Luxfer Holdings Plc · NYSE:LXFR
Luxfer — Investor Presentation (March 2024)
31 slides from Luxfer's investor presentation, March 2024
Slide 1: Investor Presentation March 2024
INVESTOR PRESENTATION March 2024 1 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Examples of such forward-looking statements include but are not limite
Slide 3: We are Luxfer
We are Luxfer We help to create a safe, clean and energy efficient world 3 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 4: Luxfer Overview (NYSE: LXFR)
LUXFER OVERVIEW (NYSE: LXFR) Company Description Luxfer is a global industrial company innovating niche Full Year 2023 Sales Breakdown (excluding Graphic Arts) applications in materials engineering. Luxfer’s high- by End Market performance materials, components and high-pressure gas containment devi
Slide 5: Manufacturing Excellence Footprint
MANUFACTURING EXCELLENCE FOOTPRINT Gas Cylinder • Calgary, Canada • Pomona, CA • Riverside, CA • Nottingham, UK Elektron • Shanghai, China • Saxonburg, PA • Tamaqua, PA • Flemington, NJ • Cincinnati, OH • Manchester, UK Ten major manufacturing locations around the globe 5 CUSTOMER FIRST • INTEGRITY
Slide 6: Materials Technology Leadership
MATERIALS TECHNOLOGY LEADERSHIP MAGNESIUM ALLOYS Innovation leader in the use High of magnesium alloys for critical Performance applications in aerospace, defense, Magnesium and other industries as well as in Alloys flameless heating applications Elektron Segment Expertise in high-performance ZIRCON
Slide 7: Aligned with Secular Growth Trends
ALIGNED WITH SECULAR GROWTH TRENDS Composite gas cylinders and systems used for Alternative Fuel applications, including Hydrogen and Compressed Natural Gas Clean Zirconium-based emissions control Energy and industrial catalysis materials Lightweight carbon fiber cylinders for breathing equipment us
Slide 8: Highlights and Key Messages
HIGHLIGHTS AND KEY MESSAGES (amounts in millions, except EPS) Q4 2023 Q4 2022 FY 2023 Adj. Sales $87.8 $106.3 $373.5 Adj. EBITDA $8.1 $11.2 $43.3 Adj. Diluted EPS $0.13 $0.25 $0.80 Adj. Free Cash Flow $14.1 $15.9 $16.8 Net Debt $69.9 $68.6 $69.9 Net Debt : EBITDA 1.6x 1.2x 1.6x *Note: Adjusted finan
Slide 9: Actions Taken to Improve Performance
ACTIONS TAKEN TO IMPROVE PERFORMANCE LU X F E R B U S I N E S S SYS T E M R ED U CI N G CO STS , I M P ROV ING M A RGI N & CA S H F LOW Consolidated Elektron Powders plants from 3 to 2 to deliver $900K in annual savings; selling closed site in H2 2024 Established insurance recovery for Elektron
Slide 10: FY 2024 Outlook
FY 2024 OUTLOOK FULL YEAR 2024 GUIDANCE* ASSUMPTIONS* Sales Growth (incl. volume, price, and FX) -3% to +1% Capex $11M - $14M Adjusted EBITDA $42M - $46M Tax Rate ~23% Adjusted Diluted EPS $0.70 - $0.85 FX GBP:USD 1.25 Free Cash Flow $20M - $24M Net Debt: EBITDA ~1.5x *Note: The 2024 Full Year outlo
Slide 11: Profit Improvement and Value Creation
PROFIT IMPROVEMENT AND VALUE CREATION COMPLETION OF KEY INTERNAL PROGRAMS IS DRIVING IMPROVED EARNINGS PROJECTIONS • Improved cost base in both Elektron and Gas Cylinders with consolidation programs completed • Strengthened margins and restored profitability through new commercial arrangements for o
Slide 12: Fourth Quarter 2023 Earnings Presentation: Selected Slides
Fourth Quarter 2023 Earnings Presentation Selected Slides 12 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 13: Sales Performance by End Market
SALES PERFORMANCE BY END MARKET 45% 34% 21% DEFENSE, T R A N S P O R TAT I O N GENERAL T O TA L FIRST RESPONSE ( A LT E R N AT I V E F U E L , INDUSTRIAL & H E A LT H C A R E A E R O S PA C E , A U T O M O T I V E ) FY 2021 +5.9% +27.0% +15.9% +15.3% FY 2022 +5.6% +13.6% +31.1% +15.2% Q4 2023 +9.7%
Slide 14: Q4 2023: Financial Bridge
Q4 2023: FINANCIAL BRIDGE SALES ($M) ADJ. EBITDA ($M) $1.2 $7.2 $1.6 $106.3 $26.9 $1.1 $7.2 $87.8 $11.2 $9.4 $1.8 $8.1 Q4 2022 FX Price Volume/Mix Q4 2023 Q4 2022 FX Price Inflation Vol/Mix Other Q4 2023 *Note: Adjusted financials exclude Graphic Arts Sales decreased by 17.4% Adj EBITDA decreased by
Slide 15: Q4 2023: Segment Results
Q4 2023: SEGMENT RESULTS GAS CYLINDERS ELEKTRON Sales Adj. EBITDA Sales Adj. EBITDA Q4 2022 $51.8 $3.0 $54.5 $8.2 Q4 2023 $51.7 $6.5 $36.1 $1.6 FY 2023 $186.4 $16.7 $187.1 $26.6 Q 4 2 0 2 3 C O M M E N TA R Y Higher SCBA and Medical sales offset by Sales deterioration due to continued lower sale
Slide 16: Appendices
APPENDICES Segment Financial Detail and Reconciliation of Non-GAAP Measures 16 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 17: Q4 2023: Gas Cylinders Segment Results
Q4 2023: GAS CYLINDERS SEGMENT RESULTS Sales ($M) Adj. EBITDA ($M) -0.2% +116.7% $1.2 $1.0 $5.9 $7.0 $1.1 $0.1 $51.8 $51.7 $6.5 $0.2 $5.9 $3.0 Q4 2022 FX Price Volume/Mix Q4 2023 Q4 2022 FX Price Inflation Volume/Mix Other Q4 2023 17 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONA
Slide 18: Q4 2023: Elektron Segment Results ex G.A.
Q4 2023: ELEKTRON SEGMENT RESULTS EX G.A. Adj. EBITDA ($M) Sales ($M) -33.8% -80.5% $8.3 $0.4 $0.9 $1.3 $0.2 $1.3 $8.2 $54.5 $1.7 $19.9 $1.6 $36.1 Q4 2022 FX Price Inflation Volume/Mix Other Q4 2023 Q4 2022 FX Price Volume/Mix Q4 2023 18 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PER
Slide 19: YTD Q4'23: Consolidated Total Results ex G.A.
YTD Q4’23: CONSOLIDATED TOTAL RESULTS EX G.A. Sales ($M) Adj. EBITDA ($M) -2.9% -21.7% $16.7 $0.6 $27.8 $38.4 $1.6 $27.8 $15.8 $5.7 $384.7 $373.5 $55.3 $43.3 Q4 2022 FX Price Volume/Mix Q4 2023 Q4 2022 FX Price Inflation Volume/Mix Other Q4 2023 19 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOV
Slide 20: YTD Q4 2023: Gas Cylinders Segment Total
YTD Q4 2023: GAS CYLINDERS SEGMENT TOTAL Sales ($M) Adj. EBITDA ($M) +1.5% +30.5% $2.2 $18.2 $13.3 $10.0 $186.4 $3.2 $0.5 $183.7 $0.6 $18.2 $16.7 $12.8 Q4 2022 FX Price Volume/Mix Q4 2023 Q4 2022 FX Price Inflation Volume/Mix Other Q4 2023 20 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION
Slide 21: YTD Q4 2023: Elektron Segment exc G.A.
YTD Q4 2023: ELEKTRON SEGMENT EXC G.A. Sales ($M) Adj. EBITDA ($M) -6.9% -37.4% $1.6 $9.6 $25.1 $6.7 $1.0 $9.6 $201.0 $12.6 $187.1 $42.5 $5.2 $26.6 Q4 2022 FX Price Volume/Mix Q4 2023 Q4 2022 FX Price Inflation Volume/Mix Other Q4 2023 21 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PE
Slide 22: Condensed Consolidated Statements of Income (Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) 22 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 23: Condensed Consolidated Balance Sheets (Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) 23 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 24: Condensed Consolidated Statements of Cash Flows (Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) 24 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 25: Reconciliation: Adjusted Net Income and Adjusted EPS
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE (UNAUDITED) 25 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 26: Reconciliation: Adjusted EBITDA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: ADJUSTED EBITDA (UNAUDITED) 26 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 27: Reconciliation: Net Sales and Adjusted EBITDA by Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: NET SALES AND ADJUSTED EBITDA BY SEGMENT (UNAUDITED) 27 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 28: Reconciliation: Adjusted Effective Tax Rate
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: ADJUSTED EFFECTIVE TAX RATE (UNAUDITED) 28 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 29: Reconciliation: Net Debt Ratio and Free Cash Flow
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: NET DEBT RATIO AND FREE CASH FLOW (UNAUDITED) 29 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 30: Reconciliation: Operating Working Capital as % of Annualized Net Sales
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: OPERATING WORKING CAPITAL AS A % ANNUALIZED NET SALES (UNAUDITED) 30 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 31: CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
31 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK