Slide 1: Second Quarter 2023 Earnings Presentation
Second Quarter 2023 Earnings Presentation Enabling Technology. Growing Sustainably.
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: Value Enhancing Investments in High-End Electronics
Value Enhancing Investments in High-End Electronics ViaForm® Distribution Rights & Kuprion $185M1 for global distribution $16M for leading-edge rights to ViaForm® electrochemical ActiveCopper™ capability and deposition products applications team ✓ Direct front-end-of-line engagement with ✓ Next-gene
Slide 4: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results Constant Currency* Organic* ($ in millions) Q2 2023 Q2 2022 YoY YoY YoY Net Sales $586 $677 (13)% (12)% (6)% Electronics 356 441 (19)% (17)% (9)% Industrial & Specialty 230 236 (2)% (1)% (2)% GAAP Diluted EPS $0.11 $0.25 Adj. EBITDA* $116 $140 (17)% (14)% % marg
Slide 5: Second Quarter 2023 Segment Details
Second Quarter 2023 Segment Details Electronics Net Sales Organic Key Drivers ($ in millions) Growth* Assembly $184 3% Increased demand for higher-reliability alloys in automotive Circuitry $103 (23)% Mobile phone and consumer electronics market weakness Semiconductor $69 (16)% Reduced utilization l
Slide 6: Balance Sheet and Cash Flow Considerations
Balance Sheet and Cash Flow Considerations Key Cash Flow Items Balance Sheet Management ▪ Q2 2023 free cash flow* of $67 million ▪ Net debt to adj. EBITDA ratio* of 3.8x on a LTM basis as of June 30, 2023 ▪ Working capital investment of $16M ▪ Net debt to adj. EBITDA ratio* of 3.7x1 including estima
Slide 7: Full Year 2023 Financial Guidance
Full Year 2023 Financial Guidance Updated as of July 2023 FY Adj. EBITDA* $490 million to $500 million FY Adjusted EPS* Approximately $1.30 FY Free Cash Flow* Approximately $265 million ▪ Expect Q3 2023 adj. EBITDA* of approximately $125 million, an increase of 8% vs Q2 2023 Additional ▪ Year-over-y
Slide 8: Appendix
Appendix Enabling Technology. Growing Sustainably.
Slide 9: Reconciliation to Adjusted Share Counts
Reconciliation to Adjusted Share Counts (amounts in millions) Q2 2023 Q2 2022 Basic common shares outstanding 242 246 Number of shares issuable upon vesting of granted Equity Awards 1 2 2 Adjusted common shares outstanding 244 248 Note: Totals may not sum due to rounding 1. Equity awards with target
Slide 10: Net Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA
Net Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA ($ millions) Q2 2023 Q2 2022 Net income attributable to common stockholders $30 $65 Add (subtract): Net (loss) income attributable to non-controlling interests (0) 0 Income from discontinued operations, net of tax (3) (2) I
Slide 11: GAAP Net Income Reconciliation to Adjusted Diluted EPS
GAAP Net Income Reconciliation to Adjusted Diluted EPS ($ millions, except per share amounts) Q2 2023 Q2 2022 Net income attributable to common stockholders $30 $65 Net income from discontinued operations attributable to common stockholders 3 2 Net income from continuing operations attributable to c
Slide 12: Net Debt to Adj. EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis
Net Debt to Adj. EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis ($ millions) LTM Q2 YTD 2023 Q3 2022 Q4 2022 2023 Net income attributable to common stockholders $73 $53 $13 $139 Add (subtract): Net (loss) income attributable to non-controlling interests (0) 0 0 0 Income from discontinu
Slide 13: Organic Net Sales Growth Reconciliation
Organic Net Sales Growth Reconciliation Three Months Ended June 30, 2023 Change in Pass- Reported Net Constant Organic Net Sales Impact of Currency Through Metals Acquisitions Sales Growth Currency Growth Pricing Electronics (19)% 2% (17)% 9% 0% (9)% Industrial & Specialty (2)% 1% (1)% —% 0% (2)% To
Slide 14: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ millions) Q2 2023 Q2 2022 Cash flows from operating activities $81 $74 Capital expenditures (14) (12) Proceeds from disposal of property, plant and equipment — 3 Free cash flow $67 $66 Note: Totals may not sum due to rounding 14
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 as management believes the exclusion of certain expenses in calculating adjusted EPS facilitates operating performance comparisons on a period-to-period