Cooper-Standard (CPS) 8-K Second Quarter 2011 Earnings Call

Cooper Standard 2Q 2011

Second Quarter 2011 Earnings Call

August 16, 2011

Exhibit 99.1

cooperstandard

Introduction & Agenda

•

Introduction:

Glenn

Dong,

Treasurer

•

Executive

Overview:

Jim

McElya,

CEO

•

Business

Highlights:

Keith

Stephenson,

COO

•

Financial

Review

&

Updated

Guidance:

Allen

Campbell,

CFO

•

Questions & Answers

2

cooperstandard

Safe Harbor

3

In addition to historical information, certain statements contained herein are forward-looking statements within the

meaning of federal securities laws, and Cooper Standard Automotive (Cooper Standard) intends that such forward-

looking statements be subject to the safe-harbor created thereby. These forward-looking statements include

statements concerning the company’s plans, objectives, goals, strategies, future events, future revenue or

performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, business trends, the

impact of “fresh-start”

accounting, the impact of the company’s bankruptcy on its future performance and other

information

that

is

not

historical

information.

When

used

herein,

the

words

“estimates,”

“expects,”

“anticipates,”

“projects,”

“plans,”

“intends,”

“believes,”

“forecasts,”

or

future

or

conditional

verbs,

such

as

“will,”

“should,”

“could,”

or “may,”

and variations of such words or similar expressions are intended to identify forward-looking statements.

All forward-looking statements, including, without limitation, management’s examination of historical operating

trends and data, are based upon Cooper Standard’s current expectations and various assumptions. Cooper

Standard’s expectations, beliefs and projections are expressed in good faith and Cooper Standard believes there is

a reasonable basis for them. However, no assurances can be made that these expectations, beliefs and

projections will be achieved. Forward-looking statements are not guarantees of future performance and are subject

to significant risks and uncertainties that may cause actual results or achievements to be materially different from

the future results or achievements expressed or implied by the forward-looking statements.

cooperstandard

Safe Harbor

4

This presentation includes forward-looking statements, reflecting current analysis and expectations, based on what

are believed to be reasonable assumptions. Forward-looking statements may involve known and unknown risks,

uncertainties and other factors, which may cause actual results to differ materially from those projected, stated or

implied, depending on many factors, including, without limitation: the inability to compare the company’s financial

condition

or

results

historically

due

to

fresh

start

accounting;

the

ability

to

maintain

contracts

and

suppliers

and

customer relationships; limitations on flexibility in operating our business contained in our debt agreements; our

dependence on the automotive industry; availability and cost of raw materials; our exposure to natural disasters; our

dependence on certain major customers; competition in the automotive industry; sovereign and other risks related to

our conducting operations outside the United States; the uncertainty of our ability to achieve expected cost

reduction savings; our exposure to product liability and warranty claims; labor conditions; our vulnerability to

changes

in

interest

rates;

our

ability

to

meet

customers’

needs

for

new

and

improved

products

in

a

timely

manner;

our ability to attract and retain key personnel; potential conflicts of interest between our owners and us; our legal

rights to our intellectual property portfolio; our pension plans; and environmental and other regulations. There may

be other factors that may cause the company’s actual results to differ materially from those projected in any

forward-looking statement. Accordingly, there can be no assurance that Cooper Standard will meet future results,

performance or achievements expressed or implied by such forward-looking statements. This paragraph is included

to provide a safe harbor for forward-looking statements, which are not generally required to be publicly revised as

circumstances change and which Cooper Standard does not intend to update.

There may be other factors that may cause the company’s actual results to differ materially from those projected in

any forward-looking statements. Cooper Standard undertakes no obligation to update or revise forward-looking

statements to reflect events or circumstances that arise after the date such statements were made or to reflect the

occurrence of unanticipated events.

Jim McElya

Chairman & CEO

Executive Overview

2Q 2011

cooperstandard

Executive Overview: 

Second Quarter 2011 Review

•

Continued revenue and earnings growth:

–

2Q sales growth of 21%, up across all regions

–

2Q  adjusted EBITDA margin of 11.9%

•

Resulting from:

–

Contributions from strategic acquisitions

–

Business wins on global platforms

–

Leveraging footprint in Brazil, India, and China

–

Continued focus on cost discipline

6

cooperstandard

Executive Overview: 

Second Quarter 2011 Review

•

Strategic progress:

–

French JV on track to deliver $150 million in

incremental sales

»

Added AVS and hose capabilities in Europe

»

Expanded footprint in India

–

Strengthening global coverage

»

Acquired 20% share in Nishikawa Thailand,

expanding global partnership

»

Announced expansion in Romania

7

cooperstandard

8

Executive Overview:  Industry Trends

•

Increased M&A activity

–

Ongoing consolidation of supply base

•

Raw material concerns

–

Escalating costs

–

Availability challenges

•

Demand for new technology

–

Fuel economy and emission standards

driving innovation

•

Impact of Japan production slowdown

–

Sales deferred

Business Highlights

2Q 2011

Keith Stephenson

Chief Operating Officer

cooperstandard

10

Business Highlights Second Quarter

•

Sales improvement due to recovering

volumes and mix

•

French joint venture expanding business with

European customers

•

Continued global footprint evolution

•

Strategically growing Fluid business

Footprint Evolution

Asia Pacific

Asia Pacific

Americas

Americas

Europe

Europe

Recent Footprint Expansion:

•

Craiova, Romania

•

Czestochowa, Poland

•

Mumbai, India

•

Nakhonratchasima, Thailand

•

Sao Paulo, Brazil

cooperstandard

12

Strategic Growth and Expansion of

Fluid Business

•

Benefitting from strategic focus on expanding

thermal management and emissions products

»

Supplying exhaust gas recirculation (EGR)

modules to Audi

»

Launched brushless water pumps to Renault,

Nissan and PSA

»

Won wastegate actuator business with VW

»

Localized fluid tubing facilities in China and India

cooperstandard

Vehicle Launches 2    Quarter 2011

13

–

Audi –

W36 Platform

Emissions

–

Fisker -

Karma

Thermal Management

–

GM -

Meriva

Sealing

–

Peugeot 508

Sealing

–

Porsche –

911 Coupe, 911

Convertible, Boxster

Sealing, Fluid Handling

–

Land Rover -

Range Rover

Evoque

Fuel,

Brake

and

Emissions

Land Rover Evoque

Peugeot 508

Audi

GM Meriva

Fisker Karma

Note: Photos are representative and may not reflect final production models

Porsche 911

nd

Financial Overview

2Q 2011

Allen Campbell

Chief Financial Officer

cooperstandard

2Q and Year-to-Date 2011 Performance

15

$ Millions

Q2 2010

Q2 2011

Net Sales

$628.4

$760.5

Operating Profit

$  36.6

$  17.2

Gross Profit

$106.2

$ 123.7

YTD  2010

YTD 2011

$1,224.8

$1,449.2

$     87.6

$    68.6

$   210.7

$   244.5

Net Income

$281.2

$  19.0

$   284.6

$    64.0

Adjusted EBITDA

(excluding qtr. one times)

$  90.3

$   147.6

$  182.2

$  73.8

% Margin

11.9%

12.1%

11.7%

12.6%

SGA

$  62.1

$  65.6

$   115.2

$   126.5

cooperstandard

EBITDA and Adjusted EBITDA Reconciliation

$ USD Millions

2010

2011

Net Income

$284.6

$ 64.0

Provision for income tax expense

40.9

EBITDA

$418.0

$ 163.7

Restructuring*

6.3

23.9

Adjusted EBITDA

$ 147.6

$ 182.2

18.8

Net interest expense

48.0

20.6

Depreciation and amortization

44.5

60.3

Inventory Fair Value *

1.1

Stock compensation

5.3

EDITDA and Adjusted EBITDA are Non-GAAP measures. Reference comments on slide 24

*Net of Minority Interest impact in France JV

Reorganization / Fresh Start

--

Foreign Exchange

17.5

--

(303.4)

Net gain on partial sale of joint venture

8.1

0.7

--

(11.4)

6

Months

Ended

June

30

16

th

cooperstandard

Cash Flow 2Q 2011

Cash balance as of March 31

259.7

$          

   Cash generated

53.8

Cash balance as of June 30

313.5

$          

($ in Millions)

Q2 - 2011

YTD - 2011

Cash from business

36.8

$       

103.1

$         

Pension funding

(2.9)

(28.5)

Changes in operating assets & liabilities

14.2

(48.1)

     Cash from operations

48.1

$       

26.5

$          

Capital expenditures

(29.3)

(45.5)

     Cash from operations less CAPEX

18.8

$       

(19.0)

$         

Acquisition of business, plus cash acquired

37.3

30.9

Proceeds from partial sale of joint venture

-

16.0

Proceeds from sale of assets

0.1

0.5

Financing activities

(2.0)

(6.2)

Foreign exchange/other

(0.4)

(3.2)

     Net cash increase

53.8

$       

19.0

$          

17

cooperstandard

18

Revised  Guidance*

•

Sales:  $2.8 billion -

$2.9 billion

•

Capital expenditures: $105 million -

$115 million

•

Cash restructuring: $50 million -

$60 million

•

Cash taxes:  $25 million -

$30 million

* Forecast is based on Cooper Standard North American production

of 13.1 million, and Europe (including Russia)

production of 19.2 million.

cooperstandard

Non-GAAP Financial Measures

19

EBITDA and adjusted EBITDA are measures not recognized under Generally

Accepted Accounting Principles (GAAP) which exclude certain non-cash and non-

recurring items.

When analyzing the company’s operating performance, investors should use

EBITDA and adjusted EBITDA in addition to, and not as alternatives for, net income

(loss), operating income, or any other performance measure derived in accordance

with GAAP, or as an alternative to cash flow from operating activities as a measure

of the company’s performance. EBITDA and adjusted EBITDA have limitations as

analytical

tools

and

should

not

be

considered

in

isolation

or

as

substitutes

for

analysis of the company’s results of operations as reported under GAAP. Other

companies may report EBITDA and adjusted EBITDA differently and therefore

Cooper Standard’s results may not be comparable to other similarly titled measures

of other companies.

Questions & Answers

cooperstandard

2Q 2011 Summary

•

Continued execution on our business plan

•

Investments filling strategic needs and

complementing organic growth

•

Effectively managing impact of raw material

increases

•

Further evolving organization to support global

customers

21