Haynes International — Q4 FY2023 Earnings Presentation
16 slides from Haynes International's earnings presentation, November 2023
Slide 1: Fiscal Year 2023 Fourth Quarter Results
Fiscal Year 2023 Fourth Quarter Results September 30, 2023 111 Years of Alloy, Process, and Product Innovation FY2023 1
Slide 2: Forward-looking statements
Forward-looking statements The information contained in this presentation, and in the oral statements made as part of the presentation, may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and exp
Slide 3: From our earnings release
From our earnings release “We are proud of everything we accomplished in FY23, both in our 4th quarter and for the fiscal year. Revenue in the fourth quarter exceeded $160 million, and increased over 20% for the fiscal year, driven by company record revenues in both the aerospace and industrial gas
Slide 4: Strength of gross margin continues
Strength of gross margin continues FY19 FY20 FY21 FY22 FY23 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 kLbs 5,424 4,222 4,326 3,171 2,947 2,792 3,522 3,730 3,966 3,877 4,338 4,541 4,833 4,552 4,667 4,427 4,867 Sold Sales $ $130 $109 $112 $81 $80 $72 $82 $88 $95 $99 $117 $130 $144 $133 $153 $
Slide 5: More than a century of alloy innovation
More than a century of alloy innovation For 111 years, Haynes International has been a leading developer, manufacturer, and distributor of high‐performance nickel‐ and cobalt‐based alloys for use in high‐ temperature and corrosion applications. Our focus is on innovation, differentiation, and custom
Slide 6: Alloy development is at the very heart of what we do.
Alloy development is at the very heart of what we do. More than 60% of our sales are from our HASTELLOY® and HAYNES® alloys we invented. Approximately 20% of our sales, and 1/3 of our margin is from proprietary alloys that no one else produces. Since 2003, our technical programs have yielded nine ne
Slide 7: Our products are out of this world...literally.
Our products are out of this world...literally. Our mission-critical alloys have flown on The Perseverance Rover every Apollo and space shuttle flights, Landed February 18, 2021 lowered the first Viking Mars Lander on August 20, 1975, and continue to be a part of historic space exploration missions.
Slide 8: Haynes International- synonymous with high-performance alloys.
Haynes International- synonymous with high-performance alloys. Our Manufacturing Facilities • Kokomo, Indiana: Other ROW 14% 15% Melting and flat products Aerospace China • Arcadia, Louisiana: Net Revenues 49% 5% North America 58% Net Revenues Tubular products by End Market (FY23) by Region (FY23) •
Slide 9: Key Markets Overview
Key Markets Overview Backlog of $460.4M as of September 30, 2023, up 23.2% year-over-year, led by strength in aerospace and industrial gas turbine demand. Sequentially backlog declined $(7.7)M due to strengthening Q4 revenue levels and lower quoted lead times on certain products which can impact ord
Slide 10: Aerospace Market
Aerospace Market Q4 Fiscal Year 2023 (ending September 2023): Aerospace is a core strength for us, and Net revenue at $81.8 million, up 21% from last it is our largest market. Single-aisle year and up 6% sequentially. Backlog at $283.6 build schedule and forecasts remain million at 9/30/23. high, in
Slide 11: Chemical Processing Industry Market
Chemical Processing Industry Market Corrosion-resistant alloys in the CPI market are driven by our continued strong applications development, along with our technical, commercial and manufacturing support. Mix management efforts are decreasing volumes of certain lower-value alloys. HASTELLOY® B-3®,C
Slide 12: Industrial Gas Turbine Market
Industrial Gas Turbine Market Large turbines are for power generation, and smaller turbines are for pipeline systems. Our share gain and new alloy initiatives have had a significant and long lasting impact. HAYNES® 25, 188, 214®, 230®, 242®, 282®, HR-120®, and HASTELLOY® X alloys Q4 Fiscal Year 2023
Slide 13: Other Markets and Other Revenue
Other Markets and Other Revenue Emerging technologies allow us to place our new and existing alloys into broader applications and new markets, which can represent potential future commercial value, as well as advance ESG initiatives. Application Examples: Fuel cells, concentrated solar power, next-g
Slide 14: Reasons for optimism about the long-term future of Haynes
Reasons for optimism about the long-term future of Haynes Expanding profitability with the strength of our gross margin, solidly exceeding pre- pandemic levels, when adjusting for the cyber incident and raw materials. Further growth in volume, revenue and margin dollars are still ahead. This is driv
Slide 15: Our four foundational pillars create a compelling investment
Our four foundational pillars create a compelling investment Industry leader in developing new alloys and new applications for existing alloys Innovation Market-leading producer of high-performance nickel- and cobalt-based alloys Best-in-class sales and distribution infrastructures that facilitate s
Slide 16: Haynes International alloys developed and manufactured throughout our history
Haynes International alloys developed and manufactured throughout our history Up to the 1950s The 60s through the 90s Through the 21st Century STELLITE® (1912) HASTELLOY® C-276 (1968) HASTELLOY® G-50® (1989) HASTELLOY® C-22HS® (2004) STELLITE® 6B (1913) HAYNES® 188 (1968) ULTIMET® (1990) HASTELLOY®
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