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New Business Models for Suppliers: Turning Challenges into Advantages Jim McElya, President and CEO Cooper Standard Automotive January 18, 2006 Jim McElya,

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Presentation on theme: "New Business Models for Suppliers: Turning Challenges into Advantages Jim McElya, President and CEO Cooper Standard Automotive January 18, 2006 Jim McElya,"— Presentation transcript:

1 New Business Models for Suppliers: Turning Challenges into Advantages Jim McElya, President and CEO Cooper Standard Automotive January 18, 2006 Jim McElya, President and CEO Cooper Standard Automotive January 18, 2006

2 2 Cooper Standard Automotive Who We Are Cooper-Standard Automotive LTM Sept. 05 sales: $1,844 LTM Sept. 05 Adjusted EBITDA: $202 13,269 employees 48 locations Fluid Handling LTM Sept. 05 sales (1) :$634 % total:34% Global market position:#3 ($ in millions) Body Sealing LTM Sept. 05 sales (1) :$893 % total:48% Global market position:#1 Direct, control, and transport fluids and vapors throughout a vehicle Seal the doors, windows, and other parts of the vehicle from water leakage and wind noise Control and isolate noise and vibration in a vehicle and improve ride and handling (1)Excludes corporate eliminations NVH Control LTM Sept. 05 sales (1) :$353 % total:18% N.A. market position:#1

3 3 Cooper Standard History The Standard Products Company Sales: $1,100MM Products:NVH, Sealing The Standard Products Company Sales: $1,100MM Products:NVH, Sealing Siebe Automotive Siebe Automotive Sales: $400MM Products:Fluid Handling Siebe Automotive Siebe Automotive Sales: $400MM Products:Fluid Handling Acquired October 1999 Acquired January 2000 Divestitures/Other Holm Industries Holm Industries Oliver Rubber Oliver Rubber Winnsboro WinnsboroDivestitures/Other Holm Industries Holm Industries Oliver Rubber Oliver Rubber Winnsboro Winnsboro Cooper Engineered Products of Cooper Tire Cooper Engineered Products of Cooper Tire Sales: $425MM Products:NVH, Sealing, Hose Cooper Engineered Products of Cooper Tire Cooper Engineered Products of Cooper Tire Sales: $425MM Products:NVH, Sealing, Hose CSA Division of CTR Exited Facilities EstoverEstover LangageLangage ClevelandCleveland Exited Facilities EstoverEstover LangageLangage ClevelandCleveland Sold December 2004 Successful Integrations Brand-name Global OEM Supplier

4 4 The Future Looked Bright for Cooper Standard Automotive Good Year for Sales & Profits 52 Plants 18,000 Employees The Year 2000 Environment for Success was Right

5 5 The Future Looked Bright for the Industry The Year 2000 Environment for Success was Right US auto sales headed for 2nd best month ever… Detroit Automakers posting healthy earnings… Toyota expects to gain U.S. market share in 2000… Ford says 2000 will set a record… Mitsubishi and DaimlerChrysler agree to alliance… Ford to spin off Visteon… DaimlerChrysler expects to top 2000 revenue goal… Supplier consolidation continues at rapid pace… Automotive trade exchange to be called Covisint… Competition heats up in Chinese auto market…

6 6 Industry Challenges Environment for Success was Volatile Foreign Automakers boost N.A. market share… Suppliers face tough times ahead… (9/11) U.S. Automakers suspend production… 0% financing brings back buyers… U.S. auto-parts makers resist more price reductions… Big suppliers reject DCX 5% demand… GM considers making more European cuts… Federal Mogul files for bankruptcy… Ford slashes production, warns of lower earnings… Rougher roads lie ahead for Japan’s automakers…

7 7 What Have We Done Over Time? 18,500 Employees Moved More Products to LCM Countries Mexico Czech Republic Poland Expanded into China Plants 40 Plants 13,250 Employees 1/3 of CSA Employees in LCM Countries $1.5 Billion USD in Sales $1.8B LTM 9/30/05 USD Sales

8 8 Results $1,385.9 M USD Sales thru Q3 of ’05 $202M USD LTM 9/30/05 Adjusted EBITDA Solid Results; Others struggled The Year 2005

9 9 Results The Year 2005 Acquired Rubber Hose Operation from Gates Equity Investment in Guyoung Tech Co. Honored with Various Industry & Customer Awards Announced Acquisition Fluid Handling Systems Division

10 10 Implement low-cost business model Eliminate Excess capacity Deal with material challenges & pricing issues Expand product lines & systems capabilities Move operations to low-cost manufacturing countries Achieved Increased Profits and Attained Status as a Global Player in Industry Examine old business model Summary of CSA Advantages Replace E l i m i n a t e N e g o t i a t e R e l o c a t e G r o w


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