Slide 1: First Quarter 2020 Earnings Presentation
First Quarter 2020 Earnings Presentation May 5, 2020 © 2020 ATI. All rights reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements. Actual results may differ materially from results anticipated in the forward-looking statements due to various known and unknown risks, many of which we are unable to predict or control. These and additional risk facto
Slide 3: Keep Employees Safe
KEEP EMPLOYEES SAFE © 2020 ATI. All rights reserved. 3
Slide 4: Leadership Priorities
Leadership Priorities OPTIMIZE COST STRUCTURE PRESERVE CASH & TO MATCH NEW DEMAND MAINTAIN LIQUIDITY EXPECTATIONS KEEP EMPLOYEES SAFE SUPPORT CUSTOMERS BE “RECOVERY READY,” THROUGH CONTINUED LEVERAGING SHARE STRONG EXECUTION GAINS FOR GROWTH Maintain a Solid Foundation to Ensure Long-Term Profitabil
Slide 5: Segment Realignment Benefits
Segment Realignment Benefits Improving profitability through enhanced growth opportunities and increased operational efficiency Increases long-term profitable growth potential in each segment Extends and accelerates synergies between businesses Creates broader market access with improved produ
Slide 6: ATI Strategic Markets & Diversified Applications
ATI Strategic Markets & Diversified Applications Q1 2020 YoY FY 2020 Market Comments Revenue % Change* Market Outlook Jet Engine $272M -1% • Overall Q1 demand weakness partially offset by recovery of delayed 2019 volumes • Decline vs. strong prior year period driven by broad industry slowdown Airfra
Slide 7: First Quarter 2020 Highlights
First Quarter 2020 Highlights $M (excl. EPS) Q1 2020 Q1 2019 % Change Revenue – stable Growth across key AA&S segment markets, Revenue $956 $1,005 (5%) led by Defense and HRPF conversion volumes Revenue (excl. divestitures) $956 $957 - Growth in HPMC advanced jet engine HPMC Segment $420 $449 (6
Slide 8: Cash and Liquidity Update
Cash and Liquidity Update Debt Maturity Schedule (1) Balance Sheet and Cash Flow Net Debt/EBITDA(2) Ratio: 2.0x Cash and liquidity at Q1 2020 quarter end Q1 liquidity near $900 million, incl. $639M cash on hand $600 Normal seasonal cash usage inline with expectations $500 Positive cash generat
Slide 9: 2020 Outlook
2020 Outlook Full Year 2020 Key Outlook Assumption Earnings Drivers 737 MAX production restart in Q2 at low rate prior assumption: Q2 restart at moderate rate EPS FCF1 Nickel prices in expected range of $5.00/lb. - $5.50/lb. Suspending EPS $110M - $140M prior assumption: $6.00/lb. to $6.50/l
Slide 10: Leadership Priorities
Leadership Priorities OPTIMIZE COST STRUCTURE PRESERVE CASH & TO MATCH NEW DEMAND MAINTAIN LIQUIDITY EXPECTATIONS KEEP EMPLOYEES SAFE SUPPORT CUSTOMERS BE “RECOVERY READY,” THROUGH CONTINUED LEVERAGING SHARE STRONG EXECUTION GAINS FOR GROWTH Maintain a Solid Foundation to Ensure Long-Term Profitabil
Slide 11: Question & Answer
Question & Answer © 2020 ATI. All rights reserved. 11
Slide 12: Additional Materials Appendix
Additional Materials Appendix
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures Allegheny Technologies Incorporated and Subsidiaries Non-GAAP Financial Measures (Unaudited, dollars in millions, except per share amounts) The Company reports its financial results in accordance with accounting principles generally accepted in the United States of Americ
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Earnings before interest, taxes, depreciaiton and amortization (EBITDA) Latest 12 months ended Three Months Ended Three Months Ended March 31, 2020 March 31, 2020 March 31, 2019 Income before income taxes $ 258.9 $ 34.4 $ 17.1 Interest expense 96.1 21.9 24.8 Depreciation
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Sales Information Industrial Forgings ($ in millions) and Cast Products Reported Businesses Adjusted Total ATI Sales- Q1 2020 $ 955.5 $ - $ 955.5 Total ATI Sales- Q1 2019 1,004.8 (47.5) 957.3 Percentage Change -4.9% -0.2% HPMC Sales- Q1 2020 $ 420.3 $ - $ 420.3 H