Slide 1: Q2 2023 Results
Q2 2023 Results August 3, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 that may
Slide 3: Overview of Achievements
Overview of Achievements Q2 adjusted sales growth of $30.2 million, or 13.0%, vs. Q1 2023 (5x+ weighted-average end market growth) Q2 margin performance significantly improved driven by strong sales growth and finalized price increases with customers Adjusted gross margin of 23.2% expanded ~47
Slide 4: Financial Summary
Financial Summary $’s in USD Millions Q1 2023 vs. Q2 2023 Q2 Financial Highlights 280 ▸ Adjusted sales growth of 13.0% vs. Q1 2023 $262.4 260 primarily due to continued strong customer 240 $232.2 demand as well as finalized price increases Adjusted Sales with customers 220 200 +13.0% Q1 2023 Q2 2023
Slide 5: Business Update
Business Update Control Devices - New Business Award MirrorEye OEM Update Front Axle Disconnect Actuator ▸ Extension and next generation program awarded with major ▸ MirrorEye program launched on Kenworth T680 in April 2023 OEM customer and continues to ramp-up ▸ Demonstrates versatility between veh
Slide 6: Summary
Summary Summary Second quarter revenue performance driven primarily by continued strength in our automotive and commercial vehicle end markets and finalized price negotiations Second quarter operating margin performance driven by incremental pricing, including the retroactive pricing impact, con
Slide 7: Financial Update
Financial Update Ssereiee
Slide 8: 2nd Quarter 2023 Financial Summary
2nd Quarter 2023 Financial Summary 2nd Quarter 2023 Financial Results Adjusted sales of $262.4 million, an increase of 13.0% over Q1 2023 • Control Devices sales of $93.1 million, an increase of 7.4% over Q1 2023 • Electronics adjusted sales of $163.9 million, an increase of 16.6% over Q1 2023 • Sto
Slide 9: Control Devices Financial Performance
Control Devices Financial Performance $’s in USD Millions Control Devices Q2 Summary Q1 2023 vs. Q2 2023 Sales increased by 7.4% vs. Q1 2023 $95.0 $93.1 Higher sales in the North America passenger vehicle end market and China end markets driven $90.0 $86.7 by production stability relative to Q1 Sale
Slide 10: Electronics Financial Performance
Electronics Financial Performance $’s in USD Millions Q1 2023 vs. Q2 2023 Electronics Q2 Summary Adjusted sales increased by 16.6% vs. Q1 2023 Primarily due to continued strong commercial $163.9 vehicle customer demand and incremental pricing $140.5 Adjusted recognized during the quarter Sales Q2 ad
Slide 11: Stoneridge Brazil Financial Performance
Stoneridge Brazil Financial Performance $’s $’sininUSD USDMillions Millions Q1 2023 vs. Q2 2023 Stoneridge Brazil Q2 Summary Excluding the favorable impact of foreign currency of $0.7 million, Q2 sales were approximately in line with Q1 2023 $14.9 Higher sales in aftermarket products offset lower OE
Slide 12: Capital Structure Update
Capital Structure Update $’s in USD Millions Adjusted Cash (Compliance) Adjusted Net Debt (Compliance) 200.0 180.0 160.0 140.0 120.0 100.0 $147.7 $133.6 $148.9 $146.3 80.0 60.0 40.0 20.0 $37.3 $24.3 $22.5 $24.2 - Q3 2022 Q4 2022 Q1 2023 Q2 2023 Targeted Leverage Ratio Leverage Ratio Waiver 4.75x 4.7
Slide 13: Summary
Summary 2023 Q2 Summary ▸ Control Devices – Q2 sales growth primarily due to stable customer demand and content on high-demand vehicles, as well as production normalization in our China end markets. Operating performance improved primarily due to lower material costs driven by favorable product mix
Slide 14: Appendix
Appendix Ssereiee
Slide 15: Income Statement
Income Statement CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended Six months ended June 30, June 30, (in thousands, except per share data) 2023 2022 2023 2022 Net sales $ 266,814 $ 220,936 $ 508,139 $ 441,994 Costs and expenses: Cost of goods sold 206,326 182,372 404,849 361,987 Se
Slide 16: Balance Sheet
Balance Sheet CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, (in thousands) 2023 2022 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 34,705 $ 54,798 Accounts receivable, less reserves of $1,132 and $962, respectively 185,296 158,155 Inventories, net 175,305 152,580 Prepa
Slide 17: Statement of Cash Flows
Statement of Cash Flows CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended June 30, (in thousands) 2023 2022 OPERATING ACTIVITIES: Net loss $ (10,378) $ (15,014) Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: Depreciation 13,161 13,6
Slide 18: Statement of Cash Flows (Cont.)
Statement of Cash Flows (Cont.) INVESTING ACTIVITIES: Capital expenditures, including intangibles (18,025) (14,890) Proceeds from sale of fixed assets 1,729 140 Proceeds from settlement of net investment hedge — 3,820 Investment in venture capital fund, net — (450) Net cash used for investing activi
Slide 19: Segment Financial Information
Segment Financial Information NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except per share data, unless otherwise stated) A summary of financial information by reportable segment is as follows: Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Net Sale
Slide 20: Reconciliations to US GAAP
Reconciliations to US GAAP 20
Slide 21: Reconciliations to US GAAP
Reconciliations to US GAAP 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 financial measure
Slide 22: Reconciliation of Q2 2023 Adjusted EPS
Reconciliations to US GAAP Reconciliation of Q2 2023 Adjusted EPS (USD in millions) Q2 2023 Q2 2023 EPS Net Loss $ (3.0) $ (0.11) Add: After-Tax Business Realignment Costs 1.6 0.06 Adjusted Net Loss $ (1.4) $ (0.05) Reconciliation of Q1 2023 Adjusted EPS (USD in millions) Q1 2023 Q1 2023 EPS Net Los
Slide 23: Reconciliation of Adjusted Gross Profit and Operating Loss
Reconciliations to US GAAP Reconciliation of Adjusted Gross Profit (USD in millions) Q1 2023 Q2 2023 Gross Profit $ 42.8 $ 60.5 Add: Pre-Tax Business Realignment Costs 0.2 0.5 Adjusted Gross Profit $ 43.0 $ 60.9 Reconciliation of Adjusted Operating Loss (USD in millions) Q1 2023 Q2 2023 Operating Lo
Slide 24: Reconciliation of Adjusted EBITDA
Reconciliations to US GAAP Reconciliation of Adjusted EBITDA (USD in millions) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Income (Loss) Before Tax $ (6.9) $ 1.7 $ 0.7 $ (8.1) $ (1.5) Interest expense, net 1.2 1.8 2.2 2.7 3.1 Depreciation and amortization 8.5 8.3 8.2 8.3 8.4 EBITDA $ 2.8 $ 11.8 $ 11.1 $
Slide 25: Reconciliation of Q2 2023 Adjusted Tax Rate
Reconciliations to US GAAP Reconciliation of Q2 2023 Adjusted Tax Rate (USD in millions) Q2 2023 Tax Rate Loss Before Tax $ (1.5) Add: Pre-Tax Business Realignment Costs 1.9 Adjusted Income Before Tax $ 0.4 Income Tax Expense 1.5 -98.8% Add: Tax Impact from Pre-Tax Adjustments 0.4 Adjusted Income Ta
Slide 26: Reconciliation of Segment Adjusted Operating Income
Reconciliations to US GAAP Reconciliation of Control Devices Adjusted Operating Income (USD in millions) Q1 2023 Q2 2023 Control Devices Operating Income $ 2.1 $ 5.1 Less: Pre-Tax Gain on Disposal of Fixed Assets (0.8) - Add: Pre-Tax Environmental Remediation Costs 0.1 - Add: Pre-Tax Business Realig
Slide 27: Reconciliation of Adjusted Sales
Reconciliations to US GAAP Reconciliation of Adjusted Sales (USD in millions) Q1 2023 Q2 2023 Sales $ 241.3 $ 266.8 Less: Sales from Spot Purchase Recoveries (9.1) (4.4) Adjusted Sales $ 232.2 $ 262.4 Reconciliation of Electronics Adjusted Sales (USD in millions) Q1 2023 Q2 2023 Electronics Sales $
Slide 28: Reconciliation of Adjusted EBITDA for Compliance Calculation
Reconciliations to US GAAP Reconciliation of Adjusted EBITDA for Compliance Calculation (USD in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Income (Loss) Before Tax $ (6.2) $ (6.9) $ 1.7 $ 0.7 $ (8.1) $ (1.5) Interest Expense, net 1.8 1.2 1.8 2.2 2.7 3.1 Depreciation and Amortization 8