Driving Value Through Culture, Innovation and Resultsfiles.shareholder.com/.../Investor_Presentation_1017_100217_v2.pdf · withstand legal challenges; cyber-attacks or other disruptions

INVESTOR PRESENTATION

October 2017

Driving Value Through Culture, Innovation and Results

22

Forward-Looking Statements

This presentation includes “forward-looking statements” within the meaning of U.S. federal securities laws, and we intend that such forward-looking statements be subject to the safe harbor created thereby. Our use of words “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “believe,” “forecast,” or future or conditional verbs, such as “will,” “should,” “could,” “would,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, we cannot assure you 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. Among other items, such factors may include: prolonged or material contractions in automotive sales and production volumes; our inability to realize sales represented by awarded business; escalating pricing pressures; loss of large customers or significant platforms; our ability to successfully compete in the automotive parts industry; availability and increasing volatility in costs of manufactured components and raw materials; disruption in our supply base; possible variability of our working capital requirements; risks associated with our international operations; foreign currency exchange rate fluctuations; our ability to control the operations of our joint ventures for our sole benefit; our substantial amount of indebtedness; our ability to obtain adequate financing sources in the future; operating and financial restrictions imposed on us under our debt instruments; the underfunding of our pension plans; significant changes in discount rates and the actual return on pension assets; effectiveness of continuous improvement programs and other cost savings plans; manufacturing facility closings or consolidation; our ability to execute new program launches; our ability to meet customers' needs for new and improved products; the possibility that our acquisitions and divestitures may not be successful; product liability, warranty and recall claims brought against us; laws and regulations, including environmental, health and safety laws and regulations; legal proceedings, claims or investigations against us; work stoppages or other labor disruptions; the ability of our intellectual property to withstand legal challenges; cyber-attacks or other disruptions in our information technology systems; the possible volatility of our annual effective tax rate; the possibility of future impairment charges to our goodwill and long-lived assets; and our dependence on our subsidiaries for cash to satisfy our obligations.

You should not place undue reliance on these forward-looking statements. We undertake no obligation to publicly update or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except where we are expressly required to do so by law.

This presentation also contains estimates and other information that is based on industry publications, surveys, and forecasts. This information involves a number of assumptions and limitations, and we have not independently verified the accuracy or completeness of the information.

33

COMPANY OVERVIEW

44

Leading Market Positions in All Product Lines

Value-added Technology Innovated by CPS – Driving Increased Sales, Margins, and Strong Customer Relationships

Significant Organic Growth Opportunities via Increasing Content per Vehicle (“CPV”) and New Business Wins on

High Volume Global Platforms

Advantaged Global Manufacturing Footprint Provides Access to High-volume Global Platforms

Adjacent markets strategy to accelerate value stream of innovations and diversify revenue and profit base

Cooper Standard - Value Drivers

1

3

4

5

2

Strong Financial Profile With Focus on Cash Flow Generation and Margin Improvement6

55

Core Product Lines2016 Revenue by product / % of Total Revenue

Sealing Systems

#1 Globally

Fuel & Brake Delivery

Systems

#2 Globally

Fluid Transfer

Systems

#3 Globally

Anti-Vibration

Systems

North American Leader

Sealing Systems$1.8B / 52%

#1 Globally


Systems$0.7B / 21%

#2 Globally

Fluid Transfer

Systems$0.5B / 14%

#3 Globally

Anti-Vibration

Systems$0.3B / 9%


Market position data by Booz & Co. (2013) and Boston Consulting Group (2016)

1 MARKET LEADER

66

Sealing Systems

#1 Globally


Systems

#2 Globally

Fluid Transfer

Systems

#3 Globally

Anti-Vibration

Systems


Sealing Systems$1.8B / 52%

#1 Globally


Systems$0.7B / 21%

#2 Globally

Fluid Transfer

Systems$0.5B / 14%

#3 Globally

Anti-Vibration

Systems$0.3B / 9%


Large, Fragmented Markets Represent Significant Growth Potential

Global Market Size based on IHS light vehicle production data and average content per vehicle

(1) includes non-consolidated JV

(2) excludes Fuel Rails, included in product line revenue of $0.7B

Global Market Size: $8.3 billion

CPS Current Share: 24%1


CPS Current Share: 9%2


CPS Current Share: 7%


CPS Current Share: 3%

Market

Market

Market

Market

CPS

CPS

CPS

CPS

1 MARKET LEADER

Market position data by Booz & Co. (2013) and Boston Consulting Group (2016)

Key Competitors

Henniges

Hutchinson

Standard Profil

Saar Gummi

Toyoda Gosei

TI Automotive

Martinrea

Usui

Sanoh

Avon

Hutchinson

Tristone

Teklas

ContiTech

ContiTech

Hutchinson/Paulstra

TBVC

Tokai/Sumitomo Riko

77

• Creates need for quieter interiors

• Will affect vehicle ownership

model and durability

requirements

• Technology is ready, policy is not

• Requires weight reduction

• Adherence to green materials &

processes

• Introduces alternative powertrains

• Public slow to adopt

• Produced in two or more regions

• Common global architectures:

fewer platforms, more variants

• Well positioned suppliers gain

market share

• Regional suppliers left behind

Accelerating Growth and InnovationThree Key Drivers (“MEGATRENDS”) Will Impact the Industry for the Next Ten Years

Global PlatformsAutonomous and

Connected Vehicles

Emissions / Fuel

Economy Legislation

Globally

2 ACCELERATING GROWTH

88

Growth Continues to Outpace the Industry

LV Production

Growth1

CS

Sales Growth

CS

Adj. Sales Growth2

Adj. Sales Growth

vs Market

North America (3.0%) 4.5% 1.3%

Europe (3.0%) (7.7%) (3.6%)

Asia Pacific (ex. Japan) (0.5%) 21.2% 12.0%

South America 15.9% 30.7% 19.7%

Global (ex. Japan) (1.1%) 3.4% 1.6%

1 Source: IHS

2 Excludes impact from FX and mergers & acquisitions.

Second Quarter 2017 Year-Over-Year Change


99

Strong Content in the Right Segments62% of 2016 Global Revenue From LT/SUV/CUV

2013 2014 2015 2016 2017 2018 2019 2020 2021Car Crossover Truck

84.793.1

103.5• Crossovers and light trucks to

comprise 57% of the global

market by 2021

• Cooper Standard CPV on

crossovers is 26% higher

than on cars


light trucks is 120% higher

than on cars

+0.9%

CAGR

+4.8%

CAGR

+0.3%

CAGR

Projected Growth

2016-2021

* Source: IHS

Global Light Vehicle Production - Million Units*


1010

2013 2014 2015 2016 2017 2018 2019 2020 2021

Car Crossover Truck

16.2

17.818.6

+0.0%

CAGR

+3.7%

CAGR

Mix Advantage in North America77% of 2016 North America Revenue From LT/SUV/CUV

• Crossovers and light trucks

will comprise 66% of the

N. Am. market by 2021


crossovers is 42% higher

than on cars


light trucks is 260% higher

than on cars

-1.5%

CAGR

Projected Growth

2016-2021

* Source: IHS

North America Light Vehicle Production - Million Units*


1111

Aggressive Market Penetration to Drive Higher Content

2013 2014 2015 2016 2017 2018 2019 2020 2021Car Crossover Truck

21.3

27.4

31.1

• Cooper Standard average

CPV in China expected to

double by 2021

+0.4%

CAGR

+6.3%

CAGR

0.0%

CAGR

Projected Growth

2016-2021

* Source: IHS

Greater China Light Vehicle Mix - Million Units*


1212

Powertrain Trends Providing OpportunityInternal Combustion and Hybrid Vehicles Continue Market Share Dominance

2016 2017 2018 2019 2020 2021

Internal Combustion Hybrid All Electric

97%

3%

3%

14%

83%

+40%

CAGR

+39%

CAGR

-1%

CAGR

* Source: IHS

Global Light Vehicle Production by Powertrain*


1313

Products Essential Across all Powertrains

X2

Internal

Combustion Hybrid All Electric

Sealing Systems

Fuel & Brake

Delivery Systems

Fluid Transfer

Systems

Anti-Vibration

Systems


1414

2017 Planned New Product/Plant Launches

Q1 Q2 Q3 Q4 Total

North America 7 18 12 7 44

Europe 14 20 19 21 74

Asia Pacific 5 15 13 17 50

South America 0 1 4 0 5

Total 26 54 48 45 173

• Planned launches up nearly 8% vs.

2016

• Majority of new launches are on global

platforms

• Includes both new and replacement

business

• Newly launched business, continued

improvements in operating efficiency

and restructuring savings expected to

drive higher margins in 2H 2017

– 3Q margins subject to typical industry

seasonality

– 4Q margins to benefit most from ramp

up of new launches, operating

efficiencies


1515

NORTH AMERICA

34 Manufacturing

8 R&D

4 Sales/Admin

12 Other

30 US, 11 CA, 9 MEX

SOUTH AMERICA

3 Manufacturing

1 Sales/Admin

4 Brazil

EUROPE

24 Manufacturing

8 R&D

6 Sales/Admin

6 Other

17 Eastern, 17 Western

ASIA PACIFIC

29 Manufacturing

5 R&D

4 Admin/Sales

1 Other

15 China, 11 India, 6 Korea,

2 Japan, 1 Thailand

Positioned to Win More Business on Global Platforms

52%* 2%* 30%* 16%*

* % of 2016 Total Revenue

3 ADVANTAGED GLOBAL FOOTPRINT

1616

Products Well Represented on Key Global Vehicles

VehicleGlobal

Platform

Projected

Units1 Sealing

Fuel and

Brake

Fluid

Transfer

Anti-

Vibration

Ford F-150 1,024 • • • •

GM Cruze 1,942 • • •

GM Silverado 1,165 • • •

Ford Explorer 160 • • •

GM Malibu 852 • • •

Ford Edge 898 • • •

Ford Focus 2,028 • • •

Daimler C-Class 1,121 • •

Ford Fiesta 1,320 • • • •

FCA 1500 618 • •

(1) Average annual planned production for 2017 – 2021 in thousands. Source: IHS


1717

Ford30%

GM20%

FCA12%

VW6%

PSA7%

Daimler6%

Renault Nissan

3%Tata3%

BMW 2%

Geely2%

Other9%

Supporting Global Customers

RENAULT

2016 Revenue

$3.47B


http://www.daimler.com/dccom

1818

2004A

South America

2%

North America

52%Europe

30%

2016A

Asia Pacific

16%

South America

3%

North America

70%Europe

23%

Asia Pacific

4%

Enhancing Revenue Diversification by Region


1919

We Expect to Profitably Grow our China BusinessUSD Millions

China Key Highlights

• Revenue expected to grow faster than

market

• Increasing production will improve capacity

utilization and overhead absorption

• Increasing localization of technical

capabilities and vertical integration of key

components expected to further drive higher

margins and ROIC

$1,200

2013 2014 2015 2016 2017 2018 2019 2020 2021

*Estimates based on current management projections, IHS production estimates

~


*

2020

2017 2018 2019 2020 2021

75% 64% 61% 57%

14%19%

25%

26%

27%

4%6%

11%

13%

16%

82%

Expanding Our Product Portfolio in ChinaPlanned Revenue Split by Product

+78.5%

FTS CAGR

+50.1%

FBD CAGR

+15.4%

Sealing CAGR


2121

Improving Capacity Utilization from 70% to >90%Eight Plants in China with More than $100m Revenue by 2021 vs Two Plants in 2017

2017 2021

$100m


2222

Providing Customer Solutions through InnovationDriving Sustainable Competitive Advantage for Cooper Standard

ArmorHose™, ArmorHose™ II, and ArmorHose™ III

Eliminates requirement for protective sleeves on hoses

MagAlloy™ Coating

Improves corrosion performance and product life utilizing proprietary technology

Fortrex™ Sealing

Reduces weight, improves performance, and offers appearance options

Gen III Posi-Lock Quick Connector

Simplifies systems; reduces mass and complexity

4 INNOVATION / VALUE-ADD TECHNOLOGY

2323

Delivering Breakthrough Innovations to the Market

$164m MagAlloy™

(Fuel and Brake Delivery)

$100m ArmorHose™

(Fluid Transfer Systems)

$70m Fortrex™

(Sealing)

* Contract awards for innovation products since 2016. Expected annualized revenue at full planned production. Commercialized innovation products include: MagAlloy™, ArmorHose™, ArmorHose™ TPV, Gen III Posi-Lock, TP Microdense, and Fortrex™. Includes new and replacement business.

$385mTotal Contract Awards

(Annualized Revenue) for Innovation Products

$51m Other

4 INNOVATION / VALUE-ADD TECHNOLOGY

2424

Leveraging Innovation in the Non-Automotive Rubber Market

$59b Industrial Equipment / Wire

& Cable / Consumer / Medical

$10b Defense & Other

$7b Building / Construction

$76bMarket Opportunity*

*Finished goods value; Source: The Freedonia Group and Company estimates

5 ADJACENT MARKETS STRATEGY

2525

Targeted Markets Offer Significant Near-term OpportunitySigned First License Agreement of Fortrex™ Outside of the Automotive Industry During Q2 2017

Building / Construction (1.75B lbs.*)

• Wall / glass panels

• Roofing

• Flooring

Wire & Cable (1.5B lbs.*)

• Insulation and jackets

• Fiber optic buffers

• TELCOM

• Industrial and Mining

Footwear (1.5B lbs.*)

• Athletic mid-soles

• Uni-soles (mid + bottom)

• High performance / light

weight

* Source: The Freedonia Group, Company Estimates


2626

Adjacent Markets - Industrial & Specialty Group

• Leverage core technologies in

immediate adjacencies

• $2.2 billion addressable market

– Electric vehicles

– Commercial vehicles

– Agriculture

– Construction

– Power sports

– Marine

– Aftermarket


2727

FINANCIAL OVERVIEW

2828

Financial Results

Second Quarter First Half

2017 2016 2017 2016

Sales $909.1 $879.3 $1,811.2 $1,741.8

Gross Profit $172.2 $172.0 $342.3 $331.8

% Margin 18.9% 19.6% 18.9% 19.0%

Adjusted EBITDA1 $113.8 $108.6 $224.8 $212.1

% Margin 12.5% 12.3% 12.4% 12.2%

Net Income $40.5 $40.2 $82.2 $71.5

EPS (Fully diluted) $2.14 $2.16 $4.34 $3.83

Adjusted Net Income1 $49.0 $52.2 $104.9 $100.3

Adjusted EPS (Fully diluted)1 $2.60 $2.81 $5.54 $5.37

CAPEX $39.9 $26.3 $98.1 $81.4

% of Sales 4.4% 3.0% 5.4% 4.7%

(USD millions, except per share amounts)

1 See Appendix for definitions and reconciliation to U.S. GAAP.2 Certain amounts have been recast due to the adoption of ASU 2016-09.

2

6 STRONG FINANCIAL PROFILE

2929

Track Record of Increasing Margins and ROIC

9.3%9.6%

10.8%

12.0%12.4%

2013 2014 2015 2016 H1 2017

5.9%

6.8%

9.8%

12.8% 12.8%

2013 2014 2015 2016 H1 2017

Adjusted EBITDA1 Margin Return on Invested Capital2

1 See appendix for information regarding non-GAAP items

2 Defined as TTM net operating profit after tax/average invested capital. Source: Bloomberg


3030

Strong Balance Sheet and Credit Profile

Gross Debt and Net Debt (USD millions)

2.0x1.8x

Q2 2016 Q2 2017

$434 $353

$340$400

Q2 2016 Q2 2017

Net Debt Cash

$774

Leverage Ratio (Gross Debt / TTM Adj. EBITDA1)

Numbers are subject to rounding

1 See Appendix for definitions and reconciliation to GAAP.

Liquidity Profile (USD millions)

10.0x 9.9x

Q2 2016 Q2 2017

Interest Coverage Ratio (TTM Adj. EBITDA1 / Interest)

$340 $400

$123$180

Q2 2016 Q2 2017

Cash Revolver

$580

$463

$753


3131

Priorities for Capital Allocation

Pro

fita

ble

Gro

wth Organic growth

Win and launch new business• On track for 173 program launches in FY 2017

Innovation• Continued investments in new material science

Initiatives to enhance margins European restructuring• ~$23m remaining spend; to be completed early 2018

Strategic M&A Plug-ins with immediate synergies• Continuous evaluation of value-add opportunities

Retu

rnto

Sta

keh

old

ers Share Repurchase Active repurchase program in place

• $92m remaining authorization

Pay Down Debt Balance sheet flexibility• Total debt reduced by $10m YTD


3232

APPENDIX

3333

Non-GAAP Financial MeasuresEBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share and free cash flow are measures not

recognized under U.S. GAAP and which exclude certain non-cash and special items that may obscure trends and operating performance not indicative

of the Company's core financial activities. Management considers EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted

earnings per share and free cash flow to be key indicators of the Company's operating performance and believes that these and similar measures are

widely used by investors, securities analysts and other interested parties in evaluating the Company's performance. In addition, similar measures are

utilized in the calculation of the financial covenants and ratios contained in the Company’s financing arrangements and management uses these

measures for developing internal budgets and forecasting purposes. EBITDA is defined as net income adjusted to reflect income tax expense, interest

expense net of interest income, depreciation and amortization, and adjusted EBITDA is defined as EBITDA further adjusted to reflect certain items that

management does not consider to be reflective of the Company's core operating performance. Adjusted EBITDA margin is defined as adjusted

EBITDA divided by sales. Adjusted net income is defined as net income adjusted to reflect certain items that management does not consider to be

reflective of the Company's core operating performance. Adjusted basic and diluted earnings per share is defined as adjusted net income and adjusted

diluted net income, respectively, divided by the weighted average number of basic and diluted shares, respectively, outstanding during the period. Free

cash flow is defined as net cash provided by operating activities minus capital expenditures and is useful to both management and investors in

evaluating the Company’s ability to service and repay its debt.

When analyzing the Company’s operating performance, investors should use EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net

income, adjusted earnings per share and free cash flow as supplements to, and not as alternatives for, net income, operating income, or any other

performance measure derived in accordance with U.S. GAAP, and not as an alternative to cash flow from operating activities as a measure of the

Company’s liquidity. EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share and free cash flow 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 U.S. GAAP. Other companies may report EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per

share and free cash flow differently and therefore the Company's results may not be comparable to other similarly titled measures of other companies.

In addition, in evaluating adjusted EBITDA and adjusted net income, it should be noted that in the future the Company may incur expenses similar to or

in excess of the adjustments in the below presentation. This presentation of adjusted EBITDA and adjusted net income should not be construed as an

inference that the Company's future results will be unaffected by special items. Reconciliations of EBITDA, adjusted EBITDA, adjusted net income,

adjusted earnings per share and free cash flow follow.

3434

EBITDA and Adjusted EBITDA Reconciliation

(1) Certain amounts have been recast due to the adoption of ASU 2016-09.

(2) Impairment charges related to fixed assets.

(3) Loss on refinancing and extinguishment of debt relating to the May 2017 amendment of the Term Loan Facility.

(4) Fees and other expenses associated with the March 2016 secondary offering.

(Unaudited, Dollar amounts in thousands)

2017 2016 (1)

2017 2016

Net income attributable to Cooper-Standard Holdings Inc. 40,456$ 40,189$ 82,162$ 71,512$

Income tax expense 20,530 16,021 32,420 30,787

Interest expense, net of interest income 10,293 9,995 21,532 19,747

Depreciation and amortization 33,188 30,169 65,045 60,374

EBITDA 104,467$ 96,374$ 201,159$ 182,420$

Restructuring charges 8,323 12,206 18,311 23,038

Impairment charges (2)

— — 4,270 —

Loss on refinancing and extinguishment of debt (3)

1,020 — 1,020 —

Secondary offering underwriting fees and other expenses (4)

— — — 6,500

Other — — — 155

Adjusted EBITDA 113,810$ 108,580$ 224,760$ 212,113$

Three Months Ended June 30, Six Months Ended June 30,

3535

Adjusted EBITDA Margin, Financial RatiosTwelve Months Ended June 30, 2017



(3) Settlement charges related to the initiative to de-risk the U.K pension plans.

(Unaudited, Dollar amounts in thousands) Twelve

Months Ended

30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 30-Jun-17

Net income attibutable to Cooper Standard Holdings Inc. $ 36,362 $ 31,114 $ 41,706 $ 40,456 $ 149,638

Income tax expense 12,525 11,009 11,890 20,530 55,954

Interest expense, net of interest income 10,114 11,528 11,239 10,293 43,174

Depreciation and amortization 31,325 30,961 31,857 33,188 127,331

EBITDA $ 90,326 $ 84,612 $ 96,692 $ 104,467 $ 376,097

Restructuring charges 10,430 12,563 9,988 8,323 41,304


- 1,273 4,270 - 5,543


- 5,104 - 1,020 6,124

Settlement charges (3)

- 281 - - 281

Adjusted EBITDA $ 100,756 $ 103,833 $ 110,950 $ 113,810 $ 429,349

Debt

Debt payable within one year $29,817

Long-term debt 722,988

Total Debt 752,805

Less: cash and cash equivalents (400,186)

Net Debt $ 352,619

Leverage Ratio (Total debt/Adjusted EBITDA) 1.8

Net Leverage Ratio (Net debt/Adjusted EBITDA) 0.8

Interest coverage ratio (Adjusted EBITDA/Interest expense) 9.9

Sales $ 855,656 $ 875,434 $ 902,051 $ 909,145 $ 3,542,286

Adjusted EBITDA Margin (Adj. EBITDA/Sales ) 11.8% 11.9% 12.3% 12.5% 12.1%

Three Months Ended

3636

Adjusted Net Income and Adjusted EPS (Unaudited, dollar amounts in thousands except share and per share amounts)

2017 2016 (1)

2017 2016

Net income attributable to Cooper-Standard Holdings Inc. 40,456$ 40,189$ 82,162$ 71,512$

Restructuring charges 8,323 12,206 18,311 23,038


— — 4,270 —


1,020 — 1,020 —

Secondary offering underwriting fees and other expenses (4)

— — — 6,500

Other — — — 155

Tax impact of adjusting items (5)

(780) (206) (875) (864)

Adjusted net income 49,019$ 52,189$ 104,888$ 100,341$

Weighted average shares outstanding

Basic 17,863,203 17,242,277 17,803,430 17,342,321

Diluted 18,865,967 18,591,647 18,919,591 18,669,123

Earnings per share

Basic 2.26$ 2.33$ 4.61$ 4.12$

Diluted 2.14$ 2.16$ 4.34$ 3.83$

Adjusted earnings per share:

Basic 2.74$ 3.03$ 5.89$ 5.79$

Diluted 2.60$ 2.81$ 5.54$ 5.37$

Three Months Ended June 30, Six Months Ended June 30,

(1) Certain amounts have been recast due to the adoption of ASU 2016-09.



(4) Fees and other expenses associated with the March 2016 secondary offering.

(5) Represents the elimination of the income tax impact of the above adjustments, by calculating the income tax impact of these adjusting items using the appropriate tax rate for the jurisdiction where the

charges were incurred.

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