Slide 1: Proven to perform anywhere. First Quarter 2022 Earnings
Proven to perform anywhere. First Quarter 2022 Earnings May 4, 2022 ATI Proprietary and Confidential ©2022 ATI. All rights reserved. 1
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: Key Takeaways
Key Takeaways Performance Balance Sheet Strategic Progress Expanding aerospace recovery Deploying capital for shareholder Portfolio transformation continues to underpins strong financial results returns and aerospace ramp readiness drive focus on high-value products • Sustained strong jet engine rec
Slide 4: Strategic Markets & Diversified Applications
Strategic Markets & Diversified Applications Near-term Q1 ‘22 Market vs. Q1 ‘21 vs. Q4 ‘21 Market Comments Revenue Outlook • Broad-based growth across material and forgings, led by next generation materials for narrowbody aircraft; increased widebody MRO demand Jet Engine $197M +85% +29% • Expect co
Slide 5: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results HPMC Segment $M (excl. EPS) Q1 2022 Q1 2021 % Chg. Q4 2021 % Chg. Aerospace recovery providing tailwinds versus prior periods Revenue: Strong year-over-year and sequential growth in jet engine materials and forgings. Compared to prior year, revenues Revenue $83
Slide 6: Cash & Liquidity
Cash & Liquidity Balance Sheet and Cash Flow (1) (1) Net Debt/Adj. EBITDA Ratio: 4.3x Q1 Results Liquidity of ~$685 million, including $317 million cash on hand Managed working capital 41.3% of sales(2); increased vs. YE 2021 $500 Proactive purchasing of strategic raw material safety stocks $4
Slide 7: Second Quarter & Full Year 2022 Outlook
Second Quarter & Full Year 2022 Outlook Second Quarter 2022 Key Assumptions Earnings Drivers Adj. EPS1 Jet engine-driven aerospace demand ramp across 2022 $0.32 – $0.40 Narrow body production increases + Increased YOY airframe market (revised from Flat YOY) No significant new pandemic-related
Slide 8: Additional Materials Appendix
Additional Materials Appendix • Above-market growth rate • EBITDA margin expansion • Financial leverage ~2x net debt : EBITDA • Fully funded pension • ROIC above cost of capital (WACC) 8
Slide 9: Non-GAAP Financial Measures
All 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 America (“GAAP”). However, man
Slide 10: Net income per share reconciliation
All ‘Numerator for Basic net income (loss) per common share - ‘Net income (loss) attributable to ATI Effect of dilutive securities Numerator for Diluted net income (loss) per common share - ‘Net income (loss) attributable to ATI after assumed conversions Denominator for Basic net income (loss) per c
Slide 11: Adjusted EBITDA reconciliation
All ‘Net income (loss) attributable to ATI ‘Net income attributable to noncontrolling interests Net income (loss) (4) Depreciation and Amortization (+) Interest Expense (¢/-) Income Tax Provision Benefit) (G) Strike related costs (a) (+/-) Restructuring and other charges (credits) (b) () Retirement
Slide 12: Adjusted HPMC Segment EBITDA reconciliation
All Three Months Ended ‘March 31,2022 December 31, 2021 HPMC Segment EBITDA $ 6 Ss 61 Government subsidies (g) 2) 6) Adjusted HPMC Segment EBITDA 46 36 HPMC Segment Sales s 342 S 314 HPMC Segment EBITDA Margin 19.9% 19.4% Adjusted HPMC Segment EBITDA Margin 13.5% 17.8% {a) The latest twelve months e
Slide 13: Free Cash Flow and Managed Working Capital definitions
All Free Cash Flow Free cash flow as defined by ATI includes the total of cash provided by (used in) operating activities and investing activities as presented on the consolidated statements of cash flows, adjusted to exclude cash contributions to the Company's U.S. qualified defined benefit pension