Slide 1: Proven to perform anywhere. Second Quarter 2022 Earnings
Proven to perform anywhere. Second Quarter 2022 Earnings August 4, 2022 ATI Proprietary and Confidential ©2022 ATI. All rights reserved. 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements. Actual results may differ materially from results anticipated in the forward-looking statements due to various known and unknown risks, many of which we are unable to predict or control. These and additional risk facto
Slide 3: Key Takeaways
Key Takeaways Performance Balance Sheet Strategic Progress Aerospace demand expansion and Deploying capital for shareholder Portfolio transformation driving transformed asset base driving results returns, balance sheet strengthening product mix and cost benefits • Sustained strong jet engine recover
Slide 4: Strategic Markets & Diversified Applications
Strategic Markets & Diversified Applications Near-term Q2 ‘22 vs. vs. Market Market Comments Revenue Q2 ‘21 Q1 ‘22 Outlook • Ongoing expansion in materials and forgings, led by next generation products for narrowbody aircraft; increased widebody MRO demand as planes are returned to service Jet Engin
Slide 5: Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Results HPMC Segment $M (excl. EPS) Q2 2022 Q2 2021 % Chg. Q1 2022 % Chg. Expanding aerospace recovery fuels growth versus prior periods • Revenue: Revenue $960 $616 56% $834 15% ‒ Strong year-over-year and sequential growth in jet engine materials and forgings as well
Slide 6: Cash & Liquidity
Cash & Liquidity (1) (1) Net Debt/Adj. EBITDA Ratio: 3.3x Balance Sheet and Cash Flow Q2 Results • Liquidity of $730 million, including $274 million cash on hand (2) • Managed working capital 38.5% of sales ; improved 280 basis $500 points versus Q1 2022 levels ‒ Increased inventory efficiency as ae
Slide 7: Third Quarter & Full Year 2022 Outlook
Third Quarter & Full Year 2022 Outlook Third Quarter 2022 Key Assumptions Earnings Drivers Adj. EPS1 J et e ngine -drive n ae rospace de mand ramp across 2022 $0.50 – $0.58 Narrow body production incre ase s + Increased YOY airframe market (revised from Flat YOY) No significant new pandemic-re
Slide 8: Additional Materials Appendix
Additional Materials Appendix
Slide 9: ATI Inc. and Subsidiaries Non-GAAP Financial Measures
ATI Inc. and Subsidiaries Non-GAAP Financial Measures (Unaudited, dollars in millions, except per share amounts) The Company Companyreports reportsitsits financial financial results in accordance results with accounting in accordance principles with accounting generally principles acceptedaccepted g
Slide 10: Numerator for Basic net income (loss) per common share
Three Months Ended Fiscal Year Ended June 30, 2022 March 31, 2022 June 30, 2021 December 31, 2019 Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted Numerator for Basic net income (loss) per common share - Net income (loss) attributable to ATI $ (38.0) $ 76.7 $ 30.9 $ 56.7 $ (49
Slide 11: Adjusted EBITDA reconciliation, Three Months Ended June 30, 2022
Three Months Ended Latest Twelve Months Fiscal Year Ended June 30, 2022 March 31, 2022 June 30, 2021 June 30, 2022 December 31, 2019 Net income (loss) attributable to ATI $ (38.0) $ 30.9 $ (49.2) $ 11.8 $ 252.5 Net income attributable to noncontrolling interests 3.7 4.3 4.8 19.7 12.5 Net income (los
Slide 12: Non-GAAP footnotes
(a) The second quarter 2021 and latest twelve months ended June 30, 2022 results include $40.3 million and $22.9 million, respectively, of pre-tax strike related costs primarily consisting of overhead costs recognized in the period due to below-normal operating rates, higher costs for outside conver
Slide 13: Free Cash Flow and Managed Working Capital definitions
Free Cash Flow Free cash flow as defined by ATI includes the total of cash provided by (used in) operating activities and investing activities as presented on the consolidated statements of cash flows, adjusted to exclude cash contributions to the Company’s U.S. qualified defined benefit pension pla