Tredegar Corporation · NYSE:TG
Tredegar — Q4 2021 Earnings Presentation
32 slides from Tredegar's earnings presentation, Mar 21, 2022
Slide 1: 2021 Fourth Quarter & Full Year Financial Results
2021 Fourth Quarter & Full Year Financial Results March 21, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this presentation are forward-looking statements. Pursuant to federal securities regulations, we have set forth cautionary statements relating to those forward-looking statements in our Annual Report on Form 10-K for the year ended December
Slide 3: Tredegar Corporation 2021 Fourth Quarter and Full Year Results
Tredegar Corporation 2021 Fourth Quarter and Full Year Results (in millions, except per share data) 4Q 2021 4Q 2020 2021 2020 Net Sales1 213.3 $186.1 $798.2 $729.6 Net Income from Ongoing Operations2 $6.2 $9.7 $39.6 $50.8 Diluted EPS from Ongoing Operations2 $0.18 $0.29 $1.18 $1.51 “We continue to m
Slide 4: Aluminum Extrusions (Bonnell Aluminum)
Aluminum Extrusions (Bonnell Aluminum) 2021 Fourth Quarter and Full Year Results Fourth Quarter Performance Full Year Performance (in millions) 4Q 21 4Q 20 (in millions) 2021 2020 Volume (lbs.) 44.6 46.4 (4)% Volume (lbs.) 183.4 186.4 (2)% Net Sales1 $144.8 $116.1 25% Net Sales1 $539.3 $455.7 18% On
Slide 5: PE Films
PE Films (Surface Protection, Polyethylene Overwrap Films & Films for Other Markets) 2021 Fourth Quarter and Full Year Results Fourth Quarter Performance Full Year Performance (in millions) 4Q 21 4Q 20 (in millions) 2021 2020 Volume (lbs.) 9.4 11.8 (21)% Volume (lbs.) 39.4 45.2 (13)% Net Sales1 $31.
Slide 6: Customer Product Transitions in Surface Protection
PE Films Customer Product Transitions in Surface Protection The Surface Protection component of PE Films supports manufacturers of optical and other specialty substrates used in flat panel display products. These films are primarily used by customers to protect components of displays in the manufact
Slide 7: Flexible Packaging Films (Terphane)
Flexible Packaging Films (Terphane) 2021 Fourth Quarter and Full Year Results Fourth Quarter Performance Full Year Performance (in millions) 4Q 21 4Q 20 (in millions) 2021 2020 Volume (lbs.) 25.9 28.0 (8)% Volume (lbs.) 104.6 113.1 (8)% Net Sales1 $37.4 $34.1 10% Net Sales1 $140.0 $134.6 4% Ongoing
Slide 8: 2021 Financial Highlights
Tredegar Corporation 2021 Financial Highlights ($ in millions) Cash Flows from Operations $70.6 Capital Expenditures $27.4 Dividends Paid $16.2 Net Debt (Cash)1 $42.5 Leverage ratio2 0.81x 1 As of 12/31/2021. See Note 5 in GAAP to Non-GAAP Reconciliations for more information and a reconciliation of
Slide 9: Appendix
‘Tredegar an < ) Appendix
Slide 10: Major Product Groups, End Markets, Customers, Competitors
Major Product Groups Primary End Markets Customers Competitors Aluminum Extrusions Custom designed, fabricated and Building and Construction: Curtain walls, storefront Glazing contractors and Hydro Extrusions North finished aluminum extrusions; value- entrances, commercial windows & doors, commercia
Slide 11: Tredegar's Global Presence
Tredegar’s Global Presence 10
Slide 12: Tredegar at a Glance
Tredegar at a Glance Business Strengths Aluminum Extrusions ➢ Industry-leading position in non-residential building and construction and value-added OEM components in North American extrusions market ➢ Market-focused manufacturing operations (including aluminum log casting capabilities) and world-cl
Slide 13: Aluminum Extrusions Business Profile
Aluminum Extrusions Business Profile Key Market Drivers • Strong demand for finished products, including anodized, $539 million 2021 Net Sales1 painted products and fabricated components • Growing aluminum content in vehicles, driven by CAFE 14% Electrical & (corporate average fuel economy) standard
Slide 14: Aluminum Extrusions: Key Markets
Aluminum Extrusions Key Markets - B&C/Automotive/Specialty 13
Slide 15: Automotive Aluminum Extrusion Applications
Aluminum Extrusions Automotive Aluminum Extrusion Applications ➢ Crash management systems – beams and mounting plates, crush cans ➢ Roof rails ➢ Electrical battery trays ➢ Air conditioner tube connectors Aluminum Overview Film Products Financials 14 Extrusions
Slide 16: Aluminum Extrusions Annual Historical Financials
Aluminum Extrusions Annual Historical Financials 2 Net Sales1 ($ in millions) EBITDA from Ongoing Ops ($ in millions) $600 573 530 539 $80 467 66 66 456 59 55 56 $300 $40 $0 $0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Volume (lbs. in millions) Capital Expenditures ($ in millions) 300 $30 26
Slide 17: PE Films Business Profile
PE Films Business Profile $119 million 2021 Net Sales1 Key Growth Drivers • “Internet of Things” leading to greater connectivity 26% Overwrap and more displays and semiconductors Packaging • Thinner devices with increasing resolution and larger screen size • Demographic and workplace trends shifting
Slide 18: End-Use Markets for Surface Protection Products
PE Films End-Use Markets for Surface Protection Products 17
Slide 19: Surface Protection Overview
PE Films Surface Protection Overview Typical LCD Optical Stack (examples: TVs, Smartphones) 18
Slide 20: PE Films Annual Historical Financials
PE Films Annual Historical Financials Net Sales1 ($ in millions) EBITDA from Ongoing Ops ($ in millions) $200 45 41 $40 37 $150 134 139 32 128 128 119 28 $100 $20 $50 $0 $0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Volume (lbs. in millions) Capital Expenditures ($ in millions) 44 45 $10 9 42
Slide 21: Flexible Packaging Films Business Profile
Flexible Packaging Films Business Profile $140 million 2021 Net Sales1 Key Growth Drivers • Growing end-user demand for convenience foods, lighter packaging and branded consumer 34% products North America & • Packaging innovation driving demand for flexible Other packaging Customers • Global and reg
Slide 22: Flexible Packaging Films End-Use and Value-Add Products
Flexible Packaging Films End-Use and Value-Add Products 21
Slide 23: Flexible Packaging Films Annual Historical Financials
Flexible Packaging Films Annual Historical Financials Net Sales1 ($ in millions) EBITDA from Ongoing Ops ($ in millions) $200 $40 31 32 134 135 140 $30 124 108 $100 $20 15 11 $10 8 $0 $0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Volume (lbs. in millions) Capital Expenditures ($ in millions)
Slide 24: Tredegar Annual Historical Financials
Tredegar Corporation Annual Historical Financials Net Sales1 ($ in millions) Consolidated EBITDA from Ongoing Ops ($ in millions) 2 $150 $900 825 797 798 704 730 92 96 $100 84 81 $600 77 $300 $50 $0 $0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Earnings Per Share from Ongoing Ops3 Capital Exp
Slide 25: Capital Expenditures – History & Projections
Tredegar Corporation Capital Expenditures – History & Projections ($ in millions) 2022 2017 2018 2019 2020 2021 Projection2 Aluminum Extrusions $25.7 $13.0 $17.9 $10.3 $18.9 $30 PE Films1 4.6 2.5 8.6 6.0 3.0 5 Flexible Packaging 3.6 5.4 8.9 5.0 5.6 8 Corporate 0.1 0.4 0.2 0.2 (0.1) 0 Total $34.0 $21
Slide 26: Quarterly Cash Dividend History
Tredegar Corporation Quarterly Cash Dividend History $0.12 $0.11 $.09 $.07 $.06 $.045 1996 -- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Special dividends of $5.97 per share in 2020 and $0.75 per share in 2012 25
Slide 27: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations
Slide 28: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations On October 30, 2020, the Company completed the sale of its personal care films business ("Personal Care Films"), w hich w as part of its PE Films segment. The transaction excluded the packaging film lines and related operations located at the Pottsville, Pennsylvania
Slide 29: Summary Financial Information
GAAP to Non-GAAP Reconciliations 2. Summary Financial Information Year Ended Decem ber 31, (in millio ns) 2017 2018 2019 2020 2021 Income and expense relating to ongoing operations: Total EBITDA for segments (a) $ 103.4 $ 109.0 $ 121.5 $ 130.8 $ 115.3 Pension expense (10.1) (10.4) (9.6) (14.6) (14.1
Slide 30: Summary Financial Information (continued)
GAAP to Non-GAAP Reconciliations 2. Summary Financial Information (continued) Notes: (a) Tredegar’s presentation of segment earnings before interest, taxes, depreciation and amortization from ongoing operations (“EBITDA") from ongoing operations aligns w ith key metrics used by the Chief Operating D
Slide 31: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 4. The after-tax effects of losses associated w ith plant shutdow ns, asset impairments and restructurings and gains or losses from the sale of assets and other items (w hich includes unrealized gains and losses for an investment accounted for under the fair value me
Slide 32: Net Debt Reconciliation
GAAP to Non-GAAP Reconciliations 5. Net debt is a non-GAAP financial measure that is not intended to represent debt as defined by GAAP, but is utilized by management in evaluating financial leverage and equity valuation. A calculation of net debt is show n below : (In millions) December 31, December