Cooper-Standard Holdings Inc. (NYSE:CPS) Q3 2022 Earnings Conference Call November 2, 2022 9:00 AM ET Company Participants Roger Hendriksen - Director-Investor Relations Jeff Edwards - Chairman & Chief Executive Officer Jon Banas - Executive Vice President & Chief Financial Officer Conference Call Participants Michael Ward - Benchmark Steve Ferazani - Sidoti Joe Farricielli - Cantor Brian DiRubbio - Baird Kirk Ludtke - Imperial Capital Operator Good morning, ladies and gentlemen, and welcome to the Cooper-S ...

Creating Sustainable Solutions TOGETHER Third Quarter 2022 Earnings Presentation November 2, 2022 Agenda 1. Introduction Roger Hendriksen | Director, Investor Relations « | --- | --- | |-------|----------------------------------------------------------------------------| | | | | | Third Quarter Summary Jeff Edwards \| Chairman and Chief Executive Officer | | | Financial Overview Jon Banas \| Executive VP and Chief Financial Officer | | | Full-year Guidance and Strategic Outlook Jeff Edwards | | | Q & A | 2 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________. Commission File Number: 001-36127 ______________________ ...

Financial Data and Key Metrics Changes - Second quarter 2022 sales were $605.9 million, an increase of 13.6% compared to the same period in 2021, significantly outpacing global light vehicle production growth [21] - Gross profit for the second quarter was $15.4 million or 2.5% of sales, compared to a gross loss of $900,000 in Q2 2021 [22] - Adjusted EBITDA was negative $10.4 million, an improvement from negative $14.7 million in Q2 2021, driven by favorable volume and mix, cost recoveries, and manufacturing efficiencies [22] - Net loss for the quarter was $33.2 million, compared to a net loss of $63.6 million in Q2 2021, including a gain of $33.4 million from a sale-leaseback transaction [23] Business Line Data and Key Metrics Changes - The company achieved $21 million in savings through lean initiatives and improved efficiencies despite market challenges [10] - Material cost recoveries exceeded the high end of historical ranges, with index-based agreements covering a significant majority of revenue [14][15] Market Data and Key Metrics Changes - Favorable volume and mix, net of customer price adjustments, increased sales by $102 million compared to Q2 2021, while foreign exchange impacts reduced sales by $22 million [25] - The company expects to see increasing offsets to material inflation headwinds as commercial recovery agreements are implemented [27] Company Strategy and Development Direction - The company is focused on optimizing its cost structure, having achieved over $100 million in annualized savings over the past three years [35] - Plans to enhance its position in the EV market with new products for fluid handling and innovations in the Fortrex chemistry platform [19][17] - The company is evaluating its real estate portfolio for potential asset sales or sale-leaseback opportunities to fund strategic initiatives [66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities despite uncertainties in the global economy, citing improved cost structure and customer commitments to address inflation challenges [38] - The company reaffirmed its full-year adjusted EBITDA guidance in the range of $50 million to $60 million, leveraging better-than-expected operating efficiencies [37] Other Important Information - The company ended June 2022 with a solid cash balance of $250 million and total liquidity of $407 million, indicating a strong liquidity position [31] - The company is in the process of refinancing a portion of its debt with the assistance of Goldman Sachs [33] Q&A Session Summary Question: Update on non-automotive efforts, specifically with Fortrex - Management confirmed progress with the first product launch slated for Q1 2023 and highlighted the attractiveness of next-generation Fortrex for both automotive and footwear markets [45][46] Question: Inflationary cost measures and their transitory nature - Management indicated that while some inflationary pressures are sticky, they have successfully negotiated to cover 65% to 75% of raw material inflation through index-based agreements [48][49] Question: EBITDA guidance and FX impact - Management acknowledged that the Euro's performance has impacted revenues but noted that cost reductions in local currencies would mitigate the overall effect [58] Question: Working capital and inventory management - Management expects working capital reductions, particularly in inventory, to benefit cash flows in the second half of the year, given the current high inventory levels [62][80] Question: Sale-leaseback opportunities - Management described the potential for sizable proceeds from repositioning real estate and conducting sale-leasebacks, similar to a recent transaction that generated nearly $50 million [66] Question: Profitability in European operations - Management expressed confidence in achieving profitability in Europe by 2023, with expectations for high-single-digit EBITDA margins by 2024 [70]

| --- | --- | |----------------------------------------------------|-------| | | | | | | | Creating Sustainable Solutions | | | Second Quarter 2022 Earnings Presentation TOGETHER | | | August 5, 2022 | | Agenda 1. Introduction Roger Hendriksen | Director, Investor Relations 2. Second Quarter Summary Jeff Edwards | Chairman and Chief Executive Officer 3. Financial Overview Jon Banas | Executive VP and Chief Financial Officer 4. Full-year Guidance and Strategic Outlook Jeff Edwards Q & A 2 Forward-Looking Sta ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________. Commission File Number: 001-36127 ___________________________ ...

Cooper-Standard Holdings Inc. (NYSE:CPS) Q1 2022 Earnings Conference Call May 6, 2022 9:00 AM ET Company Participants Jeffrey Edwards – Chief Executive Officer and Chairman Jonathan Banas – Executive Vice President and Chief Financial Officer Roger Hendriksen – Director, Investor Relations Conference Call Participants Steve Ferazani – Sidoti & Company Mike Ward – Benchmark Kirk Ludtke – Imperial Capital, LLC Kevin McVeigh – Credit Suisse Brian DiRubbio – Robert W. Baird Josh Taykowski – Credit Suisse Pratee ...

Financial Performance - Sales decreased to $613 million from $669 million[10] - Gross profit significantly declined to $21.5 million from $68.3 million[10] - Gross profit margin decreased to 3.5% from 10.2%[10] - Adjusted EBITDA decreased to $0.1 million from $38.5 million[10] - Adjusted EBITDA margin decreased to approximately 0% from 5.8%[10] - Net loss increased to $61.4 million from $33.9 million[10] - Adjusted net loss increased to $51.4 million from $14.5 million[10] Liquidity - Free cash flow was negative $44.5 million, compared to negative $45.7 million[14]

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2022 financial statements show decreased sales, widened net loss, and negative operating cash flow [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2022 vs Q1 2021 Statement of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Sales | $612,984 | $668,967 | | Gross Profit | $21,542 | $68,292 | | Operating Loss | $(40,394) | $(11,690) | | Net Loss Attributable to Cooper-Standard | $(61,360) | $(33,864) | | Diluted Loss Per Share | $(3.58) | $(2.00) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (in thousands) | Metric | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $252,911 | $248,010 | | Total current assets | $1,093,850 | $994,897 | | Total assets | $2,283,136 | $2,226,493 | | Long-term debt | $979,922 | $980,604 | | Total liabilities | $2,012,356 | $1,895,133 | | Total equity | $270,780 | $331,360 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2022 vs Q1 2021 Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(12,213) | $(7,084) | | Net cash provided by (used in) investing activities | $20,071 | $(36,254) | | Net cash (used in) provided by financing activities | $(2,973) | $1,288 | | Change in cash, cash equivalents and restricted cash | $10,008 | $(36,692) | - The significant positive cash flow from investing activities in Q1 2022 was primarily driven by **$50.0 million** in proceeds from the deferred sale of fixed assets, related to a sale-leaseback transaction[20](index=20&type=chunk)[42](index=42&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - In Q1 2022, a joint venture in the Asia Pacific region was deconsolidated and is now accounted for as an equity method investment, resulting in a loss of **$2.3 million**[24](index=24&type=chunk) Revenue by Product Line (Q1 2022 vs Q1 2021, in thousands) | Product Line | Q1 2022 Revenue | Q1 2021 Revenue | | :--- | :--- | :--- | | Sealing systems | $311,832 | $331,483 | | Fuel and brake delivery systems | $153,067 | $174,680 | | Fluid transfer systems | $113,681 | $128,360 | - Restructuring charges for Q1 2022 were **$7.8 million**, a decrease from **$21.0 million** in Q1 2021, with the majority of current charges occurring in Europe[36](index=36&type=chunk) - As of March 31, 2022, total debt was approximately **$1.03 billion**, consisting mainly of Senior Notes, Senior Secured Notes, and a Term Loan[47](index=47&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A attributes Q1 2022 sales decline to production issues and FX, with gross profit sharply down due to inflation [Recent Trends and Conditions](index=24&type=section&id=Recent%20Trends%20and%20Conditions) - The company's performance is being impacted by significant global economic uncertainty, including inflation, supply chain disruptions (semiconductor shortages, Russia-Ukraine crisis), and lingering effects of the COVID-19 pandemic[84](index=84&type=chunk)[86](index=86&type=chunk) Light Vehicle Production Change (Q1 2022 vs Q1 2021) | Region | % Change | | :--- | :--- | | North America | (1.8)% | | Europe | (18.3)% | | Asia Pacific | 0.2% | | South America | (12.7)% | [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Sales Variance Analysis (Q1 2022 vs Q1 2021, in thousands) | Metric | Amount | | :--- | :--- | | 2021 Sales | $668,967 | | Volume / Mix | $(37,454) | | Foreign Exchange | $(10,059) | | Deconsolidation | $(8,470) | | 2022 Sales | $612,984 | - Gross profit decreased by **$46.8 million** year-over-year, primarily driven by commodity and wage inflation, unfavorable volume/mix, and foreign exchange[92](index=92&type=chunk) - Restructuring charges decreased by **$13.2 million** compared to Q1 2021, mainly due to lower charges in Europe[92](index=92&type=chunk) [Segment Results of Operations](index=28&type=section&id=Segment%20Results%20of%20Operations) Segment Sales (Q1 2022 vs Q1 2021, in thousands) | Segment | Q1 2022 Sales | Q1 2021 Sales | Change | | :--- | :--- | :--- | :--- | | North America | $321,894 | $339,036 | $(17,142) | | Europe | $131,414 | $165,776 | $(34,362) | | Asia Pacific | $103,753 | $114,225 | $(10,472) | | South America | $21,519 | $15,486 | $6,033 | Segment Adjusted EBITDA (Q1 2022 vs Q1 2021, in thousands) | Segment | Q1 2022 Adj. EBITDA | Q1 2021 Adj. EBITDA | Change | | :--- | :--- | :--- | :--- | | North America | $17,496 | $41,233 | $(23,737) | | Europe | $(14,657) | $(1,489) | $(13,168) | | Asia Pacific | $(742) | $3,552 | $(4,294) | | South America | $(409) | $(2,608) | $2,199 | | Consolidated | $145 | $38,540 | $(38,395) | [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) - The company believes cash from operations, cash on hand, and borrowings under its ABL Facility will be sufficient to meet funding requirements for the next twelve months[97](index=97&type=chunk) - Capital expenditures for the full year 2022 are anticipated to be between **$90 million** and **$100 million**[98](index=98&type=chunk) - As of March 31, 2022, the company had approximately **$98.7 million** of authorization remaining under its common stock repurchase program[99](index=99&type=chunk) [Non-GAAP Financial Measures](index=30&type=section&id=Non-GAAP%20Financial%20Measures) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net loss attributable to Cooper-Standard | $(61,360) | $(33,864) | | Income tax expense | $652 | $936 | | Interest expense, net | $18,177 | $17,784 | | Depreciation and amortization | $32,133 | $33,528 | | **EBITDA** | **$(10,398)** | **$18,384** | | Restructuring charges | $7,831 | $21,047 | | Deconsolidation of joint venture | $2,257 | — | | Impairment charges | $455 | — | | Gain on sale of business, net | — | $(891) | | **Adjusted EBITDA** | **$145** | **$38,540** | [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's quantitative and qualitative market risk disclosures since the 2021 Annual Report - There have been no material changes to the Company's market risk disclosures since the 2021 Annual Report[108](index=108&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls were effective as of March 31, 2022, with no material changes to internal controls - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by the report[110](index=110&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the quarter ended March 31, 2022[111](index=111&type=chunk) PART II. OTHER INFORMATION [Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchase program, including remaining authorization and shares repurchased for employee tax obligations - As of March 31, 2022, approximately **$98.7 million** of repurchase authorization remained under the company's common stock share repurchase program[114](index=114&type=chunk) Share Repurchases in Q1 2022 | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2022 | 1,310 | $22.41 | | February 2022 | 29,777 | $16.88 | | March 2022 | — | — | | **Total** | **31,087** | **N/A** | [Exhibits](index=35&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including management compensation agreements and required CEO/CFO certifications

Company Overview and Market Position - Cooper Standard holds leading market positions across its core product lines, including Sealing Systems, Fuel & Brake Delivery Systems, and Fluid Transfer Systems[6] - In 2021, Cooper Standard's revenue was $2.3 billion, including approximately $220 million from unconsolidated joint ventures[6] - The company's top 10 vehicle platforms account for approximately 40% of planned 2022 revenue, with an unweighted average content per vehicle (CPV) of approximately $155[11] Growth and Electric Vehicle Opportunities - Cooper Standard anticipates a CPS total sales growth of approximately 9% CAGR, expected to outpace industry projected growth[12] - The company projects approximately 50% CAGR in the EV segment, outpacing the market[16] - Electric vehicles offer a CPV growth opportunity of up to 20% compared to ICE vehicles[17] Strategic Diversification and Sustainability - The company is pursuing strategic diversification through its Advanced Technology Group, leveraging its expertise beyond the automotive industry[21, 22] - Cooper Standard is developing lightweight, recycled, and bio-based solutions to enhance its product portfolio and reduce its environmental footprint[20] Financial Position and Improvement Plan - The company has strong liquidity, with cash on hand and ABL availability sufficient to support operations and strategic initiatives[24] - Cooper Standard is targeting full recovery of material cost inflation through price negotiations and expanding index-based contracts[27] - The company is targeting a 15% reduction in above-the-plant labor costs through further global overhead and SGA&E rationalization[30]