C&D Technologies, Inc.
(NYSE: CHP)
Adams Harkness 25th Annual Summer Seminar
August 4, 2005
Jeffrey A. Graves, President and CEO
Stephen Markert, Vice President and CFO
Forward Looking Statements
These materials may contain forward-looking statements (within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934). Words such as “anticipates”, “expects”, “believes”
and similar expressions reflecting something other than historical fact are
intended to identify forward-looking statements, but are not the exclusive
means of identifying such statements. Factors that accompany forward-
looking statements, or appear in Securities and Exchange Commission filings
(including without limitation the Company’s annual report on Form 10-K for
the fiscal year ended January 31, 2005 or the quarterly and current reports
filed on Form 10-Q or 8-K thereafter), could cause the company’s actual
results to differ materially from those expressed in any forward-looking
statements made herein.
Jeff Graves - Overview
Joined C&D 7-5-05
Prior experience:
KEMET Corporation
General Electric Power Systems Division and Corporate Research & Development
Center
Rockwell International Corporation
Howmet Corporation
Core areas of expertise:
Customer focus and alignment
Development & commercialization of new products
Business process improvements and standardization
International operations
Initial Observations of C&D
With a renewed focus on execution, customer satisfaction, quality and
technology development, C&D can re-energize profitability.
Significant Opportunities:
99 year history
World-class customer base
Industry-leading technology
Powerful international manufacturing
platform
Great synergies between Standby
Power and Motive Power divisions
Robust R&D capabilities
Issues:
Reynosa plant transition – under-resourced
CPS Acquisition – integration challenges
underestimated
$2.2M charge in Q3 related to continued
integration activities for the Power
Electronics Division
Motive Power – recent history of poor
execution, but a real turnaround opportunity
Lead hedging – new hedging policy in place
as of 3/1/05.
Priorities
Return to profitable growth
Customer focus
alignment of assets and resources
Execution of fundamentals:
Quality, Delivery, Reynosa location
Technology leadership
Energy storage and electronics
Integration of recent acquisitions
Strategic sourcing (e.g., Lead) in Supply Chain Management
Divisional Review
Overview
Revenues by Division – FY 2005 $414.7M
Revenues by Market – FY 2005 $414.7M
Annual Revenues - $ Millions
C&D Technologies, Inc.
Standby Power Division at a Glance
FY 2005 Revenues: $245.8 million
59% of CHP total
Applications
Standby Batteries & Electronics
Wire line / Fiber
Wireless Cell Sites/Pager Sites
Wireless Broadband
Cable Head End
Power Generation
Uninterruptible Power Supplies
Strategic Initiatives
Drive value through technology leadership
Continue industry-leading R&D effort
Provide perfect quality
Expand sealed capacity in Reynosa - msEndur
Capacity as Battery Ages
msEndur
Typical VRLA
MSE
Greater than 20 yr
life
10 days = 1 yr
Motive Power Division at a Glance
FY 2005 Revenues: $57.4 million
14% of CHP total
Applications
Electric powered forklift trucks
Other material handling equipment
Automatic guided vehicles
Airline ground support vehicles
Q3 decision for strategic direction
On-time delivery
Reynosa location improvements
Provide perfect quality
Power Electronics Division at a Glance
FY 2005 Revenues: $111.5 million
27% of CHP total
Expected to be over 35% in current fiscal year
Products:
Eighth Bricks
Quarter Bricks
Half Bricks
SIPs
VRMs
Power Pods
AC/DC Front Ends
Strategic Initiatives
Leverage technology leadership
Complete integration of Celab, Datel, CPS
Focus on exceeding customer expectations
Power Electronics Acquisitions
Low to Medium
Power Products
Typically serves
Tier 2 and 3 OEM
DC/DC, AC/DC
and Magnetics
Well developed
channels to market
Medium
Power Products
Distribution
Strategy
DC/DC only
Entry into Data
Acquisition and
Panel Meters
High
Power Products
Access to Tier I
OEMs
DC/DC and
AC/DC
Engineering /
Technology
strength
Cross-selling opportunities
Potential manufacturing synergies (not included in financial
projection model)
Access to new geographic and end-user markets
Customized
Power Products
Military market
focus
Custom and build
to print power
Celab
C P S
Power Electronics: Building Blocks
One-Stop
Power
Electronics
Solution
Legacy PED Overview
DC/DC Converters
Less than 1 Watt to 150 Watts
Leader in package size including 1/8 brick at 50 watts
Very high efficiency / performance
AC/DC and DC/DC Power Supplies
Custom and standard products
50 Watts to 3000 Watts
Leader in Compact PCI packaging including IPMI
(remote monitoring by the customer)
Bulk Power (Rectifiers) - 7.5 to 150 Amps
Magnetics and Inductors
Panel Meters
Data Acquisition Products
Celab Overview
Acquired March 2004
UK Based – Enhances international presence
Revenues ~ $12 million
Highly profitable
Military electronics niche
Cable TV power product
Potential cross selling opportunities in North America
Datel Overview
Acquired June 2005
Revenues ~ $60 million
Strong mid-power DC/DC converter business
Long-established international presence
UK
France
Germany
Japan
Very large customer base
Two new product lines
Digital Panel Meters
Data Acquisition Components
CPS Overview
Acquired September 2005
Revenues ~ $90 million
Current revenues - ~ $60 million
High Power DC/DC Converters
AC/DC Power Supplies
Premier engineering / technology team
Access to Tier 1 OEMs
Integration challenges underestimated
PED Acquisition Benefits
Post-acquisitions, PED is a fully-integrated provider of power
electronics products
Diverse product line to meet broad range of customer
requirements
Technology development and product design leader
Multiple channels to market
Global manufacturing platform
Global R&D resources
Global sales presence
Flagship Customers (Direct sales, direct engineering)
- Standard and custom products
Broad Market (Representatives, distribution)
- Standard product only
Multiple Channels to Market
Manufacturing
PED Global Manufacturing Presence
Tucson, USA
106 Employees
Mansfield, USA
355 Employees
Milton Keynes, UK
89 Employees
Nogales, Mexico
204 Employees
Guangzhou, China
403 Employees
495,000ft2 of Manufacturing Facilities
1,235 Employees
Bordon, UK
78 Employees
Engineering
PED Global Engineering Presence
Tucson, USA
Mansfield, USA
Milton Keynes, UK
Guangzhou, China
8 Engineering Locations on 3 Continents -
82 Design Engineers
Shanghai, China
Oregon, USA
Toronto, Canada
Bordon, UK
Sales
PED Global Sales Presence
Portland, USA
Mansfield, USA
Milton Keynes, UK
Munich, Germany
12 Sales Locations
in 7 Countries on 3 Continents
Tadley, UK
Montigny Le
Bretonneux, France
Guangzhou, China
Tokyo, Japan
Osaka, Japan
Toronto, Canada
Tucson, USA
Bordon, UK
Q&A Session