Mativ Holdings, Inc. · NYSE:MATV
Mativ — Q2 2023 Earnings Presentation
19 slides from Mativ's earnings presentation, Aug 10, 2023
Slide 1: Mativ 2Q 2023 Earnings Release Presentation
Mativ 2Q 2023 Earnings Release Presentation August 10, 2023
Slide 2: Forward Looking Statements, Non-GAAP Disclosure, & Definitions
Forward Looking Statements, Non-GAAP Disclosure, & Definitions This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws that are subject to the safe harbor created by such laws and other le
Slide 3: Forward Looking Statements, Non-GAAP Disclosure, & Definitions
Forward Looking Statements, Non-GAAP Disclosure, & Definitions Combined Legacy Financial Information Due to the significance of the Neenah merger and the resulting change in our reportable segments, Mativ is providing the supplemental combined legacy financial information set forth in the tables bel
Slide 4: 30%+ Adjusted EBITDA Growth Versus 1Q:23 Driven by Strong Sequential Improvements
30%+ Adjusted EBITDA Growth Versus 1Q:23 Driven by Strong Sequential Improvements in Operations As reported Comparable* ($ millions, except EPS) 2Q:23 2Q:22 2Q:23 2Q:22 Sales $668.3 $426.4 $668.3 $733.2 GAAP Income ($4.5) $11.8 ($4.5) N/A GAAP EPS ($0.08) $0.36 ($0.08) N/A Adjusted EBITDA $87.4 $58.
Slide 5: Strong Pricing, Synergies and Cost Reductions Partially Offsetting Reduced Volumes
Strong Pricing, Synergies and Cost Reductions Partially Offsetting Reduced Volumes ≈ $25 million of price/cost favorability ▪ Expect positive trend to continue ▪ Pricing actions of 2022 remain in effect, input costs are easing ▪ Both FBS and ATM showed strong price/cost performance Synergy actions r
Slide 6: 2Q:23 Results Overview
2Q:23 Results Overview $ millions 2Q:23 Comments ATM Sales $419.8 Down 9% organic FBS Sales $248.5 Down 6% organic Total Sales $668.3 Organic down 8% GAAP Income / EPS ($4.5) / ($0.08) Adj. Income / EPS $27.7 / $0.51 $63.1 Comparable*: down 18%, margin down 130 bps versus prior year ATM Adj. EBITDA
Slide 7: 2Q:23 Key Y/Y Variances & Trends
2Q:23 Key Y/Y Variances & Trends $ millions Trend 2Q:22 Adj. EBITDA $97 (Comparable) Up 5%, holding on to strong pricing actions to recover input cost inflation, expect to Price ≈ $40 moderate throughout 2H:23 Input Cost ≈ ($15) Input costs off peak levels, expect continued improvements Price vs Inp
Slide 8: Sequential Cash Flow Increase; De-leveraging Remains a Priority
Sequential Cash Flow Increase Driven by Improved EBITDA and Aggressively Managing Working Capital; De-leveraging Remains a Priority and Accelerates with Proposed Sale of EP Credit agreement net leverage 4.2x ▪ Includes LTM comparable EBITDA plus synergy adjustment ▪ De-leveraging is top near-term pr
Slide 9: Investment Highlights
Investment Highlights One year together, tremendous opportunity Leadership Positions Material Sciences In attractive global market categories Expertise across diverse technologies, collaborative innovation with customers Growth Potential Multiple drivers support positive outlook Synergies Clear path
Slide 10: Appendix
ANANSNAAANS ANAAANS AANAAN
Slide 11: Non-GAAP Reconciliation: Segment Reporting
Non-GAAP Reconciliation: Segment Reporting NOTE RE: SEGMENT REPORTING & COMPARABILITY Effective July 6, 2022, in connection with the close of the Neenah merger, Mativ has two reportable segments for financial reporting purposes: Advanced Technical Materials ("ATM") and Fiber-Based Solutions ("FBS").
Slide 12: Non-GAAP Reconciliation: Segment Reporting (cont.)
Non-GAAP Reconciliation: Segment Reporting (cont.) BUSINESS SEGMENTS, AS REPORTED, $ millions Non-GAAP Adjustments to Operating Profit Three Months Ended Six Months Ended June June 30, 30, 2023 2022 2023 2022 ATM - Amortization of intangibles and other purchase accounting adjustments $ 14.4 $ 11.1 $
Slide 13: Non-GAAP Reconciliation: Segment Reporting (cont.)
Non-GAAP Reconciliation: Segment Reporting (cont.) BUSINESS SEGMENTS, AS REPORTED, $ millions Non-GAAP Adjustments to Adjusted Operating Profit Three Months Ended Six Months Ended June June 30, 30, 2023 2022 2023 2022 ATM - Depreciation and stock-based compensation $ 12.8 $ 7.6 $ 26.3 $ 15.4 FBS - D
Slide 14: Non-GAAP Reconciliation: Consolidated Reported Results
Non-GAAP Reconciliation: Consolidated Reported Results $ millions Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Operating profit $ 33.6 $ 27.8 $ 42.9 $ 38.4 Plus: Restructuring and impairment related expenses 1.9 2.4 2.7 15.9 Plus: Purchase accounting adjustments 15.4 11.
Slide 15: Non-GAAP Reconciliation: Consolidated Reported Results (cont.)
Non-GAAP Reconciliation: Consolidated Reported Results (cont.) $ millions Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Earnings (loss) per share - diluted $ (0.08) $ 0.36 $ (0.23) $ 0.41 Plus: Restructuring and impairment related expenses 0.01 0.08 0.02 0.51 Less: Tax im
Slide 16: Non-GAAP Reconciliation: Consolidated Reported Results (cont.)
Non-GAAP Reconciliation: Consolidated Reported Results (cont.) $ millions Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net Income (loss) $ (4.5) $ 11.8 $ (12.2) $ 13.4 Plus: Interest expense 28.2 21.1 54.7 35.6 Plus: Interest income on litigation/tax settlement — (0.7) —
Slide 17: Combined Legacy Neenah and SWM Results for Comparability
Non-GAAP Reconciliation: Combined Legacy Neenah and SWM Results for Comparability $ millions Three Months Ended June 30, 2022 June 30, 2023 Legacy Mativ Legacy Neenah Combined for Neenah Adjustments Adjusted Legacy SWM Comparison Mativ Advanced Technical Materials (ATM) (1) Net Sales $ 198.5 $ (17.2
Slide 18: Combined Legacy Neenah and SWM Results for Comparability (cont.)
Non-GAAP Reconciliation: Combined Legacy Neenah and SWM Results for Comparability (cont.) $ millions Three Months Ended June 30, 2022 June 30, 2023 Legacy Mativ Legacy Neenah Combined for Neenah Adjustments Adjusted Legacy SWM Comparison Mativ Corporate Unallocated GAAP Operating Loss $ (13.8) $ (3.
Slide 19: Non-GAAP Reconciliation: Sales Results
Non-GAAP Reconciliation: Sales Results $ millions Non-GAAP Reconciliation of Organic Net Sales Growth Advanced Fiber-Based Consolidated Technical Materials Solutions Mativ Three Months Ended June 30, Mativ Combined 2022 Net Sales $ 469.4 $ 263.8 $ 733.2 Divestiture/closure adjustments (7.9) — (7.9)