Slide 1: Full-Year & Q4 2023 Results
Full-Year & Q4 2023 Results February 29, 2024 stoneridge.com © 2024
Slide 2: Non-GAAP Financial Measures
Full-Year & Q4 2023 Results Non-GAAP Financial Measures Q4 Q4 Full-Year Full-Year Reported Adjusted Reported Adjusted This presentation contains information about the Company’s financial results that is not presented in accordance with accounting principles generally accepted in the United States (“
Slide 3: Forward-Looking Statements
Full-Year & Q4 2023 Results 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.
Slide 4: Overview of Achievements
Full-Year & Q4 2023 Results Overview of 5-Year Long-term Revenue Target Achievements $1.35B – $1.55B By 2028 • Announced Volvo MirrorEye OEM programs launching in Europe mid-year 2024 ~10% CAGR Growth** and in North America in early 2025 • Announced 5-Year extension of FMCSA exemption for MirrorEye
Slide 5: Financial Summary
Full-Year & Q4 2023 Results Full-year 2022 vs. 2023 Financial Summary $961.2 $841.5 Adjusted Sales Full-year adjusted revenue growth of 14.2% +14.2% FY 2022 FY 2023 Adjusted EBITDA increased by $18.3 million and $202.1 EBITDA margin expanded by 150 bps Adjusted $174.9 Gross 20.8% 21.0% Full-Year 202
Slide 6: MirrorEye Updates
Full-Year & Q4 2023 Results MirrorEye ® Updates MirrorEye sales expected to be ~$100 million in 2024 vs. $54 million in 2023 OEM Updates Retrofit Updates • Announced our next MirrorEye OEM programs will be launching with Volvo • Received FMCSA exemption renewal for an additional 5 years for retrofit
Slide 7: Backlog Awarded Business 2024-2028
Full-Year & Q4 2023 Results Backlog Awarded Business 2024-2028 5-year backlog remains strong Backlog 2022 vs. 2023 Backlog Drivers $’s in USD Millions • Stoneridge Electronics backlog grew by ~5% vs. prior year $3,596M $3,526M • Total 2025-2027 backlog increased by ~4% vs. prior year • Large busines
Slide 8: Long-Term Targets
Full-Year & Q4 2023 Results Long-Term Long-Term Revenue Targets $1.35B - $1.55B Targets ~$1.3B - $1.5B $990M - $1,010M Our long-term strategy is driving sustainable long-term growth and margin expansion ~10% CAGR* • Maintaining previously provided 2027 long-term targets 2024 Guidance 2027 Previous 2
Slide 9: 2024 Priorities to Drive Shareholder Value
Full-Year & Q4 2023 Results 2024 Priorities to Drive Shareholder Value Driving sustainable long-term growth and margin expansion Invest capital (organic 2-3x Growth in or inorganic) to drive underlying markets growth Key Priorities* • 2-3x Market Growth – Focused on leveraging drivetrain agnostic te
Slide 10: Summary
Full-Year & Q4 2023 Results Summary 2023 Summary Driving Long-Term Shareholder Value • Strong revenue growth and earnings expansion versus prior year • Focused on continuing to accelerate MirrorEye momentum in both • Gross margin improving as price increases and manufacturing the OEM and aftermarket
Slide 11: Financial Update
Financial Update stoneridge.com © 2024
Slide 12: 2023 Financial Highlights
Full-Year & Q4 2023 Results 2023 Financial Highlights Q4 Q4 Full-Year Full-Year Reported Adjusted Reported Adjusted Q4 adjusted EPS performance in line with previous expectations $229.5 million $229.4 million $975.8 million $961.2 million Sales Q4 Highlights • Q4 adjusted sales of $229.4 million dec
Slide 13: Q4 Adjusted EPS Performance Drivers
Full-Year & Q4 2023 Results Q4 Adjusted EPS Performance Drivers Q4 adjusted EPS was in line with previous expectations $0.10 - $0.20 Operating Performance Drivers • Slightly lower sales versus previous expectations primarily attributable to lower production volumes for electric vehicles • Sales head
Slide 14: Control Devices Performance
Full-Year & Q4 2023 Results Control Devices 2023 Quarterly Performance 2022 vs 2023 Performance $’s in USD Millions $351.1* Focused on margin expansion driven by reduced material $93.1 $90.5* $345.3 costs and improved manufacturing performance Sales $86.7 $345.3 $90.1 $80.8* 2023 Financial Results $
Slide 15: Electronics Performance
Full-Year & Q4 2023 Results Electronics $’s in USD Millions 2023 Quarterly Performance 2022 vs 2023 Performance $163.9 $593.6 Expecting continued strong revenue growth and margin $142.4 $146.8 expansion in 2024 as recently launched large programs Adjusted $140.5 $475.4 continue to ramp-up and additi
Slide 16: Stoneridge Brazil Performance
Full-Year & Q4 2023 Results Stoneridge Brazil $’s in USD Millions 2023 Quarterly Performance 2022 vs 2023 Performance $14.9 $57.2 $14.3 $14.2 $52.3 Expecting continued stable performance in 2024. Focus $13.9 Sales remains on growth in local OEM business and engineering capabilities to support global
Slide 17: Capital Structure Update
Full-Year & Q4 2023 Results Capital Structure Update Continued focus on cash performance expected to Compliance Net Debt improve working capital and reduce net debt and $’s in USD Millions related interest expense Capital Structure Update Total Adjusted Cash (Compliance) $162.3 $165.0 • Q4 2023 comp
Slide 18: 2024 Full-Year Guidance
Full-Year & Q4 2023 Results 2024 Full-Year Guidance 2024 2024 Mid-point Guidance Guidance Range (vs. 2023 Adjusted) Revenue expected to continue to outperform our underlying end markets based on Stoneridge specific $990.0 million - $1.01 billion +$38.8 million growth drivers. Growth of ~4% vs. weigh
Slide 19: 2024 Guidance Revenue
Full-Year & Q4 2023 Results 2024 Guidance Revenue $’s in USD Millions $990M-$1,010M Expecting 2024 midpoint revenue growth of ~4%, outperforming our underlying weighted-average OEM end markets, which are expected to decline by ~5% 2024 Revenue Guidance Drivers • Weighted-average underlying OEM end m
Slide 20: 2024 Guidance EBITDA
Full-Year & Q4 2023 Results 2024 Guidance EBITDA $13.9M $64M - $70M 2024 EBITDA guidance based on expected strong contribution margin on revenue growth and initiatives ($6.8M) $1.2M targeting gross margin improvement $10.7M 2024 EPS Guidance Drivers $48.1M • Contribution margin on incremental revenu
Slide 21: Summary
Full-Year & Q4 2023 Results Summary 2024 Outlook 2024 Guidance • Control Devices – Focused on margin expansion through reduced • Adjusted sales guidance of $990 million - $1,010 million (midpoint of $1.0 billion) material costs and improved manufacturing performance. Driving • Midpoint revenue sugge
Slide 22: Appendix Materials
Appendix Materials stoneridge.com © 2024
Slide 23: Production Forecast Outlook
Appendix PASSENGER CAR FORECAST (Millions of Units) Production Forecast NORTH AMERICA CHINA Outlook 28.4% OF 2023 SALES 15.7 15.8 3.2% OF 2023 SALES 28.8 29.5 Stoneridge expected growth of ~4% in 2024 outpaces our weighted-average OEM 14.3 26.2 end markets production expectations to decline by ~5%.
Slide 24: 2023 Adjusted Revenue
Appendix 2023 Adjusted Revenue By Region By End Market* By Customer** 17% 29% 37% 38% 15% 51% 51% 2% 9% 18% 3% 6% 4% 8% 6% 6% Commercial Vehicle Nor th Am er ic a L i g h t Tr u c k s / S U V / C U V PACCAR Tr a t o n Eur ope Passenger Car V o l vo D a i m l e r Tr u c k s As ia Pac if ic O f f - h
Slide 25: Balance Sheets
December 31, (in thousands) 2023 2022 Appendix ASSETS Current assets: Cash and cash equivalents $ 40,841 $ 54,798 Accounts receivable, less reserves of $1,058 and $962, respectively 166,545 158,155 Inventories, net 187,758 152,580 Balance Prepaid expenses and other current assets Total current asset
Slide 26: Income Statement
Appendix Income Year ended December 31, (in thousands, except per share data) 2023 2022 2021 Statement Net sales Costs and expenses: Cost of goods sold $ 975,818 774,512 $ 899,923 724,997 $ 770,462 603,604 Selling, general and administrative 117,395 106,695 116,000 Gain on sale of Canton Facility, n
Slide 27: Statements of Cash Flows
Year ended December 31, (in thousands) 2023 2022 2021 Appendix OPERATING ACTIVITIES: Net (loss) income $ (5,183) $ (14,056) $ 3,406 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation 26,749 26,720 27,823 Amortization, including accretion and wri
Slide 28: Segment Reporting
December 31, 2023 2022 2021 Appendix Net Sales: Control Devices $ 342,065 $ 342,596 $ 355,775 Inter-segment sales 3,195 2,719 3,502 Control Devices net sales 345,260 345,315 359,276 Electronics 576,539 505,097 357,910 Segment Inter-segment sales Electronics net sales 31,621 608,160 28,709 533,806 26
Slide 29: Reconciliations to US GAAP
Reconciliations to US GAAP stoneridge.com © 2024
Slide 30: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations 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 G
Slide 31: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Q4 2023 Adjusted EPS (USD in millions, except EPS) Q4 2023 Q4 2023 EPS Net Income $ 3.0 $ 0.11 Add: After-Tax Business Realignment Costs 0.1 — Add: After-Tax Deferred Financing Fee Write Off 0.2 0.01 Adjusted Net Income $ 3.4 $ 0.12 R
Slide 32: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Adjusted Gross Profit (USD in millions) 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Gross Profit $ 174.9 $ 42.8 $ 60.5 $ 52.5 $ 45.5 $ 201.3 Add: Pre-Tax Business Realignment Costs — 0.2 0.5 — 0.1 0.8 Adjusted Gross Profit $ 174.9 $ 43.
Slide 33: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Adjusted Operating Income (Loss) (USD in millions) 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Operating Income (Loss) $ 2.9 $ (4.0) $ 4.3 $ 6.5 $ 6.0 $ 12.8 Add: Pre-Tax Business Realignment Costs 0.3 1.3 1.9 1.2 0.1 4.5 Less: Pre-Tax
Slide 34: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Adjusted EBITDA (USD in millions) 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Income (Loss) Before Tax $ (10.7) $ (8.1) $ (1.5) $ 4.4 $ 3.2 $ (1.9) Interest expense, net 7.1 2.7 3.1 3.3 3.8 13.0 Depreciation and amortization 33.7 8.3 8.
Slide 35: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Control Devices Adjusted Operating Income (USD in millions) 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Control Devices Operating Income $ 23.9 $ 2.1 $ 5.1 $ 5.5 $ 0.9 $ 13.6 Less: Pre-Tax Gain on Disposal of Fixed Assets — (0.8) — — —
Slide 36: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Stoneridge Brazil Adjusted Operating Income (USD in millions) 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Stoneridge Brazil Operating Income $ 3.1 $ 1.3 $ 0.9 $ 1.2 $ 1.0 $ 4.5 Add: Pre-Tax Brazilian Indirect Tax Credits, Net (0.6) — —
Slide 37: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Adjusted Sales (USD in millions) 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Sales $ 899.9 $ 241.3 $ 266.8 $ 238.2 $ 229.5 $ 975.8 Less: Sales from Spot Purchases Recoveries (58.4) (9.1) (4.4) (0.9) (0.2) (14.6) Adjusted Sales $ 841.5 $
Slide 38: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Electronics Adjusted Sales (USD in millions) 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Electronics Sales $ 533.8 $ 149.6 $ 168.3 $ 143.3 $ 146.9 $ 608.2 Less: Sales from Spot Purchases Recoveries (58.4) (9.1) (4.4) (0.9) (0.2) (14.6)
Slide 39: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Q4 Adjusted Tax Rate (USD in millions) Q4 2023 Tax Rate Income Before Tax $ 3.2 Add: Pre-Tax Business Realignment Costs 0.1 Add: Pre-Tax Deferred Financing Fee Write Off 0.3 Adjusted Income Before Tax $ 3.7 Income Tax Expense 0.2 6.6
Slide 40: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Full-Year 2023 Adjusted Tax Rate (USD in millions) 2023 Tax Rate Loss Before Tax $ (1.9) Add: Pre-Tax Business Realignment Costs 4.5 Add: Pre-Tax Brazilian Indirect Tax Credits, Net (0.5) Add: Pre-Tax Deferred Financing Fee Write Off
Slide 41: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Adjusted EBITDA for Compliance Calculation (USD in millions) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Income (Loss) Before Tax $ 0.7 $ (8.1) $ (1.5) $ 4.4 $ 3.2 Interest Expense, net 2.2 2.7 3.1 3.3 3.8 Depreciation and Amortization 8.
Slide 42: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Adjusted Cash for Compliance Calculation (USD in millions) Q3 2023 Q4 2023 Total Cash and Cash Equivalents $ 36.8 $ 40.8 Less: 35% Cash Foreign Locations (11.5) (12.8) Total Adjusted Cash (Compliance) $ 25.2 $ 28.0 Reconciliation of A
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