Sensata Technologies Holding Plc · NYSE:ST
Sensata Technologies — Merger or Acquisition (August 2014)
13 slides from Sensata Technologies's merger presentation, Aug 18, 2014
Slide 1: Sensata Technologies Acquires The Schrader Group
INVESTOR PRESENTATION SENSATA TECHNOLOGIES ACQUIRES THE SCHRADER GROUP AUGUST 2014
Slide 2: Forward-looking statements
SENSATA ACQUIRES SCHRADER 2 This presentation contains certain forward–looking statements that involve risks or uncertainties. For example, statements regarding financial guidance and product development goals are forward–looking. The Company’s future results may differ materially from the projectio
Slide 3: Sensata is a global leader in Sensing
SENSATA ACQUIRES SCHRADER • Leading independent supplier of mission–critical sensors, #1 Position in pressure sensing • Leading market position within $8B of served markets • Faster-than-market organic revenue growth enabled by favorable regulatory environment • Differentiated design capabilities, s
Slide 4: Schrader extends Sensata's leadership in Sensing
SENSATA ACQUIRES SCHRADER Schrader extends Sensata’s leadership in Sensing • Leading market position in tire pressure monitoring sensors (TPMS) • Faster-than-market growth fundamentals of TPMS • Europe roll–out underway • China adoption will provide significant growth • Sticky, regulation–driven rev
Slide 5: Sensata's value creation strategy
SENSATA ACQUIRES SCHRADER Schrader Leadership position in TPMS; roadmap to low– pressure sensing outside of Automotive 2012 Revenue $1.9B Double Revenue 2012–2017 DeltaTech Controls Leadership position in operator controls sensing; expands HVOR footprint Wabash Technologies Expands position in magne
Slide 6: Strategic and financial rationale for Schrader
SENSATA ACQUIRES SCHRADER ? Strengthens our capability to further penetrate $80 billion Total Sensor Market ? Expands low pressure sensing capabilities: increases our Addressable Market by $2 billion ? Schrader is the global leader in fast-growing, highly-regulated TPMS Established European regulati
Slide 7: Growth: Opportunities driven by regulation
SENSATA ACQUIRES SCHRADER 17M vehicles North America: TREAD Act passed in 2000 required all cars be equipped with TPMS by 2008 Growth: Opportunities driven by regulation Regulation drives rapid TPMS growth; significant opportunities in China 23M vehicles China: Mandate underway 4.7M vehicles South K
Slide 8: Additional opportunities enabled by Schrader
SENSATA ACQUIRES SCHRADER Additional opportunities enabled by Schrader Enables faster response to low pressure opportunities and reduced costs due to scale advantages Greater scale enables greater cost efficiencies and faster response to opportunities WIRELESS DESIGN CAPABILITIES POTENTIAL AFTERMARK
Slide 9: Schrader expands our Sensor market opportunity
SENSATA ACQUIRES SCHRADER Other Image Temperature Load / Speed Pressure Position Chemical Flow Level Biosensor Other Oxygen Air Flow Accelerometer Temperature Speed Pressure Position $10B SAM (millions) SOURCE: Strategy Analytics 2015 estimates (July 2014) 2015 Auto Sensor TAM ~$20B Global Sensor TA
Slide 10: Acquisition of Schrader creates significant value
SENSATA ACQUIRES SCHRADER Acquisition of Schrader creates significant value ?Purchase multiple <10x 2015 stand-alone EBITDA ?Significant cost and revenue synergy opportunities ?$0.18 to $0.21 accretive in 2015 ?$0.50 to $0.55 accretion post integration and dept repayment (and additional $0.18 to $0.
Slide 11: Backup
SENSATA ACQUIRES SCHRADER BACKUP 11
Slide 12: Financing structure
SENSATA ACQUIRES SCHRADER Q2 2014 Pro forma End 2014 Within 18 Months Net Debt / Adj EBITDA ~ 4x 2-3x 2.7x Financing structure Sensata intends to finance the Schrader acquisition primarily through issuance of debt • Debt markets are extremely attractive • $1,000M of committed financing • Anticipate
Slide 13: Non-GAAP financial measures definitions
SENSATA ACQUIRES SCHRADER 13 This presentation includes references to Adjusted net income and Adjusted EBITDA amounts. Adjusted net income is a non–GAAP financial measure. The Company defines Adjusted net income as follows: Net income before costs associated with debt refinancing and other financing
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