Stoneridge, Inc. · NYSE:SRI
Stoneridge — Deutsche Bank Auto Conference 2018
26 slides from Stoneridge's conference presentation, Jan 16, 2018
Slide 1: Deutsche Bank Auto Conference
Deutsche Bank Auto Conference January 16, 2018 Exhibit 99.1
Slide 2: Forward-Looking Statements
2 Forward - Looking Statements Statements in this presentation that are not historical facts are forward - looking statements, which involve risks and uncertaint ies that could cause actual events or results to differ materially from those expressed or implied by the statements. Important factors th
Slide 3: Creating Value for Our Shareholders
3 Creating Value for Our Shareholders Stoneridge is a well - established, global, automotive technology company Over the prior 3 years we have delivered shareholder return that has outpaced our peer group and the overall market Our executive team is comprised of industry leaders capable of driving g
Slide 4: About Stoneridge
4 About Stoneridge 11 Manufacturing locations on 4 continents 18% 1965 NYSE: SRI $ 3.45 billion 5 - year Backlog Q3YTD Revenue g rowth Stoneridge is an established, global company with a well diversified product portfolio, strong historical financial performance and a robust 5 - year backlog Q3YTD A
Slide 5: Robust Financial Performance
5 Robust Financial Performance *2017 based on midpoint of guidance provided on January 16, 2018 **Peer Group includes the comparator group from most recent proxy statement 3 - year sales CAGR of 12.9%* 3 - year adjusted gross margin improvement from 27.4% to 30.5%* 3 - year adjusted EBITDA CAGR of 4
Slide 6: Our Current Leadership
6 Our Current Leadership Thomas A. Beaver VP & President Global Sales Alisa A. Nagle Chief Human Resources Officer Tony L. Moore Vice President Operations Dan Kusiak Vice President Global Procurement Stephen Fox Vice President Business Development Jonathan B. DeGaynor CEO & President Stoneridge Inc.
Slide 7: Leadership Team Capable of Driving Global Growth
7 Leadership Team Capable of Driving Global Growth March 2015: Jon DeGaynor joined Stoneridge as President and CEO December 2015: Dan Kusiak joined Stoneridge as the Vice President of Global Procurement January 2017 : Stoneridge completed the acquisition of Orlaco, a leading supplier of vehicle came
Slide 8: Stoneridge - A Vehicle Technology Company
8 Stoneridge - A Vehicle Technology Company We focus on industry megatrends that will drive growth 2 - 3x our underlying markets Migrating toward smart products will continue to drive growth through increased vehicle content 40% 45% 50% 55% 60% 65% 70% 75% 2013 2014 2015 2016 2017 Preliminary Smart
Slide 9: Driver Information Systems
9 Stoneridge - A Vehicle Technology Company Driver Information Systems Commercial vehicle instrument clusters are following passenger car trends and becoming fully configurable, display - based driver information systems Stoneridge is one of the global leaders in commercial vehicle driver informatio
Slide 10: Actuation Systems
10 Stoneridge - A Vehicle Technology Company Actuation Systems Our actuation technologies will drive growth in traditional drivetrains and the electrified drivetrains of the future Park - by - wire developed for hybrid and fully electric drivetrains as an extension of our shift - by - wire actuator
Slide 11: MirrorEye
11 Stoneridge - A Vehicle Technology Company Mirror Eye TM Commercialization – OEMs $250 Million annual OEM market opportunity through our traditional sales channels Commercialization – Fleets / Retrofit Fleets trials on - going with 18 fleets globally (350,000+ miles driven in US with Mirror Eye TM
Slide 12: Stoneridge Passenger Car / Light Truck Content
12 Stoneridge Passenger Car / Light Truck Content Ford F - Series Trailer Tow Connector, Canister Vent Valve, Rotary 4x4 Control Switch, Seat Track Position Sensor Exhaust Gas, Cylinder Head, Engine Coolant & Exhaust Gas Recirculation Temperature Sensors Buick LaCrosse Shift by Wire / Transmission R
Slide 13: Stoneridge Commercial Vehicle Content
13 Stoneridge Commercial Vehicle Content PACCAR Tachograph, High Temperature Sensor, Power & Switch Module Daimler Instrument Cluster, Tachograph, High Temperature Sensor, Power & Switch Module, Telematics MAN Instrument Cluster, Telematics, Tachograph, Power & Switch Module, ECU Navistar Instrument
Slide 14: Financial Summary
14 Financial Summary
Slide 15: Financial Performance and Guidance
15 Year to Date (through Q3) 2017 Guidance (As of Q3) 2017 Guidance (Updated) Sales $810 - $825 Million $820 - $825 Million Adjusted Gross Profit and % Margin 30.0% - 31.0% 30.0% - 31.0% Adjusted Operating Income and % Margin 8.0% - 9.0% 8.0% - 9.0% Adjusted EBITDA and % Margin 11.5% - 12.5% 11.5% -
Slide 16: Business Share by Segment and Region
16 Business Share by Segment and Region We continue to diversify our product portfolio and geographic exposure through organic and inorganic growth opportunities Business Segments ( 2017 Preliminary) Regions ( 2017 Preliminary )* *Regional sales based on manufactured location. Based on preliminary 2
Slide 17: Business Share by Customer
17 Business Share by Customer 2017 Preliminary We are well diversified in our customer exposure. Approximately 75% of sales are attributable to OEM customers which comprise forecasted backlog. *Does not include revenue from Minda - Stoneridge JV, Based on preliminary 2017 estimates. Actual results m
Slide 18: Awarded Business: 2018 – 2022
18 Awarded Business: 2018 – 2022 $2,984 $3,448 $17 $3,001 ($619) $1,066 Backlog (as of Jan. 2017) Currency Backlog (Adj. for FX) Preliminary 2017 OEM Sales 2017 Additions to Backlog 12/31/2017 Backlog (Dollars in Millions) Based on preliminary 2017 estimates. Actual results may differ. Backlog of $3
Slide 19: 2018 Full Year Volume Outlook
19 *Excluding Orlaco and PST ** Regional sales based on manufactured location SOURCE : Dec 2017 IHS; Q4 2017 LMC, Company Data 2018 Full Year Volume Outlook Stoneridge is well positioned to take advantage of strong performing regions and end markets Passenger Car* Sales by End Market ( 2017 Prelimin
Slide 20: Expected Impact of Tax Reform in 2018
20 Expected Impact of Tax Reform in 2018 2017 Guided Effective Tax Rate Expected Impact of Tax Reform Immediate Expensing of Capital Expenditures 2018 Preliminary Outlook 30% – 35% Given our geographic earnings profile, a reduction to the corporate tax rate in the US is beneficial in reducing our ex
Slide 21: Strong Capital Structure
21 Strong Capital Structure Current Cap Structure Debt and Leverage Levels Debt / EBITDA We will continue t o r eview the b est use o f our capital structure in order to m aximize shareholder v alue *Net availability does not consider approximately $3 million related to letters of credit 1.9x 1.6x 1
Slide 22: FY 2018 Preliminary Guidance
22 FY 2018 Preliminary Guidance Does not include the impact of tax reform > $1.65 2017 Guidance Sales Adjusted Earnings Per Share New Business Launches Pricing 2018 Preliminary Outlook Wage / Benefit Inflation Production Volumes Currency Production Volumes $ 840m – $ 860m Aftermarket / Retrofit Curr
Slide 23: Summary
23 Summary 2017 We have established a culture of continuous improvement resulting in strong financial performance Due to an expected strong Q4 we are raising our 2017 sales and EPS guidance to reflect the high - end of our previously guided range Future We have a robust 5 - year backlog. Our awarded
Slide 24: Reconciliations to US GAAP
24 Reconciliations to US GAAP
Slide 25: Reconciliations to US GAAP
25 Reconciliations to US GAAP 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 GAAP financial me
Slide 26: Reconciliation of Adjusted Operating Income, Gross Profit and EBITDA
26 Reconciliations to US GAAP Reconciliation of Stoneridge Adjusted Operating Income (USD in millions) Q3 2017 Q3 YTD 2017 Operating Income $13.3 $44.1 Add: Pre-Tax Step-Up in Acquired Inventory from Orlaco - 1.6 Add: Pre-Tax Step-Up in Fair Value of Earn-Out (Orlaco) 1.8 3.9 Add: Pre-Tax Step-Up in