Slide 1: Third Quarter 2023 Earnings Presentation
Third Quarter 2023 Earnings Presentation Enabling Technology. Growing Sustainably.
Slide 2: Legal Notices
Legal Notices SAFE HARBOR Please note that in this presentation, we may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statement
Slide 3: Overview & Outlook
Overview & Outlook ELECTRONICS SEQUENTIAL ADJ EBITDA GROWTH IN Q4 IMPROVEMENT COMPELLING VIAFORM® AND STRONG TRAJECTORY INTO 2024 KUPRION PROGRESS 3
Slide 4: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results Constant Currency* Organic* ($ in millions) Q3 2023 Q3 2022 YoY YoY YoY Net Sales $599 $619 (3)% (3)% (3)% Electronics 367 389 (6)% (5)% (5)% Industrial & Specialty 232 229 1% (1)% (1)% GAAP Diluted EPS $(0.13) $0.22 Adj. EBITDA* $134 $134 0% 2% % margin 22.4% 21
Slide 5: Third Quarter 2023 Segment Details
Third Quarter 2023 Segment Details Electronics Net Sales Organic Commentary ($ in millions) Growth* Strong demand for high-reliability alloys in automotive applications offsetting generally Assembly $191 0% weaker electronics market year-over-year Sequential growth of 6% from high-end electronics ra
Slide 6: Balance Sheet and Cash Flow Considerations
Balance Sheet and Cash Flow Considerations Key Cash Flow Items Balance Sheet ▪ Q3 2023 free cash flow* of $75 million ▪ Net debt to adj. EBITDA ratio* of 3.7x on a LTM basis as of September 30, 2023 ▪ Working capital relatively flat sequentially, reflecting ▪ Net debt to adj. EBITDA ratio* of 3.6x1
Slide 7: Full Year 2023 Financial Guidance
Full Year 2023 Financial Guidance Updated as of October 2023 FY Adjusted EBITDA* Approximately $485 million FY Adjusted EPS* Approximately $1.30 FY Free Cash Flow* Approximately $265 million ▪ Q4 assumes typical Electronics seasonality ▪ Expect $4 million impact in Q4 from delayed ViaForm sales due
Slide 8: Appendix
Appendix Enabling Technology. Growing Sustainably.
Slide 9: Reconciliation to Adjusted Share Counts
Reconciliation to Adjusted Share Counts (amounts in millions) Q3 2023 Q3 2022 Basic common shares outstanding 242 243 Number of shares issuable upon vesting of granted Equity Awards 1 2 2 Adjusted common shares outstanding 244 245 Note: Totals may not sum due to rounding 1. Equity awards with target
Slide 10: Net (Loss) Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA
Net (Loss) Income Attributable to Common Stockholders Reconciliation to Adj. EBITDA ($ millions) Q3 2023 Q3 2022 Net (loss) income attributable to common stockholders $(32) $53 Add (subtract): Net income attributable to non-controlling interests 0 0 Income tax expense 15 17 Interest expense, net 13
Slide 11: GAAP Net (Loss) Income Reconciliation to Adjusted Diluted EPS
GAAP Net (Loss) Income Reconciliation to Adjusted Diluted EPS ($ millions, except per share amounts) Q3 2023 Q3 2022 Net (loss) income from continuing operations attributable to common stockholders (32) 53 Reversal of amortization expense 33 29 Adjustment to reverse incremental depreciation expense
Slide 12: Net Debt to Adj. EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis
Net Debt to Adj. EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis ($ millions) LTM Q3 YTD 2023 Q4 2022 2023 Net income attributable to common stockholders $41 $13 $54 Add (subtract): Net income attributable to non-controlling interests — 0 0 Income from discontinued operations, net of ta
Slide 13: Organic Net Sales Growth Reconciliation
Organic Net Sales Growth Reconciliation Three Months Ended September 30, 2023 Change in Pass- Reported Net Constant Organic Net Sales Impact of Currency Through Metals Acquisitions Sales Growth Currency Growth Pricing Electronics (6)% 1% (5)% 0% (0)%1 (5)% Industrial & Specialty 1% (2)% (1)% —% 0% (
Slide 14: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ millions) Q3 2023 Q3 2022 Cash flows from operating activities $87 $127 Capital expenditures (13) (11) Proceeds from disposal of property, plant and equipment 1 — Free cash flow $75 $116 Note: Totals may not sum due to rounding 14
Slide 15: Non-GAAP Definitions
Non-GAAP Definitions Adjusted Earnings Per Share (EPS): Adjusted EPS is a key metric used by management to measure operating performance and trends as management believes the exclusion of certain expenses in calculating adjusted EPS facilitates operating performance comparisons on a period-to-period