Slide 1: Fourth Quarter and Full Year 2020 Earnings
Fourth Quarter and Full Year 2020 Earnings January 28, 2021 © 2021 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 – Fourth Quarter and Full Year 2020
Key Takeaways – Fourth Quarter and Full Year 2020 Performance & Outlook Balance Sheet Strategic Progress Earnings and free cash flow1 above Operating from a position of strength; Deploy Exiting standard stainless products, Redeploying expectations; Stabilized aerospace demand capital for long-term g
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: Strategic Transformation Progress
Strategic Transformation Progress Tracking the leading indicators of success Streamline Footprint Improved Product Mix Target Target 100% by 5 by YE YE 2021 2021 83% Metric: facilities closed within Metric: high value products % sales AA&S segment within AA&S segment Substantial Segment Margin Impro
Slide 6: ATI Strategic Markets & Diversified Applications
ATI Strategic Markets & Diversified Applications Q4 2020 YoY Near-term Market Comments Revenue % Change Market Outlook • Demand stabilizing in Q4; increased forgings sales offset by continued destocking from specialty materials’ customers Jet Engine $82M (72%) • Next generation: ~35% of Q4 jet engin
Slide 7: Fourth Quarter and Full Year 2020 Financial Results
Fourth Quarter and Full Year 2020 Financial Results Steep revenue declines resulting from global $M (excl. EPS) Q4 2020 Q4 2019 % Chg. FY 2020 FY 2019 % Chg. pandemic-related demand destruction, full year results moderated by strong Q1 demand Revenue $658 $1,019 (35%) $2,982 $4,123 (28%) AA&S: Aer
Slide 8: Cash and Liquidity Update
Cash and Liquidity Update Debt Maturity Schedule Balance Sheet and Cash Flow Net Debt/Adj. EBITDA Ratio: 5.0x (1) Cash and liquidity Liquidity >$950 million, including $646 million cash on hand at YE $600 Positive cash from operations in 2020 $500 Reduced inventory by $145 million Free Cash
Slide 9: First Quarter and Full Year 2021 Outlook
First Quarter and Full Year 2021 Outlook First Quarter 2021 Key Assumptions Earnings Drivers EPS Aerospace demand stabilization in H1’21; modest growth in H2’21 Narrow body production increases across 2021 ($0.23) – ($0.30) Continued airframe destocking across 2021 Ongoing significant global
Slide 10: Additional Materials Appendix
Additional Materials Appendix
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures © 2021 ATI. All rights reserved. 11
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures © 2021 ATI. All rights reserved. 12
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures © 2021 ATI. All rights reserved. 13
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures © 2021 ATI. All rights reserved. 14