Tredegar Corporation · NYSE:TG
Tredegar — Shareholder Meeting (May 2014)
59 slides from Tredegar's shareholder meeting presentation, May 20, 2014
Slide 1: Annual Meeting of Shareholders, May 15, 2014
Tredegar as > Annual Meeting of Shareholders May 15, 2014
Slide 2: Greg Williams
Tredegar as > bibs Greg Williams
Slide 3: George Newbill Ken Newsome Greg Pratt
George Newbill Ken Newsome Greg Pratt Carl Tack Greg Williams
Slide 4: Greg Williams
Tredegar as > bibs Greg Williams
Slide 5: Nancy Taylor
Tredegar ns) A Nancy Taylor
Slide 6: Today's Discussion
Today’s Discussion Recent financial performance Our strategy in action Bonnell’s automotive strategy ‘Tredegar SOMORNTONA GN 5
Slide 7: Tredegar Corporation 2013 Overview
Tredegar Corporation 2013 Overview Net Sales! $720 $776 $857 = $931 (MM) EPS from $.88 $.87 $1.20 $1.15 Ongoing Operations” 2013 Highlights: >» Significant progress on strategic growth initiatives and strengthened our global capabilities through capacity projects and new product introductions >» Vol
Slide 8: Kevin O'Leary
Tredegar as > bibs Kevin O’Leary
Slide 9: 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 10: First Quarter Net Sales and Net Income
Tredegar Corporation First Quarter Net Sales and Net Income 1Q 2014 net income from ongoing operations? of $9.5MM; $0.29 per share Segment Operating Profit? from ongoing operations of $21.5MM was essentially flat with prior year Non-cash pension expense $1.1MM favorable to prior year 13D related exp
Slide 11: Tredegar Film Products 2014 First Quarter Results
Tredegar Film Products 2014 First Quarter Results 1st Quarter Performance (in millions) 1014 1013 A Volume (Ibs.) 626 676 (7)% Net Sales? $149.2 $154.4 (3)% Operating Profi? $16.7 $17.0 (2)% Adj. EBITDA? $24.4 $25.9 (6)% Performance Drivers Lower North American baby care elastic laminate volume with
Slide 12: Bonnell Aluminum 2014 First Quarter Results
Bonnell Aluminum 2014 First Quarter Results 1st Quarter Performance Aza (in millions) 1Q14 1Q13 Volume (Ibs.) 36.6 35.7 3% Net Sales’ $79.3 $79.9 (1)% Operating Profit? $4.8 $4.6 3% Adj. EBITDA? $7.2 $6.9 3% Performance Drivers + Volume up 3%; nonresidential B&C flat Lower price primarily driven by
Slide 13: Other 2014 First Quarter Financial Highlights
Tredegar Corporation Other 2014 First Quarter Financial Highlights $ Millions, except percentages Cash Flows from Operations Capital Expenditures Dividends Paid Net Debt’ Total Debt to Adjusted EBITDA? Net Debt to Total Capitalization® ROIC* + See Note 4 in Supplemental Information for more informat
Slide 14: Outlook
Outlook Performance Targets’ 2014 20167 Film Products + Volume Growth 2% 5% + Surface Protection: New technologies for high-end TVs, tablets and smartphones + Flexible Packaging: New capacity begins to ramp up in the second half of 2014 + Personal Care: Growth (primarily from emerging markets) mitig
Slide 15: Nancy Taylor
Tredegar ns) A Nancy Taylor
Slide 16: Customer and End-Market Concentration Improvements
Customer and End-Market Concentration Improvements Customer Concentrati = P&G = P&G = All Other w All Other $720MM Net Sales $931MM Net Sales Bonnell Aluminum Volume 2010 2013 = Nonresidential = Nonresidential Building & Building & Construction Construction wAll Other =All Other 95MM Ibs. 144MM Ibs.
Slide 17: Sources of Feminine Pad Volume Growth
SOURCES OF FEMININE PAD VOLUME GROWTH 66.9 Billion Units Increased Global Consumption From 2014-2019 Undeveloped Markets = 68.3% $45.7 Developing Markets =30.3% Mature Markets= 1.4% 40.9 1.2-US. & Conade / (——_— _Frevatrn ‘Mature Markets Developing Markets Undeveloped Markets mm Other Asia-Pacific (
Slide 18: Worldwide Display Area by Application
Worldwide Display Area by Application Source: DisplaySearch Worldwide FPD Shipment and Forecast Report 250 4 N — £ 200 ° or T 20112012 201320142015 2016 2017 201820192020 Others aTV ™ Desktop Monitor Notebook PC mMobile Phone = Tablet PC ST] DISPLAYSEARCH An NPD Group Company ‘Source: NPD DisplaySea
Slide 19: Global Market for Engineered Optics
Global Market for Engineered Optics Market Segment Revenue ($MM) $900 $800 $700 30% CAGR (2013-2020) $600 $500 $400 $300 $200 $ 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (Microstructure White Reflectors [Volumetric [Premium Rigid Diffusers Specular Reflectors —TOTAL EonPonaTiON, Source: Inte
Slide 20: Global Demand for PET Packaging Films
Global Demand for PET Packaging Films 2500 2012 2013 2014 2016 Source: PCI Report “World Market for BOPET Films 02017" RoR ORAION, te (metric tons in 000’s) 1500 1000 2010 2011 2015 2017
Slide 21: North American Light Vehicle Market for Aluminum Extrusion Content
North American Light Vehicle Market for Aluminum Extrusion Content North American Light Vehicle Aluminum Extrusion Content Forecast 2 - oll 2010 2015 2025 3 Extruded Products (MIM Lbs.) 8 Tredegar EonPonaTiON, Source: Ducker Worldwide =p
Slide 22: Executing Our Strategy
Executing Our Strategy Disciplined approach in evaluating new markets Long-term perspective Translating strategy into action ‘Tredegar SOMORNTONA GN "24
Slide 23: Bonnell Aluminum
di BONNELL rience with Confidence EonPonaTiON,
Slide 24: Imagine...
Imagine... 23
Slide 25: 2025 CAFE Standards
2025 CAFE Standards \ (Corporate Average Fuel Economy)
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25
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Slide 29: Bonnell Aluminum: Experience with Confidence
(DBoNnNeELL Experience with Confidence
Slide 30: 2010 Sales by End Market
2010 Sales by End Market = Building & Construction (nonresidential & residential) = Transportation = Distribution Other 82% (DBONNELL 95 Million Pounds 29
Slide 31: 2010 Sales by End Market
2010 Sales by End Market = Building & Construction (nonresidential) ™ Building & Construction (residential) = Transportation = Distribution 14% » Other (DBONNELL 95 Million Pounds 30
Slide 32: 2013 Sales by End Market
2013 Sales by End Market 8% mBuilding & Construction 9 (nonresidential & 7% residential) = Consumer Durables 6% = Transportation 12% Machinery & Equipment 67% Other fo 144 Million Pounds (BBoNNELL AIAICOA vl Qe BONNELL 31
Slide 33: 2013 Sales by End Market
2013 Sales by End Market 8% mBuilding & Construction (nonresidential) ™Building & Construction (residential) 6% = Consumer Durables = Transportation 12% Machinery & Equipment 60% Other 144 Million Pounds (DBoNNELL AIAICOA vl Qe BONNELL 32
Slide 34: Bonnell Aluminum Commits to Invest $17 Million, Enters Automotive Market
EUTERS -~ & HOME BUSINESS» MARKETS» WORLD» POLITICS» TECH» OPINION» BREAKINGVIEWS Bonnell Aluminum Commits to Invest $17 Million,Enters Automotive Market (BBonNeELL 3
Slide 35: New $17MM 9" Extrusion Press in Newnan, GA
New $17MM 9” Extrusion Press in Newna n, GA a (RBoNNELL 4.
Slide 36: New $17MM 9" Extrusion Press in Newnan, GA
New mM 9” Extrusion Press in Newnan, GA (RBonNELL |
Slide 37: New $17MM 9" Extrusion Press in Newnan, GA
New $17MM 9” Extrusion Press in Newnan, GA (BBonnett |
Slide 38: New $17MM 9" Extrusion Press in Newnan, GA
New $17MM 9” Extrusion Press in Newnan, GA (DBoNNELL |
Slide 39: Products
Products 38
Slide 40: Platforms
Platforms (DBonneELL 39
Slide 41: Platforms
Platforms qi BONNELL 40
Slide 42: Platforms
Platforms (DBonneELL 41
Slide 43: Slide 43
Slide 44: The next game changer in the automotive industry... Aluminum.
The next game changer in the automotive industry... Aluminum. (RBoNNELL Experience with Confidence 43
Slide 45: Market Growth
Market Growth North American Light Vehicle Aluminum Extrusion Content Forecast 00 750 Boe Extruded Products (MM Lbs.) 6 2010 2015, 2020 2025 Source: Ducker Worldwide qi B O NNELL
Slide 46: State-of-the-Art Equipment
State-of-the-Art Equipment (BBoNnNeLt |
Slide 47: Experienced Automotive Team
Experienced Automotive Team a= iC (BBONNELL
Slide 48: Definitely.
Definitely.
Slide 49: Nancy Taylor
Tredegar ns) A Nancy Taylor
Slide 50: Greg Williams
Tredegar as > bibs Greg Williams
Slide 51: Tredegar
Tredegar ns)
Slide 52: Q&A
Tredegar as > Q&A
Slide 53: GAAP Reconciliations
Tredegar as > ae GAAP Reconciliations
Slide 54: Supplemental Information
Supplemental Information Notes ‘Tredegar sear N 53
Slide 55: Supplemental Information
Supplemental Information Notes Austad EBITDA represents nat income (lass) fom continuing operations befre interest, taces, depreciation, emorization unusual tems, goodwill imosements gare or losses aesociatas with clant shutdowns, atest impaitmants and restuctzings,gaire or losses for thesle of esat
Slide 56: Supplemental Information
Supplemental Information Notes present debt ss defined by U.S. GAAP, but is utllzed by management of rat debt is shown below ln miliors) Maron 21 2018 va Less: Cash and cath equivalents Net cost Nat dettto-capitalzstion & s veustion The calevlation & Net ie that used by management in evaluating fina
Slide 57: Supplemental Information
Supplemental Information Notes Return on invested capital (ROIS) 6 defined by Tredegar as Adjusted Net Income from Ongoing Operations chided by average Invested Capital where the inchidual components are defined 25 follos ‘Adjusted Nat Income tom Ongoing Operstiors equals Income tom Ongoing Operatio
Slide 58: Supplemental Information
Supplemental Information Notes ating prt om ongoing 7. Operating rat rom angcing operations is used by management io assess proftatilty. A reconciliation operations nat income & = now below Fist Quer Operating proft (loss: mie {in thousands) Film Products Ongoing operations Plant shutdowns, asst imp
Slide 59: Supplemental Information
Supplemental Information Notes st afects of losses associated with plant shutdowns, asst impsirments and resructurings and gairs ot bsses fom the sale of asseis and cther tems (which includes urreslied gains and icss.s for an imestmant accounted for under the fair value method) have been presen Sepa