Slide 1: First Quarter 2020 Earnings Presentation
First Quarter 2020 Earnings Presentation 1April 2020
Slide 2: Legal Notices
Legal Notices SAFE HARBOR Please note that in this presentation, we may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statement
Slide 3: COVID-19 Update and Recent Actions
COVID-19 Update and Recent Actions As of April 2020 Prioritizing People & Business Continuity ▪ Protecting the health and safety of our people and their families by promoting a healthy and safe working environment ▪ All facilities increased health and safety protocols to meet or exceed new local and
Slide 4: First Quarter 2020 Financial Results
First Quarter 2020 Financial Results Constant ▪ Organic net sales* declined 3%, driven primarily Currency* Organic* by COVID-19 related slowdowns in Electronics in Asia, particularly in China, and global demand ($ in millions) Q1 2020 Q1 2019 YoY YoY YoY weakness in automotive and industrial markets
Slide 5: First Quarter 2020 Segment Details
First Quarter 2020 Segment Details Market Commentary Electronics Net Sales ($ in millions) 4% 2% 269 ▪ Assembly: weakness in Asia largely due to COVID-19 266 1% related production slowdowns; declines in the Americas and Europe driven by softness in March (1%) (5%) ▪ Circuitry: strong year-over-year
Slide 6: Balance Sheet and Cash Flow Considerations
Balance Sheet and Cash Flow Considerations Key Cash Flow Items Balance Sheet Management ▪ Q1 2020 free cash flow* of $51 million ▪ Net debt to adj. EBITDA ratio* of 3.2x on a LTM basis as of March 31, 2020 ▪ Cash interest paid of $4 million reflects undrawn corporate revolver for a majority of the q
Slide 7: Near Term Financial Outlook
Near Term Financial Outlook ▪ Major OEM shutdowns materially impacting demand in Industrial ▪ Electronics supply chain weaker but resilient (expected to decline by ~10% across the portfolio) Current Market ▪ Continued positive momentum in Graphics Conditions ▪ Energy performance should be stable in
Slide 8: Appendix
Appendix 8
Slide 9: Capital Structure
Capital Structure ($ millions) Instrument Maturity Coupon 3/31/2020 Corporate Revolver 1/31/2024 LIBOR plus 2.25% $320 First Lien Credit Facility - USD Term Loans1 1/31/2026 LIBOR plus 2.00% 741 Other Secured Debt 1 Total First Lien Debt $1,061 Senior Notes due 2025 12/1/2025 5.875% 800 Total Unsecu
Slide 10: Reconciliation to Adjusted Share Counts
Reconciliation to Adjusted Share Counts (amounts in millions) Q1 2020 Q1 2019 Common shares outstanding 249 257 Number of shares issuable upon conversion of Series A Preferred Stock — 2 Number of shares issuable upon vesting of granted Equity Awards1 3 3 Adjusted common shares outstanding 252 262 No
Slide 11: Net Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA
Net Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA ($ millions) Q1 2020 Q1 2019 Net income attributable to common stockholders $9 $23 Add (subtract): Net income attributable to the non-controlling interests — 1 Income from discontinued operations, net of tax (0) (27) Income
Slide 12: Net Debt to Adj. EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis
Net Debt to Adj. EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis ($ millions) QTD 2020 Q2 2019 Q3 2019 Q4 2019 LTM Q1 2020 Net income (loss) attributable to common stockholders $9 $2 $(7) $74 $78 Add (subtract): Net (loss) income attributable to the non-controlling interests — (0) — 0 —
Slide 13: GAAP Net Income Reconciliation to Adjusted Diluted EPS
GAAP Net Income Reconciliation to Adjusted Diluted EPS ($ millions, except per share amounts) Q1 2020 Q1 2019 Net income attributable to common stockholders $9 $23 Net income from discontinued operations attributable to common stockholders 0 27 Net income (loss) from continuing operations attributab
Slide 14: Organic Net Sales Growth Reconciliation
Organic Net Sales Growth Reconciliation Three Months Ended March 31, 2020 Change in Pass- Reported Net Impact of Constant Organic Net Sales Through Metals Acquisitions Sales Growth Currency Currency Growth Pricing Electronics 1% 1% 3% 1% (5)% (2)% Industrial & Specialty (5)% 2% (3)% —% —% (3)% Total
Slide 15: Non-GAAP Definitions
Non-GAAP Definitions Adjusted Earnings Per Share (EPS): Adjusted EPS is a key metric used by management to measure operating performance and trends. In particular, the exclusion of certain expenses in calculating adjusted EPS facilitates operating performance comparisons on a period-to-period basis.