Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — FY2013 Earnings Presentation
24 slides from Cooper-standard's earnings presentation, Feb 25, 2014
Slide 1: Drive for Profitable Growth
Exhibit 99.1 DRIVE FOR PROFITABLE GROWTH Fourth Quarter and Full Year Earning Call February 25, 2014
Slide 2: 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. We make forward-looking statements in this presentation and may mak
Slide 3: Jeff Edwards, Chairman and Chief Executive Officer
Jeff Edwards Chairman and Chief Executive Officer 3
Slide 4: Industry Landscape
Industry Landscape • Global light vehicle production expected to grow 3.1% in 2014 – North American vehicle production remains strong – European vehicle production stabilizing and is forecasted to grow by 1.6% – Emerging markets are mixed with strong growth continuing for China, with slight softenin
Slide 5: 2013 Business Update
2013 Business Update • Cooper Standard global sales grew by 7.3% year-over-year • Full year adjusted EBITDA margin of 9.3% of sales – Sealing and Trim launch and significant product challenges impacting financial performance • Investing in people, process improvements, technology and working closely
Slide 6: Transition for Profitable Growth
Transition for Profitable Growth • Investing in people – Restaffing for execution – Product development – Innovation • Investing in capital – Asian growth – Europe restructuring – New product launches – Global technology processes • Investing in future programs – Tooling expenditures increasing work
Slide 7: Transition for Profitable Growth
Transition for Profitable Growth Product Strategy • Focusing on Sealing & Trim, Fuel & Brake Delivery and Fluid Transfer Systems – Delivering innovation – Achieve #1 or #2 market leadership – Global product teams driving increased ROIC – Sell Thermal & Emissions business Optimizing Footprint • Serbi
Slide 8: Allen Campbell, Executive Vice President and Chief Financial Officer
Allen Campbell Executive Vice President and Chief Financial Officer 8
Slide 9: Track Record of Growing Sales
Track Record of Growing Sales $ USD Billions Exceeding global light vehicle production CAGR of 9.1% Note: CAGR includes non-consolidated JV revenue Numbers subject to rounding 9 9
Slide 10: Q4 and Full Year 2013 Revenue
Q4 and Full Year 2013 Revenue $ USD Millions Q4 2013 Full Year 2013 Q4 2012 -$697 Full Year 2012 $2,881 - Q4 2013 -$794 Full Year 2013 $3,091 - Note: Numbers subject to rounding 10
Slide 11: Non-Consolidated Joint Venture Revenue
Non-Consolidated Joint Venture Revenue $ million Joint Venture Partner Product Country Huayu-Cooper Sealing SAIC/HASCO Sealing China Nishikawa Cooper Nishikawa Rubber Sealing U.S. Nishikawa Tachaplalert Cooper Nishikawa Rubber Sealing Thailand Sujan CSF India Magnum ElastomersAVS India 11
Slide 12: 2013 Revenue by Customers and Product
2013 Revenue by Customers and Product $ USD Millions Revenue by Customers Revenue by Product 2013 Revenue$3,091 - Note: Numbers subject to rounding 12
Slide 13: Q4 and FY 2013 Performance
Q4 and FY 2013 Performance $ USD Millions, except EPS / % Fourth Quarter Full Year 2012 2013 2012 2013 $697.1 $794.2 Sales $2,880.9 $3,090.5 99.7 105.1 Gross Profit 438.9 472.7 14.3 % 13.2% % Margin 15.2% 15.3% 74.8 72.6 SA&E 281.3 293.4 (2.1) 14.6 Operating Profit (Loss) 103.3 142.1 (0.3%) 1.8% % M
Slide 14: North America and Europe Operating Challenges
North America and Europe Operating Challenges North America • North America Production Volume millions – Execution challenges related to ramp up of new technologies and product offerings in Sealing & Trim • Net $13M of excess nonrecurring costs in fourth quarter – Additional operating costs to meet
Slide 15: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation Twelve Months Ended Dec 31, $ USD Millions 2012 2013 Net income $ 102.8 $ 47.9 Income tax expense (benefit) (31.5) 45.6 Interest expense, net of interest income 44.8 54.9 Depreciation and amortization 122.7 111.1 EBITDA $ 238.8 $ 259.5 Restructuring, net of
Slide 16: Full Year 2013 Cash Flow
Full Year 2013 Cash Flow $ USD Millions Note: Numbers subject to rounding (a) Includes $30 million tooling expense 16
Slide 17: Strong Capital Structure and Liquidity
Strong Capital Structure and Liquidity Liquidity Debt Maturity Table $ USD Millions $ USD Millions Cash on Balance Sheet $184.4 ABL Revolver commitments (1) 150.0 Letters of Credit (36.7) $ 297.7 (1) Availability limited by borrowing base Pension Liability Key Financial Ratios • Substantially all US
Slide 18: 2014 Guidance
Key Assumptions: North American production 16.8 million 2014 Guidance European (including Russia) production 19.6 million Average full year exchange rate $1.28/Euro *G=Guidance Revenues Cash Taxes $ USD Millions $ USD Millions Capital Expenditures Cash Restructuring $ USD Millions $ USD Millions Ret
Slide 19: Summary
Summary • Focused on stabilizing North America and Europe businesses performance – Addressing launch and product complexity in Sealing & Trim business • Continue to make necessary infrastructure / capacity investments – Asia growth strategy – Serbia expansion • Evaluate partnerships and acquisition
Slide 20: GS Passion for Performance
GS PASSION FOR PERFORMANCE
Slide 21: Appendix
Appendix GS PASSION FOR PERFORMANCE
Slide 22: Net Leverage Ratio and Adj. EBITDA % Margin as of December 31, 2013
Net Leverage Ratio and Adj. EBITDA % Margin as of December 31, 2013 Twelve Months Three Months Ended Ended ($ USD Millions) Mar 31, Jun 30, Sep 30, Dec 31, 2013 2013 2013 2013 Dec 31, 2013 Net income (loss) $ 20.7 $ 27.4 $ 20.6 $ (20.8) $ 47.9 Income tax expense 7.9 12.2 4.5 21.0 45.6 Interest expen
Slide 23: EBITDA and Adjusted EBITDA – Twelve Months Ended December 31, 2012
EBITDA and Adjusted EBITDA – Twelve Months Ended December 31, 2012 ($ USD Millions) Twelve Months Three Months Ended Ended Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, 2012 2012 2012 2012 2012 Net income (loss) $ 23.8 $ 77.3 $ 11.6 $ (9.9) $ 102.8 Provision for income tax expense (benefit) 8.1 (46.2) 5.4
Slide 24: 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 addi
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