Materion Corporation · NYSE:MTRN
Materion — Investor Presentation (March 2023)
25 slides from Materion's investor presentation, Mar 22, 2023
Slide 1: Materion: A Global Leader in Advanced Materials Solutions
© 2023 Materion Corporation March 2023 Materion A Global Leader in Advanced Materials Solutions 1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information 2 These slides contain (and the accompanying oral discussion will contain, where applicable) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unkno
Slide 3: Outline
3 Outline i. Materion Overview ii. Segment Overview iii. Growth Drivers iv. Financial Overview v. Appendix
Slide 4: Materion Overview
© 2021 Materion Corporation4 i. Materion Overview
Slide 5: Snapshot
5 Snapshot 44% 31% 24% 1% United States Asia Europe All Other Headquarters Cleveland, OH 2022 Revenue $1.76B 2022 Value-Added Sales1 $1.11B 2022 Adj. EBITDA Margin1 17.6% Countries of Operation 13 Manufacturing Facilities 28 Global Employees ~3,700 53% 37% 10% Performance Materials Electronic Materi
Slide 6: Accelerating Our Transformation
6 Accelerating Our Transformation Where We Were (Before 2017) Where We Have Been (2017 – 2022) Where We Are Going (2023+) • Origins as a mining and metals- focused producer in 1931 • Strong heritage of beryllium expertise • Strategic acquisitions broadened portfolio, creating the foundation for Elec
Slide 7: Creating Shareholder Value
7 Creating Shareholder Value Becoming a global leader in high-performing advanced materials serving diverse and attractive markets well aligned with megatrends, while building on our beryllium heritage Experienced leadership team establishing operating model to drive execution and greater value for
Slide 8: Materion Operating Model Enables Value Creation
8 Materion Operating Model Enables Value Creation Developing a High Performance-based Culture to Drive Shareholder Value DigitalInnovation Operational Excellence Commercial Excellence Programmatic M&A Value Levers: Strengthen, Build And Grow
Slide 9: Unifying Culture Drives Our Performance
Unifying Culture Drives Our Performance 9 OUR VISION OUR VALUES Be the partner of choice for our customers’ advanced materials needs that fuel imagination, performance and sustainable competitive advantage. Safety Ethics Social Responsibility Collaboration Diversity & Inclusion OUR PURPOSE We push t
Slide 10: Segment Overview
© 2021 Materion Corporation10 ii. Segment Overview
Slide 11: Integrated Operating Segments
Integrated Operating Segments 11 Performance Materials A leading global supplier of high- performance specialty metals, alloys and other advanced materials that enable next-gen technologies • Global leader in Beryllium-based technologies leveraging fully integrated supply chain • A market leader in
Slide 12: Performance Materials Segment Overview
12 • Beryllium & beryllium-containing materials • Clad metals • High-performance alloys • Metal matrix composites • Technical ceramics • High-performance machined parts • Continue to drive profitable growth and increased capability through customer partnerships • Provide our customers with high-valu
Slide 13: Electronic Materials Segment Overview
End Markets Semiconductor Automotive Energy Other – Medical Industrial 13 • Electronic deposition materials • Electric vehicle battery materials • Electronic components • Inorganic chemicals • Specialty materials • Enhance semiconductor presence through deposition material portfolio • Continue captu
Slide 14: Precision Optics Segment Overview
14 • Precision filters and optical coatings • Hyperspectral filter arrays • Wafer level & patterned coatings • Optical assemblies • Engineered thin films • Projection display components • Align the portfolio to key global megatrends and focus on a market-driven growth strategy • Utilize technical en
Slide 15: Growth Drivers
© 2021 Materion Corporation iii. Growth Drivers 15
Slide 16: End Markets Served through Materion Operating Model
16 End Markets Served through Materion Operating Model End Market 2022 VA Sales1 Trends / How We Win Operating Segment Semiconductor 30% • Partnering with leading global semiconductor manufacturers • A top producer of deposition materials for microelectronic applications EM, PM, PO Industrial 19% •
Slide 17: Materion: Unique Competitive Advantages
17 Materion: Unique Competitive Advantages Building Long-term Relationships We work with our customers to understand their current and future challenges… …Applying our core competencies and expertise… …To develop advanced materials with differentiated performance characteristics… …That enable soluti
Slide 18: Accelerating Organic Outgrowth with Key Investments
18 Accelerating Organic Outgrowth with Key Investments Precision Clad Strip phase one investment complete; phase two expansion on track for 2024 start up Precision Clad Strip Partnership with leading battery manufacturer for development of NextGen battery solutions 3-year material supply agreement t
Slide 19: Financial Overview
© 2021 Materion Corporation19 iv. Financial Overview
Slide 20: Improving Financial Profile By Growing Value-Added Sales
20 Improving Financial Profile By Growing Value-Added Sales $102 $127 $98 $144 $196 14% 18% 15% 17% 18% 0 50 100 150 200 250 2018 2019 2020 2021 2022 ADJ. EBITDA1 AND MARGIN Adj. EBITDA ($M) Adj. EBITDA % $711 $704 $640 $830 $1,114 2018 2019 2020 2021 2022 VA SALES1 ($M) $2.47 $3.39 $2.13 $4.06 $5.2
Slide 21: Disciplined Capital Deployment
21 Disciplined Capital Deployment Opportunistic share repurchases Complementary products / technologies Disciplined capital budgeting process Invest in new products, facilities and productivity projects Maintain financial discipline Dividends increased in 10 consecutive years $34 $27 $67 $103 $78$76
Slide 22: Strong Balance Sheet Fuels Value-Creating Capital Allocation
22 Strong Balance Sheet Fuels Value-Creating Capital Allocation ($M) 2021 2022 Total Debt $449.8 $431.9 Cash & Cash Equivalents $14.5 $13.1 Net Debt (Cash) $435.3 $418.8 TTM Adjusted EBITDA $143.6 $196.0 Net Debt (Cash)/TTM Adj. EBITDA 3.0x 2.1x Board authorization in place for up to $50M worth of s
Slide 23: Appendix
© 2021 Materion Corporation23 v. Appendix
Slide 24: 5-Year Revised Value-Added (VA) Sales
24 5-Year Revised* Value-Added (VA) Sales Total Company VA Sales Reconciliation 2018 2019 2020 2021 2022 Selected Items Net Sales $1,207.8 $1,185.4 $1,176.3 $1,510.6 $1,757.1 Pass-through cost, as reported 468.8 458.6 511.1 650.9 613.5 VA Sales, as reported 739.0 726.8 665.2 859.7 1,143.6 Additional
Slide 25: 2021 & 2022 Quarterly Revised Value-Added (VA) Sales
25 2021 & 2022 Quarterly Revised* Value-Added (VA) Sales Total Company VA Sales Reconciliation Q1 ‘21 Q2 ‘21 Q3 ‘21 Q4 ‘21 Q1 ‘22 Q2 ‘22 Q3 ‘22 Q4 ‘22 Selected Items Net Sales $354.4 $371.0 $388.0 $397.2 $449.0 $445.3 $428.2 $434.6 Pass-through cost, as reported 155.8 163.1 172.2 159.8 182.2 168.1 1