Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — FY2010 Earnings Presentation
30 slides from Cooper-standard's earnings presentation, Mar 21, 2011
Slide 1: Fourth Quarter and Full Year Earnings Call
Cooper Standard Fourth Quarter and Ful l Year Earnings Cal l March 21, 2011 Exhibit 99.2
Slide 2: Introduction & Agenda
Introduction & Agenda • Introduction: Glenn Dong, Treasurer • Executive Overview: Jim McElya, CEO • Business Highlights: Keith Stephenson, COO • Financial Review & Guidance: Allen Campbell, CFO • Questions & Answers
Slide 3: Safe Harbor
Safe Harbor In addition to historical information, certain statements contained herein are forward-looking statements within the meaning of federal securities laws, and Cooper Standard Automotive (Cooper Standard) intends that such forward-looking statements be subject to the safe-harbor created the
Slide 4: Safe Harbor
Safe Harbor This presentation includes forward-looking statements, reflecting current analysis and expectations, based on what are believed to be reasonable assumptions. Forward-looking statements may involve known and unknown risks, uncertainties and other factors, which may cause the actual result
Slide 5: Executive Overview 4Q & Full Year 2010
Jim McElya Chairman & CEO Executive Overview 4Q & Full Year 2010
Slide 6: Executive Overview
Executive Overview • Innovative, global solutions provider for broad and diverse customer base • Advantageous business model, proven record of profitable operating performance • Five lanes for revenue growth – Industry recovery – Emerging markets – Global platforms – Green technology trends – Opport
Slide 7: Executive Overview: Year and Quarter Review
Executive Overview: Year and Quarter Review • 2010: – Solid financial performance – Increased gross profit margin – Annual Gross business awards of $613 million* – Strong cash flow – Strong balance sheet • th Quarter: – Strong adjusted EBITDA margin run-rate – 43% of total 2010 launch * Based on cur
Slide 8: Executive Overview: Industry Conditions
Executive Overview: Industry Conditions • Capacity and raw materials concerns • Suppliers adding back growth-related costs • Continued growth in emerging markets • Increased demand for new technology • Industry consolidation creating opportunities, as global automotive production improves
Slide 9: Five Lanes for Revenue Growth
Five Lanes for Revenue Growth • Industry recovery • Emerging markets • Global platforms • Green technology trends • Opportunistic acquisitions
Slide 10: Priorities
Priorities • Continue expansion in Asia & South America • Aggressively pursue business on global platforms • Leverage global alliance with Nishikawa • Successfully launch new technologies • Manage raw material costs and supply
Slide 11: Cooper Standard
G CooperStandard
Slide 12: Business Highlights
Business Highlights 4 th Quarter 2010 • Solid revenue growth in all regions • Recognized by customers for quality excellence • Q4 launched $183 million in annualized sales, across multiple product lines • Launched new generation of pump technology to support introduction of electric vehicles • Conti
Slide 13: Sales By Region & Product Groups
Sales By Region & Product Groups Full Year 2010 = $2.4 Billion Note: Inclusion of JV sales would increase Asia Pacific share to 15%
Slide 14: Presence in Emerging Markets
Brazil China India Headquarters Joint Venture Operation Manufacturing Manufacturing / Technical Center Sales / Manufacturing Presence in Emerging Markets Huayan Kunshan Panyu Shanghai Wuhu Changchun Chongqing Jingzhou Varginha Camaçari São Bernardo Dharuhera Manesar Chennai Pune Sahibabad Brazil Chi
Slide 15: Emerging Markets Vehicle Launches
Emerging Markets Vehicle Launches QQ3 A3 M-11 Fiesta Mondeo Mazda 3 Golf Palio Siena Fiesta EcoSport Corsa Civic C-3 C-4 Logan Polo Saveiro Corolla Indigo March Figo Scorpio Xylo Wagon R Alto City Punto Spark Etios LaCrosse Lacetti Epica China India Brazil Automaker Ace Indicruz MG3 S100 Passat MPV
Slide 16: Cooper Standard's Top Platforms 4Q 2010
Cooper Standard’s Top 20 Platforms 4Q 2010 #5 GM Silverado/Sierra #2 Ford Tribute/Escape #20 Peugeot #1 Ford F-150 #7 Ford Fusion / Edge #9 Ford Ecosport/Fiesta #13 Chrysler Journey #8 Ford Mondeo/Freelander/ V50/V70 #14 Fiat Palio/Strada/Doblo #3 GM Tahoe/Yukon/ Escalade #4 Ford Fiesta/Fusion #10 G
Slide 17: Vehicle Launches 4Q 2010
Vehicle Launches 4Q 2010 North America Europe Asia Pacific South America – Chrysler 300 Thermal Management – Fiat 500 Sealing, Thermal Management – Ford Explorer Sealing; Liftgate Obstacle Detection System; Fuel, Brake & Emissions; Thermal Management – Ford Eco-Engine Thermal Management – Nissan Lea
Slide 18: Advanced Products for Emerging Trends
Advanced Products for Emerging Trends Bright Trim Sealing Direct Injection Fuel Rails Exhaust Gas Recirculation (EGR) Module Coolant Pump Thermal Management Key customer benefits: • Increases fuel economy • Lighter weight • Increased efficiency • Optimizes coolant flow Opportunity: • Increasing need
Slide 19: Focus on Operational Excellence
Focus on Operational Excellence • Disciplined approach to restructuring and Lean – Target annual cost savings 4% of sales • Manufacturing design and process expertise – Won 2 Honda Brazil awards in 4Q • Disciplined model for acquisition integration
Slide 20: Financial Overview 4Q & Full Year 2010
Financial Overview 4Q & Full Year 2010 Allen Campbell Chief Financial Officer Due to Cooper Standard’s adoption of fresh start reporting on May 31, 2010, in some of its financial reports, the company’s financial information for periods ended on or prior to May 31, is described as relating to Predece
Slide 21: 4Q and Full Year 2010 Performance
4Q and Full Year 2010 Performance $ Millions Q4 2009 Q4 2010 Net Sales $577.6 $603.7 Operating Profit (Loss) $ 37.2 $ 25.7 Gross Profit $ 91.1 $ 96.8 FY 2009 FY 2010 $1,945.3 $2,414.1 $ (344.1) $ 142.2 $ 266.3 $ 409.6 Net Income (Loss) $ 37.4 $ 14.8 $ (356.1) $ 676.9 Adjusted EBITDA $ 61.7 $ 176.5 $
Slide 22: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation $ USD Millions Net Income (Loss) $(356.1) $ 676.9 Provision for income tax expense (benefit) (55.7) EBITDA $(233.7) $ 893.8 Restructuring 32.4 6.4 Adjusted EBITDA $ 176.5 $ 276.5 45.0 12 Months Ended December 31st Net Interest expense 64.3 69.5 Depreciation
Slide 23: Cash Flow 4Q 2010
Cash Flow 4Q 2010 Cash Balance as of September 30 232.3 $ Cash generated 62.2 Cash Balance as of December 31 294.5 $ ($ in Millions) Q4 - 2010 Cash from Operations 37.9 $ Changes in operating assets & liabilities 52.4 Cash from Operations 90.3 $ Capital Expenditures (30.9) Cash from Operations less
Slide 24: Liquidity as of December 31, 2010
Liquidity as of December 31, 2010 Cash on Balance Sheet $294.5M ABL Revolver 125.0M Letters of Credit (33.2)M Total Liquidity $386.3 M Flexible capital structure allows for future growth opportunities • 27% increase in cash from the prior quarter • ABL Revolver undrawn • Net leverage = $182 million
Slide 25: Guidance
Guidance* • Sales: $2.5 billion - $2.6 billion • Capital expenditures: $90 million - $100 million • Cash restructuring: $10 million - $20 million • Cash taxes: $25 million - $30 million * Guidance is based on IHS December North American production of 12.9 million, and Europe (including Russia) produ
Slide 26: Non-GAAP Financial Measures
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 in add
Slide 27: Questions & Answers
Questions & Answers
Slide 28: Summary
Summary • Continue expansion in Asia & South America • Aggressively pursue business on global platforms • Leverage global alliance with Nishikawa • Successfully launch new technologies • Manage raw material costs and supply Ready to Thrive in the New Competitive Landscape and Drive Shareholder Value
Slide 29: Cooper Standard
G CooperStandard
Slide 30: Three Months Ended December 31, 2010 Adjusted EBITDA
Three Months Ended December 31, 2010 Net income 14.8 $ Provision for income tax benefit (0.3) Interest expense, net of interest income 10.8 Depreciation and amortization 29.8 EBITDA 55.1 $ Restructuring (1) (0.7) Stock-based compensation (2) 2.8 Severance (3) 5.8 Other (1.3) Adjusted EBITDA 61.7 $ (
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