Koppers Holdings Inc. · NYSE:KOP

Koppers — Investor Presentation (December 2016)

27 slides from Koppers's investor presentation, Dec 14, 2016

  1. Slide 1: Investor Presentation December 2016

    Exhibit 99.1 Investor Presentation December 2016

  2. Slide 2: Forward Looking Statement

    Forward Looking Statement Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may include, but are not limited to, statements about sales levels, acquisitions, restructuring, profitability and anticip

  3. Slide 3: Management Representatives

    Leroy M. Ball President and Chief Executive Officer Michael J. Zugay Chief Financial Officer Management Representatives

  4. Slide 4: Strategic Overview

    Strategic Overview

  5. Slide 5: Global leader in oil and water-borne preservatives

    • Global leader in oil and water-borne preservatives serving many market applications for treated wood • Successfully transitioning from a business built on producing carbon pitch to serve global aluminum industry into an enterprise centered on the preservation and enhancement of wood • Knowledge of

  6. Slide 6: We are in the "5th inning" of our transformation

    We are in the “5 th inning” of our transformation Strategic Initiative Description Expected Completion De-emphasize CMC Business • Will have ceased distillation or sold 7 of 11 facilities by YE 2016 • CMC revenues decreased from two-thirds to less than ~30% of consolidated sales • Expect to improve

  7. Slide 7: Products & Services by segment, YTD 9/30/16

    YTD 9/30/16 Net Sales Products & Services Carbon Materials and Chemicals (CMC) Performance Chemicals (PC) Railroad and Utility Products and Services (RUPS) YTD 9/30/16 LTM 9/30/16 12/31/15 YTD 9/30/16 EBITDA %* Key Market Drivers Market Growth Market Position Integrated global provider of treated wo

  8. Slide 8: Transforming Our Business Profile; Maximizing Our Profitability

    CMC 54% RUPS 38% PC 8% CMC 38% RUPS 40% PC 22% CMC 32% RUPS 42% PC 26% Transforming Our Business Profile; Maximizing Our Profitability 12/31/14 12/31/15 LTM 9/30/16 Net Sales $1,555M $1,627M $1,467M EBITDA* Margin* $116M 7.5% $150M 9.2% $166M 11.3% Net Leverage 6.9x 4.7x 4.1x Business Segment Revenu

  9. Slide 9: Zero Is Possible! Safety Statistics

    ZERO IS POSSIBLE ! Safety Statistics YTD 9/30/16 2015 2014 2013 2012 Zero Harm Focus Driving Shareholder Value Achieved certification in American Chemistry Council’s Responsible Care ® initiative across 18 global facilities and corporate headquarters Received awards from BNSF Railway, Canadian Natio

  10. Slide 10: Global Presence; Serving Customer Demand

    Facilities well-positioned to capture worldwide demand growth Europe 2 facilities North America 15 facilities China 2 facilities Australasia 9 facilities 2015 Sales by Region South America 2 facilities (a) 2015 Sales by End Market North America 61% Europe 9% Australasia 17% Emerging Markets 13% Carb

  11. Slide 11: Delivering Improved Profitability

    6.8% 10.7% 11.2% 7.9% 9.6% 13.7% 13.7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Quarterly EBITDA Margin* Delivering Improved Profitability Q1-Q3 Avg: 9.6% Q1-Q3 Avg: 12.4% * On an adjusted basis

  12. Slide 12: Total Shareholder Return – LTM

    Koppers: 117.2% Strategic Transformation Driving Shareholder Value Enhancement S&P SmallCap 600: 24.7% S&P SmallCap 600 Industrials: 28.0% Total Shareholder Return – LTM (1) (1) Total Shareholder Return includes stock appreciation and common dividends received from December 8, 2015 to December 8, 20

  13. Slide 13: Debt & Liquidity

    Debt & Liquidity

  14. Slide 14: 2016 Debt Repayment: $85M Target

    2016 Debt Repayment: $85M Target ($ in millions) $735 $650 N/A * $168 $23 $47 $46 $13 $500 $550 $600 $650 $700 $750 Total debt 1/1/2016 TKK loan repayment Adjusted EBITDA Working capital and other Capex Cash interest Cash taxes Total debt 12/31/2016 2016 Estimated Debt Repayment * Deferred until 201

  15. Slide 15: Koppers

    ul KOPPERS.

  16. Slide 16: Financial Highlights

    Financial Highlights

  17. Slide 17: Q3 Sales: Reflect Strategic Shift to De-emphasize CMC

    Q3 Sales: Reflect Strategic Shift to De-emphasize CMC; Softening Railroad Market ($ in millions) $434 $371 $14 ($32) ($45) $350 $370 $390 $410 $430 $450 Q3 2015 PC RUPS CMC Q3 2016 Sales Bridge Q3 2016

  18. Slide 18: Q3 EBITDA of $51M; PC Delivered Strong Profitability

    Q3 EBITDA* of $51M; PC Delivered Strong Profitability ($ in millions) $48 $51 $8 ($5) $1 ($1) $25 $35 $45 $55 $65 Q3 2015 PC RUPS CMC CORP Q3 2016 EBITDA* Bridge Q3 2016 * On an adjusted basis

  19. Slide 19: Koppers

    ul KOPPERS.

  20. Slide 20: Sales Forecast of ~$1.4B

    Sales Forecast of ~$1.4B ($ in millions) $1,627 ~ $1,4B $50-$60 ($80-$90) ($180-$200) $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 2015 ACTUAL PC RUPS CMC 2016 FORECAST Consolidated Sales Bridge 2016 Forecast

  21. Slide 21: EBITDA Forecast: PC

    EBITDA* Forecast: PC Net Improvement of $19M ($ in millions) $61 $80 $19 $50 $60 $70 $80 2015 ACTUAL Organic Growth/ Cost Savings 2016 FORECAST PC EBITDA* Bridge 2016 Forecast * On an adjusted basis

  22. Slide 22: EBITDA Forecast: RUPS

    EBITDA* Forecast: RUPS Expect Lower Treating Volumes; Commercial Softening ($ in millions) $84 ($3) $4 $71-$74 ($11-$14) $50 $60 $70 $80 $90 2015 ACTUAL Treating Volumes Rail Joints & Utility Poles Cost Savings 2016 FORECAST RUPS EBITDA* Bridge 2016 Forecast * On an adjusted basis

  23. Slide 23: 2016 EBITDA Forecast: CMC

    ($ in millions) 2016 EBITDA* Forecast: CMC Increase of $10-$11M $9 $5 $15-$16 ($10) $19-$20 $0 $10 $20 $30 2015 ACTUAL China/Australia Restructuring Savings Volume/Price/RM Savings 2016 FORECAST CMC EBITDA* Bridge 2016 Forecast * On an adjusted basis

  24. Slide 24: EBITDA Forecast: Consolidated EBITDA of $168M-$172M

    EBITDA Forecast: Consolidated EBITDA* of $168M-$172M ($ in millions) EBITDA Margin* ~12% * On an adjusted basis $150 $168-$172 ~ $180 $19 ($10-$13) $10-$11 $2 $120 $130 $140 $150 $160 $170 2015 ACTUAL PC RUPS CMC CORP 2016 FORECAST 2017 FORECAST Consolidated EBITDA Bridge 2016-17 Forecast

  25. Slide 25: Adjusted EBITDA Reconciliation – LTM 9/30/16

    Adjusted EBITDA Reconciliation – LTM 9/30/16 ($ in millions) LTM 9/30/2016 Net Sales $1,467 Net Income (loss) (67) Interest expense including refinancing Depreciation and amortization Income tax provision (4) Discontinued Operations (1) EBITDA $35 Adjustments to EBITDA: Treating plant closure Net ga

  26. Slide 26: Koppers World Headquarters Pittsburgh, Pennsylvania, USA

    KOPPERS World Headquarters Pittsburgh, Pennsylvania, USA Koppers Holdings Inc. 436 Seventh Avenue Pittsburgh, PA 15219-1800 Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds. Our

  27. Slide 27: F performance or ounsfioreRolders

    1 F performance or ounsfioreRolders Biss i Ry AR ASE ee WS OA SRE eT SENS

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