Stoneridge, Inc. · NYSE:SRI
Stoneridge — Q1 2019 Earnings Presentation
30 slides from Stoneridge's earnings presentation, May 1, 2019
Slide 1: Stoneridge, May 2, 2019
<¢ * Stoneridge zZ May 2, 2019 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements Ssereieoe Statements in this presentation that are not historical facts are forward-looking statements, which involve risks and uncertainties that could Cause actual events or results to differ materially from those expressed or implied by the statements. Important factors
Slide 3: Overview of Achievements
Overview of Achievements Serervee Overview of Q1 2019 v Announced divestiture of non-core switches and connectors product lines to Standard Motor Products, Inc. Y Maintaining previously provided full-year 2019 guidance less the impact of divested business Y Expected to be accretive to operating marg
Slide 4: Financial Summary
Financial Summary SI sver0ee ‘FuhOsT eins Quarterly Comparison Trailing Twelve Mont $3586 suse aioe 2803 sates @ Sales | | | | 012018 42018 01 2019 Timatz018 | TTMo12019 fell $588 $62 $255.6 $2518 Adjusted os = te Gross Profit nis 12018 at 20182019 TSE GE - 0.0 $693 Adjusted ka 3143 S164 ser & Cnera
Slide 5: Stoneridge 2020 Update
Stoneridge 2020 Update Sseveicoe 440 bps improvement in operating margin a4 Drive operational efficiency 2018 to 1 2019 Grow core product portfolio Excluding Shift-by-Wire, growth of 4.7% in Complete review of strategic alternatives of non-core the tralling twelve month period switches and connector
Slide 6: Overview of Divestiture
Overview of Divestiture Ssereieoe Summary of Transaction » OnApril 1, 2019 Stoneridge sold product lines and assets related to certain non-core switches and connectors to Standard Motor Products, Inc. (SMP) for approximately $40 million » The divested product lines generated approximately $45 millio
Slide 7: MirrorEye Update
Stoneridge MirrorEye Update Fleet evaluations on-going 15 fleet evaluation agreements in place Total fleet size of signed evaluations >100k vehicles Expecting rollout end of Q2 / beginning of Q3 2019 Installation and service network expanding with Velociti to address expected demand with rollout Nat
Slide 8: Summary
Summary %stoneridge Divestiture of non-core switches and connectors product lines facilitates the closure of our Canton, MA manufacturing facility, reduces complexity and allows us to focus on core growth technologies for Control Devices Maintaining previously provided full-year 2019 guidance less t
Slide 9: Financial Update
Financial Update Ssevertee
Slide 10: 1st Quarter 2019 Summary
1st Quarter 2019 Summary Sivveie 1st Quarter 2019 Financial Results » Sales of $218.3 million, a decrease of 3% over Q1 2018 © Control Devices sales of $112.0 million a decrease of 5% over Q1 2018 * Electronics sales of $99.6 million, a decrease of 1% over Q1 2018 * PST sales of $17.3 million, a dec
Slide 11: Control Devices
Control Devices Sswer0ee Financial Performance Control Devices Overview » Continued ramp-down of shift-by-wire reduced revenue by $6.7 million in Q1 and $27.6 million in the trailing twelve month (ITM) period. Excluding shift-by-wire, the base portfolio grew by 1.0% in Q1 and 4.7% over the TTM perio
Slide 12: Electronics
Electronics Sswer0ee Financial Performance > The impact of currency exchange rates reduced revenue by $8.6 million relative to Q1 2018. Revenue growth of 7.7% excluding the impact of currency conversion. © North American and European production remains robust while Orlaco continues to outperform * O
Slide 13: PST
PST Sswer0ee Financial Performance PST Overview » Revenue remained flat excluding the impact of foreign currency conversion. Impact of foreign currency conversion reduced revenue by $3.3 million relative to Q1 2018. » Despite revenue decline of $3.2 million, operating income improved by $200k while
Slide 14: 2019 Guidance and Timing
2019 Guidance and Timing Sswer0ee » Maintaining previously provided 2019 guidance, less the full-year impact of the divestiture » Revenue expected to be split 50% / 50% 1* half / 24 half © Q2 revenue expected to be lowest quarter of the year due to continued ramp-down of shift-by-wire » Operating ma
Slide 15: Capital Structure / Share Repurchase Update
Capital Structure / Share Repurchase Update Sswer0ee » Divestiture increases available cash by approximately $40 million * Post-divestiture net debt / adjusted EBITDA ~0.0x ks cosh » We will continue to utilize our $84 = ad eee capital to maximize shareholder prtssss " return | : oF 1 1 » Stoneridge
Slide 16: Summary
Summary Ssereieoe 2019 Q1 Summary » Control Devices — Excluding Shift-by-Wire, Control Devices sales increased by $1.2 million (1.0%) over Qi 2018. Adjusted operating margin of 140 bps over Q4 2018. » Electronics — Continued strong revenue growth offset by unfavorable currency impact Adjusted operat
Slide 17: Appendix
Appendix Ssevertee
Slide 18: 2019 Q1 Adjustments
2019 Q1 Adjustments Serervee Expected Q1 2019 After- | Expected Q1 2019 After- Adjustment Tax Impact (USD millions) Tax EPS Impact Earn-out (PST) $0.5 $0.02 Business Realignment Costs $0.9 $0.03 Gain in Fair Value of Equity Investment (80.0) (80.00) Restructuring Costs $2.4 $0.07 Impact of State Tax
Slide 19: Income Statement
Income Statement Stoneridge CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ‘Thyee months ended Mareh 1 (in thousands, except per share data) 209 2018 Net sales S 218297 $225,930 Costs and expenses: Cost of goods sold 187444 157,961 Selling, general and administrative 35,910 Design and development 1
Slide 20: Segment Financial Information
Segment Financial Information Stoneridge Netsite CCrtol Devices Ss noni s15357 ier sogrent ales 1x61 2131 (Cottol Devices net ssles Tis Tse Blectrnice 90846 $0008 ero ales 3m 1972 ‘Bectrnics ne alee 39568 700300 rer 17332 20545 tern ale 6 2 PST nt sales Tae, sa liintions ose) a6) ‘Teal na ales 21829
Slide 21: Balance Sheet
Balance Sheet popendce (CONDENSED CONSOLIDATED BALANCE SHEETS (oto) 8, cy ASSETS ‘Creat ae Cahand cach ives S so 8h. ‘Aceon ecb les reserves of 61430 an 81248, regecely 1s 3576 Iuvetores, eet 92,62 18 Prep expense dtr caret sete 2.04 20731 ‘Tolerate S36 7 Lengierm assets ‘Property plant degen et 143
Slide 22: Statement of Cash Flows
Statement of Cash Flows Stoneridge (CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ‘ese mans ended Mah, bounds) 209 208 OPERATING ACTIVITTES: Netincome S967 $3380 ‘Adjustments to recone net income to net esh provided by (sed fr) operating otis Depreiaton 5007 6061 ‘Amization incu aerion of dfered n
Slide 23: Statement of Cash Flows (Cont.)
Statement of Cash Flows (Cont.) (CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ‘Tiss nts ended March, Gan) 209 2018 FINANCING ACTIVITIES: Revolving ered facty bowing: “ 5,000 Revohing cre facity payments (6000) (20,000) ‘Proceeds from issuance of debt 3 135 Repayments of debt 6 378) amm-ot conscra
Slide 24: Reconciliations to US GAAP
Reconciliations to US GAAP Ssevertee
Slide 25: Reconciliations to US GAAP
Reconciliations to US GAAP $Sierei00e 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 financ
Slide 26: Reconciliations to US GAAP
Reconciliations to US GAAP Serervee
Slide 27: Reconciliations to US GAAP
Reconciliations to US GAAP Sswer0ee
Slide 28: Reconciliations to US GAAP
Reconciliations to US GAAP Stoneridge Reconciliation of 1 2018 Adjusted EPS (USO in mations) ‘Qi 2018 EPS Net income s 3. 0.46 ‘Add: Alter-Tax Step-Up in Fair Value of Eam-Out (Ortaco) oot ‘Add: Ater-Tax Step-Up in Fair Value of Earn-Out (PST) 0.02 ‘Add: Ater-Tax Business Realignment Costs 0.01 ‘Adj
Slide 29: Reconciliations to US GAAP
Reconciliations to US GAAP Stoneridge Reconeilation of TTM Ot 2019 Adjusted EPS. (&SDin miions) Netincome ‘Ada e-Tax Sep Up in Far Value of Ern-Out (PST) (02) (aon) Less: trax Gain in Fat Value of Eauty Investment (09) (000) fd Atr-Tax Resbuctuing Costs 24 oor Less: Aer Taxlmpat of Sate Tax Valuctio
Slide 30: Reconciliations to US GAAP
Reconciliations to US GAAP Sswer0ee Reconciliation of Adjusted Tax Rate (USD in millions) 1 2019 Income Before Tax 15 ‘Add: Pre-Tax Step-Up in Fair Value of Eamn-Out (PST) 0s Less: Pre-Tax Gain in Fair Value of Equity Investment (0) ‘Add: Pre-Tax Restructuring Costs 28 ‘Add: Pre-Tax Business Realign