Cooper-Standard (CPS) investor relations material

Business overview and strategic positioning

• Operates globally with two main product groups: Sealing Systems ($1.4B revenue, global leader) and Fuel Handling Systems ($1.2B revenue, #2 globally), serving a diverse customer base in 21 countries.

• Maintains strong customer relationships and a recognized culture of excellence, with a focus on financial strength, innovation, and corporate responsibility.

• Achieved $700M in cost savings since 2019 through manufacturing footprint rationalization, operational streamlining, and supplier contract renegotiations.

• Booked business for the next three years is highly visible, with 99% for next year, 95% for the following, and 85% for the third year.

• Financial stability is established, with expectations for continued margin expansion and free cash flow improvement, targeting net leverage below 2 by 2027.

Product group performance and innovation

• Sealing Systems business is the market leader, leveraging advanced technology and energy-efficient manufacturing, with $300M in new business awards since 2023.

• Margin expansion in Sealing Systems is expected to exceed 13% by 2030, with return on invested capital doubling to above 20%.

• Fluid Handling Systems is positioned to benefit from the shift to hybrid and EVs, with content per vehicle increasing 80% for hybrids and 20% for EVs.

• Innovations such as Ergoloc and EZ Lock connectors, vertical integration, and new component offerings are driving margin and revenue growth.

• Fluid Handling business is expected to double over the next seven years, with adjusted EBITDA margin rising from 9% to over 16% and ROIC surpassing 30% by 2030.

Market trends, competitive landscape, and financial outlook

• Growth is driven by the global transition from ICE to hybrid and EV powertrains, with hybrid vehicle production projected to reach 20M units globally by 2030.

• Outperformance is expected regardless of powertrain mix, as products are applicable to ICE, hybrid, and EV vehicles.

• Cost control, innovation, and robust management systems underpin confidence in achieving financial targets, with most future business already booked and priced.

• Free cash flow will primarily support debt reduction, with leverage expected below 2 by 2027; growth in China and with global OEMs is a key driver.

• Competitive environment is solution-driven, with growth in China and innovation as differentiators; local teams and adaptation to regional business models are emphasized.