Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — JP Morgan Global High Yield & Leveraged Finance Conference February 2014
25 slides from Cooper-standard's conference presentation, Feb 24, 2014
Slide 1: Drive for Profitable Growth
Exhibit 99.2 DRIVE FOR PROFITABLE GROWTH JP Morgan Global High Yield & Leveraged Finance Conference February 2014
Slide 2: 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. We make forward-looking statements in this presentation and may mak
Slide 3: Jeff Edwards, Chairman and Chief Executive Officer
Jeff Edwards Chairman and Chief Executive Officer 3
Slide 4: Company Snapshot
Company Snapshot Headquarters: Novi, MI Employees: 25,000 + 1 Global Suppliers: Rank 69 Global Footprint: 80+ facilities in 19 Countries Equity Ticker: NYSE: CPS Financial: 2012 Revenue: $2.88 billion 2013 Revenue: $3.09 billion Product Groups: Customers: 77% Direct OEM 23% Tiers / Other Sealing & T
Slide 5: Cooper Standard Journey
Cooper Standard Journey 2014 and Beyond Growth ProfitableGrowth • Acquired Metzeler Automotive Profiles• Expanded Nishikawa 2010 -2013 • Acquired USi Inc. Partnership Recovery • Established Cooper Standard France • Acquired Jyco Sealing Technologies 2008 –2010 • Emerged from Reorganization Survival
Slide 6: Global Automotive Industry Growth
Global Automotive Industry Growth • Global vehicle sales remain strong • China:greatestglobalgrowth from 2015 – 2020; positionedto be #1 light vehicle market at more than 30 million vehicles annually Global volume to exceed • India: expected to produce more than 5 million vehicles by 2020 105 millio
Slide 7: 2013 Business Update
2013 Business Update Cooper Standard global sales grew by 7.3% year-over-year Full year adjusted EBITDA margin of 9.3% of sales – Sealing and Trim launch and significant product challenges impacting financial performance • Investing in people, process improvements, technology and working closely wit
Slide 8: Transition for Profitable Growth
Transition for Profitable Growth SG&AE Headcount ($ million) 695 • Investing in people $400 590 615 700 $300 600 – Restaffing for execution $200 $258 $281 $294 500 – Product development $100 400 – Innovation $0 2011 2012 2013 300 $ million Capital Expenditure • Investing in capital $200 $183 $150 $1
Slide 9: Transition for Profitable Growth
Transition for Profitable Growth Product Strategy • Focusingon Sealing& Trim,Fuel& Brake Delivery and Fluid Transfer Systems – Delivering innovation – Achieve #1 or #2 market leadership – Global product teams driving increased ROIC – Sell Thermal & Emissions business Optimizing Footprint • Serbia st
Slide 10: Shareholder Value Creation
Shareholder Value Creation Priorities Focused Actions Drive for Profitable Growth • Achieve double digit adjusted EBITDA • Restore historical profitability in Sealing & Trim business Relentless Focus on the Customer • Obtain key business wins, especially global platforms • Meet customer targets for
Slide 11: Allen Campbell, Executive Vice President and Chief Financial Officer
Allen Campbell Executive Vice President and Chief Financial Officer 11
Slide 12: Track Record of Growing Sales
Track Record of Growing Sales $ USD Billions $4.0 $.44 $3.0 $.31 $.41 $.28 $2.0 $.10 $2.88 $3.09 $2.85 $2.41 $1.0 $1.95 $0.0 2009 2010 2011 2012 2013 CS Sales Non-Consolidated JVs Exceeding global light vehicle production CAGR of 9.1% Note: CAGR includes non-consolidated JV revenue Numbers subject t
Slide 13: Q4 and Full Year 2013 Revenue
Q4 and Full Year 2013 Revenue $ USD Millions Q4 2013 Full Year 2013 $500 $1,750 $1,618 $426 $1,504 $1,500 $400 $364 $1,250 $1,076 $270 $1,017 $300 $1,000 $236 $750 $200 $500 $100 $57 $60 $213 $220 $40 $38 $250 $147 $177 $0 $0 North Europe Asia Pacific South North America Europe Asia Pacific South Am
Slide 14: Non-Consolidated Joint Venture Revenue
Non-Consolidated Joint Venture Revenue $ million Joint Venture Partner Product Country $500 $445 $410 Huayu-Cooper Sealing SAIC/HASCO Sealing China $400 $300 Nishikawa Cooper Nishikawa Rubber Sealing U.S. $200 $100 Nishikawa Tachaplalert Cooper Nishikawa Rubber Sealing Thailand $0 2012 2013 Sujan CS
Slide 15: 2013 Revenue by Customers and Product
2013 Revenue by Customers and Product $ USD Millions Revenue by Customers Revenue by Product 2013 Revenue$3,091 - Note: Numbers subject to rounding 15
Slide 16: Q4 and FY 2013 Performance
Q4 and FY 2013 Performance $ USD Millions, except EPS / % Fourth Quarter Full Year 2012 2013 2012 2013 $697.1 $794.2 Sales $2,880.9 $3,090.5 99.7 105.1 Gross Profit 438.9 472.7 14.3 % 13.2% % Margin 15.2% 15.3% 74.8 72.6 SA&E 281.3 293.4 (2.1) 14.6 Operating Profit (Loss) 103.3 142.1 (0.3%) 1.8% % M
Slide 17: Full Year 2013 Cash Flow
Full Year 2013 Cash Flow $ USD Millions $500 $192.5 $41.4(a) $450 $183.3 $400 $350 $300 $270.6 $250 $13.5 $17.9 $4.7 $17.9 $200 $184.4 $150 $100 $50 $0 Cash Balance as Cash from Changes in Capital Acquisition of Pension funding - Preferred stock FX and others Cash Balance as of 12/31/2012 business o
Slide 18: Strong Capital Structure and Liquidity
Strong Capital Structure and Liquidity Liquidity Debt Maturity Table $ USD Millions $ USD Millions Cash on Balance Sheet $184.4 (1) ABL Revolver commitments 150.0 Letters of Credit (36.7) $ 297.7 (1) Availability limited by borrowing base Pension Liability Key Financial Ratios • Substantially all US
Slide 19: 2014 Guidance
Key Assumptions: North American production 16.8 million 2014 Guidance European (including Russia) production 19.6 million Average full year exchange rate $1.28/Euro *G=Guidance Revenues Cash Taxes $ USD Millions $3,250 - $3,350 $ USD Millions Capital Expenditures Cash Restructuring $ USD Millions $
Slide 20: Summary
Summary • Focused on stabilizing North America and Europe businesses performance – Addressing launch and product complexity in Sealing & Trim business • Continue to make necessary infrastructure / capacity investments – Asia growth strategy – Serbia expansion • Evaluate partnerships and acquisition
Slide 21: Passion for Performance
q PASSION FOR PERFORMANCE
Slide 22: Appendix
Appendix q PASSION FOR PERFORMANCE
Slide 23: Net Leverage Ratio and Adj. EBITDA % Margin
Net Leverage Ratio and Adj. EBITDA % Margin as of December 31, 2013 Twelve Months ($ USD Millions) Three Months Ended Ended Mar 31, Jun 30, Sep 30, Dec 31, 2013 2013 2013 2013 Dec 31, 2013 Net income (loss) $ 20.7 $ 27.4 $ 20.6 $ (20.8) $ 47.9 Income tax expense 7.9 12.2 4.5 21.0 45.6 Interest expen
Slide 24: EBITDA and Adjusted EBITDA – Twelve Months Ended December 31, 2012
EBITDA and Adjusted EBITDA – Twelve Months Ended December 31, 2012 ($ USD Millions) Twelve Months Three Months Ended Ended Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, 2012 2012 2012 2012 2012 Net income (loss) $ 23.8 $ 77.3 $ 11.6 $ (9.9) $ 102.8 Provision for income tax expense (benefit) 8.1 (46.2) 5.4
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA and adjusted EBITDA are measures not recognized under Generally Accepted Accounting Principles (GAAP) which exclude certain non-cash and non-recurring items. When analyzing the company’s operating performance, investors should use EBITDA and adjustedEBITDAin additi