Slide 1: Third Quarter 2020 Earnings Presentation
Third Quarter 2020 Earnings Presentation October 1 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: Third Quarter 2020 Financial Results
Third Quarter 2020 Financial Results Constant ▪ Organic net sales* declined 2%, as COVID-19 Currency* Organic* continued to weigh on global economic conditions ($ in millions) Q3 2020 Q3 2019 YoY YoY YoY ▪ Strong sequential improvement, particularly in Net Sales $478 $465 3% 2% (2)% automotive end m
Slide 4: Third Quarter 2020 Segment Details
Third Quarter 2020 Segment Details Market Commentary Electronics Net Sales ($ in millions) ▪ Assembly: strong sequential recovery primarily due to 3% 307 increased production in automotive markets 7% 1% 280 1% ▪ Circuitry: modest decline due to prior-year strength in (1)% high-end mobile markets in
Slide 5: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Key Cash Flow Items Balance Sheet Management ▪ Q3 2020 free cash flow* of $63 million; YTD Q3 2020 free ▪ Net debt to adj. EBITDA ratio* of 3.2x on a LTM basis as of cash flow* of $174 million Sept 30, 2020 ▪ Modest working capital build in Q3 reflecting higher sequential
Slide 6: Near Term Financial Outlook
Near Term Financial Outlook ▪ Expect typical seasonality to drive sequential net sales declines, albeit less than normal due to ongoing recovery in key end-markets o Automotive and mobile phone units outlook remain negative relative to prior year o Net sales expected to benefit from Kester and DMP a
Slide 7: Capital Allocation Considerations
Capital Allocation Considerations Approximate Conversion of Adj. EBITDA* to Free Cash Flow* Expected Uses of Free Cash Flow* Net Working Capital ~5% Capex ~7% Cash Interest ~15% Pursue Opportunistic +$150 million Acquisitions and available to Cash Taxes ~18% Share Repurchases compound Adj. EBITDA* e
Slide 8: Appendix
Appendix 8
Slide 9: Reconciliation to Adjusted Share Counts
Reconciliation to Adjusted Share Counts (amounts in millions) Q3 2020 Q3 2019 Common shares outstanding 249 251 Number of shares issuable upon conversion of Series A Preferred Stock — 2 Number of shares issuable upon vesting of granted Equity Awards1 3 3 Adjusted common shares outstanding 252 256 No
Slide 10: Net Income (Loss) Attributable to Common Stockholders Reconciliation to Adj. EBITDA
Net Income (Loss) Attributable to Common Stockholders Reconciliation to Adj. EBITDA ($ millions) Q3 2020 Q3 2019 Net income (loss) attributable to common stockholders $36 $(7) Add (subtract): Loss from discontinued operations, net of tax 0 1 Income tax (benefit) expense (47) 57 Interest expense, net
Slide 11: Net Debt to Adj. EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis
Net Debt to Adj. EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis ($ millions) YTD 2020 Q4 2019 LTM Q3 2020 Net income attributable to common stockholders $46 $74 $120 Add (subtract): Net income attributable to the non-controlling interests — 0 0 Loss (income) from discontinued operation
Slide 12: GAAP Net Income (Loss) Reconciliation to Adjusted Diluted EPS
GAAP Net Income (Loss) Reconciliation to Adjusted Diluted EPS ($ millions, except per share amounts) Q3 2020 Q3 2019 Net income (loss) attributable to common stockholders $36 $(7) Net loss from discontinued operations attributable to common stockholders (0) (1) Net income (loss) from continuing oper
Slide 13: Organic Net Sales Growth Reconciliation
Organic Net Sales Growth Reconciliation Three Months Ended September 30, 2020 Change in Pass- Reported Net Impact of Constant Organic Net Sales Through Metals Acquisitions Sales Growth Currency Currency Growth Pricing Electronics 10% (1)% 9% (2)% (5)% 2% Industrial & Specialty (8)% 0% (7)% —% (2)% (
Slide 14: 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.