Slide 1: 4Q14 Earnings Release
4Q14 Earnings Release February 27, 2015 TECHNOLOGIES IN MOTION Exhibit 99.2
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
Slide 3: Sales by Segment – 4Q14 vs 4Q13
Sales by Segment – 4Q14 vs 4Q13 CD ELEC PST SRI CD ELEC PST SRI Pass Car / Light Truck 59.4 0.3 0.0 59.7 54.2 0.5 0.0 54.7 Med / HD Truck 8.0 52.9 0.0 60.9 9.1 49.4 0.0 58.5 Ag 4.0 0.0 0.0 4.0 4.0 0.0 0.0 4.0 PST / Other 3.2 3.1 35.9 42.2 4.6 1.8 45.7 52.1 TOTAL 74.6 56.3 35.9 166.8 71.8 51.7 45.7 1
Slide 4: 4Q14 vs 4Q13 Income Statement
SRI excl PST PST PST PPA Total PST SRI SRI SRI 4Q14 4Q13 USD [millions] except per share data Actual Actual ∆ # ∆ % Net Sales 130.9 35.9 - 35.9 166.8 169.2 (2.4) (1.4%) Cost of Materials 69.6 15.1 - 15.1 84.7 81.0 3.7 4.6% Cost of Materials % 53.2% 42.1% 42.1% 50.8% 47.9% Direct Labor 5.5 3.5 - 3.5
Slide 5: EPS Bridge 4Q13 to 4Q14
PST CD & Elec & Corp Stoneridge, Inc. 4Q13 Actual EPS [ Cont Ops] 0.12 (0.07) 0.19 Sales Volume 0.12 (0.03) (0.05) Mix / Direct Material (0.08) 0.00 (0.08) SGA / DD / DL Increase / Decrease (0.08) 0.04 (0.04) Overhead 0.00 0.04 (0.02) FX / MTM 0.02 0.00 0.05 Tax / Other 0.05 (0.01) 0.11 Int. Expense
Slide 6: Schedule of Unusual Items
Schedule of Unusual Items Values in millions, except EPS 1Q14 2Q14 3Q14 4Q14 YTD 1Q14 2Q14 3Q14 4Q14 YTD $ $ $ $ $ $ EPS EPS EPS EPS Reported EPS (Continuing Operations) 0.02$ (0.79)$ 0.29$ (0.92)$ (1.40)$ Goodwill PST - 29.3 (5.8) 28.0 51.5 1.09$ (0.21)$ 1.04$ 1.91$ Noncontrolling Int PST - (6.3) 1
Slide 7: 2014 Sales: Market, Region, Segment
37% 36% 21% 6% PassCar Lt Truck Comm'l Vehicle PST Ag / Other 50% 21% 29% North America South America Europe / Asia 47% 32% 21% Control Devices Electronics PST 2014 Sales $661 M NOTE: D oes not include revenue from India JV 2014 Sales: Market, Region, Segment Sales from Continuing Operations SERVED
Slide 8: EPS Bridge 3Q14 to 4Q14
PST CD & Elec & Corp Stoneridge, Inc. 3Q14 Actual EPS [ Cont Ops] 0.29 (0.01) 0.00 Sales Volume (0.01) (0.02) 0.00 Mix / Direct Material (0.02) 0.02 0.03 SGA 0.05 0.00 (0.08) CD / ELEC Overhead (0.08) 0.01 0.02 FX 0.03 0.00 0.02 Tax / Other 0.02 0.00 0.11 Int. Expense 0.11 0.00 0.10 SUBTOTAL 0.10 Co
Slide 9: Sales by Segment – 4Q14 vs 3Q14
Sales by Segment – 4Q14 vs 3Q14 CD ELEC PST SRI CD ELEC PST SRI Pass Car / Light Truck 59.4 0.3 0.0 59.7 62.8 0.5 0.0 63.3 Med / HD Truck 8.0 52.9 0.0 60.9 8.5 52.9 0.0 61.4 Ag 4.0 0.0 0.0 4.0 4.4 0.0 0.0 4.4 PST / Other 3.2 3.1 35.9 42.2 2.7 1.5 37.0 41.2 TOTAL 74.6 56.3 35.9 166.8 78.4 55.0 37.0 1
Slide 10: PST Purchase Price Accounting Expense
PST Purchase Price Accounting Expense [Non Cash] (millions) 1Q 2Q 3Q 4Q Full Year 2013 1Q14 2Q14 3Q14 4Q14 Full Year 2014 COGS / Depreciation – Fixed Asset Write Up $0.3 $0.3 $0.3 $0.3 $1.2 $0.3 $0.3 $0.3 $0.2 $1.1 SGA / Amortized Intangibles $1.6 $1.5 $1.0 $1.0 $5.1 $1.2 $1.2 $1.0 $0.8 $4.2 TOTAL $
Slide 11: Debt / Net Debt
Debt / Net Debt DEBT LEVERAGE 4.1x 2.8x 2.5x 2012 2013 2014 Debt Leverage: Continuing Operations excluding PST PPA LTM EBITDA = Op Income + Depreciation + Amortization + Non - Depreciation / Amortization Purchase Accounting 100 175 300 Previous Structure Current Structure CAPITAL STRUCTURE $275 $300
Slide 12: PST Performance and Outlook: Cost Initiatives
Summary Cost Initiatives being Implemented Cost 2014 Benefits * 2015 Benefits * R$ USD$ R$ USD$ R$ USD$ 2014 Actions / Benefits April – Reduction of 164 Hourly Employees and other SG&A reduction 1.3 0.7 10.8 4.6 12.3 5.0 July – Reduction 140 Salary / Staff Position 2.1 0.9 3.3 1.4 2.9 1.2 Gross Cost
Slide 13: PST Major Growth Drivers
Export 5.5% OEM/OES 19.0% Mass Merchandisers 18.7% Aftermarket 29.4% Track & Trace 27.4% 2015 E Growth 25 - 30% ▲ 8 - 10 % ▲ 20 - 30% ▲ 3 - 4% ▲ (3%) * ▼ PST Growth 10 to 15% In local currency % of PST Sales Volume Major Growth Drivers Track & Trace • Serves Retail and Corporate Accounts • Retail –
Slide 14: Strong New Business Awards
Strong New Business Awards 2015 2016 2017 2018 2019 13 - 17% % Range 65 - 69% 6 - 10% 0 - 3% 7 - 11% Expect approximately $106M in Net New Business in 2016 - 2017 Expect $130M in Net New Business [2015 – 2019] $ millions, excl Wiring 2011 2012 2013 2014 Sales $440 $612 $659 $661 D&D $29 $39 $40 $42
Slide 15: 2015 Guidance
Sales: $667 - $687 million Gross Margin: 28% - 30% Op Margin: 4% - 6% EPS: $0.77 - $0.92 2015 Guidance Rates 2014 Avg ACTUAL 2015 BDGT Variance USD / BRL 2.354 2.700 (0.346) USD / MXN 13.310 14.640 (1.330) EUR / USD 1.327 1.130 0.197 USD / SEK 6.862 8.180 (1.318)
Slide 16: Forge
Forge 16