Slide 1: 2024 Second Quarter Financial Results
2024 Second Quarter Financial Results August 22, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this presentation are forward-looking statements. Pursuant to federal securities regulations, we have set forth cautionary statements relating to those forward-looking statements in our Annual Report on Form 10-K for the year ended December
Slide 3: Tredegar Corporation 2024 Second Quarter and First Six Months Results
Tredegar Corporation 2024 Second Quarter and First Six Months Results (in millions, except per share data) 2Q 2024 2Q 2023 YTD 2024 YTD 2023 Net Sales1 $183.2 $171.0 $352.2 $356.0 Net Income from Ongoing Operations2 $10.3 $(2.0) $15.9 $0.5 Diluted EPS from Ongoing Operations2 $0.30 $(0.06) $0.46 $0.
Slide 4: Aluminum Extrusions (Bonnell Aluminum)
Aluminum Extrusions (Bonnell Aluminum) 2024 Second Quarter and First Six Months Year Results Second Quarter Performance First Six Months Performance (in millions) 2Q 24 2Q 23 (in millions) 2024 2023 Volume (lbs.) 34.9 35.5 (2)% Volume (lbs.) 68.7 73.1 (6)% Net Sales1 $119.4 $121.8 (2)% Net Sales1 $2
Slide 5: Aluminum Extrusions: Sales Volume by End-Use Market and Open Orders
Aluminum Extrusions (Bonnell Aluminum) Sales Volume by End-Use Market and Open Orders Three Months Three Months Six Months Ended Favorable/ Ended Favorable/ Ended Favorable/ June 30, (Unfavorable) March 31, (Unfavorable) June 30, (Unfavorable) (In millions of lbs) 2024 2023 % Change 2024 % Change 20
Slide 6: Open Orders, Net Bookings and ABI Index
Aluminum Extrusions (Bonnell Aluminum) Open Orders, Net Bookings and ABI Index • Open orders at the end of the second quarter of 2024 were 14 million pounds (versus 15 million pounds at the end of the first quarter of 2024 and 20 million pounds at the end of the second quarter 2023). This level is b
Slide 7: PE Films Second Quarter and First Six Months Results
PE Films (Surface Protection, Polyethylene Overwrap Films & Films for Other Markets) 2024 Second Quarter and First Six Months Results Second Quarter Performance First Six Months Performance (in millions) 2Q 24 2Q 23 (in millions) 2024 2023 Volume (lbs.) 10.5 6.2 69% Volume (lbs.) 20.6 13.6 51% Net S
Slide 8: Flexible Packaging Films (Terphane)
Flexible Packaging Films (Terphane) 2024 Second Quarter and First Six Months Results Second Quarter Performance First Six Months Performance (in millions) 2Q 24 2Q 23 (in millions) 2024 2023 Volume (lbs.) 25.1 23.7 6% Volume (lbs.) 47.0 43.6 8% Net Sales1 $34.5 $33.2 4% Net Sales1 $64.7 $64.8 -- Ong
Slide 9: Status of Agreement to Sell Terphane
Status of Agreement to Sell Terphane On September 1, 2023, the Company announced that it had entered into a definitive agreement to sell Terphane to Oben Group (the “Contingent Terphane Sale”). Completion of the sale is contingent upon the satisfaction of customary closing conditions, including the
Slide 10: Total Debt, Financial Leverage and Debt Covenants
Total Debt, Financial Leverage and Debt Covenants Total debt was $142.0 million at June 30, 2024 and $146.3 million at December 31, 2023. Cash, cash equivalents and restricted cash was $8.7 million at June 30, 2024 and $13.5 million at December 31, 2023. Net debt (total debt in excess of cash, cash
Slide 11: 2024 Year-to-Date Financial Highlights
Tredegar Corporation 2024 Year-to-Date Financial Highlights ($ in millions) Cash Flows provided by operations $7.3 Capital Expenditures $4.8 Dividends Paid1 $0.0 Net Debt2 $133.3 ABL Facility availability in excess of Minimum Liquidity covenant (as of June 30, 2024) $36.0 1 The Company suspended its
Slide 12: Appendix
‘Tredegar an < ) Appendix
Slide 13: Major Product Groups, Primary End Markets, Customers, Competitors
Major Product Groups Primary End Markets Customers Competitors Aluminum Extrusions Custom designed, fabricated and Building and Construction: commercial windows & Glazing contractors and Hydro Extrusions North finished aluminum extrusions; value- doors, curtain walls, storefronts & entrances, automa
Slide 14: Tredegar's Global Presence
Tredegar’s Global Presence 13
Slide 15: Tredegar at a Glance
Tredegar at a Glance Business Strengths Aluminum Extrusions Industry-leading position in non-residential building and construction and value-added OEM components in North American extrusions market Market-focused manufacturing operations (including aluminum log casting capabilities) and world-cl
Slide 16: Aluminum Extrusions Business Profile
Aluminum Extrusions Business Profile Key Market Drivers • Strong demand for finished products, including anodized, $453 million LTM Net Sales1 painted products and fabricated components 9% • Growing aluminum content in vehicles, driven by CAFE Electrical & (corporate average fuel economy) standards
Slide 17: Index of North American Industry Volume for Bonnell's Key Markets
Aluminum Extrusions Index of North American Industry Volume for Bonnell’s Key Markets Note: Index computations based on Aluminum Association data (1982=1.0). Specialty includes aluminum extrusions sold to consumer durables, electrical and machinery markets. 16
Slide 18: Aluminum Extrusions Key Markets
Aluminum Extrusions Key Markets - B&C/Automotive/Specialty 17
Slide 19: Automotive Aluminum Extrusion Applications
Aluminum Extrusions Automotive Aluminum Extrusion Applications Crash management systems – beams and mounting plates, crush cans Roof rails Electrical battery trays Air conditioner tube connectors 18 Aluminum Overview Film Products Financials Extrusions
Slide 20: Aluminum Extrusions Annual Historical Financials
Aluminum Extrusions Annual Historical Financials Net Sales1 ($ in millions) 2 EBITDA from Ongoing Ops ($ in millions) 638 $80 67 $600 539 55 56 456 475 453 38 39 $40 $300 $0 $0 2020 2021 2022 2023 LTM 2020 2021 2022 2023 LTM Volume (lbs. in millions) Capital Expenditures ($ in millions) 300 $30 24 2
Slide 21: PE Films Business Profile
PE Films Business Profile Key Growth Drivers $95 million LTM Net Sales1 • “Internet of Things” leading to greater connectivity and more displays and semiconductors 32% • Thinner devices with increasing resolution and larger Overwrap Packaging screen size • Demographic and workplace trends shifting t
Slide 22: End-Use Markets for Surface Protection Products
PE Films End-Use Markets for Surface Protection Products 21
Slide 23: Surface Protection Overview
PE Films Surface Protection Overview Typical LCD Optical Stack (examples: TVs, Smartphones) 22
Slide 24: PE Films Annual Historical Financials
PE Films Annual Historical Financials Net Sales1 ($ in millions) EBITDA from Ongoing Ops ($ in millions) $200 45 139 $40 $150 119 28 26 98 95 $100 77 $20 12 11 $50 $0 $0 2020 2021 2022 2023 LTM 2020 2021 2022 2023 LTM Volume (lbs. in millions) Capital Expenditures ($ in millions) 45 $10 39 40 36 33
Slide 25: Flexible Packaging Films Business Profile
Flexible Packaging Films Business Profile $126 million LTM Net Sales1 Key Growth Drivers • Growing end-user demand for convenience foods, lighter packaging and branded consumer 31% products North America & Other • Packaging innovation driving demand for flexible packaging Customers • Global and regi
Slide 26: Flexible Packaging Films End-Use and Value-Add Products
Flexible Packaging Films End-Use and Value-Add Products 25
Slide 27: Flexible Packaging Films Annual Historical Financials
Flexible Packaging Films Annual Historical Financials Net Sales1 ($ in millions) EBITDA from Ongoing Ops ($ in millions) $200 $40 168 32 31 135 140 $30 27 126 126 $100 $20 $10 8 4 $0 $0 2020 2021 2022 2023 LTM 2020 2021 2022 2023 LTM Volume (lbs. in millions) Capital Expenditures ($ in millions) 150
Slide 28: Tredegar Annual Historical Financials
Tredegar Corporation Annual Historical Financials 1 Net Sales ($ in millions) Consolidated EBITDA from Ongoing Ops2 ($ in millions) 904 $150 $900 798 730 678 674 96 $100 81 85 $600 53 $300 $50 34 $0 $0 2020 2021 2022 2023 LTM 2020 2021 2022 2023 LTM Earnings Per Share from Ongoing Ops3 Capital Expen
Slide 29: Capital Expenditures – History & Projections
Tredegar Corporation Capital Expenditures – History & Projections ($ in millions) 2024 2020 2021 2022 2023 Projection2 Aluminum Extrusions $10.3 $18.9 $23.7 $20.3 $9 PE Films1 6.0 3.0 3.3 1.8 2 Flexible Packaging 5.0 5.6 8.2 4.3 4 Corporate 0.2 (0.1) 1.7 0.0 0 Total $21.5 $27.4 $36.9 $26.4 $15 2024
Slide 30: Quarterly Cash Dividend
Tredegar Corporation Quarterly Cash Dividend ($) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Tredegar suspended its quarterly dividend on 8/3/2023. A special dividend of $5.97 per share was paid in 2020 and $0.75 per share was paid in 2012. 29
Slide 31: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations
Slide 32: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations On October 30, 2020, the Company completed the sale of its personal care films business ("Personal Care Films"), w hich w as part of its PE Films segment. The transaction excluded the packaging film lines and related operations located at the Pottsville, Pennsylvania
Slide 33: GAAP to Non-GAAP Reconciliations: Summary Financial Information
GAAP to Non-GAAP Reconciliations 2. Summary Financial Information Year Ended Decem ber 31, LTM QTD QTD (in millions) 2020 2021 2022 2023 2024 Q2 2023 Q2 2024 Income and expense relating to ongoing operations: Total EBITDA for segments (a) $ 130.8 $ 115.3 $ 106.2 $ 53.6 $ 72.1 $ 11.3 $ 26.2 Pension e
Slide 34: Summary Financial Information (continued) Notes
GAAP to Non-GAAP Reconciliations 2. Summary Financial Information (continued) Notes: (a) Tredegar’s presentation of segment earnings before interest, taxes, depreciation and amortization from ongoing operations (“EBITDA") from ongoing operations aligns w ith key metrics used by the Chief Operating D
Slide 35: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 4. The after-tax effects of losses associated w ith plant shutdow ns, asset impairments and restructurings, gains or losses from the sale of assets, goodw ill impairment charges, net periodic benefit cost for the frozen defined benefit pension plan and other items (w
Slide 36: Net Debt Reconciliation
GAAP to Non-GAAP Reconciliations 5. Net debt is a non-GAAP financial measure that is not intended to represent debt as defined by GAAP, but is utilized by management in evaluating financial leverage and equity valuation. A calculation of net debt is show n below : (In millions) June 30, December 31,