Cooper-Standard (CPS) JPMorgan Auto Conference 2024 summary

Company Overview and Strategic Direction

• Over 60 years in automotive supply, focusing on return on invested capital and world-class plant operations.

• Leading global position in Sealing (#1) and Fluid Handling (#2), with operations in 21 countries and 21,000 employees.

• Four strategic imperatives: financial strength, world-class execution, profitable growth via innovation, and corporate responsibility.

• Projecting a return to double-digit EBITDA and ROIC by 2025, with margin expansion underway.

• Showcased a diverse and global customer base, with Ford, GM, and Stellantis as major clients and 55% of revenue from North America.

Product Innovation and Market Trends

• Innovation in Sealing and Fluid Handling supports growth across ICE, hybrid, and EV platforms, increasing content per vehicle.

• Expanding business with Chinese domestic automakers, reflecting global demand for high-quality, engineered products.

• R&D investment remains a priority, balancing cost competitiveness with technological advancement.

• Emphasized sustainability and advanced materials, earning awards for plastics innovation and leadership.

• Aggressive lean initiatives and restructuring, including workforce reductions and footprint rationalization.

Operational and Financial Performance

• Recent reorganization to product-line P&Ls (Sealing and Fluid) enhances business visibility and cost management.

• Restructuring program expected to deliver $20–$25 million in savings by year-end and $40–$45 million in 2025.

• Liquidity remains sufficient, with plans to refinance debt in Q1 2025 to further improve cash flow.

• Despite a $200 million revenue reduction versus prior expectations, guidance remains strong due to cost control and sustainable pricing.

• Maintains solid liquidity and a flexible capital structure, supporting ongoing operations and strategic execution.