Slide 1: Second-Quarter 2017 Results
Second - Quarter 2017 Results August 3, 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 Record quarterly sales, gross profit and operating income for current operations x All segments exceeded expectations x One of three global suppliers to receive a 2016 Safe Pillar Award from Ford for achieving excellence in quality, cost, performance and delivery related
Slide 4: Financial Performance
4 Financial Performance Q2 Year - to - Date Sales Adjusted Gross Profit and % Margin Adjusted Operating Income and % Margin Adjusted EBITDA and % Margin $33.8 $49.5 9.7% 12.0% $25.0 $35.0 $45.0 YTD 2016 YTD 2017 8.0% 10.0% 12.0% 14.0% $22.1 $36.0 6.3% 8.7% $13.0 $23.0 $33.0 YTD 2016 YTD 2017 4.5% 9.
Slide 5: Focus on Vehicle Megatrends
5 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 6: Stoneridge - A Vehicle Technology Company
6 Stoneridge - A Vehicle Technology Company Migrating toward smart products that will continue to drive growth through increased vehicle content Smart Products * 70% Mechanical Products 30% % of Year - to - Date Sales 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 2013 2014 2015 2016 2017 YTD 2016 Awards S
Slide 7: Shift-by-Wire Update
7 Stoneridge - A Vehicle Technology Company Shift - by - Wire Update Shift - by - Wire (Current) One of three global suppliers to receive a 2016 Safe Pillar Award from Ford for achieving excellence in quality, cost, performance and delivery related to actuation and sensors, including our Shift - by
Slide 8: Q2 2017 Summary
8 This was a record quarter for sales, gross profit and operating income for current operations We continue to deliver on our commitments through market leading products, continuous improvement in all aspects of the organization, operating efficiency and strong financial performance We expect 2 - 3x
Slide 9: Financial Update
Financial Update Stoneridge
Slide 10: 2nd Quarter 2017 Summary
10 2 nd Quarter 2017 Summary 2 nd Quarter 2017 Financial Results Increased m idpoint sales guidance to $805 million Increased midpoint adjusted EPS guidance to $1.44 2017 Updated Guidance 2017 Guidance Previously Provided 2017 Guidance Updated Midpoint Improvement Sales $775 - $795 Million $795 - $8
Slide 11: Control Devices Segment Update
11 $60.0 Million $80.0 Million $100.0 Million $120.0 Million $140.0 Million Q3 2015 Q3 2016 Q4 2015 Q4 2016 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Sales 13.9% 14.7% 13.3% 14.2% 14.5% 15.9% 16.7% 17.3% $5.0 Million $10.0 Million $15.0 Million $20.0 Million $25.0 Million Q3 2015 Q3 2016 Q4 2015 Q4 2016 Q1 20
Slide 12: Electronics Segment Update
12 4.8% 6.5% 7.7% 4.9% 6.4% 8.7% 6.8% 6.8% $0.0 Million $5.0 Million $10.0 Million Q3 2015 Q3 2016 Q4 2015 Q4 2016 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Adjusted Operating Income* $50.0 Million $60.0 Million $70.0 Million $80.0 Million $90.0 Million Q3 2015 Q3 2016 Q4 2015 Q4 2016 Q1 2016 Q1 2017 Q2 2016
Slide 13: PST Segment Update
13 $15.0 Million $20.0 Million $25.0 Million $30.0 Million Q3 2015 Q3 2016 Q4 2015 Q4 2016 Q1 2016 Q1 2017 Q2 2016 Q2 2017 Sales PST Segment Update PST has improved quarterly operating margin by more than 2,200 basis points and is well positioned for future growth - 2.6% 0.1% - 7.8% 3.2% - 17.7% 2.7
Slide 14: FY 2017 Updated Guidance
14 2017 Guidance Previously Provided 2017 Guidance Updated Midpoint Improvement Sales $775 - $795 Million $795 - $815 Million $20 million (2.5%) Adjusted Gross Margin* 28.5% - 30.5% 30.0% - 31.0% 100 basis points Adjusted Operating Margin* 7.0% - 8.0% 8.0% - 9.0% 100 basis points Adjusted EPS $1.10
Slide 15: 2nd Quarter 2017 Financial Summary
15 All segments exceeded expectations for financial performance Control Devices – 5.5% sales growth, 8.9% operating income growth vs. 2Q 2016 Electronics – 24.1% sales growth, 24.0% adjusted operating income growth vs. 2Q 2016 PST – 16.0% sales growth, $2.2 operating income improvement vs. 2Q 2016 W
Slide 16: Thank You
Thank You Stoneridge
Slide 17: Appendix
17 Appendix
Slide 18: 2017 Q2 Adjustments
18 2017 Q2 Adjustments As a result of purchase accounting we recognized a step - up in acquired inventory of $1.2 million (after - tax). $0.7 million was expensed in the first quarter of 2017, with the remaining $0.5 million in the second quarter of 2017. The after - tax impact in the second quarter
Slide 19: Primary Stoneridge Foreign Currency Sensitivities
19 Primary Stoneridge Foreign Currency Sensitivities SRI Currency Exposures If 5% Weaker USD N et Annual EBITDA Transaction Impact to Stoneridge* SRI Guidance Assumption vs. June 30, 2017 Euro / USD Mexican Peso / USD Swedish Krona / USD Brazilia n Real / USD 1.05 1.14 Guidance June 30, 2017 3.30 3.
Slide 20: Income Statement (Unaudited)
20 Income Statement (Unaudited) (in thousands, except per share data) 2017 2016 2017 2016 Net sales $ 209,111 $ 186,903 $ 413,422 $ 349,519 Costs and expenses: Cost of goods sold 145,697 134,152 288,857 251,607 Selling, general and administrative 35,704 29,247 69,970 55,019 Design and development 12
Slide 21: Segment Financial Information
21 Segment Financial Information June 30, 2017 2016 2017 2016 Net Sales: Control Devices $ 114,001 $ 108,889 $ 232,874 $ 201,257 Inter-segment sales 1,368 485 2,151 1,018 Control Devices net sales 115,369 109,374 235,025 202,275 Electronics 71,610 57,761 135,415 110,397 Inter-segment sales 10,223 8,
Slide 22: Balance Sheet
22 Balance Sheet CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, (in thousands) 2017 2016 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 44,220 $ 50,389 Accounts receivable, less reserves of $926 and $1,630, respectively 137,577 113,225 Inventories, net 76,997 60,117 Prep
Slide 23: Statement of Cash Flows
23 Statement of Cash Flows CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six months ended June 30, (in thousands) 2017 2016 OPERATING ACTIVITIES: Net income $ 18,092 $ 17,104 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 10,538 9,606 Amo
Slide 24: Statement of Cash Flows (Cont.)
24 Statement of Cash Flows (Cont.) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six months ended June 30, (in thousands) 2017 2016 FINANCING ACTIVITIES: Acquisition of noncontrolling interest, including transaction costs (1,796) - Revolving credit facility borrowings 84,000 - Revolvin
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: Reconciliation of Adjusted Gross Profit and Operating Income
27 Reconciliations to US GAAP Reconciliation of Stoneridge Adjusted Gross Profit (USD in millions) Q2 2017 YTD 2017 Gross Profit $63.4 $124.6 Add: Pre-Tax Step-Up in Acquired Inventory from Orlaco 0.7 1.6 Adjusted Gross Profit $64.1 $126.2 Reconciliation of Stoneridge Adjusted Operating Income (USD
Slide 28: Reconciliation of Q2 Adjusted EBITDA
28 Reconciliations to US GAAP Reconciliation of Q2 Adjusted EBITDA (USD in millions) Q2 2017 YTD 2017 Q2 2016 YTD 2016 Income before tax $14.1 $27.9 $12.3 $19.3 Interest expense, net 1.5 2.9 1.8 3.4 Depreciation and amortization 7.1 13.6 5.9 11.1 EBITDA $22.7 $44.4 $20.1 $33.8 Add: Pre-Tax Step-Up i