Ampco-pittsburgh Corporation · NYSE:AP
Ampco-pittsburgh — Q1 2020 Earnings Presentation
25 slides from Ampco-pittsburgh's earnings presentation, Jul 1, 2020
Slide 1: Investor Presentation Q1 2020 Update
Producing Quality Products Since 1929 — Always Moving Forward! Investor Presentation Q1 2020 Update
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 or on behalf of Ampco-Pittsburgh Corporation (the “Corporation”). The information offered in this presentation may include, but are not
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Corporation presents certain non-GAAP financial measures, including adjusted income (loss) from continuing operations and adjusted EBITDA, as supplemental financials measure to GAAP financial measures regarding the Corporation’s operational performance. These non-GAAP
Slide 4: Ampco-Pittsburgh Corporation
Ampco-Pittsburgh Corporation A manufacturer of highly engineered, high-performance specialty metal products and customized equipment utilized by industry throughout the world. Forged and Cast Engineered Products Manufactures and develops metallurgical alloys and Headquarters: Carnegie, PA, U.S. proc
Slide 5: Ampco-Pittsburgh Corporation
Ampco-Pittsburgh Corporation 2019 Revenue* $305.6M $92.3M 2018 Revenue* $329.5M $89.9M 2017 Revenue* $297.3M $87.9M * From Continuing Operations Ampco-Pittsburgh Investor Presentation 5
Slide 6: 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 Lynchburg, VA Burgettstown, PA Locations Manufacturi
Slide 7: Forged and Cast Engineered Products $306M
Forged and Cast Engineered Products $306M 2019 NET SALES* A world-leading manufacturer and partner for our rolling mill customers in the development of specialty alloys for forged and cast rolls. Produces ingot and forged engineered products used in industries such as automotive tooling, plastic inj
Slide 8: Rolling Mill Manufacturing Process
Rolling Mill Manufacturing Process Average Roll Life: Roll Sizes: Global Roll Demand* • Back-up Roll - 10-20 years • Back-up rolls are • ~ $2B annually • ~ 9,000 Union Electric rolls in service 2-3x larger than work rolls • 2/3 cast rolls • Work Roll - 6-12 months • Back-up rolls - 30-40 MT • 1/3 fo
Slide 9: Top Steel Producing Countries 2018 (Mt)
Top 20 Steel Producing Countries 2018 (Mt) Source: World Steel Association We remain From 2010 to 2018 Union Electric Steel Despite many roll The number of the world’s largest world crude steel has a global shops going out rolling mills being built non-government- production has presence in 18 of bu
Slide 10: Short-Term Outlook Steel Demand, Finished Steel
Short-Term Outlook Steel Demand, Finished Steel 2019: 3.9% China: 7.8% - Due to strong real estate sector ROW: 0.2% - Slow due to uncertainty, trade tensions, geopolitical issues; contraction in manufacturing; construction maintaining 2020: 1.7% China: 1.0% - Due to unresolved trade tensions and slo
Slide 11: Union Electric Differentiators
Union Electric Differentiators Global manufacturing, sales, Ability to offer broader range of and technical support footprint roll sizes and open-die forgings Heat-treatment process and Back-integrated melt shop supports method capabilities located in-house our ability to customize material composit
Slide 12: Key Rolling Mill Customers
Key Rolling Mill Customers DIVERSIFIED BASE OF GLOBALLY RECOGNIZABLE CUSTOMERS Ampco-Pittsburgh Investor Presentation 12
Slide 13: Diversification into Open-Die Forging Market
Diversification into Open-Die Forging Market Manufacturing requirements for open-die forge market are a strong match for our manufacturing assets Aerospace Others Energy 2% 13% 15% Oil & Gas Open-die forgings 12% are used in a variety Tool & Die 22% of industries: Mechanical Engineering 23% Heavy In
Slide 14: Air and Liquid Processing $92M
Air and Liquid Processing $92M 2019 NET SALES Aerofin: Produces custom engineered tube heat exchange coils and heat transfer products used in industries such as nuclear power, industrial process and HVAC Buffalo Air Handling: Produces large custom air handling systems used in commercial, institution
Slide 15: Air and Liquid Processing Differentiators
Air and Liquid Processing Differentiators Air and Liquid Processing businesses are known for reliability in installation and performance. • Highly-engineered and known to be the industry leader for highest quality and dependability in critical applications • Capabilities to reproduce parts that were
Slide 16: Turnaround Strategy is working!
Turnaround Strategy is working! New Leadership • Brett McBrayer introduced as new CEO in July 2018 with a focus on operational improvements, reducing complexity, and rightsizing the business for future growth and profitability • Sam Lyon appointed Segment President with new plan to reduce costs, str
Slide 17: Consolidated Financial Trend Improvement
Consolidated Financial Trend Improvement ($MM’s) $30.0 $450.0 (Loss) income from continuing operations & Adjusted EBITDA $0.0 $300.0 Net Sales ($30.0) $150.0 ($60.0) $0.0 2016 2017 2018 2019 (Loss) income from continuing operations, as reported (GAAP) (Loss) income from continuing operations, as adj
Slide 18: Consolidated Financial Quarterly Trend
Consolidated Financial Quarterly Trend ($MM’s) $10.0 $120.0 (Loss) income from continuing operations & Adjusted EBITDA Net Sales $0.0 $60.0 ($10.0) ($40.1) ($12.0) $0.0 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 (Loss) income from continuing operations, as reported (GAAP
Slide 19: 2-3 Year Growth Initiatives
2-3 Year Growth Initiatives Diversifying product offerings in open-die forged products Target to increase CapEx from ~$15M to ~$25M annually to increase automated processes and modernization resulting in higher margins Increase sales and productivity in the Air and Liquid Processing business Goal is
Slide 20: Thank You
Producing Quality Products Since 1929 — Always Moving Forward! Thank You ampcopgh.com Ampco-Pittsburgh Investor Presentation 20 March 26, 2020
Slide 21: Appendix
Appendix Ampco-Pittsburgh Investor Presentation 21
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($000’s) 2016 2017 2018 2019 (Loss) income from continuing operations, as reported (GAAP) $ (54,530) $ (13,769) $ (44,892) $ (10,908) Impairment charges [1] 26,676 - - 10,082 Impact of ASU No. 2017-07 on 2016 [2] (945) - - - Integration-related restructuring expenses and unfa
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($000’s) 2018 2019 2020 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 (Loss) income from continuing operations, as reported (GAAP) $ (1,777) $ (189) $ (2,847) $ (40,078) $ (44,892) $ (11,959) $ (653) $ (1,340) $ 3,044 $ (10,908) $ 4,351 Impairment charge [1] - - - - - 10,082 - - - 1
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($000’s) 2016 2017 2018 2019 Net (loss) income $ (79,820) $ (12,089) $ (69,335) $ (20,986) Add: Income tax provision (benefit) 22,712 (1,355) 268 2,108 Other (income) expense, including interest expense 2,990 3,673 (1,085) (2,541) Depreciation and amortization 20,463 21,376 2
Slide 25: 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. For 2019, impairment charge was recognized in the first quarter of 2019 to record the sale o