Slide 1: Third Quarter 2020 Earnings Presentation
Third Quarter 2020 Earnings Presentation October 29, 2020 © 2020 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: Key Takeaways – Third Quarter 2020
Key Takeaways – Third Quarter 2020 Q3 Performance Balance Sheet Outlook Earnings and free cash flow1 generation Operating from a position of strength; deploy Increasing commercial aerospace demand ahead of expectations capital for long-term growth stabilization; modest recovery in other markets • Co
Slide 4: Leadership Priorities
Leadership Priorities OPTIMIZE COST STRUCTURE PRESERVE CASH & TO MATCH NEW DEMAND MAINTAIN LIQUIDITY EXPECTATIONS KEEP EMPLOYEES SAFE SUPPORT CUSTOMERS BE “RECOVERY READY,” THROUGH CONTINUED LEVERAGING SHARE STRONG EXECUTION GAINS FOR GROWTH Maintain a Solid Foundation to Ensure Long-Term Profitabil
Slide 5: ATI Strategic Markets & Diversified Applications
ATI Strategic Markets & Diversified Applications Q3 2020 YoY Near-term Market Comments Revenue % Change Market Outlook • Steep Q3 decline driven largely by end-market demand destocking Jet Engine $88M (68%) • Expect modest forgings demand increase offset by specialty materials destocking in Q4 (61%)
Slide 6: Third Quarter 2020 Financial Results
Third Quarter 2020 Financial Results Revenue reflects ongoing demand weakness $M (excl. EPS) Q3 2020 Q3 2019 % Change driven by global pandemic and resulting lower economic activity Revenue $598 $1,019 (41%) AA&S: Aerospace & Defense and Energy each down approx. 40%, partially mitigated by increas
Slide 7: Cash and Liquidity Update
Cash and Liquidity Update Debt Maturity Schedule Balance Sheet and Cash Flow Net Debt/Adj. EBITDA(1) Ratio: 3.5x Cash and liquidity at Q3 2020 quarter end Q3 liquidity of ~$950 million, including $572M cash on hand $600 Positive cash from operations in Q3 $500 Reduced inventory by $66 million;
Slide 8: 2020 Outlook
2020 Outlook Full Year 2020 Key Outlook Assumption Earnings Drivers 737 MAX production restarted in Q2; continues at low rate prior assumption: consistent 1 EPS FCF Nickel prices in expected range of $6.50/lb. - $7.00/lb. Adj. EPS prior assumption: $5.50/lb. to $6.00/lb. $135M - $150M ($0.55
Slide 9: Additional Materials Appendix
Additional Materials Appendix
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures © 2020 ATI. All rights reserved. 10
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures © 2020 ATI. All rights reserved. 11
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures © 2020 ATI. All rights reserved. 12