Tredegar Corporation · NYSE:TG
Tredegar — Investor Presentation (November 2013)
57 slides from Tredegar's investor presentation, Nov 18, 2013
Slide 1: Investor Presentation November 2013
Exhibit 99.1 Tredegar ae) Investor Presentation November 2013
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: Diversified, Global Manufacturer: Film Products, Aluminum Extrusions
Diversified, Global Manufacturer: Film Products, Aluminum Extrusions > Superior manufacturing capabilities and track record = Integrated manufacturing model with shared best practices and processes = Leadership positions in core markets and strong long-term relationships with market-leading customer
Slide 4: Tredegar at a Glance
Tredegar at a Glance > Createdin 1989: Ethyl Corp. (NewMarket Corp.) spin-off > Evolved from holding company to premier manufacturing operator > NYSE: TG > Superior manufacturing capabilities in plastic films and aluminum > Market Cap: $808MM extrusions industries (as of Nov. a 2013) >» Leadership p
Slide 5: Business Segments Overview
Tredegar Corporation Business Segments Overview > Film Products + Agloballeaderin the plastic films industry, manufacturing plastic films, elastics and laminate materials primarily for feminine hygiene, diaper, surface protection and flexible packaging applications + Acquisition of Terphane Holdings
Slide 6: Tredegar Business Profile
Tredegar Business Profile ‘$932MM in net sales‘ in LTM September 2013 $932MM in net sales‘ in LTM September 2013 4 Net sales represent sales less freight. See Note 1 in Supplemental Financial Information for more information on this nomGAAP financial measure. Global footpri ‘Bloomfield, NY Lake Zuri
Slide 7: Strategy and Key Market Drivers
Strategy and Key Market Drivers Executing our Growth Strategy Strategy: > Leverage core manufacturing capabilities to accelerate profitable growth > Increase marketshare while diversifying customer base and expanding product offerings > Pursue adjacent acquisitions as part of growth and diversificat
Slide 8: Investing in Attractive Markets for Long-Term Growth
Investing in Attractive Markets for Long-Term Growth Strategic Acquisitions and Organic Investments: Committed $390MM from 20101 Strategic Acquisitions: $245MM + Flexible packaging acquisition broadened Films Products’ product offering and strengthened presence in Latin America (2011) + AACOAacauisi
Slide 9: Film Products Overview
Tredegar ae) Film Products Overview
Slide 10: Overview of Film Products
Overview of Film Products Tredegar Film Products manufactures plastic films, elastics and laminate materials Manufacturing in the United States, The Netherlands, Hungary, China, Brazil and India >» Terphane acquisition further expanded films business in Latin America and the United States >» Tredega
Slide 11: Film Products: Market Dynamics and Strategic Initiatives
10 Film Products Market Dynamics and Strategic Initiatives > Consumer buying trends indicate a shiftto value- segment products in developed markets, affecting personal care > Low growth rate for diapers and feminine hygiene products in developed markets > Growth for personal care products occurring
Slide 12: Film Products: Focus on Research and Development
" Film Products Focus on Research and Development » Strategic Priority: To improve the pace and quality of our innovation pipeline » Recent Product Development Activity = High performance elastics for baby diaper side panels and ears = Upgrades for adult incontinence products = Forcefield Pearl™ — n
Slide 13: Film Products: Sales by Region and Product Category
Film Products Sales by Region and Product Category Net Sales‘ by Region Net Sales' by Major Product Category ($622MM Net Sales in LTM September 2013) =North America = Europe ‘=PersonalCare-Feminine Hygiene sPersonalCare-Baby Diaper Asia =Latin America ‘=PersonalCare-Adult Incontinence Flexible Packa
Slide 14: Film Products: Net Sales & Adjusted EBITDA
Film Products Net Sales' & Adjusted EBI mmAdjusted EBITDA —NetSales $621 $07 $101 gag $109 ; : | 2009 2010 2011 2012 2012 2013, Annual 3QYTD 2009-2012 o BrightView startup acquired in 2010 (Operating Losses $3-4MM annually) o Terphane acquisition added netsales of $138MMin 2012 o Recovery of Surface
Slide 15: Investing in Attractive End Markets: Flexible Packaging
Investing in Attractive End Markets for Long-Term Growth Film Products - Committed $320MM From 2010 Flexible Packaging: expanding global capacity to benefit from growth in emerging markets > $264MMcommitted > Marketdynamics = High-value specialty PET (polyethylene terephthalate) film offers technica
Slide 16: Investing in Attractive End Markets: Personal Care
Investing in Attractive End Markets for Long-Term Growth Film Products — Committed $320MM From 2010 Personal Care: expanding global capacity to benefit from growth in emerging markets > $16MM committed > Marketdynamics = Positive global market growth trends for absorbent products expected through 20
Slide 17: Investing in Attractive End Markets: Surface Protection
Investing in Attractive End Markets for Long-Term Growth Film Products — Committed $320MM From 2010 Surface Protection: expanding footprint/capacity to benefit from growth in Asia > $23MM committed > Marketdynamics = New technologies for high-end TVs, tablets and smartphones driving growth = Growth
Slide 18: Investing in Attractive End Markets: Specialty Lighting Films
v7 Investing in Attractive End Markets for Long-Term Growth Film Products — Committed $320MM From 2010 Specialty Lighting Films: developing broad product portfolio of engineered optics to serve the rapidly growing illumination market > $16MM committed, including February 3, 2010 acqui: ition of Brig
Slide 19: Bonnell Aluminum: Aluminum Extrusions Overview
Tredegar ae) Bonnell Aluminum: Aluminum Extrusions Overview
Slide 20: Overview of Bonnell Aluminum
Overview of Bonnell Aluminum > Bonnellis among the leading manufacturers of custom aluminum extrusions in North America > FourU.S. manufacturing locations in Tennessee, Georgia, Indiana and Michigan > 2012 AACOA acquisition expanded addressable market opportunities = Expanded customer base in new ma
Slide 21: Bonnell Aluminum: Market Dynamics and Strategic Initiatives
Bonnell Aluminum Market Dynamics and Strategic Initi ti Market Dynamics Strategic Initiatives >» Sensitivity to economic conditions in end- > Integrate AACOA acquisition and execute use markets, particularly in construction on opportunities for growth outside of building and construction > Extrusion
Slide 22: Bonnell Aluminum: Diversified Customer Base
Bonnell Aluminum Diversified Customer Base >» Aluminum extrusions sold to fabricators and distributors through a dedicated sales force > Bonnell targets complex, customized, service-intensive business in order to differentiate itself from high volume, standard extrusion applications >» Large, divers
Slide 23: Bonnell Aluminum: Volume by End Market
22 Bonnell Aluminum Volume by End Market (143MM pounds in LTM September 2013) Volume by End Market 4% T% ™Building & Construction, Nonresidential ™Building & Construction, Residential m Transportation (includes automotive) ™Consumer Durables Distribution = Machinery and Equipment Electrical Acquisit
Slide 24: Bonnell Aluminum: Net Sales & Adjusted EBITDA
Bonnell Aluminum Net Sales' & Adjusted EBI mmAdjustedEBITDA —NetSales s2qo $245 $236 $200 $178 $173 $19 $17 $12 $13 $5 mee | — i 2009-2010 201120122012 2013 Annual 3QYTD 2009-2012 o Lowsingle-digit nonresidential building and construction growth o Lowerbreakeven through productivity gains and Kentla
Slide 25: Investing in Attractive End Markets: Aluminum Extrusions
Investing in Attractive End Markets for Long-Term Growth Aluminum Extrusions - Committed $70MM From 2010 Bonnell Aluminum: Positioned to benefit from expanded manufacturing capabilities, market diversification and strengthening of the U.S. nonresidential building and construction market > Marketdyna
Slide 26: Financial Results
Tredegar ae) Financial Results
Slide 27: Net Sales & EPS
Tredegar Corporation Net Sales' & EPS mmm EPS from Ongoing Ops 2009-2012 ited Net Sales up 35%, EPS from Ongoing Operations up ~ 40% © Accretive acquisitions of Terphane and AACOA © Recovery of Surface Protection and Personal Care films in the second half of 2012 © Productivity and cost reductions a
Slide 28: Financial Summary
a Financial Summary Annual Historical Financials agustedeSITOA” (HM) $1,200 $150 $932 $857 $104 $104 $900 $776 $90 $92 9633 8720 $100) $84 $600 $50 $300 $0 $0 2009 2010 2011 +2012 ~LTM 2009 2010 2011 2012 ~LTM Earnings Per Share from Ongoing Ops’ ($) Adjusted EBITDA less CapEx’ ($MM) $1.50 $100 wee
Slide 29: Select Financial Performance
Select Financial Performance Segment Adjusted EBITD. Ongoing Operations ($MM) 5 Bs 106 408 a Film Products reflects incusion of Terphane subsequentto the acquistion date of 10/24/11 and Bright View subsequentto the acquisition date of2/3/10, and Bonnell Aluminum reflects inclusion ‘of AACOAsubsequen
Slide 30: Financial Summary — Film Products
29 Financial Summary — Film Products Annual Historical Financials Net Sales’ ($MM) Adjusted EBITDA’ ($MM) 2009 «2010 §=62011 2012, LTM 2009 «2010 «2011 = 2012 $800 $120 $109 $111 $612 $622 gor S101 596 $600 | 455 S021 $536 8 $400 $40 $200 $0 $0 LT™M Volume (Ibs. MM) Adj d EBITDA less CapEx’ ($MM) 20
Slide 31: Film Products: Net Sales and Operating Profit from Ongoing Operations
Film Products Net Sales and Operating Profit from Ongoing Operations ($MM) $612 $622 $523 $521 $536 $455 ~ - - : 2008 2009 2010 2011 2012 LT™ mmmOperating Profit from Ongoing Operations? ——Net Sales‘ Reflects inclusion of Terphane subsequentto acquistion date of 10/24/11 and Bright View subsequentto
Slide 32: Financial Summary — Bonnell Aluminum
31 Financial Summary — Bonnell Aluminum Annual Historical Financials Net Sales’ ($MM) Adjusted EBITDA ($MM) $400 $30 $309 $23 $300 $200 $240 $245 $20 $17 $200 | $178 $12 10 $100 : $5 $1 $0 $0 2009 «2010 42011 2012 LT 2009 «2010 2011 2012 LT™ Volume (Ibs. MM) Adjusted EBITDA less CapEx ($MM) 150 2009
Slide 33: Bonnell Aluminum: Net Sales and Operating Profit from Ongoing Operations
Bonnell Aluminum Net Sales and Operating Profit from Ongoing Operations $240 $245, $200 $178 $14 $10 2008 2009 2010 2011 2012 LTM "=Operating Profitfrom Ongoing Operations © —NetSales' Reflects inclusion of AACOA subs equentto acquisition date of 10/1/12. ‘Net sales represent sales less freight. See
Slide 34: Debt Capital Structure and Liquidity Measures
Tredegar Corporation Debt Capital Structure and Liquidity Measures bis Sentember 30,2013 Total Debt $134.0 Cash and Cash Equivalents $42.6 Net Debt’ $914 ‘Shareholders’ Equity $376.7 Total Indebtedness-to-Adjusted EBITDA ? 1.30x Net Debt-to-Capitalization? 20% + See Note 4 in Supplemental Financial
Slide 35: Financial Highlights: Capital Expenditures
Tredegar Corporation Financial Highlights: Capital Expenditures Capital Expenditures 2009 2010 2011 2012 aaron Film Products $11.5 $15.8 $13.1 $30.5 $68.0 Bonnell Aluminum 22.5 43 Zi 23 18.0 Corporate 0.1 0.2 0.1 0.4 nla Total $34.1 $20.4 $15.9 $33.3 $86.0 % Net Sales’ 5.3% 28% 2.0% 3.8% Projections
Slide 36: Committed to Increasing Shareholder Value
Committed to Increasing Shareholder Value Performance Targets’ 2014 2016* Film Products + Volume Growth ~1% ~5% + Surface Protection: New technologies for high-end TVs, tablets and smartphones + Flexible Packaging: New capacity begins to ramp up in the first half of 2014 + Personal Care: Growth (pri
Slide 37: Tredegar is Well Positioned for Future Success
36 Tredegar is Well Positioned for Future Success Strategy vvvy Leverage core manufacturing capabilities to accelerate profitable growth Increase market share while diversifying customer base and expanding product offerings Pursue adjacent acquisitions as part of growth and diversification strategy
Slide 38: Senior Management Team
Senior Management Team i da Nancy M. Taylor Mary Jane Hellyar Kevin A. O'Leary President and President, Tredegar Film Products Vice President, Chief Executive Officer and Corporate Vice President Chief Financial Officer and Treasurer W. Brook Hamilton A. Brent King President, Vice President, ‘The Wi
Slide 39: Supplemental End Market Information
Tredegar ae) Supplemental End Market Information
Slide 40: Personal Care
39 Personal Care » Positive demographics and market trends driving demand for absorbent products in core end markets = Baby diapers: driven by demand from developing and emerging markets = Feminine hygiene: driven by demand from developing and underdeveloped markets and penetration growth = Adultinc
Slide 41: Personal Care Products
Personal Care Products Current Products > Hygiene topsheets > Acquisition distribution/transfer/ surge layers » Elastic closure systems > Waistbands > Garment-like elastic side panels Technology » Elastic films and laminate materials ‘Tredegar ae 2
Slide 42: Surface Protection
a Surface Protection » Product, market and demographic trends driving demand in core end-markets = Flatpaneldisplays = $malldisplays (smartphones and tablets) = FlatPanelTVs: 100% penetration vs. Cathode Ray Tube TVs by 2015' = Advances in touch screen technology driving growth = Chinawill play larg
Slide 43: Surface Protection Products
Surface Protection Products Current Products >» Polyolefin-based cast films >» Customized adhesion films for smooth, matte, or structured surfaces Technologies / Capabilities >» Surface engineering expertise = Protection of various sensitive substrates » Industry-leading quality and process technolo
Slide 44: Flexible Packaging
Flexible Packaging > Emerging markets and packaging innovation driving demand in core food and consumer end- market > Terphane acquisition expanded addressable market and accelerated emerging market growth strategy = Leading manufacturer of specialized PET serving growing food industry in Brazil = G
Slide 45: Flexible Packaging Products
Flexible Packaging Products Current Products >» Flexible packaging for perishable and non-perishable foods >» Non-food flexible packaging; industrial applications Technology >» Specialized polyester (“PET”) films with properties such as heat resistance, strength, barrier protection and the ability t
Slide 46: Films for Other Markets — Engineered Optics
Films for Other Markets — Engineered Optics » Growth market supported by strong market adoption of LED lighting = Primary end market: illumination, appliances, automotive = LED market expected to grow over 30% annually from 2011 to 2016" » Building reputation as leading solution provider with broad
Slide 47: Engineered Optics Products
Engineered Optics Products Current Products >» Engineered optics: diffusers and reflectors Technologies >» Optical design > Photoreplication > Polymer formulation » Film extrusion ‘Tredegar CORPORATION, te
Slide 48: GAAP Reconciliations
Tredegar ae) GAAP Reconciliations
Slide 49: Supplemental Information
Supplemental Information Notes “Tredegar scquited Bright View Technologies Corporation on February 3 2010, and is operations were incorporated into Flm Products efiectve January 1, 2012. Prior year balances have ban raved to conform with the current year presentation. Film Products results include t
Slide 50: Supplemental Information
49 Supplemental Information Notes Notes (continued): Es Film Aluminum fern Products Extsions Tata ‘Gperatina pret (oss) from onacina oparaions SSS KOS BS Add back depreciation & amortization 362 92 a4 /Adiusted EBITDA before corporate ovetnead (a) 05 Be 37 Conporate overnesd z = goo ‘dusted EBITDA (
Slide 51: Supplemental Information
Supplemental Information Notes Mote s (continued): 2 umm. 200 ‘Cosraine oof las) fromenacina comalors Acs bax dearscicton & amatzaton ‘cited EBITDA before roars overhead (3h ea ovtheed “Adjusted EBITDA (6) Natsales (6) ‘Adjusted EBITDA marci 1(8)/(6) Canislexpenditres (d) ‘Adjusted EBITDA fess cosit
Slide 52: Supplemental Information
1 Supplemental Information Notes Motes (continued): a ‘The atertax afects of asses aesccated with plat shudovre, aes 2 impsmants and restructurings and gure or losses fom the sale of aes ts and ther tems (ich includes unvesized gars and less es for an investment sccounted fr under the fa value metho
Slide 53: Supplemental Information
Supplemental Information Notes Notes (continued): 4. 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 shown below (in millions) ‘Septem
Slide 54: Supplemental Information
Supplemental Information Notes Motes (continued): ©. Operating ptt fom ongoing operations is used by management to assess profitably. A reconciliation afoperating profit fom ongoing operations to net income s show below om Operating profit oss): 2008 20032010 ott zo sa019 (in hovssnds) Film Products
Slide 55: Supplemental Information
Supplemental Information Notes Notes (continued: 7. The pretax and aftertax effects oflosses associated with plant shutdowns, asset impaiments and restructurings and gains orlosses ffom the sale of ‘assets and other items (which includes unrealized gains and losses fr an imesiment accounted for unde
Slide 56: Supplemental Information
Supplemental Information Notes Motes (continued): 8. Retumon imested capital (ROIC)& defined by Tadege 9s Adjusted Net Income fom Ongoing Operations chided by erage Ines ted Capital where the inchidual components sre defined a fellows ‘Adjusted Net Income fom Ongoing Operations equals Income fom Ong
Slide 57: Tredegar
Tredegar ae) Investor Presentation November 2013