Slide 1: Q2 2024 Results
Q2 2024 Results August 1, 2024 stoneridge.com © 2024
Slide 2: Forward-Looking Statements
Q2 2024 Results 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 f
Slide 3: Non-GAAP Financial Measures
Q2 2024 Results Non-GAAP Financial Measures Q2 2024 Q2 2024 This presentation contains information about the Company’s financial results that is not presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Such non-GAAP Reported Adjusted financial measures
Slide 4: Overview of Achievements
Q2 2024 Results Overview of Achievements • Q2 Adjusted EPS of $0.17 improved by $0.39 vs. Q1 2024 • Q2 Adjusted EBITDA margin of 6.8% improved by ~410 bps vs. Q1 2024 • Material cost improvements, operating cost control and favorable non-operating FX impacts drove improvement • Q2 Gross margin of 22
Slide 5: Financial Summary
Q2 2024 Results Financial Q1 2024 vs. Q2 2024 Summary $239.2 $239.9 Ex. FX $237.1 Sales Second quarter operating performance improved significantly vs. Q1 driven by continued improvement Q1 2024 Q2 2024 in material costs, operational excellence and focused $53.7 cost control $48.4 22.7% Gross 20.2%
Slide 6: Organizational Announcement
Q2 2024 Results Organizational Announcement Natalia Noblet appointed as President of Electronics, effective September 1, 2024 • Most recently, Noblet served as the senior vice president EMEA Region within ZF’s Commercial Vehicle Solutions division where she led profitability for the region, includin
Slide 7: Commercial Updates
Q2 2024 Results Commercial Updates MirrorEye CMS Updates Digital Services Updates • Launched on Volvo’s FH Aero Model in Europe in Q2 2024 Volvo Bus Partnership • 2024 OEM orders have shown some volatility as program and truck • Offering Stoneridge’s data and artificial intelligence fuel advice prod
Slide 8: Driving Growth: Advanced Software & AI
Q2 2024 Results Driving Growth Commercial Vehicle Driver Side View Advanced Software & AI Furthering technology capabilities and expanding growth opportunities in ADAS applications Artificial Intelligence and Advanced Software Algorithms • Dedicated team of engineers directly involved in AI-based ad
Slide 9: Financial Update
Financial Update stoneridge.com © 2024
Slide 10: Q2 2024 Financial Highlights
Q2 2024 Results Q2 2024 Financial Highlights Q2 2024 Q2 2024 Reported Adjusted Strong Q2 performance resulted in margin expansion and significant earnings growth $237.1 million - Sales Key Performance Drivers • Improved gross margin performance primarily driven by material cost Gross Profit $53.7 mi
Slide 11: Control Devices Performance
Q2 2024 Results Control Devices $’s in USD Millions Q1 2024 vs Q2 2024 Performance $80.9 Continued margin expansion driven by focus on operational excellence and operating cost control Sales $78.0 +3.7% Q2 2024 Financial Results Q1 2024 Q2 2024 • Higher sales vs. Q1 2024 primarily due to increased s
Slide 12: Electronics Performance
Q2 2024 Results Electronics $’s in USD Millions Q1 2024 vs Q2 2024 Performance $156.1 $155.7 Ex. FX Significant and continued margin expansion in Q2 Sales $153.5 Q2 2024 Financial Results • Excluding the unfavorable impact of foreign currency of ~$2.2 million, Q2 sales were approximately in-line wit
Slide 13: Stoneridge Brazil Performance
Q2 2024 Results Stoneridge Brazil $’s in USD Millions Q1 2024 vs Q2 2024 Performance $12.2 $12.5 Ex. FX Focus remains on growth in local OEM business and $11.8 engineering capabilities to support global business Sales +2.0% Q2 2024 Financial Results Ex. FX Q1 2024 Q2 2024 • Excluding the unfavorable
Slide 14: 2024 Full-Year Revenue & EBITDA Guidance Update
Q2 2024 Results 2024 Full-Year $’s in USD Millions Full-Year 2024 Revenue Guidance Midpoint Walk Revenue & EBITDA $1,000M Guidance Update ~($12M) ~($18M) $970M ~($15M) $955M Revenue Guidance Drivers • Production volume headwinds on OEM programs primarily driven by continued macroeconomic pressure on
Slide 15: 2024 Full-Year Guidance Update
Q2 2024 Results 2024 Full-Year Guidance Update Full-Year 2024 Guidance Update Guidance Range Updated Midpoint Change • Updating full-year 2024 guidance to reflect current expectations and market conditions $940.0 million - $970.0 million ($45.0) million • Reducing revenue midpoint by $45 million to
Slide 16: Key Priorities Update Q2 2024
Q2 2024 Results Key Priorities Update Q2 2024 We are executing on our key priorities for 2024 YTD Summary • 2-3x Market Growth Full-year revenue guidance midpoint implies 3.6% outperformance vs. weighted-average OEM Invest capital (organic or 2-3x Growth in end markets which are expected to declin
Slide 17: Appendix Materials
Appendix Materials stoneridge.com © 2024
Slide 18: Balance Sheets
June 30, December 31, (in thousands) 2024 2023 (Unaudited) ASSETS Current assets: Appendix Cash and cash equivalents $ 42,112 $ 40,841 Accounts receivable, less reserves of $620 and $1,058, respectively 168,215 166,545 Inventories, net 178,749 187,758 Prepaid expenses and other current assets 32,882
Slide 19: Income Statement
Appendix Three months ended Six months ended June 30, June 30, Income (in thousands, except per share data) 2024 2023 2024 2023 Statement Net sales Costs and expenses: Cost of goods sold $ 237,059 183,319 $ 266,814 206,326 $ 476,216 374,119 $ 508,139 404,849 Selling, general and administrative 31,87
Slide 20: Statements of Cash Flows
Six months ended June 30, (in thousands) 2024 2023 OPERATING ACTIVITIES: Net loss $ (3,340) $ (10,378) Appendix Adjustments to reconcile net loss to net cash provided by (used for) operating activities: Depreciation 13,054 13,161 Amortization, including accretion and write-off of deferred financing
Slide 21: Segment Reporting
Three months ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Appendix Net Sales: Control Devices $ 79,899 $ 92,120 $ 157,057 $ 178,062 Inter-segment sales 955 970 1,786 1,704 Control Devices net sales 80,854 93,090 158,843 179,766 Electronics 145,511 159,786 295,294 300,913 Inter-segmen
Slide 22: Reconciliations to US GAAP
Reconciliations to US GAAP stoneridge.com © 2024
Slide 23: US GAAP Reconciliations
US GAAP Reconciliations US GAAP Reconciliations This document contains information about Stoneridge's financial results which is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest G
Slide 24: Reconciliation of Q2 2024 Adjusted EPS
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Q2 2024 Adjusted EPS (USD in millions, except EPS) Q2 2024 Q2 2024 EPS Net Income $ 2.8 $ 0.10 Add: After-Tax Business Realignment Costs 1.9 0.07 Adjusted Net Income $ 4.7 $ 0.17 stoneridge.com 24 © 2024
Slide 25: Reconciliation of Adjusted Operating Income
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Adjusted Operating Income (USD in millions) Q1 2024 Q2 2024 Operating Income $ 0.3 $ 3.4 Add: Pre-Tax Business Realignment Costs — 1.9 Adjusted Operating Income $ 0.3 $ 5.4 stoneridge.com 25 © 2024
Slide 26: Reconciliation of Adjusted EBITDA
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Adjusted EBITDA (USD in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Income (Loss) Before Tax $ (8.1) $ (1.5) $ 4.4 $ 3.2 $ (5.6) $ 1.9 Interest expense, net 2.7 3.1 3.3 3.8 3.6 3.8 Depreciation and amortization 8.3 8.4 8
Slide 27: Reconciliation of Electronics Adjusted Operating Income
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Electronics Adjusted Operating Income (USD in millions) Q1 2024 Q2 2024 Electronics Operating Income $ 7.1 $ 9.8 Add: Pre-Tax Business Realignment Costs — 1.9 Electronics Adjusted Operating Income $ 7.1 $ 11.7 stoneridge.com 27 © 2024
Slide 28: Reconciliation of Q2 2024 Adjusted Tax Rate
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Q2 2024 Adjusted Tax Rate (USD in millions) Q2 2024 Tax Rate Income Before Tax $ 1.9 Add: Pre-Tax Business Realignment Costs 1.9 Adjusted Income Before Tax $ 3.8 Income Tax Benefit (0.9) (50.6) % Add: Tax Impact from Pre-Tax Adjustmen
Slide 29: Reconciliation of Adjusted EBITDA for Compliance Calculation
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Adjusted EBITDA for Compliance Calculation (USD in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Income (Loss) Before Tax $ (8.1) $ (1.5) $ 4.4 3.2 (5.6) 1.9 Interest Expense, net 2.7 3.1 3.3 3.8 3.6 3.8 Depreciation and A
Slide 30: Reconciliation of Adjusted Cash and Debt for Compliance
US GAAP Reconciliations US GAAP Reconciliations Reconciliation of Adjusted Cash for Compliance Calculation (USD in millions) Q4 2023 Q1 2024 Q2 2024 Total Cash and Cash Equivalents $ 40.8 $ 48.4 $ 42.1 Less: 35% Cash Foreign Locations (12.8) (14.8) (12.5) Total Adjusted Cash (Compliance) $ 28.0 $ 33
Slide 31: stoneridge.com
stoneridge.com Stoneridge @StoneridgeInc StoneridgeGlobal © 2024