Slide 1: Fourth Quarter 2012 Earnings Release Presentation
1 Stoneridge, Inc . Fourth Quarter 2012 Earnings Release Presentation March 1, 2013 Exhibit 99.2
Slide 2: Forward Looking Statements
Statements in this presentation that are not historical facts (including, but not limited to, 2013 net sales guidance) 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 stateme
Slide 3: Forward Looking Statements (con't)
Forward Looking Statements ( con’t ) These factors should not be construed as exhaustive and should be considered with the other cautionary statements in Stoneridge’s filings with the Securities and Exchange Commission. Forward - looking statements are not guarantees of future performance; Stoneridg
Slide 4: Sales, Gross Profit, & Op Income – 4Q11 vs 4Q12
Sales, Gross Profit, & Op Income – 4Q11 vs 4Q12 4Q11 4Q12 SRI Variance millions SRI Core PST Ops PST PPA SRI $ % Sales 186.0 178.3 44.5 0.0 222.7 36.7 19.7% COGS 153.7 143.1 24.8 0.3 168.1 14.4 9.4% Gross Profit 32.3 35.2 19.7 (0.3) 54.6 22.3 69.0% GP % to Sales 17.4% 19.7% 44.3% 24.5% SGA 39.9 29.5
Slide 5: North American Light Vehicle Production
13,126 15,414 2011 2012 Thousands North American Light Vehicle Production Source: IHS January 2013 3,381 3,124 3,182 3,439 3,964 3,987 3,668 3,795 (7.6)% 1.9% 8.1% 15.3% 0.6% (8.0)% 3.5% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Thousands Auto Qtr vs Qtr % ∆ ↑ 17.4% Guidance de
Slide 6: N.A. Medium Duty Truck Production
166,998 185,026 2011 2012 N.A. Medium Duty Truck Production Source: LMC January 2013 (previous JD Power) 40,135 44,760 41,834 40,269 48,200 49,903 42,422 44,501 11.5% (6.5)% (3.7)% 19.7% 3.5% (15.0)% 4.9% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 NA N.A. Qtr vs Qtr % ∆ ↑ 10.8%
Slide 7: N.A. Heavy Duty Truck Production
255,488 279,003 2011 2012 N.A. Heavy Duty Truck Production Source: LMC January 2013 (previous JD Power) 51,501 60,569 68,482 74,936 77,779 78,298 64,946 57,980 17.6% 13.1% 9.4% 3.8% 0.7% (17.1)% (10.7)% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 NA N.A. Qtr vs Qtr % ∆ ↑ 9.2% Gui
Slide 8: W Europe Heavy Duty Truck Production
334,357 301,550 2011 2012 W Europe Heavy Duty Truck Production Source: LMC January 2013 (previous JD Power) 83,415 82,813 76,569 91,560 76,822 76,999 70,796 76,933 (0.7)% (7.5)% 19.6% (16.1)% 0.2% (8.1)% 8.7% Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Europe Europe Qtr vs Qtr %
Slide 9: Sales by Segment – 4Q12 vs 4Q11
Sales by Segment – 4Q12 vs 4Q11 4Q11 CD ELECT PST SRI CD ELECT PST SRI PassCar/Lt Truck 49.7 0.5 - 50.2 46.5 3.7 - 50.2 Med/HD Truck 6.1 80.5 - 86.6 6.3 90.9 - 97.2 Ag 3.7 32.5 - 36.2 3.9 30.7 - 34.7 Other 4.4 0.7 46.6 51.7 5.0 (0.9) - 4.0 Total 63.8 114.2 46.6 224.6 61.7 124.3 - 186.0 4Q12 Variance
Slide 10: Financial / Market Volatility Issues & Cost Initiatives Management Response
Financial / Market Volatility Issues & Cost Initiatives Management Response • Generated annualized benefits in 4Q12 of $6.0 million. • Estimated Incremental 2013 Year over Year Benefits of $5.2 million. North America & Europe Cost Initiatives Implemented in 2 nd & 3 rd Qtr Wiring Operations Improvem
Slide 11: Cost Initiatives / Benefits
Cost Initiatives / Benefits millions 1Q12 2Q12 3Q12 4Q12 FY 2012 Costs NA Wiring 0.0 0.0 (0.7) (0.4) (1.1) NA / European Instrumentation 0.0 0.0 (0.3) 0.0 (0.3) PST (0.3) (1.3) 0.0 0.0 (1.6) TOTAL Costs (0.3) (1.3) (1.0) (0.4) (3.0) Benefits NA Wiring 0.0 0.0 0.7 1.1 1.8 NA / European Instrumentatio
Slide 12: Purchase Price Accounting Expense [Non Cash]
Purchase Price Accounting Expense [Non Cash] (millions) Q1 Q2 Q3 Q4 E Full Year 2012 Est. 2013 COGS / DM Inventory Write Up $1.8 $1.4 $0.0 $0.0 $3.2 $0.0 COGS / Depreciation – Fixed Asset Write Up $0.4 $0.3 $0.3 $0.3 $1.3 $1.3 SGA / Amortized Intangibles $1.0 $1.1 $1.3 $1.3 $4.7 $4.7 TOTAL $3.2 $2.8
Slide 13: Improving Direct Material Costs in 2H12
Improving Direct Material Costs in 2H12 millions 1Q12 2Q12 1 st Half 3Q12 4Q12 2 nd Half FY 2012 Core Direct Material 56.2% 56.7% 56.4% 56.0% 54.9% 55.4% 56.0% PST Direct Material * 38.0% 37.8% 37.9% 37.0% 32.1% 34.5% 36.2% * Excludes Purchase Accounting • Commodity based material price decreases •
Slide 14: Wiring Plant Operations Continuous Improvements
Wiring Plant Operations Continuous Improvements DELIVERY Past Due Premium Freight Pieces $ % FY 2012 vs FY 2011 Current w/ all customers $(4.8) (75.5)% Labor Efficiency Mar 2011 vs. Dec 2011 2012 Count % Count % Headcount (1,075) (17.1)% (587) (12.8)% Wiring Business Productivity % % Mar 2011 vs. De
Slide 15: Sales, Gross Profit, & Op Income – 3Q12 vs 4Q12
Sales, Gross Profit, & Op Income – 3Q12 vs 4Q12 3Q12 4Q12 SRI Variance millions SRI Core PST Ops PST PPA SRI $ % Sales 219.3 178.3 44.5 0.0 222.7 3.5 1.6% COGS 168.0 143.1 24.8 0.3 168.1 0.1 0.1% Gross Profit 51.2 35.2 19.7 (0.3) 54.6 3.4 6.6% GP % to Sales 23.4% 19.7% 44.3% 24.5% SGA 44.6 29.5 15.2
Slide 16: Sales by Segment – 4Q12 vs 3Q12
Sales by Segment – 4Q12 vs 3Q12 3Q12 CD ELECT PST SRI CD ELECT PST SRI PassCar/Lt Truck 49.7 0.5 - 50.2 48.5 0.9 - 49.5 Med/HD Truck 6.1 80.5 - 86.6 8.5 78.7 - 87.2 Ag 3.7 32.5 - 36.2 3.8 30.9 - 34.8 Other 4.4 0.7 46.6 51.7 3.9 0.1 43.8 47.8 Total 63.8 114.2 46.6 224.6 64.8 110.7 43.8 219.3 4Q12 Var
Slide 17: 3Q12 vs 4Q12 EPS Bridge
3Q12 vs 4Q12 EPS Bridge PST Impacts SRI Core TOTAL Volume 0.01 0.03 0.04 Mix / Direct Material 0.03 (0.03) 0.00 FX 0.00 0.00 0.00 SGA Drop / Cost Reduction 0.00 0.05 0.05 PST Cost Reduct / Purchase Acctg (0.01) 0.00 (0.01) TOTAL 0.05 0.05 0.10 0.10 (0.01) 0.05 0.00 0.00 0.04 0.02 4Q12 Actual EPS PST
Slide 18: Cash Flow
Cash Flow 18 Stoneridge, Inc. ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL values in [millions] 2011 1Q12 2Q12 3Q12 4Q12 2012 Beginning Cash 72.0 78.7 42.9 39.2 35.6 78.7 Consolidated Net Income 45.5 5.7 (5.3) 0.6 2.7 3.7 Depreciation / Amortization 20.0 9.0 9.1 9.0 8.3 35.3 WC (45.4) (6.8) 8.6 5.6 25.
Slide 19: Debt / Net Debt
Debt / Net Debt (millions USD) 4Q11 1Q12 2Q12 3Q12 2012 Total Debt $267.1 $253.2 $244.9 $222.3 $201.4 Net Debt $188.4 $210.2 $205.8 $186.7 $156.8 Total Debt / EBITDA 3.5 x 1 2.9 x 3.3 x ABL Balance $38.0 $31.0 $25.0 $11.0 $0.0 Brazil Debt $54.1 $47.2 $43.8 $34.2 $24.4 EBITDA = Operating Income + Dep
Slide 20: 2013 Guidance
2013 Guidance Sales [millions] Operating Margin EPS Gross Margin Core $765 - $785 21.5% - 23.0% 4.5% – 5.5% PST (2013 Rate 2.05) $174 – $184 44.0% - 47.0% 4.5% - 5.5% * SRI $939 - $974 25.5% - 27.0% 4.5% - 5.5% * $0.75 - $0.95 8.4% - 9.2% EBITDA ** * Includes Purchase Accounting Expenses of $6.0 mil
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