EX-99.2 5 ny20032193x1_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2
Standard Motor Products, Inc. Acquisition of Nissens Automotive July 10th, 2024

Safe Harbor – Forward Looking Statements 4 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 throughout this presentation, which is a non-GAAP measure. 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.

Benefits of the Acquisition of Nissens for SMP Shareholders Creates an aftermarket leader in North America and Europe across our key product categories Expands SMP’s product portfolio of powertrain-neutral and EV-specific categories Enhances customer and geographic diversity Adds a strong management team with a clear culture fit with SMP Delivers meaningful cost synergies and significant cross-selling potential Highly accretive in the first full year of the transaction 4

Nissens Automotive Overview Nissens at a glance Nissens by the numbers Nissens is a manufacturer and distributor of thermal management and engine efficiency parts for the automotive aftermarket Founded in 1921, and headquartered in Horsens, Denmark Manufacturing facilities in Slovakia and Denmark Operates through three distinct brands: Nissens brand targeting the premium segments of the passenger vehicle (PV), light commercial vehicle (LCV) as well as the heavy commercial vehicle (HCV) aftermarket AVA brand targeting the value segment of the passenger vehicle and light commercial vehicle aftermarket Highway brand is a specialized business unit for developing the value segments of heavy commercial and agriculture Net sales split2 Engine / EV cooling 47% Air conditioning 37% 16% By product category Engine efficiency Europe 85% MENAT 5% North America 5% RoW 5% By geography 500+ employees 17 distribution centers / warehouses >90% parc coverage1 >15,000 SKUs 1 For main product groups; 2 Metrics calendarized to 12/31 and in USD using EUR to USD exchange rate of 1.08; 3 Represents Nissens’ fiscal year ended 4/30; metrics converted to USD using EUR to USD exchange rate of 1.08 Nissens 81% AVA 9% Highway Automotive 10% By brand By vehicle type HCV & Others 22% PV / LCV 78% Historical net sales3 ($mm) 142 191 230 250 263 FY2020A FY2021A FY2022A FY2023A FY2024A #1 Market share in Europe 2 Manufacturing facilities 4

Leading Product Offering Across Multiple Categories Engine / EV Cooling (EC) Air Conditioning (AC) Engine Efficiency (EE) % of Net Sales1 Description Portfolio coverage2 Product groups Relevance in vehicle parc 47% Powertrain cooling systems maintain a constant engine performance and prevent overheating >200 Products added annually >16,200 Unique OE numbers covered >3,600 SKU count ICE PHEV EV Primary Radiators Oil coolers Other Electric water pumps, temperature sensors, expansion tanks, and fan clutches 37% Air conditioning systems regulate the temperature of the air inside the vehicle >200 Products Added annually >16,350 Unique OE numbers covered >3,700 SKU count ICE PHEV EV Primary AC compressors Condensers Other Blowers, fans, pressure sensors, evaporators, expansion valves, and heaters 16% Products to enhance engine efficiency and reduce emissions >200 Products added annually >8,100 Unique OE numbers covered >1,450 SKU count ICE PHEV EV Primary Turbochargers Intercoolers Other EGR valves & modules, EGR coolers and oil feed pipes 1 CYE 2023A and USD; 2 Shown for the Nissens brand only 5

Nissens’ Product Categories are Powertrain-Neutral Internal combustion engine (ICE) Electric vehicle (EV) 12 3 9 8 13 14 6 11 7 10 2 4 5 12 9 8 13 14 6 11 7 10 4 3 2 5 1 Radiator Oil cooler Expansion tanks Water pumps Temp. sensors Engine Cooling EC Product groups1 (detailed) Compressor Condenser Blower Heater Air Conditioning AC Fan (EC & AC) Receiver dryer Evaporator Expansion valve Pressure sensor Thermal system even more important for EVs EVs contain more components at higher values Same or higher replacement rates compared to ICE Nissens currently has over 900 SKUs for EVs 6 1 Non-exhaustive, some parts are not visible in visualization

Global Presence With a Strong Foothold In Europe Overview of Nissens’ Net Sales Split by Region Europe: 85% North America: 5% MENAT: 5% RoW: 5% Note: Metrics calendarized to 12/31 Key benefits of local sales teams Locally anchored relationships Local expertise and inventory management knowhow Local support Key benefits of loc al distribution centers Market-specific vehicle coverage Product availability Cost optimization Reliable deliveries Flexibility Localized Sales and Distribution 7

Operational excellence Complementary Offerings Across Combined Geographies Creating a Powerful Global Aftermarket Presence Leading North American supplier for Vehicle Control and Temperature Control products Leading European supplier for Thermal Management products with a growing array of Vehicle Control (Engine Efficiency) technologies $8-12mm In Expected Cost Synergies potentiBi-directial onal savings grStrowonthg othrppoughortuncritiosses foselli- r ng Improved performance through collaboration and best practices Shared go-to-market strategy of being a full-line full-service supplier of professional grade products resonates across the customer base 7

Transaction Overview 9 Purchase Consideration SMP to acquire 100% of Nissens Automotive for $388mm1 (€360mm) Represents approximately 7.5x EBITDA2 multiple incl. estimated run-rate cost synergies3 100% cash consideration, financed with existing cash and amended credit facilities Financial Impact Grows SMP’s top line by approximately 20% and expands EBITDA margin by 100-150bps Run-rate cost synergies of $8-12mm expected4 Double-digit EPS accretion expected within the first full year Significant potential upside from cross-marketing opportunities Acquisition expected to generate double-digit ROIC in first full year <3.5x net leverage5 expected at closing, target de-leveraging to <2.0x by the end of 2026 Financing Committed financing provided by J.P. Morgan, Bank of America and Wells Fargo SMP intends to extend existing maturities via a new 5-year Revolver and Term Loan A Combined company committed to deleveraging and continuing a disciplined capital allocation policy Timing Expected to close by the end of 2024 Transaction subject to standard customary closing conditions and regulatory approvals 1 Assumes EUR to USD exchange rate of 1.08; 2 Excludes add-back for IFRS-16 depreciation; 3 Assumes run-rate cost synergies of $10mm; 4 Run-rate cost synergies expected to be achieved within 24 months; 5 Net leverage defined as Net Debt / Adj. EBITDA. Estimated net leverage at close assuming no credit for synergies, subject to market conditions and timeline to close

Benefits of the Acquisition of Nissens for SMP Shareholders Creates an aftermarket leader in North America and Europe across our key product categories Expands SMP’s product portfolio of powertrain-neutral and EV-specific categories Enhances customer and geographic diversity Adds a strong management team with a clear culture fit with SMP Delivers meaningful cost synergies and significant cross-selling potential Highly accretive in the first full year of the transaction 10

Thank You 10