Stoneridge, Inc. · NYSE:SRI
Stoneridge — BB&T Capital Markets Conference (February 2015)
38 slides from Stoneridge's conference presentation, Feb 10, 2015
Slide 1: Technologies in Motion
BB&T Capital Markets February 11, 2015 TECHNOLOGIES IN MOTION Exhibit 99.2
Slide 2: Forward Looking Statements
2 STONERIDGE 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 fa
Slide 3: Stoneridge Overview
TECHNOLOGIES IN MOTION STONERIDGE OVERVIEW 3 Serving Expanding Markets with Innovative Technologies Demonstrated Organic Growth / Strong Order Book Global Growth with Customers of Choice Leverage of Low Cost Regional Advantages Strong Cash Position for Growth & Acquisitions
Slide 4: Stoneridge Overview
4 STONERIDGE OVERVIEW Stoneridge designs and manufactures highly engineered sensing, communication, and c ontrol technologies to satisfy the global vehicle market needs for lower emissions, improved fuel economy, safety, security and information. We are Fast, Focused and Flexible.
Slide 5: Stoneridge Overview
5 ▪ Switches & Actuators ▪ Sensors: Temperature, Rotational Speed, Pressure, Fluid Level ▪ Emission Reduction and Solenoid Control Devices ▪ Driver Information Systems ▪ Telematic Systems ▪ Advanced Modules (ECU) ▪ Power & Switch Modules ▪ Tachograph Systems Minda Stoneridge Instruments (JV, India)
Slide 6: Overview
STONERIDGE OVERVIEW 2013 Revenue $ 659 M ; CAGR 21% [2010 - 2013] 2013 EBITDA $72 M; 10.9% to Sales POSITIVE FINANCIAL RESULTS Engineering & Capital Investment 9% of 2013 Sales Organic Growth $130M Net New Business [2015 – 2019] Emerging Market Growth 16% CAGR Expected [2014 – 2019] INVESTMENT IN GR
Slide 7: Major External Trends Influencing Stoneridge
STONERIDGE MACRO TRENDS FUEL EFFICIENCY/ EMISSIONS REGULATIONS SAFETY & SECURITY TRENDS & REGULATIONS VEHICLE ELECTRONICS CONTENT EMERGING MARKETS DRIVING GROWTH 7 MAJOR EXTERNAL TRENDS INFLUENCING STONERIDGE
Slide 8: Fuel Efficiency / Emissions Regulations
STONERIDGE FUEL EFFICIENCY/ EMISSIONS REGULATIONS TURBO ACTUATOR SOOT SENSOR TURBO TEMP SENSOR SHIFT BY WIRE 8 Improves engine performance Enables reduction of carbon emissions Improves engine management efficiency Reduces weight / Improves fuel efficiency Stoneridge is…. ▪ Developing innovative tec
Slide 9: Safety & Security
STONERIDGE SAFETY & SECURITY SEAT TRACK POSITION PARKING ASSIST TRACK & TRACE SPEED SENSORS 9 Improves Vehicle Safety / Reduces Accidents Enhances Driver Safety and Security Improves Active Restraint Systems Enables ABS & Vehicle Stability Stoneridge is…. ▪ Providing high reliability products for sa
Slide 10: Stoneridge Vehicle Electronics Content
MIRROR REPLACEMENT TELEMATICS EMERGING MARKET INSTR. TACHOGRAPH 10 Reduces fuel consumption / Improves visibility Enhances vehicle diagnostics & efficiency Improve vehicle performance & endurance Reduces accidents & costs Stoneridge is…. ▪ Applying our electronics hardware and software integration i
Slide 11: Emerging Markets Driving Growth
STONERIDGE EMERGING MARKETS DRIVING GROWTH Significant growth in planning horizon Servicing Global Platforms in region 11 Stoneridge is…. ▪ Expanding our presence in emerging markets (China, India..) through local technical and manufacturing support ▪ Developing products that are adapted to the need
Slide 12: Macro Trends
STONERIDGE MACRO TRENDS 12 External trends drive Stoneridge global product, technology and applications focus
Slide 13: Stoneridge Business Overview
13 STONERIDGE BUSINESS OVERVIEW North America 47% South America 26% Europe / Asia 27% REGION 2013 $660M NOTE: D oes not include revenue from India JV, Proforma to exclude Wiring PassCar Lt Truck 35% Comm'l Vehicle 33% Ag 2% After market 30% SERVED MARKETS Control Devices 44% PST 29% Electronics 27%
Slide 14: Stoneridge Control Devices
Sensors ▪ Temperature ▪ Speed ▪ Position ▪ Power Take - Off Unit ▪ Front Axel Disconnect ▪ Shift - By - Wire ▪ Turbo Charger Actuator Electronic Actuators ▪ Fluid Level ▪ Pressure ▪ Interior ▪ Exterior ▪ Hidden Switches ▪ Canister Vent Solenoid (CVS) ▪ CVS Gen2 ▪ Fuel Tank Isolation Valve (FTIV) ▪ 3
Slide 15: Control Devices
STONERIDGE CONTROL DEVICES 15 ▪ Lowered B/E point achieved through restructuring the business during the industry downturn in 2009. Leveraged advantage. ▪ Continued execution of Low Cost Manufacturing strategy coupled with regional supply chain development to further reduce costs ▪ Product portfolio
Slide 16: Stoneridge Electronics
Driver Information ▪ Instrument Clusters ▪ Display Systems ▪ Power Distribution ECUs ▪ Switch Modules ▪ Electronics for Actuators & Sensors (SRI CD) Tachograph Systems ▪ Telematic On - board Units ▪ Advanced Body & Cab ECUs ▪ Advanced Door Modules ▪ Alarm & Locking Advanced Modules & Telematics Powe
Slide 17: Electronics
STONERIDGE ELECTRONICS 17 ▪ A strategic partner to leading Commercial Vehicle manufacturers, workshops and vehicle owners ▪ Enhanced core competency in vehicle electrical architectures ▪ Apply leading technology integrating hardware and software ▪ Develop cost efficient, flexible, high performing pr
Slide 18: Stoneridge PST
▪ Instrument Clusters ▪ Display Systems ▪ Car Audio ▪ Smart functions to Power Window lift ▪ Interface with alarm system allowing to open or close automatically the window ▪ Anti - Pinch Protection Electronic Controls Units ▪ Telematic On - board Units ▪ Track & Trace Systems ▪ Track & Trace Service
Slide 19: PST
STONERIDGE PST 19 ▪ Electronics business with innovative technical and service solutions ▪ Track & Trace network covers Brazil with unique advantages ▪ Aftermarket business today is expanding in Infotainment ▪ Restructured in Q2 - 14 & Q3 - 14 to respond to the economic conditions in Brazil ▪ Econom
Slide 20: PST Cost Improvement
STONERIDGE PST COST IMPROVEMENT 20 Right - Sized Organization / Lowered B/E Competitive Audio product offering = # 2 market position * Annualized benefit vs. current costs Cost 2014 Benefits * 2015 Benefits * R$ USD$ R$ USD$ R$ USD$ 2014 Actions / Benefits April – Reduction of 164 Hourly Employees a
Slide 21: PST Growth Opportunities
STONERIDGE PST GROWTH OPPORTUNITES 21 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 Ret
Slide 22: Stoneridge Global System Capability
22 STONERIDGE GLOBAL SYSTEM CAPABILITY Vehicle Interface Driver Interface Information Processing Sensing Control Communication Stoneridge offers unique capability throughout the value chain Integrated Solutions Powered By Electronics & Software
Slide 23: Stoneridge Global Reach
23 STONERIDGE GLOBAL REACH 13 Manufacturing Sites 20 Engineering & Technical Support Centers Includes India JV
Slide 24: Diversified Vehicle Markets
STONERIDGE DIVERSIFIED VEHICLE MARKETS 24 Source: Dec 2014 IHS; Oct 2014 LMCA, ACT Research, Company Data (2014) 2015 2016 2017 2018 2019
Slide 25: Market Segments Drive Growth
STONERIDGE MARKET SEGMENTS DRIVE GROWTH INTELLIGENCE 8% CAGR SAFETY & SECURITY 7% CAGR EMISSIONS 16% CAGR FUEL ECONOMY 5% CAGR 25 ELECTRONICS COMMUNICATIONS We are focused on growth markets Stoneridge Sales Growth NOTE: Excludes Wiring 2014 TTM 2015 2016 2017 2018 2019 SOURCE: Dec 2014 IHS; Oct 2014
Slide 26: Market Segments Drive Growth
STONERIDGE MARKET SEGMENTS DRIVE GROWTH INTELLIGENCE 8% CAGR SAFETY & SECURITY 7% CAGR EMISSIONS 16% CAGR FUEL ECONOMY 5% CAGR 26 ELECTRONICS COMMUNICATIONS Instrumentation ECU Power Modules Door Modules Tachograph Infotainment Seat Track Position Speed Trailer Tow Alarms Parking Assist Telematics T
Slide 27: Stoneridge Content Per Vehicle
27 STONERIDGE CONTENT PER VEHICLE 2014 2015 2016 2017 2018 2019 MEDIUM / HD CAR / LT TRUCK SOURCE: Company Estimates
Slide 28: Stoneridge Customers
10% 8% 6% 6% 5% 4% 3% 3% 2% 18% 24% STONERIDGE CUSTOMERS 28 FORD SCANIA GM DAIMLER TRACK & TRACE SERVICES (PST) OTHER OEMS TIER 1’s & AFTERMARKET NAVISTAR VOLVO MAN FIAT CHRYSLER PST: OTHER PRODUCTS 2013 Revenue (excludes Wiring) CUSTOMERS OF CHOICE
Slide 29: Stoneridge Competition
29 STONERIDGE COMPETITION Control Devices Electronics PST Differentiating Technologies / Competitive Advantages New Markets • EGT – High Temp • Soot Unique Technology • Large awards with global applications (Shift by Wire) • Driver Information • Advanced Modules • Power & Switch M odules • Tachograp
Slide 30: Historic Growth Success
STONERIDGE HISTORIC GROWTH SUCCESS 2012 30 Note: Results (1) reflect market recovery (2) without Wiring, (3) reflect PST consolidation in 2012, (4) do not include Minda - Stoneridge JV in India 2014 2010 2011 2013 - 100 200 300 400 500 600 700 Stoneridge Sales Growth 2013 2014 TTM 2012 2011 2010
Slide 31: Stoneridge Global Organic Sales Growth
2013 2019 North America Europe South America Asia/Pacific Includes JV STONERIDGE GLOBAL ORGANIC SALES GROWTH 2019 31
Slide 32: Stoneridge Net New Business
32 STONERIDGE NET NEW BUSINESS 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 TTM 2014 Sales $440
Slide 33: Stoneridge Compelling Growth
Sensing Communications Control Emissions Fuel Economy Intelligence Safety & Security SRI GROWTH BY MARKET SEGMENT SRI GROWTH BY PRODUCT FAMILY STONERIDGE COMPELLING GROWTH 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 2014 2019 33 Source: Company Revenue Projections CAGR 10 % CAGR 22%
Slide 34: Other Financials
STONERIDGE OTHER FINANCIALS 34 121 185 206 197 2011 2012 2013 TTM 09/14 GROSS MARGIN [ Proforma excludes Wiring] millions PRIMARY WORKING CAPITAL % TTM SALES [ Proforma excludes Wiring] 28% 14% 12% 14% 41% 36% 38% 43% 2011 2012 2013 TTM 09/14 SRI excl Wiring & PST PST (4) 34 25 (1) 2011 2012 2013 TT
Slide 35: Other Financials: Debt Leverage
STONERIDGE OTHER FINANCIALS 35 DEBT LEVERAGE 4.1x 2.8x 3.2x 2012 2013 TTM 09/14 Debt Leverage: Proforma excludes PST Purchase Price Accounting & Wiring EBITDA = Op Income + Depreciation + Amortization + Non - Depreciation / Amortization Purchase Accounting 100 175 300 Previous Structure Current Stru
Slide 36: Other Financials: Currency Implications
STONERIDGE OTHER FINANCIALS 36 Currency Implications 2014 AVG 2015 PLAN Devaluation vs USD # Devaluation vs USD % Actions EURO EUR / USD 0.754 0.885 (0.131) (17.4)% Hedged 50% of Transactional Exposure USD / EUR 1.329 1.130 SEK SEK / USD 6.862 8.180 (1.318) (19.2)% Hedged 50% of Transactional Exposu
Slide 37: 2015 Guidance
STONERIDGE 2015 GUIDANCE 37 Sales: $667 - $687 million Gross Margin: 28% - 30% Op Margin: 4% - 6% EPS: $0.77 - $0.92 Rate Assumptions 2015 Plan BRL / USD 2.700 MXN / USD 14.640 USD / EUR 1.130 SEK / USD 8.180 37
Slide 38: Stoneridge Value Proposition
TECHNOLOGIES IN MOTION STONERIDGE VALUE PROPOSITION 38 Serving Expanding Markets with Innovative Technologies Demonstrated Organic Growth / Strong Order Book Global Growth with Customers of Choice Leverage of Low Cost Regional Advantages Strong Cash Position for Growth & Acquisitions
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