Stoneridge, Inc. · NYSE:SRI
Stoneridge — Q3 2021 Earnings Presentation
35 slides from Stoneridge's earnings presentation, Oct 27, 2021
Slide 1: Stoneridge October 28, 2021
Zz Exhibit 99.2 < “Stoneridge October 28, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Siereitoe Statements inthis presentation that are not historical fact are forwarc-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 t
Slide 3: Q3 2021 Summary
Q3 2021 Summary $Serreee ¥ Extemalities continued to significantly impact the quarter - ($0.25) adjusted EPS headwind vs. prior expectations Y We outperformed our end-markets. End-market decline of 7.4% vs. Stoneridge revenue decline of 5.6% Q2 to Q3. ¥ Despite net supply chain related costs of $6.3
Slide 4: Leadership Announcement
Leadership Announcement Favreriase —=4 Matt Horvath was appointed as Chief Financial Officer and Treasurer effective August 313 During his five-year tenure at the Company, Matt previously served as the Company's Executive Director of Corporate Strategy and Investor Relations, and prior to that as Di
Slide 5: Financial Summary
Financial Summary SI svevvee Sees Q2 2021 vs. Q3 2021" Q3 Financial Highlights* Noun » End-market sales decline of 7.4% vs, Stoneridge sales - sr7es decline of 5.6% from Q2 to G3 as supply chain constraints Sales’ | reduced production 02 2021 03 2021 » Adjusted sales in Q3 2021 includes unfavorable
Slide 6: Q3 2021 Performance Drivers vs. Prior Expectations
Q3 2021 Performance Drivers vs. Prior Expectations $Serreee External Performance Drivers — ~($0.25) adjusted EPS impact in Q3 i 1» Reduced volumes due to production shutdowns driven primarily by supply ! Law y a | chain-telated challenges 1 1» Netincremental supply chain costs primarily due to mater
Slide 7: Supply Chain Update
Supply Chain Update Favreriase Continued Supply Chain Challenges Ea] Ed Ee | In-twaationar logistics + Product portfolio heavily weighted towards electronics and smart products, creating significant challenges + Material shortages and resulting global OEM production shutdowns and volatility continue
Slide 8: Supply Chain-related Incremental Costs
Supply Chain-related Incremental Costs Favreriase ‘Spot Buys /Incremontal FreightCosts MMaterial rice Increases Labor inefficiencies » Material “spot” buys from third-parties due to material shortages in tracitional Supply chain ~ individual events + Premium freight costs related to specific shipmen
Slide 9: Prior Outlook: 2021 Updated Volume Outlook
Prior Outlook Z 2021 Updated Volume Outlook ee $Serreee issenger Car Forecast (itiions of Uni North America Europe China 40.0% of 2020 Sales 4.6% of 2020 Sales % of 2020 Sales 2 rs z fee » as oo = ‘a ee] a . ‘a * 4 6 8 0 ° a 0 cazert Gta aoa), aua2 os 2021 ose atri_2022 a en ee ata) Hees) _Sitawil (
Slide 10: MirrorEye Update
MirrorEye Update SI svevvee OEM Program Launches » First OEM program launching now in Europe + Previously estimated total peak annual revenue of ~$13 million based on 17% quoted take rate for the system + Based on updated customer forecasts, estimated take rate is expected to meet or exceed quoted t
Slide 11: Summary
Summary Fsvereridae summary Y Externalities continuing to significantly impact financial performance ¥ Continued to mitigate incremental supply chain related costs — specific mitigation actions to continue in 4 v Continued momentum with MirrorEye Firet OEM launch in Europe - expected to meet or exce
Slide 12: Financial Update
Financial Update Sseveee
Slide 13: Quarter 2021 Financial Summary
3 Quarter 2021 Financial Summary * Stoneridge 3'4 Quarter 2021 Financial Results Excluding divested product lines, sales of $178.5 million, a decrease of 5.6% over Q2 2021 sales Excluding divested product lines, Control Devices sales of $84.8 million, an increase of 0.4% over Q2 2021 sales + Electro
Slide 14: Control Devices
Control Devices Serves Financial Performance $'sin USO Mitons Q2 2021 vs. Q3 2 Control Devices Q3 Summary. » Sales inline with Q2 2021 sales, excluding divested soot sensor business, primarily due to ramp-up of new program saa sas launches offset by production shutdowns as a result of Sales* supply
Slide 15: Electronics
Electronics Serves Financial Performance $'sin USO Mions Q2 2021 vs. Q3 20: Electronics Q3 Summary » Sales declined 13.8% vs. Q2 2021 primarily due to commercial vehicle OEM production shut-downs as a result of supply chain disruptions Sales $839 > The impact of currency exchange rates decreased rev
Slide 16: Stoneridge Brazil
Stoneridge Brazil Serves Financial Performance ‘$n USO Mitons Q2 2021 vs. Q3 Stoneridge Brazil Q3 Summai » Excluding the favorable impact of currency exchange rates $165 of $0.2 million, sales increased 9.0% relative to Q2 2021 on eae » Adjusted operating margin slightly declined vs. Q2 2021 ee prim
Slide 17: Q4 2021 Anticipated Performance Drivers
Q4 2021 Anticipated Performance Drivers Sverrcee Drivers of Q3 to Q4 Performance ($0.28) $10.24) - ($0.11) Net Supply chain Other Operating torso Rolated Costs Times 6007-000 spinners: ‘cpnadaa ere marasaqustes —ABLEPS —-s0.00-s002.Aej EPS -8002-8003 pele cnciiaatnpt Ges ex Deed ‘Adustes Produt Unee
Slide 18: Net Debt
Net Debt $Serreee Net Debt and Leverage Ratio S's in USD Miions $633 $698 $062 $749 03 2020 (042020 01 2021 e222 acesh Net Debt i Net Debt / Adjusted EBITDA 24x 18x 29x thx ' 3 2021 Summary, » Net debt increased by approximately $6.7 million in Q3. » Approximately $265 million of undrawn commitments
Slide 19: Summary: 2021 Q3 Summary and Outlook
Senne Fereisoe 2021 @3 Summary » Control Devices — challenging Q3 due to global supply chain-related headwinds — expecting continued ‘supply chain-related challenges in the fourth quarter of 2021. Focused on offsetting incremental supply chain costs and supporting future growth and program launches.
Slide 20: Appendix
Appendix Sseveee
Slide 21: Income Statement
Income Statement Siereitoe CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unauatted) ‘Three months ended Nine menths ended September 9, September 3, An thousand, except per share data) Ea 208 EZ 720 Nat sales 11g80 $175,764 566,809 © $ 458.275 Costs and expenses: Cost of goods sold 145,680 129,769
Slide 22: Balance Sheet
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Slide 23: Statement of Cash Flows
Statement of Cash Flows $Serreee CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS. (Unaudited) Nine months ended September 20 (in thousands) 200 2020 ‘OPERATING ACTIVITIES: Net income (loss) $ 9570 $ (11530) ‘Adjustments to reconcile net income (loss) to net cash provided by (used for) operating acti
Slide 24: Statement of Cash Flows (Cont.)
Statement of Cash Flows (Cont.) Stoneridge INVESTING ACTIVES: Capital expenditures, including intangibles sds from sale offred assets, Investment in venture capital fund, net Net cash provided by (used for) vesting activlles FINANCING ACTIVITIES: Revolving credit facility borrowings Revolving credit
Slide 25: Segment Financial Information
Segment Financial Information Stoneridge Cortes $ mow + case er segrrt aks mn om ewes Tiss a stones —as0 Ts seeetn Ot co aaa tr sept ake ‘Shee rt tse Ta eee = ea pert ss ne =. ‘corsloeee 5 Core) ‘Stray 362 nated Conorae ey Teter sree co Coretbeiee eC a) rete am 250 nae Conse 2 00 Tet sont sr ant tn
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 Reconciliation of @3 2071 Adjusted EPS. (USD in mitons) @3 2021 932024 Not Loss (104) § (0-38) ‘Ads: Ater-Tax Change in Fair Value of Earn-Out (Stoneridge Brazt) 02 oot ‘Add: Ater-Tax Restructuring Costs o7 ‘Add: Adjustment to Tax impact Related to Sale of Canto
Slide 29: Reconciliations to US GAAP
Reconciliations to US GAAP Stoneridge Reconellation of Adjusted Gross Prof TaD ATT Gross Profit $s 428 § 36.0 ‘Add: Pre-Tax Restructuring Costs 03 os Adjusted Gross Proft x 434_§ 366 icnaimiaommareaies TaD) = ‘Operating income (Loss) $ Br § 9) ‘Add: Pro-Tax Change in Fair Value of Eam-Out (Stoneridg
Slide 30: Reconciliations to US GAAP
Reconciliations to US GAAP Stoneridge Reconciaton of Adjusted EITDA (Wsoimiiors) Income (Loss) Before Ta “58 05 $ 256 $ 208 Interest expense, net 18 18 19 69 Depreciation and amortzaton 26 a4 a4 236 amTDA = Mo $ 708 § 359 § 03) § 13 ‘AdoLes):Pre-Tax Change in Fai Value of am-Out Stoneridge Bra! 2) o
Slide 31: Reconciliations to US GAAP
Reconciliations to US GAAP SI svevvee Reconciliation of @3 2021 Adjusted Tax Rate (USD h mitions) Loss Before Tax ‘Add: Pre-Tax Change in Fak Value of Earn-Ou (Stoneridge Braz) ‘Add: Pre-Tax Restructuring Costs ‘Add: Pre-Tax Business Realgnment Costs 932021 s (9.8) 02 07 14 ‘Adjusted Loss Before Tax
Slide 32: Reconciliations to US GAAP
Reconciliations to US GAAP SI svevvee isl 6 i li iis arco WD Control Devices Operating Income $ wa § 29 ‘Add: Pre-Tax Restructuring Costs. Less: Pre-Tax Gain on Sale of Carton Facitty Control Devices Adjusted Operating Income Reconciliation of Electronics Adjusted Operating Loss. (USD in milions) a2
Slide 33: Reconciliations to US GAAP
Reconciliations to US GAAP SI svevvee Reconciliation of Sales Excluding Disposed Soot Sensor Business (USD in milion) 22021 932024 Less: Pre-Tax Sales from Disposed Soo! Sensor Business Sales Excluding Disposed Soot Sensor Business Reconciliation of Adjusted Gross Profit Excluding Disposed Soot Sens
Slide 34: Reconciliations to US GAAP
Reconciliations to US GAAP SI svevvee Reconciliation of Adjusted EBITDA Excluding Disposed Soot Sensor Products (USD in mitons) 022024 932021 ‘Adjusted EBITDA $ 73 $ 18 Less: Pre-Tax Gain rom Disposed Soot Sensor Business @: 5) ‘Adjusted EBITDA Excluding Disposed Soot Sensor Products 66 $ 13 Reconci
Slide 35: Reconciliations to US GAAP
Reconciliations to US GAAP SI svevvee lation of Control Devices Sales Excluding DI (USD in miions) Control Devices Sales Less: Sales from Disposed Soot Sensor Business 23) @2 Controt Devices Sales Excluding Disposed Soot Sensor Business A pra ws Reconciliation of Control Devices Adjusted Operating I