Luxfer Holdings Plc · NYSE:LXFR
Luxfer — Investor Presentation (November 2021)
25 slides from Luxfer's investor presentation, Nov 8, 2021
Slide 1: Investor Presentation
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 1 INVESTOR PRESENTATION November 9, 2021
Slide 2: Forward-looking statements
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 2 This presentation contains forward-looking statements. Examples of such forward-looking statements include but are not limited to: (i) statements regarding the Company’s results of operations and financial c
Slide 3: Luxfer Overview
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 3 Industrial company focused on advanced material applications 54% 66% 46% 34% Sales Adj. EBITDA Elektron Advanced Materials High Performance Gas Cylinders 1 As of 10/31/2021 2 Adjusted non-GAAP numbers. Recon
Slide 4: Niche Application Examples
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 4 Niche Application Examples Elektron Advanced Materials High Performance Magnesium Alloys Innovation leader in the use of magnesium alloys for unique, high-performance, lightweight alloys, flameless heating t
Slide 5: Industrial Company with Focus on Materials Science
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 5 Zirconium catalysis expertise used to develop solution for electronics coating, pharmaceutical, and dental applications Industrial Company with Focus on Materials Science MATERIALS SCIENCE COMPETENCY DRIVES
Slide 6: Significant Tailwinds for Growth
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 6 Light Weighting Clean Environment & Emissions Safe & Healthy Lifestyle • Magnesium & carbon fiber composite products • Aerospace alloys • CNG & Hydrogen Storage • Auto emission control • Meals Ready-to-Eat •
Slide 7: ESG Achievements & Opportunities
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 7 ESG ACHIEVEMENTS & OPPORTUNITIES Reducing CO2 Impact & Generating Productivity ENVIRONMENT • Committed to 20% reduction in CO2 emissions, 10% reduction in freshwater use, and 20% less waste to landfill by 20
Slide 8: Strong FCF Generation Set Stage for Future Growth
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 8 Strong FCF Generation Set Stage for Future Growth $0 $20 $40 $60 $80 $100 $120 YE'15 (a) YE'18 (a) YE'21 (p) Net Debt All in $M 1.5x 0.6x Net Debt to EBITDA BALANCE SHEET: SIGNIFICANTLY STRENGTHENED $0 $20 $
Slide 9: Financial Performance Overview
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 9 FINANCIAL PERFORMANCE OVERVIEW1 Strategy Execution is Delivering Results 1 2021 figures excludes the impact of Discontinued Operations (see appendix); $414.8 $441.3 $487.9 $443.5 $378.0 2016 2017 2018 2019 2
Slide 10: Luxfer: Now Positioned to Accelerate Growth
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 10 Organic & Inorganic Growth LUXFER: NOW POSITIONED TO ACCELERATE GROWTH Culture and Cost Transformation ACCELERATING GROWTHG • Growth through commercial excellence, new products, and talent • Unlock Portfoli
Slide 11: Cost Transformation Will Support Growth Actions
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 11 COST TRANSFORMATION WILL SUPPORT GROWTH ACTIONS Further Opportunities Identified to Support Margin Strength Launched $20M x 2021 P&L savings target Increased P&L savings target to $24.0M Total P&L savings t
Slide 12: Improving Growth Trajectory
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 12 Improving Growth Trajectory Future Growth Drivers • New products and capabilities in lightweight alloys and higher-pressure composite cylinders • Aerospace demand recovery post-COVID • Increased adoption of
Slide 13: Luxfer B.E.S.T to Support Growth Acceleration
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 13 LUXFER B.E.S.T TO SUPPORT GROWTH ACCELERATION Enhancing Capabilities for Growth, Productivity, and Acquisitions INNOVATION CUSTOMER FIRST Growth Excellence Capital Allocation Values driven performance cultu
Slide 14: Strategic Imperatives for the Next Phase of Value Creation
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 14 Key Capabilities that Will Enable Our Success Materials science expertise applied to gas cylinders, magnesium & zirconium Strong, long-term customer relationship to supply mission critical products and solu
Slide 15: Luxfer Acquisition Framework
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 15 Actively Working Deal Pipeline; Remaining Disciplined on Strategic/Financial Goals IP, Critical Process Technology Niche Products, Applications Geographic Expansion Customer Relationships Strong Cultural Fi
Slide 16: Capital Deployment to Support Growth
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 16 Reinvestment Strong FCF Generation and Balance Sheet Sets Stage for Future Growth CAPITAL DEPLOYMENT TO SUPPORT GROWTH ✓ Investing in strategic growth opportunities and new product innovation ✓ Funding tran
Slide 17: 2021 Financial Guidance
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 17 2021 FINANCIAL GUIDANCE – AS OF 10/26/21 Managing Short-Term Supply Chain Constraints 2021 Guidance Revenue Growth (including FX & Acq) 10% - 14% EPS $1.20 - $1.25 Assumptions Operating Working Capital 21%
Slide 18: Luxfer Vision Next 3-5 Years
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 18 Confident in Our Outlook and Ability to Execute • Leading in Hydrogen / Alternative Fuels • Continuing to partner with customers to invest in new product and solutions • Grow ESG excellence to complement su
Slide 19: Invest With Us
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 19 Pivoting to Growth Industrial company with materials science expertise, doing our part to solve customer’s pressing needs Enhanced portfolio has stronger margin and growth profile with focus on Magnesium Al
Slide 20: Appendices
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 20 APPENDIX Summary Financial Statements and Reconciliation of Non-GAAP Measures APPENDICES
Slide 21: Summary Income Statement
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 21 SUMMARY INCOME STATEMENT1 (Unaudited) 2021 2020 2021 2020 $M Q3 Q3 $M % YTD YTD $M % NET SALES 91.2 77.7 13.5 17.4% 275.4 242.7 32.7 13.5% Cost of sales (70.1) (58.8) (203.2) (181.7) Gross profit 21.1 18.9
Slide 22: Summary Cash Flow
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 22 $M Q3 Q3 YTD YTD Operating activities Net income 4.8 2.6 30.3 12.9 Net loss / (income) from discontinued operations 1.2 0.2 (3.8) 1.7 NET INCOME FROM CONTINUING OPERATIONS 6.0 2.4 26.5 14.2 Equity income of
Slide 23: Reconciliation of Non-GAAP Measures
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 23 RECONCILIATION OF NON-GAAP MEASURES1 (Unaudited) 2021 2020 2021 2020 $M Q3 Q3 YTD YTD Net income 6.0 2.4 26.5 14.2 Accounting charges relating to acquisitions and disposals of businesses: Amortization on ac
Slide 24: Reconciliation of Non-GAAP Measures
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 24 RECONCILIATION OF NON-GAAP MEASURES1 (Unaudited) 2020 2020 2020 2020 2021 2021 2021 $M Q1 Q2 Q3 Q4 Q1 Q2 Q3 EBITA 12.7 7.5 10.5 10.5 14.5 13.5 10.3 Effective tax rate - per income statement 19.1% 19.0% 53.8
Slide 25: Restatement Table for Discontinued Operations
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 25 RESTATEMENT TABLE FOR DISCONTINUED OPERATIONS (Unaudited) 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2019 2020 $M Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY FY Net Sales Gas Cylinders segment 40.3 39.6
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