Mativ Holdings, Inc. · NYSE:MATV
Mativ — Q1 2023 Earnings Presentation
16 slides from Mativ's earnings presentation, May 11, 2023
Slide 1: Mativ 1Q 2023 Earnings Release Presentation
Mativ 1Q 2023 Earnings Release Presentation 1 Mativ 1Q 2023 Earnings Release Presentation
Slide 2: Forward Looking Statements, Non-GAAP Disclosure, & Definitions
Forward Looking Statements, Non-GAAP Disclosure, & Definitions This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws that are subject to the safe harbor created by such laws and other le
Slide 3: Forward Looking Statements, Non-GAAP Disclosure, & Definitions
Forward Looking Statements, Non-GAAP Disclosure, & Definitions Combined Legacy Financial Information Due to the significance of the Neenah merger and the resulting change in our reportable segments, Mativ is providing the supplemental combined legacy financial information set forth in the tables bel
Slide 4: Strong Price Exceeded Input Costs; Volume Pressure & Operational Challenges Drove Lower Profitability
Strong Price Exceeded Input Costs; Volume Pressure & Operational Challenges Drove Lower Profitability As reported Comparable* ($ millions, except EPS) 1Q:23 1Q:22 1Q:23 1Q:22 Sales $679.0 $406.8 $679.0 $691.6 GAAP Income ($7.7) $1.6 ($7.7) N/A GAAP EPS ($0.14) $0.05 ($0.14) N/A Adjusted EBITDA $65.7
Slide 5: Operating Challenges Offsetting Otherwise Solid Performance
Operating Challenges Offsetting Otherwise Solid Performance Nearly $40 million of price/cost favorability Pricing actions of 2022 remain in effect, input costs have begun to ease Both FBS and ATM showing strong price/cost performance Synergy actions remain on-plan Majority of SG&A actions take
Slide 6: 1Q:23 Results Overview
1Q:23 Results Overview $ millions 1Q:23 Comment s ATM Sales 434.3 Up 2% constant currency organic FBS Sales 244.7 Down 1% constant currency organic Total Sales 679.0 Up 1% constant currency organic GAAP Income / EPS ($7.7) / ($0.14) Adj. Income / EPS $13.7 / $0.25 $58.8 Comparable*: down 7%, 90 bps
Slide 7: 1Q:23 Key Variances & Trends
1Q:23 Key Variances & Trends $ millions Trend Outlook 1Q:22 Adj. EBITDA $88 (Comparable) Up 8%, strong pricing actions to recover input Price ≈ $60 cost inflation Focus on maintaining price increases Several key inputs expected to be lower in Cost ≈ ($20) Input costs off peak levels 2023 v 2022 Look
Slide 8: Investment Highlights
Investment Highlights New beginning. Tremendous opportunity. Leadership Positions Material Sciences Expertise across diverse technologies, In attractive global market categories collaborative innovation with customers Growth Potential Synergies Multiple drivers support positive Clear pathway to marg
Slide 9: Appendix
Appendix 9 Mativ 1Q 2023 Earnings Release Presentation
Slide 10: Non-GAAP Reconciliation: Segment Reporting
Non-GAAP Reconciliation: Segment Reporting NOTE RE: SEGMENT REPORTING & COMPARABILITY Effective July 6, 2022, in connection with the close of the Neenah merger, Mativ has two reportable segments for financial reporting purposes: Advanced Technical Materials ("ATM") and Fiber-Based Solutions ("FBS").
Slide 11: Non-GAAP Reconciliation: Segment Reporting (cont.)
Non-GAAP Reconciliation: Segment Reporting (cont.) BUSINESS SEGMENTS, AS REPORTED, $ millions Adjusted Operating Profit Three Months Ended March 31, Sales 2023 2022 2023 2022 ATM $ 45.3 $ 34.6 10.4 % 12.7 % FBS 15.2 26.0 6.2 % 19.4 % Unallocated (24.1) (18.3) (3.5)% (4.5)% Total Consolidated $ 36.4
Slide 12: Non-GAAP Reconciliation: Consolidated Reported Results
Non-GAAP Reconciliation: Consolidated Reported Results $ millions Three Months Ended March 31, 2023 2022 Operating profit $ 9.3 $ 10.6 Plus: Restructuring and impairment related expenses 0.8 13.5 Plus: Purchase accounting adjustments 15.9 11.1 Plus: Acquisition/merger and integration related costs 1
Slide 13: Non-GAAP Reconciliation: Consolidated Reported Results (cont.)
Non-GAAP Reconciliation: Consolidated Reported Results (cont.) $ millions Three Months Ended March 31, 2023 2022 Net Income (loss) $ (7.7) $ 1.6 Plus: Interest expense 26.5 14.5 Plus: Provision for income taxes (2.4) 2.1 Plus: Depreciation & amortization 42.0 23.9 Plus: Stock compensation expense 1.
Slide 14: Non-GAAP Reconciliation: Combined Legacy Neenah and SWM Results for Comparability
Non-GAAP Reconciliation: Combined Legacy Neenah and SWM Results for Comparability $ millions Three Months Ended March 31, 2022 March 31, 2023 Legacy Legacy Mativ Neenah Adjustm ents Neenah Legacy SWM Com bined for Mativ Advanced Technical Materials (ATM) (1) Net Sales $ 185.6 $ (18.9) $ 166.7 $ 272.
Slide 15: Non-GAAP Reconciliation: Combined Legacy Neenah and SWM Results for Comparability (cont.)
Non-GAAP Reconciliation: Combined Legacy Neenah and SWM Results for Comparability (cont.) Three Months Ended $ millions March 31, 2022 March 31, 2023 Legacy Legacy Mativ Neenah Adjustm ents Neenah Legacy SWM Com bined for Mativ Corporate Unallocated GAAP Operating Loss $ (11.8) $ (3.5) $ (15.3) $ (2
Slide 16: Non-GAAP Reconciliation: Sales Results
Non-GAAP Reconciliation: Sales Results Non-GAAP Reconciliation of Organic Net Sales Growth $ millions Advanced Fiber-Based Consolidated Technical Solutions Mativ Three Months Ended March 31, Mativ Combined 2022 Net Sales $ 439.6 $ 252.0 $ 691.6 Divestiture/closure adjustments (5.2) — (5.2) Mativ Com