Slide 1: Third-Quarter 2017 Results
Third - Quarter 2017 Results November 2, 2017 Exhibit 99.2
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: Overview of Achievements
3 Overview of Achievements x Continued strong performance at each segment x Control Devices growth led by emissions products, primarily in China, as well as actuation products globally x Electronics growth driven by outperformance at Orlaco as well as the launch of new driver information system prog
Slide 4: Financial Performance
4 Q3 Year to Date Sales Adjusted Gross Profit and % Margin Adjusted Operating Income and % Margin Adjusted EBITDA and % Margin $52.4 $72.3 10.0% 11.7% $45.0 $55.0 $65.0 $75.0 YTD 2016 YTD 2017 9.0% 11.0% 13.0% $18.6 $22.8 10.7% 11.2% $15.0 $20.0 $25.0 Q3 2016 Q3 2017 9.0% 11.0% 13.0% 15.0% $33.9 $51
Slide 5: Stoneridge Leadership Transition
5 Stoneridge Leadership Transition Control Devices is well positioned to expand on current success and drive growth through strong leadership and a well - defined strategic plan Mike Sloan, former President of Control Devices, announced he is planning to retire in early 2018 Bob Willig replaced Mike
Slide 6: Focus on Vehicle Megatrends
6 Focus on Vehicle Megatrends 2016 2017 2018 2019 2020 2021 Our focus on c ertain v ehicle m egatrends w ill d rive o ur long - term s trategy Source: Dec 2015 IHS; 2015 LMCA, ACT Research, Company Data INTELLIGENCE 8% CAGR SAFETY & SECURITY 7% CAGR EMISSIONS 16% CAGR FUEL EFFICIENCY 5% CAGR Stoneri
Slide 7: Stoneridge - A Vehicle Technology Company
7 Stoneridge - A Vehicle Technology Company Electrified Drivetrain Front - Axle Disconnect (Current) Decouples the front - axle in a 4x4 vehicle allowing 4x2 operation “on - the - fly” Smart Bar (Current) Axle - mounted smart actuator allowing increased performance in off - road driving situations I
Slide 8: China – A Platform for Growth
8 China – A Platform for Growth Strong financial performance Year to d ate s ales – Approximately $28 million (53% growth over 2016) Backlog suggests CAGR of over 20% from 2016 – 2020* World - class manufacturing facility in Suzhou Products, operations and engineering focused on “Asia - for - Asia”
Slide 9: 3rd Quarter 2017 Summary
9 Delivering on our commitments through market leading products, continuous improvement in all aspects of the organization, operating efficiency and strong financial performance Delivering 2 - 3x the growth of our underlying market Continuing to evolve to address market trends Leveraging our product
Slide 10: Financial Update
Financial Update Stoneridge
Slide 11: 3rd Quarter 2017 Financial Results
11 3 rd Quarter 2017 Summary 3 rd Quarter 2017 Financial Results Increased m idpoint sales guidance to $817.5 million Increased midpoint adjusted EPS guidance to $1.51 2017 Updated Guidance 2017 Guidance Previously Provided 2017 Guidance Updated* Midpoint Improvement Sales $795 - $815 Million $810 -
Slide 12: Control Devices Financial Performance
12 Q3 Year to Date Sales Operating Income and % Margin $47.1 $55.3 15.4% 16.1% $40.0 $45.0 $50.0 $55.0 $60.0 YTD 2016 YTD 2017 10.0% 20.0% 30.0% $15.3 $16.2 14.7% 15.1% $10.0 $12.0 $14.0 $16.0 $18.0 Q3 2016 Q3 2017 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% 24.0% 26.0% 28.0% 30.0% $306.4 $343.0 $300.
Slide 13: Electronics Financial Performance
13 Q3 Year to Date Sales Adjusted Operating Income and % Margin $12.1 $18.8 6.6% 7.9% $0.0 $10.0 $20.0 YTD 2016 YTD 2017 5.0% 7.0% 9.0% $3.7 $6.7 6.5% 8.4% $1.0 $3.0 $5.0 $7.0 Q3 2016 Q3 2017 4.5% 6.5% 8.5% 10.5% $182.9 $237.3 YTD 2016 YTD 2017 $57.3 $80.3 Q3 2016 Q3 2017 Electronics Financial Perfo
Slide 14: PST Financial Performance
14 Q3 Year to Date Sales Adjusted Operating Income and % Margin $22.3 $25.5 Q3 2016 Q3 2017 $0.0 $1.5 0.1% 5.8% $0.0 $0.5 $1.0 $1.5 $2.0 Q3 2016 Q3 2017 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% - $4.2 $3.4 - 6.9% 4.8% -$7.0 -$2.0 $3.0 YTD 2016 YTD 2017 -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 1
Slide 15: FY 2017 Updated Guidance
15 2017 Guidance Previously Provided 2017 Guidance Updated* Midpoint Improvement Sales $795 - $815 Million $810 - $825 Million $12.5 million Adjusted Gross Margin 30.0% - 31.0% 30.0% - 31.0% Adjusted Operating Margin 8.0% - 9.0% 8.0% - 9.0% Adjusted EPS $1.38 - $1.50 $1.48 - $1.54 $0.07 EPS Adjusted
Slide 16: 3rd Quarter 2017 Financial Summary
16 All segments exceeded expectations for financial performance Control Devices – 4 % sales growth, 6% operating income growth vs. Q3 2016 Electronics – 40% sales growth, 80% adjusted operating income growth vs. Q3 2016 PST – 14% sales growth, $ 1.5 million adjusted operating income growth vs. Q3 20
Slide 17: Thank You
Thank You Stoneridge
Slide 18: Appendix
18 Appendix
Slide 19: 2017 Q3 Adjustments
19 2017 Q3 Adjustments The expense resulting from the step - up in the fair value of the earn - out due to Orlaco outperformance was $1.8 million resulting in an EPS adjustment of $ 0.06 The expense related to the step - up in the fair value of the earn - out related to the acquisition of the remain
Slide 20: Income Statement (Unaudited)
20 Income Statement (Unaudited) (in thousands, except per share data) 2017 2016 2017 2016 Net sales $ 203,582 $ 173,846 $ 617,004 $ 523,365 Costs and expenses: Cost of goods sold 141,033 124,098 429,890 375,705 Selling, general and administrative 37,277 27,817 107,247 82,836 Design and development 1
Slide 21: Segment Financial Information
21 Segment Financial Information 2017 2016 2017 2016 Net Sales: Control Devices $ 106,842 $ 103,700 $ 339,716 $ 304,957 Inter-segment sales 1,118 430 3,269 1,448 Control Devices net sales 107,960 104,130 342,985 306,405 Electronics 71,354 47,804 206,769 158,201 Inter-segment sales 8,959 9,495 30,538
Slide 22: Balance Sheet
22 Balance Sheet CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, (in thousands) 2017 2016 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 50,791 $ 50,389 144,475 113,225 Inventories, net 78,643 60,117 Prepaid expenses and other current assets 23,264 17,162 Total curre
Slide 23: Statement of Cash Flows
23 Statement of Cash Flows CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine months ended September 30, (in thousands) 2017 2016 OPERATING ACTIVITIES: Net income $ 26,141 $ 27,085 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 15,922 14,
Slide 24: Statement of Cash Flows (Cont.)
24 Statement of Cash Flows (Cont.) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine months ended September 30, (in thousands) 2017 2016 FINANCING ACTIVITIES: Acquisition of noncontrolling interest, including transaction costs (1,848) - Revolving credit facility borrowings 91,000 - Re
Slide 25: Reconciliations to US GAAP
25 Reconciliations to US GAAP
Slide 26: Reconciliations to US GAAP
26 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 27: Reconciliations to US GAAP
27 Reconciliations to US GAAP Reconciliation of Stoneridge Adjusted Gross Profit (USD in millions) Q3 2017 YTD 2017 Gross Profit $62.6 $187.1 Add: Pre-Tax Step-Up in Acquired Inventory from Orlaco - 1.6 Adjusted Gross Profit $62.6 $188.8 Reconciliation of Stoneridge Adjusted Operating Income (USD in
Slide 28: Reconciliation of Q3 Adjusted EBITDA
28 Reconciliations to US GAAP Reconciliation of Q3 Adjusted EBITDA (USD in millions) Q3 2017 YTD 2017 Q3 2016 YTD 2016 Income before tax $11.9 $39.7 $10.9 $30.2 Interest expense, net 1.5 4.4 1.7 5.0 Depreciation and amortization 7.1 20.7 6.0 17.1 EBITDA $20.5 $64.8 $18.6 $52.4 Add: Pre-Tax Step-Up i