Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — J.P. Morgan Global High Yield & Leveraged Finance Conference 2015
27 slides from Cooper-standard's conference presentation, Feb 25, 2015
Slide 1: J.P. Morgan Global High Yield & Leveraged Finance Conference
1 J.P. Morgan Global High Yield & Leveraged Finance Conference February 25, 2015
Slide 2: Forward-Looking Statements
2 2 Forward-Looking Statements There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this presentation. Important factors that could cause the Company's actual results to differ materially from the forw
Slide 3: Cooper Standard Overview
Jeff Edwards Chairman and Chief Executive Officer Cooper Standard Overview
Slide 4: Cooper Standard at a glance
4 4 Cooper Standard (NYSE: CPS) 2014 Revenue: $3.244 billion (52% NA, 35% Europe, 8% Asia, 5% SA) $400+ million nonconsolidated JV Automotive Supplier Rank1: 67 Globally 41 North America 49 Europe Global Footprint: 97 facilities 10 technical centers 20 countries Employees: 27,000 + employees 1 Autom
Slide 5: Core Product Lines
5 5 Core Products Lines Fuel & Brake Delivery Systems #2 Globally1 Fluid Transfer Systems North American Leader1 Anti-Vibration Systems North American Leader1 *6% other includes non-automotive and divested thermal & emissions products 1 Booz and Company Market Research 2013 Sealing Systems #1 Global
Slide 6: Vision and Mission
6 Vision : Drive for Profitable Growth Mission : Top 30 – Top 5 Cooper Standard (NYSE: CPS) Top 30 automotive supplier in sales; top 5% ROIC
Slide 7: Drive for Profitable Growth
7 7 Drive for Profitable Growth
Slide 8: Content Per Vehicle on Top Five Platforms
8 8 Content Per Vehicle on Top Five Platforms Vehicle1 Content Per Vehicle2 Sealing F&B FTS AVS Ford F-150 ≈ $440 GM Silverado / Sierra/ Tahoe / Yukon / Escalade ≈ $170 Ford Focus / Escape 3 ≈ $95 Ford Fiesta / B Max / Ecosport 3 ≈ $130 Ford Mondeo / S-Max; Volvo S60 / V70; Tata Range Rover 4 ≈ $160
Slide 9: World-Class Operations
9 9 World-Class Operations • Launched world-class operations initiative to drive improvement in ROIC: – Advantaged global footprint – Implemented best business practice tool – Standardization of process, equipment and product designs – Global supply chain structure to effectively leverage scale – Di
Slide 10: CPS vs Benchmark World-Class Operations
10 10 CPS Benchmark World-Class Operations Material Variable Overhead Fixed Overhead Total Labor Hours / Equivalent Unit CPS Benchmark Opportunity for Improvement CPS Benchmark CPS Benchmark
Slide 11: Restoring Competitive Advantage in Europe
11 2 2 Restoring Competitive Advantage in Europe New regional management in place to accelerate performance Vertical integration Addressing commercial gaps Footprint optimization Revised restructuring plan Acquired 100 percent interest in Cooper Standard France JV Re-entered Spain mark
Slide 12: Accelerating Growth in China
12 12 Changchun Chongqing Huai-an Jingzhou Kunshan Shanghai Wuhu Guangzhou Shenyang Fengxian Accelerating Growth in China Huayu-Cooper Standard Transaction* Cooper Standard / INOAC JV* Majority-owned JV in Asia to accelerate fluid transfer systems growth Provides additional growth opportunities
Slide 13: Accelerating Growth in India
13 13 Accelerating Growth in India Bawal Chennai Sahibabad Manesar Mumbai Pune 2 Sanand Strengthened regional management team Launching new sealing and fuel & brake facilities to expand market leading positions for both product lines Expanding technical capabilities in Pune Expanding relatio
Slide 14: Bringing Innovations to Market
14 14 Technology Benefits Status Ultra Galfan Coating Increases product life for fuel and brake lines In production Quick Connect with Sensor Improves connections with sensor capability Booked orders ArmorHose™ Eliminates requirement for protective sleeves Booked orders Fortrex™ Material revolutioni
Slide 15: Revenue 2012 - 2017
15 15 Revenue 2012 - 2017 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 2012 2013 2014 2015F 2016F 2017F Revenue Outpacing Industry Key Growth Drivers • Positioning to outpace competition on global platforms • Gaining significant China and North America market share • Developing new strategic partnerships • Commerc
Slide 16: Revenue Growth
16 16 Revenue Growth Note: Numbers subject to rounding 2014 Revenue by Product Lines - $3.2 billion Sealing 52% Fuel & Brake 20% Fluid Transfer 14% AVS 8% T&E Non- Automotive 2011-2014 Revenue by Customers * Others include Revenue to Tier ½ and commercial vehicle customers ($ million) OEM 2011 2014
Slide 17: Allen Campbell, Chief Financial Officer
Allen Campbell Executive Vice President and Chief Financial Officer
Slide 18: Full Year Sales Growth Outpacing Market
Full Year Sales Growth Outpacing Market Note: Numbers subject to rounding (1) Source : January 2015 IHS Forecast / Full Year Q4 2013 - $794 Q4 2014 - $768 Full Year 2013 - $3,091 Full Year 2014 - $3,244 $ USD Millions Fourth Quarter Full Year $0 $100 $200 $300 $400 $500 North America Europe Asia Pac
Slide 19: Improved Q4 and FY 2014 Performance
19 19 Improved Q4 and FY 2014 Performance $ USD Millions, except Fully Diluted EPS / % Note: Numbers subject to rounding Fourth Quarter Full Year 2013 2014 2013 2014 $794.2 $767.9 Sales $3,090.5 $3,244.0 105.1 117.8 Gross Profit 472.7 509.4 13.2% 15.3% % Margin 15.3% 15.7% 72.6 73.1 SGA&E 293.4 301.
Slide 20: Full Year 2014 Cash Flow and Key Financial Ratios
20 20 Full Year 2014 Cash Flow and Key Financial Ratios Liquidity Cash Balance as of December 31, 2013 $ 184.4 Cash generated 82.9 Cash Balance as of December 31, 2014 $ 267.3 ABL Revolver 180.0 Letters of Credit (35.6) Total Liquidity $ 411.7 Key Financial Ratios • Net Leverage $ 519 M • Net Levera
Slide 21: Current Headwinds Impacting Business
21 21 Current Headwinds Impacting Business 1.9 2.0 2.1 2.2 2.3 Q1 Q2 Q3 Q4 0.5 1.0 1.5 Q1 Q2 Q3 Q4 USD/CAD EUR/USD Detroit 3 Light Vehicle Production Light Vehicle Production - Brazil m ill io n u n it s m ill io n u n it s 2013 2014 Source: IHS Automotive Source: IHS Automotive Source: Bloomberg 0.
Slide 22: 2015 Guidance
22 22 2015 Guidance North American production 17.4 million units European (including Russia) production 20.3 million units Average full year exchange rate 1 EUR = $1.19 USD 1 CAD = $0.84 USD • Revenue $3.3 - $3.4 billion • Capital Expenditure $185 - $210 million • Restructuring $35 - $45 million • C
Slide 23: Passion for Performance
S_PASSION FOR PERFORMANCE
Slide 24: Passion for Performance
S_PASSION FOR PERFORMANCE
Slide 25: Adj. EBITDA Reconciliation - Twelve Months Ended December 31, 2014
25 25 Note: Numbers subject to rounding Adj. EBITDA % Margin - Twelve Months Ended December 31, 2014 (1) Includes noncash restructuring and is net of noncontrolling interest. (2) Non-cash stock amortization expense and non-cash stock option expense for grants issued at time of the Company’s 2010 reo
Slide 26: Adj. EBITDA Reconciliation - Twelve Months Ended December 31, 2013
26 26 Adj. EBITDA % Margin - Twelve Months Ended December 31, 2013 ($ USD Millions) (1) Includes non-cash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non-cash stock option expense for grant
Slide 27: Non-GAAP Financial Measures
27 27 Non-GAAP Financial Measures EBITDA and adjusted EBITDA are measures not recognized under Generally Accepted Accounting Principles (GAAP) which exclude certain non-cash and non-recurring items. Management considers EBITDA and adjusted EBITDA as key indicators of the Company's operating performa
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