Slide 1: Carpenter Technology Corporation 2nd Quarter Fiscal Year 2022 Earnings Call
Exhibit 99.1 F e b r u a r y 2 , 2 0 2 2 CARPENTER TECHNOLOGY CORPORATION nd 2 Quarter Fiscal Year 2022 Earnings Call
Slide 2: Cautionary Statement
Cautionary Statement Forward-looking statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those proj
Slide 3: 2nd Quarter Fiscal Year 2022 - Tony Thene, President and CEO
nd 2 QUARTER FISCAL YEAR 2022 Tony Thene | President and Chief Executive Officer 3
Slide 4: Safety is Our Highest Value
Safety is Our Highest Value Total Case Incident Rate (TCIR) 4 3.7 3.5 3.3 3 2.5 2.2 2.1 2.0 2 1.5 1.3 1.2 1.1 1.0 1 0.6 0.5 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 YTD © 2022 CRS Holdings Inc. All rights reserved. 4
Slide 5: Second Quarter Summary
Second Quarter Summary • Demand across end-use markets continues to improve with backlog up 35% sequentially and 106% year-over-year Strong Demand Across • Completed long-term Aerospace and Defense contract renewals, locking in share and pricing gains Markets Resulting in Higher • Received three add
Slide 6: Second Quarter End-Use Market Highlights
Second Quarter End-Use Market Highlights Q2-22 NET SALES MARKET EX. SURCHARGE % VS. Q2-21 VS. Q1-22 COMMENTS ($M)* • Ongoing end-use market recovery despite near-term uncertainties • Significant increases in customer order intake and extending lead times across multiple applications $134.0 43% • Ind
Slide 7: Financial Overview and Business Update - Tim Lain, CFO
nd 2 QUARTER FISCAL YEAR 2022 FINANCIAL OVERVIEW AND BUSINESS UPDATE Tim Lain | Senior Vice President and Chief Financial Officer 7
Slide 8: Income Statement Summary
Income Statement Summary Performance impacted by short-term operational challenges YEAR-OVER- SEQUENTIAL $ millions, except pounds and per-share amounts Q2-22 Q2-21 Q1-22 YEAR CHANGE CHANGE Pounds (‘000) 43,082 39,620 43,528 3,462 (446) Net Sales 396.0 348.8 387.6 47.2 8.4 Net Sales ex. Surcharge Re
Slide 9: SAO Segment Summary
SAO Segment Summary Q2 OPERATING RESULTS Q2-22 Q2-21 Q1-22 vs Q2-21 vs Q1-22 Pounds ('000) 43,248 38,602 43,008 4,646 240 Net Sales ($M) 330.8 300.4 331.9 30.4 (1.1) Sales ex. Surcharge ($M) 251.6 251.6 258.2 0.0 (6.6) Operating Loss ($M) (20.3) (11.6) (5.9) (8.7) (14.4) % of Net Sales -6.1% -3.9% -
Slide 10: PEP Segment Summary
PEP Segment Summary Q2 OPERATING RESULTS Q2-22 Q2-21 Q1-22 vs Q2-21 vs Q1-22 Pounds* ('000) 2,776 1,534 2,372 1,242 404 Net Sales ($M) 85.7 54.8 74.6 30.9 11.1 Sales ex. Surcharge ($M) 83.8 54.1 73.6 29.7 10.2 Operating Income (Loss) ($M) 3.0 (7.2) 0.6 10.2 2.4 % of Net Sales 3.5% -13.1% 0.8% 16.6%
Slide 11: Free Cash Flow Summary
Free Cash Flow Summary Inventory growth in 1H-22; expect reduction in 2H-22 as production rates increase with growing demand; total liquidity remains healthy Q1-22 Q2-22 6 MOS FY22 6 MOS FY21 $ millions 11 (5) 6 1 Net Income (Loss) + Non-Cash Items (67) (43) (110) 156 Inventory 9 (41) (32) 20 Workin
Slide 12: Closing Comments - Tony Thene
nd 2 QUARTER FISCAL YEAR 2022 CLOSING COMMENTS Tony Thene | President and Chief Executive Officer 12
Slide 13: Positioned For Growth With Improving Demand Across End-Use Markets
Positioned For Growth With Improving Demand Across End-Use Markets • Continue to see demand increase across end-use markets with strong, long-term outlook • Several long-term contracts renewed in Aerospace and Defense end-use market demonstrating robust long-term outlook Focused on Customer • On tra
Slide 14: Appendix of Non-GAAP Schedules
APPENDIX OF NON-GAAP SCHEDULES 14
Slide 15: Non-GAAP Schedules: Adjusted diluted loss per share
Non-GAAP Schedules Adjusted diluted loss per share Q2-22 Q2-21 Q1-22 $ millions, except per-share amounts Diluted Loss per Share ($0.61) ($1.76) ($0.31) Net Loss (29.4) (84.9) (14.8) Special Items, net of tax: COVID-19 costs 1.4 3.0 0.9 Goodwill impairment - 52.7 - Special Items, net of tax: 1.4 55.
Slide 16: Non-GAAP Schedules: Adjusted operating margin
Non-GAAP Schedules Adjusted operating margin, excluding surcharge revenue and special items Q2-22 Q2-21 Q1-22 $ millions Net sales 396.0 348.8 387.6 Less: surcharge revenue 81.1 49.4 74.7 Net sales excluding surcharge revenue 314.9 299.4 312.9 Operating loss (31.5) (89.0) (19.1) Special items: COVID
Slide 17: Non-GAAP Schedules: Free cash flow
Non-GAAP Schedules Free cash flow Q1-22 Q2-22 6 MOS FY22 6 MOS FY21 $ millions Net Cash (Used for) Provided from Operating Activities (47.0) (89.2) (136.3) 171.6 Purchases of Property, Plant, Equipment and Software (14.4) (19.1) (33.4) (59.9) Proceeds from Disposals of Property, Plant & Equipment an
Slide 18: Your trusted partner in innovation
Your trusted partner in innovation. Carpenter Technology Corporation (NYSE: CRS) is a global leader in high-performance specialty alloy-based materials and process solutions for critical applications in the aerospace, defense, medical, transportation, energy, industrial and consumer electronics mark