Slide 1: Second Quarter 2019 Conference Call
MINERALS TECHNOLOGIES INC. AUG 2, 2019 SECOND QUARTER 2019 CONFERENCE CALL I N N O V AT I O N ▪ L E A D E R S H I P ▪ E X C E L L E N C E
Slide 2: Safe Harbor Statement
SAFE HARBOR S TAT E M E N T This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 which describe or are based on current expectations. Actual results may differ materially from these expectations. In addition, any statem
Slide 3: Douglas Dietrich, Chief Executive Officer
MINERALS TECHNOLOGIES INC. AUG 2, 2019 DOUGLAS DIETRICH CHIEF EXECUTIVE OFFICER I N N O V AT I O N ▪ L E A D E R S H I P ▪ E X C E L L E N C E
Slide 4: Second Quarter 2019 Highlights
SECOND QUARTER 2019 HIGHLIGHTS • Strong Household and Personal Care, Environmental Products, Building Materials, and Energy Services REVENUE $464M +3% Ex FX • New 45,000 Ton PCC Satellite Contract in India • Commercial Deployment of ENVIROFIL® PCC Recycling Technology OPERATING INCOME $61M • Slower
Slide 5: MTI Current Market Overview
MTI CURRENT M A R K E T O V E RV I E W Segment Product Line Market Overview Household and Personal Care Continued Strong Demand for Private Label Pet Care; Specialty Products Environmental Products Strong Customer Pull for Higher Value Products Performance Materials Building Materials Stable O
Slide 6: Well Positioned to Execute on Growth Opportunities
W E L L P O S I T I O N E D TO E X E C U T E ON GROWTH OPPORTUNITIES Investing in Organic Growth • Opportunities in Consumer-Oriented Products NA Pet Care +15% Q2’19 • Private Label Pet Care • Specialty Products (Edible Oil Purification, Animal Health) Environmental Products +15% Q2’19 • Shift to Hi
Slide 7: Matthew Garth, Chief Financial Officer
MINERALS TECHNOLOGIES INC. AUG 2, 2019 MATTHEW GARTH CHIEF FINANCIAL OFFICER I N N O V AT I O N ▪ L E A D E R S H I P ▪ E X C E L L E N C E
Slide 8: Second Quarter Financial Highlights
SECOND QUARTER FINANCIAL HIGHLIGHTS KEY FINANCIALS SALES BRIDGE 2Q18 2Q19 Change $ Millions 0% Sales ($M) 464.7 463.8 (0%) 10.3 (4.1) 464.7 463.8 7.3 Gross Margin (%) 24.9 24.1 (80)bps (14.4) 2Q18 FX Sivomatic Price Volume / Mix 2Q19 (April SGA (%) 11.1 11.0 (10)bps Increment) O P E R AT I N G I N C
Slide 9: Second Quarter 2019 EPS Reconciliation
SECOND QUARTER 2019 E P S R E C O N C I L I AT I O N Reported EPS $0.75 Pre-tax After-tax (Gain) / (Gain) / Loss Loss Severance Related Costs $5.7M $4.2M $0.12 Impairment of Assets $7.5M $6.3M $0.18 Total Restructuring And Other Items, Net $13.2M $10.5M $0.30 Write-off of Receivables for UK Bankrupt
Slide 10: Performance Materials
PERFORMANCE M AT E R I A L S Second Quarter Results Sales, $M Operating Income, $M 0% -8% 214.5 215.4 30.1 199.2 27.7 26.3 +4% Excl. FX Volume / Mix: (2.6M) Net Price / Cost*: $(0.7M) 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 *Raw Material, Ore Cost, Freight, & Energy Second Quarter Highlights Third Quarter Out
Slide 11: Specialty Minerals
S P E C I A LT Y MINERALS Second Quarter Results Sales, $M Operating Income, $M -4% -10% 150.9 144.4 145.1 25.1 22.0 22.5 (1%) Excl. FX FX: (0.9M) PCC Shutdowns: $(1.2M) Volume / Mix: $(1.1M) 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 Second Quarter Highlights Third Quarter Outlook • Paper PCC (5%): Flat Ex FX;
Slide 12: Refractories
R E F R A C TO R I E S Second Quarter Results Sales, $M Operating Income, $M -3% +1% 79.6 77.5 12.1 73.8 10.3 10.4 Flat Excl. FX 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 Second Quarter Highlights Third Quarter Outlook • Continued Strong Steel Market • North America Stable Conditions in US; Utilization Rates 80
Slide 13: Energy Services
ENERGY S E RV I C E S Second Quarter Results Sales, $M Operating Income, $M +31% +145% 25.8 2.7 2.4 19.7 20.3 1.1 2Q18 1Q19 2Q19 2Q18 1Q19 2Q19 Second Quarter Highlights Third Quarter Outlook • Sales Growth Driven by Higher Well • Continued Strong Well Testing Activity Testing and Filtration Activit
Slide 14: Liquidity and Debt Highlights
LIQUIDITY AND DEBT HIGHLIGHTS Cash Flow and Capital Deployment Cash From Operations, $M Capital Expenditure, $M +23% +52% 98 80 70 68 2Q19 53 36 45 Debt Repaid $20M 31 42 36 24 20 18 Shares Repurchased $10M 18 14 18 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 YTD18 YTD19 Debt and Leverage Liquidity Total Debt, $M
Slide 15: Third Quarter Outlook
THIRD QUARTER OUTLOOK Q3 MTI Outlook Generally Weaker Markets (Metalcasting, Basic Minerals, China, Europe) Uncertainty in Timing of Large Projects (Environmental Products, Building Materials, and Energy Services) Continued Strength in HPC Stable Conditions in PCC Savings from Restructuring Beginnin
Slide 16: Second Quarter 2019 Conference Call
MINERALS TECHNOLOGIES INC. AUG 2, 2019 SECOND QUARTER 2019 CONFERENCE CALL I N N O V AT I O N ▪ L E A D E R S H I P ▪ E X C E L L E N C E