Slide 1: Proven to perform anywhere. Second Quarter 2024 Earnings
Proven to perform anywhere. Second Quarter 2024 Earnings August 6, 2024 ATI Proprietary and Confidential ©2024 ATI. All rights reserved. 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements. Actual results may differ materially from results anticipated in the forward-looking statements due to various known and unknown risks, many of which we are unable to predict or control. These and additional risk facto
Slide 3: Key Takeaways
Key Takeaways Performance Balance Sheet Strategic Progress Aero and aero-like growth drives Deploying capital for shareholder Ti capacity expansion investments strong second quarter performance returns, efficiently managing capital extend competitive advantages 45% YoY growth in titanium (“Ti”) and
Slide 4: Strategic Markets & Diversified Applications
Strategic Markets & Diversified Applications Year over Q2 ‘24 Sequential Market Revenue Year Outlook Comments Change Change • Continued growth resulting from broadening customer diversification, operational Jet Engine $353M +13% +4% and supply chain improvements, and strong MRO demand for forgings •
Slide 5: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results HPMC Segment $M (excl. EPS) Q2 2024 Q2 2023 % Chg. Q1 2024 % Chg. Revenue: 7% year-over-year and 6% sequential growth driven by: Revenue $1,095 $1,046 +5% $1,043 +5% ‒ 40% YoY and 9% sequential increase in airframe sales – predominantly titanium, unlocked by ong
Slide 6: Cash & Liquidity
Cash & Liquidity Balance Sheet and Cash Flow (1) (2) Net Debt/Adj. EBITDA Ratio: 2.7x Q2 results • Liquidity of ~$980M, including $426M of cash on hand • Managed working capital(2) 35.5% of sales; improvement of ~300 bps versus Q2 2023 $600 ‒ Anticipate trending lower, returning to 30% target levels
Slide 7: Third Quarter & Full Year 2024 Outlook
Third Quarter & Full Year 2024 Outlook Third Quarter 2024 Key Assumptions Adj. EPS (1)(3) Adj. EBITDA (3) Key Drivers ✓ Continued growth in A&D and Aero-like $0.63 – $0.69 $189 – $199 million ✓ 45% increase in capacity for titanium production from existing assets ramping Previously X (Previously $X
Slide 8: Additional Materials Appendix
Additional Materials Appendix
Slide 9: Appendix 1 – 2024 Outlook Assumptions
Appendix 1 – 2024 Outlook Assumptions Earnings Drivers 2024 FY Net Interest Expense ~$109M Annual Cash Flow Drivers Capital Expenditures $190M - $230M Depreciation & Amortization ~$150M Managed Working Capital(1) Cash Usage of $50M - $100M Full Year Cash Taxes ~$19M Q3 2024: 146.3M shares Avg. Fully
Slide 10: Appendix 2 – Non-GAAP Financial Measures
Appendix 2 ATI Inc. and Subsidiaries Non-GAAP Financial Measures (Unaudited, dollars in millions, except per share amounts) The Company Companyreports reportsitsits financial results financial in accordance results in accordancewith accounting principles with accounting generally principles accepted
Slide 11: Appendix 2 (continued)
Appendix 2 (continued) Fiscal Quarter Ended June 30, 2024 March 31, 2024 July 2, 2023 Reported Adjusted Reported Adjusted Reported Adjusted Numerator for Basic net income per common share - Net income attributable to ATI $ 81.9 $ 86.0 $ 66.1 $ 68.4 $ 90.4 $ 100.6 Effect of dilutive securities 2.2 2.
Slide 12: Appendix 2 (continued)
Appendix 2 (continued) Fiscal Quarter Ended Latest year ended June 30, 2024 March 31, 2024 July 2, 2023 June 30, 2024 Net income attributable to ATI $ 81.9 $ 66.1 $ 90.4 $ 383.9 Net income attributable to noncontrolling interests 3.7 2.3 3.1 13.4 Net income 85.6 68.4 93.5 397.3 (+) Depreciation and
Slide 13: Appendix 2 (continued) – Free Cash Flow
Appendix 2 (continued) Free Cash Flow Free cash flow as defined by ATI includes the total of cash provided by (used in) operating activities and investing activities as presented on the consolidated statements of cash flows, adjusted to exclude cash contributions to the Company’s U.S. qualified defi