Haynes International — Q4 FY2022 Earnings Presentation
17 slides from Haynes International's earnings presentation, November 2022
Slide 1: Fiscal Year 2022 Fourth Quarter Results
Fiscal Year 2022 Fourth Quarter Results September 30, 2022 110 Years of Alloy, Process, and Product Innovation FY2022 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 “We continue to gain momentum. Our revenue and profitability improvement confirm the impact of the fundamental and sustainable changes that our team has implemented. Our backlog was at a company record of $374 million, up 10.5% sequentially and 113% over the past year.” s Mi
Slide 4: Gross margin recovery continues
Gross margin recovery continues FY 2019 FY2020 FY2021 FY2022 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 kLbs Sold 5,121 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 Revenue $ $126 $130 $109 $112 $81 $80 $72 $82 $88 $95 $99 $117 $130 $143 (in millions) GM% 14.4% 16.4%
Slide 5: Lower breakeven point by 25%
Lower breakeven point by 25% Quarterly Volume and Earnings – FY17-FY22 Earnings Lower Breakeven Similar volume, Q4FY22 $16,000 Similar volume, but Q3FY22 but $18.2M more $19.6M more profitable profitable Similar volume, but $11,000 $10.1M more profitable Q2FY22 Similar volume, but $6,000 $7.6M more
Slide 6: More than a century of alloy innovation
More than a century of alloy innovation For 110 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 7: 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 and alloys no one else produces. Since 2003, our technical programs have yielded 9
Slide 8: 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 9: Haynes International- synonymous with high-performance alloys.
Haynes International- synonymous with high-performance alloys. Our Manufacturing Facilities • Kokomo, Indiana: Other ROW 12% Melting and flat products 15% Aerospace China • Arcadia, Louisiana: Net Revenues 47% 7% North America 57% Net Revenues Tubular products by End Market (FY22) by Region (FY22) •
Slide 10: Key Markets Overview
Key Markets Overview Backlog at company record of $373.7 million as of September 30, 2022, up 10.5% from previous quarter and up 113.2% year-over-year. Double-digit, sequential revenue growth in each of the Company’s three major markets with net revenue of $143.8 million, up 10.5% versus previous qu
Slide 11: Aerospace Market
Aerospace Market Q4 Fiscal Year 2022 (ending September 2022): Aerospace is a core strength for us, and Net revenue at $67.6 million, up 74% from last it is our largest market. Recovery of year and up 11% sequentially. Backlog single-aisle builds providing demand increased 14% sequentially. strength.
Slide 12: Chemical Processing Industry Market
Chemical Processing Industry Market Corrosion-resistant alloys in the CPI market are recovering with economies re-opening and higher oil prices, 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 13: Industrial Gas Turbine Market
Industrial Gas Turbine Market Large turbines are for power generation, and smaller turbines are for pipeline systems. Market share gains driving strength of shipments in this market. HAYNES® 25, 188, 214®, 230®, 242®, 282®, HR-120®, and HASTELLOY® X alloys Q4 Fiscal Year 2022 (ending September 2022)
Slide 14: 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 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 strength of our gross margin, solidly exceeding pre-pandemic levels. Further growth in volume, revenue and margin dollars are still ahead. This is driven by strong order entry levels, above
Slide 16: 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 17: 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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