Quaker Houghton · NYSE:KWR

Quaker Houghton — Quaker Chemical — Q1 2015 Earnings Presentation

15 slides from Quaker Houghton's earnings presentation, Apr 29, 2015

  1. Slide 1: First Quarter 2015 Results Investor Conference Call

    1 First Quarter 2015 Results Investor Conference Call April 30, 2015 Quaker Chemical Corporation

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

    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

  3. Slide 3: Speakers

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

  4. Slide 4: First Quarter 2015 Headlines

    First Quarter 2015 Headlines ▪ Volume gains and gross margin drive good results despite foreign exchange impact ▪ Foreign currency exchange negatively impacts sales by 7% and EPS by $0.08 per share ▪ Strong operating cash flow generation, up $10 million from the prior year period Chart #2

  5. Slide 5: Chairman Comments First Quarter 2015

    Chairman Comments First Quarter 2015 ▪ First Quarter 2015 x Volume gains largely offset foreign exchange impact to net sales x Lower oil prices and stronger U.S. Dollar changing the dynamics of customers’ markets x Market share gains continue in a challenging global environment x Strong cash flow ge

  6. Slide 6: Chief Financial Officer – Highlights First Quarter 2015

    1) Increased volumes, including recent acquisitions, offset 7% decline on net sales from foreign currency exchange 2) Changes in foreign exchange rates decrease earnings by $0.08 per share 3) Increased gross margin in the current quarter driven by changes in price and product mix 4) Currency related

  7. Slide 7: Product Volume by Quarter

    Product Volume by Quarter Thousand Kilograms 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 4Q08 YTD Avg. 1Q092Q093Q094Q091Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q15 Chart #5

  8. Slide 8: Financial Snapshot

    Financial Snapshot Q1 2015 Q1 2014 Net Sales ($Mils.) 181.3 181.7 Gross Margin (%) 36.6 35.8 Operating Margin (%) 9.9 10.7 Net Income attributable to Quaker Chemical Corporation ($Mils.) 10.4 12.7 Adjusted EBITDA ($Mils.) – Trailing Twelve Months 99.3 92.0 Adjusted EBITDA Margin (%) 13.0 12.5 Earnin

  9. Slide 9: Gross Margin Percentage

    Gross Margin Percentage 28.0% 34.7% 35.4% 32.6% 33.7% 35.8% 35.7% 20.0% 25.0% 30.0% 35.0% 40.0% 2008 2009 2010 2011 2012 2013 2014 Gross Margin Percentage 35.8% 35.7% 35.4% 35.9% 36.6% 20.0% 25.0% 30.0% 35.0% 40.0% Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Gross Margin Percentage Chart #7

  10. Slide 10: Adjusted EBITDA Baseline Historical Performance

    Adjusted EBITDA Baseline Historical Performance $40.1 $66.8 $73.0 $80.9 $89.6 $99.8 $99.3 $44.2 9.8% 12.3% 10.7% 11.4% 12.3% 13.0% 13.0% 6.9% 2008 2009 2010 2011 2012 2013 2014 Trailing Twelve Months Q1 2015 Adjusted EBITDA ($ Mils.) Adjusted EBITDA Margin (%) 2008 – 2015 CAGR: 13.8% +610 Margin bps

  11. Slide 11: Balance Sheet Net Cash / (Debt)

    Balance Sheet Net Cash / (Debt) -$100 -$80 -$60 -$40 -$20 $0 $20 $40 $60 $80 2008 2009 2010 2011 2012 2013 2014 Q1 2015 $ Millions Cash ST/LT Debt Net Debt Chart #9

  12. Slide 12: Appendix

    APPENDIX

  13. Slide 13: Non-GAAP Earnings Per Diluted Share Reconciliation

    Non - GAAP Earnings Per Diluted Share Reconciliation Chart #10 Q1 2015 Q1 2014 GAAP earnings per diluted share 0.78$ 0.96$ Equity income in a captive insurance company per diluted share (0.06)$ (0.06)$ U.K. pension plan amendment per diluted share -$ 0.05$ Cost streamlining initiative per diluted sh

  14. Slide 14: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation Chart #11 2008 2009 2010 2011 2012 2013 2014 Net income 9,833 16,058 32,120 45,892 47,405 56,339 56,492 Depreciation 10,879 9,525 9,867 11,455 12,252 12,339 12,306 Amortization 1,177 1,078 988 2,338 3,106 3,445 4,325 Interest expense 5,509 5,533 5,225 4,666 4,283 2,922

  15. Slide 15: Trailing Twelve Months Adjusted EBITDA Reconciliation

    Trailing Twelve Months Adjusted EBITDA Reconciliation Chart #12 I = G + H H G = F - D F E = C + D D C = B - A B A Trailing Twelve Months Q1 2015 Q1 2015 Last Nine Months 2014 YTD 2014 Trailing Twelve Months Q1 2014 Q1 2014 Last Nine Months 2013 YTD 2013 Q1 2013 Net income 54,140 10,378 43,762 56,492

Quaker Chemical — Q1 2015 Earnings Presentation on 6ix