Slide 1: Proven to perform anywhere. First Quarter 2024 Earnings
Proven to perform anywhere. First Quarter 2024 Earnings April 30, 2024 ATI Proprietary and Confidential ©2024 ATI. All rights reserved. 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements. Actual results may differ materially from results anticipated in the forward-looking statements due to various known and unknown risks, many of which we are unable to predict or control. These and additional risk facto
Slide 3: Key Takeaways
Key Takeaways Performance Balance Sheet Strategic Progress Aero and aero-like growth drives Deploying capital for shareholder Ti capacity expansion investments strong first quarter performance returns, efficiently managing capital extend competitive advantages 31% YoY growth in titanium (“Ti”) Repur
Slide 4: Strategic Markets & Diversified Applications
Strategic Markets & Diversified Applications Near-term Q1 ‘24 vs. vs. Market Market Comments Revenue Q1 ‘23 Q4 ‘23 Outlook • Q1 2024 sales lower due to impacts of fourth quarter 2023 HPMC melt-outages Jet Engine $311M -% (12)% • Demand for jet engine materials remains strong, driven by ramping produ
Slide 5: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results $M (excl. EPS) Q1 2024 Q1 2023 % Chg. Q4 2023 % Chg. HPMC Segment • Revenue: Sales down (9)% sequentially due to Q4 2023 outage Revenue $1,043 $1,038 -% $1,064 (2)% impacts ‒ Melt-related challenges incurred in Q4 2023 drove reduced HPMC Segment $530 $471 +13% $5
Slide 6: Cash & Liquidity
Cash & Liquidity Balance Sheet and Cash Flow (1) (2) Net Debt/Adj. EBITDA Ratio: 2.8x Q1 results • Liquidity of ~$950M, including $394M of cash on hand • Managed working capital (2) 35.9% of sales; improvement of ~170 bps versus Q1 2023 $600 • Anticipate to trend lower, returning to 30% target level
Slide 7: Second Quarter & Full Year 2024 Outlook
Second Quarter & Full Year 2024 Outlook Second Quarter 2024 Key Assumptions Adj. EPS (1)(3) Adj. EBITDA (3) Key Drivers ✓ Continued growth in A&D $0.54 – $0.60 $170 – $180 million ✓ 45% increase in capacity for titanium production from existing assets ramping Previously X (Previously $X - $X million
Slide 8: Additional Materials Appendix
Additional Materials Appendix
Slide 9: Appendix 1 – 2024 Outlook Assumptions
Appendix 1 – 2024 Outlook Assumptions Earnings Drivers 2024 FY Net Interest Expense ~$113M Annual Cash Flow Drivers Capital Expenditures $190M - $230M Depreciation & Amortization ~146M Managed Working Capital(1) Cash Usage of $50M - $100M Full Year Cash Taxes ~$19M Q2 2024: 145.7M shares Avg. Fully
Slide 10: Appendix 2 – Non-GAAP Financial Measures
Appendix 2 ATI Inc. and Subsidiaries Non-GAAP Financial Measures (Unaudited, dollars in millions, except per share amounts) The Company Companyreports reportsitsits financial results financial in accordance results in accordancewith accounting principles with accounting generally principles accepted
Slide 11: Appendix 2 (continued)
Appendix 2 (continued) Fiscal Quarter Ended March 31, 2024 December 31, 2023 April 2, 2023 Reported Adjusted Reported Adjusted Reported Adjusted Numerator for Basic net income per common share - Net income attributable to ATI $ 66.1 $ 68.4 $ 145.7 $ 93.0 $ 84.5 $ 85.6 Effect of dilutive securities 2
Slide 12: Appendix 2 (continued)
Appendix 2 (continued) Fiscal Quarter Ended Latest year ended March 31, 2024 December 31, 2023 April 2, 2023 March 31, 2024 Net income attributable to ATI $ 66.1 $ 145.7 $ 84.5 $ 392.4 Net income attributable to noncontrolling interests 2.3 3.5 2.1 12.8 Net income 68.4 149.2 86.6 405.2 (+) Depreciat
Slide 13: Appendix 2 (continued) – Free Cash Flow
Appendix 2 (continued) Free Cash Flow Free cash flow as defined by ATI includes the total of cash provided by (used in) operating activities and investing activities as presented on the consolidated statements of cash flows, adjusted to exclude cash contributions to the Company’s U.S. qualified defi