Slide 1: First Quarter 2023 Earnings Presentation
First 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: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results Constant Currency* Organic* ($ in millions) Q1 2023 Q1 2022 YoY YoY YoY Net Sales $574 $680 (16)% (11)% (7)% Electronics 340 442 (23)% (19)% (11)% Industrial & Specialty 235 239 (2)% 3% 2% GAAP Diluted EPS $0.18 $0.23 Adj. EBITDA* $112 $145 (22)% (18)% % margin 1
Slide 4: First Quarter 2023 Segment Details
First Quarter 2023 Segment Details Electronics Net Sales Organic Key Drivers ($ in millions) Growth* Assembly $174 (5)% China and mobile weakness impacting demand for core SMT products Circuitry $107 (17)% Mobile phone and consumer electronics market weakness Semiconductor $59 (19)% Continued low se
Slide 5: Balance Sheet and Cash Flow Considerations
Balance Sheet and Cash Flow Considerations Key Cash Flow Items Balance Sheet Management • Q1 2023 free cash flow* of $45 million • Net debt to adj. EBITDA ratio* of 3.3x on a LTM basis as of March 31, 2023 o Stronger conversion than prior two years due to • Capital structure remains fully fixed-rate
Slide 6: Full Year 2023 Financial Guidance
Full Year 2023 Financial Guidance Updated as of April 2023 Low end of prior range of FY Adj. EBITDA* $510 million to $530 million at current FX rates FY Adjusted EPS* Approximately $1.40 FY Free Cash Flow* $275 million ▪ Expect Q2 Adj. EBITDA* of approximately $120 million Additional ▪ FX headwind o
Slide 7: Appendix
Appendix Enabling Technology. Growing Sustainably.
Slide 8: Reconciliation to Adjusted Share Counts
Reconciliation to Adjusted Share Counts (amounts in millions) Q1 2023 Q1 2022 Basic common shares outstanding 241 248 Number of shares issuable upon vesting of granted Equity Awards 1 3 2 Adjusted common shares outstanding 244 250 Note: Totals may not sum due to rounding 1. Equity awards with target
Slide 9: Net Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA
Net Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA ($ millions) Q1 2023 Q1 2022 Net income attributable to common stockholders $43 $56 Add (subtract): Net income attributable to non-controlling interests 0 0 Income tax expense 17 20 Interest expense, net 12 14 Depreciation
Slide 10: GAAP Net Income Reconciliation to Adjusted Diluted EPS
GAAP Net Income Reconciliation to Adjusted Diluted EPS ($ millions, except per share amounts) Q1 2023 Q1 2022 Net income attributable to common stockholders $43 $56 Reversal of amortization expense 30 31 Adjustment to reverse incremental depreciation expense from acquisitions 0 1 Inventory step-up —
Slide 11: Net Debt to Adj. EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis
Net Debt to Adj. EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis ($ millions) LTM Q1 QTD 2023 Q2 2022 Q3 2022 Q4 2022 2023 Net income attributable to common stockholders $43 $65 $53 $13 $174 Add (subtract): Net income attributable to non-controlling interests 0 0 0 0 1 Income from disco
Slide 12: Organic Net Sales Growth Reconciliation
Organic Net Sales Growth Reconciliation Three Months Ended March 31, 2023 Change in Pass- Reported Net Constant Organic Net Sales Impact of Currency Through Metals Acquisitions Sales Growth Currency Growth Pricing Electronics (23)% 4% (19)% 8% —% (11)% Industrial & Specialty (2)% 5% 3% —% (1)% 2% To
Slide 13: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ millions) Q1 2023 Q1 2022 Cash flows from operating activities $54 ($6) Capital expenditures (9) (10) Proceeds from disposal of property, plant and equipment 1 — Free cash flows $45 ($15) Note: Totals may not sum due to rounding 13
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 as management believes the exclusion of certain expenses in calculating adjusted EPS facilitates operating performance comparisons on a period-to-period