Slide 1: Stoneridge, Inc. Earnings Release Presentation August 9, 2012
1 Stoneridge, Inc . Earnings Release Presentation August 9, 2012 Exhibit 99.2
Slide 2: Forward Looking Statements
Statements in this presentation that are not historical facts (including, but not limited to, 2012 net sales guidance) 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 stateme
Slide 3: Forward Looking Statements (con't)
Forward Looking Statements ( con’t ) These factors should not be construed as exhaustive and should be considered with the other cautionary statements in Stoneridge’s filings with the Securities and Exchange Commission. Forward - looking statements are not guarantees of future performance; Stoneridg
Slide 4: Summary of Situation & Initiatives
Summary of Situation & Initiatives Rapidly Changing Business Environment • Exposure to Large North American CV OEM • Further Weakness in European CV Market • Volatile FX Rates • Deteriorating Brazilian Economy Management Responses • Brazilian Restructuring Initiatives in April & May • North America
Slide 5: Sales, Gross Profit, & Op Income – 2Q12 vs 2Q11
Sales, Gross Profit, & Op Income – 2Q12 vs 2Q11 38.5 24.8 13.7 18.6 (5.0) 195.8 155.8 40.0 33.4 6.6 (60)% (40)% (20)% 0% 20% 40% 60% 80% 100% Sales COGS Gross Profit SGA Op Income PST Core 2Q11 2Q12 SRI Variance millions SRI Core PST Ops PST PPA SRI $ % Sales 190.4 195.8 38.5 0.0 234.3 43.8 23.0% CO
Slide 6: 1Q12 vs 2Q12 EPS Bridge
1Q12 vs 2Q12 EPS Bridge PST Impacts SRI Core TOTAL Volume (0.09) (0.10) (0.19) Mix / Direct Material (0.02) (0.06) (0.08) FX (0.06) (0.02) (0.08) Restructuring (0.02) 0.00 (0.02) SGA Reductions 0.00 0.02 0.02 TOTAL (0.19) (0.16) (0.35) (0.13) 0.02 (0.02) (0.08) (0.08) (0.19) 0.22 2Q12 Actual EPS SGA
Slide 7: PST Purchase Price Accounting Impact (Non Cash)
PST Purchase Price Accounting Impact (Non Cash) (millions except EPS ) Q1 Actual Q2 Actual Q3 Est. Q4 Est. Full Year 2012 Est. COGS / DM Inventory Write Up 1.8 1.4 0.0 0.0 3.2 COGS / Depreciation – Fixed Asset Write Up 0.4 0.3 0.3 0.3 1.4 SGA / Amortized Intangibles 1.0 1.1 1.3 1.4 4.9 TOTAL 3.2 2.8
Slide 8: SRI / PST / Purchase Accounting Impact
SRI / PST / Purchase Accounting Impact millions First Quarter 2012 Second Quarter 2012 1H12 SRI Core PST PST PPA TOTAL SRI Core PST PST PPA TOTAL SRI Core PST PST PPA TOTAL Sales 208.6 53.7 0.0 262.3 195.7 38.5 0.0 234.2 404.3 92.2 0.0 496.5 Gross Margin 44.5 22.8 (2.2) 65.1 40.0 15.4 (1.7) 53.7 84.
Slide 9: Guidance Change
Guidance Change Feb 2012: Original Guidance Jul 2012: Revised Guidance SRI Core PST (Rate 1.84) Consolidated SRI Core PST (2H12 Rate 2.00) Consolidated Sales $820 - $850 $240 - $270 $1,060 - $1,120 $775 - $795 $195 - $214 $970 - $1,009 Gross Margin % 21.0% - 23.0% 40.0% - 43.0% 25.5% - 27.5% 21.0% -
Slide 10: Sales by Segment – 2Q12 vs 2Q11
Sales by Segment – 2Q12 vs 2Q11 2Q12 2Q11 millions CD ELEC PST SRI CD ELEC PST SRI Pass Car / Lt Truck 51.4 1.2 0.0 52.6 50.0 3.3 0.0 53.3 Med / Heavy Duty 8.3 91.9 0.0 100.2 7.3 94.6 0.0 101.9 Ag 4.4 32.5 0.0 36.8 4.4 24.3 0.0 28.7 Other 4.5 1.7 38.5 44.7 4.7 1.8 0.0 6.5 TOTAL 68.6 127.3 38.5 234.3
Slide 11: Sales by Segment – 2Q12 vs 1Q12
Sales by Segment – 2Q12 vs 1Q12 2Q12 1Q12 millions CD ELEC PST SRI CD ELEC PST SRI Pass Car / Lt Truck 51.4 1.2 0.0 52.6 53.5 1.5 0.0 55.1 Med / Heavy Duty 8.3 91.9 0.0 100.2 6.7 97.7 0.0 104.4 Ag 4.4 32.5 0.0 36.8 4.0 37.9 0.0 41.9 Other 4.5 1.7 38.5 44.7 6.2 1.1 53.7 61.0 TOTAL 68.6 127.3 38.5 234
Slide 12: Restructuring Costs / Benefits
Restructuring Costs / Benefits millions 1Q12 2Q12 3Q12 4Q12 FY 2012 NA Wiring Cost 0.0 0.0 (0.7) 0.0 (0.7) Benefit 0.0 0.0 0.7 1.1 1.8 NA / European Instrumentation Cost 0.0 0.0 (0.3) 0.0 (0.3) Benefit 0.0 0.0 0.0 0.4 0.4 PST Cost (0.3) (1.3) 0.0 0.0 (1.6) Benefit 0.0 0.0 2.2 2.2 4.4 TOTAL Cost (0.3
Slide 13: Improving Direct Material Costs in 2H12
Improving Direct Material Costs in 2H12 millions 1Q12 2Q12 1 st Half 3Q12 4Q12 2 nd Half FY 2012 Targeted Improvements Core Direct Material 56.2% 56.7% 56.4% 55.5% 55.2% 55.4% 55.9% PST Direct Material 38.0% 37.8% 37.9% 37.8% 37.2% 37.5% 37.6% • Commodity based material price decreases • Sales price
Slide 14: Wiring Plant Operations Improvement
Wiring Plant Operations Improvement Addressed Operating Inefficiencies of $24 million in 2011 DELIVERY Past Due Premium Freight Pieces $ % 2 nd Qtr 2012 vs. 2 nd Qtr 2011 (80.2)% $(0.7) (50.0)% Labor Efficiency Mar 2011 vs. Dec 2011 Forecast 2012 Count % Count % Headcount (1,075) (17.1)% (611) (11.1
Slide 15: North American Light Vehicle Production
13,126 14,938 2011 2012 Thousands North American Light Vehicle Production Source: IHS July 2012 3,381 3,124 3,182 3,439 3,973 3,971 3,437 3,556 (7.6)% 1.9% 8.1% 15.5% (0.1)% (13.4)% 3.5% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Thousands Auto Qtr vs Qtr % ∆ ↑ 13.8% Guidance de
Slide 16: N.A. Medium Duty Truck Production
166,998 174,318 2011 2012 N.A. Medium Duty Truck Production Source: IHS July 2012 (previous JD Power) 40,135 44,760 41,834 40,269 44,918 46,699 41,508 41,193 11.5% (6.5)% (3.7)% 11.5% 4.0% (11.1)% (0.8)% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 NA N.A. Qtr vs Qtr % ∆ ↑ 4.4% Gu
Slide 17: N.A. Heavy Duty Truck Production
255,488 299,347 2011 2012 N.A. Heavy Duty Truck Production Source: IHS July 2012 (previous JD Power) 51,501 60,569 68,482 74,936 76,012 75,511 74,013 73,811 17.6% 13.1% 9.4% 1.4% (0.7)% (2.0)% (0.3)% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 NA N.A. Qtr vs Qtr % ∆ ↑ 17.2% Guida
Slide 18: Europe Heavy Duty Truck Production
310,080 289,856 2011 2012 Europe Heavy Duty Truck Production Source: IHS July 2012 (previous JD Power) 77,557 76,650 69,519 86,354 70,714 67,122 63,373 88,647 (1.2)% (9.3)% 24.2% (18.1)% (5.1)% (5.6)% 39.9% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Europe Europe Qtr vs Qtr % ∆
Slide 19: FX Assumptions for 2H12
FX Assumptions for 2H12 USD / BRL 2.000 USD / MXN 13.090 EUR / USD 1.270 Copper $4.05 / pound
Slide 20: Debt / Net Debt
Debt / Net Debt millions 4Q11 1Q12 2Q12 2012 E Total Debt $267.1 $253.2 $244.9 Net Debt $188.4 $210.2 $205.8 Total Debt / EBITDA 3.5 x * 2.23 x EBITDA = Operating Income + Depreciation + Amortization + Purchase Accounting Direct Material * Proforma for PST Debt and EBITDA
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