Stoneridge, Inc. · NYSE:SRI
Stoneridge — Q2 2021 Earnings Presentation
35 slides from Stoneridge's earnings presentation, Aug 4, 2021
Slide 1: Stoneridge, August 5, 2021
ZZ Exhibit 99.2 Stoneridge August 5, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Siereitoe Statements in this presentation that are not historical facts are forward-looking statements, which involve risks and uncertainties that could Cause actual events or results to differ materially from those expressed or implied by the statements. Important factors
Slide 3: Q2 Summary
Q2 Summary $Serreee < heac Incremental supply ct is relative to prior expectations (Adjusted EPS impact of $0.07 in Q2) Unusual geographic composition of earnings / expenses due to market volatility resulted in increased tax expenses (Adjusted EPS impact of $0.06 in Q2) — expecting return to normali
Slide 4: Financial Summary
Financial Summary SI svevvee ——— Q1 2021 vs. Q2 2021" Q2 Financial Highlights* Q2 2021 adjusted sales inline with Q1, driven by supply $1308 Adjusted $1990 chain disruption related shut-downs at manufacturing Sales* facilities primarily in the passenger vehicle end-markets offset by continued strong
Slide 5: Q2 2021 Performance Drivers
Q2 2021 Performance Drivers $Serreee External Performance Drivers i 1» Supply chain related issues, including incremental material and logistics costs 1 i 1 | > Effective tax rate increased due to unusual jurisdictional mix of earnings and t Product Mix Incremental ‘TaxRate I expenses | ~6002 Supply
Slide 6: Supply Chain Update
Supply Chain Update Favreriase ‘Supply Chain Challenges Actual and Expected Of impact Prior Outlook, Estimated Range 329 920 + Offset approximately $2 million of incremental supply chain related costs in G2 + Material shortages and related global OEM production volatility, as well as commodity price
Slide 7: 2021 Updated Volume Outlook
Prior Outlook Z 2021 Updated Volume Outlook — $Serreee issenger Car Forecast (mitions of Units) North America Europe China 40.0% of 2020 Sales 4.6% of 2020 Sales 7.9% of 2020 Sales 20 25 30 20 8 6 6 20 10 ie 18 - 10 8 5 ° ° ° (022021 03 2021 04 2021 2021 2022 022021 03 202104 2021 2021 2022 ©22021 3
Slide 8: MirrorEye Update
MirrorEye Update » Additional MirrorEye end-markets gaining traction + Agreement with major European bus manufacturer to supply MirrorEye — began taking orders in Q2 + Over 1,500 MirrorEye units installed on buses in Europe — expected to increase to ~2,000 by the end of the year » Continued fleet ex
Slide 9: Electronics Program Launches and New Business Wins
Electronics Program Launches and New Business Wins Programs launching focused on vehicle intelligence and safety and enhancing driver capabilities Launched PACCAR digital instrument cluster in Q2 2021 ~$40 million estimated peak annual revenue + The largest digital display in it’s class Enables syst
Slide 10: Control Devices Program Launches and New Business Wins
Control Devices Program Launches and New Business Wins Siereitoe > Programs launching aligned with electrified platforms * Previously awarded and announced several “Park-by-Wire” Awards focused on electtified transmission applications + Ford Mach-E program — Launched September 2020 + Ford E-Transit
Slide 11: Summary
Summary Seereivee Summary Challenging second quarter financial performance primarily due to incremental external costs related to global supply chain disruptions, inefficiencies from market volatility and a resulting increase in our effective tax rate Working to offset material price increases (comp
Slide 12: Financial Update
Financial Update Sseveee
Slide 13: 2nd Quarter 2021 Financial Summary
2"4 Quarter 2021 Financial Summary $Serreee > Excluding divested product lines, sales of $189.0 million, a decrease of 0.4% over Q1 2021 adjusted sales + Excluding divested product lines, Control Devices sales of $84.4 million, a decrease of 13.5% over Q1 2021 adjusted sales + Electronics sales of $
Slide 14: 2021 Adjusted EPS Guidance
2021 Adjusted EPS Guidance SI svevvee Drivers of 2021 Adjusted EPS Guidance —g ese 1 1 1 Incremental Supply ‘Tax Rate’ Other Net Performance | Reduced 1 1 1 1 Incremental 0.20 - $0.30 Chain Related Costs" -750.08)-($0.12)__Drivers Incurred in @2 SOBA pap bas egaee ony) apo (Reduced SOSA expectedto a
Slide 15: Control Devices
Control Devices Serves Financial Performance $'8in USO Miions Q1 2021 vs. Q2 Control Devices Q2 Summary » Lower sales vs. Q1 2021 adjusted sales, excluding $076 divested soot sensor business, primarily due to OEM. - rr production shutdowns as a result of supply chain Adjusted . disruptions alee * Q2
Slide 16: Electronics
Electronics Serves Financial Performance $'sin USO Malons Electronics Q2 Summary » Sales growth of 9.7% vs. Qt 2021 primarily due to higher sales in the commercial vehicle OEM and off-highway vehicle end-markets Sales $987 » Adjusted operating margin declined versus Q1 2021 due to incremental costs
Slide 17: Stoneridge Brazil
Stoneridge Brazil SI svevvee Financial Performance $'3in USO Mitons Q1 2021 vs. Q2 Stoneridge Brazil Q2 Summary » Excluding the favorable impact of currency exchange rates up of $0.5 million, sales increased 26.3% relative to Q1 2021 sua Gales » Adjusted operating margin increased vs. Q1 2021 primar
Slide 18: Net Debt Update
Net Debt Update $Serreee Net Debt and Leverage Ratio S's in USD Millions $038 H ' ' ' $83.3 $098 $98.2 ' ' ' ' ' ' H sco sha ‘ ' Net Debt / Adjusted EBITDA 23x 24x 18x 2.9x . Q2 2021 Summary » Net debt decreased by approximately $23.3 million in Q2 » Reduced revolving credit facility by net $27.5 mi
Slide 19: Summary
Summary Seereiave 2021 Q2 Summary » Control Devices — challenging Q2 due to global supply chain related headwinds — expecting continued supply chain related challenges in the second half of 2021. Focused on supporting future growth with key program awards and launches. Electronics — Continued strong
Slide 20: Appendix
Appendix Sseveee
Slide 21: Income Statement
Income Statement Stoneridge ‘CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Uraudteg) {inthousands, except per share data) EZ Netsales 191334 99,545, 385,129 282511 Costs and expenses: Costof goods sold 148,493, 96,201 296 202 223880 ‘Sling, general and administrative 31380 27,688 60,756 57.196 Ga
Slide 22: Balance Sheet
Balance Sheet Stoneridge Caan ancea ears ‘peacoat ws snes 60 24017 espe Frost tanger et am teat Shame ut ne ssa org ne 3,207 rs Dom 3,203, ‘nee wenrostwdvase aon Shas eines 807206 940 shes a. 30.202 andes, {oa rvoeeban aoe é
Slide 23: Statement of Cash Flows
Statement of Cash Flows Stoneridge CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS. (Urausted) Sixmonths ended June 30 thousands) Ea 2020 ‘OPERAMINGACTIVMES: etincome oss) $s 19828 (19248) ‘Adjustments toreconcle net income to net cash provided by (used for operating cites: Depreciation 14.098 1320
Slide 24: Statement of Cash Flows (Cont.)
Statement of Cash Flows (Cont.) Revohing cred felt borowngs 30000 71500 -Revohingredtfadiypaments a0} 88 50) Proceeds fom issuance of debt 21808 17345 Repaymentsofdost aay 18282) Common Share repurchase program a (4995) ‘Repurchase of Commen Sheres wo seis employs tewtbelsag sea ay, Netcash usedfon
Slide 25: Segment Financial Information
Segment Financial Information Stoneridge Cartloescor 5 ass are eeerones 0s wat ‘soreage Ta08 emits as Toten sae me F ‘pra inene a2 aw ererones ‘aan ‘Sonepat a, ‘ates ope x9 Toslepwatng nce 088) Te T omni Dees ssa ‘enero os Stoenap sant 01 Toalsepecitn ns smonston@) Tae restive Oconee ——" ‘soneage an
Slide 26: Reconciliations to US GAAP
Reconciliations to US GAAP Sseveee
Slide 27: Reconciliations to US GAAP
Reconciliations to US GAAP Soci 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 28: Reconciliations to US GAAP
Reconciliations to US GAAP Stoneridge .of2 2021 Adjusted EPS (as0 i milionsy Netincome ‘Ada Ater-Tax Change in Fair Value of Eam-Out (Stoneridge Broa) ‘Add: AtorTaxRestructuing Costs Lass: Ater-Tax ain on Sale of Canton Facility ‘Add: Ater-TaxBusiness Realignment Costs ‘Add: Ator-TaxBraaiian Indirec
Slide 29: Reconciliations to US GAAP
Reconciliations to US GAAP Stoneridge Reconciliation of Adjusted Gross Proft (USD in miions) Gross Profit ‘Add: Pre-Tax Restructuring Costs 06 03 Less: Pre-Tax One-Time Sale of Soot Sensor Produc Inventory on e ‘Add: Pre-Tax Business Realignment Costs oo ‘Adjusted Gross Profit 5 eT 434 of Adjusted O
Slide 30: Reconciliations to US GAAP
Reconciliations to US GAAP Stoneridge SD mibony Income (Loss) Before Tax intrest expense, net Depreciation and amerizaion EBITDA ‘adlLess) Pre-Tax Change in Fair Value of Earn-Out(Stoneidge Graal) ‘dL. Pro-TaxLoss in stotech Fund investment ‘ad Pre-TaxRestuctuing Costs Less: Pre-TaxGain on Sale of C
Slide 31: Reconciliations to US GAAP
Reconciliations to US GAAP Stoneridge of G2 2021 Adjusted Tax Rate (USD in milons) Income Before Tax |Add: Pre-Tax Change in Fair Value of Eamn-Out (Stoneridge Braai) 4 ‘Add: Pre-Tax Restructuring Costs 03 Less: Pre-Tax Gain on Sale of Canton Facilty @07) ‘Add: Pre-Tax Business Realignment Costs oa
Slide 32: Reconciliations to US GAAP
Reconciliations to US GAAP Stoneridge Reconciliation of Control Devices Adjust (SD i milions) 12021 02.2021 Control Devices Operating Income $s 102 § a74 ‘Add: Pre-Tax Restructuring Costs 14 03 Less: Pre-Tax Gain on Sale of Canton Faciliy, - @07) Less: Pre-Tax Gain fom Disposal of Soot Sensor Busine
Slide 33: Reconciliations to US GAAP
Reconciliations to US GAAP Stoneridge Reconciliation of Adjusted Sales (USD mitions) | arzoz | azz0t | Sales s 191.3, Less: Pre-Tax One-Time Sale of Soot Sensor Produc Inventory . ‘Adjusted Sales ETE} Reconeiliation of Adjusted Sales Excluding Disposed Soot Sensor Business (USD hh mitions) Qi 2024 0
Slide 34: Reconciliations to US GAAP
Reconciliations to US GAAP. SI svevvee Reconciliation of Adjusted EBITDA Excluding Disposed Soot Sensor Products (USD in mits) 42021 922021 Adjusted EBITDA $ 122 $ 73 Less: Pre-Tax Gain ftom Disposed Soot Sensor Business ‘Adjusted EBITD AExcluding Disposed Soot Sensor Products Reconeilation of Adjus
Slide 35: Reconciliations to US GAAP
Reconciliations to US GAAP Stoneridge Reconciliation of Control Devices Adjusted Sales (USD wr mionsy Qt 2021 22024 1016 $ Control Devices Sales 26.7 Less: Pre-Tax One-Time Sale of Soot Sensor Product Invertory 19) . ‘Adjusted Control Devices Sales. of Control Devices Adjusted Sales Excluding Dispos