Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — Q1 2023 Earnings Presentation
22 slides from Cooper-standard's earnings presentation, May 4, 2023
Slide 1: Creating Sustainable Solutions Together
Creating Sustainable Solutions TOGETHER First Quarter 2023 Earnings Presentation May 4, 2023
Slide 2: Agenda
Agenda Introduction Roger Hendriksen | Director, Investor Relations First Quarter Summary Jeff Edwards | Chairman and Chief Executive Officer Financial Overview Jon Banas | Executive VP and Chief Financial Officer Strategic Overview and Outlook Jeff Edwards Q&A 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of U.S. federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Our use of words “estimate,” “expect,” “anticipate,” “project,” “pl
Slide 4: First Quarter Summary
First Quarter Summary Jeff Edwards, Chairman and CEO 4
Slide 5: Q1 2023 Highlights
Q1 2023 Highlights Continuing Strong Operating Performance, Production Volume Ramp Up Mixed 99% World-class Quality 96% World-class Service 43 World-class Safety Green Customer Scorecards Green Launch Scorecards Plants with 0 Incidents (YTD) $8m 94.2% $18m Manufacturing/Purchasing Gross Margin Impro
Slide 6: Quality and Service Garner Recognition, Drive Opportunity
Quality and Service Garner Recognition, Drive Opportunity GM Supplier of the Year – Fuel and Brake Delivery “We are proud to be again recognized by General Motors for our commitment to sustainable solutions that meet the needs of the evolving mobility industry.” 6
Slide 7: Financial Overview
Financial Overview Jon Banas, Executive VP and CFO 7
Slide 8: Financial Results
Financial Results (USD millions, except per share amounts) Three Months Ended March 31, 2023 2022 Sales $ 682.5 $ 613.0 Gross Profit (Loss) $ 41.8 $ 21.5 % Margin 6.1 % 3.5 % Adjusted EBITDA1 $ 12.5 $ 0.1 % Margin1 1.8 % —% Income Tax Expense/(Benefit) $ 0.4 $ 0.7 Effective Tax Rate % (0.3)% (1.1)%
Slide 9: Q1 2023 Bridge Analysis
Q1 2023 Bridge Analysis (USD millions) Sales Adjusted EBITDA1 $0 $0 2 2 1 See Appendix for definitions and reconciliation to U.S. GAAP 2 Net of customer price adjustments. Includes impact of material cost and inflation recoveries. Totals may not add due to rounding 9
Slide 10: Continuing Solid Liquidity
Continuing Solid Liquidity Free Cash Flow1 Liquidity - March 31, 2023 (millions) (millions) Three Months Ended March 31, 2023 2022 Net cash provided by (used in) operating activities $ 30.4 $ (12.2) ABL availability Capital expenditures (29.3) (32.3) Free cash flow $ 1.1 $ (44.5) Cash on hand Curren
Slide 11: Strategic Overview and Outlook
Strategic Overview and Outlook Jeff Edwards, Chairman and CEO 11
Slide 12: Strong Customer Relationships Continue to Support Enhanced Commercial Agreements
Strong Customer Relationships Continue to Support Enhanced Commercial Agreements • Established index-based agreements with additional customers, further limiting exposure to material cost fluctuations • Continuing negotiations with all customers to address on-going non-material cost inflation and su
Slide 13: Transformative Advanced Digital Tools Driving Value
Transformative Advanced Digital Tools Driving Value Increasing Efficiency, Productivity and New Business Awards PRE-PRODUCTION TOOLS MANUFACTURING TOOLS Design by Analysis, Virtual Validation, Fomulink Pulse OEE, WAT, eAndon, Liveline Technologies® Value Creation 109 bps 322 bps Since 2020 Engineeri
Slide 14: Corporate Responsibility Report - Coming Soon
Corporate Responsibility Report - Coming Soon Bringing awareness to the ethical, environmental, philanthropic and economic impact from Cooper Standard over the past year. 14
Slide 15: Outlook - Expect Improved Results in Remaining Quarters of 2023
Outlook - Expect Improved Results in Remaining Quarters of 2023 Key Performance Drivers and Assumptions: Continued modest increases in global light vehicle production volume Moderating inflationary pressures Current full-year forecast: Global oil production cuts and tight labor availability 15.0m un
Slide 16: G CooperStandard
G CooperStandard 16
Slide 17: Appendix
G CooperStandard 17
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted earnings (loss) per share and free cash flow are measures not recognized under U.S. GAAP and which exclude certain non-cash and special items that may obscure trends and operating perfor
Slide 19: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation (Unaudited, dollar amounts in thousands) Three Months Ended March 31, 2023 2022 Net loss attributable to Cooper-Standard Holdings Inc. $ (130,367) $ (61,360) Income tax (benefit) expense 358 652 Interest expense, net of interest income 30,220 18,177 Deprecia
Slide 20: Adjusted Net Loss and Adjusted EPS
Adjusted Net Loss and Adjusted EPS (Unaudited, dollar amounts in thousands except share and per share amounts) Three Months Ended March 31, 2023 2022 Net loss attributable to Cooper-Standard Holdings Inc. $ (130,367) $ (61,360) Restructuring charges 2,379 7,831 Deconsolidation of joint venture (1) —
Slide 21: Adjusted EBITDA Margin, Financial Ratios
Adjusted EBITDA Margin, Financial Ratios Twelve Months Ended March 31, 2023 (Unaudited, dollar amounts in thousands) Twelve Months Ended Q2 2022 Q3 2022 Q4 2022 Q1 2023 March 31, 2023 Net loss attributable to Cooper-Standard Holdings Inc. $ (33,247) $ (32,686) $ (88,091) $ (130,367) $ (284,391) Inco
Slide 22: Free Cash Flow
Free Cash Flow (Unaudited, dollar amounts in thousands) Three Months Ended March 31, 2023 2022 Net cash provided by (used in) operating activities $ 30,379 $ (12,213) Capital expenditures (29,263) (32,314) Free cash flow $ 1,116 $ (44,527) 22
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