Materion Corporation · NYSE:MTRN
Materion — Shareholder Meeting (May 2014)
23 slides from Materion's shareholder meeting presentation, May 7, 2014
Slide 1: Materion Corporation 2014 Annual Meeting of Shareholders
MATERION CORPORATION 2014 ANNUAL MEETING OF SHAREHOLDERS MAY 7, 2014 1 Date Exhibit 99.2
Slide 2: Forward-looking Statements
Forward-looking Statements These slides contain (and the accompanying oral discussion will contain) “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that could c
Slide 3: Materion Corporation 2014 Annual Meeting of Shareholders
MATERION CORPORATION 2014 ANNUAL MEETING OF SHAREHOLDERS MAY 7, 2014 3 Date
Slide 4: 2013: A Difficult Year
2013: A Difficult Year We Faced Headwinds And Addressed A Number Of Challenges • Results below expectations and capability • Silver theft at Albuquerque • Value-added sales and profit growth affected by: – Cost to investigate theft – Weak macroenvironment – U.S. Government Budget Sequestration – Gol
Slide 5: Tough Decisions Made, Strong Actions Taken In Advanced Material Technologies
Tough Decisions Made Strong Actions Taken In Advanced Material Technologies • Two facilities closed in early 2013 • In Albuquerque, four facilities consolidated into two – Eliminated low margin business – Shifted other products to other precious metals facilities • Realigned segment headquarters str
Slide 6: Business Levels Declined Modestly
Business Levels Declined Modestly Revenue Decline Driven By Pass-through Metal Prices • Revenues – GAAP sales down 8% to $1.17 billion from $1.27 billion – Value-added sales down 1% • Macroeconomic conditions drove – Industrial components down 7% – Defense down 6% – Telecom infrastructure down 4% –
Slide 7: Profits Below Prior-year Levels Driven By The Headwinds
Profits Below Prior-year Levels Driven By The Headwinds • Net income declines $5.0 million and EPS declines $0.25 per share Net Income EPS – 2013 $19.7mm $0.94 – 2012 $24.7mm $1.19 • $5.0 million decline driven by the challenges • Facility consolidation and product line rationalization charges: – $3
Slide 8: Strong Balance Sheet A Source Of Strength And Strategic Flexibility
Strong Balance Sheet A Source Of Strength And Strategic Flexibility • Debt to total cap ratio 12% at year end • 2013 operating cash flow: $76 million • Past five years; $30 to $76 million annually – $200 million in acquisitions – $20 million to shareholders • 2014 confidence leads to – $50 million s
Slide 9: 2014 Off To A Good Start
2014 Off To A Good Start Encouraging First Quarter, Results Better Than Expectations And Positive Developments • Results ahead of expectations – At $0.35 GAAP, $0.29 adjusted – Expectations at $0.24 • Positive developments – Solid orders – Benefits of 2013 actions – Beryllium plant on target • Enter
Slide 10: 2014 Guidance Intact
2014 Guidance Intact Significant Improvement Expected • 2014 EPS: GAAP is $2.02 to $2.22 per share – Includes asset sales – Includes theft insurance • 2014 EPS: adjusted is $1.75 to $1.95 per share – Excludes above factors – Consistent with beginning of the year guidance 10
Slide 11: Materion Corporation 2014 Annual Meeting of Shareholders
MATERION CORPORATION 2014 ANNUAL MEETING OF SHAREHOLDERS MAY 7, 2014 11 Date
Slide 12: All Our Businesses Share The Same Unifying Characteristics
All Our Businesses Share The Same Unifying Characteristics • Leading edge material science • Sophisticated application engineering • Solving complex challenges in technically demanding applications • Providing real value-add to our customers, enabling their products and processes to perform more eff
Slide 13: Strategic Initiatives: Advanced Material Technologies
Strategic Initiatives: Advanced Material Technologies • New wafer-level coating facility – 3,000 square foot, class 1000 cleanroom – High-volume, semiconductor-type processing • Positions us for optics market growth 13
Slide 14: Strategic Initiatives: Advanced Material Technologies
Strategic Initiatives: Advanced Material Technologies • New large area optics facility – High-performance optical filters for global astronomy and space markets – Large area filter size capabilities matched by few others 14
Slide 15: Strategic Initiatives: Advanced Material Technologies
Strategic Initiatives: Advanced Material Technologies • LED phosphor precursor materials – Increased production capacity • Electronics packaging business – Relocated to Singapore 15
Slide 16: Strategic Initiatives: Performance Alloys
Strategic Initiatives: Performance Alloys • ToughMet® capacity expansion – Doubled casting capacity – Lorain – Expanded strip capabilities – Reading 16
Slide 17: Strategic Initiatives: Beryllium and Composites
Strategic Initiatives: Beryllium and Composites • Expanded beryllium hydroxide capacity – Leverages Materion’s unique mine to mill capabilities • Beyond materials – fabricating rods and reflectors for radioisotopes used in medical scans • AlBeCast® investment castings technology 17
Slide 18: Strategic Initiatives: Technical Materials
Strategic Initiatives: Technical Materials • Dovetail Clad – Supports growing energy business • Lithium-ion batteries for electric and hybrid vehicles and standard vehicles 18
Slide 19: New Product Pipeline – Advanced Materials Technologies
New Product Pipeline – Advanced Materials Technologies • Gesture controls • AMOLED display materials 19
Slide 20: New Product Pipeline: Performance Alloys and Beryllium and Composites
New Product Pipeline: Performance Alloys and Beryllium and Composites • Oil and gas – ToughMet • Lower-cost, thin-walled wrapped bearings – BowMet® product line • Bulk metallic glass (Liquidmetal) 20
Slide 21: One Materion
One Materion • Leveraging the power of a unified organization – Investments in common financial systems – “Discover What’s Possible” cross-company Materion presentations to major customers 21 Materion Day at GM – January 2014
Slide 22: Materion: Leveraging Our Global Leading Positions
Materion: Leveraging Our Global Leading Positions Beryllium and Specialty Metals 22 Physical Vapor Deposition Materials Physical Vapor Deposition Coatings
Slide 23: Materion Corporation 2014 Annual Meeting of Shareholders
MATERION CORPORATION 2014 ANNUAL MEETING OF SHAREHOLDERS MAY 7, 2014 23 Date