Mativ Holdings, Inc. · NYSE:MATV
Mativ — Q4 2022 Earnings Presentation
19 slides from Mativ's earnings presentation, Feb 23, 2023
Slide 1: Mativ 4Q 2022 Earnings Release Presentation
Mativ 4Q 2022 Earnings Release Presentation 1 Mativ 4Q 2022 Earnings Release Presentation
Slide 2: Forward Looking Statements, Non-GAAP Disclosure, & Definitions
Forward Looking Statements, Non-GAAP Disclosure, & Definitions This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws that are subject to the safe harbor created by such laws and other le
Slide 3: Forward Looking Statements, Non-GAAP Disclosure, & Definitions
Forward Looking Statements, Non-GAAP Disclosure, & Definitions Combined Legacy Financial Information Due to the significance of the Neenah merger and the resulting change in our reportable segments, Mativ is providing the supplemental combined legacy financial information set forth in the tables bel
Slide 4: Strong 4Q: Adj. EBITDA Growth, Continued Pricing Benefits, Synergy Outlook Intact Entering 2023
Strong 4Q: Adj. EBITDA Growth, Continued Pricing Benefits, Synergy Outlook Intact Entering 2023 As reported Comparable* ($ millions, except EPS) 4Q:22 4Q:21 4Q:22 4Q:21 Sales $660.1 $390.4 $660.1 $654.7 GAAP Income $2.5 $53.3 N/A N/A GAAP EPS $0.04 $1.68 N/A N/A Adjusted EBITDA $92.4 $47.0 $92.4 $71
Slide 5: Controllable Synergies, Dynamic Environment
Controllable Synergies, Dynamic Environment Global demand uncertainty, mixed signals on economies/inflation De-Stocking Following supply chain constraints and carrying excess inventory, customers are paring back Release liners and protective solutions, highest sales growth and most resilient P
Slide 6: 4Q:22 Results Overview
4Q:22 Results Overview $ millions 4Q:22 Comment s ATM Sales 409.1 Up 9% constant currency organic FBS Sales 251.0 Up 3% constant currency organic Total Sales 660.1 Up 6% constant currency organic GAAP Income / EPS $2.5 / $0.04 Adj. Income / EPS $31.9 / $0.56 $61.6 ATM Adj. EBITDA Comparable*: up 45%
Slide 7: Expect EBITDA Growth in 2023
Expect EBITDA Growth in 2023 Synergies: project $25 million incremental savings in 2023 ≈$15 million from 2022 actions… $20 million run-rate from 2022 actions, mostly org design/SG&A $5 million flow- $15 million flow-through in 2023 through in 2H:22 … PLUS ≈ $10 million from 2023 actions Pro
Slide 8: Our Ambition & Strategic Pillars
Our Ambition & Strategic Pillars To be the global leader in specialty materials, consistently driving growth by engineering bold, innovative solutions that solve our customers’ complex challenges Focus Our Drive Value Lean Into Growth Efforts Creation Core Advantages Mativ Values Material science kn
Slide 9: Diversified Portfolio Approach
Diversified Portfolio Approach Opportunities to increase focus, invest, accelerate, optimize Filtration Protective Release Solutions Liners Accelerated Growth Outsized potential to create value Packaging & Industrials Specialty Paper Healthcare Balanced Efficient Engineered Papers Contribution Retur
Slide 10: Investment Highlights
Investment Highlights New beginning. Tremendous opportunity. Leadership Positions Material Sciences Expertise across diverse technologies, In attractive global market categories collaborative innovation with customers Growth Potential Synergies Multiple drivers support positive Clear pathway to marg
Slide 11: Appendix
Appendix 11 Mativ 4Q 2022 Earnings Release Presentation
Slide 12: Non-GAAP Reconciliation: Segment Reporting
Non-GAAP Reconciliation: Segment Reporting NOTE RE: SEGMENT REPORTING & COMPARABILITY Effective July 6, 2022, in connection with the close of the Neenah merger, Mativ has two reportable segments for financial reporting purposes: Advanced Technical Materials ("ATM") and Fiber-Based Solutions ("FBS").
Slide 13: Non-GAAP Reconciliation: Segment Reporting (cont.)
Non-GAAP Reconciliation: Segment Reporting (cont.) BUSINESS SEGMENTS, AS REPORTED, $ millions Adjusted Operating Profit Three Months Ended Decem ber 31, Year Ended Decem ber 31, Return on Net Sales Sales 2022 2021 2022 2021 2022 2021 2022 2021 ATM $ 48.8 $ 18.6 11.9 % 7.3 % $ 174.8 $ 106.8 12.5 % 11
Slide 14: Non-GAAP Reconciliation: Consolidated Reported Results
Non-GAAP Reconciliation: Consolidated Reported Results Three Months Ended Decem ber 31, Year Ended Decem ber 31, $ millions 2022 2021 2022 2021 Operating profit $ 26.9 $ 10.9 $ 51.4 $ 83.3 Plus: Restructuring and impairment related expenses 3.1 4.4 20.8 10.8 Plus: Purchase accounting adjustments 25.
Slide 15: Non-GAAP Reconciliation: Consolidated Reported Results (cont.)
Non-GAAP Reconciliation: Consolidated Reported Results (cont.) Three Months Ended Decem ber 31, Year Ended Decem ber 31, 2022 2021 2022 2021 Earnings (loss) per share - diluted $ 0.04 $ 1.68 $ (0.18) $ 2.80 Plus: Restructuring and impairment related expenses 0.03 0.13 0.45 0.32 Less: Tax impact of r
Slide 16: Non-GAAP Reconciliation: Consolidated Reported Results (cont.)
Non-GAAP Reconciliation: Consolidated Reported Results (cont.) Three Months Ended Decem ber 31, Year Ended Decem ber 31, $ millions 2022 2021 2022 2021 Net income (loss) $ 2.5 $ 53.3 $ (6.6) $ 88.9 Plus: Interest expense on debt 27.4 14.8 86.8 50.6 Less: Interest income on Brazil tax assessments/set
Slide 17: Non-GAAP Reconciliation: Combined Legacy Neenah and SWM Results for Comparability
Non-GAAP Reconciliation: Combined Legacy Neenah and SWM Results for Comparability Three Months Ended Decem ber 31, 2021 Decem ber 31, 2022 Legacy Mativ Legacy Neenah Com bined for $ millions Neenah Adjustm ents Adjusted Legacy SWM Com parison Mativ (1) Advanced Technical Materials (ATM) Net Sales $
Slide 18: Non-GAAP Reconciliation: Combined Legacy Neenah and SWM Results for Comparability (cont.)
Non-GAAP Reconciliation: Combined Legacy Neenah and SWM Results for Comparability (cont.) Three Months Ended Decem ber 31, 2021 Decem ber 31, 2022 Legacy Mativ Legacy Neenah Com bined for $ millions Neenah Adjustm ents Adjusted Legacy SWM Com parison Mativ Corporate Unallocated GAAP Operating Loss $
Slide 19: Non-GAAP Reconciliation: Sales Results
Non-GAAP Reconciliation: Sales Results Advanced Fiber-Based Consolidated Technical Solutions Mativ Three Months Ended Decem ber 31, 2022 $ millions Mativ Combined 4Q:21 Net Sales 403.2 251.5 654.7 Divestiture/closure adjustments (8.1) — (8.1) Mativ Com bined 4Q:21 Com parable Net Sales $ 395.1 $ 251