Standard Motor Products, Inc. · NYSE:SMP
Standard Motor Products — Jefferies Automotive Aftermarket Investor Conference 2022
13 slides from Standard Motor Products's conference presentation, May 26, 2022
Slide 1: Standard Motor Products, Inc.
Standard Motor Products, Inc. Jefferies Automotive Aftermarket Investor Conference May 26th, 2022
Slide 2: Forward Looking Statements
Forward Looking Statements You should be aware that except for historical information, the matters discussed here in are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements, including projections and anticipated levels of
Slide 3: SMP Snapshot
SMP Snapshot 102 Years in Business • Founded 1919 • $1.3 Billion 2021 Sales • 5,000 Employees Worldwide LAWRENCE I. SILLS Chairman of the Board ERIC P. SILLS Director, CEO JAMES J. BURKE Chief Operating DALE BURKS EVP and Chief NATHAN ILES Chief Financial and President Officer Commercial Officer Off
Slide 4: Strategic Objectives
Strategic Objectives Core Value • External programs that provide real value to our customers • Best-in-class full-line, full-service supplier of premium aftermarket engine management and Proposition temperature control products Successful • Strategic expansion of our business • Growth in complementa
Slide 5: SMP Facilities – Global Footprint
SMP Facilities – Global Footprint 3.3 Million sq. ft. • 18 Manufacturing Plants • 7 Distribution Centers • 11 Offices 5
Slide 6: Favorable Aftermarket Industry Trends
Favorable Aftermarket Industry Trends Vehicle Population shows positive trend Car Parc continues to get older U.S. Light Vehicle Parc Average Age of Cars and Light Trucks 290 Millions 12.0 281 283 11.6 11.6 11.7 11.8 11.9 12.1 278 11.3 11.4 11.5 270 272 260 264 8.0 258 253 249 230 4.0 200 2013 2014
Slide 7: Growth Objectives and Focus
Growth Objectives and Focus Aftermarket Specialized Product JVs and M&A Markets Development Continuous Favorable Industry Growth into Sizable Improvement for Favorable Industry Fundamentals End Markets Future Opportunities Fundamentals • Low-mid single industry • Parallel growth to • Capture project
Slide 8: Growth in Specialized Markets
Growth in Specialized Markets 2021 Increased Push into Specialized Markets Focus on On-Highway and Off-Highway • Product life cycles tend to be longer • Commercial vehicle our largest category • Technology more stable • Highly fragmented end markets • Less competition and more stable pricing • Expan
Slide 9: Growth in Specialized Markets
Growth in Specialized Markets Selling Custom Engineered Products and Solutions into Niche End Markets Complementary Strategic Product Portfolio Growth Diversification Enhancement Major Categories • Products and • Channel will be >20% of • Non-powertrain related • Sensing & Switching technologies wil
Slide 10: Growth through Strategic Acquisitions
Growth through Strategic Acquisitions 2011 2012 2013 2014 2016 2017 2019 2021 • 15 Acquisitions in Recent Years • Primary Focus – Competitors or suppliers – Complementary markets – Non-ICE / powertrain-neutral products • Rationale – Aids aftermarket Full-Line, Full-Service model – Strategic diversif
Slide 11: Corporate Social Responsibility
Corporate Social Responsibility • SMP is committed to ongoing ESG and DE&I initiatives • We believe in being a good corporate citizen • We are committed to our company, our employees, our shareholders, our business partners, and communities • Some highlights from our recent Sustainability Report rel
Slide 12: Year-Over-Year Performance Measures
Year-Over-Year Performance Measures $1,500 Consolidated Net Sales ($M) 35% Gross Margin 30.3% 27.7% 27.5% 27.7% $1,250 30% 27.8% $1,298.8 $1,137.9 $1,128.6 25% $1,000 $1,092.1 20% $750 15% 28.6% 29.2% 29.8% 29.0% $500 UP 16.7% 10% $250 $322.8 $261.8 $283.8 $276.6 5% $254.3 $- 0% 2018 2019 2020 2021
Slide 13: SMP Cash Utilization
SMP Cash Utilization $225 CapEx Dividends Acquisitions Buybacks $200M $200 27 $175 Total Utilization $150 Buybacks $125 $104M $139M CapEx 17% $187M 23% 125 $ millions 1 $91M $100 $64M $74M $73M 11 $75 $64M Dividends 10 $51M 67 M&A $342M $155M 19% 5 24 41% 15 44 $43M $50 $41M 38 20 7 10 39 7 14 22 $1
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