Ampco-pittsburgh Corporation · NYSE:AP
Ampco-pittsburgh — Investor Presentation (November 2021)
34 slides from Ampco-pittsburgh's investor presentation, November 2021
Slide 1: Investor Presentation
Producing Quality Products Since 1929 — Always Moving Forward! Investor Presentation November 2021
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements - The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a safe harbor for forward-looking statements made by or on behalf of Ampco-Pittsburgh Corporation (the “Corporation”). This presentation may include, but is not limited to, statements ab
Slide 3: Snapshot
Snapshot Ampco-Pittsburgh (NYSE:AP) Revenue Mix (NYSE: AP-WS) Year Founded 1929 ~ 72% Number of Employees 1,506 Forged and Cast ~ 28% Engineered 2020 Revenue $329M Products Air and Liquid Processing Market Cap (as of 11/2/2021)* * Common shares outstanding 19,093,782; $101M Share price $5.31 #1 Nort
Slide 4: Forged and Cast Engineered Products Segment
Forged and Cast Engineered Products Segment Ampco-Pittsburgh Investor Presentation November 2021 4
Slide 5: Market Share Leader in Forged & Cast Rolls
Market Share Leader in Forged & Cast Rolls $238M Forged and Cast 2020 Net segment sales Engineered #1 in North American & Products #1 European production of forged and cast rolls 96% of segment sales Forged engineered products used in automotive tooling, plastic injection molding, 72% infrastructure
Slide 6: Competitive Advantages
Competitive Advantages The Industry’s Needs Union Electric Steel’s Solutions Over 75% of aluminum and steel The largest, non-government owned products require rolling roll manufacturer in the world Provides the most diverse range of Wide range of roll types required for roll types and chemistries in
Slide 7: What is a "Roll"?
What is a “Roll”? Consumable for rolled steel and aluminum production • A sheet of metal will pass through a series of rolls, flattening the metal like a rolling pin until the required thickness and profile is achieved. • Rolls are consumables; our customers provide the “razor” (the mill); we provid
Slide 8: Steel Production Output
Steel Production Output Production output is beginning to return to pre-pandemic volumes Source: worldsteel *Other Europe includes Bosnia-Herzegovina, Macedonia, Norway, Serbia, Turkey, United Kingdom Ampco-Pittsburgh Investor Presentation November 2021 8
Slide 9: A Fresh Start for Ampco-Pittsburgh
A Fresh Start for Ampco-Pittsburgh Turn Around Stages Stabilize Maximize Grow Strengthening the Improve Increase Asset Balance Sheet Efficiencies Utilization and Operational Efficiencies Divesting Underperforming Invest in State-of-the-art Businesses Equipment Enter Tangential Markets Complete In Pr
Slide 10: A Fresh Start for Ampco-Pittsburgh: Improving Profitability
A Fresh Start for Ampco-Pittsburgh Improving Profitability New Leadership • Brett McBrayer introduced as new CEO in July 2018 with a focus on improving operational performance, reducing complexity, and rightsizing the business for future growth and profitability • Sam Lyon appointed segment presiden
Slide 11: A Fresh Start for Ampco-Pittsburgh: Strengthening the Balance Sheet
A Fresh Start for Ampco-Pittsburgh Strengthening the Balance Sheet 1 2 Net Debt / Adjusted EBITDA below 1X Additional Liquidity at 9/30/2021 Net cash flows provided by operating activities = $33.6M in 2020 Revolving Credit Line = $42M availability Gross proceeds from rights offering = $19.3M in 2020
Slide 12: Resuming Growth and Meaningful Profitability
Resuming Growth and Meaningful Profitability Modernize Production Assets • Replace single-purpose machines with multi-purpose machines • Increased automated processes Expand Addressable Markets • Leverage forged roll production assets to manufacture and enter new open-die markets o Increase non-roll
Slide 13: Resuming Growth: Modernize Production Assets
Resuming Growth and Meaningful Profitability Modernize Production Assets Capital Investment of ~$27M Replace single-purpose machines with multi-purpose machines Expand heat treatment capacity for FEP ✓ Efficiency Improvements ✓ Repair & Maintenance Savings ✓ Working Capital Reduction ✓ Labor Savings
Slide 14: Resuming Growth: Expanding the Addressable Markets
Resuming Growth and Meaningful Profitability Expanding the Addressable Markets Enter new End Markets FEP open-die forgings are used in a variety of Open-die Forged Engineered industries: Products Market = $800M + Aerospace Others Energy 2% 13% 15% Diversified Mix of Industries Aerospace Tool & Die H
Slide 15: Resuming Growth: Expanding the Addressable Market
Resuming Growth and Meaningful Profitability Expanding the Addressable Market Revenue Mix Revenue Mix 2020 2023 Air and Liquid FEP Forged and Cast Rolls Air and Liquid FEP Forged and Cast Rolls Expect threefold increase in FEP open-die forging through new end markets Less reliance on steel market cy
Slide 16: Air and Liquid Processing Segment
Air and Liquid Processing Segment Ampco-Pittsburgh Investor Presentation November 2021 16
Slide 17: Air and Liquid Processing Segment
Air and Liquid Processing Segment Leading Player in Niche Markets $91M 2020 Net segment sales Air and Liquid Heat exchangers and Processing Segment heat transfer products Used in nuclear power, industrial 28% of process and HVAC Segment Sales Large custom air handling systems Used in commercial, ins
Slide 18: Air and Liquid Processing Segment: Key Customers
Air and Liquid Processing Segment Key Customers Ampco-Pittsburgh Investor Presentation November 2021 18
Slide 19: Mission-Critical Functions Across Demanding End Markets
Mission-Critical Functions Across Demanding End Markets Ampco-Pittsburgh Investor Presentation November 2021 19
Slide 20: Competitive Advantages
Competitive Advantages Air and Liquid The Industry’s Needs Processing’s Solutions High quality and reliability that meet Trusted source for research and strict industry certification medical labs, military, and the requirements nuclear industry Ease of selection for custom Proprietary software for q
Slide 21: Resilient Financial Performance Throughout Economic Cycles and COVID-19
Air and Liquid Processing Segment Resilient Financial Performance Throughout Economic Cycles and COVID-19 A decade of Asset Light Model consistently $10 million $38 million in Barriers to entry generating operating income production #1 position in mission-critical 8% to 12% from this segment assets*
Slide 22: Summary Financials
Summary Financials Ampco-Pittsburgh Investor Presentation November 2021 22
Slide 23: Consolidated Financial Trend Improvement
Consolidated Financial Trend Improvement ($MM’s) $30.0 $420.0 (Loss) income from continuing operations & Adjusted EBITDA $0.0 $280.0 Net Sales ($30.0) $140.0 ($60.0) $0.0 2016 2017 2018 2019 2020 (Loss) income from continuing operations, as reported (GAAP) (Loss) income from continuing operations, a
Slide 24: Near-Term Challenges and Opportunities
Near-Term Challenges and Opportunities COVID-19 pandemic • Temporary capacity shutdowns in 2020 to manage supply/demand disruption and protect liquidity Supply chain • Proactive procurement/sourcing actions to mitigate longer lead times disruptions and cost and availability issues for key components
Slide 25: Investment Highlights
Investment Highlights #1 or #2 player in • # 1 in Europe and #1 in North America defensible niche • Growing position in other niche industrial markets markets • Exited non-profitable businesses, increasing asset utilization, Sustainable improving efficiencies improvements in • Expanded adjusted EBIT
Slide 26: Thank You
Thank You ampcopgh.com Ampco-Pittsburgh Investor Presentation November 2021 26
Slide 27: Appendix
Appendix Ampco-Pittsburgh Investor Presentation November 2021 27
Slide 28: Ampco-Pittsburgh Global Footprint
Ampco-Pittsburgh Global Footprint North Tonawanda, NY Gateshead, England Åkers Styckebruk, Sweden Ravne na Koroškem, Slovenia Valparaiso, IN Austintown, OH Taiyuan, China Erie, PA Xinjian Town Yixing, China Amherst, VA Maanshan, China Carnegie, PA Jointly Owned Manufacturing Facilities Lynchburg, VA
Slide 29: Consolidated Financial Quarterly Trend
Consolidated Financial Quarterly Trend ($MM’s) $9.0 COVID-19 Pandemic $120.0 (Loss) income from continuing operations & Adjusted EBITDA $6.0 $90.0 Net Sales $3.0 $60.0 $0.0 $30.0 ($3.0) $0.0 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 (Loss) income from continuing operati
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($000’s) 2016 2017 2018 2019 2020 (Loss) income from continuing operations, as reported (GAAP) $ (54,530) $ (13,769) $ (44,892) $ (10,908) $ 6,446 Impairment charges [1] 26,676 - - 10,082 - Impact of ASU No. 2017-07 on 2016 [2] (945) - - - - Integration-related restructuring
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($000’s) 2019 2020 2021 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Total (Loss) income from continuing operations, as reported (GAAP) $ (11,959) $ (653) $ (1,340) $ 3,044 $ (10,908) $ 4,351 $ (86) $ 178 $ 2,003 $ 6,446 $ 907 $ 469 $ (2,361) $ (985) Impairment charge [1] 10,
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($000’s) 2016 2017 2018 2019 2020 Net (loss) income, as reported (GAAP) $ (79,820) $ (12,089) $ (69,335) $ (20,986) $ 7,970 Add: Income tax provision (benefit) 22,712 (1,355) 268 2,108 (470) Other (income) expense, including interest expense 2,990 3,673 (1,085) (2,541) (2,25
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($000’s) 2017 2018 2019 2020 Total Debt $ 66,153 $ 77,609 $ 70,857 $ 37,243 Less: Cash and Cash Equivalents (18,656) (19,713) (6,960) (16,842) Net Debt (non-GAAP) 47,497 57,896 63,897 20,401 Adjusted EBITDA (non-GAAP) 14,585 17,867 23,200 23,335 Net Debt / Adjusted EBITDA 3.
Slide 34: Non-GAAP Reconciliation Footnotes
Non-GAAP Reconciliation Footnotes [1] Impairment charge for 2016 represents principally the write-off of goodwill associated with the Forged and Cast Engineered Products reporting unit deemed to be impaired. Impairment charge was recognized in the first quarter of 2019 to record the sale of certain
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