Cooper-standard Holdings Inc. · NYSE:CPS
Cooper-standard — FY2014 Earnings Presentation
20 slides from Cooper-standard's earnings presentation, Feb 24, 2015
Slide 1: Drive for Profitable Growth: Q4 and Full Year 2014 Earnings Call
1 DRIVE FOR PROFITABLE GROWTH Fourth Quarter and Full Year 2014 Earnings Call February 24, 2015
Slide 2: Forward-Looking Statements
2 2 Forward-Looking Statements There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this presentation. Important factors that could cause the Company's actual results to differ materially from the forw
Slide 3: Jeff Edwards, Chairman and Chief Executive Officer
3 Jeff Edwards Chairman and Chief Executive Officer
Slide 4: 2014 Business Update
4 4 2014 Business Update • Increased full year sales to $3.244 billion, up 5.0% • Improved year-over-year Q4 adjusted EBITDA margin by 200 bps • Continued to improve sealing business margins • Agreed to acquire largest sealing company in China • Successful debt refinancing
Slide 5: Highlights
5 5 Highlights • Breakthrough innovations • Asia Pacific growth • French JV acquisition • Spain re-entry • Thermal and Emissions product line divestiture • Improved safety performance by 22% in 2014 • Launched 102 new programs • Introduced Best Business Practices to drive margin expansion • Rolled-o
Slide 6: Revenue 2012 - 2017: Revenue Outpacing Industry
6 6 Revenue 2012 - 2017 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 2012 2013 2014 2015F 2016F 2017F Revenue Outpacing Industry Key Growth Drivers • Positioning to outpace competition on global platforms • Gaining significant China and North America market share • Developing new strategic partnerships • Commercia
Slide 7: Revenue Growth by Product Line and Customer
7 7 Revenue Growth Note: Numbers subject to rounding 2014 Revenue by Product Lines - $3.2 billion Sealing 52% Fuel & Brake 20% Fluid Transfer 14% AVS 8% T&E Non- Automotive 2011-2014 Revenue by Customers * Others include Revenue to Tier ½ and commercial vehicle customers ($ million) OEM 2011 2014 20
Slide 8: Allen Campbell, Executive Vice President and Chief Financial Officer
8 Allen Campbell Executive Vice President and Chief Financial Officer
Slide 9: Full Year Sales Growth Outpacing Market
9 Passion for Performance Full Year Sales Growth Outpacing Market Note: Numbers subject to rounding (1) Source : January 2015 IHS Forecast / Full year Q4 2013 - $794 Q4 2014 - $768 Full Year 2013 - $3,091 Full Year 2014 - $3,244 $ USD Millions Fourth Quarter Full Year $0 $100 $200 $300 $400 $500 Nor
Slide 10: Content Per Vehicle on Top Five Platforms
10 10 Content Per Vehicle on Top Five Platforms Vehicle1 Content Per Vehicle2 Sealing F&B FTS AVS Ford F-150 ≈ $440 GM Silverado / Sierra/ Tahoe / Yukon / Escalade ≈ $170 Ford Focus / Escape 3 ≈ $95 Ford Fiesta / B Max / Ecosport 3 ≈ $130 Ford Mondeo / S-Max; Volvo S60 / V70; Tata Range Rover 4 ≈ $1
Slide 11: Improved Q4 and FY 2014 Performance
11 11 Improved Q4 and FY 2014 Performance $ USD Millions, except Fully Diluted EPS / % Note: Numbers subject to rounding Fourth Quarter Full Year 2013 2014 2013 2014 $794.2 $767.9 Sales $3,090.5 $3,244.0 105.1 117.8 Gross Profit 472.7 509.4 13.2% 15.3% % Margin 15.3% 15.7% 72.6 73.1 SGA&E 293.4 301.
Slide 12: EBITDA and Adjusted EBITDA Reconciliation
12 12 EBITDA and Adjusted EBITDA Reconciliation $ USD Millions 2014 Net income Income tax expense EBITDA Restructuring, net of noncontrolling interest Adjusted EBITDA Twelve Months Ended Dec 31, Interest expense, net of interest income Depreciation and amortization EBITDA and Adjusted EBITDA are Non
Slide 13: Full Year 2014 Cash Flow and Key Financial Ratios
13 13 Full Year 2014 Cash Flow and Key Financial Ratios Note: Numbers subject to rounding Liquidity Cash Balance as of December 31, 2013 $ 184.4 Cash generated 82.9 Cash Balance as of December 31, 2014 $ 267.3 ABL Revolver 180.0 Letters of Credit (35.6) Total Liquidity $ 411.7 Key Financial Ratios E
Slide 14: Current Headwinds Impacting Business
14 14 Current Headwinds Impacting Business 1.9 2.0 2.1 2.2 2.3 Q1 Q2 Q3 Q4 0.5 1.0 1.5 Q1 Q2 Q3 Q4 USD/CAD EUR/USD Detroit 3 Light Vehicle Production Light Vehicle Production - Brazil m ill io n u n it s m ill io n u n it s 2013 2014 Source: IHS Automotive Source: IHS Automotive Source: Bloomberg 0.
Slide 15: 2015 Guidance
15 15 2015 Guidance North American production 17.4 million units European (including Russia) production 20.3 million units Average full year exchange rate 1 EUR = $1.19 USD 1 CAD = $0.84 USD • Revenue $3.3 - $3.4 billion • Capital Expenditure $185 - $210 million • Restructuring $35 - $45 million • C
Slide 16: Appendix
S_PASSION FOR PERFORMANCE
Slide 17: S_PASSION FOR PERFORMANCE
S_PASSION FOR PERFORMANCE
Slide 18: Adj. EBITDA Reconciliation - Twelve Months Ended December 31, 2014
18 18 Note: Numbers subject to rounding Adj. EBITDA % Margin – Twelve Months Ended December 31, 2014 (1) Includes noncash restructuring and is net of noncontrolling interest. (2) Non-cash stock amortization expense and non-cash stock option expense for grants issued at time of the Company’s 2010 reo
Slide 19: Adj. EBITDA Reconciliation - Twelve Months Ended December 31, 2013
19 19 Adj. EBITDA % Margin - Twelve Months Ended December 31, 2013 ($ USD Millions) (1) Includes non-cash restructuring. (2) Proportionate share of restructuring costs related to Cooper Standard France joint venture. (3) Non-cash stock amortization expense and non-cash stock option expense for grant
Slide 20: Non-GAAP Financial Measures
20 20 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. Management considers EBITDA and adjusted EBITDA as key indicators of the Company's operating performa
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