Tredegar Corporation · NYSE:TG
Tredegar — Q1 2023 Earnings Presentation
33 slides from Tredegar's earnings presentation, May 17, 2023
Slide 1: 2023 First Quarter Financial Results
2023 First Quarter Financial Results May 17, 2023
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 2023 First Quarter Financial Results
Tredegar Corporation 2023 First Quarter Financial Results (in millions, except per share data) 1Q 2023 1Q 2022 Net Sales1 $185.1 $228.5 Net Income from Ongoing Operations2 $2.5 $16.8 Diluted EPS from $0.07 $0.50 Ongoing Operations2 1 See Note 1 in GAAP to Non-GAAP Reconciliations for more informatio
Slide 4: Aluminum Extrusions (Bonnell Aluminum)
Aluminum Extrusions (Bonnell Aluminum) 2023 First Quarter Results First Quarter Performance First Quarter Financial Highlights (in millions) 1Q 23 1Q 22 EBITDA from ongoing operations in the first quarter of 2023 decreased $9.3 million versus the first quarter of 2022 Volume (lbs.) 37.6 43.0 (13)% p
Slide 5: PE Films
PE Films (Surface Protection, Polyethylene Overwrap and Packaging Films & Polypropylene Films for Other Markets) 2023 First Quarter Results First Quarter Performance First Quarter Financial Highlights (in millions) 1Q 23 1Q 22 EBITDA from ongoing operations in the first quarter of 2023 decreased $5.
Slide 6: 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 7: Flexible Packaging Films (Terphane)
Flexible Packaging Films (Terphane) 2023 First Quarter Results First Quarter Performance First Quarter Financial Highlights (in millions) 1Q 23 1Q 22 EBITDA from ongoing operations in the first quarter of 2023 decreased by $3.7 million versus the first quarter Volume (lbs.) 19.8 26.0 (24)% of 2022,
Slide 8: 2023 Year-to-Date Financial Highlights
Tredegar Corporation 2023 Year-to-Date Financial Highlights ($ in millions) Cash Flows used in Operations $(9.1) Capital Expenditures $9.0 Dividends Paid $4.4 Net Debt (Cash)1 $140.0 Net leverage ratio2 2.09x 1. As of 3/31/2023. See Note 5 in GAAP to Non-GAAP Reconciliations for more information and
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: commercial windows & Glazing contractors and Hydro Extrusions North finished aluminum extrusions; value- doors, curtain walls, storefronts & entrances, automa
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 (including aluminum log casting capabilities) and world-cl
Slide 13: Aluminum Extrusions Business Profile
Aluminum Extrusions Business Profile Key Market Drivers • Strong demand for finished products, including anodized, $613 million LTM Net Sales1 painted products and fabricated components 8% • Growing aluminum content in vehicles, driven by CAFE Electrical & (corporate average fuel economy) standards
Slide 14: Index of North American Industry Volume for Bonnell's Key Markets
Aluminum Extrusions Index of North American Industry Volume for Bonnell’s Key Markets Note: Index computations based on Aluminum Association data (1982=1.0) through 2022. Specialty includes aluminum extrusions sold to consumer durables, electrical and machinery markets. 13
Slide 15: Key Markets - B&C/Automotive/Specialty
Aluminum Extrusions Key Markets - B&C/Automotive/Specialty 14
Slide 16: Automotive Aluminum Extrusion Applications
Aluminum Extrusions Automotive Aluminum Extrusion Applications ➢ Crash management systems – beams and mounting plates, crush cans ➢ Roof rails ➢ Electrical battery trays ➢ Air conditioner tube connectors Aluminum Overview Film Products Financials 15 Extrusions
Slide 17: Aluminum Extrusions Annual Historical Financials
Aluminum Extrusions Annual Historical Financials 2 Net Sales1 ($ in millions) EBITDA from Ongoing Ops ($ in millions) 638 $80 613 66 67 $600 530 539 55 56 58 456 $40 $300 $0 $0 2019 2020 2021 2022 LTM 2019 2020 2021 2022 LTM Volume (lbs. in millions) Capital Expenditures ($ in millions) 300 29 $30 2
Slide 18: PE Films Business Profile
PE Films Business Profile Key Growth Drivers $87 million LTM Net Sales1 • “Internet of Things” leading to greater connectivity and more displays and semiconductors 32% Overwrap • Thinner devices with increasing resolution and larger Packaging screen size • Demographic and workplace trends shifting t
Slide 19: End-Use Markets for Surface Protection Products
PE Films End-Use Markets for Surface Protection Products 18
Slide 20: Surface Protection Overview
PE Films Surface Protection Overview Typical LCD Optical Stack (examples: TVs, Smartphones) 19
Slide 21: PE Films Annual Historical Financials
PE Films Annual Historical Financials Net Sales1 ($ in millions) EBITDA from Ongoing Ops ($ in millions) $200 45 41 139 $40 $150 134 119 28 98 $100 87 $20 12 $50 7 $0 $0 2019 2020 2021 2022 LTM 2019 2020 2021 2022 LTM Volume (lbs. in millions) Capital Expenditures ($ in millions) 44 45 $10 9 39 40 3
Slide 22: Flexible Packaging Films Business Profile
Flexible Packaging Films Business Profile $160 million LTM Net Sales1 Key Growth Drivers • Growing end-user demand for convenience foods, lighter packaging and branded consumer 30% products North America & Other • Packaging innovation driving demand for flexible packaging Customers • Global and regi
Slide 23: End-Use and Value-Add Products
Flexible Packaging Films End-Use and Value-Add Products 22
Slide 24: Flexible Packaging Films Annual Historical Financials
Flexible Packaging Films Annual Historical Financials Net Sales1 ($ in millions) EBITDA from Ongoing Ops ($ in millions) $200 $40 168 160 32 31 134 135 140 $30 27 24 $100 $20 15 $10 $0 $0 2019 2020 2021 2022 LTM 2019 2020 2021 2022 LTM Volume (lbs. in millions) Capital Expenditures ($ in millions) 1
Slide 25: Tredegar Corporation Annual Historical Financials
Tredegar Corporation Annual Historical Financials 1 Net Sales ($ in millions) Consolidated EBITDA from Ongoing Ops2 ($ in millions) 904 860 $150 $900 797 798 730 92 96 $100 81 85 $600 67 $300 $50 $0 $0 2019 2020 2021 2022 LTM 2019 2020 2021 2022 LTM Earnings Per Share from Ongoing Ops3 Capital Expen
Slide 26: Capital Expenditures – History & Projections
Tredegar Corporation Capital Expenditures – History & Projections ($ in millions) 2023 2019 2020 2021 2022 Projection2 Aluminum Extrusions $17.9 $10.3 $18.9 $23.7 $26 PE Films1 8.6 6.0 3.0 3.3 3 Flexible Packaging 8.9 5.0 5.6 8.2 7 Corporate 0.2 0.2 (0.1) 1.7 0 Total $35.6 $21.5 $27.4 $36.9 $36 2023
Slide 27: Quarterly Cash Dividend
Tredegar Corporation Quarterly Cash Dividend ($) .13 .12 .11 .09 .07 .06 .045 .04 1996 -- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Tredegar announced an increase to its quarterly dividend (to 0.13 per share) on August 4, 2022. Special dividends of $5.97 per share in 2020 and
Slide 28: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations
Slide 29: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations On October 30, 2020, the Company completed the sale of its personal care films business ("Personal Care Films"), w hich w as part of its PE Films segment. The transaction excluded the packaging film lines and related operations located at the Pottsville, Pennsylvania
Slide 30: Summary Financial Information
GAAP to Non-GAAP Reconciliations 2. Summary Financial Information Year Ended Decem ber 31, LTM (in millio ns) 2019 2020 2021 2022 2023 Income and expense relating to ongoing operations: Total EBITDA for segments (a) $ 121.5 $ 130.8 $ 115.3 $ 106.2 $ 88.0 Pension expense (c) (9.6) (14.6) (14.1) - - C
Slide 31: Summary Financial Information (continued)
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 w ith key metrics used by the Chief Operating D
Slide 32: 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, gains or losses from the sale of assets, goodw ill impairment charges, net periodic benefit cost for the frozen defined benefit pension plan and other items (w
Slide 33: Net Debt Calculation
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, December 31