Cooper-Standard Holdings Inc. · NYSE:CPS
Cooper-Standard — Auto Analysts of New York Conference 2007
32 slides from Cooper-Standard's conference presentation, Jan 10, 2007
Slide 1: Auto Analysts of New York Conference
Auto Analysts of New York Conference Scott H. Finch-VP of Investor Relations January 10, 2007
Slide 2: Table of Contents
Table of Contents I. Auto Sector Overview II. CSA Update III. Questions
Slide 3: I. Auto Sector Overview
—— é> COOPERSTANDARD™ AVA UTOMOTIVE I. Auto Sector Overview
Slide 4: The Automotive Industry In The News
The Automotive Industry In The News Six Largest Automotive Companies Call on U.S. International Trade Commission to End Steel Duties Hurting U.S. Manufacturing Ford to cut third- and fourth-quarter production US Auto Makers Trail in Profits Supplier Announces Buyouts High Oil Prices Met With Anger W
Slide 5: Key OEM Industry Indicators
Key OEM Industry Indicators Cost Basis Ratings Product Mix Global Footprint Initial Quality
Slide 6: Cost Basis: 2005 Profitability of OEMs
Cost Basis 2005 Profitability of OEMs(1) EBIT (%) 21.2 10.7 10 10 7.7 6.9 6.7 5.4 4.2 4 3 2.7 1.8 -7.3 1) Including financial service civilities 2) including share in net income of associates 2006 © Roland Berger Rothschild
Slide 7: Cost Basis: Market Cap Per Vehicle
Cost Basis Market Cap Per Vehicle $25,000 $20,000 $15,000 $10,000 $5,000 $0 Hyundai Average Suzuki Renault/ Mitsubishi Honda Toyota VW Fiat Ford PSA DCX GM BMW Nissan Market capitalization divided by 2006 vehicle production 2006 © CSM Worldwide
Slide 8: Cost Basis: Current Labor Cost Penalties
Cost Basis Current Labor Cost Penalties Average: $1,080 - $1,335 Active Workers Health Care $220 Retiree Health Care $490 - $705 Relief Time Absentees Work Rules $250 Vacations / Holidays $120 - $160 2006 © Harbour-Felax Group
Slide 9: Global Footprint: Shake-Up In The Ranks
Global Footprint Shake-Up In The Ranks Units in Millions Sales Share 90.0 Toyota projected to overtake General Motors as the 20% world’s largest seller of automobiles Global Sales 75.0 16% Toyota GM Ford 60.0 12% Renault/Nissan VW 45.0 8% Hyundai DCX 30.0 4% Global vehicle demand 3% CAGR through 201
Slide 10: Global Footprint: Light Vehicle Production by Region
Global Footprint Light Vehicle Production by Region R Region (2006-2012 CAGR%) 8 0 .0 3.0% CAG GR Greate r China (+9.0%) 7 0 .0 3.8% CA 2.1% CAGR South Asia (+8.6%) 6 0 .0 C/E Europe (+6.5%) 5 0 .0 ME/Africa (+5.3%) Millions 4 0 .0 S Ame rica (+3.4%) 3 0 .0 N Ame rica (+1.3%) W Europe (+0.9%) 2 0 .0
Slide 11: Ratings: Recent Select OEM Rating History
Ratings Recent Select OEM Rating History Investment Grade Aaa Aaa Aa1 A1 A1 A2 A3 A3 Baa1 Baa1 Baa3 Ba1 Ford GM B3 Caa1 DCX Toyota Honda Nissan VW January ‘03 November ‘06 D
Slide 12: OEM – Supplier Working Relations
Ratings OEM-Supplier Work Relations Index 500 Good – Very Good OEM – Supplier Working Relations 400 Adequate 300 Very Poor - Poor 200 100 20 02 20 03 20 04 20 05 20 06 2006 © Planning Perspectives, Inc.
Slide 13: Supplier Key Indicators
Supplier Key Indicators Customer Mix Manage Assets & Costs Global Footprint Platform & Product Mix Excellence in Technology & Quality
Slide 14: The Automotive "Squeeze Play"
The Automotive “Squeeze Play” Raw Customers OEMs Suppliers Material Suppliers Brand Loyalty Emerging Markets Pressure on Margins Raw Material Prices Willingness to Pay Low Cost Car Bargaining Powe Stagnation Proliferation Platform Purchasing Cost Reduction Vertical Integration Overcapacities 2006 ©
Slide 15: Excellence in Technology & Quality
Excellence in Technology & Quality Factors OEMs Use When Selecting Suppliers Cost Product quality Technology / innovation GM Chrysler Ford Delivery performance Service / support provided Overall business capabilities Honda Nissan Toyota 2006 © Planning Perspectives, Inc.
Slide 16: Manage Assets & Costs: Supplier Ratings History
Manage Assets & Costs Tier I & II Supplier Ratings History Investment Grade Aaa A3 A3 Baa2 Baa2 Baa3 Ba1 Ba1 Ba2 Ba3 B1 B1 B2 B3 Visteon Delphi Caa1 Borg Warner Lear Tower Dura TRW CSA Magna Metaldyne January ‘03 November ‘06 D D
Slide 17: Third Party View of Selected Suppliers
Third Party View of Selected Suppliers Healthy Restructuring Distressed Heavy Truck Exposure Bankrupt Significant Legacy Costs Leveraged 2006 © Bank of America
Slide 18: A Financial Comparison of the Stronger Suppliers
A Financial Comparison of the Stronger Suppliers 2004 – 2007E REVENUE CAGR (a) 2005 EBITDA MARGIN (b) 18% 30% 29.3% Median = 9.1% Median =9.4% 15 12 9 8.7% 12.5% 9.7% 9.1% 8.7% 15 10 11.7% ~ 13.5% 9.4% 9.3% 7.0% 6 4.3% 5 3 0 0 CS BWA JCI T EN GNT X T RW CS GNT X BWA T RW T EN JCI 2004 – 2007E EBIT G
Slide 19: Profitability of Automotive Suppliers
Profitability of Automotive Suppliers 2000 - 2005 The profitability gap between low and top performers has further widened over the past five years. ROCE (%) EBIT Margin (%) 18.5 8.5 8 8 16.2 8.5 8.1 14.2 17.3 16.1 7.4 2.1x 3.1x 13.6 2.1x 3.1x 3.9 3.2 6.8 6 6.5 2.8 3.1 2.9 5.5 2.7 4.9 5.1 2000 2001
Slide 20: Strategies of Top Performers
Strategies of Top Performers There are 12 areas where top performers applied – on average – different strategies from low performers. Revenue Structure Operating cost Balance sheet structure Qualitative aspects 1 Focused product 5 Heavy use of low 9 Excellence in 11 Stable portfolio cost locations w
Slide 21: II. CSA Update
—— é> COOPERSTANDARD™ AVA UTOMOTIVE II. CSA Update
Slide 22: Cooper-Standard Automotive Our History
Cooper-Standard Automotive Our History Cooper Tire & Rubber Company Cooper Engineered Products Division Divestitures / Other – Holm Industries The Standard Products Siebe – Oliver Rubber Company Automotive 1999 2000 – Winnsboro Exited Facilities – Estover – Langage 2004 Split from Cooper Tire & Rubb
Slide 23: Cooper-Standard Automotive Global Footprint
Cooper-Standard Automotive Global Footprint CSA maintains 61 locations throughout the world CSA has increased its % of sales from Europe, South America, and Asia/Pacific N. America: 69% of sales Europe: 22% of sales Asia/Pacific: 5% of sales S. America: Fluid 4% of sales Seal NVH Combined Facilities
Slide 24: Cooper-Standard Automotive Customer Diversity
Cooper-Standard Automotive Customer Diversity Honda Renault/Nissan VW 1.5% 4.2% Major Tier I/II DCX 4.0% 9.7% Major Tier I / II Porsche 0.7% 7.5% Faurecia 0.6% Toyota 0.8% Visteon 2.0% Auto. Co. Holding 1.1% GM 24.1% Auto Alliance 1.0% 17.0% Other Kautex 0.6% Inergy 1.0% Other 0.5% 2.3% PSA Ford 28.
Slide 25: Cooper-Standard Automotive Who We Are
Cooper-Standard Automotive Who We Are Cooper-Standard Automotive Sales: $2,080 Employees: 16,000 Locations: 61 ($ millions, LTM 9/30/06) Fluid Systems Sealing Systems NVH Control Systems Sales(1): $923 Sales(1): $878 Sales(1): $279 % total: 44% % total: 42% % total: 14% Global market position: #2 Gl
Slide 26: Cooper-Standard Automotive Products
Cooper-Standard Automotive Products One of the largest product portfolios Fluid Heating & Cooling Emissions Management Fuel and Brake Power Management NVH Powertrain Mounts Suspension / Other Body Isolation Active Technology Seal Door Mounted Seals Body Mounted Seals Encapsulated Glass Green House
Slide 27: Key Operating Highlights & Issues
Key Operating Highlights & Issues Highlights Issues • Meeting Historical Lean Savings • Significant Volume Declines at Targets of 4% of Sales Major Customers: • $167 Million Net New Business • ~$60 Million in Q4 and 2007 through 3rd Quarter 2006 • Mainly Ford & DCX • Run Rate of $15 Million Annual F
Slide 28: Cooper-Standard Automotive 2006 Top Platforms
Cooper-Standard Automotive 2006 Top Platforms Through September 30, 2006 Ford Ford F-150 Taurus/Sable Ford GM Grand Marquis Silverado/ Crown Vic Sierra Ford DCX Fiesta/ Caravan/ Fusion Voyager/ Town & Country GM Ford Impala F-350 Ford Explorer/ Ford Mountaineer Escape
Slide 29: Restructuring Summary
Restructuring Summary • Approximately 950 Heads Eliminated • Total Cost to Implement Approximately $36.3 Million • Annual Savings Projected to be $34.4 Million • NVH Folded into Sealing to Create Body & Chassis Division • Griffin and Sault Saint Marie Closed • Announced Closures for Maesteg, Tawas C
Slide 30: Historical Financial Data
Cooper-Standard Automotive Historical Financial Data Summary Financial Data ($ millions) 2003 2004 2005 LTM Sept. 06 Sales 1,662.2 1,863.6 1,827.6 2,220.6 % growth 4.8% 12.1% -1.9% 21.5% Gross Profit 273.0 319.7 277.2 342.1 % margin 16.4% 17.2% 15.2% 15.4% Adjusted EBITDA 195.3 230.1 203.3 255.3 % m
Slide 31: Cooper-Standard Automotive Balance Sheet
Cooper-Standard Automotive Balance Sheet 12/31/05 9/30/06 ($ in millions) Cash $ 62.2 $ 80.4 Other Current Assets 455.4 556.4 Total 517.6 636.8 Current liabilities 304.1 361.9 Debt 902.4 1,097.0 Equity 312.2 319.8 Key Debt Ratios Net Debt to EBITDA 4.15x EBITDA to Interest 2.96x
Slide 32: Questions?
—— é> COOPERSTANDARD™ AVA UTOMOTIVE IV. Questions?
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