Slide 1: Full-Year and Q4 2022 Results
Full-Year and Q4 2022 Results March 2, 2023 Exhibit 99.1
Slide 2: Forward-Looking Statements
2 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 ma
Slide 3: Leadership Announcement: Jim Zizelman appointed President and CEO
3 Leadership Announcement Jim Zizelman appointed President and Chief Executive Officer ▸ Jim Zizelman was appointed President and Chief Executive Officer and member of the Stoneridge Board of Directors, effective January 30th ▸ Jim joined Stoneridge as President of the Control Devices division in Ap
Slide 4: Leadership Announcement: Rajaey Kased appointed President of Control Devices
4 Leadership Announcement Rajaey Kased appointed President of Control Devices ▸ Rajaey Kased was appointed as President of the Control Devices division effective January 30th ▸ Most recently, Rajaey was the Vice President of Sales and Product Line Management for the Control Devices division. During
Slide 5: Overview of Achievements
5 Overview of Achievements Q4 2022 Key Accomplishments and 2023 Expectations Q4 2022 Financial Performance 2022 Financial Performance and 2023 Guidance 2022 Reported 2022 Adjusted 2023 Guidance $899.9 million $841.5 million $960.0 million – $990.0 million (+$133.5m) $174.9 million 19.4% $174.9 milli
Slide 6: 2022 Quarterly Comparison and 2023 Guidance Financial Summary
6 2022 Quarterly Comparison 2021* vs. 2022 vs. 2023 Guidance Adjusted Sales Adjusted Gross Profit Adjusted Operating Income Adjusted EBITDA** Expecting revenue growth to significantly outperform our underlying markets in 2023 Expecting EBITDA margin expansion of ~210 bps in 2023 $’s in USD Millions
Slide 7: MirrorEye Update
7 MirrorEye Update MirrorEye investment starting to generate meaningful performance in 2023 as OEM outlooks continue to improve and retrofit applications continue to expand OEM Update ▸ First OEM program demand continues to be strong – current takes rates at ~40% ▸ First OEM program launching in Nor
Slide 8: 5-year Backlog growth of 6% from prior year
8 ▸ 5-year Backlog growth of 6% from prior year • Increased take-rate for first MirrorEye OEM program in Europe from ~16% to ~40% based on current production • Increased take-rate for next MirrorEye launch in Europe from ~25% to ~45% based on current customer forecasts • Continued ramp-up and expans
Slide 9: Long-term Targets
9 Long-term Targets Targeting $1.3 to $1.5 billion in revenue and a 11.5% - 13.5% EBITDA margin by 2027 5-Year CAGR of ~9.5% expected to outpace underlying market growth by ~2.7x Long-Term Revenue Target Long-Term EBITDA Target ▸ Contribution margin on incremental revenue expected to be 25% - 30% ▸
Slide 10: 2023 Key to Success – Stoneridge Strategy
10 2023 Key to Success – Stoneridge Strategy ▸ Grow core product portfolio aligned with industry trends Control Devices ▸ Drive advanced technology development ▸ Execute on program launches ▸ Expand MirrorEye® opportunities Electronics Stoneridge Brazil ▸ Grow local OEM business ▸ Expand cost-effici
Slide 11: Summary
11 Summary 2022 Summary Consistent revenue growth and EBITDA margin expansion throughout the year despite challenging macroeconomic conditions Successfully passed through a significant portion of incremental material costs – cost recovery actions expected to continue as material costs and manufa
Slide 12: Financial Update
Financial Update Ssereice
Slide 13: 2022 Fourth Quarter Results
13 2022 Fourth Quarter Results Adjusted sales of $225.2 million, an increase of 5.2% over Q3 2022 • Control Devices sales of $85.9 million, a decrease of 3.9% from Q3 2022 • Electronics adjusted sales of $134.8 million, an increase of 15.0% over Q3 2022 • Stoneridge Brazil sales of $13.1 million, a
Slide 14: Q4 2022 Performance Drivers vs. Prior Expectations
14 Q4 2022 Performance Drivers vs. Prior Expectations ▸ Reduced volume vs. prior expectations drove revenue underperformance of approximately $14 million based on prior midpoint guidance • China (COVID related demand reductions) • North American Passenger Car (Customer production reductions) • Off-H
Slide 15: Control Devices Financial Performance
15 Control Devices Financial Performance Expecting sales growth to outperform weighted average end-markets in 2023 Focus on strong execution and offsetting continued material and labor cost inflation Control Devices 2023 Expectations ▸ Expecting program ramp-ups and exposure to high-demand vehicle p
Slide 16: Electronics Financial Performance
16 Electronics Financial Performance Electronics 2023 Expectations ▸ Strong revenue growth expected to drive continued margin expansion in 2023 ▸ Execute on new program launches and ramp-up of recently launched programs ▸ Focus on price negotiations to offset continued material and labor cost inflat
Slide 17: Stoneridge Brazil Financial Performance
17 Stoneridge Brazil Financial Performance OEM business continues to expand as engineering footprint aligns with global strategy Stoneridge Brazil 2023 Expectations Revenue and operating margin expected to remain approximately flat in 2023 New business award for infotainment systems to one of the OE
Slide 18: Net Debt and Leverage Ratio
18 Targeted leverage ratio of less than 2.5x Net Debt / EBITDA Q4 2022 Summary and 2023 Expectations ▸ Net debt decreased by approximately $21.7 million in Q4 ▸ Entered Amendment No. 4 to Credit Facility on February 28, 2023 ▸ Q1 2023 leverage ratio requirement of 4.75x ▸ Q2 2023 leverage ratio requ
Slide 19: 2023 Sales Guidance
19 700 750 800 850 900 950 1,000 2022 Adjusted Sales IHS Production Forecast Stoneridge Specific Growth and Price Recoveries 2023 Sales Guidance 2023 Sales Guidance ▸ Midpoint revenue guidance implies ~16% revenue growth vs. weighted average end-market growth of ~1.2% in 2023 (~13x market growth) ▸
Slide 20: 2023 Adjusted EPS Guidance
20 2023 Adjusted EPS Guidance 2023 Adjusted EPS guidance of approximately break-even based on strong contribution margins on revenue growth and operating improvement partially offset by incremental labor costs and interest ($0.10) - $0.10 ▸ Expecting contribution margin aligned with historical avera
Slide 21: 2023 Outlook
21 2023 Outlook ▸ Control Devices – Stable sales in 2023 as incremental revenue from program ramp-ups were offset by supply chain volatility and material availability impacting production ▸ Electronics – Continued strong demand and ramp-up in recently launched programs led to sales growth of 15% in
Slide 22: Appendix
Appendix Ssereice
Slide 23: Adjusted Sales by End Market and 2023 Vehicle Production Outlook
23 Weighted OEM end-markets expected to increase 1.2% in 2023 *Regional adjusted sales based on manufactured location and estimated end-market exposure **Adjusted sales direct to customers. Total customer exposure may differ due to sales to suppliers that sell to end customers ***Excluding Stoneridg
Slide 24: Primary Stoneridge Foreign Currency Sensitivities
24 Primary Stoneridge Foreign Currency Sensitivities SRI Currency Exposures 2023 Assumption Rates If 5% Weaker vs. USD Net Annual EBITDA * Transaction Impact Translation Impact Euro 1.00 Mexican Peso 19.47 N/A Chinese Yuan 6.90 Swedish Krona 10.80 Brazilian Real 5.29 *Before impact of hedging progra
Slide 25: Balance Sheet
Balance Sheet CONSOLIDATED BALANCE SHEETS December 31, (In thousands) 2022 2021 ASSETS Current assets: ‘Cash and cash equivalents S 54798 S (85,547 Accounts recewvable, less reserves of $962 and $1,443, respectively 158,165 150,388 Inventories, net 152,580 138,115 Prepaid expenses and other current
Slide 26: Consolidated Statement of Operations
26 Consolidated Statement of Operations
Slide 27: Consolidated Statement of Cash Flows
27 Consolidated Statement of Cash Flows CONSOLIDATED STATEMENTS OF CASH FLOWS Year ended December 31, (in thousands) 2022 2021 2020 OPERATING ACTIVITIES: Net (loss) income $ (14,056) $ 3,406 $ (7,950) Adjustments to reconcile net income to net cash provided by (used for) operating activities: Deprec
Slide 28: Consolidated Statement of Cash Flows (continued)
28 Consolidated Statement of Cash Flows (continued) FINANCING ACTIVITIES: Revolving credit facility borrowings 21,562 91,913 71,500 Revolving credit facility payments (18,000) (64,000) (61,500) Proceeds from issuance of debt 38,940 45,753 41,104 Repayments of debt (42,732) (48,125) (37,823) Earn-out
Slide 29: Segment Reporting
29 Segment Reporting SEGMENT REPORTING December 31, 2022 2021 2020 Net Sales: Control Devices $ 342,596 $ 355,775 $ 342,576 Inter-segment sales 2,719 3,502 5,475 Control Devices net sales 345,315 359,276 348,051 Electronics 505,097 357,910 257,767 Inter-segment sales 28,709 26,192 24,027 Electronics
Slide 30: Reconciliations to US GAAP
30 Reconciliations to US GAAP
Slide 31: Reconciliations to US GAAP
31 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 measures in the appendix of thi
Slide 32: Reconciliations to US GAAP
32 Reconciliations to US GAAP (USD in millions) Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Sales 193.8$ 191.3$ 181.7$ 203.7$ 770.5$ 221.1$ 220.9$ 226.8$ 231.2$ 899.9$ Less: Pre-Tax Sale of Soot Sensor Product Inventory (1.0) - - (1.3) (2.3) - - - - - Less: Sales from S
Slide 33: Reconciliation of Adjusted EBITDA
33 Reconciliations to US GAAP Reconciliation of Adjusted EBITDA (USD in millions) Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Income (Loss) Before Tax 0.5$ 25.6$ (9.8)$ (3.9)$ 12.4$ (6.2)$ (6.9)$ 1.7$ 0.7$ (10.7)$ Interest expense, net 1.8 1.9 1.4 0.1 5.2 1.8 1.2 1.8 2.
Slide 34: Reconciliation of Control Devices Adjusted Sales
34 Reconciliations to US GAAP Reconciliation of Control Devices Adjusted Sales (USD in millions) Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Control Devices Sales 101.6$ 86.7$ 88.0$ 82.9$ 359.3$ 85.0$ 85.0$ 89.4$ 85.9$ 345.3$ Less: Pre-Tax Sale of Soot Sensor Product In
Slide 35: Reconciliation of Electronics Adjusted Sales
35 Reconciliations to US GAAP Reconciliation of Electronics Adjusted Sales (USD in millions) Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Electronics Sales 88.7$ 97.3$ 83.9$ 114.1$ 384.1$ 132.7$ 130.4$ 130.0$ 140.7$ 533.8$ Less: Sales from Spot Purchase Recoveries - - -
Slide 36: Reconciliation of Adjusted Sales Excluding Disposed Soot Sensor Business
36 Reconciliations to US GAAP Reconciliation of Adjusted Sales Excluding Disposed Soot Sensor Business (USD in millions) 2021 2022 Adjusted Sales 750.5$ 841.5$ Less: Pre-Tax Sales from Disposed Soot Sensor Business (10.3) - Adjusted Sales Excluding Disposed Soot Sensor Business 740.2$ 841.5$ Reconci
Slide 37: Reconciliation of 2022 Adjusted EPS
37 Reconciliations to US GAAP (USD in millions) 2022 2022 EPS Net Loss (14.1)$ (0.52)$ Add: After-Tax Write-off of Deferred Financing Fees 0.4 0.01 Add: After-Tax Brazilian Indirect Tax Credit (0.6) (0.02) Add: After-Tax Business Realignment Costs 0.2 0.01 Adjusted Net Loss (14.1)$ (0.52)$ Reconcili
Slide 38: Reconciliation of 2022 Adjusted Tax Rate
38 Reconciliations to US GAAP (USD in millions) 2022 Tax Rate Loss Before Tax (10.7)$ Add: Pre-Tax Write-off of Deferred Financing Fees 0.4 Add: Pre-Tax Brazilian Indirect Tax Credit (0.8) Add: Pre-Tax Business Realignment Costs 0.3 Adjusted Loss Before Tax (10.8)$ Income Tax Expense 3.4 -31.4% Add:
Slide 39: Adjusted EBITDA Excluding Prior Quarter Correction
39 Reconciliations to US GAAP Reconciliation of Adjusted EBITDA Excluding Prior Quarter Correction (USD in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022 Adjusted EBITDA 4.3$ 2.3$ 12.1$ 11.1$ 29.8$ Add: Reclassified non-operating net gain related to net investment hedge - (3.7) - 3.7 - Adjusted EBIT