Quaker Houghton · NYSE:KWR
Quaker Houghton — Quaker Chemical — FY2021 Earnings Presentation
20 slides from Quaker Houghton's earnings presentation, Feb 24, 2022
Slide 1: Fourth Quarter and Full Year 2021 Results Investor Conference Call
Quaker Houghton Fourth Quarter and Full Year 2021 Results Investor Conference Call
Slide 2: Regulation G and Forward-Looking Statements
Regulation G The attached charts include Company information that does not conform to generally accepted accounting principles ("GAAP"). Man agement believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company
Slide 3: Non-GAAP financial information
The information included in this presentation includes non - GAAP (unaudited) financial information that includes EBITDA, adjusted EBITDA, adjusted EBITDA margin, non - GAAP operating income, non - GAAP operating margin, non - GAAP net income, non - GAAP earnings per diluted share, and pro forma net
Slide 4: Speakers
Andy Tometich Chief Executive Officer & President Shane W. Hostetter Senior Vice President, Chief Financial Officer Robert T. Traub Senior Vice President, General Counsel & Corporate Secretary David A. Will Vice President and Global Controller Jeffrey Schnell Senior Director, Investor Relations ©202
Slide 5: Fourth Quarter and Full Year 2021 Headlines
©2020 Quaker Houghton. All Rights Reserved 5 ▪ Fourth quarter net sales of $447.0 million increased 16% compared to the fourth quarter of 2020, driving record full year net sales of $1,761.2 million for 2021 ▪ Fourth quarter and full year reported net income of $18.1 million and $121.4 million and e
Slide 6: Highlights
©2020 Quaker Houghton. All Rights Reserved 6 Highlights » Strong execution navigating significant cost pressures in 4Q21 • Strong sales growth led by pricing actions , new business wins and M&A offset by the automotive semiconductor shortage and supply chain challenges • Gross margins were impacted
Slide 7: Financial Snapshot
©2020 Quaker Houghton. All Rights Reserved 7 Financial Snapshot (dollars in millions, per share amounts) (1) Certain amounts may not calculate due to rounding Q4 2021 Q4 2020 Q3 2021 FY 2021 FY 2020 GAAP Net Sales $ 447.0 $ 385.9 $ 61.2 16% $ 449.1 $ (2.0) 0% $1,761.2 $1,417.7 $ 343.5 24% Gross Prof
Slide 8: Total Company Volume Trend
Q4’21 volumes reflect new business wins offset by the continued impact of the semiconductor shortage on the automotive end market and supply chain constraints which caused some delayed shipments Total Company Volume Trend (k ilograms, in thousands ) 8 ©2020 Quaker Houghton. All Rights Reserved 60,00
Slide 9: Adjusted EBITDA
©2020 Quaker Houghton. All Rights Reserved 9 Adjusted EBITDA (dollars in millions) Healthy demand and strong pricing actions drove record annual adjusted EBITDA in 2021 (1) Results presented above for 2020 and 2021 are the actual results for Quaker Houghton, all other years are pro forma results $21
Slide 10: Leverage and Liquidity Update
Leverage Reported 3.5x 3.4x 3.7x 3.4x 3.2x 3.1x 2.7x 2.7x 2.7x Bank 2.9x 2.8x 3.1x 2.9x 2.8x 2.8x 2.5x 2.5x 2.5x $811 $811 $799 $741 $717 $750 $759 $759 $736 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Net Debt (dollars in millions) ▪ Total debt of $901.3 million and cash of $165.
Slide 11: Appendix: Actual and Non-GAAP Results
Appendix Actual and Non - GAAP Results
Slide 12: Non-GAAP Operating Income Reconciliation
©2020 Quaker Houghton. All Rights Reserved 12 Non - GAAP Operating Income Reconciliation (dollars in thousands, unless otherwise noted) Q4 2021 Q4 2020 FY 2021 FY 2020 Operating income 30,746$ 34,707$ 150,466$ 59,360$ Houghton combination, integration and other acquisition-related expenses Restructu
Slide 13: Adjusted EBITDA & Non-GAAP Net Income Reconciliation
©2020 Quaker Houghton. All Rights Reserved 13 Adjusted EBITDA & Non - GAAP Net Income Reconciliation (dollars in thousands, unless otherwise noted) Q4 2021 Q4 2020 FY 2021 FY 2020 Net income attributable to Quaker Chemical Corporation 18,126$ 48,470$ 121,369$ 39,658$ Depreciation and amortization 21
Slide 14: Non-GAAP EPS Reconciliation
©2020 Quaker Houghton. All Rights Reserved 14 Non - GAAP EPS Reconciliation Q4 2021 Q4 2020 FY 2021 FY 2020 GAAP earnings per diluted share attributable to Quaker Chemical Corporation common shareholders Equity income in a captive insurance company per diluted share (0.05) (0.03) (0.28) (0.07) Hough
Slide 15: Segment Performance
©2020 Quaker Houghton. All Rights Reserved 15 Segment Performance (dollars in thousands) Q4 2021 Q4 2020 FY 2021 FY 2020 Net sales Americas 147,300$ 120,149$ 572,643$ 450,161$ EMEA 114,635 106,641 480,126 383,187 Asia/Pacific 101,236 88,449 388,160 315,299 Global Specialty Businesses 83,870 70,613 3
Slide 16: Quaker Houghton: Forward Together
& Quaker Vg Houghton. Forward Together
Slide 17: Full Year 2019 Pro Forma Reconciliation
©2020 Quaker Houghton. All Rights Reserved 17 Full Year 2019 Pro Forma Reconciliation (dollars in millions) Quaker Houghton Divestitures Other (a) Pro Forma* Net sales 1,134$ 475$ (34)$ (13)$ 1,562$ Net Income (Loss) Attributable to Quaker Houghton 32$ (3)$ (6)$ 10$ 33$ Depreciation and Amortization
Slide 18: Full Year 2018 Pro Forma Reconciliation
18 ©2020 Quaker Houghton. All Rights Reserved Full Year 2018 Pro Forma Reconciliation (dollars in millions) Quaker Houghton Divestitures Other (a) Pro Forma* Net sales 868$ 861$ (53)$ (22)$ 1,655$ Net Income (Loss) Attributable to Quaker Houghton 59$ (0)$ (9)$ 17$ 66$ Depreciation and Amortization 2
Slide 19: Full Year 2017 Pro Forma Reconciliation
19 ©2020 Quaker Houghton. All Rights Reserved Full Year 2017 Pro Forma Reconciliation (dollars in millions) Quaker Houghton Divestitures Other (a) Pro Forma* Net Income (Loss) Attributable to Quaker Houghton 20$ (47)$ (9)$ 9$ (26)$ Depreciation and Amortization 20 55 - 5 80 Interest Expense, Net 1 5
Slide 20: Full Year 2016 Pro Forma Reconciliation
20 ©2020 Quaker Houghton. All Rights Reserved Full Year 2016 Pro Forma Reconciliation (dollars in millions) Quaker Houghton Divestitures Other (a) Pro Forma* Net Income (Loss) Attributable to Quaker Houghton 61$ (37)$ (8)$ 7$ 23$ Depreciation and Amortization 20 55 - 5 80 Interest Expense, Net 1 51