Slide 1: 2021 First Quarter Financial Results
2021 First Quarter Financial Results May 12, 2021
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 First Quarter Financial Results
Tredegar Corporation 2021 First Quarter Financial Results (in millions, except per share data) 1Q 2021 1Q 2020 Net Sales1 $178.6 $185.3 Net Income from Ongoing Operations2 $10.1 $11.8 Diluted EPS from $0.30 $0.36 Ongoing Operations2 1 See Note 1 in GAAP to Non-GAAP Reconciliations for more informati
Slide 4: Aluminum Extrusions (Bonnell Aluminum)
Aluminum Extrusions (Bonnell Aluminum) 2021 First Quarter Results First Quarter Performance First Quarter Financial Highlights (in millions) 1Q 21 1Q 20 • Higher EBITDA from ongoing operations versus 1Q 2020 due to: Volume (lbs.) 44.4 47.3 (6)% • A $2.3M variance from the timing of the flow through
Slide 5: PE Films
PE Films (Surface Protection, Polyethylene Overwrap and Packaging Films & Polypropylene Films for Other Markets) 2021 First Quarter Results First Quarter Performance First Quarter Financial Highlights (in millions) • Lower EBITDA from ongoing operations vs. 1Q 2020 1Q 21 1Q 20 primarily as a result
Slide 6: Flexible Packaging Films (Terphane)
Flexible Packaging Films (Terphane) 2021 First Quarter Results First Quarter Performance First Quarter Financial Highlights (in millions) 1Q 21 1Q 20 • Higher EBITDA from ongoing operations vs. 1Q 2020 primarily as a result: Volume (lbs.) 27.4 25.8 6% • Lower raw material costs, net of lower selling
Slide 7: Customer Product Transitions in Surface Protection
PE Films Customer Product Transitions in Surface Protection The Surface Protection component of PE Films supports manufacturers of optical and other specialty substrates used in flat panel display products. These films are primarily used by customers to protect components of displays in the manufact
Slide 8: 2021 Year-to-Date Financial Highlights
Tredegar Corporation 2021 Year-to-Date Financial Highlights ($ in millions) Cash Flows from Operations $9.9 Capital Expenditures $5.3 Dividends Paid $4.0 Net Debt (Cash)1 $121.1 Leverage ratio2 1.54x 1 As of 3/31/2021. See Note 5 in GAAP to Non-GAAP Reconciliations for more information and a reconci
Slide 9: Appendix
‘Tredegar an < ) Appendix
Slide 10: Major Product Groups, Primary 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 and world-class capabilities in extrusion and finishing se
Slide 13: Aluminum Extrusions
Aluminum Extrusions Business Profile Key Market Drivers • Strong demand for finished products, including anodized $456 million LTM Net Sales 1 and painted products and fabricated components 12% • Growing aluminum content in vehicles, driven by CAFE Electrical & (corporate average fuel economy) stand
Slide 14: Aluminum Extrusions: Key Markets
Aluminum Extrusions Key Markets - B&C/Automotive/Specialty 13
Slide 15: Automotive Aluminum Extrusion Applications
Aluminum Extrusions Automotive Aluminum Extrusion Applications ➢ Crash management systems – beams and mounting plates, crush cans ➢ Roof rails ➢ Electrical battery trays ➢ Air conditioner tube connectors Aluminum Overview Film Products Financials 14 Extrusions
Slide 16: Index of North American Industry Volume for Bonnell's Key Markets
Aluminum Extrusions Index of North American Industry Volume for Bonnell’s Key Markets 1.6 14.0 1.4 12.0 Auto/Light Trucks & Specialty 1.2 Building & Construction 10.0 1.0 8.0 0.8 6.0 0.6 4.0 0.4 0.2 2.0 - - 1983 1982 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 200
Slide 17: Aluminum Extrusions Annual Historical Financials
Aluminum Extrusions Annual Historical Financials 2 Net Sales1 ($ in millions) EBITDA from Ongoing Ops ($ in millions) $600 573 530 $80 467 66 66 456 456 59 55 57 360 47 $300 $40 $0 $0 2016 2017 2018 2019 2020 LTM 2016 2017 2018 2019 2020 LTM Volume (lbs. in millions) Capital Expenditures ($ in milli
Slide 18: PE Films Business Profile
PE Films Business Profile $130 million LTM Net Sales1 Key Growth Drivers 18% • “Internet of Things” leading to greater connectivity Overwrap and more displays Packaging • Thinner devices with increasing resolution and 4% larger screen size Other Films • Demographic and workplace trends shifting to g
Slide 19: Surface Protection Overview
PE Films Surface Protection Overview Typical LCD Optical Stack (examples: TVs, Smartphones) 18
Slide 20: PE Films Annual Historical Financials
PE Films Annual Historical Financials Net Sales1 ($ in millions) EBITDA from Ongoing Ops ($ in millions) $200 45 41 40 $40 37 $150 134 139 130 32 128 128 110 22 $100 $20 $50 $0 $0 2016 2017 2018 2019 2020 LTM 2016 2017 2018 2019 2020 LTM Volume (lbs. in millions) Capital Expenditures ($ in millions)
Slide 21: Flexible Packaging Films Business Profile
Flexible Packaging Films Business Profile Key Growth Drivers $137 million LTM Net Sales1 • Growing end-user demand for convenience 23% foods, lighter packaging and branded consumer North America products • Packaging innovation driving demand for flexible packaging 5% Customers Europe & • Global and
Slide 22: End-Use and Value-Add Products
Flexible Packaging Films End-Use and Value-Add Products 21
Slide 23: Flexible Packaging Films Annual Historical Financials
Flexible Packaging Films Annual Historical Financials Net Sales1 ($ in millions) EBITDA from Ongoing Ops ($ in millions) $200 $40 34 31 134 135 137 $30 124 108 108 $100 $20 15 11 11 $10 8 $0 $0 2016 2017 2018 2019 2020 LTM 2016 2017 2018 2019 2020 LTM Volume (lbs. in millions) Capital Expenditures (
Slide 24: Tredegar Corporation Annual Historical Financials
Tredegar Corporation Annual Historical Financials Net Sales1 ($ in millions) Consolidated EBITDA from Ongoing Ops2 ($ in millions) $150 $900 825 797 704 730 723 92 96 94 578 $100 84 $600 77 52 $300 $50 $0 $0 2016 2017 2018 2019 2020 LTM 2016 2017 2018 2019 2020 LTM Earnings Per Share from Ongoing Op
Slide 25: Capital Expenditures – History & Projections
Tredegar Corporation Capital Expenditures – History & Projections ($ in millions) 2021 2016 2017 2018 2019 2020 Projection2 Aluminum Extrusions $15.9 $25.7 $13.0 $17.9 $10.3 $21 PE Films1 9.4 4.6 2.5 8.6 6.0 4 Flexible Packaging 3.4 3.6 5.4 8.9 5.0 9 Corporate 0.4 0.1 0.4 0.2 0.2 - Total $29.1 $34.0
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 Notes: 1. Net sales represent sales less freight. The Company uses net sales as its measure of revenues from external customers at the segment level. Net sales on a consolidated basis is a financial measure that is not calculated in accordance w ith U.S. generally ac
Slide 29: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 2. Summary Financial Information Years Ended Decem ber 31 LTM (in millio ns) 2016 2017 2018 2019 2020 2021 Income and expense relating to ongoing operations: Total EBITDA for segments (a) $ 79.8 $ 103.4 $ 109.0 $ 121.5 $ 130.8 $ 130.4 Pension expense (10.9) (10.1) (1
Slide 30: GAAP to Non-GAAP Reconciliations
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 with key metrics used by the Chief Operating De
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: GAAP to Non-GAAP Reconciliations
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) March 31, Deecember 3