Ampco-pittsburgh Corporation · NYSE:AP
Ampco-pittsburgh — Investor Presentation (June 2022)
34 slides from Ampco-pittsburgh's investor presentation, June 2022
Slide 1: Investor Presentation June 2022
Producing Quality Products Since 1929 — Always Moving Forward! Investor Presentation June 2022
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements - The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a safe harbor for forward-looking statements made by us or on behalf of the Corporation. Presentation may include, but is not limited to, statements about operating performance, trends a
Slide 3: Disclaimer for Offer to Exercise Warrants to Purchase Common Stock
Disclaimer for Offer to Exercise Warrants to Purchase Common Stock No Offer or Solicitation This presentation is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there
Slide 4: Snapshot
Snapshot Ampco-Pittsburgh (NYSE:AP) Revenue Mix (NYSE: AP-WS) Year Founded 1929 ~ 75% Forged and Cast Number of Employees 1,482 Engineered ~ 25% Products Air and Liquid 2021 Revenue $345M Processing Market Cap (as of 5/3/2022)* * Common shares outstanding 19,190,536; $123M Share price $5.51 #1 North
Slide 5: Forged and Cast Engineered Products Segment
Forged and Cast Engineered Products Segment Ampco-Pittsburgh Investor Presentation June 2022 5
Slide 6: Market Share Leader in Forged & Cast Rolls
Market Share Leader in Forged & Cast Rolls $260M Forged and Cast 2021 Net segment sales Engineered #1 in North American & Products #1 European production of forged and cast rolls 90% of segment sales Forged engineered products used in automotive tooling, plastic injection molding, 75% infrastructure
Slide 7: Competitive Advantages
Competitive Advantages The Industry’s Needs Union Electric Steel’s Solutions Over 75% of aluminum and steel The largest, non-government owned products require rolling roll manufacturer in the world Provides the most diverse range of Wide range of roll types required for roll types and chemistries in
Slide 8: What is a "Roll"?
What is a “Roll”? Consumable for rolled steel and aluminum production • A sheet of metal will pass through a series of rolls, flattening the metal like a rolling pin until the required thickness and profile is achieved. • Rolls are consumables; our customers provide the “razor” (the mill); we provid
Slide 9: Strategic Game Plan for Ampco-Pittsburgh
Strategic Game Plan for Ampco-Pittsburgh Turn Around Stages 2018 - 2020 2021 - 2023 Future State Stabilize Maximize Grow New Leadership Further Improve Increase Asset Efficiencies Utilization and Strengthened the Operational Efficiencies Balance Sheet Invest in State-of-the-art Equipment Expansion i
Slide 10: Resuming Growth and Meaningful Profitability
Resuming Growth and Meaningful Profitability Modernize Production Assets • Replace single-purpose machines with multi-purpose machines • Increased automated processes Expand Addressable Markets • Leverage forged roll production assets to manufacture and enter new open-die forging markets o Increase
Slide 11: Resuming Growth: Modernize Production Assets
Resuming Growth and Meaningful Profitability Modernize Production Assets Capital Investment of ~$27M Replace single-purpose machines with multi-purpose machines Expand forged and heat treatment capacity for FEP ✓ Efficiency Improvements ✓ Repair & Maintenance Savings ✓ Working Capital Reduction ✓ La
Slide 12: Expanding the Addressable Markets
Resuming Growth and Meaningful Profitability Expanding the Addressable Markets Enter new End Markets FEP open-die forgings are used in a variety of Open-die Forged Engineered industries: Products Market = $800M + Aerospace Others Energy 2% 13% 15% Diversified Mix of Industries Aerospace Tool & Die H
Slide 13: Expanding the Addressable Market
Resuming Growth and Meaningful Profitability Expanding the Addressable Market Revenue Mix Revenue Mix 2021 2023 Air and Liquid FEP Forged and Cast Rolls Air and Liquid FEP Forged and Cast Rolls Expect threefold increase in FEP open-die forging through new end market penetration Less reliance on stee
Slide 14: Air and Liquid Processing Segment
Air and Liquid Processing Segment Ampco-Pittsburgh Investor Presentation June 2022 14
Slide 15: Air and Liquid Processing Segment: Leading Player in Niche Markets
Air and Liquid Processing Segment Leading Player in Niche Markets $85M 2021 Net segment sales Air and Liquid Heat exchangers and Processing Segment heat transfer products Used in nuclear power, industrial 29% of process and HVAC Segment Sales Large custom air handling systems Used in commercial, ins
Slide 16: Air and Liquid Processing Segment Key Customers
Air and Liquid Processing Segment Key Customers Ampco-Pittsburgh Investor Presentation June 2022 16
Slide 17: Mission-Critical Functions Across Demanding End Markets
Mission-Critical Functions Across Demanding End Markets Ampco-Pittsburgh Investor Presentation June 2022 17
Slide 18: Competitive Advantages
Competitive Advantages Air and Liquid The Industry’s Needs Processing’s Solutions High quality and reliability that meet Trusted source for research and strict industry certification medical labs, military, and the requirements nuclear industry Ease of selection for custom Proprietary software for q
Slide 19: Resilient Financial Performance Throughout Economic Cycles and COVID-19
Air and Liquid Processing Segment Resilient Financial Performance Throughout Economic Cycles and COVID-19 A decade of Asset Light Model $10 million consistently $34 million in average adjusted Barriers to entry generating production #1 position operating income in mission-critical 8% to 12% assets**
Slide 20: Air and Liquid Processing Segment Strategies for Growth
Air and Liquid Processing Segment Strategies for Growth • New leadership pivoting towards asset light growth strategy model • Investment in additional sales and support resources to increase sales volume • Create business development team to identify new opportunities Sales Growth • Increase product
Slide 21: Summary Financials
Summary Financials Ampco-Pittsburgh Investor Presentation June 2022 21
Slide 22: Consolidated Financial Trend Improvement
Consolidated Financial Trend Improvement ($MM’s) COVID-19 Pandemic $30.0 $420.0 (Loss) income from continuing operations & Adjusted EBITDA $0.0 $280.0 Net Sales Inflation, supply chain ($30.0) headwinds $140.0 ($60.0) $0.0 2016 2017 2018 2019 2020 2021 (Loss) income from continuing operations, as re
Slide 23: Consolidated Financial Quarterly Trend
Consolidated Financial Quarterly Trend ($MM’s) Inflation, supply chain $10.0 COVID-19 Pandemic $120.0 headwinds (Loss) income from continuing operations & Adjusted EBITDA Net Sales $0.0 $60.0 ($10.0) $0.0 ($12.0) ($12.6) 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2
Slide 24: Near-Term Challenges and Opportunities
Near-Term Challenges and Opportunities Unfavorable • Lower production levels, higher raw material prices, inflation of energy manufacturing rates, transportation costs in excess of lagging customer pass-throughs, variances and lower volume of shipments • Proactive procurement/sourcing actions to mit
Slide 25: Backlog Trend
Backlog Trend Post-pandemic recovery and growth $350.0 $321.3 $327.5 $300.0 $270.7 $239.7 ($ Millions) $250.0 $200.0 $150.0 $100.0 $87.8 $50.6 $50.0 $0.0 2019 2020 2021 2022 Q1 Forged & Cast Engineered Products Air & Liquid Processing Total Ampco-Pittsburgh Investor Presentation June 2022 25
Slide 26: Investment Highlights
Investment Highlights #1 or #2 player in • # 1 in Europe and #1 in North America defensible niche • Growing position in other niche industrial markets markets Organic growth • Introduce new products utilizing existing forging assets initiatives to diversify • Expand addressable market by threefold r
Slide 27: Thank You
Thank You ampcopgh.com Ampco-Pittsburgh Investor Presentation June 2022 27
Slide 28: Appendix
Appendix Ampco-Pittsburgh Investor Presentation June 2022 28
Slide 29: Ampco-Pittsburgh Global Footprint
Ampco-Pittsburgh Global Footprint North Tonawanda, NY Gateshead, England Åkers Styckebruk, Sweden Ravne na Koroškem, Slovenia Valparaiso, IN Austintown, OH Taiyuan, China Erie, PA Xinjian Town Yixing, China Amherst, VA Maanshan, China Carnegie, PA Jointly Owned Manufacturing Facilities Lynchburg, VA
Slide 30: Steel Production Returns to Pre-pandemic Volumes
Steel Production Returns to Pre-pandemic Volumes Source: worldsteel *Other Europe includes Bosnia-Herzegovina, Macedonia, Norway, Serbia, Turkey, United Kingdom Ampco-Pittsburgh Investor Presentation June 2022 30
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($000’s) 2016 2017 2018 2019 2020 2021 Net (loss) income, as reported (GAAP) $ (79,820) $ (12,089) $ (69,335) $ (20,986) $ 7,970 $ (12,695) Add: Income tax provision (benefit) 22,712 (1,355) 268 2,108 (470) 2,305 Other (income) expense, including interest expense 2,990 3,673
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($000’s) 2016 2017 2018 2019 2020 2021 (Loss) income from continuing operations, as reported (GAAP) $ (54,530) $ (13,769) $ (44,892) $ (10,908) $ 6,446 $ (13,616) Impairment charges [1] 26,676 - - 10,082 - - Impact of ASU No. 2017-07 on 2016 [2] (945) - - - - - Integration-re
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($000’s) 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 oss) income from continuing operations, as reported (GAAP) $ (11,959) $ (653) $ (1,340) $ 3,044 $ (10,908) $ 4,351 $ (86) $ 178 $ 2,003 $ 6,446 $ 907 $ 469 $ (2,361) $ (12,631) $ (13,616) $
Slide 34: Non-GAAP Reconciliation Footnotes
Non-GAAP Reconciliation Footnotes [1] Impairment charge for 2016 represents principally the write-off of goodwill associated with the Forged and Cast Engineered Products reporting unit deemed to be impaired. Impairment charge was recognized in the first quarter of 2019 to record the sale of certain