Specialist
Former VP at Cooper-Standard Holdings Inc
Agenda
- Trends and developments in the Tier 1 automotive supplier industry
- Demand trends across Cooper-Standard's (NYSE: CPS) product portfolio, including transition to electrification across sealing, fuel and brake delivery, and fluid transfer systems
- Near-term supply chain headwinds and cost exposures amid global shortage of semiconductors and inflationary pressures
- Medium- to long-term outlook
Questions
1.
Could you share 2-3 key trends or developments you’ve been following in the tier 1 automotive supplier sector?
2.
Could you highlight longer-lasting or permanent impacts on the tier 1 automotive suppliers arising from the pandemic?
3.
We touched on reduced production numbers from OEMs [original equipment manufacturers]. Could you discuss current demand dynamics and what could drive demand for Cooper-Standard’s components? What typically drives demand? Are there proxies we could track to serve as indicators for Cooper-Standard’s upside?
4.
Which tier 1 suppliers have the largest exposure to SUV and pickup truck platforms? Who’s positioned to benefit from this focus on higher-margin vehicles, and who isn’t positioned well for this shift?
5.
What are Cooper-Standard’s strengths? What’s its edge and how easily replicable is that across its segments?
6.
You were discussing how Cooper-Standard is a technology leader. How is the firm approaching electrification? What is the cadence? How will CAPEX be spent to transition without taking undue risk? As you mentioned, with the pandemic there is a slowdown on what will come next.
7.
It’s no surprise for me to call out some of the customer concentration Cooper-Standard has. How should we consider its ability to win new contracts in the auto sector, or maybe even diversifying into non-auto businesses? Do you feel it has enough expertise to enter other markets?
8.
You discussed earlier some of the supply chain issues and inflationary pressures. What do you think of the cadence and recovery of output or production rates? When do you think they’ll be back at 100%?
9.
Company executives on previous earnings calls have mentioned and emphasised operational efficiency as a major focus to offset some of these rising costs. How much more runway does the company have to manage OPEX? What levers can be pulled?
10.
Do you consider Cooper-Standard’s restructuring costs as recurring rather than one-time charges?
11.
Is there anything in the near term Cooper-Standard could do to enhance its cash or liquidity position? You touched on the price piece of margins.
12.
Might anyone be interested in acquiring Cooper-Standard or parts of its portfolio?
13.
What is the best-case scenario for Cooper-Standard over the next 12-18 months?
