Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — FY2011 Earnings Presentation
29 slides from Cooper-standard's earnings presentation, Mar 14, 2012
Slide 1: Cooper Standard 4Q & Full Year 2011
Cooper Standard 4Q & Full Year 2011 Fourth Quarter and Full Year Earnings Call March 14, 2012 Exhibit 99.1
Slide 2: Introduction & Agenda
Introduction & Agenda • Introduction: Glenn Dong, Treasurer • Executive Overview: Jim McElya, CEO • Business Highlights: Keith Stephenson, COO • Financial Review & Guidance: Allen Campbell, CFO • Questions & Answers
Slide 3: Safe Harbor
Safe Harbor This presentation includes forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act, reflecting management’s current analysis and expectations, based on what are believed to be reasonable assumptions. The words “estimates,” “expects,” “anticipates,”
Slide 4: Executive Overview 4Q & Full Year 2011
Jim McElya Chairman & CEO Executive Overview 4Q & Full Year 2011
Slide 5: Executive Overview: 2011 & Q4 Review
Executive Overview: 2011 & Q4 Review • Full Year 2011: • Sales up 18.2% • Adjusted EBITDA margin of 11.4% • • * Based on currently estimated production volumes for the future periods pertaining to the awards; includes new, replacement and conquest business. Net new business awards of $403 million* Q
Slide 6: Executive Overview: 2011 Priorities and Actions
Executive Overview 2011 Priorities Actions Successfully launch new technologies Launched pumps with Renault-Nissan and PSA Customer awards on: • Obstacle Detection Systems (ODS) • Wastegate actuators • Throttle valves • Next generation fuel rails Aggressively pursue business on global platforms Expa
Slide 7: Executive Overview: Industry Trends
Executive Overview: Industry Trends • Production volumes to grow • Stress of excess capacity on OEMs and supply base in Europe • Emphasis on fuel economy and alternative powertrains • Impact of higher fuel prices
Slide 8: 2012 Priorities
2012 Priorities • Focus on top-line growth • Expand advanced technology in fluid business • Leverage customer relationships and footprint to win global platform awards • Additional expansion into emerging markets • Improve our European cost structure • Manage raw material costs
Slide 9: Business Highlights
Business Highlights 4Q & Full Year 2011 Keith Stephenson Chief Operating Officer
Slide 10: Business Highlights
Business Highlights 4 th Quarter • Solid revenue growth including new joint venture relationships • Key program launches and continued growth of global platforms • Cooper Standard France joint venture increases opportunities for global business wins • On-going global footprint evolution • Continued
Slide 11: Sales By Region & Product Groups
Sales By Region & Product Groups *Sales by Region Including Joint Venture Sales *Sales by Product Including Joint Venture Sales Consolidated Sales by Region Consolidated Sales by Product *Includes JV sales with Hasco (SAIC), Sujan, Nisco N.A. and Nishikawa Thailand
Slide 12: Vehicle Launches
Vehicle Launches 4 th Quarter 2011 – Fiat – Panda (Europe) Sealing – Fiat – Palio (South America) Sealing, Trim – Ford – Lincoln MKX (North America) Fuel & Brake, Thermal Oil Cooling – GM – Chevrolet Cruze (North America & Asia) Sealing, Fuel & Brake – GM – Chevrolet Malibu (Asia) Sealing, Fuel & Br
Slide 13: CS France Overview
CS France Plants Technology Management SPBT Shares Plants Management Cash Funding CS France Overview • Completed in Q2 2011 • Strategic Objectives – Extend global sealing leadership position – Expand hose and AVS capabilities – Strengthen relationship with global OEMs – Consolidate supplier base whi
Slide 14: Global Footprint
Americas Europe Asia Pacific Global Footprint Actions Recent Footprint Expansion: • • • • • Joint Venture Operation Manufacturing Technical Center Sales / Administration Craiova, Romania Czestochowa, Poland Mumbai, India Nakhonratchasima, Thailand Sao Paulo, Brazil
Slide 15: Continued Operational Execution
Continued Operational Execution • Flexing our cost structure consistent with regional market conditions • Achieved significant lean savings despite raw material challenges • Integrating recent acquisitions • Numerous customer awards for quality and service
Slide 16: Financial Overview
Financial Overview 4Q & Full Year 2011 Allen Campbell Chief Financial Officer
Slide 17: Q4 and Full Year 2011 Performance
Q4 and Full Year 2011 Performance $ Millions Q4 2010 Q4 2011 Net Sales $603.7 $695.7 Operating Profit $ 25.7 $ 22.9 Gross Profit $ 96.8 $ 97.6 FY 2010 FY 2011 $2,414.1 $2,853.5 $ 142.2 $ 125.2 $ 409.6 $ 450.6 Net Income $ 14.8 $ 23.2 $ 320.3 $ 102.8 Adjusted EBITDA $ 66.6 $ 276.5 $ 324.1 $ 61.7 % Ma
Slide 18: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation $ USD Millions Net income $ 320.3 $ 102.8 Provision for income tax expense 45.0 EBITDA $ 537.2 $ 288.2 Restructuring 6.4 32.3 Adjusted EBITDA $ 276.5 $ 324.1 20.8 12 Months Ended December 31st Net Interest expense 69.5 40.5 Depreciation and amortization 102.
Slide 19: Base Business vs Joint Venture Financial Summary
Base Business vs Joint Venture Financial Summary Adjusted EBITDA margin 12.0% 7.3% 11.4% Parent & Wholly Owned Joint $ USD Millions Subsidiaries Ventures Total Sales $2,458.8 $394.7 $2,853.5 Gross Profit $417.2 $33.4 $450.6 Restructuring $11.5 $40.7 $52.2 Equity Earnings $0.8 $4.6 $5.4 Other Income
Slide 20: Cooper Standard Sales
Cooper Standard Sales - Total $2,853.5 Total $3,158.9 *Includes JV sales with Hasco (SAIC), Sujan, Nisco N.A. and Nishikawa Thailand Base $2,695.6 Acquisitions $157.9 Consolidated $2,853.5 Unconsolidated JVs $305.4
Slide 21: Cash Flow 4Q 2011
Cash Flow 4Q 2011 Cash Balance as of December 31, 2010 294.5 $ Cash generated 67.3 Cash Balance as of December 31, 2011 361.7 $ ($ in Millions) Q4 - YTD - Cash from business $ 56.2 $ 202.4 Pension funding - US (3.0) (34.4) Changes in operating assets & liabilities 73.4 4.3 Cash from operations $ 126
Slide 22: Liquidity as of December 31, 2011
Liquidity as of December 31, 2011 Cash on Balance Sheet $361.7M ABL Revolver 125.0M Letters of Credit (29.8)M Total Liquidity $456.9 M Flexible capital structure allows for future growth opportunities • 26% increase in cash from the prior quarter • ABL Revolver undrawn • Net leverage = $127 million
Slide 23: 2012 Guidance
2012 Guidance* • Sales: $2.85 billion - $2.95 billion • Capital expenditures: $110 million - $120 million • Cash restructuring: $45 million - $55 million • Cash taxes: $25 million - $30 million * Guidance is based on North American production of 14.4 million, and Europe (including Russia) production
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
Slide 25: Questions & Answers
Questions & Answers
Slide 26: Summary
Summary • Continue expansion in Asia & South America • Aggressively pursue business on global platforms • Leverage global alliance with Nishikawa • Successfully launch new technologies • Manage raw material costs and supply Ready to Thrive in the New Competitive Landscape and Drive Shareholder Value
Slide 27: Cooper Standard
G CooperStandard
Slide 28: Q4 2011 Adjusted EBITDA
Q4 2011 Adjusted EBITDA (1) Includes cash and noncash. (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. (4) Severance costs associated with the right sizing of German facilities.
Slide 29: Base Business vs Joint Venture Financial: Adjusted EBITDA Full Year 2011
Base Business vs Joint Venture Financial Adjusted EBITDA – Full Year 2011 Parent & Wholly Owned Joint $ USD Millions Subsidiaries Ventures Total Net Income 102.8 $ - $ 102.8 $ Provision for income tax expense 18.7 2.1 20.8 Net interest expense 39.4 1.1 40.5 Depreciation and amoritization 108.8 15.3
Cooper-Standard Holdings — FY2011 Earnings Presentation on 6ix