Slide 1: Cautionary Statement: Forward-Looking Statements
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 2: 1st Quarter Fiscal Year 2016 Summary
1st Quarter Fiscal Year 2016 Summary Tony Thene President and Chief Executive Officer
Slide 3: Safety is our First Priority
Safety is our First Priority 3.7 © 2015 CRS Holdings, Inc. All rights reserved 4 Total Case Incident Rate (TCIR) 4.8 3.93.9 3.5 3.3 2.3 2.1 FY09FY10FY11FY12FY13FY14FY15FY16 YTD
Slide 4: 1st Quarter Summary
d m Defense p cost performa • Continue end-use volumes l • Year-over stronger •Specialty on operat • Performa Oil and G Aerospac • Generate • Repurcha Despite significantly lower volumes, operating performance improvements remain on track 1st Quarter Summary
Slide 5: 1st Quarter FY16 End-Use Market Highlights
1st Quarter FY16 End-Use Market Highlights vs. Q1-15 vs. Q4-15 Q1-16 Net Sales ex. Surcharge ($M)* Comments • Engine material sales up modestly YOY • SAO Oil and Gas revenue down 42% sequentially and 51% YOY applications drove a richer mix YOY for Carpenter’s materials • Demand remains steady for pr
Slide 6: 1st Quarter Fiscal Year 2016 Financial Overview
1st Quarter Fiscal Year 2016 Financial Overview Tim Lain Vice President – Controller, Chief Accounting Officer
Slide 7: Income Statement Summary
Income Statement Summary Change *Detailed schedule included in Non-GAAP Schedules in Appendix^ Detailed schedule included on next slide © 2015 CRS Holdings, Inc. All rights reserved 8 Improved year-over-year margins despite 12% lower sales ex. surcharge $ Millions , except per-s hare am ounts Q1-15Q
Slide 8: Restructuring Charges and Special Items
Restructuring Charges and Special Items Classification • Discrete income tax charge recorded in Q1-16 as a result of decision to sell equity method investment in India. The company currently expects to complete the sale in Q2-16. Note: The Restructuring Charges and Special Items amounts above are sh
Slide 9: Adjusted Operating Income
Adjusted Operating Inc s Millions Operating Income ex. Pension $60---------------------------$40 $30 $20 ($ $10 $0+-----Q4-15 ----------Volume ---Pric Improving cost performance more tha
Slide 10: Free Cash Flow Summary
Free Cash Flow Summary The clerical accuracy of certain amounts may be impacted due to rounding. © 2015 CRS Holdings, Inc. All rights reserved 11 $524 million of total liquidity including $31 million of cash at end of Q1-16 $ Millions Q1-15 Q4-15 Q1-16 Net Income + Non-cash Items Inventory Other wor
Slide 11: Share Repurchase Program Update
Share Repurchase Program Update • • • Authorized share repurchase program in October 2014 Up to $500M of share repurchases authorized over a two year period Repurchased at Company’s discretion based on capital needs of the business, general market conditions and market price of the stock May be disc
Slide 12: Business Update and Growth Enablers
Business Update and Growth Enablers Tony Thene President and Chief Executive Officer
Slide 13: SAO Segment Summary
SAO Segment Summary SAO Segment Q1 Results and Q2 Outlook © 2015 CRS Holdings, Inc. All rights reserved 14 Q2 Outlook • Overall volumes expected to be similar to Q1-16 • Demand expected to remain steady in the Aerospace and Defense and Medical end-use markets • Expect growth opportunities in the Tra
Slide 14: PEP Segment Summary
PEP Segment Summary PEP Segment Q1 Results and Q2 Outlook • Low demand for Industrial and Consumer • Weakness in Oil and Gas businesses * Pounds related to manufactured tons for Dynamet and Carpenter Powder Products only © 2015 CRS Holdings, Inc. All rights reserved 15 Q2 Outlook • Sales expected to
Slide 15: Growth Enablers
Growth Enablers FY17 © 2015 CRS Holdings, Inc. All rights reserved 16 Investments in capabilities to enable future growth Carpenter Powder Products • One of the world’s largest suppliers of spherical gas atomized metal powders • Manufacturing facilities: Pennsylvania, Rhode Island, Alabama and Swede
Slide 16: Outlook and Closing
Outlook and Closing C • • Q2-16 vol Increasin year - perio Aero expe - Sign conti rema - Addit end-Expecting Continuin • • • • Maintainin Executing
Slide 17: Appendix of Non-GAAP Schedules
Appendix of Non-GAAP Schedules
Slide 18: Non-GAAP Schedules: Operating Margin Excluding Surcharge, Pension EID
Non-GAAP Schedules (Unaudited) Operating Margin Excluding Surcharge, Pension Earnings, Interest and Deferrals "Pension EID", Restructuring Charges and Special Items Management believes that removing the impacts of raw material surcharge from operating margin provides a more consistent basis for comp
Slide 19: Non-GAAP Schedules: Free Cash Flow
Non-GAAP Schedules (Unaudited) Free Cash Flow Management believes that the free cash flow measure provides useful information to investors regarding our financial condition because it is a measure of cash generated which management evaluates for alternative uses. © 2015 CRS Holdings, Inc. All rights
Slide 20: Free Cash Flow reconciliation
Net cash provided from operating activities 15.0 415 Purchases of property, equipment and software (59.0)| (29.9)| Proceeds from disposals of property and equipment 0.1 - Proceeds from insurance claim c 40 Dividends paid (9.6)| (9.0)| Free Cash Flow (53.5)| 6.6 Management believes that the free cash