Standard Motor Products, Inc. · NYSE:SMP
Standard Motor Products — Investor Presentation (November 2004)
23 slides from Standard Motor Products's investor presentation, November 2004
Slide 1: Standard Motor Products, Inc.
Standard Motor Products, Inc.
Slide 2: Forward Looking Statements
Forward Looking Statements You should be aware that except for historical information, the matters discussed herein are forward- looking statements within the meaning of the private securities litigation reform act, as amended. Forward- looking statements, including projections and anticipated level
Slide 3: Lawrence I. Sills, Chairman & Chief Executive Officer
Lawrence I. Sills Chairman & Chief Executive Officer
Slide 4: James J. Burke, Vice President & Chief Financial Officer
James J. Burke Vice President & Chief Financial Officer
Slide 5: Early Years
Early Years April 19, 1919 – Founded Elias Fife & Ralph Van Allen Owner/Partners 10 Employees New York City – Manhattan
Slide 6: Two Major Product Lines
SMP Strategy Two Major Product Lines Engine Management Temperature Control Number One in Each
Slide 7: Engine Management Division
Engine Management Division Distributor Cap and Rotor Point Set and Condenser Distributorless Ignition Engine Computer System Module
Slide 8: Temperature Control Division
Temperature Control Division Air Conditioning and Heating Parts
Slide 9: DEM Acquisition
DEM Acquisition Achievable and Meaningful Synergies Exact fit with SMP Engine Management business minimizes integration risk. Same product lines Same distribution strategy 75 years of direct competition Significant rationalization opportunities across combined operations $40-$45 million of increment
Slide 10: DEM Integration Goals: Goal 1
DEM Integration Goals Goal 1 Close 7 of 9 DEM Facilities Merge Activities into Existing SMP Locations Complete Moves 12-18 Months
Slide 11: DEM Acquisition: Pre-Consolidation Facilities
DEM Acquisition Pre-Consolidation DEM Locations — 9 Facilities Branford, CT Franklin Park, IL Guilford, CT Argos, IN Northvale, NJ Mishawaka, IN Independence, KS Nashville, TN Manufacturing: 5 Distribution: 2 Offices: 2
Slide 12: DEM Acquisition: Post-Consolidation Facilities
DEM Acquisition Post-Consolidation — 2 Facilities Independence, KS Mishawaka, IN Before After Manufacturing: 5 2 Distribution: 2 0 Offices: 2 0
Slide 13: DEM Integration Goals: Goal 2
DEM Integration Goals Goal 2 Integration Expense Not to Exceed $30-35 Million
Slide 14: DEM Planned Integration and Restructuring Costs
DEM Planned Integration and Restructuring Costs ($ in millions) July 03 -Dec 04 Employee Related $21 – 22 (Severance, Outplacement, Stay Bonus) Equipment/Inventory Move Costs 5– 6 Facility Repair & Exit Costs 2– 3 Lease Exit Costs 1– 2 Other 1– 2 $30 - 35
Slide 15: DEM Integration Goals: Goal 3
DEM Integration Goals Goal 3 Maintain all DEM Accounts $230-$250 Million in Volume Key Accounts NAPA CSK O’Reilly Federated Pep Boys Parts Plus
Slide 16: DEM Integration Goals: Goal 4
DEM Integration Goals Goal 4 Achieve $55 Million Savings
Slide 17: DEM Planned Savings
DEM Planned Savings ($ in millions) Year 2005 Headcount Reductions $28 MIS Savings 6 Facility Savings 5 Material Savings 8 Marketing, Distr., G & A Savings 8 $55
Slide 18: DEM Integration Goals: Progress Towards Stated Goals
DEM Integration Goals Progress Towards Stated Goals Physical Moves Completed on Schedule Integration Costs Within Budget Maintained All Current Accounts Initial Savings Begun
Slide 19: Financial Update
® S&S Financial Update
Slide 20: DEM Eng Mgt Cost Savings
DEM Eng Mgt Cost Savings Sep 2004 Est 2005-06 Plan 2004 Savings Plan Headcount Reduction 580 277 $ 10.0 $ 28.0 MIS Savings 4.0 6.0 Facility 4.0 5.0 Material Savings - 8.0 Marketing, Distribution, G&A 2.0 8.0 Target Savings Total $ 20.0 $ 55.0
Slide 21: Eng Mgt Operating Profit Analysis
Eng Mgt Operating Profit Analysis 2002 2003 2005-06 Actual Actual Goal Net Sales 100.0% 100.0% 100.0% Gross Profit 30.4% 26.9% 29-30% Operating Expenses 16.6% 18.5% 14-15% Operating Profit Before 13.8% 8.4% 15.0% Integration Expenses Net Sales $ 303.1 $ 414.4 $ 550.0 Opt Profit Before $ 41.9 $ 34.7
Slide 22: Eng Mgt Inventory Analysis
Eng Mgt Inventory Analysis FCST FCST GOAL Dec Dec Dec Dec Dec 2002 2003 2004 2005 2006 SMP Inventory $ 67.2 $ 150.9 $ 175.0 $ 145.0 $ 125.0 Change in Inv per year $ - $ 83.7 $ 24.1 $ (30.0) $ (20.0) Inventory Turns 3.1 2.0 2.3 2.7 3.0 Note: June 2003 DEM acquisition inventory $ 76.4 Inventory in ($m
Slide 23: Standard Motor Products, Inc.
Standard Motor Products, Inc.
Standard Motor Products — Investor Presentation (November 2004) on 6ix