Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q3 2023 Earnings Presentation
27 slides from Cooper-standard's earnings presentation, Nov 3, 2023
Slide 1: Third Quarter 2023 Earnings Presentation
Creating Sustainable Solutions TOGETHER Third Quarter 2023 Earnings Presentation November 3, 2023
Slide 2: Agenda
Agenda Introduction Roger Hendriksen | Director, Investor Relations Third Quarter Summary Jeff Edwards | Chairman and Chief Executive Officer Financial Overview Jon Banas | Executive VP and Chief Financial Officer Strategic Overview and Outlook Jeff Edwards Q&A 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of U.S. federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Our use of words “estimate,” “expect,” “anticipate,” “project,” “pl
Slide 4: Third Quarter Summary
Third Quarter Summary Jeff Edwards, Chairman and CEO 4
Slide 5: Q3 2023 Highlights
Q3 2023 Highlights Continuing Strong Operating Performance; Growth Outpacing Market 97% 97% 31 World-class Quality World-class Service World-class Safety Green Customer Scorecards Green Launch Scorecards Plants with 0 Incidents (YTD) 12% $14m $34m Y-O-Y Sales Growth Manufacturing/Purchasing New EV B
Slide 6: Sustainability Initiatives Gaining Recognition
Sustainability Initiatives Gaining Recognition • Received silver medal from EcoVadis • Ranked in the 87th percentile of responding companies in our segment • Recognized by Nissan for sustainability 6
Slide 7: Financial Overview
Financial Overview Jon Banas, Executive VP and CFO 7
Slide 8: Financial Results
Financial Results (USD millions, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Sales $ 736.0 $ 657.2 $ 2,142.2 $ 1,876.1 Gross Profit $ 106.5 $ 38.6 $ 226.1 $ 75.5 % Margin 14.5 % 5.9 % 10.6 % 4.0 % Adjusted EBITDA1 $ 79.1 $ 20.5 $ 139
Slide 9: Q3 2023 Bridge Analysis
Q3 2023 Bridge Analysis (USD millions) Sales Adjusted EBITDA1 $0 $0 2 2 1 See Appendix for definitions and reconciliation to U.S. GAAP 2 Net of customer price adjustments. Includes impact of material cost and inflation recoveries. Totals may not add due to rounding 9
Slide 10: Q3 2023 YTD Bridge Analysis
Q3 2023 YTD Bridge Analysis (USD millions) Sales Adjusted EBITDA1 $0 $0 2 1 See Appendix for definitions and reconciliation to U.S. GAAP 2 Net of customer price adjustments. Includes impact of material cost and inflation recoveries. Totals may not add due to rounding 10
Slide 11: Continuing Solid Liquidity
Continuing Solid Liquidity Free Cash Flow1 Liquidity - September 30, 2023 (millions) (millions) Three Months Ended September 30, 2023 2022 ABL availability Net cash provided by (used in) operating activities $ 20.5 $ (10.1) Cash on hand Capital expenditures (16.4) (14.2) Free cash flow $ 4.0 $ (24.3
Slide 12: Strategic Overview and Outlook
Strategic Overview and Outlook Jeff Edwards, Chairman and CEO 12
Slide 13: Strong Customer Relationships Continue to Support Enhanced Commercial Agreements
Strong Customer Relationships Continue to Support Enhanced Commercial Agreements • Customers continued to demonstrate support of our strategic partnerships • Majority of customer negotiations are complete with successful outcomes on: - Sustainable pricing - Increased costs and inflation recovery - T
Slide 14: Developing Industry-leading Innovations
Developing Industry-leading Innovations • Successful innovations enabled $144m in new business wins1 • Developing options with a sustainability focus • Helping customers optimize their systems • Improving CPV and margin growth 1 First nine months 2023 new business awards that include Cooper Standard
Slide 15: Revolutionary Integrated Fluid Systems
Innovation Pipeline Revolutionary Integrated Fluid Systems eCoFlow™ Technology Reduces Complexity, Improves Efficiency, Increases CPV Opportunity • Eliminates independent valves • Reduces system pressure drop • Optimizes tube and adaptor routing • Simplifies wiring and I/O channels • 14 patents pend
Slide 16: Sustainable Thermoplastic Body Door Seal
Innovation Pipeline Sustainable Thermoplastic Body Door Seal Offering Enhanced Appearance, Weight Reduction and Improved Lifecycle • Sustainable dynamic seal offering recyclability • Proprietary carrier design reduces weight by 30% vs. traditional EPDM with stainless steel or aluminum carriers • Col
Slide 17: Enhancing Fortrex Portfolio
Innovation Pipeline Enhancing Fortrex® Portfolio Improving Sustainability, Performance and Price 17
Slide 18: Liveline Technologies - Commercial Milestone
Liveline Technologies™ - Commercial Milestone First Contract Signed with External Customer for Advanced Process Controls (APC) • Proprietary A.I.-based advanced process control system • Developed initially for internal deployment / application - Driving significant efficiency and scrap reduction • C
Slide 19: Continuing Implementation of Our Strategic Profitability Initiatives
Continuing Implementation of Our Strategic Profitability Initiatives Fixed cost reductions Operational Ongoing evaluation of Continued commitment over past four years are improvements supporting opportunities to optimize to fix or exit financially providing benefit margin expansion operating footpri
Slide 20: Outlook: Expect Continuing Y-O-Y Improvement in 4Q 2023
Outlook: Expect Continuing Y-O-Y Improvement in 4Q 2023; Full-year Results Near High End of Previous Guidance Range Previous 2023 Guidance1 Current 2023 Guidance1 (August 2023) Key Performance Drivers and Assumptions: Sales $2.6 - $2.8 billion $2.7 - $2.8 billion • Continued modest increases in Adj.
Slide 21: Cooper Standard
G CooperStandard 2
Slide 22: Appendix
G CooperStandard 2
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share and free cash flow are measures not recognized under U.S. GAAP and which exclude certain non-cash and special items that may obscure trends and operating perfor
Slide 24: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation (Unaudited, dollar amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income (loss) attributable to Cooper-Standard Holdings Inc. $ 11,363 $ (32,686) $ (146,833) $ (127,293) Income tax expense (bene
Slide 25: Adjusted Net Income (Loss) and Adjusted EPS
Adjusted Net Income (Loss) and Adjusted EPS (Unaudited, dollar amounts in thousands except share and per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income (loss) attributable to Cooper-Standard Holdings Inc. $ 11,363 $ (32,686) $ (146,833)
Slide 26: Adjusted EBITDA Margin, Financial Ratios
Adjusted EBITDA Margin, Financial Ratios Twelve Months Ended September 30, 2023 (Unaudited, dollar amounts in thousands) Twelve Months Ended Q4 2022 Q1 2023 Q2 2023 Q3 2023 September 30, 2023 Net (loss) income attributable to Cooper-Standard Holdings Inc. $ (88,091) $ (130,367) $ (27,829) $ 11,363 $
Slide 27: Free Cash Flow
Free Cash Flow (Unaudited, dollar amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net cash provided by (used in) operating activities $ 20,466 $ (10,125) $ 37,616 $ (10,360) Capital expenditures (16,424) (14,213) (63,184) (58,491) Free cash
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