Cooper-Standard Holdings Inc.

Good morning, ladies and gentlemen, and welcome to the Cooper Standard fourth quarter and full year 2022 earnings conference call. During the presentation, all participants will be in listen-only mode. Following company-prepared comments, we will conduct a question-and-answer session. At that time, if you have a question, you will need to press star 1-1. As a reminder, this conference call is being recorded, and the webcast will be available for replay later today. I would now like to turn the call over to Roger Hendrickson. Director of Investor Relations.

Thanks, Josh, and good morning, everyone. We appreciate your continued interest in Cooper Standard, and we thank you for taking the time to participate in our call this morning. The members of our leadership team who will be speaking with you on this call this morning are Jeff Edwards, Chairman and Chief Executive Officer, and John Banas, Executive Vice President and Chief Financial Officer. Before we begin, I need to remind you that this presentation contains forward-looking statements. While they are made based on current factual information and certain assumptions and plans that management currently believes to be reasonable, these statements do involve risks and uncertainties. For more information on forward-looking statements, we ask that you refer to slide three of this presentation and the company's statements included in periodic filings with the Securities and Exchange Commission. This presentation also contains non-GAAP financial measures. Reconciliations of the non-GAAP financial measures to their most directly comparable GAAP measures are included in the appendix to the presentation. With those formalities out of the way, I'll now turn the call over to Jeff Edwards.

Thanks, Roger, and good morning, everyone. We appreciate the opportunity to review our fourth quarter and full year 2022 results and provide an update on our outlook for 2023 and beyond. So to begin on slide five, I'd like to highlight some of the key data points that we believe are reflective of our continued strong commitment to operational excellence and our core company values. In 2022, we continue to deliver world-class results in terms of product quality, program launches, and service to our customers. This is reflected by our 98% green product quality scorecards. and 97% green program launch scorecards. Even more importantly, and a shout out to our plant managers, we had our best year ever in terms of employee safety, which is always our top priority as we come to work each day. For the full year 2022, our safety incident rate was 0.33 per 200,000 hours worked. well below the world-class benchmark of 0.57. We are especially proud of the 25 plants that completed the year with a perfect safety record of zero reported incidents. In view of continuing industry headwinds, we focused on further rightsizing every aspect of our business and improving operating efficiency. During 2022, Our manufacturing and purchasing teams delivered $75 million in cost savings through defined lien programs and other initiatives. We also successfully reduced our SGA and E expense by $22 million compared to 2021 and realized $8 million in savings from our past restructuring actions. So in total, we delivered $105 million in sustainable cost reductions for the year. By many measures, we had a very successful year, and we're certainly very proud of our team for their continued commitment, hard work, and engagement. Turning to page six, complementing our focus on manufacturing excellence is our commitment to doing business the right way. with uncompromised honesty, transparency, and integrity. This is one of our core values and an important component of our overall company culture. Frankly, it's just who we are. A few weeks ago, we were pleased to once again be named to Newsweek's list of America's most responsible companies. And we are also named one of the one of the world's 22 most ethical companies for the third consecutive year by Ethisphere earlier in the year. We see this type of recognition as an external acknowledgement of the quality of our company culture and how we conduct ourselves every day. We believe our culture is key to recruiting and retaining the best talent in the industry. And further, when combined with world-class technology and customer service, it's an important factor in winning and retaining business from our customers around the world. Turning to slide seven, on this slide, you can see how our customers have continued to support us with significant new business awards, which increased by 32% in 2022 versus 2021. And this increase in new awards occurred at the same time we were engaging our customers in challenging negotiations over cost recoveries and price adjustments. Significantly, our new business awards on EV platforms exceeded awards on traditional internal combustion engine platforms for the first time. We want to thank our customers for the continued support and entrusting us with providing critical components and technology for some of their most important vehicle platforms. Now I'll turn the call over to John to walk you through the financial details of the quarter and the year.