Mativ Holdings, Inc. · NYSE:MATV
Mativ — Q3 2022 Earnings Presentation
19 slides from Mativ's earnings presentation, Nov 10, 2022
Slide 1: Mativ 3Q 2022 Earnings Release Presentation
Mativ 3Q 2022 Earnings Release Presentation 1 Mativ 3Q 2022 Earnings Release Presentation
Slide 2: Forward Looking Statements, Non-GAAP Disclosure, & Definitions
Forward Looking Statements, Non-GAAP Disclosure, & Definitions This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws that are subject to the safe harbor created by such laws and other le
Slide 3: Forward Looking Statements, Non-GAAP Disclosure, & Definitions
Forward Looking Statements, Non-GAAP Disclosure, & Definitions Combined Legacy Financial Information Due to the significance of the Neenah merger and the resulting change in our reportable segments, Mativ is providing the supplemental combined legacy financial information set forth in the tables bel
Slide 4: Strong Adj. Operating Profit Growth with Positive Price/Cost Dynamics
Strong Adj. Operating Profit Growth with Positive Price/Cost Dynamics Organic sales growth of 12% ex-currency Comparable adj. operating profit up 20% Continued positive pricing actions Executing on early-stage synergies; likely to exceed year-end $20 million run-rate goal, remain confident i
Slide 5: Advanced Technical Materials (ATM)
Advanced Technical Materials (ATM) Business Highlights Organic sales up 6%, or 12% ex-currency Adjusted OP margin expansion of 180 bps on comparable basis with favorable price/cost dynamics Release liners, protective solutions, and filtration led portfolio performance Cost relief on some res
Slide 6: Fiber Based Solutions (FBS)
Fiber Based Solutions (FBS) Business Highlights Organic sales up 7%, or 12% ex-currency Very strong margin expansion in packaging and specialty papers; overall favorable price/cost dynamics Strong pricing actions, momentum in several packaging and specialty papers product lines Pulp costs st
Slide 7: 3Q:22 Results Overview
3Q:22 Results Overview $ millions 3Q:22 Comments ATM Sales 426.1 Up 12% constant currency organic, or up 6% organic including negative currency FBS Sales 248.0 Up 12% constant currency organic, or up 7% organic including negative currency Total Sales 674.1 Up 12% constant currency organic, or up 7%
Slide 8: Strong Y/Y Profit Growth in 3Q And Expected In 4Q
Strong Y/Y Profit Growth in 3Q And Expected In 4Q Originally projected $210 to $230 million of Adjusted EBITDA in 2H:22 Macro demand softening and negative currency trends since mid-year would likely result in EBITDA near low-end of range ≈ $200 million a probable outcome from those factors al
Slide 9: Investment Highlights
Investment Highlights New beginning. Tremendous opportunity. Leadership Positions Material Sciences In attractive global market Extensive expertise with deep categories moats for defensibility Growth Potential Synergies Multiple drivers support positive Clear pathway to margin expansion, outlook hig
Slide 10: Appendix
Appendix 10 Mativ 3Q 2022 Earnings Release Presentation
Slide 11: Non-GAAP Reconciliation: Segment Reporting
Non-GAAP Reconciliation: Segment Reporting NOTE RE: SEGMENT REPORTING & COMPARABILITY Effective July 6, 2022, in connection with the close of the Neenah merger, Mativ has two reportable segments for financial reporting purposes: Advanced Technical Materials ("ATM") and Fiber-Based Solutions ("FBS").
Slide 12: Non-GAAP Reconciliation: Segment Reporting (cont.)
Non-GAAP Reconciliation: Segment Reporting (cont.) Non-GAAP Adjustm ents to Operating Profit Three Months Ended Nine Months Ended Septem ber 30, Septem ber 30, 2022 2021 2022 2021 ATM - Restructuring, impairment and other expenses $2.2 $— $16.5 $— ATM - Purchase accounting adjustments 16.1 11.3 38.3
Slide 13: Non-GAAP Reconciliation: Segment Reporting (cont.)
Non-GAAP Reconciliation: Segment Reporting (cont.) Non-GAAP Adjustm ents to Adjusted Operating Profit Three Months Ended Nine Months Ended Septem ber 30, Septem ber 30, 2022 2021 2022 2021 ATM - Depreciation and Stock-based compensation $12.4 $7.2 $27.9 $18.5 FBS - Depreciation and Stock-based compe
Slide 14: Non-GAAP Reconciliation: Combined Legacy Results
Non-GAAP Reconciliation: Combined Legacy Results Three Months Ended Three Months Ended Septem ber 30, 2021 Septem ber 30, 2022 Legacy Neenah Mativ Com bined for Legacy Neenah Adjustm ents Legacy SWM Mativ Adjusted Com parison Advanced Technical Materials (ATM) (1) Net Sales $172.7 ($17.4) $155.3 $26
Slide 15: Non-GAAP Reconciliation: Combined Legacy Results (cont.)
Non-GAAP Reconciliation: Combined Legacy Results (cont.) Three Months Ended Three Months Ended Septem ber 30, 2021 Septem ber 30, 2022 Legacy Neenah Mativ Com bined for Legacy Neenah Adjustm ents Legacy SWM Mativ Adjusted Com parison Corporate Unallocated GAAP Operating Loss ($5.0) ($3.6) ($8.6) ($1
Slide 16: Non-GAAP Reconciliation: Sales Results
Non-GAAP Reconciliation: Sales Results Non-GAAP Reconciliation of Organic Net Sales Growth Advanced Fiber-Based Consolidated Technical Materials Solutions Mativ SWM 3Q:21 Reported Net Sales $260.1 $123.5 $383.6 Neenah 3Q:21 Reported Net Sales (1) 155.3 112.6 267.9 Mativ 3Q:21 Reported Net Sales 415.
Slide 17: Non-GAAP Reconciliation: Consolidated Results
Non-GAAP Reconciliation: Consolidated Results RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DATA (in millions, except per share amounts) Thre e M onths Ende d Se pte m be r Nine M onths Ende d Se pte m be r 30, 30, 2022 2021 2022 2021 Operating prof it/(loss) ($13.9) $23.0 $24.5 $72
Slide 18: Non-GAAP Reconciliation: Consolidated Results (cont.)
Non-GAAP Reconciliation: Consolidated Results (cont.) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DATA (in millions, except per share amounts) Three Months Ended Septem ber Nine Months Ended Septem ber 30, 30, 2022 2021 2022 2021 Earnings/(loss) per share - diluted ($0.43) $0.38 (
Slide 19: Non-GAAP Reconciliation: Consolidated Results (cont.)
Non-GAAP Reconciliation: Consolidated Results (cont.) Three Months Ended Septem ber Nine Months Ended Septem ber 30, 30, 2022 2021 2022 2021 Net income/(loss) ($22.5) $12.2 ($9.1) $35.6 Plus: Interest expense on debt 23.8 15.3 59.4 35.8 Plus: Interest income on Brazil tax assessments/settlements — —