Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Bank of America Merrill Lynch 2014 New York Auto Summit
26 slides from Cooper-standard's conference presentation, Apr 16, 2014
Slide 1: Drive for Profitable Growth
1 1/9/2013 1:23PM DRIVE FOR PROFITABLE GROWTH Bank of America Merrill Lynch 2014 New York Auto Summit April 16, 2014
Slide 2: Forward-Looking Statements
2 2 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. We make forward-looking statements in this presentation and may
Slide 3: Cooper Standard Overview
3 Jeff Edwards Chairman and Chief Executive Officer Cooper Standard Overview
Slide 4: Company Snapshot
4 4 Company Snapshot • 2013 Revenue : $3.09 Billion • Customers - 77% direct OEM (49% Detroit 3) - 23% Tier 1, Tier 2 and other markets • Footprint - 74 manufacturing facilities - 10 design and engineering centers - 19 countries • Headcount - ~25,300 employees • NYSE: CPS (Market cap > $1 billion) 2
Slide 5: Cooper Standard Journey
5 5 Cooper Standard Journey 2008 – 2010 Survival • Emerged from Reorganization 1960-2005 Company Developed • Business Established • Acquired Standard Products Company • Acquired Siebe Automotive • Divested from Cooper Tire 2010 - 2013 Recovery • Acquired USi Inc. • Established Cooper Standard France
Slide 6: Product Portfolio
6 6 Product Portfolio 2013 Revenue by Product Sealing & Trim, 51% AVS, 9% Thermal & Emissions, 2% Fluid Transfer, 13% Fuel & Brake, 23% Non- Automotive, 2% Product Groups Sealing & Trim Systems Protects vehicle interiors from weather, dust and noise intrusion while enhancing exterior appearance. Fue
Slide 7: North American Leader: Market Leading Positions in Core Products
7 7 North American Leader Fluid Delivery • Hoses • Sensors • Connectors • Quick-Connects • Engine Tubes • Transmission Oil Cooler (TOC) • TOC Lines • TOC Modules • AC Lines / Bundles Power Management • Power Steering Lines • Convertible Lines • Cabin Tilt Lines Market Leading Positions in Core Produ
Slide 8: Global Footprint
8 8 Global Footprint Americas Europe Asia • Optimizing capacity • Enhancing efficiencies • Significantly improving performance • Restructuring Europe • Improve overall competitiveness • Rebuild leadership team • Top priority for profitable growth • Investing in manufacturing footprint • Building str
Slide 9: Diversifying and Expanding Customer Base
9 9 Diversifying and Expanding Customer Base Detroit Three revenues : 75% in 2004 - 49% in 2013 25% 12% 12% 25% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 37% 22% 16% 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2004 Sales 2013 Sales
Slide 10: Products on Top Models; Global Platforms
10 10 Products on 18 of the top 20 Models; 10 are Global Platforms #12 Ford Fusion/Mondeo/MKZ #3 Ford Explorer / Taurus #16 Chrysler Dodge Challenger/Charger #9 PSA Picasso/C3 #11 GM Cruze/Volt/Astra #1 Ford F-150 #19 Chrysler Jeep Wrangler #18 VW Jetta #17 Chrysler Town &Country/ Dodge Caravan #8 C
Slide 11: Track Record of Growing Sales
11 11 Track Record of Growing Sales USD Billions Note: CAGR includes non-consolidated JV revenue Numbers subject to rounding $0.0 $1.0 $2.0 $3.0 $4.0 2009 2010 2011 2012 2013 $1.95 $2.41 $2.85 $2.88 $3.09 $.10 $.28 $.31 $.41 $.44 CS Sales Non-Consolidated JVs Exceeding global light vehicle productio
Slide 12: Shareholder Value Creation: Drive for Profitable Growth
12 12 Shareholder Value Creation Drive for Profitable Growth • Intelligent and disciplined strategic focus • Achieve double digit adjusted EBITDA • Building global capabilities to deliver higher ROIC Priorities Focused Actions Relentless Focus on the Customer • Meet customer quality targets • Obtain
Slide 13: Financial Overview
13 Allen Campbell Executive Vice President and Chief Financial Officer Financial Overview
Slide 14: Full Year 2013 Performance
14 14 Full Year 2013 Performance (1) A reconciliation of Adjusted EBITDA to Net Income for the periods presented is included in the appendix hereto; this presentation and the appendix is available on our website at www.cooperstandard.com Note: Numbers subject to rounding $1,504 $1,017 $147 $213 $1,6
Slide 15: Non-Consolidated Joint Venture Revenue
15 15 Non-Consolidated Joint Venture Revenue Joint Venture Partner Product Country 2013 Rev. Huayu-Cooper Sealing SAIC/HASCO Sealing China $168MM Nishikawa Cooper Nishikawa Rubber Sealing U.S. $193MM Nishikawa Tachaplalert Cooper Nishikawa Rubber Sealing Thailand $70MM Sujan CSF India Magnum Elastom
Slide 16: Full Year 2013 Cash Flow
16 16 Full Year 2013 Cash Flow Note: Numbers subject to rounding USD Millions $270.6 $184.4 $192.5 $41.4(a) $183.3 $13.5 $17.9 $4.7 $17.9 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Cash Balance as of 12/31/2012 Cash from business Changes in operating assets and liabilitlies Capital expendit
Slide 17: Transition for Profitable Growth
17 17 Transition for Profitable Growth Capital expenditure at 5.9% of 2013 sales – Asia Pacific 9.2% Multiple sites expansion in India Establishing Shanghai Tech Center – Europe 6.8% Manufacturing plant in Serbia, net annualized labor savings of $25M – South America 7.4% – North America and ot
Slide 18: First Quarter 2014 Update
18 18 First Quarter 2014 Update Q3 2013 Q4 2013 Q1 2014 Sales $764 M $794 M Adjusted EBIT (1) $44 M $31 M Adjusted EBITDA margin (1) 9.1% 7.4% Launch / Product challenges Expect continued margin improvement for full year 2014 Improved performance over Q4 2013 (1) A reconciliation of Adjusted EBITDA
Slide 19: Recent Refinancing Activity
19 19 Recent Refinancing Activity • April 4 - Cooper Standard entered into a $750 million Term Loan Facility at L+300 bps due 2021 – Proceeds used to refinance 7 ⅜% Senior PIK Toggle Notes and 8 ½ % Senior Notes – Facility offers significant flexibility around investments/acquisitions • ABL credit f
Slide 20: CPS Historical Stock Price
20 20 $0 $10 $20 $30 $40 $50 $60 $70 $80 1/2/2013 2/2/2013 3/2/2013 4/2/2013 5/2/2013 6/2/2013 7/2/2013 8/2/2013 9/2/2013 10/2/2013 11/2/2013 12/2/2013 1/2/2014 2/2/2014 3/2/2014 4/2/2014 CPS Historical Stock Price • Debt Refinancing completed • Early Notes Tender settlement • Closing Price - $69.43
Slide 21: Summary
21 21 Summary • Focus on North America and Europe turnaround performance – Addressing launch and product complexity in Sealing & Trim business • Continue to make necessary capacity investments / infrastructure – Asia growth strategy – Serbia expansion – Business support systems • Pursue partnerships
Slide 22: Passion for Performance
S_PASSION FOR PERFORMANCE
Slide 23: Passion for Performance
S_PASSION FOR PERFORMANCE
Slide 24: EBITDA and Adjusted EBITDA – Twelve Months Ended December 31, 2013
24 24 EBITDA and Adjusted EBITDA – Twelve Months Ended December 31, 2013 (USD Millions) (1) Includes non-cash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non-cash stock option expense for g
Slide 25: EBITDA and Adjusted EBITDA – Twelve Months Ended December 31, 2012
25 25 EBITDA and Adjusted EBITDA – Twelve Months Ended December 31, 2012 Note: Numbers subject to rounding (USD Millions) (1) Includes cash and non-cash restructuring. (2) Proportionate share of restructuring costs related to FMEA joint venture. (3) Non-cash stock amortization expense and non-cash s
Slide 26: Non-GAAP Financial Measures
26 26 Non-GAAP Financial Measures EBITDA and adjusted EBITDA are measures not recognized under Generally Accepted Accounting Principles (GAAP) which exclude certain non-cash and non-recurring items. When analyzing the company’s operating performance, investors should use EBITDA and adjusted EBITDA i
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