Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Deutsche Bank Leveraged Finance Conference 2014
26 slides from Cooper-standard's conference presentation, Oct 1, 2014
Slide 1: Deutsche Bank Leveraged Finance Conference
1 Deutsche Bank Leveraged Finance Conference October 1, 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
Cooper Standard Overview Allen Campbell Executive Vice President and Chief Financial Officer
Slide 4: Cooper Standard
4 4 Cooper Standard (NYSE: CPS) 2013 Revenue: $3.1 Billion (52% NA, 35% Europe, 7% Asia, 6% SA) Supplier Ranking1: 67 Globally 40 North America 49 Europe Global Footprint: 82 facilities 10 technical centers 19 countries Employees: 25,000 + employees (1) Automotive News - 2013 Sealing & Trim Systems
Slide 5: Core Product Lines
5 5 Static Systems • Glass Run Channels • Waist belts • Encapsulation • Day Light Systems Trim Systems • Appliqués • Bright trim • Exterior Aesthetics Dynamic Systems • On Body Seals • On Door Seals • Convertible • Occupant Detection Systems (ODS) • Fuel Lines • Brake Lines • Bundles Fuel Rails • Ta
Slide 6: Global Footprint
6 Global Footprint Located in all Major Regions and Further Expanding in Emerging Markets Americas Europe Asia • Aggressively growing footprint and OEM relationships through organic growth and partnerships (HASCO, INOAC and others) • Broadening product portfolio and adding technical talent • New reg
Slide 7: Diversifying and Expanding Customer Base
7 7 Diversifying and Expanding Customer Base Detroit Three revenues : 70% in 2004 - 49% in 2013 Ford 25% GM 12% VW 6% PSA 7% Fiat Chrysler Auto 12% Renault Nissan 3% Daimler 3% BMW 1% Geely 2% Tata 2% Honda 1% Toyota 1% Other 25% RENAULT Sales by Ultimate Customer (2013)
Slide 8: Products Well Represented on Global Platforms
8 8 Products Well Represented on 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 Chrysler 200 Mid -
Slide 9: Enterprise Value Creation
9 9 Enterprise Value Creation Management Focused On Profitable Growth • Achieve double digit ROIC • Significantly increase Asia Pacific market share Significant Growth Available • Win key business on global platforms • Expand core product share across customer base Superior Innovation and Engineerin
Slide 10: Growing in China
10 10 Growing in China Changchun Chongqing Huai-an Jingzhou Kunshan Shanghai Cooper Standard / INOAC JV Majority – owned JV with an established Asian auto supplier provides best opportunity for entering Asia market Expands our global reach and leadership position in Fluid Transfer Systems produc
Slide 11: Innovation
11 11 Photos Others? Innovation • Specialized group of scientists dedicated to skip-generation solutions • Strong culture of innovation with ideas generated from many internal and external sources • Innovations focused on materials, processes and products Ultra Galfan Coating Armor Hose Gen III Quic
Slide 12: Delivering Best Business Practices
12 12 Delivering Best Business Practices • Drive for improvements in ROIC by: – Identifying best-in-class performance – Capturing key processes and technologies – Accelerating continuous improvement
Slide 13: Building a Great Place to Work
13 13 Building a Great Place to Work
Slide 14: Financial Overview
Glenn Dong Vice President and Treasurer Financial Overview
Slide 15: Strong Financial Attributes
15 15 Strong Financial Attributes • Growing in excess of market • Improving margin performance • Investing for future growth • Flexible capital structure
Slide 16: Growing in Excess of Market
16 16 Growing in Excess of Market $ USD Billions Note: CAGR includes non-consolidated JV revenue Numbers subject to rounding $0.0 $1.0 $2.0 $3.0 $4.0 2010 2011 2012 2013 2014 $2.41 $2.85 $2.88 $3.09 $1.70 Exceeding global light vehicle production CAGR of 4.2% $3.25-$3.35 FY Guidance Actual Guidance
Slide 17: First Half 2014 Revenue
17 17 First Half 2014 Revenue Note: Numbers subject to rounding First Half 2013 - $1,532 First Half 2014 - $1,695 $ USD Millions $0 $200 $400 $600 $800 $1,000 North America Europe Asia Pacific South America $783 $548 $105 $96 $885 $614 $115 $81 13.0% 12.0% 9.2% (15.2%) Regional Light Vehicle Product
Slide 18: Improving Margin Performance
18 18 Improving Margin Performance Second Half 2013 First Half 2014 FY 2014 Outlook Sales $1,558.2 $1,695.2 $3,250 - $3,350 % growth 8.8% Gross Profit 220.1 280.4 % margin 14.1% 16.5% SGA 145.6 161.2 Operating Profit 51.0 103.8 % margin 3.3% 6.1% Adjusted EBITDA 128.2 172.3 % margin 8.2% 10.2% Doubl
Slide 19: Investing for Future Growth
19 19 Investing for Future Growth • Capital expenditure • Future programs – Tooling expenditures increasing working capital – Product complexity driving tooling spend • Adding talent to support: – Increased launch activities / product complexities – Infrastructure / capabilities enhancement – Produc
Slide 20: Flexible Capital Structure
20 20 Flexible Capital Structure • Net Leverage $ 585.1 M • Net Leverage to Adjusted EBITDA 1.95 x • Interest Coverage Ratio 5.40 x Debt Maturity $28 $1 $3 $1 $648 $719 2014 2015 2016 2017 2018 2021 $750 million Term Loan B Key Financial Ratios (1) Note: Numbers subject to rounding Liquidity Cash Ba
Slide 21: Cooper Standard Value Proposition
21 21 Management Focused On Profitable Growth Significant Growth Available Superior Innovation and Engineering Long-Standing Customer Relationships Balance Sheet & Cash Flow Supports Growth Advantaged Global Footprint Cooper Standard Value Proposition
Slide 22: Appendix
Appendix
Slide 23: EBITDA and Adjusted EBITDA – Six Months Ended December 31, 2013
23 23 Note: Numbers subject to rounding EBITDA and Adjusted EBITDA – Six Months Ended December 31, 2013 Three Months Ended Six Months Ended Sep 30, 2013 Dec 31, 2013 Dec 31, 2013 Net income (loss) $20.6 ($20.8) ($0.2) Income tax expense 4.5 21 25.5 Interest expense, net of interest income 15.2 14.9
Slide 24: EBITDA and Adjusted EBITDA – Six Months Ended June 30, 2014
24 24 Note: Numbers subject to rounding (1) Includes non-cash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non-cash stock option expense for grants issued at time of the Company’s 2010 reorg
Slide 25: Net Leverage Ratio and Adj. EBITDA % Margin
25 25 Net Leverage Ratio and Adj. EBITDA % Margin as of June 30, 2014 Note: Numbers subject to rounding ($ USD Millions) (1) Includes noncash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non
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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