Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Deutsche Bank Global Auto Industry Conference 2015
23 slides from Cooper-standard's conference presentation, Jan 13, 2015
Slide 1: Deutsche Bank Global Auto Industry Conference
1 Deutsche Bank Global Auto Industry Conference January 13, 2015
Slide 2: Forward-Looking Statements
2 2 Forward-Looking Statements There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this presentation. Important factors that could cause our actual results to differ materially from the forward-lookin
Slide 3: Cooper Standard Overview
Jeff Edwards Chairman and Chief Executive Officer Cooper Standard Overview
Slide 4: Cooper Standard
4 4 Cooper Standard (NYSE: CPS) 2014 Revenue: ≈ $3.2+ billion1 (52% NA, 35% Europe, 8% Asia, 5% SA) $400+ million nonconsolidated JV Automotive Supplier Rank2: 67 Globally 41 North America 49 Europe Global Footprint: 94 facilities 10 technical centers 20 countries Employees: 27,000 + employees 1 Est
Slide 5: Core Product Lines
5 5 Core Products Lines Fuel & Brake Delivery Systems #2 Globally1 Fluid Transfer Systems North American Leader1 Anti-Vibration Systems North American Leader1 52% 20% 14% 8% 2014 Sales by Product2 *6% other includes non-automotive and divested thermal & emissions products 1 Booz and Company Market R
Slide 6: Relentless Focus on the Customer
Relentless Focus on the Customer Superior Products and Innovation Advantaged Global Footprint & World-Class Operations High Performing Engaged Workforce Drive for Profitable Growth
Slide 7: Drive for Profitable Growth
7 7 Drive for Profitable Growth
Slide 8: Revenue 2012 - 2017
8 8 Revenue 2012 - 2017 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 2012 2013 2014 E 2015 F 2016 F 2017 F Revenue Poised to Outpace Industry Key Growth Drivers • Positioned to outpace competition on global platform wins • Significant China and North America market share gains • New strategic p
Slide 9: Products Well Represented on Key Platforms
9 9 Products Well Represented on Key Platforms Denotes Global Platform Cooper Standard Products are Consistently on the Top Selling Global Platforms 1 Sales adjusted for cross platform products 2 This particular Volvo model is not global but the platform was designed as part of Ford’s global platfor
Slide 10: Content Per Vehicle on Top Five Platforms
10 10 Content Per Vehicle on Top Five Platforms 1 Sales adjusted for cross platform products 2 This particular Volvo model is not global but the platform was designed as part of Ford’s global platform 3 Approximate Vehicle Content Per Vehicle3 Sealing F&B FTS AVS Ford F-150 ≈ $440 GM Silverado / Sie
Slide 11: World-Class Operations
11 11 World-Class Operations • Launched world-class operations initiative to drive improvement in ROIC: – Advantaged global footprint – Implemented best business practice tool – Standardization of process, equipment and product designs – Global supply chain structure to effectively leverage scale –
Slide 12: CPS Benchmark World-Class Operations
12 12 CPS Benchmark World-Class Operations Material Variable Overhead Fixed Overhead Total Labor Hours / Equivalent Unit CPS Benchmark Opportunity for Improvement CPS Benchmark CPS Benchmark
Slide 13: Restoring Competitive Advantage in Europe
13 2 2 Restoring Competitive Advantage in Europe • New regional management in place to accelerate performance • Vertical integration • Addressing commercial gaps • Footprint optimization • Revised restructuring plan • Acquired 100 percent interest in Cooper Standard France JV • Re-entered Spain mark
Slide 14: Accelerating Growth in China
14 14 Changchun Chongqing Huai-an Jingzhou Kunshan Shanghai Wuhu Guangzhou Shenyang Fengxian Accelerating Growth in China Huayu-Cooper Standard JV* Cooper Standard / INOAC JV* • Majority-owned JV in Asia to accelerate fluid transfer systems growth • Provides additional growth opportunities with Japa
Slide 15: Accelerating Growth in India
15 15 Accelerating Growth in India Bawal Chennai Sahibabad Manesar Mumbai Pune 2 Sanand • Strengthened regional management team • Launching new sealing and fuel & brake facilities to expand market leading positions for both product lines • Expanding technical capabilities in Pune • Expanded relation
Slide 16: Bringing Innovations to Market
16 16 Technology Benefits Status Ultra Galfan Coating Increases product life for fuel and brake lines In production Quick Connect with Sensor Improves connections with sensor capability Booked orders ArmorHose™ Eliminates requirement for protective sleeves Booked orders Fortrex™ Material revolutioni
Slide 17: Cooper Standard Overview
Cooper Standard Overview Allen Campbell Executive Vice President and Chief Financial Officer
Slide 18: 2014 In Review
18 18 2014 In Review Operational Improvements • Green on major platform launches in North America • Continuing margin improvement in Europe • Improving sealing profitability Headwinds • Foreign exchange volatility • Soft production volume in Europe • Challenging economic environment in Brazil • New
Slide 19: Strategic Merger and Acquisitions Philosophy
19 19 Strategic Merger and Acquisitions Philosophy Criteria Recent Activities • Create technology advantage • Enhance core product lines • Addressing white space (products / customers) • Customer driven • Acquisitions and Partnerships: Jyco Sealing Huayu – Cooper Sealing1 INOAC JV Sujan JV2
Slide 20: Key Joint Ventures
20 20 Key Joint Ventures Joint Venture Ownership Structure Huayu- Cooper Sealing MAPS India Sujan JV CS INOAC JV CS France Nishikawa Product Country Sealing Sealing AVS FTS FTS Sealing, AVS, FTS Sealing Agreed to acquire 95% interest1 Agreed to acquire 100% interest2 50% ownership, no change Agreed
Slide 21: 2015 Guidance
21 21 2015 Guidance • Revenue of $3.4 - $3.5 billion • Year-over-year margin improvement • Key assumptions: North America production 17.4 million Europe production 20.3 million Average full year exchange rate $1.25/Euro Further guidance during Q4 2014 Earnings Call
Slide 22: Q & A
22 22 Q & A CPS Profitable Growth Drivers
Slide 23: Non-GAAP Financial Measures
23 23 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 i
Cooper-Standard Holdings — Deutsche Bank Global Auto Industry Conference 2015 on 6ix