Haynes International — Q4 FY2021 Earnings Presentation
16 slides from Haynes International's earnings presentation, Sep 30, 2021
Slide 1: Fiscal Year 2021 Fourth Quarter Results
Fiscal Year 2021 Fourth Quarter Results September 30, 2021 109 Years of Alloy, Process, and Product Innovation FY2021 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 conference call
From our conference call “Our business improvement and transformation initiatives resulted in a 17.5% gross margin and net income of $2.6 million in the fourth quarter. While our fiscal year 2021 aerospace shipments were just 50% of the pre-pandemic fiscal year 2019 levels, we saw the first signs of
Slide 4: More than a century of alloy innovation
More than a century of alloy innovation For 109 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 5: Alloy development is at the very heart of what we do
Alloy development is at the very heart of what we do. More than 53% of our sales are from our HASTELLOY® and HAYNES® alloys we invented. Since 2003, our technical programs have yielded 9 new proprietary alloys. We currently have 22 published U.S. patents and applications. Key Attributes of High-temp
Slide 6: 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 7: Haynes International- synonymous with high-performance alloys
Haynes International- synonymous with high-performance alloys. Our Manufacturing Facilities ROW • Kokomo, Indiana: Other 13% Melting and flat products 23% Aerospace China 9% North America • Arcadia, Louisiana: Net Revenues 38% Net Revenues 53% Tubular products by End Market (FY21) by Region (FY21) •
Slide 8: Key Markets Overview
Key Markets Overview Revenue was up 8.1% sequentially and 19.2% year-over-year. Our backlog increased by $24.4M, or 16.2% over the past quarter. We believe we are well positioned to capitalize on the upcoming anticipated volume improvement in our largest market: aerospace. Published build rates of s
Slide 9: Aerospace Market
Aerospace Market Q4 Fiscal Year 2021 (ending September 2021): Aerospace is a core strength for us, and it is our largest market. Net revenue at $39.0 million, up 16% from Significant reductions in industry last year and up 15% sequentially. build rates, caused by the COVID- Aerospace accounted for 4
Slide 10: Chemical Processing Industry Market
Chemical Processing Industry Market Corrosion-resistant alloys in the CPI market are recovering with economies reopening and oil prices rising, which is driving CapEx spending by chemical companies. We continue to focus on special projects that utilize our proprietary alloys. HASTELLOY® B-3®,C-4, C-
Slide 11: Industrial Gas Turbine Market
Industrial Gas Turbine Market Large turbines are for power generation, and smaller turbines are for pipeline systems. Market share gains are significantly improving volumes. HAYNES® 25, 188, 214®, 230®, 242®, 282®, HR-120®, and HASTELLOY® X alloys Q4 Fiscal Year 2021 (ending September 2021): Net rev
Slide 12: 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-ge
Slide 13: Gross margin recovery is building momentum
Gross margin recovery is building momentum. FY 2019 FY2020 FY2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 kLbs Sold 4,330 5,165 5,121 5,424 4,222 4,326 3,171 2,947 2,792 3,522 3,730 3,966 Revenue $ $107.1 $127.5 $126.0 $129.6 $108.5 $111.6 $80.6 $79.9 $72.2 $82.1 $88.1 $95.3 (in millions) Gross 10.6% 11
Slide 14: 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
Slide 15: Reasons for optimism about the long-term future of Haynes
Reasons for optimism about the long-term future of Haynes: Encouraging to see expanding profitability with the recovery of gross margin at 17.5%, now exceeding pre-pandemic levels. Still ahead, expectations of significant growth in volume and revenue from the anticipated aerospace recovery, as well
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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