Slide 1: Second Quarter 2020 Earnings Presentation
Second Quarter 2020 Earnings Presentation Aug. 4, 2020 © 2020 ATI. All rights reserved.
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: Leadership Priorities
Leadership Priorities OPTIMIZE COST STRUCTURE PRESERVE CASH & TO MATCH NEW DEMAND MAINTAIN LIQUIDITY EXPECTATIONS KEEP EMPLOYEES SAFE SUPPORT CUSTOMERS BE “RECOVERY READY,” THROUGH CONTINUED LEVERAGING SHARE STRONG EXECUTION GAINS FOR GROWTH Maintain a Solid Foundation to Ensure Long-Term Profitabil
Slide 4: ATI Strategic Markets & Diversified Applications
ATI Strategic Markets & Diversified Applications Q2 2020 YoY FY 2020 Market Comments Revenue % Change* Market Outlook • Overall lower Q2 demand driven by sharp production rate decreases at Airbus and Jet Engine $158M -48% Boeing causing customer push-outs and excess inventory within the supply chain
Slide 5: Second Quarter 2020 Financial Results
Second Quarter 2020 Financial Results Year-over-year declines due to ongoing $M (excl. EPS) Q2 2020 Q2 2019 % Change demand weakness driven by global pandemic Revenues decreased Revenue $770 $1,080 (29%) AA&S: Commercial aerospace declines partially mitigated by increased Defense and Electronics R
Slide 6: Cash and Liquidity Update
Cash and Liquidity Update Debt Maturity Schedule Balance Sheet and Cash Flow Net Debt/Adj. EBITDA(1) Ratio: 2.3x Cash and liquidity at Q2 2020 quarter end Q2 liquidity of ~$1 billion, including $539M cash on hand $600 Positive cash from operations in Q2 as expected $500 Reduced inventory by $7
Slide 7: 2020 Outlook
2020 Outlook Full Year 2020 Key Outlook Assumption Earnings Drivers 737 MAX production restarted in Q2; continues at low rate prior assumption: consistent EPS FCF1 Nickel prices in expected range of $5.50/lb. - $6.00/lb. Previously $110M - $140M prior assumption: $5.00/lb. to $5.50/lb. suspe
Slide 8: Leadership Priorities
Leadership Priorities OPTIMIZE COST STRUCTURE PRESERVE CASH & TO MATCH NEW DEMAND MAINTAIN LIQUIDITY EXPECTATIONS KEEP EMPLOYEES SAFE SUPPORT CUSTOMERS BE “RECOVERY READY,” THROUGH CONTINUED LEVERAGING SHARE STRONG EXECUTION GAINS FOR GROWTH Maintain a Solid Foundation to Ensure Long-Term Profitabil
Slide 9: Question & Answer
Question & Answer © 2020 ATI. All rights reserved. 9
Slide 10: Additional Materials Appendix
Additional Materials Appendix
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures © 2020 ATI. All rights reserved. 1
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures © 2020 ATI. All rights reserved. 1
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures © 2020 ATI. All rights reserved. 1