Slide 1: Q1 2022 Results
Q1 2022 Results May 5, 2022
Slide 2: Forward-Looking Statements
2 Forward - Looking Statements Statements in this presentation that are not historical facts are forward - looking statements, which involve risks and uncertaint ies that could cause actual events or results to differ materially from those expressed or implied by the statements. Important factors th
Slide 3: Overview of Achievements
3 Overview of Achievements x Strong 1 st quarter performance driven by pricing actions and supply chain strategies to offset incremental material costs (offset ~90% of incremental material costs in Q1 vs. Q4 2021) x Maintaining full - year 2022 revenue and adjusted EPS guidance - increasing adjusted
Slide 4: First quarter sales and margin drivers
4 ▸ First quarter sales favorably impacted by pricing actions to offset incremental supply chain related costs, continued ramp - up of recently launched programs and strong sales in the off - highway end - market vs. Q4 2021 ▸ Q1 sales favorably impacted by pricing actions of ~$6.0 million (includes
Slide 5: Supply Chain Update
5 Supply Chain Update Pricing Actions / Supply Chain Strategy ▸ Significant progress in negotiations with customers and suppliers to offset incremental material costs and stabilize margin profile going - forward ▸ Continue to pass - through spot buy costs to customers as appropriate (offset ~$24M in
Slide 6: MirrorEye Update
6 MirrorEye Update Market awareness driving continued strong OEM take - rate and expanding retrofit applications with some of the largest fleets in North America OEM Update ▸ First OEM MirrorEye program in Europe continues to ramp up ▸ Estimated take rate of at least 35% (vs. 16% quoted take rate) b
Slide 7: Summary
7 Summary Summary x Strong first quarter financial performance driven by pricing actions and supply chain strategies to offset significant portion of incremental material costs x Continued strong customer forecasted take - rates for first OEM program in Europe x Continued expansion of MirrorEye retr
Slide 8: Financial Update
Financial Update $Siereiese
Slide 9: 1st Quarter 2022 Financial Summary
9 1 st Quarter 2022 Financial Summary 1 st Quarter 2022 Financial Results Adjusted sales of $196.6 million, an increase of 7.5% over Q4 2021* • Control Devices sales of $85.0 million, an increase of 6.4% over Q4 2021* • Electronics adjusted sales of $108.3 million, an increase of 12.2% over Q4 2021
Slide 10: Control Devices Financial Performance
10 Control Devices Financial Performance Strong Q1 execution expected to continue for remainder of 2022 – pricing actions expected to drive more stable margin performance. Expecting continued production volatility with improvement in the second half Control Devices 2022 Expectations ▸ Continue to dr
Slide 11: Electronics Financial Performance
11 Q4 2021 vs. Q1 2022 Adjusted Sales Operating Loss Electronics Financial Performance Focused on margin expansion based on pricing actions and efficient engineering spend. Continued momentum with MirrorEye OEM program launches and retrofit expansions. Electronics 2022 Expectations ▸ Strong revenue
Slide 12: Stoneridge Brazil Financial Performance
12 Q4 2021 vs. Q1 2022 Sales Adjusted Operating Income Stoneridge Brazil Financial Performance Expecting stable revenue and margin performance despite continued macroeconomic challenges Stoneridge Brazil 2022 Expectations Revenue and operating margin expected to remain approximately flat in 2022 Con
Slide 13: Updated 2022 Adjusted EPS Guidance
13 Updated 2022 Adjusted EPS Guidance 2022 Guidance Previously Provided Drivers of Updated 2022 Adjusted EPS Guidance ($0.15) – $0.10 ($0.15) – $0.10 2022 Guidance Updated Maintaining adjusted EPS guidance due to improved margin performance approximately offset by expected incremental tax expense Ma
Slide 14: Summary
14 Summary 2022 Q1 Summary ▸ Control Devices – Strong sales and operating performance in Q1 primarily due to improved customer production schedules and our ability to offset incremental supply chain costs with pricing actions ▸ Electronics – Continued strong sales growth during the quarter. Improved
Slide 15: Appendix
Appendix $Siereiese
Slide 16: Income Statement
16 Income Statement CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share data) Net sales $ 221,058 $ 193,795 Costs and expenses: Cost of goods sold 179,615 147,709 Selling, general and administrative 27,399 29,376 Design and development 17,028 14,651 Operating
Slide 17: Balance Sheet
17 Balance Sheet CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 41,388 $ 85,547 Accounts receivable, less reserves of $1,258 and $1,443, respectively 155,994 150,388 Inventories, net 148,352 138,115 Prepaid expenses and other curre
Slide 18: Statement of Cash Flows
18 Statement of Cash Flows CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three months ended March 31, (in thousands) OPERATING ACTIVITIES: Net (loss) income $ (7,675) $ 130 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation 6,877 7
Slide 19: Statement of Cash Flows (Cont.)
19 Statement of Cash Flows (Cont.) INVESTING ACTIVITIES: Capital expenditures, including intangibles (7,368) (7,718) Proceeds from sale of fixed assets 132 155 Proceeds from disposal of business, net - 1,050 Investment in venture capital fund, net - (399) Net cash used for investing activities (7,23
Slide 20: Segment Financial Information
20 Segment Financial Information (A) Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology an d legal costs as well as share - based compensation (B) These amounts represent depreciation and amortization on property, plant and equipmen
Slide 21: 21 Reconciliations to US GAAP
21 Reconciliations to US GAAP
Slide 22: Non-GAAP financial measures notice
22 Reconciliations to US GAAP This document contains information about Stoneridge's financial results which is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non - GAAP financial measures are reconciled to their closest GAAP financial me
Slide 23: Reconciliation of Adjusted EPS
23 Reconciliations to US GAAP Reconciliation of Q4 2021 Adjusted EPS (USD in millions) Q4 2021 Q4 2021 EPS Net Income (6.2)$ (0.23)$ Add: Post-Tax Change in Fair Value of Earn-Out (Stoneridge Brazil) 0.6 0.02 Less: Post-Tax TSA and Monetary Correction (Stoneridge Brazil) (1.9) (0.07) Add: Post-Tax L
Slide 24: Reconciliation of Adjusted Operating Income (Loss)
24 Reconciliations to US GAAP Reconciliation of Adjusted Operating Income (Loss) (USD in millions) Q4 2021 Q1 2022 Operating Income (Loss) (4.4)$ (3.0)$ Add: Pre-Tax Change in Fair Value of Earn-Out (Stoneridge Brazil) 0.6 - Less: Pre-Tax TSA and Monetary Correction (Stoneridge Brazil) (1.1) - Less:
Slide 25: Reconciliation of Adjusted EBITDA
25 Reconciliations to US GAAP Reconciliation of Adjusted EBITDA (USD in millions) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Income (Loss) Before Tax 0.5$ 25.6$ (9.8)$ (3.9)$ (6.2)$ Interest expense, net 1.8 1.9 1.4 0.1 1.8 Depreciation and amortization 8.4 8.5 8.2 8.7 8.7 EBITDA 10.8$ 36.0$ (0.2)$ 5.0
Slide 26: Reconciliation of Adjusted Tax Rate
26 Reconciliations to US GAAP (USD in millions) Q1 2022 Income (Loss) Before Tax (6.2)$ Add: Pre-Tax Write-off of Deferred Financing Fees 0.4 Adjusted Income (Loss) Before Tax (5.8)$ Income Tax Expense (Benefit) 1.5$ Add: Tax Impact from Pre-Tax Adjustments 0.1$ Adjusted Income Tax Expense (Benefit)
Slide 27: Reconciliation of Segment Adjusted Operating Income
27 Reconciliations to US GAAP Reconciliation of Control Devices Adjusted Operating Income (USD in millions) Q4 2021 Q1 2022 Control Devices Operating Income 4.8$ 6.8$ Add: Pre-Tax Restructuring Costs 0.1 - Less: Pre-Tax Gain from Disposal of Soot Sensor Business (0.4) - Less: Pre-Tax Sale of Soot Se
Slide 28: Reconciliation of Adjusted Sales Excluding Disposed Soot Sensor Business
28 Reconciliations to US GAAP Reconciliation of Adjusted Sales Excluding Disposed Soot Sensor Business (USD in millions) Q4 2021 Q1 2022 Adjusted Sales 184.7$ 196.6$ Less: Pre-Tax Sales from Disposed Soot Sensor Business (1.8) - Adjusted Sales Excluding Disposed Soot Sensor Business 182.9$ 196.6$ Re
Slide 29: Reconciliation of Adjusted EBITDA Excluding Disposed Soot Sensor Business
29 Reconciliations to US GAAP Reconciliation of Adjusted EBITDA Excluding Disposed Soot Sensor Business (USD in millions) Q4 2021 Q1 2022 Adjusted EBITDA 2.4$ 4.3$ Less: Pre-Tax Operating Income from Disposed Soot Sensor Business (0.5) - Adjusted EBITDA Excluding Disposed Soot Sensor Business 1.9$ 4
Slide 30: Reconciliation of Control Devices Adjusted Sales
30 Reconciliations to US GAAP Reconciliation of Control Devices Adjusted Sales (USD in millions) Q4 2021 Q1 2022 Control Devices Sales 82.9$ 85.0$ Less: Pre-Tax Sale of Soot Sensor Product Inventory (1.3) - Control Devices Adjusted Sales 81.6$ 85.0$ Reconciliation of Control Devices Adjusted Sales E
Slide 31: Reconciliation of Electronics Adjusted Sales
31 Reconciliations to US GAAP Reconciliation of Electronics Adjusted Sales (USD in millions) Q4 2021 Q1 2022 Electronics Sales 114.1$ 132.7$ Less: Pre-Tax Sales from Spot Purchase Recovery (17.6) (24.4) Electronics Adjusted Sales 96.5$ 108.3$