Slide 1: First Quarter 2019 Conference Call
First Quarter 2019 Conference Call April 23, 2019 © 2019 ATI. All rights reserved.
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: First Quarter 2019 Highlights
First Quarter 2019 Highlights $M (excl. EPS) Q1 2019 Q1 2018 % Chg. Revenue $1,004.8 $979.0 +3% Segment Operating Profit $61.7 $96.4 (36)% Segment Operating Profit Margin 6.1% 9.8% (370) b.p. Net Income* $15.0 $58.0 (74)% Net Income * $15.0 $43.3 (65)% (ex. special items) EPS $0.12 $0.42 (71)% EPS (
Slide 4: High Performance Materials & Components
High Performance Materials & Components Segment ($M) Q4 ‘17 Q1 ‘18 Q2 ‘18 Q3 ‘18 Q4 ‘18 Q1 ‘19 Q1 ‘19 YOY Sales $517.7 $560.7 $591.9 $585.5 $596.1 $601.2 +7% Operating Profit $65.8 $85.5 $97.9 $76.0 $76.0 $72.6 (15)% % of Sales 12.7% 15.2% 16.5% 13.0% 12.7% 12.1% (310) b.p. First Quarter vs. Prior Y
Slide 5: High Performance Materials & Components: Revenue by Market
High Performance Materials & Components Revenue by Market Airframe Q1 2019 Revenue Aerospace & Defense Medical Jet Engine Production Gov’t & Electrical Energy 7% Defense 5% Oil & Gas 13% 3% 3% Const. & Mining Next Number of Engines Airframe 5% Other Generation 20% Legacy Jet Engine 44% 2014 2015 201
Slide 6: Flat Rolled Products
Flat Rolled Products Segment ($M) Q4 ‘17 Q1 ‘18 Q2 ‘18 Q3 ‘18 Q4 ‘18 Q1 ’19 Q1 ‘19 vs. Q4 ‘18 Sales $392.2 $418.3 $417.6 $434.7 $441.8 $403.6 (9%) Operating Profit / (Loss) $22.4 $10.9 $26.1 $29.5 $11.3 $(10.9) (197%) % of Sales 5.7% 2.6% 6.3% 6.8% 2.6% (2.7)% (530) b.p. First Quarter vs. Prior Year
Slide 7: Flat Rolled Products: Revenue by Market & Product
Flat Rolled Products Revenue by Market & Product Q1 2019 Revenue by Market Q1 2019 Revenue by Product Construction & Mining Stainless Steel Plate Electrical Energy 10% 4% 7% Electronics Stainless Aero & Def 8% Steel Sheet 15% 17% Precision Strip 5% Other 33% Food Equip. & Specialty Appliance Stainle
Slide 8: Financial Update
Financial Update Free Cash Flow Balance Sheet and Cash Flow $ millions ▪ Cash and liquidity at 3/31/2019 ▪ $217 million cash on hand +660% ▪ ~$360 million available on ABL 288 ▪ No outstanding borrowings on ABL revolver ▪ Cash used in operations for Q1 2019 was $130 million ▪ Higher managed working
Slide 9: Financial Performance Outlook
Financial Performance Outlook High Performance Materials & Components Segment ▪ Q2 2019 outlook remains below expectations due to the continuation of powder billet supply issues ▪ YOY revenue growth rate consistent with full year 2019 guidance ▪ Sequential operating profit margin improvement of ~150
Slide 10: First Quarter 2019 Conference Call Q&A
First Quarter 2019 Conference Call Q&A © 2019 ATI. All rights reserved. 10
Slide 11: Additional Materials Appendix
Additional Materials Appendix 11
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, management believes that certain non-GAAP financial measures, used in managing the business, may provide users of this