Tredegar Corporation · NYSE:TG
Tredegar — Investor Presentation (September 2013)
55 slides from Tredegar's investor presentation, Sep 12, 2013
Slide 1: Tredegar Investor Presentation September 2013
Tredegar Investor Presentation September 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 > Manufacturing is our foundation = Superior manufacturing capabilities and track record have allowed Tredegar to build leadership positions in core markets and strong long-term relationships with market-leading customers Integrate
Slide 4: Tredegar at a Glance
Tredegar at a Glance v Created in 1989: Ethyl Corp. (NewMarket Corp.) spin-off Evolved from holding company to premier manufacturing operator 2010 — 2013: significantly optimized operations Refocused company to drive profitable growth in core manufacturing businesses ~ Film Products sustomer relatio
Slide 5: Tredegar is Well-Positioned for Future Success
Tredegar is Well-Positioned for Future Success > Le > base and expanding BUGIUMME > Coninuo to cerve bones rom provausly executed statege seausivors > Growth for roducts ring in market and aging baby > Electfories and display markets expanding wth strong growth in tablet and smartphone NER CODE NEE
Slide 6: Tredegar Business Profile
‘Tredegar Tredegar Business Profile as Latin America 14% ‘Aluminum Noth Exsusions Flim Products a occa 20% 71% sod 1% Europe 1a ‘857MM in net salestin 2012 ‘$857 in not sales'in 2012 Global footprint ‘South America - Films © Fsi0 Paulo, Braz . Cabo de Santo Agostnho, Brazil ‘Tredegar ara
Slide 7: Acquisition & Investment Strategy
Acquisition & Investment Strategy: Market Ce Complement/Accelerate Organic Growth, Reduce C. v Predit ‘ing busi with strong growth opportunities and positive long- term macro trends v Diversified customer base vy Proven management team ¥ Opportunities to accelerate industry, market and/or customer d
Slide 8: Investing in Attractive End Markets: Flexible Packaging
Investing in Attractive End Markets for Long-Term Growth Film Products — Committed $315MM From 2010 Flexible Packaging: expanding global capacity to benefit from growth in emerging markets > $264MM committed > Market dynamics * High-value specialty PET film offers technical advantay * End-user deman
Slide 9: Investing in Attractive End Markets: Personal Care
Investing in Attractive End Markets for Long-Term Growth Film Products — Committed $315MM From 2010 Personal Care: expanding global capacity to benefit from growth in emerging markets > $14MM committed > Market dynamics * Positive global market growth trends for absorbent products expected through 2
Slide 10: Investing in Attractive End Markets: Surface Protection
Investing in Attractive End Markets for Long-Term Growth Film Products — Committed $315MM From 2010 Surface i i ity to benefit from growth in Asia >» $23MM committed > Market dynamics * New technologies for high-end TVs, tablets and smartphones driving growth = Growth of middle class in emerging mar
Slide 11: Investing in Attractive End Markets: Specialty Lighting Films
Investing in Attractive End Markets for Long-Term Growth Film Products — Committed $315MM From 2010 Specialty Lighting Films: developing broad product portfolio of engineered optics to serve the rapidly growing illumination market > $16MM committed > Market dynamics * Rapid adoption of LED lighting
Slide 12: Investing in Attractive End Markets: Aluminum Extrusions
Investing in Attractive End Markets for Long-Term Growth Aluminum Extrusions — Committed $70MM From 2010 ell to benefit from i i ial building and coastuction market and growth in North American light vehicle market > Market dynamics * Nonresidential market recovery opportuni nity fecovery lagging gr
Slide 13: Customer and End-Market Concentration Improvements
Customer and End-Market Concentration Improvements Customer Concentrati Tredegar Net Sales $633MM Net Sales $907MM Net Sales 2009 2013 LTM (as of 6/30/13) =P&G =P&G @AIl Other =A\l Other End-Market Concentration — Bonnell Aluminum Volume 92MM Ibs. Volume 132MM Ibs. Volume 2009 2013 LTM (as of 6/30/1
Slide 14: Strategy is Driving Financial Results
Strategy is Driving Financial Results 2009 - 2012: > Net Sales’ of $857MM up 35%, EPS from ongoing operations’ of $1.20 up ~ 40% Accretive acquisitions of Terphane and AACOA Recovery of Surface Protection and Personal Care sales in the second half of 2012 Lowered breakeven at Bonnell Aluminum throug
Slide 15: Select Financial Performance
Select Financial Performance Annual Earnings Share joing Operations 41% $1.20 2009 2010 2011 2012 Results include z te ‘Tredegar
Slide 16: Tredegar by Segment
Tredegar by Segment Net Sales’ Film Products ($MM) Bonnell Aluminum ($MM) GR: 11% 2009-2012, Net Sales 3 year CAC 2009 2010 2011 2012 L™ Year / year sales growth: 15% 3% 14% 12% 20% % sion ‘GAAP
Slide 17: Select Financial Performance: Segment Adjusted EBITDA
Select Financial Performance Segment Adjusted EBITDA , Ongoing Operations ($MM) = Film Products» Bonnell Aluminum Combined Segment j. EBITDA’ Margin %: Films Adj. EBITDA’Margin %: 21.3% 19.4% 17.9% 17.8% 18.2% Bonnell Adj. EBITDA’ Margin %: 0.6% 28% 49% 6.8% 73% jects inclusion of soreains, EBITDA F
Slide 18: 2013 Overview
2013 Overview 2013 > Strong results in the first half of 2013 with EPS from ongoing operations of $0.57 Second half of 2012 recovery in Surface Protection and Personal Care sales continued into the first half of 2013 = October 2012 AACOA acquisition is accretive > Some headwinds in certain end marke
Slide 19: Tredegar Has a Track Record of Delivering Total Value to Shareholders
Tredegar Has a Track Record of Delivering Total Value to Shareholders TREDEGAR VS. MARKET (TOTAL RETURN %) 120% 5 1212009 - 08/2013 % 1209 3/10 6/10/10 tao 34 tot tand a2 tz t2_ tata 33 BN.
Slide 20: Film Products Overview
Tredegar TON a Film Products Overview
Slide 21: Overview of Film Products
Overview of Film Products Tredegar Film Products manufactures plastic films, elastics and laminate materials v Manufacturing in the United States, The Netherlands, Hungary, China, Brazil and India > Terph isition further films business in Latin America and the United States > Tredegar has a leadersh
Slide 22: Tredegar Film Products: Market Dynamics and Strategic Initiatives
Tredegar Film Products Market Dy ics and > Consumer buying trends indicate a shift to value- » Broaden product offerings to meet consumer needs segment products in developed markets, affecting in the value segment personal care > Accelerate pace of innovation and new product introduction, building o
Slide 23: Film Products: Sales by Region and Product Category
Tredegar Film Products Sales by Region and Product Category Net Sales by Region Net Sales by Major Product Category ($612MM Net Sales in 2012) “Personal Care-Feminine Hygiene ® Personal Care-Baby Diaper ‘Personal Care-Adult Incontinence » Flexible Packaging » Surface Protection = Overwrap Films | Fi
Slide 24: Film Products: Focus on Research and Development
Tredegar 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™ —
Slide 25: Bonnell Aluminum: Aluminum Extrusions Overview
Tredegar SOTO Bonnell Aluminum: Aluminum Extrusions Overview
Slide 26: Overview of Bonnell Aluminum
Overview of Bonnell Aluminum > Bonnell is among the leading manufacturers of custom aluminum extrusions in North America > Four US manufacturing locations in Tennessee, Georgia, Indiana and Michigan > 2012 AACOA isition expanded market = Expanded customer base in new markets * New fabrication capabi
Slide 27: Volume by End Market
Volume by End Market (115MM pounds in 2012) Volume by End Market 4% 2% 5% "Building & Construction, Nonresidential = Building & Construction, 5% 70% jidential = Transportation (includes automotive) o% = Consumer Durables "Distribution » Machinery and Equipment Electrical
Slide 28: Market Dynamics and Strategic Initiatives
Market Dynamics and Strategic Initiatives Market Dynamics Strategic Initiatives > Sensitivity to economic conditions in end- use markets, in v ies ‘AACOA acquisition and execute v Extrusion shipments for automotive, transportation, consumer durables and electrical markets up double digits in 2012* v
Slide 29: Diversified Customer Base
Diversified Customer Base v Aluminum extrusions sold to fabricators and distributors through a dedicated sales force v Bonnell targets complex, customized, service-intensive business in order to differentiate itself from high volume, standard extrusion applications > Large, diverse customer base wit
Slide 30: Financial Results
Tredegar a) Financial Results
Slide 31: Financial Summary
Results Include Financial Summary Annual Historical Financials Net Sales’ ($MM) $1,200 $857 $907 $900 $720 $776 $600 $300 2009 ©2010 2011 2012 ~LTM Earnings Per Share from ongoing ops’ ($) $1.50 si20 $128 $1.00 $0.50 $0.00 2009 ©2010 «2011 «2012 «~LTM Adjusted EBITDA ($MM) $150 $104 $107 $100 $50 $0
Slide 32: Financial Summary — Film Products
Financial Summary — Film Products Annual Historical Financials Net Sales’ ($MM) $800 $612 $600 536 sass 8521 $f $400 $200 $0 2008 «2010 = 2011 2012. LTM Volume (Ibs. MM) 270-272 207221219 2009 «2010 «2011 «2012 —sLTM sonst. Adjusted EBITDA’ ($MM) 12 109 $113 $120) 67 $101 ggg $80 $40 $0 2009 2010 ©2
Slide 33: Film Products: Net Sales and Operating Profit
Film Products Net Sales and Operating Profit from Ongoing Operations $77 $70 $67 2008 2009 2010 2011 2012 umm ‘mms Net Sales — Operating Profit from Ongoing Operations? Effective 141 ain reg
Slide 34: Financial Summary — Bonnell Aluminum
Financial Summary — Bonnell Aluminum Annual Historical Financials Net Sales ($MM) $400 5300) $240 $245 $200 $100 2009 ©2010 2011 2012 «~LTM Volume (Ibs. MM) 150 132 100 2009 2010 2011 «2012 «=~ LTM Adjusted EBITDA ($MM) $30 $20 $10 2009 «2010 «2011-2012, LTM $20 $14 $16 $10 $0 -$10 -$20 -$30 $21 200
Slide 35: Bonnell Aluminum: Net Sales and Operating Profit
Bonnell Aluminum Net Sales and Operating Profit from Ongoing Operations $13 2008 2009 2010 2011 2012 LT™ sm Net Sales‘ —Operating Profit from Ongoing Operations Reflects Inclusion of AAGOA subsequent to acquisition 10/1/12. ation fo ‘GAAP measure. ‘Aluminum Extrusions Film Product
Slide 36: Debt Capital Structure and Liquidity Measures
Tredegar Corporation Debt Capital Structure and Liquidity Measures Total Debt $139.0 Cash and Cash Equivalents $44.4 Net Debt’ $94.6 Shareholders’ Equity $368.1 Total Indebtedness- to- Adjusted EBITDA* 1.27x Net Debt-to-Capitalization? 20% mo ‘Tredegar Fim Products caer
Slide 37: Financial Highlights: Capital Expenditures
Tredegar Corporation Financial Highlights: Capital Expenditures a ee Capital Expenditures 2009 2010 2011 2012 Gein prseeien Film Products $11.5 $15.8 $13.1 $30.5 $53.3 $70.0 Bonnell Aluminum 22.5 43 27) 23 5.5 16.0 Corporate 01 0.2 0.1 0.4 0.2 nla Total $34.1 $20.4 $15.9 $33.2 $59.0 $86.0 % Net Sale
Slide 38: Senior Management Team
Senior Management Team 4 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 Wili
Slide 39: Tredegar is Well-Positioned for Future Success
Tredegar is Well-Positioned for Future Success Strategy Increase market share while diversifying customer base and expai ously executed product offerings Market Drivers Growt rging markets users enter market and aging baby-boomers consume retail adult incontinence products Electronics and display ma
Slide 40: Supplemental End Market Information
Tredegar — Supplemental End Market Information
Slide 41: Personal Care
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 = Adult in i
Slide 42: Personal Care Products
Personal Care Products Current Products Hygiene topsheets ¥ Acquisition distribution / transfer / surge layers vv Elastic closure systems Vv Waistbands v Garment-like elastic side panels Technology » Elastic films and laminate materials Film Prod Personal Care Packaging Film ———*_" Topsh ° Aeauston
Slide 43: Surface Protection
Surface Protection > Product, market and demographic trends driving demand in core end-markets Flat panel displays ‘Small displays (smartphones and tablets) Flat Panel TVs: 100% penetration vs. Cathode Ray Tube TVs by 2015 i ‘Advances in touch screen technology driving growth China will play large r
Slide 44: 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 technologie
Slide 45: Flexible Packaging
v v vv v Flexible Packaging Emerging markets and packaging innovation driving demand in core food and consumer end- market Terphane lisition expanded market and emerging market growth strategy "Leading manufacturer of specialized PET serving growing food industry in Brazil * Growth platform to parti
Slide 46: Flexible Packaging Products
Flexible Packaging Products > Flexible ing for peri and peri foods > Non-food flexible packaging; industrial applications Technology Specialized polyester (“PET”) films with properties such as heat resistance, strength, barrier protection and the ability to accept high quality graphics v v Vertical
Slide 47: 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 48: Engineered Optics Products
Engineered Optics Products > Engineered optics: diffusers and reflectors lechnolsdess > Optical design > Photoreplication > Polymer formulation > Film extrusion Film Product Overview Specialty ‘Aluminum a ‘Tredegar Extrusions ORORTONG GR
Slide 49: Supplemental Financial Information
‘Tredegar Erg a Supplemental Financial Information
Slide 50: Supplemental Information
Supplemental Information 2010, 41,2012, Prior r October 1, 2012 Notes: 1 Its not (Ga mitions) 20082009 201001 2012 um Flim Products S 828 $ 4550 $ S208 $ 5355 $ B19 $ 6206 ‘Aluminum Extrusions mos 175 1996 2a 452859 Total net sales ec ‘Ad back eight 208 164 178185 248 282 ‘Sales as shown in consolid
Slide 51: Supplemental Information
Supplemental Information Notes ur Products Ensions Tota ‘rer ES BSS OS ‘Adsback copecaton Bamortaaton 482 - 2 os Agate ESTTOR treat oven 18e a Comorate ove ea) Saeco a Neteses ©) ses $2050 ous Aa 3m 73% MB 208 ‘Ope a a ‘asbock speciation &amontzation 302 0 42 accelerate 2a 24) ‘Agusted EITOA belor c
Slide 52: Supplemental Information
Supplemental Information Notes Notes (continued): 3 determine 90 ded to represent the below ‘in milions, except per share data) accountng principles (GAAP) ‘Alter tax effects of: accepted (Gains) losses from sale of assets and ot Good impairment relating to aluminum extrusions business Income from o
Slide 53: Supplemental Information
Supplemental Information Notes Notes (continued): 4 butis utilized by (dn mitions) tune 20, 2013. Debt S 1380 Less: Cash and cash equivalents (aa Not debt 948 6 valuation (in tions except percentages) tune 3, 2013 Not debt (see note 4) (a) se ‘Shareholders equity (©) 3681 Not debts 2 20% ‘Tredegar
Slide 54: Supplemental Information
Supplemental Information Notes ‘operations to net income is show below: um ‘operating profit (lose): oo ott zoe ssatg (i Thousands) Fim Product ‘Ongoing operations $5391 § 64379 § 68718 $ 50403 $ 60,050 Fat shor, sentra adres 98h froméale of assets and other (1257) (1846) 758) (6807) 108) Aturioum E
Slide 55: Tredegar
Tredegar jredes: ae) Investor Presentation September 2013