Ampco-pittsburgh Corporation · NYSE:AP
Ampco-pittsburgh — G.research Virtual Microcap Symposium (May 2021)
34 slides from Ampco-pittsburgh's conference presentation, May 18, 2021
Slide 1: Investor Presentation
Producing Quality Products Since 1929 — Always Moving Forward! Investor Presentation May 2021
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements - The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a safe harbor for forward-looking statements made by or on behalf of Ampco-Pittsburgh Corporation (the “Corporation”). This presentation may include, but is not limited to, statements ab
Slide 3: Snapshot
Snapshot Revenue Mix Ampco-Pittsburgh (NYSE:AP) (NYSE: AP-WS) ~ 72% Forged and Cast Year Founded 1929 Engineered ~ 28% Products Air and Liquid Number of Employees 1,533 Processing 2020 Revenue $ 329 Million Market Cap (as of 5/10/2021) $137 Million #1 in U.S. & #1 European Adjusted EBITDA Margin Imp
Slide 4: Investment Highlights
Investment Highlights #1 or #2 player in • # 1 in Europe #1 in the United States defensible niche • Growing position in other niche industrial markets markets • Exited non-profitable businesses, increasing asset utilization, Sustainable improving efficiencies improvements in • Expanded adjusted EBIT
Slide 5: Forged and Cast Engineered Products Segment
Forged and Cast Engineered Products Segment Ampco-Pittsburgh Investor Presentation May 2021 5
Slide 6: Market Share Leader in Forged & Cast Rolls
Market Share Leader in Forged & Cast Rolls $238M Forged and Cast 2020 Net segment sales Engineered #1 in U.S. & #1 European Products producer of forged and cast rolls 96% of segment sales Forged engineered products used in automotive tooling, plastic injection molding, 72% infrastructure, general in
Slide 7: Competitive Advantages
Competitive Advantages The Industry’s Needs Union Electric Steel’s Solutions Over 75% of aluminum and steel The largest, non-government owned products require rolling roll manufacturer in the world Provides the most diverse range of Wide range of roll types required for roll types and chemistries in
Slide 8: What is a "Roll"?
What is a “Roll”? Consumable for rolled steel and aluminum production • A sheet of metal will pass through a series of rolls, flattening the metal like a rolling pin until the required thickness and profile is achieved. • Rolls are consumables; our customers provide the “razor” (the mill); we provid
Slide 9: Steel Market Trends
Steel Market Trends Over 75% of Steel Mill Production Utilization Ongoing Steel Steel & Aluminum Market Recovery Products Require Rolling Increasing 2022 Regulatory Steel Activity Tailwinds Expected Source: AISI Ampco-Pittsburgh Investor Presentation May 2021 9
Slide 10: A Fresh Start for Ampco-Pittsburgh
A Fresh Start for Ampco-Pittsburgh Turn Around Stages Stabilize Maximize Grow Strengthening the Improve Increase Asset Balance Sheet Efficiencies Utilization and Operational Efficiencies Divesting Underperforming Invest in State-of-the-art Businesses Equipment Enter Tangential Markets Complete In Pr
Slide 11: A Fresh Start: Improving Profitability
A Fresh Start for Ampco-Pittsburgh Improving Profitability New Leadership • Brett McBrayer introduced as new CEO in July 2018 with a focus on improving operational performance, reducing complexity, and rightsizing the business for future growth and profitability • Sam Lyon appointed segment presiden
Slide 12: A Fresh Start: Strengthening the Balance Sheet
A Fresh Start for Ampco-Pittsburgh Strengthening the Balance Sheet 1 2 Net Debt / Adjusted EBITDA below 1X Additional Liquidity at 12/31/20 Net cash flows provided by operating activities = $33.6M in 2020 Revolving Credit Line = $48M availability Gross proceeds from rights offering = $19.3M in 2020
Slide 13: Resuming Growth and Meaningful Profitability
Resuming Growth and Meaningful Profitability Modernize Production Assets • Replace single-purpose machines with multi-purpose machines • Increased automated processes Expand Addressable Markets • Leverage forged roll production assets to manufacture and enter new open-die markets o Increase non-roll
Slide 14: Resuming Growth: Modernize Production Assets
Resuming Growth and Meaningful Profitability Modernize Production Assets Capital Investment of ~$27M Replace single-purpose machines with multi-purpose machines Expand heat treatment capacity for FEP ✓ Efficiency Improvements ✓ Transportation Savings ✓ Working Capital Reduction ✓ Repair & Maintenanc
Slide 15: Expanding the Addressable Markets
Resuming Growth and Meaningful Profitability Expanding the Addressable Markets Enter new End Markets FEP open-die forgings are used in a variety of Open-die Forged Engineered industries: Products Market = $800M + Aerospace Others Energy 2% 13% 15% Diversified Mix of Industries Aerospace Tool & Die H
Slide 16: Expanding the Addressable Market
Resuming Growth and Meaningful Profitability Expanding the Addressable Market Revenue Mix Revenue Mix 2020 2023 Air and Liquid FEP Forged and Cast Rolls Air and Liquid FEP Forged and Cast Rolls Expect threefold increase in FEP open-die forging through new end markets Less reliance on steel market cy
Slide 17: Air and Liquid Processing Segment
Air and Liquid Processing Segment Ampco-Pittsburgh Investor Presentation May 2021 17
Slide 18: Air and Liquid Processing Segment
Air and Liquid Processing Segment Leading Player in Niche Markets $91M 2020 Net segment sales Air and Liquid Heat exchangers and Processing Segment heat transfer products Used in nuclear power, industrial 28% of process and HVAC Segment Sales Large custom air handling systems Used in commercial, ins
Slide 19: Air and Liquid Processing Segment Key Customers
Air and Liquid Processing Segment Key Customers Ampco-Pittsburgh Investor Presentation May 2021 19
Slide 20: Mission-Critical Functions Across Demanding End Markets
Mission-Critical Functions Across Demanding End Markets Ampco-Pittsburgh Investor Presentation May 2021 20
Slide 21: Competitive Advantages
Competitive Advantages Air and Liquid The Industry’s Needs Processing’s Solutions High quality and reliability that meet Trusted source for research and strict industry certification medical labs, military, and the requirements nuclear industry Ease of selection for custom Proprietary software for q
Slide 22: Air and Liquid Processing Segment Resilient Financial Performance
Air and Liquid Processing Segment Resilient Financial Performance Throughout Economic Cycles and COVID-19 A decade of Asset Light Model consistently $10 million $38 million in generating operating income production #1 position Barriers to entry 8% to 12% from this segment assets*** in end markets in
Slide 23: Summary Financials
Summary Financials Ampco-Pittsburgh Investor Presentation May 2021 23
Slide 24: Consolidated Financial Trend Improvement
Consolidated Financial Trend Improvement ($MM’s) $30.0 $420.0 (Loss) income from continuing operations & Adjusted EBITDA $0.0 $280.0 Net Sales ($30.0) $140.0 ($60.0) $0.0 2016 2017 2018 2019 2020 (Loss) income from continuing operations, as reported (GAAP) (Loss) income from continuing operations, a
Slide 25: Investment Highlights
Investment Highlights #1 or #2 player in • # 1 in Europe #1 in the United States defensible niche • Growing position in other niche industrial markets markets • Exited non-profitable businesses, increasing asset utilization, Sustainable improving efficiencies improvements in • Expanded adjusted EBIT
Slide 26: Thank You
Thank You ampcopgh.com Ampco-Pittsburgh Investor Presentation May 2021 26
Slide 27: Appendix
Appendix Ampco-Pittsburgh Investor Presentation May 2021 27
Slide 28: Ampco-Pittsburgh Global Footprint
Ampco-Pittsburgh Global Footprint North Tonawanda, NY Gateshead, England Åkers Styckebruk, Sweden Ravne na Koroškem, Slovenia Valparaiso, IN Austintown, OH Taiyuan, China Erie, PA Xinjian Town Yixing, China Amherst, VA Maanshan, China Carnegie, PA Jointly Owned Manufacturing Facilities Lynchburg, VA
Slide 29: Consolidated Financial Quarterly Trend
Consolidated Financial Quarterly Trend ($MM’s) $10.0 $120.0 (Loss) income from continuing operations & Adjusted EBITDA Net Sales $0.0 $60.0 COVID-19 Pandemic ($10.0) $0.0 ($12.0) 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 (Loss) income from continuing operations, as repo
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($000’s) 2016 2017 2018 2019 2020 (Loss) income from continuing operations, as reported (GAAP) $ (54,530) $ (13,769) $ (44,892) $ (10,908) $ 6,446 Impairment charges [1] 26,676 - - 10,082 - Impact of ASU No. 2017-07 on 2016 [2] (945) - - - - Integration-related restructuring
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($000’s) 2019 2020 2021 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 (Loss) income from continuing operations, as reported (GAAP) $ (11,959) $ (653) $ (1,340) $ 3,044 $ (10,908) $ 4,351 $ (86) $ 178 $ 2,003 $ 6,446 $ 907 Impairment charge [1] 10,082 - - - 10,082 - - - - - - Restru
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($000’s) 2016 2017 2018 2019 2020 Net (loss) income, as reported (GAAP) $ (79,820) $ (12,089) $ (69,335) $ (20,986) $ 7,970 Add: Income tax provision (benefit) 22,712 (1,355) 268 2,108 (470) Other (income) expense, including interest expense 2,990 3,673 (1,085) (2,541) (2,25
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($000’s) 2017 2018 2019 2020 Total Debt $ 66,153 $ 77,609 $ 70,857 $ 37,243 Less: Cash and Cash Equivalents (18,656) (19,713) (6,960) (16,842) Net Debt (non-GAAP) 47,497 57,896 63,897 20,401 Adjusted EBITDA (non-GAAP) 14,585 17,867 23,200 23,335 Net Debt / Adjusted EBITDA 3.
Slide 34: Non-GAAP Reconciliation Footnotes
Non-GAAP Reconciliation Footnotes [1] Impairment charge for 2016 represents principally the write-off of goodwill associated with the Forged and Cast Engineered Products reporting unit deemed to be impaired. Impairment charge was recognized in the first quarter of 2019 to record the sale of certain
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