Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q4 2023 Earnings Presentation
26 slides from Cooper-standard's earnings presentation, Feb 16, 2024
Slide 1: Creating Sustainable Solutions Together
Creating Sustainable Solutions TOGETHER Fourth Quarter and Full Year 2023 Earnings Presentation February 16, 2024
Slide 2: Agenda
Agenda Introduction Roger Hendriksen | Director, Investor Relations 2023 Year in Review 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: 2023 Year in Review
2023 Year in Review Jeff Edwards, Chairman and CEO 4
Slide 5: Continued Operating Excellence, Strong Financial Improvement
Continued Operating Excellence, Strong Financial Improvement 2023 Key Statistics 98% World-class Quality 97% World-class Service 0.32 World-class Safety 24 World-class Safety Green Customer Scorecards Green Launch Scorecards Total Incident Rate (TIR) Plants with Perfect TIR of 0 12% Revenue Growth $
Slide 6: Continued Recognition for Culture of Integrity
Continued Recognition for Culture of Integrity Newsweek’s list of America's Most Responsible Companies for the fifth consecutive year 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 December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 Sales $ 673.6 $ 649.3 $ 2,815.9 $ 2,525.4 Gross Profit $ 64.7 $ 54.3 $ 290.8 $ 129.8 % Margin 9.6 % 8.4 % 10.3 % 5.1 % Adjusted EBITDA1 $ 27.6 $ 27.6 $ 167.
Slide 9: Q4 2023 Bridge Analysis
Q4 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: FY 2023 Bridge Analysis
FY 2023 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: Strong Cash Flow Performance Adds to Solid Liquidity
Strong Cash Flow Performance Adds to Solid Liquidity Free Cash Flow1 Liquidity - December 31, 2023 (millions) (millions) Three Months Ended December 31, 2023 2022 Net cash provided by (used in) ABL availability operating activities $ 79.7 $ (25.8) Capital expenditures (17.6) (12.7) Cash on hand Free
Slide 12: Strategic Overview and Outlook
Strategic Overview and Outlook Jeff Edwards, Chairman and CEO 12
Slide 13: Developing Industry-leading Innovations
Developing Industry-leading Innovations • Successful innovations enabled $176m in new business wins in 20231 • Developing options with a sustainability focus • Helping customers optimize their systems • Improving CPV and margin growth 1 Full year 2023 new business awards that include Cooper Standard
Slide 14: Innovation Highlight - Fluid Systems
Innovation Pipeline Innovation Highlight - Fluid Systems Integrated Coolant Manifold for Improved Packaging, Installation and Efficient Coolant Routing • Yields ~30% reduction in customer-made connections • Improved vehicle assembly cycle time • Simplified routing of flow enabling reduced pressure d
Slide 15: Innovation Highlight - Sealing Systems
Innovation Pipeline Innovation Highlight - Sealing Systems FlushSeal™ Sealing System Recognized as a 2023 SPE Automotive Innovation Award Finalist • Recognized in the Body Exterior category • Patented solution enables flush glass and differentiated aesthetics while maintaining traditional door archi
Slide 16: Expanded Technology License Agreement with NIKE, Inc.
Expanded Technology License Agreement with NIKE, Inc. Supportive of Continued Diversification Strategy • Provides limited exclusivity for the use of Fortrex™ technology in footwear • Allows NIKE, Inc. to develop new extensions of Fortrex™ technology for potential use in additional product lines • Su
Slide 17: Optimizing Industrial and Specialty Group (ISG)
Optimizing Industrial and Specialty Group (ISG) 2023 Actions and Initiatives Provide Solid Foundation for Profitable Growth • Refocusing business development and engineering teams for positive top line growth – Strategically targeting new business opportunities for maximum value creation – Strengt
Slide 18: Relentless Focus on Our Strategic Imperatives
Relentless Focus on Our Strategic Imperatives FINANCIAL WORLD-CLASS PROFITABLE GROWTH CORPORATE STRENGTH EXECUTION DRIVEN BY INNOVATION RESPONSIBILITY Execute our business plans Attain world-class results Leverage our materials science and Deliver value to all our stakeholders achieving and sustaini
Slide 19: 2024 Outlook: Further Margin Expansion; Moderating Growth
2024 Outlook: Further Margin Expansion; Moderating Growth 2024 Initial 2023 Actuals Guidance1 Adjusted EBITDA2 Guidance Bridge Analysis (Estimates Based on Mid-point of Provided Range) Sales $2.82 billion $2.8 - $2.9 billion Adj. EBITDA2 $167.1 million $180 - $210 million Capital Expenditures $80.7
Slide 20: G CooperStandard
G CooperStandard 20
Slide 21: Appendix
|! Appendix G CooperStandard 2
Slide 22: Innovations Enable Partnering on Key Customer Programs
Innovations Enable Partnering on Key Customer Programs CS Top Vehicle Platforms for 2024 • Top 10 platforms account for ~40% of planned 2024 revenue • Unweighted average content per vehicle (CPV) across top 10 platforms is ~$175 • Heavily weighted toward high-volume trucks, SUVs and CUVs • 8/10 top
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) Quarter Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net loss attributable to Cooper-Standard Holdings Inc. $ (55,152) $ (88,091) $ (201,985) $ (215,384) Income tax (benefit) expense (528) 15,467 8,9
Slide 25: Adjusted Net Loss and Adjusted Loss Per Share
Adjusted Net Loss and Adjusted Loss Per Share (Unaudited, dollar amounts in thousands except share and per share amounts) Quarter Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net loss attributable to Cooper-Standard Holdings Inc. $ (55,152) $ (88,091) $ (201,985) $ (215,384) Restru
Slide 26: Free Cash Flow
Free Cash Flow (Unaudited, dollar amounts in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 Net cash provided by (used in) operating activities $ 79,661 $ (25,790) $ 117,277 $ (36,150) Capital expenditures (17,559) (12,659) (80,743) (71,150) Free cash
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