Slide 1: First Quarter 2024 Earnings Presentation
First Quarter 2024 Earnings Presentation Enabling Technology. Growing Sustainably.
Slide 2: Legal Notices
Legal Notices SAFE HARBOR Please note that in this presentation, we may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statement
Slide 3: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results Q1 Highlights • Constant currency Adj. EBITDA* growth of 17% • High-teens volume growth in semiconductor vertical • Adj. EBITDA* margins +260 bps • Another step towards Kuprion commercialization with first product qualification payment Constant Currency* Organic*
Slide 4: First Quarter 2024 Segment Details
First Quarter 2024 Segment Details Electronics Net Sales Organic Key Drivers ($ in millions) Growth* Assembly $168 (2)% Soft automotive market impacting demand primarily in the Americas and Europe Circuitry $112 8% Memory disk growth with demand recovery in cloud and enterprise server markets Semico
Slide 5: Balance Sheet and Cash Flow Considerations
Balance Sheet and Cash Flow Considerations Key Cash Flow Items Balance Sheet Management ▪ Q1 2024 free cash flow* of $39 million ▪ Net debt to adj. EBITDA ratio* of 3.3x on a LTM basis as of March 31, 2024 o In-line with FY 2024 expectations despite larger ▪ Based on guidance, on track for net debt
Slide 6: 2024 Financial Guidance
2024 Financial Guidance As of April 2024 FY Adj. EBITDA* Q2’24 Adj. EBITDA* $515M - $530M Approximately $125M Free Cash Flow* Additional Considerations ▪ Q2 Adj. EBITDA guidance approximately flat $280M to $300M sequentially ex-currency ▪ FX Headwind (at mid-April rates): ▪ Cash interest: approximat
Slide 7: Appendix
Appendix Enabling Technology. Growing Sustainably.
Slide 8: Reconciliation to Adjusted Share Counts
Reconciliation to Adjusted Share Counts (amounts in millions) Q1 2024 Q1 2023 Basic common shares outstanding 242 241 Number of shares issuable upon vesting of granted Equity Awards 1 2 3 Adjusted common shares outstanding 245 244 Note: Totals may not sum due to rounding 1. Equity awards with target
Slide 9: Net Income Reconciliation to Adjusted EBITDA
Net Income Reconciliation to Adjusted EBITDA ($ millions) Q1 2024 Q1 2023 Net income $56 $43 Add (subtract): Income tax expense 14 17 Interest expense, net 14 12 Depreciation expense 10 10 Amortization expense 30 30 EBITDA 124 111 Adjustments to reconcile to Adjusted EBITDA: Restructuring expense 2
Slide 10: Net Income Reconciliation to Adjusted EPS
Net Income Reconciliation to Adjusted EPS ($ millions, except per share amounts) Q1 2024 Q1 2023 Net income $56 $43 Net income attributable to non-controlling interests 0 (0) Reversal of amortization expense 30 30 Adjustment to reverse incremental depreciation expense from acquisitions 0 0 Restructu
Slide 11: Net Debt to Adjusted EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis
Net Debt to Adjusted EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis ($ millions) LTM Q1 YTD 2024 Q2 2023 Q3 2023 Q4 2023 2024 Net income $56 $30 $(32) $77 $131 Add (subtract): (Income) loss from discontinued operations, net of tax — (3) — 1 (2) Income tax expense (benefit) 14 21 15 (40
Slide 12: Organic Net Sales Growth Reconciliation
Organic Net Sales Growth Reconciliation Three Months Ended March 31, 2024 Change in Pass- Reported Net Constant Organic Net Sales Impact of Currency Through Metals Acquisitions Sales Growth Currency Growth Pricing Electronics 3% 2% 5% 0% (1)% 4% Industrial & Specialty (4)% 1% (3)% —% 0% (3)% Total 0
Slide 13: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ millions) FY 2024 Q1 2024 Q1 2023 Outlook Cash flows from operating activities $58 $54 ~$330-360 Capital expenditures (19) (9) $(50)-(60) Proceeds from disposal of property, plant and equipment — 1 — Free cash flow $39 $45 ~$280-$300 Note: Totals may not sum due to r
Slide 14: Non-GAAP Definitions
Non-GAAP Definitions Adjusted Earnings Per Share (EPS): Adjusted EPS is a key metric used by management to measure operating performance and trends as management believes the exclusion of certain expenses in calculating adjusted EPS facilitates operating performance comparisons on a period-to-period