STANDARD MOTOR PRODUCTS, INC. Standard Motor Products, Inc.
Q1 2024 Investor Presentation
1
Safe Harbor - Forward Looking Statements
You should be aware that except for historical information, the matters discussed herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements, including projections and anticipated levels of future performance, are based on current information and assumptions and involve risks and uncertainties which may cause actual results to differ materially from those discussed herein.
In addition, we use metrics such as Adjusted EBITDA and Income from Operations without Special Items throughout this presentation, which are non- GAAP measures.
You are urged to review all of our filings with the SEC and our press releases from time to time for details of risks and uncertainties that could cause future performance to vary from the expectations expressed or implied by the forward- looking statements herein and for certain reconciliations of GAAP to non-GAAP results.
2
SMP Corporate Snapshot
Founded:1919
HQ: Long Island City, NY
Locations: 34 Globally
Employees: 6,200*
2023 Financial Highlights
Revenue: $1.36B
Aftermarket: $1.1B
- Vehicle Control $738M
- Temperature Control: $338M
Engineered Solutions: $283M
EBITDA**: 9.3%
Dividend Yield: 2.9%
*includes JVs
**reflects adjusted EBITDA which is a non-GAAP financial measure; see reconciliation in appendix
2023 Sales Mix by Segment | 2023 EBITDA* Mix by Segment | |||||||||||||||
Temperature | Temperature | |||||||||||||||
Vehicle | Control 25% | Vehicle | Control 16% | |||||||||||||
Control 61% | ||||||||||||||||
Control 54% | ||||||||||||||||
Engineered | ||||||||||||||||
Solutions | ||||||||||||||||
Engineered | 23% | |||||||||||||||
Solutions | ||||||||||||||||
21% | ||||||||||||||||
Consistent Revenue Growth | Consistent Dividend Growth | |||||||||||||||
$1,600 | 3% | |||||||||||||||
$1,400 | $1,358 | $0.30 | . | $0.29 | ||||||||||||
$1,200 | $0.25 | |||||||||||||||
$1,000 | $949 | $0.20 | ||||||||||||||
Millions | $600 | |||||||||||||||
$800 | $0.15 | |||||||||||||||
$400 | $0.10 | $0.09 | ||||||||||||||
$200 | $0.05 | |||||||||||||||
$0 | 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 | $0.00 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020* | 2021 | 2022 | 2023 | ||
* Dividend paid out for two quarters only due to COVID-19 pandemic | 3 |
Global Footprint with Customer Adjacency
4
Strategy Overview
5
Strategic Objectives
Automotive Aftermarket
- Continued leadership in North American Aftermarket
- Best-in-class,full-line,full-service supplier of premium products within our categories
Engineered Solutions
- Innovative product solutions for multiple On-Highway and Off- Highway vehicle markets
- Leveraging our diverse customer relationships, engineering capabilities, operational skills, and global footprint
Sustainability &
Continuous Improvement
- Commitment to ongoing ESG and DEI initiatives
- Operational excellence in manufacturing, product development, and supply chain
Capital Allocation
- Capital investment supports future growth
- Take advantage of opportunistic M&A
- Effectively balance our use of debt and equity
- Dividends and stock repurchases
6
Aftermarket Snapshot
Vehicle Control - Category Sales | ||||
$500 | ||||
$400 | ||||
Millions | $300 | |||
$200 | ||||
$100 | ||||
$0 | ||||
Engine Mgmt. | Electrical & Safety | Wire Sets + Other | ||
2021 | 2022 | 2023 | ||
2023 Aftermarket Sales Mix | Nationally | |||
Recognized | ||||
Temperture Control | Vehicle Control | Brands | ||
31% | 69% |
Supplier to
All Major
Distributors
Millions
Temperature Control - Category Sales
$300
$250
$200
$150
$100
$50
$0
AC System Components | Other Thermal |
2021 2022 2023
*reflects adjusted EBITDA which is a non-GAAP financial measure; see reconciliation in appendix | 7 |
Aftermarket Strategy
Value Proposition
To be the best full-line,full-service supplier of premium vehicle control and
temperature control products
Our suite of products and services is designed to provide all the needed support
for our customer and the technicians who install our parts
8
Favorable Aftermarket Industry Trends
Number of Repairable Vehicles Continue to Climb
Car Parc Continues to Age
290 | U.S. Light Vehicle Parc | 284 |
260 258
Millions
230
200
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Source: Auto Care Association / IHS Markit
Years
Average Vehicle Age
12
8
4
0
2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
Source: Auto Care Association / IHS Markit |
+3% increase
12.1 12.2 12.5
2021 2022 2023
"Sweet Spot" Will Continue to Expand
180 | 151.5 | 159.0 | 165.1 | 166.1 | 165.9 | ||||||
160 | |||||||||||
140.6 | 142.0 | 6-15Year-Old | |||||||||
133.6 | 135.0 | ||||||||||
140 | 131.6 | ||||||||||
Millions | Vehicles in Operation | ||||||||||
120 | 2022: 142 Million | ||||||||||
80 | 2027: 165.9 Million | ||||||||||
100 | |||||||||||
60 | +16.8% increase | ||||||||||
40 | |||||||||||
20 | |||||||||||
0 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | |
6-11 Years Old | 12-15 Years Old | TOTAL |
Source: Auto Care Association / IHS Markit
DIFM Revenue Continues to Grow
$300 | $311B | |
$250 | ||
Billions | $200 | |
$150 | ||
$100 | $79B | |
$50 |
DIFM
DIY | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023F |
Source: Auto Care Association / Modern Tire Dealer | 9 |
Committed to Growing Technologies
DEGREE OF COMPLEXITY
ADVANCED INTERNAL COMBUSTION ENGINE COMPONENTS
SMP evolves to meet the advanced automotive technology of today and tomorrow
DIESEL
ENGINE COOLING
A/C COMPONENTS
EMISSION CONTROLS, VVT &
EVAP SYSTEMS
AIRFLOW
MANAGEMENT
IGNITION SYSTEM | FUEL | OIL TEMP CONTROL |
SYSTEM |
ADVANCED HEV, EV, AND POWERTRAIN-NEUTRAL COMPONENTS
ALTERNATIVE | ADAS | |
ENERGY | ||
POWER | ||
MANAGEMENT | ||
HVAC | SENSORS |
VEHICLE | ACTUATORS & |
MOTORS | |
ACTUATORS & | |
MOTORS | COMMUNICATIONS |
ELECTRIC & HYBRID | |
COMPRESSORS | |
ADVANCED A/C | |
COMPONENTS |
SWITCHES
AUXILIARY
COOLING
DOOR & WINDOW
COMPONENTS
TECHNOLOGY EVOLUTION | 10 |
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Disclaimer
Standard Motor Products Inc. published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 10:43:02 UTC.
