Slide 1: Stoneridge, Inc. Third Quarter 2013 Earnings Release Presentation
1 Stoneridge, Inc . Third Quarter 2013 Earnings Release Presentation October 31, 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 (cont'd)
Forward Looking Statements (cont’d) Also, see Rounding Differences Disclosure below 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
Slide 4: Sales, Gross Profit, & Op Income – 3Q12 vs 3Q13
Sales, Gross Profit, & Op Income – 3Q12 vs 3Q13 43.6 26.5 17.1 14.6 2.5 189.9 153.5 36.4 28.2 8.2 0% 20% 40% 60% 80% 100% Sales COGS Gross Profit SGA Op Income PST Core 3Q12 3Q13 SRI Variance millions SRI SRI excl PST PST Ops PST PPA SRI $ % Sales 219.3 189.9 43.6 0.0 233.5 14.3 6.5% COGS 168.0 153.
Slide 5: 2013 Achievable Goals & Objectives
2013 Achievable Goals & Objectives Top line growth – annual 6% to 8% goal Sustainable cost position with focus on continuous improvement Focused technology evolution to create new products and keep existing products competitive Strong Balance Sheet provides Stoneridge opportunities to make investmen
Slide 6: Manage the Cycles
Manage the Cycles Control Devices $73.1 Electronics $44.9 Wiring $71.9 PST $43.6 PST (Brazil ): Est 2012: $185 - $197 million 3Q13 Revenue by Business Unit Consolidated Sales : $233.5 million 2012 Guidance Core Sales (excl PST) $755 – $765 million 31.3% 18.7% 19.2% 30.8% Automotive Aftermarket Comme
Slide 7: Sales by Segment – 3Q13 vs 3Q12
Sales by Segment – 3Q13 vs 3Q12 CD ELEC WIRING PST SRI CD ELEC WIRING PST SRI Pass Car / Light Truck 57.9 0.5 0.9 0.0 59.3 48.5 0.8 0.1 0.0 49.5 Med / HD Truck 8.4 43.3 38.3 0.0 90.0 8.5 36.5 42.2 0.0 87.2 Ag 4.0 0.0 30.5 0.0 34.6 3.8 0.3 28.7 0.0 32.9 PST / Other 2.7 1.1 2.2 43.6 49.6 3.9 0.1 1.9 4
Slide 8: Sales by Segment – 3Q13 vs 2Q13
Sales by Segment – 3Q13 vs 2Q13 CD ELEC WIRING PST SRI CD ELEC WIRING PST SRI Pass Car / Light Truck 57.9 0.5 0.9 0.0 59.3 56.7 0.9 0.6 0.0 58.1 Med / HD Truck 8.4 43.3 38.3 0.0 90.0 11.1 46.3 41.5 0.0 98.8 Ag 4.0 0.0 30.5 0.0 34.6 2.3 0.0 28.8 0.0 31.1 PST / Other 2.7 1.1 2.2 43.6 49.6 4.4 1.5 2.1
Slide 9: 3Q12 vs 3Q13 EPS Bridge
3Q12 vs 3Q13 EPS Bridge PST Impacts SRI Core TOTAL Volume 0.05 0.11 0.16 Direct Material (0.04) 0.05 0.01 Copper 0.00 0.01 0.01 FX 0.00 0.06 0.06 Wiring Labor / Mix / Other 0.00 (0.13) (0.13) SGA Drop / Cost Reduction 0.01 0.04 0.05 PST Cost Reduct / Purchase Acctg 0.01 0.00 0.01 TOTAL 0.03 0.14 0.1
Slide 10: PST Purchase Price Accounting Expense [Non Cash]
PST Purchase Price Accounting Expense [Non Cash] (millions) Q1 Q2 Q3 Q4 Full Year 2012 1Q 2Q 3Q Est. 2013 COGS / DM Inventory Write Up $1.8 $1.4 $0.0 $0.0 $3.2 $0.0 $0.0 $0.0 $0.0 COGS / Depreciation – Fixed Asset Write Up $0.4 $0.3 $0.3 $0.3 $1.3 $0.3 $0.3 $0.3 $1.0 SGA / Amortized Intangibles $1.0
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 Electronics 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 Electronics 0.0 0.
Slide 12: Improving Direct Material Costs in 2H12
Improving Direct Material Costs in 2H12 1Q12 2Q12 1 st Half 3Q12 4Q12 2 nd Half FY 2012 1Q13 2Q13 3Q13 SRI excl PST Direct Material 56.2% 56.7% 56.4% 56.0% 54.9% 55.4% 56.0% 53.9% 53.7% 54.5% PST Direct Material * 38.0% 37.8% 37.9% 37.0% 32.1% 34.5% 36.2% 34.9% 35.6% 40.5% * Excludes Purchase Accoun
Slide 13: Cash Flow
USD [millions] 2011 1Q12 2Q12 3Q12 4Q12 2012 1Q13 2Q13 3Q13 Actual Actual Actual Actual Actual Actual Actual Actual Actual Beginning Cash 72.0 78.7 42.9 39.2 35.6 78.7 44.6 46.7 37.0 Consolidated Net Income 45.5 5.7 (5.3) 0.6 2.7 3.7 4.3 6.4 5.5 Depreciation / Amortization 20.0 9.0 9.1 9.0 8.3 35.3
Slide 14: Debt / Net Debt
Debt / Net Debt (millions USD) 2011 1Q12 2Q12 3Q12 2012 1Q13 2Q13 3Q13 Total Debt $267.1 $253.2 $244.9 $222.3 $201.4 $211.2 $199.3 $196.7 Net Debt $188.4 $210.2 $205.8 $186.7 $156.8 $164.4 $162.3 $150.6 Total Debt / LTM Adj.EBITDA 3.5 x 1 2.9 x 3.2 x 2.7 x 2.6 x ABL Balance $38.0 $31.0 $25.0 $11.0 $
Slide 15: 2013 Guidance
2013 Guidance Sales [millions] Operating Margin EPS Gross Margin Core $765 - $785 21.5% - 23.0% 4.5% – 5.5% PST (2013 F/X 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
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