Stoneridge, Inc. · NYSE:SRI

Stoneridge — Q2 2020 Earnings Presentation

32 slides from Stoneridge's earnings presentation, Jul 29, 2020

  1. Slide 1: Stoneridge July 30, 2020

    Exhibit 99.2 FZ <¢ "Stoneridge July 30, 2020

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements Services 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

  3. Slide 3: Overview of Achievements

    Overview of Achievements Sverrcee ¥_ Strong execution in response to COVID-19 Y Q2 decremental adjusted contribution margin of 30.1% in line with previously outlined expectations Liquidity remains strong with net debt increase of only $11.1 million in Q2 (Q2 net debt / adjusted EBITDA of 2.3%) Y Con

  4. Slide 4: 2020 Q2 Financial Highlights

    2020 Q2 Financial Highlights Sverre jal Highlights $8 in USD Milions $183.0 » Revenue reduction of 45.6% vs. Qt driven by prolonged shut-down, or significant sas production reduction in global customer Sales facilities in April and May || » Downward adjusted contribution margin of enzo ca2000 30.1%

  5. Slide 5: Production and Cost Actions Update

    Production and Cost Actions Update Sverrcee Q2 Sales by Month SG&A and D&D Expenses #039;s in USD Milions #039;s in USD Mitlons A reduced by $515 ‘$7 milion in 02 $272 $208 ‘pri May June 1 2020 2 2020 Production Update Cost Actions Update » Production ramping-back up by the end of Q2 tonormalized » Mainta

  6. Slide 6: Soot Sensor Business Update

    Soot Sensor Business Update Stoneridge Announced the exit of Control Devices’ soot sensor product line (particulate matter sensor) Strategic focus on aligning resources with the greatest opportunities Decline in the market outlook for diesel passenger vehicles Poor expected financial performance Too

  7. Slide 7: 2020 Updated Volume Outlook

    Qi Earnings Calll Data Z 2020 Updated Volume Outlook HB current outeok Sverrcee issenger Car Forecast (Mitions of Units) North America Europe China 43.8% of 2019 Sales 2.7% of 2019 Sales (5.3% of 2019 Sales 20 ) 6.8 2 Ss + 5 18 a 6 2 0 ‘0 1 10 6 5 5 0 0 0 2 03 04 20202021 rr ‘a2 a3 a4 (4.3%) 2.1% 5.

  8. Slide 8: MirrorEye Update

    MirrorEye Update Retrofit » COVID-19 restrictions delayed progress on broader installations in Q2 » Two expanded fleet retrofit installations completed in early Q3 2020 (~60 units / fleet) » Additional expanded retrofit installation planned by end of fer} > Three current expanded retrofit rollout pa

  9. Slide 9: Awarded Program Launches

    Awarded Program Launches Services Canopus voi 37m a al stim sim Global Diver nortan Sain POG EAGT STAGES 866m S cies cveritomaton ton Progen > sem v Dvr fomation Syste PORTS Sm S ciao rromaions rte Ps Sim s22m Goma s10m CONTROL DEVICES .ANNBAIY TWANNY Yad jean and European OEM Pro a oz 23 <i Qa ea i

  10. Slide 10: Summary

    Summary Fiereridae Summary, v Strong execution in response to COVID-19 across the organization including a focus on the safety of our employees and ability to adapt to current business environment v Efficiently responding to changes in production drove cash flow that exceeded previously outlined ‘ex

  11. Slide 11: Financial Update

    Financial Update Ssevertve

  12. Slide 12: 2nd Quarter 2020 Financial Summary

    2"4 Quarter 2020 Financial Summary Sverrcee 2n4 Quarter 2020 Financial Results » Sales of $99.5 million, a reduction of 45.6% versus Q1 + Control Devices sales of $48.6 million, a reduction of 50.5% versus Q1 * Electronics sales of $47.6 million, a reduction of 40.4% versus Q1 + Stoneridge Brazil sa

  13. Slide 13: Control Devices

    Control Devices Seereieee Financial Performance #039;8in USO Miions Q1 2020 vs. Q2 2 Control Devices Q2 Summary » Revenue reduction of 50.6% vs. Q1 driven by broad production shut-downs at customer facilities primarily in Sales As North America a rn » Direct material costs consistent with Q1 (% of sale

  14. Slide 14: Electronics

    Electronics SI sver0ee Financial Performance #039;sin USO Mions Q1 2020 vs. Q2 2 Electronics Q2 Summary » Revenue reduction of 40.4% vs. Q1 driven by broad si98 production shut-downs or reduced schedules at customer Sales srs facilities in North America and Europe —_—_—____ Dk Ey Ea Direct material cos

  15. Slide 15: Stoneridge Brazil

    Stoneridge Brazil Seereieee Financial Performance #039;8in USO Miions Q1 2020 vs. Q2 2 Stoneridge Brazil Q2 Summary » Revenue reduction of 51.9% versus Qt Sales oie a » Gross margin improved by 430 basis points vs. Q1 2020 —_—___ » Direct labor reduced by 70 basis points 1 2020 22020 » Significant redu

  16. Slide 16: Net Debt Update and Cash Flow Outlook

    Net Debt Update and Cash Flow Outlook Sverrcee Net Debt and Leverage Ratio Cash Net Debt 130 1680 i i I i i i ‘291 ! ! 105.4 825 1 936 1 2 = i H _ fad ' 1 = i ' i ' 63.1 15 553 = eS ' tees 4 ~ ' 1 ar2018 on208 as2018 e201 atmo Hl Hl 1 Net Debt / Adjusted EBITDA 0.5K 0.6x 0.6x 0.7x 41x 1 1 92 Cash Fl

  17. Slide 17: Summary

    Summary Feereriage 2020 a2 summary » Control Devices — Improving operational performance and leverage on fixed costs expected to drive improved second half margin. » Electronics — Focus on operational improvement expected to reduce material costs in the second half. Continued investment in resources

  18. Slide 18: Appendix

    Appendix Ssevertve

  19. Slide 19: Income Statement

    Income Statement Seereieee CONSOLIDATED STATEMENTS OF OPERATIONS ‘Three months ended Six month ended une 2, aie 2, Ar trousandsexceptper share data) m0 EN 2000 m9 Net sales S 09585 $ 22.261 § mast § 440.530 ‘Costs and expenses: Cos of goods sold e201 te54e ago az2858 ‘Seling, general and administrat

  20. Slide 20: Balance Sheet

    Balance Sheet Stoneridge asses ore Cosh and cao eet 8 ran ‘eco ecaal ss sees ST and 128, spchely sane tne et 50 Prpidepne anda canet set ast Tasleoret eae Eo Lape sete Property pit eget ww20 ‘irl seas, 360 ont ws Operten wae rote asst ase nett and athe pr ast 08 ‘aalrptam assets on Tastseres sae LOL

  21. Slide 21: Statement of Cash Flows

    Statement of Cash Flows CONSOLIDATED STATEMENTS OF CASH FLOWS ‘Six months ended June 30 fn thousands m0 219 (OPERATING ACTIMTIES: Net loss) income S (18,204 49.421 ‘Adjustments to reconcile net Income to net cash provided by (used for) operating activites: Depreciation 13,282 11819 ‘Amortzation, inc

  22. Slide 22: Statement of Cash Flows (Cont.)

    Statement of Cash Flows (Cont.) SI sver0ee INVESTING ACTIMTEES: Captal expenditures, including intangibles Proceeds trom sale of fixed assets Proceeds from disposal of Non-core Products Investment in venture capital fund [Nat cash (used for provided by investing actives FINANCING ACTIMTI Revoling cr

  23. Slide 23: Segment Financial Information

    Segment Financial Information Stoneridge Neti: Conte Devices eesegrent ses Conwo Dovces nt sles Eleconcs eer-segment sales Electronic es Storeng Bras esr-segrent sas ‘Sonerisge Bazin sales Elminatone Taine es (Operating (Loss) come, Cnt Devices leone Stoneridge Braz Unatcated Corporate ® “Taz epee (

  24. Slide 24: Reconciliations to US GAAP

    Reconciliations to US GAAP Ssevertve

  25. Slide 25: Reconciliations to US GAAP

    Reconciliations to US GAAP Soecciee 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 financia

  26. Slide 26: Reconciliation of Q2 Adjusted EPS

    Reconciliations to US GAAP Sverrcee Reconciliation of @2 2020 Adjusted EPS. (uso nmin) Net Loss s (2.7) § (0.81) ‘Aad: After Tax Step-Up in Far Value of Earn-Out (Stoneridge Brazi) 04 oot ‘Add: After-Tax Restructuring Costs 42 0.16 ‘Add: After-Tax Change in Fair Value of Equty investment o4 0.00 0.0

  27. Slide 27: Reconciliation of Adjusted Gross Profit

    Reconciliations to US GAAP Stoneridge Reconciliation of Adjusted Gross Profit (USD in mitions) 24 2020 02.2020 Gross Profit 133, ‘Add: Pre-Tax Restructuring Costs 18 02 ‘Add: Pre-Tax Business Realignment Costs 04 09 ‘Adjusted Gross Profit 744 (USD in mitons) Operating income (Loss) $ (288) ‘Ad: Pre-

  28. Slide 28: Reconciliation of SG&A and D&D Expenses

    Reconciliations to US GAAP SI sver0ee Reconciliation of Selling, General and Administrative Expenses (SG&A) (USD in mions) 12020 022020) SG&AExpense Less: Pre-Tax Step-Up in Fair Value of Earr-Out (Stoneridge Brazih Less: Pre-Tax Change in Far Value of Eqully nvestment Less: Pre-Tax Restructuring Co

  29. Slide 29: Reconciliation of Q2 Adjusted Tax Rate

    Reconciliations to US GAAP Services Reconciliation of @2 2020 Adjusted Tax Rate (USD in mitons) Loss Before Tax ‘Add: Pre-Tax Step-Up in Fair Value of Earn-Out (Stoneridge Brazi) 04 ‘Add: Pre-Tax Change in Fair Vie of Equly Investment oa ‘Add: Pro-Tax Restructuring Costs 46 ‘Add: Pre-Tax Business Re

  30. Slide 30: Reconciliation of Segment Adjusted Operating Income

    Reconciliations to US GAAP SI sver0ee Reconcillation of Control Devices Adjusted Operating Income (Loss) (USD in mitons) 2020) 922020) ‘Control Devices Operating incom (Loss) 73S (0.7) ‘Add: Pre-Tax Restructuring Costs 22 30 ‘Add: Pre-Tax Business Realignment Costs 04 49. ‘Control Devices Adjusted O

  31. Slide 31: Reconciliation of Adjusted Sales

    Reconciliations to US GAAP Stoneridge Reconciliation of Adjusted Sales (USD a mitions) Sales Less: Pre-Tax One-Time Sale of Non-Core Product Inventory ‘Adjusted Sales Reconciliation of Adjusted Sales Excluding Disposed Non-Core Products (USD fn mitfons) ‘Adjusted Sales Less: Pre-Tax Sale from Dispos

  32. Slide 32: Reconciliation of Control Devices Adjusted Sales

    Reconciliations to US GAAP Stoneridge Reconciliation of Control Devices Adjusted Sales (USD in mitfons) Control Devices Sales Less: Pre-Tax One-Time Sale of Non-Core Product Inventory ‘Adjusted Control Devices Sales Reconcillation of Control Devices Adjusted Sales Excluding Disposed Non-Core Product

Stoneridge — Q2 2020 Earnings Presentation on 6ix