Slide 1: Q3 2023 Results
Q3 2023 Results November 2, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied by the statements. Important factors that may
Slide 3: Overview of Q3 Achievements
Overview of Q3 Achievements Q3 results exceeded prior expectations - adjusted EPS of $0.10, an increase of $0.15 vs. Q2 Continued strong gross margin performance (22.1%) Continued adjusted operating margin and EBITDA margin expansion (+70 bps and +260 bps vs. Q2, respectively) Refining full-
Slide 4: Financial Summary
Financial Summary $’s in USD Millions Q2 2023 vs. Q3 2023 Q3 Financial Highlights 300 280 $262.4 ▸ Adjusted sales declined vs. Q2 2023, due in $259.1 260 part to seasonal production, as well as electric $237.2 240 vehicle customer production volumes Adjusted Sales 220 underperforming expectations an
Slide 5: UAW Strike Update
UAW Strike Update UAW Strike Impact UAW Strike Impact 2023 ▸ After six weeks of escalating negotiations and strikes, the United Q3 Q4 Total Auto Workers (UAW) have tentative agreements with all three Actual Estimated Impact 2023 domestic OEMs Revenue ~($0.5) ~($6.5) Million ($7.0) • First strikes ef
Slide 6: New Program Launch – Smart Tachograph
New Program Launch – Smart 2 Tachograph Smart 2 Tachograph Program Launch ▸ Launched our next generation smart tachograph (Smart 2 Tachograph) in Europe in Q3 2023 ▸ Designed to meet the EU Mobility Package Standards ▸ Required in both OEM applications as well as aftermarket / retrofit applications
Slide 7: MirrorEye Continues to Lead the CMS Market
MirrorEye Continues to Lead the CMS Market MirrorEye North America ▸ In 2016, the Department of Energy (DOE) launched the SuperTruck II program with four OEMs with a goal of achieving a 120% increase in freight efficiency ▸ All four SuperTruck II teams installed MirrorEye on their trucks to increase
Slide 8: Summary
Summary Summary Remain focused on operational excellence and material cost reductions driving continued strong margin performance in Q3 and sequential improvement over Q2 Operating Margin +70 bps vs. Q2 EBITDA Margin +260 bps vs. Q2 Launched the Smart 2 Tachograph in Europe which is expected t
Slide 9: Financial Update
Financial Update Ssereiee
Slide 10: 3rd Quarter 2023 Financial Summary
3rd Quarter 2023 Financial Summary 3rd Quarter 2023 Financial Results Adjusted sales of $237.2 million • Control Devices sales of $90.1 million • Electronics adjusted sales of $142.4 million • Stoneridge Brazil sales of $14.2 million Adjusted operating income of $7.3 million (3.1% adjusted operating
Slide 11: Q3 2023 Performance Drivers
Q3 2023 Performance Drivers Q3 Operating Performance Q3 Non-Operating Impact Production Material Cost Distressed SG&A and D&D Non-operating Incremental Volumes Improvement and Supplier Costs Costs FX Tax ~($0.02) Operating ~($0.02) ~$0.05 ~($0.04) Performance ~$0.11 ~Net Operating Impact of ~$0.07 N
Slide 12: Control Devices Financial Performance
Control Devices Financial Performance $’s in USD Millions Control Devices Q3 Summary Q2 2023 vs. Q3 2023 Sales declined by 3.2% vs. Q2 2023 $98.0 $93.1 Lower sales in the North America passenger car $93.0 $90.1 end market primarily due to slower than expected Sales $88.0 ramp-up of certain electrifi
Slide 13: Electronics Financial Performance
Electronics Financial Performance $’s in USD Millions Q2 2023 vs. Q3 2023 Electronics Q3 Summary Adjusted sales declined by 11.3% vs. Q2 2023, $163.9 $160.6 excluding one-time favorable impact of retroactive $142.4 pricing of $3.3 million in Q2 related to prior periods Adjusted Due in part to expect
Slide 14: Stoneridge Brazil Financial Performance
Stoneridge Brazil Financial Performance $’s $’sininUSD USDMillions Millions Q2 2023 vs. Q3 2023 Stoneridge Brazil Q3 Summary Q3 sales declined by $0.7 million vs. Q2 2023 Primarily due to lower OEM sales partially offset by $14.9 $14.2 higher sales in aftermarket products during the quarter Sales Op
Slide 15: 2023 Adjusted EPS Guidance (Updated)
2023 Adjusted EPS Guidance (Updated) Drivers of Updated 2023 Full-Year Adjusted EPS Guidance ($0.10) - $0.10 ($0.10) - $0.00 Updated 2023 Guidance Drivers Q3 adjusted EPS of $0.10 outperformed previous expectations by ~$0.08 Expecting reduced revenue in Q4 (ex. UAW impact) vs. prior expectations pri
Slide 16: 2024 Preliminary Revenue Guidance
2024 Preliminary Revenue Guidance 2024 Preliminary Revenue Guidance 5%+ Revenue $’s in USD Millions Growth Weighted Avg End Markets Expected to Decline by ~1.5% ▸ Expecting continued strong revenue growth in 2024 (5%+ revenue growth) ▸ Based on current production forecasts, our weighted average unde
Slide 17: Summary
Summary 2023 Q3 Summary ▸ Control Devices – Continued operating performance improvement primarily due to lower direct labor costs and focused operational cost control ▸ Electronics – Strong margin expansion primarily due to material cost improvement and significant step down in D&D costs ▸ Stoneridg
Slide 18: Appendix
Appendix Ssereiee
Slide 19: Income Statement
Income Statement CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS Three months ended Nine months ended September 30, September 30, (in thousands, except per share data) 2023 2022 2023 2022 Net sales $ 238,164 $ 226,757 $ 746,303 $ 668,751 Costs and expenses: Cost of goods sold 185,689 177,317 590,538
Slide 20: Balance Sheet
Balance Sheet Stoneridge CONDENSED CONSOLIDATED BALANCE SHEETS tmecmmas seni omy (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 36,758 S$ 54,798 Accounts receivable, less reserves of $956 and $962, respectively 177,202 158,155 Inventories, net 183,177 152,580 Prepaid expenses and oth
Slide 21: Statement of Cash Flows
Statement of Cash Flows Stoneridge CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months ended September 30, (in thousands) 2023 2022 OPERATING ACTIVITIES: Net loss (8,207) 3 (14,283) Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: Depreciati
Slide 22: Statement of Cash Flows (Cont.)
Statement of Cash Flows (Cont.) 22
Slide 23: Segment Financial Information
Segment Financial Information NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except per share data, unless otherwise stated) (A) Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information technology and legal costs as well as shar
Slide 24: Reconciliations to US GAAP
Reconciliations to US GAAP 24
Slide 25: Reconciliations to US GAAP
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 measure
Slide 26: Reconciliations to US GAAP
Reconciliations to US GAAP Reconciliation of Q3 2023 Adjusted EPS (USD in millions, except EPS) Q3 2023 Q3 2023 EPS Net Income $ 2.2 $ 0.08 Add: After-Tax Business Realignment Costs 1.0 0.04 Add: After-Tax Brazilian Indirect Tax Credits, Net (0.3) (0.01) Adjusted Net Income $ 2.9 $ 0.10 Reconciliati
Slide 27: Reconciliations to US GAAP
Reconciliations to US GAAP Reconciliation of Adjusted Gross Profit (USD in millions) Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Gross Profit $ 42.8 $ 60.5 $ 52.5 $ 155.8 Add: Pre-Tax Business Realignment Costs 0.2 0.5 — 0.7 Adjusted Gross Profit $ 43.0 $ 60.9 $ 52.5 $ 156.4 Reconciliation of Adjusted Opera
Slide 28: Reconciliations to US GAAP
Reconciliations to US GAAP Reconciliation of Adjusted EBITDA (USD in millions) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Income (Loss) Before Tax $ 0.7 $ (8.1) $ (1.5) $ 4.4 $ (5.2) Interest expense, net 2.2 2.7 3.1 3.3 9.2 Depreciation and amortization 8.2 8.3 8.4 8.5 25.2 EBITDA $ 11.1 $ 3.0 $ 1
Slide 29: Reconciliations to US GAAP
Reconciliations to US GAAP Reconciliation of Adjusted Tax Rate (USD in millions) Q3 2023 Tax Rate Income Before Tax $ 4.4 Add: Pre-Tax Business Realignment Costs 1.2 Add: Pre-Tax Brazilian Indirect Tax Credits, Net (0.5) Adjusted Income Before Tax $ 5.2 Income Tax Expense 2.3 51.1 % Add: Tax Impact
Slide 30: Reconciliations to US GAAP
Reconciliations to US GAAP Reconciliation of Control Devices Adjusted Operating Income (USD in millions) Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Control Devices Operating Income $ 2.1 $ 5.1 $ 5.5 $ 12.6 Less: Pre-Tax Gain on Disposal of Fixed Assets (0.8) — — (0.8) Add: Pre-Tax Environmental Remediation
Slide 31: Reconciliations to US GAAP
Reconciliations to US GAAP Reconciliation of Adjusted Sales (USD in millions) Q1 2023 Q2 2023 Q3 2023 Q3 YTD 2023 Sales $ 241.3 $ 266.8 $ 238.2 $ 746.3 Less: Sales from Spot Purchases Recoveries (9.1) (4.4) (0.9) (14.4) Adjusted Sales $ 232.2 $ 262.4 $ 237.2 $ 731.9 Reconciliation of Electronics Adj