New Business Models for Suppliers:Turning Challenges into AdvantagesNew Business Models for Suppliers:Turning Challenges into Advantages

Jim McElya, President and CEOCooper Standard Automotive

January 18, 2006

Jim McElya, President and CEOCooper Standard Automotive

January 18, 2006

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Cooper Standard AutomotiveWho We Are

Cooper Standard AutomotiveWho 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 transportfluids 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

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Cooper Standard HistoryCooper Standard History

The Standard Products CompanyThe Standard Products Company

Sales: Sales: $1,100MM$1,100MM

Products:Products: NVH, SealingNVH, Sealing

The Standard Products CompanyThe Standard Products Company

Sales: Sales: $1,100MM$1,100MM

Products:Products: NVH, SealingNVH, Sealing

Siebe AutomotiveSiebe Automotive

Sales: Sales: $400MM$400MM

Products:Products: Fluid HandlingFluid Handling

Siebe AutomotiveSiebe Automotive

Sales: Sales: $400MM$400MM

Products:Products: Fluid HandlingFluid Handling

Acquired October 1999

Acquired January 2000

Divestitures/OtherDivestitures/Other

• Holm IndustriesHolm Industries

• Oliver RubberOliver Rubber

• WinnsboroWinnsboro

Divestitures/OtherDivestitures/Other

• Holm IndustriesHolm Industries

• Oliver RubberOliver Rubber

• WinnsboroWinnsboro

Cooper Engineered Products of Cooper TireCooper Engineered Products of Cooper Tire

Sales: Sales: $425MM$425MM

Products:Products: NVH, Sealing, HoseNVH, Sealing, Hose

Cooper Engineered Products of Cooper TireCooper Engineered Products of Cooper Tire

Sales: Sales: $425MM$425MM

Products:Products: NVH, Sealing, HoseNVH, Sealing, Hose

CSA Division of CTRCSA Division of CTRCSA Division of CTRCSA Division of CTRExited FacilitiesExited Facilities

• EstoverEstover

• LangageLangage

• ClevelandCleveland

Exited FacilitiesExited Facilities

• EstoverEstover

• LangageLangage

• ClevelandCleveland

Sold December 2004

Successful Integrations Brand-name Global OEM Supplier

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The Future Looked Brightfor Cooper Standard Automotive

The Future Looked Brightfor Cooper Standard Automotive

Good Year forSales & Profits

52Plants

18,000Employees

The Year 2000Environment for Success was Right

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The Future Looked Brightfor the Industry

The Future Looked Brightfor the Industry

The Year 2000Environment 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…

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Industry ChallengesIndustry 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…

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What Have We Done Over Time?What Have We Done Over Time?

18,500Employees

Moved More Productsto LCM Countries

MexicoCzech RepublicPoland

Expanded into China

2000 2005

52Plants

40Plants

13,250Employees

1/3 of CSA Employees in LCM Countries

1/3 of CSA Employees in LCM Countries

$1.5 BillionUSD in Sales

$1.8B LTM 9/30/05USD Sales

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ResultsResults

$1,385.9 M USD Sales thru Q3 of ’05

$202M USDLTM 9/30/05

Adjusted EBITDA

Solid Results;Others struggled

The Year 2005

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ResultsResults

The Year 2005

Acquired RubberHose Operation from

Gates

Equity Investment in Guyoung Tech

Co.

Honored with Various Industry & Customer Awards

Announced Acquisition

Fluid Handling Systems Division

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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 andAttained Status as a Global Player in Industry

Examine old business model

Summary of CSA AdvantagesSummary of CSA Advantages

Replace

Elim

inate

Negot

iate

Relocate

Gro

w