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Company Overview

August 2018

2

Forward-Looking Statements

Statements in this presentation contain “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this report and may include statements regarding the intent, belief or current expectations of the Company, with respect to, among other things, our (i) future product and facility expansion, (ii) acquisition strategy, (iii) investments and new product development, (iv) growth opportunities related to awarded business and (v) operational expectations. Forward-looking statements may be identified by the words “will,” “may,” “should,” “designed to,” “believes,” “plans,” “projects,” “intends,” “expects,” “estimates,” “anticipates,” “continue,” and similar words and expressions. The forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by the statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among other factors:

• the reduced purchases, loss or bankruptcy of a major customer or supplier;• the costs and timing of business realignment, facility closures or similar actions;• a significant change in automotive, commercial, off-highway, motorcycle or agricultural vehicle production;• competitive market conditions and resulting effects on sales and pricing;• the impact on changes in foreign currency exchange rates on sales, costs and results, particularly the Argentinian peso, Brazilian real, Chinese

renminbi, euro, Mexican peso and Swedish krona;• our ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions;• customer acceptance of new products;• our ability to successfully launch/produce products for awarded business;• adverse changes in laws, government regulations or market conditions, including tariffs, affecting our products or our customers’ products;• our ability to protect our intellectual property and successfully defend against assertions made against us;• liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a

party, or the impact of product recall or field actions on our customers;• labor disruptions at our facilities or at any of our significant customers or suppliers;• the ability of our suppliers to supply us with parts and components at competitive prices on a timely basis, including the impact of potential

tariffs and trade considerations on their operations and output;• the amount of our indebtedness and the restrictive covenants contained in the agreements governing our indebtedness, including our revolving

credit facility;• capital availability or costs, including changes in interest rates or market perceptions;• the failure to achieve the successful integration of any acquired company or business; • risks related to a failure of our information technology systems and networks, and risks associated with current and emerging technology

threats and damage from computer viruses, unauthorized access, cyber attack and other similar disruptions; and• the items described in Part I, Item IA (“Risk Factors”) of our 10-K filed with the SEC.

In addition, the forward-looking statements contained herein represent our estimates only as of the date of this release and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements or otherwise.

Rounding Disclosure: There may be slight immaterial differences between figures represented in our public filings compared to what is shown in this presentation. The differences are the a result of rounding due to the representation of values in millions rather than thousands in public filings.

3

No end-market*

comprises more than

of our year-to-date sales

About Stoneridge

11Manufacturing

locations on 4

continents 1/3

6%+

1965Founded

NYSE: SRI

33%5-year backlog***

$3.3 billion5.3x 2017 OEM sales

2018 Revenue growth**2018 Q2 Adj. EPS

growth

Stoneridge is an established, global company with a well diversified product

portfolio, strong historical financial performance and a robust 5-year backlog

*End-markets include passenger car, light truck / SUV, commercial vehicle, aftermarket and other, including agriculture, off-highway vehicles, material handling, etc.

** 2018 revenue growth based on lower-end of guided range

*** As of December 31, 2017

4

Global Reach

Global Headquarters

Manufacturing Site

Design Center

Sales & Technical Support

11 Manufacturing Sites

10 Design Centers

Headquarters relocated to Novi, MI

in 4Q16 to facilitate stronger

customer relationships and attract

and retain talent

5

Driver Information Systems

Vision Systems

Telematics Systems

Tachograph Systems

Electronic Control Units (ECU)

Electronic Logging Devices

Power & Switch Modules

High Performance Actuators

Sensors: Particle Matter (Soot),

Temperature, Speed, Position,

Pressure, Fluid Level, Torque

Evaporative Emission

Reduction and Solenoid Control

Valves

Track & Trace

Telematics

Safety & Security

Electronic Modules

Alarm & Remote Access

Audio

Organization Overview

Stoneridge, Inc.(NYSE: SRI)

Stoneridge

ELECTRONICSStoneridge

CONTROL DEVICES

PST ELETRÔNICA

(JV, BRAZIL)

SRESCD PST

50% of 2018 Q2 Sales 41% of 2018 Q2 Sales 9% of 2018 Q2 Sales

2018 Sales* : $870.0m

Advanced vehicle camera

systems and displays

Radar

Video Recording

Stoneridge

ELECTRONICS

*Based on lower end of full year guidance provided

on Q2 2018 earnings call on August 2, 2018

6

Building a Culture of Performance and Growth

7

Our Current Leadership New Hire or New

Position since 2015

8

Leadership Team Capable of Driving Global Growth

Stoneridge has systematically assembled an executive team comprised of industry leaders capable of

driving global, sustainable performance and growth

*Based on lower end of full year guidance provided on Q2 2018 earnings call on August 2, 2018

9

Business Share by Segment and Region

We continue to diversify our product portfolio and geographic exposure through organic

and inorganic growth opportunities

*Regional sales based on manufactured location.

Business Segments (2017) Regions (2017)*

10

China – A Platform for Growth

Strong financial performance

Backlog suggests CAGR of over 20% from 2016 –

2020*

World-class manufacturing facility in Suzhou

Products, operations and engineering focused

on “Asia-for-Asia” strategy

Regulations creating emissions requirements

Exhaust gas temperature (EGT) sensors

(Control Devices segment)

Local customers and content growth

Commercial vehicle driver information systems

(Electronics segment)

Continuing to focus on opportunities to serve the local market and expand

manufacturing and development in China as a catalyst for growth

*Based on September 2017 IHS; Q3 2017 LMC

11

2018 Full Year Volume Outlook

Stoneridge is well positioned to take advantage of strong performing regions and end

markets

Passenger Car*Sales by End Market (2017)

Commercial Vehicle*

(Units in Millions) Stoneridge 2018

2017E Sales** 2017E 2018E B/(W) 2017

Europe 5.0% 22.3 22.8 2.0%

Asia 20.9% 50.0 50.4 0.9%

North America 73.8% 17.1 17.4 1.6%

South America 0.1% 3.3 3.7 13.1%

Other 0.2% 2.6 2.8 9.0%

Total 100.0% 95.3 97.1 1.9%

Vehicle Production

(Units in Millions) Stoneridge 2018

2017E Sales** 2017E 2018E B/(W) 2017

Europe 64.5% 0.6 0.6 3.2%

Asia 4.9% 2.0 1.9 -7.8%

North America 30.3% 0.5 0.6 13.9%

South America 0.2% 0.1 0.1 15.5%

Other 0.1% 0.0 0.0 -5.4%

Total 100.0% 3.2 3.2 -1.8%

Vehicle Production

*Excluding Orlaco and PST

** Regional sales based on manufactured location

SOURCE: Dec 2017 IHS; Q4 2017 LMC, Company Data

12

Business Share by Customer (2017)

We are well diversified in our customer exposure. Approximately 75% of sales are

attributable to OEM customers which comprise forecasted backlog.

*Does not include revenue from Minda-Stoneridge JV,

13

Winning with Our Customers

Deepening relationships with customers

Positioning the Company for long-term success

Over the past year we have been recognized for our excellence as both a passenger car and commercial vehicle supplier by some of the largest, global OEMs

Received the 2016 Safe Pillar Award from Ford Motor Company for supplying a variety of advanced technology sensors and actuators

Received the 2017 Partnership award from Daimler AG for the international roll-out of driver information systems for Mercedes-Benz Freightliner and FUSO Trucks

“You always go above-and-beyond to create the best body electronic, instrument and telematics components for our trucks and buses. This is why you take the award

trophy home in the Partnership category.”

Dr. Marcus Shoenenberg Vice President of Procurement, Daimler Trucks and Buses, Daimler AG

14

Recent Financial Performance

15

2nd Quarter 2018 Summary

2nd Quarter 2018 Financial Results

2018 Performance and Guidance

Sales of $220.6 million, an increase of 5% over Q2 2017

Control Devices sales of $112.4 million, a decrease of 3% over Q2 2017

Electronics sales of $100.1 million, an increase of 22% over Q2 2017

PST sales of $20.3 million, a decrease of 13% over Q2 2017

Adjusted operating income of $20.1 million, an increase of 8% over Q2 2017 (9.1% operating margin)

Control Devices adjusted operating income of $17.7 million, a decrease of 11% over Q2 2017 (15.8% adjusted operating margin)

Electronics adjusted operating income of $9.0 million, an increase of 61% over Q2 2017 (9.0% adjusted operating margin)

PST adjusted operating income of $1.3 million, a decrease of 3% over Q2 2017 (6.4% adjusted operating margin)

Segment level financial information includes intercompany sales.

Due to centralizing certain procurement and operations functions we have allocated certain corporate costs to each segment that were not previously allocated.

For purposes of our quarter over quarter comparisons we have adjusted these costs.

2018 Q1

(Actual)

2018 Q2

(Actual)

2018 Full Year

Guidance

Sales $225.9 Million $220.6 Million $870 - $890 Million

Gross Margin 30.1% 30.6% 31.0% - 32.0%

Adjusted

Operating Margin8.0% 9.1% 9.0% - 10.0%

Adjusted EPS $0.50 $0.55 $2.05 - $2.20

Adjusted EBITDA

Margin11.9% 12.8% 12.5% - 13.5%

16

Financial Summary

We continue to deliver profitable growth and margin improvement

17

Control Devices

Deliver growth in sensing and actuation segments

Drive operational efficiency

Manage ramp-down of shift-by-wire programs (~Q4)

Electronics

Execute product

launches

Capture MirrorEye

opportunities

Refine engineering

footprint and drive

global capability

PST

Drive track & trace

growth

Leverage cost

structure

Capitalize on

macroeconomic

tailwinds

Keys to 2018 Success

We continue to execute and focus on our keys to 2018 success

*Based on lower end of full year guidance provided on Q2 2018 earnings call on August 2, 2018

18

Control Devices

Financial Performance

Gross margin improvement offset by SG&A and D&D initiatives

to drive future growth

Control Devices Overview

Production volume reductions by our customers on key passenger car and light truck platforms contributing to flat revenue quarter-to-quarter

Gross margin improvement of 130 basis points quarter-to-quarter as a result of continuous operational improvement

Increased SG&A and design and development (“D&D”) initiatives offset some of gross margin expansion. Necessary for continued growth.

Segment level financial information includes intercompany sales

*Due to centralizing certain procurement and operations functions we have allocated certain corporate costs to each segment that were not previously allocated.


19

Electronics


Continued strong revenue performance and margin expansion




Electronics Overview

Revenue growth quarter-over-quarter remains strong

Segment margin expansion muted by currency headwinds

Orlaco continues to deliver strong top and bottom-line performance

20

PST


Responding effectively to dynamic macroeconomic challenges




PST Overview

Challenging macroeconomic conditions in Brazil and Argentina. Currency headwinds

limiting revenue growth and margin expansion.

Cost structure optimized to remain stable with improved profitability despite flat revenue

Potential for continued volatility in macroeconomic conditions for the remainder of 2018

21

FY 2018 Outlook

Customer volume reductions on certain key platforms in China and North America

Commercial vehicle volumes remain robust

Movements in currency are creating headwinds, specifically in Europe and Brazil

Recently announced tariffs have created $1 - $2 million gross headwind for the remainder of

the year

Margin progression expected to continue for the remainder of the year

Q1 Guidance

Outlook

Volume

Reductions

(North America

and China)

Q2 Guidance

Outlook

Midpoint of

Current Guidance

Currency

(~$0.04 – $0.05

EPS remainder

of 2018)

Commercial

Vehicle

Volumes

Lower End of

Guidance Range

Tariffs

(~$0.03 – $0.05

EPS remainder

of 2018)

Maintaining full-year guidance range

Continued

Margin

Expansion

22

2017 Actual Results 2018 Guidance

Sales $824.4 Million $870 - $890 Million

Adjusted

Gross Margin30.3% 31.0% - 32.0%

Adjusted

Operating Margin8.1% 9.0% - 10.0%

Adjusted EPS $1.57 $2.05 - $2.20

Adjusted

EBITDA Margin11.6% 12.5% - 13.5%

FY 2018 Full-Year Guidance

Lower-end of guidance range implies

approximately 51% / 49% 1st half / 2nd

half revenue split

We are forecasting 4th quarter revenue

and EPS performance to exceed 3rd

quarter performance

We expect Q3 to be lowest EPS and

revenue quarter for 2018 due to customer

production schedules

Continued margin progression and

forecasted revenue inline with Q1 and Q2

should result in stronger Q4

Consistent with historical results, timing of

engineering recoveries is projected to

contribute to strong Q4 performance

Forecasting 4th quarter performance stronger than 3rd quarter

23

Focus on Growth

24

Focus on Growth Markets

Source: Dec 2017 IHS; LMCA, ACT Research, Emerging Strategy and Company Data

INTELLIGENCE

10% CAGR

SAFETY &

SECURITY

12% CAGR

EMISSIONS

5% CAGR

FUEL

EFFICIENCY

5% CAGR

These megatrends

are expected to grow

8% - 9% vs. global

vehicle production

growth of 2% - 3%

from 2017 to 2023

We focus on industry megatrends that will drive growth 2-3x our underlying markets

Migrating toward smart products will continue to drive growth through increased vehicle content

*Smart products include Stoneridge products with printed circuit boards and /

or electronic content, including software

25

Intelligence

Stoneridge is helping

customers move from

electromechanical to

electronic solutions that can

leverage digital advantages

Stoneridge Solutions

Instrument Clusters Fully reconfigurable, high

resolution displays

Telematics Enhances vehicle diagnostics

and efficiency

Electronic Control Units

(ECUs)

Standard to highly

customizable

Electronic Shift-by-wire

(SBW)

Replaces the mechanical

shifter in automatic

transmissions

Tachograph and Electronic

Logging Device (ELD)

Advanced fleet management

and driver information systems

Power Modules Intelligent distribution and

power control

The market is demanding

innovative display and

vehicle communications

solutions

Stoneridge is applying our

hardware & software solutions

into adaptive systems driving

vehicle / user interaction and

data management

26

Emissions

Compliance

requirements are

driving increasingly

sophisticated

emissions products

Recent emissions scandals

are creating requirements for

additional emissions testing

products and more complex

systems

Stoneridge has developed

innovative technologies that

enable compliance with

increasingly stringent

emissions regulations


Soot Sensor Particulate sensor monitors

harmful emissions

Exhaust Gas

Temperature Sensors

Controls and monitors critical after-

treatment systems and engine

components protecting engine

from critically high exhaust

temperatures

Canister Vent

Solenoid

Reduces fuel vapor emissions

27

Fuel Efficiency


MirrorEyeTM Reduces fuel consumption through

enhanced aerodynamics

Front Axle

Disconnect

Improves drivetrain efficiency

Turbo Actuator Improves engine performance

Telematics Enhances vehicle efficiency

Market demand for fuel economy

and performance has led OEMs to

focus on delivering fuel savings

without compromising

performance

Increased regulations

and market demands

have led to changes in

vehicle systems

Stoneridge is helping OEMs

increase fuel economy through

more effective engine

management and performance

enhancing technology

28

Safety and Security


Track and

Trace

Enhances driver safety and security of

both vehicle and cargo

Tachograph and

ELD

Improves driver safety and enables

compliance

MirrorEyeTM Eliminates driver blind spots and

increases driver’s awareness of

surroundings

Parking Assist Improves vehicle safety / reduces accidents

Seat Track

Position

Improves active restraint systems

Speed Sensors Enables ABS & vehicle stability

Driver safety becoming

more autonomous

through electronic safety

and security solutions

Stoneridge focuses on providing

high reliability products for safety

critical applications through robust

design and testing

Stoneridge is using our

established network to track

vehicle and goods for both driver

and cargo safety and security as

well as fleet management

29

Ford F-Series

Trailer Tow Connector, Canister Vent Valve, Rotary 4x4

Control Switch, Seat Track Position Sensor

Exhaust Gas, Cylinder Head, Engine Coolant & Exhaust

Gas Recirculation Temperature Sensors

Buick LaCrosse

Shift by Wire / Transmission Range Control Module,

Canister Vent Solenoid

Ram Trucks

Front Axle Disconnect Actuator, Trailer Tow Connector,

Ram Box and Tailgate Actuators, Under Hood Switch,

Coolant & Oil Temperature Sensors, Smart Bar Actuator

Cadillac XT5


Canister Vent Solenoid, Trailer Tow Connector

Jeep Cherokee

Under Hood Security Switch, Coolant & Oil Temperature

Sensors, Tailgate Release Switch, Exhaust Gas,

Temperature Sensor, Trailer Tow Connector

Chevrolet Bolt


Park Lock

Chevy / GMC Silverado / Sierra

Front Axle Disconnect Actuator, Trailer Tow Connector,

Canister Vent Solenoid

Lincoln Continental


Capacitive Keypad, Seat Track Position Sensor, Vapor,

Bypass Valve, Canister Vent Valve

Ford Fusion


Capacitive Keypad, Seat Track Position Sensor,

Release Switches, Canister Vent Solenoid, Vapor

Blocking Valve, Cylinder Head & Engine coolant

Temperature Sensors

Stoneridge Passenger Car / Light Truck Content

30

PACCAR

Tachograph, High Temperature Sensor, Power & Switch

Module

Daimler

Instrument Cluster, Tachograph, High Temperature

Sensor, Power & Switch Module, Telematics

MAN

Instrument Cluster, Telematics, Tachograph, Power &

Switch Module, ECU

Navistar

Instrument Cluster, High Temperature Sensor, Switches,

Power & Switch Module

Scania

Instrument Cluster, Tachograph, Power & Switch Modules,

Telematics

Volvo

Instrument Cluster, Power & Switch Modules, ECU, Soot

Sensor, Switches

Crown Equipment Corporation

Vision Systems

Caterpillar

Vision Systems

John Deere

Vision Systems

Stoneridge Commercial Vehicle Content

31

Recent Product Updates

32

Stoneridge - A Vehicle Technology CompanyActuation Systems

Our actuation technologies will drive growth on traditional, hybrid and fully

electric drivetrains today and in the future

Our actuation technologies will drive growth in traditional drivetrains and the electrified drivetrains of the future

Park-by-wire developed for hybrid and fully electric drivetrains as an extension of our shift-by-wire actuator that is in production on traditional drivetrains today

Awarded contracts for our actuation technology on electrified axle (E-Axle) systems. Extension of our axle-based actuation technologies currently in production.

Awards

Announced in Q2 – $31 million annual* park-by-wire programs awarded in North America, Europe and Asia

Announced in Q3 – E-Axle development award on high-performance platform in North America

*Peak annual revenue

2015Launch shift-by-wire

with multiple global

OEMs

2016Launch shift-by-

wire with park-

by-wire

functionality on

Chevrolet Bolt

2017Awarded $31

million* of

park-by-wire

global

programs

2017Awarded E-Axle

development

platform

2021E-Axle platform

launch in North

America

2019Park-by-wire

platform

launches in

North America

and Europe

2020Park-by-wire

platform

launches in Asia

Exploration of complimentary actuation

technologies (expand customers and capabilites)

Geographic expansion of actuation capabilities

33

Stoneridge - A Vehicle Technology CompanyShift-by-Wire Update

Shift-by-Wire (Current)

One of three global suppliers to

receive a 2016 Safe Pillar Award

from Ford for achieving

excellence in quality, cost,

performance and delivery related

to actuation and sensors,

including our Shift-by-Wire

program

Continue to pursue market

opportunities with the existing

Shift-by-Wire product, as well as

product extensions

Image Sources: www.ford.com, www.gm.com, and www.Lincoln.com

Shift-by-Wire and related technologies remain a platform for growth

Park-by-Wire (2019 and beyond)

Extension of Shift-by-Wire technology

Replaces park function normally

controlled by mechanical shifter

Broad applications across all

conventional engines as well as

electric and hybrid-electric powertrains

North America and Europe

programs (2019 start-of-production)

$24 million (peak annual revenue)

awarded

Asia programs (2020 start-of-

production)

$7 million (peak annual revenue)

awarded

34

Stoneridge - A Vehicle Technology CompanyElectrified Drivetrain

Front-Axle Disconnect (Current)

Decouples the front-axle in a

4x4 vehicle allowing 4x2

operation “on-the-fly”

Smart Bar (Current)

Axle-mounted smart actuator

allowing increased performance

in off-road driving situations

Image Sources: www.motortrend.com, www.off-road.com

Axle and suspension actuation technologies remain

a platform for growth as drivetrains continue to

evolve

Electric Axle (E-Axle) (2020+)

Stoneridge has developed

actuators that will be included

in E-Axle systems that will

enable electric drive propulsion

in either hybrid or fully electric

vehicles

Awarded E-Axle development

on high-performance

platform in North America

with a planned start-of-

production (SOP) in 2021

Developing solutions for

multiple other OEM / Tier 1

applications

35

Stoneridge - A Vehicle Technology CompanyDriver Information Systems

Driver information systems are driving increased content per vehicle and future

growth opportunities through additional functionality and sub-system integration

Commercial vehicle instrument

clusters are following passenger car

trends and becoming fully

configurable, display-based driver

information systems

Stoneridge is one of the global

leaders in commercial vehicle driver

information systems

Delivering commercial vehicle driver

information systems solutions for 25+

years

Awards

Recently announced $38

million annual* global

award for hybrid and fully

configurable systems

2005 First color TFT diplay

commercial vehicle

instruement cluster

award

2008Launched first “hybrid”

color display driver

information system

2017Awarded fully-

configurable driver

information system

global program

2020Launch fully-

configurable

driver information

system

Additional functionality

development and sub-

system integration (data,

infotainment, etc.)

*Peak annual revenue

36

Connecting Drivers to Information

Pending award for extension and

expansion of our largest global

Driver Information System program

$38 million peak annual revenue

$8 million expansion

$3 million localization in Brazil

Start-of-production – 2021

Deepening our existing customer

relationships

First significant award utilizing our

local Brazilian footprint – serving

our global customers more

efficiently

Driver Information Systems are a key global platform driving growth

Product image is an example of Stoneridge technology and may or may not be representative of the awarded production product

37

Enabling Intelligent Vehicles

Leading provider of commercial vehicle connectivity and intelligence solutions

OEM and aftermarket connectivity and

intelligence solutions for global commercial

vehicle applications

Hardware solutions that provide in-vehicle connectivity

Software solutions that enable data compilation and

analysis

Our solutions enable improved fleet

management, vehicle efficiency and compliance

Pending award for one of our largest

connectivity programs with global commercial

vehicle OEM


Start-of-production – Early 2019

38

MirrorEyeTM Update

Awarded first OEM MirrorEyeTM program

Expect retrofit opportunities beginning late 2018

Pending award for our first OEM MirrorEyeTM

program with a leading, global OEM


Start-of-Production – 2020

FMCSA exemption in-process to allow for

removal of traditional mirrors and

replacement by MirrorEyeTM systems

American Truck Association (ATA) encouraging

“expeditiously approving” any requests to allow

mirrorless technology

Expect MirrorEyeTM retrofit revenue late 2018

Multiple development programs with

additional global OEMs – expecting additional

OEM awards

39

MirrorEyeTM Update

MirrorEyeTM commercialization progressing as planned

FMCSA exemption could accelerate market penetration and adoption rate

MirrorEyeTM fleet trials ongoing

Over one million miles driven with major U.S. fleets including Schneider, Maverick and J.B. Hunt

Schneider and J.B. Hunt publicly commented in support of the requested FMCSA exemption as have the Trucking Alliance and American Trucking Associations (ATA)

Expecting decision on FMCSA exemption shortly

MirrorEyeTM featured on Starship Initiative Truck

Partnered with Shell Lubricants and AirFlow Truck Company

Cross-country drive resulted in 28.4% fuel economy improvement

Expect to launch retrofit program late 2018

Not dependent on FMCSA exemption but exemption could provide additional market penetration and adoption

40

Summary

Stoneridge is a well-established, global, public automotive

company

Our business is well diversified among our segments, regions

and served markets

We have a robust backlog representing 5.3x 2017 OEM sales

over the next five years

We are positioned to outpace vehicle market growth by 2 – 3x

over the next 5 years as we continue to focus on segments

that outperform the underlying market

41

Appendix

42

2018 Q2 Adjustments

The expense related to the step-up in the fair value of the earn-out related to the acquisition of

the remaining 26% minority interest in PST was $0.5 million resulting in an EPS adjustment of

$0.02

Expenses related to certain one-time business realignment costs have been adjusted to

reflect normalized earnings. The after-tax impact of this adjustment was $0.3 million resulting

in an EPS add-back of $0.01.

Adjustment

Expected Q2 2018 After-

Tax Impact (USD millions)

Expected Q2 2018 After-

Tax EPS Impact

Earn-out (PST) ($0.5) ($0.02)

Business realignment costs ($0.3) ($0.01)

Total ($0.9) ($0.03)

43

Income Statement

(Unaudited)

(in thousands, except per share data) 2018 2017 2018 2017

Net sales $ 220,602 $ 209,111 $ 446,532 $ 413,422

Costs and expenses:

Cost of goods sold 153,184 145,697 311,145 288,857

Selling, general and administrative 35,256 35,704 72,517 69,970

Design and development 12,981 12,034 26,842 23,755

Operating income 19,181 15,676 36,028 30,840

Interest expense, net 1,170 1,518 2,524 2,928

Equity in earnings of investee (665) (555) (1,186) (735)

Other expense (income), net (264) 605 (863) 795

18,940 14,108 35,553 27,852

3,820 5,189 7,053 9,760

Net income 15,120 8,919 28,500 18,092

Net loss attributable to noncontrolling interest - (100) - (130)

Net income attributable to Stoneridge, Inc. $ 15,120 $ 9,019 $ 28,500 $ 18,222

Earnings per share attributable to Stoneridge, Inc.:

Basic $ 0.53 $ 0.32 $ 1.01 $ 0.65

Diluted $ 0.52 $ 0.32 $ 0.99 $ 0.64

Weighted-average shares outstanding:

Basic 28,449 28,133 28,349 28,026

Diluted 28,978 28,517 28,907 28,531

Income before income taxes

Provision for income taxes

Three months ended

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

June 30,

Six months ended

June 30,

44

Segment Financial Information

2018 2017 2018 2017

Net Sales:

Control Devices $ 109,956 $ 114,001 $ 225,313 $ 232,874

Inter-segment sales 2,481 1,368 4,662 2,151

Control Devices net sales 112,437 115,369 229,975 235,025

Electronics 90,313 71,610 180,341 135,415

Inter-segment sales 9,771 10,223 20,243 21,579

Electronics net sales 100,084 81,833 200,584 156,994

PST 20,333 23,500 40,878 45,133

Inter-segment sales - - 2 -

PST net sales 20,333 23,500 40,880 45,133

Eliminations (12,252) (11,591) (24,907) (23,730)

Total net sales $ 220,602 $ 209,111 $ 446,532 $ 413,422

Operating Income (Loss):

Control Devices $ 17,160 $ 19,924 $ 35,039 $ 39,008

Electronics 8,276 2,814 16,156 8,371

PST 735 1,123 885 1,702

Unallocated Corporate (6,990) (8,185) (16,052) (18,241)

Total operating income $ 19,181 $ 15,676 $ 36,028 $ 30,840

Depreciation and Amortization:

Control Devices $ 2,897 $ 2,687 $ 5,692 $ 5,386

Electronics 2,252 2,241 4,543 3,811

PST 1,740 2,096 4,245 4,184

Unallocated Corporate 199 96 396 195

Total depreciation and amortization $ 7,088 $ 7,120 $ 14,876 $ 13,576

Interest Expense, net:

Control Devices $ 18 $ 11 $ 37 $ 65

Electronics 23 6 57 44

PST 194 532 532 1,104

Unallocated Corporate 935 969 1,898 1,715

Total interest expense, net $ 1,170 $ 1,518 $ 2,524 $ 2,928

Capital Expenditures:

Control Devices $ 3,312 $ 4,347 $ 9,058 $ 7,795

Electronics 1,394 1,684 4,167 4,034

PST 696 1,041 1,955 1,925

Unallocated Corporate 938 830 1,665 1,413

Total capital expenditures $ 6,340 $ 7,902 $ 16,845 $ 15,167

June 30, June 30,

Three months ended Six months ended

45

Balance Sheet

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, December 31,

(in thousands) 2018 2017

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents $ 58,965 $ 66,003

147,729 142,438

Inventories, net 80,232 73,471

Prepaid expenses and other current assets 29,056 21,457

Total current assets 315,982 303,369

Long-term assets:

Property, plant and equipment, net 111,245 110,402

Intangible assets, net 66,006 75,243

Goodwill 37,389 38,419

Investments and other long-term assets, net 30,024 31,604

Total long-term assets 244,664 255,668

Total assets $ 560,646 $ 559,037

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Current portion of debt $ 3,184 $ 4,192

Accounts payable 84,461 79,386

Accrued expenses and other current liabilities 60,358 52,546

Total current liabilities 148,003 136,124

Long-term liabilities:

Revolving credit facility 110,000 121,000

Long-term debt, net 1,790 3,852

Deferred income taxes 17,767 18,874

Other long-term liabilities 25,040 35,115

Total long-term liabilities 154,597 178,841

Shareholders' equity:

Preferred Shares, without par value, 5,000 shares authorized, none issued - -

Common Shares, without par value, 60,000 shares authorized,

- -

Additional paid-in capital 228,856 228,486

and December 31 2017, respectively, at cost (8,911) (7,118)

Retained earnings 120,552 92,264

Accumulated other comprehensive loss (82,451) (69,560)

Total shareholders' equity 258,046 244,072

Total liabilities and shareholders' equity $ 560,646 $ 559,037

June 30, 2018 and December 31, 2017, respectively, with no stated value

28,966 and 28,966 shares issued and 28,483 and 28,180 shares outstanding at

Common Shares held in treasury, 483 and 786 shares at June 30, 2018

Accounts receivable, less reserves of $1,106 and $1,109, respectively

46

Statement of Cash Flows

(Unaudited)

Six months ended June 30, (in thousands) 2018 2017

OPERATING ACTIVITIES:

Net income $ 28,500 $ 18,092

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation 11,535 10,538

Amortization, including accretion of deferred financing costs 3,503 3,200

Deferred income taxes 1,765 5,450

Earnings of equity method investee (1,186) (735)

Gain on sale of fixed assets (18) (4)

Share-based compensation expense 2,838 4,065

Tax benefit related to share-based compensation expense (879) (758)

Change in fair value of earn-out contingent consideration 1,417 2,347

Accounts receivable, net (11,594) (13,494)

Inventories, net (10,610) (6,739)

Prepaid expenses and other assets (8,417) (4,174)

Accounts payable 8,678 11,675

Accrued expenses and other liabilities 3,379 (2,442)

Net cash provided by operating activities 28,911 27,021

INVESTING ACTIVITIES:

Capital expenditures (16,845) (15,167)

Proceeds from sale of fixed assets 41 20

Insurance proceeds for fixed assets 1,403 -

Business acquisition, net of cash acquired - (77,538)

Net cash used for investing activities (15,401) (92,685)

Changes in operating assets and liabilities, net of effect of business combination:

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

47

Statement of Cash Flows (Cont.)

(Unaudited)

Six months ended June 30, (in thousands) 2018 2017

FINANCING ACTIVITIES:

Acquisition of noncontrolling interest, including transaction costs - (1,796)

Revolving credit facility borrowings 26,500 84,000

Revolving credit facility payments (37,500) (19,000)

Proceeds from issuance of debt 273 1,901

Repayments of debt (2,459) (6,174)

Other financing costs - (61)

Repurchase of Common Shares to satisfy employee tax withholding (4,242) (2,207)

Net cash (used for) provided by financing activities (17,428) 56,663

Effect of exchange rate changes on cash and cash equivalents (3,120) 2,832

Net change in cash and cash equivalents (7,038) (6,169)

Cash and cash equivalents at beginning of period 66,003 50,389

Cash and cash equivalents at end of period $ 58,965 $ 44,220

Supplemental disclosure of cash flow information:

Cash paid for interest $ 2,679 $ 2,755

Cash paid for income taxes, net $ 7,967 $ 3,424

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

48

Reconciliations to US GAAP

49


This document contains information about Stoneridge's financial results which is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in the appendix of this document. The provision of these non-GAAP financial measures for 2017 and 2018 is not intended to indicate that Stoneridge is explicitly or implicitly providing projections on those non-GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this document and the adjustments that management can reasonably predict.

50


(USD in millions) Q2 2017 Q1 2018 Q2 2018

Income Before Tax 14.1$ 16.6$ 18.9$

Interest expense, net 1.5 1.4 1.2

Depreciation and amortization 7.1 7.8 7.1

EBITDA 22.7$ 25.8$ 27.2$

Add: Pre-Tax Step-Up in Acquired Inventory from Orlaco 0.7

Add: Pre-Tax Step-Up in Fair Value of Earn-Out (Orlaco) 2.1 0.4

Add: Pre-Tax Step-Up in Fair Value of Earn-Out (PST) 0.2 0.5 0.5

Add: Pre-Tax Business Realignment Costs 0.2 0.4

Adjusted EBITDA 25.7$ 26.9$ 28.1$

Reconciliation of Adjusted EBITDA


Operating Income 15.7$ 16.8$ 19.2$




Add: Pre-Tax Business Realignment Costs 0.2 0.4

Adjusted Operating Income 18.7$ 18.0$ 20.1$

Reconciliation of Adjusted Operating Income


Gross Profit 63.4$ 68.0$ 67.4$


Adjusted Gross Profit 64.1$ 68.0$ 67.4$

Reconciliation of Adjusted Gross Profit

51



Electronics Operating Income 2.8$ 7.9$ 8.3$



Add: Pre-Tax Allocation of Centralized Procurement and Operations Functions 0.5 0.4

Add: Pre-Tax Business Realignment Costs 0.3

Electronics Adjusted Operating Income 5.6$ 8.8$ 9.0$

Reconciliation of Electronics Adjusted Operating Income


PST Operating Income 1.1$ 0.2$ 0.7$




PST Adjusted Operating Income 1.3$ 1.0$ 1.3$

Reconciliation of PST Adjusted Operating Income


Control Devices Operating Income 19.9$ 17.9$ 17.2$



Control Devices Adjusted Operating Income 19.9$ 18.4$ 17.7$

Reconciliation of Control Devices Adjusted Operating Income

52


(USD in millions) Q1 2018 Q1 2018 EPS

Net Income Attributable to Stoneridge 13.4$ 0.46$

Add: After-Tax Step-Up in Fair Value of Earn-Out (Orlaco) 0.4 0.01

Add: After-Tax Step-Up in Fair Value of Earn-Out (PST) 0.5 0.02

Add: After-Tax Business Realignment Costs 0.2 0.01

Adjusted Net Income 14.4$ 0.50$

Reconciliation of Q1 2018 Adjusted EPS




Add: After-Tax Business Realignment Costs 0.3 0.01





Add: After-Tax Step-Up in Fair Value of Earn-Out (Orlaco) 2.1 0.07


Add: After-Tax Step-Up in Acquired Inventory from Orlaco 0.5 0.02



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