Stoneridge, Inc. · NYSE:SRI
Stoneridge — J.P. Morgan Auto Conference 2017
21 slides from Stoneridge's conference presentation, Aug 9, 2017
Slide 1: J.P. Morgan Auto Conference Investor Presentation
J.P. Morgan Auto Conference Investor Presentation August 9, 2017
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: About Stoneridge
3 About Stoneridge 11 Manufacturing locations on 4 continents 18.3% 1965 NYSE: SRI ~$ 3 billion 5 - year Backlog YTD Revenue g rowth Stoneridge is an established, global company with a well diversified product portfolio, strong historical financial performance and a robust 5 - year backlog YTD Adj.
Slide 4: Organization Overview
4 10.9% of YTD Sales 32.8% of YTD Sales 56.3% of YTD Sales Organization Overview Stoneridge, Inc. (NYSE: SRI) Driver Information Systems Vision Systems Telematics Systems Tachograph Systems Electronic Control Units (ECU) Electronic Logging Devices Power & Switch Modules ELECTRONICS High Performance
Slide 5: Stoneridge - A Vehicle Technology Company
5 Stoneridge - A Vehicle Technology Company We focus on industry megatrends that will drive growth 2 - 3x our underlying markets Migrating toward smart products will continue to drive growth through increased vehicle content 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 2013 2014 2015 2016 2017 YTD 2016 A
Slide 6: Intelligence
6 Intelligence Stoneridge is helping customers move from electromechanical to electronic solutions that can leverage digital advantages Stoneridge Solutions Instrument Clusters Fully reconfigurable, high resolution displays Telematics E nhances vehicle diagnostics and efficiency Electronic Control U
Slide 7: Emissions
7 Emissions Compliance requirements are driving increasingly sophisticated emissions products Increasingly stringent standards creating demand for additional emissions products and more complex systems Stoneridge has developed innovative technologies that enable compliance with increasingly stringen
Slide 8: Fuel Efficiency
8 Fuel Efficiency Stoneridge Solutions Mirror Eye TM Reduces fuel consumption through enhanced aerodynamics Front Axle Disconnect Improves drivetrain efficiency Turbo Actuator Improves engine performance Telematics E nhances vehicle efficiency Market demand for fuel economy and performance has led O
Slide 9: Safety and Security
9 Safety and Security Stoneridge Solutions Mirror Eye TM Eliminates driver blind spots and increases driver’s awareness of surroundings Tachograph and Electronic Logging Device (ELD) Improves driver safety and enables compliance Track and Trace E nhances driver safety and security of both vehicle an
Slide 10: Financial Summary
10 Financial Summary
Slide 11: Overview of Achievements
11 Overview of Achievements x Record quarterly sales, gross profit and operating income for current operations x All segments exceeded expectations x One of three global suppliers to receive a 2016 Safe Pillar Award from Ford for achieving excellence in quality, cost, performance and delivery relate
Slide 12: Financial Performance
12 Financial Performance $’s in USD Millions Q2 Year - to - Date Sales Adjusted Gross Profit and % Margin Adjusted Operating Income and % Margin Adjusted EBITDA and % Margin $33.8 $49.5 9.7% 12.0% $20.0 $30.0 $40.0 $50.0 YTD 2016 YTD 2017 7.5% 9.5% 11.5% 13.5% $22.1 $36.0 6.3% 8.7% $8.0 $18.0 $28.0
Slide 13: Control Devices Segment Update
13 $60.0 Million $80.0 Million $100.0 Million $120.0 Million $140.0 Million Q3 2015 Q3 2016 Q4 2015 Q4 2016 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Sales 13.9% 14.7% 13.3% 14.2% 14.5% 15.9% 16.7% 17.3% $5.0 Million $10.0 Million $15.0 Million $20.0 Million $25.0 Million Q3 2015 Q3 2016 Q4 2015 Q4 2016 Q1 20
Slide 14: Electronics Segment Update
14 4.8% 6.5% 7.7% 4.9% 6.4% 8.7% 6.8% 6.8% $0.0 Million $5.0 Million $10.0 Million Q3 2015 Q3 2016 Q4 2015 Q4 2016 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Adjusted Operating Income* $50.0 Million $60.0 Million $70.0 Million $80.0 Million $90.0 Million Q3 2015 Q3 2016 Q4 2015 Q4 2016 Q1 2016 Q1 2017 Q2 2016
Slide 15: PST Segment Update
15 $15.0 Million $20.0 Million $25.0 Million $30.0 Million Q3 2015 Q3 2016 Q4 2015 Q4 2016 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Sales PST Segment Update PST has improved quarterly operating margin by more than 2,200 basis points and is well positioned for future growth - 2.6% 0.1% - 7.8% 3.2% - 17.7% 2.7
Slide 16: FY 2017 Updated Guidance
16 2017 Guidance Previously Provided 2017 Guidance Updated Midpoint Improvement Sales $775 - $795 Million $795 - $815 Million $20 million (2.5%) Adjusted Gross Margin* 28.5% - 30.5% 30.0% - 31.0% 100 basis points Adjusted Operating Margin* 7.0% - 8.0% 8.0% - 9.0% 100 basis points Adjusted EPS $1.10
Slide 17: Summary
17 Summary Stoneridge is a well - established, global, automotive technology company We are well diversified globally, by segment and by end - market with no one end - market* comprising more than 1/3 of our sales We are positioned to outpace vehicle market growth by 2 – 3x over the next 5 years by
Slide 18: Reconciliations to US GAAP
18 Reconciliations to US GAAP
Slide 19: Reconciliations to US GAAP
19 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 20: Reconciliation of Adjusted Gross Profit and Operating Income
20 Reconciliations to US GAAP Reconciliation of Stoneridge Adjusted Gross Profit (USD in millions) Q2 2017 YTD 2017 Gross Profit $63.4 $124.6 Add: Pre-Tax Step-Up in Acquired Inventory from Orlaco 0.7 1.6 Adjusted Gross Profit $64.1 $126.2 Reconciliation of Stoneridge Adjusted Operating Income (USD
Slide 21: Reconciliation of Q2 Adjusted EBITDA
21 Reconciliations to US GAAP Reconciliation of Q2 Adjusted EBITDA (USD in millions) Q2 2017 YTD 2017 Q2 2016 YTD 2016 Income before tax $14.1 $27.9 $12.3 $19.3 Interest expense, net 1.5 2.9 1.8 3.4 Depreciation and amortization 7.1 13.6 5.9 11.1 EBITDA $22.7 $44.4 $20.1 $33.8 Add: Pre-Tax Step-Up i