Slide 1: Full-Year and Q4 2021 Results
Full - Year and Q4 2021 Results March 1, 2022 Exhibit 99.2
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 Q 4 2021 Key Accomplishments and 2022 Expectations Q 4 2021 Financial Performance 2021 Financial Performance and 2022 Guidance 2021 Reported 2021 Adjusted 2022 Guidance $ 770.5 million $750.5 million $860.0 – $900.0 million $ 166.9 million 21.7% $ 168.4 million 22.4% 21.5%
Slide 4: Financial Summary: 2021 Quarterly Comparison
4 2021 Quarterly Comparison* 2020 vs. 2021* Adjusted Sales Adjusted Gross Profit Adjusted Operating Income Adjusted EBITDA Q3 financial performance expected to be the trough with improvement continuing in 2022 $’s in USD Millions * Excluding divested soot sensor products lines for comparison purpose
Slide 5: Supply Chain Update
5 Continued progress in recovering incremental supply chain - related costs Material cost increases continue to be the largest driver of incremental net supply chain - related costs Continued Supply Chain Challenges Offset ~78% of costs in Q4 Supply Chain Update ▸ Offset ~$18.5 million of incrementa
Slide 6: MirrorEye Update
6 MirrorEye Update Strong market demand driving take - rates on first OEM program of at least 35%+ this year – continued expansion in bus market OEM Update ▸ Launched first OEM MirrorEye program with DAF in Europe • Estimated take rate is expected to be at least 35% (vs. 16% quoted take rate) on new
Slide 7: Backlog grew by 13% in 2021
7 ▸ Backlog increased by ~13% driven primarily by incremental business awards, recent launches and program expansions ▸ MirrorEye OEM program launches (retrofit is incremental to backlog) ▸ Digital driver information system program launches ▸ Powertrain electrification / actuation programs ▸ SMART2
Slide 8: Long Term Financial Targets - Revenue
8 Long Term Financial Targets - Revenue ▸ Expecting ~9% CAGR from 2022 to 2026 driving revenue to over $1.25 billion based on awarded business backlog and targeted growth opportunities (assuming MirrorEye at quoted take - rates) • Key program launches include: MirrorEye OEM, Smart 2 Tachograph and N
Slide 9: Long Term Financial Targets - EBITDA Margin
9 2026 EBITDA target of 14% driven by contribution margin on incremental revenue, price recovery strategies, continuous improvement in operating performance and leverage on existing cost structure 2022 EBITDA Margin Guidance Long - term EBITDA Target 2026 EBITDA Margin Target 14.0% Material Cost / R
Slide 10: Summary
10 Summary 2021 Summary x Supply chain challenges and rapidly increasing material costs created instability in production for our customers and pressure on gross margin throughout 2021 x As the year progressed, we put processes in place to pass through a significant portion of our gross supply chain
Slide 11: Financial Update
Financial Update $Siereiese
Slide 12: 2021 Fourth Quarter Results
12 2021 Fourth Quarter Results Adjusted sales of $184.7 million, an increase of 1.7% over Q3 2021 • Control Devices adjusted sales of $78.6 million, a decrease of 7.4% from Q3 2021* • Electronics adjusted sales of $96.5 million, an increase of 15.0% over 3Q 2021 • Stoneridge Brazil sales of $14.0 mi
Slide 13: Q4 2021 Performance Drivers vs. Prior Expectations
13 Q4 2021 Performance Drivers vs. Prior Expectations ▸ Unfavorable impact of volume and mix primarily due to reduction in North American passenger car customer production schedules ▸ Net supply chain costs and customer recoveries favorable vs. prior expectations ▸ Cost control and focus on manufact
Slide 14: Control Devices Financial Performance
14 Control Devices Financial Performance Strong Q4 execution expected to continue in 2022 Focus on meeting incremental electrified vehicle platform demand for current and future products Control Devices 2022 Expectations ▸ Continue to drive execution from Q4 2021 in 2022. Efficiently adjust variable
Slide 15: Electronics Financial Performance
15 Electronics Financial Performance Electronics 2022 Expectations ▸ Strong revenue growth expected to drive margin expansion and positive operating margin in 2022 ▸ Execute on 2022 MirrorEye OEM program launches and retrofit expansions ▸ Focus on price negotiations with strategic customers to offse
Slide 16: Stoneridge Brazil Financial Performance
16 Stoneridge Brazil Financial Performance Expecting continued growth in OEM and track and trace business units to deliver stable revenue and margin performance despite continued macroeconomic challenges – focus remains on supporting global Electronics business Stoneridge Brazil 2022 Expectations Re
Slide 17: Net Debt and Leverage Ratio
17 Credit Facility amendment provides relief through Q1 2023 Focused on efficient cash management – targeting less than 2.0x Net Debt / EBITDA by the end of 2022 Q4 2021 Summary and 2022 Expectations ▸ Net debt increased by approximately $2.1 million in Q4 to 3.5x net debt / trailing - twelve - mont
Slide 18: 2022 Sales Guidance
18 2022 Sales Guidance ▸ Revenue guidance implies 17%+ revenue growth vs. weighted average end - market growth of ~8.8% in 2022 (~2x market growth) ▸ Key new program launches and ramp - up of programs launched in 2021 • Digital Instrument Cluster programs • MirrorEye OEM Programs • Actuation program
Slide 19: 2022 Adjusted EPS Guidance
19 2022 Adjusted EPS Guidance 2022 Adjusted EPS of ($0.15) - $0.10 based on strong contribution margin on significant revenue growth, current market conditions and continuous improvement in our performance and cost structure Expecting contribution margin on production and Stoneridge specific growth
Slide 20: 2021 Summary and 2022 Outlook and Guidance
20 2021 Summary ▸ Control Devices – Strong sales in the first half of the year declined into the second half of the year as supply chain volatility and material availability impacted customer production. Material cost challenges led to reduced margin with improvement in Q4. ▸ Electronics – Despite s
Slide 21: Appendix
Appendix $Siereiese
Slide 22: End-Market Forecasts and Sales by End Market
22 Weighted OEM end - markets expected to increase 8.8% in 2022 *Regional sales based on manufactured location and estimated end - market exposure **Sales direct to customers. Total customer exposure may differ due to sales to suppliers that sell to end customers ***Excluding Orlaco and Stoneridge B
Slide 23: Primary Stoneridge Foreign Currency Sensitivities
23 Primary Stoneridge Foreign Currency Sensitivities SRI Currency Exposures 2022 Assumption Rates If 5% Weaker vs. USD N et Annual EBITDA * Transaction Impact Translation Impact Euro 1.18 Mexican Peso 19.93 N/A Chinese Yuan 6.46 Swedish Krona 8.63 Brazilia n Real 5.32 *Before impact of hedging progr
Slide 24: Income Statement
24 Income Statement CONSOLIDATED STATEMENTS OF OPERATIONS Year ended December 31, (in thousands, except per share data) Net sales $ 770,462 $ 648,006 $ 834,289 Costs and expenses: Cost of goods sold 603,604 493,810 620,556 Selling, general and administrative 116,000 112,474 123,853 Gain on sale of C
Slide 25: Segment Financial Information
25 Segment Financial Information SEGMENT REPORTING December 31, Net Sales: Control Devices $ 355,775 $ 342,576 $ 431,560 Inter-segment sales 3,502 5,475 6,438 Control Devices net sales 359,276 348,051 437,998 Electronics 357,910 257,767 335,195 Inter-segment sales 26,192 24,027 33,735 Electronics ne
Slide 26: Balance Sheet
26 Balance Sheet CONSOLIDATED BALANCE SHEETS December 31, (in thousands) ASSETS Current assets: Cash and cash equivalents $ 85,547 $ 73,919 Accounts receivable, less reserves of $1,443 and $817, respectively 150,388 136,745 Inventories, net 138,115 90,548 Prepaid expenses and other current assets 36
Slide 27: Statement of Cash Flows
27 Statement of Cash Flows CONSOLIDATED STATEMENTS OF CASH FLOWS Year ended December 31, (in thousands) OPERATING ACTIVITIES: Net income (loss) $ 3,406 $ (7,950) $ 60,291 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation 27,823 27,309 24,904 Am
Slide 28: Statement of Cash Flows (Cont.)
28 *Refer to Note 2 in Form 10 - K as of December 31, 2020 Statement of Cash Flows (Cont.) FINANCING ACTIVITIES: Revolving credit facility borrowings 91,913 71,500 112,000 Revolving credit facility payments (64,000) (61,500) (82,000) Proceeds from issuance of debt 45,753 41,104 2,208 Repayments of d
Slide 29: Reconciliations to US GAAP
29 Reconciliations to US GAAP
Slide 30: Reconciliations to US GAAP
30 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 measures in the appendix of t
Slide 31: Reconciliation of Adjusted Sales and Gross Profit
31 Reconciliations to US GAAP Reconciliation of Adjusted Sales (USD in millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Sales 183.0$ 99.5$ 175.8$ 189.7$ 648.0$ 193.8$ 191.3$ 181.7$ 203.7$ 770.5$ Less: Pre-Tax Sale of Soot Sensor Product Inventory - - - - - (1.0) -
Slide 32: Reconciliation of Adjusted EBITDA
32 Reconciliations to US GAAP Reconciliation of Adjusted EBITDA (USD in millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Income (Loss) Before Tax 4.7$ (28.5)$ 8.5$ 4.5$ (10.7)$ 0.5$ 25.6$ (9.8)$ (3.9)$ 12.4$ Interest expense, net 1.1 1.3 1.9 1.8 6.1 1.8 1.9 1.4 0.1
Slide 33: Reconciliation of Control Devices Adjusted Sales
33 Reconciliations to US GAAP Reconciliation of Control Devices Adjusted Sales (USD in millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Control Devices Sales 98.2$ 48.6$ 100.9$ 100.4$ 348.1$ 101.6$ 86.7$ 88.0$ 82.9$ 359.3$ Less: Pre-Tax Sale of Soot Sensor Product
Slide 34: Reconciliation Excluding Disposed Soot Sensor Business
34 Reconciliations to US GAAP Reconciliation of Adjusted Sales Excluding Disposed Soot Sensor Business and Spot Purchase Recovery (USD in millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Adjusted Sales 183.0$ 99.5$ 175.8$ 189.7$ 648.0$ 192.8$ 191.3$ 181.7$ 184.7$ 7
Slide 35: Control Devices Excluding Disposed Soot Sensor Business
35 Reconciliations to US GAAP Reconciliation of Control Devices Adjusted Sales Excluding Disposed Soot Sensor Business (USD in millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Control Devices Adjusted Sales 98.2$ 48.6$ 100.9$ 100.4$ 348.1$ 100.6$ 86.7$ 88.0$ 81.6$
Slide 36: Reconciliation of Adjusted EPS
36 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