Koppers Holdings Inc. · NYSE:KOP
Koppers — Shareholder Meeting (April 2021)
17 slides from Koppers's shareholder meeting presentation, Apr 19, 2021
Slide 1: Amendment to 2020 Long-Term Incentive Plan & 2021 Share Request
Amendment to 2020 Long-Term Incentive Plan & 2021 Share Request April 2021
Slide 2: Seeking Approval of Amendment to 2020 LTIP: Increase of 1.5 Million Shares
Seeking Approval of Amendment to 2020 LTIP: Increase of 1.5 Million Shares Ability to continue to grant equity is critical to support our business strategy and attraction, motivation and retention of our team Use of common shares as part of our compensation program is important; equity-based awards
Slide 3: 2020 Showcased Company Strengths
2020 Showcased Company Strengths Demonstrated the power of our strategy, dedication of our worldwide team, and connection between our people-first culture and achieving outstanding results Designated as an ‘Essential’ business, which enabled Koppers to continue providing critical products and servic
Slide 4: Current Share Pool Insufficient for Equity Compensation Awards Needs
Current Share Pool Insufficient for Equity Compensation Awards Needs Share usage of the prior two years totaled: 2020: 187,701 options, 369,161 time-based RSUs and 232,481 PSUs (at target) 2019: 145,301 options, 233,781 time-based RSUs and 156,287 PSUs (at target) In aggregate, LTI values in 2020 he
Slide 5: Projected Share Dilution: 17.4% on Fully-Diluted Basis
Projected Share Dilution: 17.4% on Fully-Diluted Basis Share dilution impacted by outstanding options: We consider stock options to be a performance-based incentive as they can only be exercised as a result of share price appreciation Over 50% of outstanding LTI awards consist of stock options with
Slide 6: 2021 Equity Grant Practices Continue Long-Term Use of Performance-Based Compensation
2021 Equity Grant Practices Continue Long-Term Use of Performance-Based Compensation Continued focus on performance, with 80% of most senior executive LTI awards tied to absolute and relative stock price performance Modest use of time-based RSUs (20%) Investor friendly relative TSR plan design Requi
Slide 7: Additional Shares Necessary; Shares Will Be Carefully Managed
Additional Shares Necessary; Shares Will Be Carefully Managed Highlights of our equity plan and grant practices include: Performance-based stock units that reinforce our pay-for-performance philosophy Minimum one-year vesting provisions with limited exceptions Limited share recycling provisions No r
Slide 8: Appendix: 2020 Performance & Non-GAAP Reconciliations
Appendix: 2020 Performance & Non-GAAP Reconciliations
Slide 9: Delivered Record-Setting 2020 Accomplishments
Delivered Record-Setting 2020 * Excluding Koppers (Jiangsu) Carbon Chemical Company Limited (KJCC) Accomplishments Zero Harm: All-time best safety performance in 2020 Consolidated Sales*: $1.669 billion 4th consecutive year of growth Record sales year Operating Profit*: $157 million Record year; 25%
Slide 10: Delivered Record-Setting 2020 Accomplishments
Delivered Record-Setting 2020 Accomplishments Second-Highest Operating Cash Flow: 5 of 6 Prior Years’ Cash Flow > $100 million Record Amount in Debt Paydown: Reduced Net Debt by $131.5 million Reduced Net Leverage Ratio to 3.5 at 12/31/20 vs. 4.3 at prior year-end Invested in Capital Expenditures of
Slide 11: Non-GAAP Measures
Non-GAAP Measures This presentation includes unaudited “non-GAAP financial measures” as defined in Regulation G under the Securities Exchange Act of 1934, including adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per share, net debt and net leverage ratio. Koppers believes that the presen
Slide 12: Unaudited Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Unaudited Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Slide 13: Unaudited Reconciliation of Net Income Attributable to Koppers & Adjusted Net Income
Unaudited Reconciliation of Net Income Attributable to Koppers & Adjusted Net Income
Slide 14: Unaudited Reconciliation of Diluted Earnings Per Share & Adjusted Earnings Per Share
Unaudited Reconciliation of Diluted Earnings Per Share & Adjusted Earnings Per Share
Slide 15: Unaudited Reconciliation of Total Debt to Net Debt and Net Leverage Ratio
Unaudited Reconciliation of Total Debt to Net Debt and Net Leverage Ratio
Slide 16: Koppers Holdings Inc.
Koppers Holdings Inc. 436 Seventh Avenue Pittsburgh, PA 15219-1800 Koppers is an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds for the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and constructio
Slide 17: is an integral
is an integral treated wood products, d carb