Quaker Houghton · NYSE:KWR

Quaker Houghton — Quaker Chemical — Q1 2013 Earnings Presentation

15 slides from Quaker Houghton's earnings presentation, Apr 29, 2013

  1. Slide 1: Quaker Chemical Corporation Investor Conference Call First Quarter 2013 Results

    1 Quaker Chemical Corporation Investor Conference Call April 30, 2013 First Quarter 2013 Results

  2. Slide 2: Regulation G and Forward-Looking Statements

    2 Regulation G The attached charts include Company information that does not conform to generally accepted accounting principles (GAAP). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company a

  3. Slide 3: Speakers

    3 Speakers Michael F. Barry Chairman of the Board, Chief Executive Officer & President Margaret M. Loebl Vice President, Chief Financial Officer & Treasurer Robert T. Traub General Counsel Chart #1

  4. Slide 4: 1st Quarter 2013 Headlines

    4 1 st Quarter 2013 Headlines • Solid net sales and operating income despite challenging environment • Gross margin improvement • Net operating cash flow of $11.3 million enhances strong balance sheet Chart #2

  5. Slide 5: Chairman Comments

    5 Chairman Comments ▪ Positives x Solid sales / margins in a difficult economy x Winning business & leveraging acquisitions x Strong cash flow generation x Liquidity remains a Company strength ▪ Negatives x Weak market conditions, especially in Europe x Challenging outlook for the remainder of the y

  6. Slide 6: Product Volume by Quarter

    6 Product Volume by Quarter 25,000 30,000 35,000 40,000 45,000 50,000 55,000 4Q08 YTD Avg. 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Metalworking Process Chemicals Segment Chart #4

  7. Slide 7: Financial Snapshot

    7 Financial Snapshot Q1 2013 Q1 2012 Net Sales ($Mils.) 176.2 177.6 Gross Margin (%) 35.5 33.7 Operating Margin (%) 9.9 9.4 Net Income attributable to Quaker Chemical Corporation ($Mils.) 13.6 12.4 Adjusted EBITDA ($Mils.) – Trailing Twelve Months 81.9 75.6 Adjusted EBITDA Margin (%) 11.6 10.8 Earni

  8. Slide 8: Gross Margin Percentage

    8 Gross Margin Percentage 33.7% 34.3% 32.7% 34.2% 35.5% 20.0% 25.0% 30.0% 35.0% 40.0% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 QTD Gross Margin Percentage Chart #6 28.0% 34.7% 35.4% 32.6% 33.7% 20.0% 25.0% 30.0% 35.0% 40.0% 2008 2009 2010 2011 2012 YTD Gross Margin Percentage

  9. Slide 9: Baseline Historical Performance

    9 Baseline Historical Performance $40.1 $44.2 $66.8 $73.0 $80.9 $81.9 6.90% 9.80% 12.30% 10.70% 11.40% 11.60% 2008 2009 2010 2011 2012 Q1 2013 Trailing Twelve Months Adjusted EBITDA ($ Mils.) Adjusted EBITDA Margin (%) Chart #7 (Adjusted EBITDA)

  10. Slide 10: Balance Sheet Net Cash / (Debt)

    10 Balance Sheet Net Cash / (Debt) -$100 -$80 -$60 -$40 -$20 $0 $20 $40 $60 2008 2009 2010 2011 2012 Q1 2013 $ Millions Cash ST/LT Debt Net Debt Chart #8

  11. Slide 11: Net Cash Flow From Operations

    11 Net Cash Flow From Operations 6.7 15.2 19.8 21.1 11.3 0 10 20 30 40 50 60 70 80 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 QTD Operating Cash Flow ($ Millions) Chart #9 13.4 41.6 37.5 19.7 62.9 0 10 20 30 40 50 60 70 80 2008 2009 2010 2011 2012 YTD Operating Cash Flow ($ Millions)

  12. Slide 12: Appendix

    12 APPENDIX

  13. Slide 13: Trailing Twelve Months Adjusted EBITDA Reconciliation

    13 Trailing Twelve Months Adjusted EBITDA Reconciliation Chart #10 I = G + H H G = F - D F E = C + D D C = B - A B A Trailing Twelve Months Q1 2013 Q1 2013 Last Nine Months 2012 YTD 2012 Trailing Twelve Months Q1 2012 Q1 2012 Last Nine Months 2011 YTD 2011 Q1 2011 Net income 48,659 13,619 35,040 47,

  14. Slide 14: Annual Adjusted EBITDA Reconciliation

    14 Annual Adjusted EBITDA Reconciliation Chart #11 2008 2009 2010 2011 2012 Net income 9,833 16,058 32,120 45,892 47,405 Depreciation 10,879 9,525 9,867 11,455 12,252 Amortization 1,177 1,078 988 2,338 3,106 Interest expense 5,509 5,533 5,225 4,666 4,283 Taxes on income 4,977 7,065 12,616 14,256 15,

  15. Slide 15: Non-GAAP Earnings Per Diluted Share Reconciliation

    15 Non - GAAP Earnings Per Diluted Share Reconciliation Q1 2013 Q1 2012 GAAP Earnings Per Diluted Share $ 1.04 $ 0.95 Devaluation of the Venezuelan Bolivar 0.03 -- Equity income in a captive insurance company (0.11) (0.04) Non – GAAP Earnings Per Diluted Share $ 0.96 $ 0.91 Chart #12

Quaker Chemical — Q1 2013 Earnings Presentation on 6ix