293 - -
Litigation matter 3,027 2,058 (8,996) (6,117) - -
Strategic initiative and other charges
(1)
8,629 5,868 4,968 3,378 241 164
Pension settlement - - (11,522) (7,835) - -
Tax related - 1,334 -
Adjusted Net Income 70,041$ 83,930$ 90,491$
2016
Fiscal year ended September 30,
(1) See Disclosure (Page 3).
20152014
Note: See Disclaimer (Page 3) for Management’s assessment of supplemental information related to adjusted net income. Adjusted
net income reflects non-GAAP adjustments at an effective tax rate of approximately 32.0%.