Slide 1: Second Quarter 2019 Conference Call
Second Quarter 2019 Conference Call July 23, 2019 © 2019 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: Second Quarter 2019 Highlights
Second Quarter 2019 Highlights $M (excl. EPS) Q2 2019 Q1 2019 % Chg. Revenue $1,080.4 $1,004.8 +8% Segment Operating Profit $114.5 $61.7 86% Segment Operating Profit Margin 10.6% 6.1% 450 b.p. Net Income* $75.1 $15.0 401% Net Income * $55.0 $15.0 267% (ex. special items) EPS $0.54 $0.12 350% EPS (ex
Slide 4: Five strategic imperatives drive our focus
Five strategic imperatives drive our focus • Execute aerospace production ramp • Sustainable profitability in Flat Rolled Products • Continue to Improve the balance sheet • Create the foundation for future competitiveness and growth • Expand our competitive moat © 2019 ATI. All rights reserved. 4
Slide 5: High Performance Materials & Components
High Performance Materials & Components Segment ($M) Q1 ‘18 Q2 ‘18 Q3 ‘18 Q4 ‘18 Q1 ‘19 Q2 ‘19 Q2 ‘19 YOY Sales $560.7 $591.9 $585.5 $596.1 $601.2 $642.4 +9% Operating Profit $85.5 $97.9 $76.0 $76.0 $72.6 $98.9 +1% % of Sales 15.2% 16.5% 13.0% 12.7% 12.1% 15.4% (110) b.p. Second Quarter vs. Prior Ye
Slide 6: High Performance Materials & Components Revenue by Market
High Performance Materials & Components Revenue by Market Q2 2019 Revenue Airframe Aerospace & Defense Medical Gov’t & Jet Engine Production Defense 6% Energy 13% 5% Oil & Gas 3% Const. & Mining Next Airframe Number of Engines 22% 2% Other Generation 4% Legacy Jet Engine 45% 2014 2015 2016 2017 2018
Slide 7: Flat Rolled Products
Flat Rolled Products Segment ($M) Q1 ‘18 Q2‘18 Q3 ‘18 Q4 ‘18 Q1 ‘19 Q2 ’19 Q2 ‘19 vs. Q1 ‘19 Sales $418.3 $417.6 $434.7 $441.8 $403.6 $438.0 9% Operating Profit / (Loss) $10.9 $26.1 $29.5 $11.3 $(10.9) $15.6 243% % of Sales 2.6% 6.3% 6.8% 2.6% (2.7)% 3.6% 630 b.p. Second Quarter vs. Prior Year ATI F
Slide 8: Flat Rolled Products Revenue by Market & Product
Flat Rolled Products 4% Revenue by Market & Product Q2 2019 Revenue by Market Q2 2019 Revenue by Product Construction & Mining Food Equip/ Energy 9% Appliance 10% 11% Electronics Standard Value 8% Stainless Precision Strip 31% 30% 5% Other Aero & Def 14% Oil & Gas 4% Automotive Titanium Nickel & 27%
Slide 9: Financial Update
Financial Update Free Cash Flow Balance Sheet and Cash Flow $ millions 2015 2016 2017 2018 2019E Cash and liquidity at 6/30/2019 $281 million cash on hand ~420 ~$360 million available on ABL No outstanding borrowings on ABL revolver 288 Cash provided by operations for Q2 2019 was $26 milli
Slide 10: Financial Performance Outlook
Financial Performance Outlook High Performance Materials & Components Segment Q3 2019 outlook adjusted for business divestitures Revenue increases by a low-to-mid single digit percentage versus prior year (2018 reduced by ~$50 million) Operating profit margin improvement of ~150 b.p. YOY FY
Slide 11: Second Quarter 2019 Conference Call Q&A
Second Quarter 2019 Conference Call Q&A © 2019 ATI. All rights reserved. 11
Slide 12: Additional Materials Appendix
Additional Materials Appendix 12
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, management believes that certain non-GAAP financial measures, used in managing the business, may provide users of this