Slide 1: Quaker Chemical Corporation Investor Conference Call: Q4 and Full Year 2012 Results
1 Quaker Chemical Corporation Investor Conference Call March 7, 2013 Fourth Quarter and Full Year 2012 Results
Slide 2: Regulation G and Forward-Looking Statements
2 Regulation G The attached charts include Company information that does not conform to generally accepted accounting principles (GAAP). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company a
Slide 3: Speakers
3 Speakers Michael F. Barry Chairman of the Board, Chief Executive Officer & President Margaret M. Loebl Vice President, Chief Financial Officer & Treasurer Robert T. Traub General Counsel Chart #1
Slide 4: Full Year 2012 Headlines
4 Full Year 2012 Headlines • Record full year 2012 revenue and net income despite challenging environment • Full year 2012 record cash flow generation enhances strong balance sheet • 41% shareholder return in full year 2012 Memo: Change in Accounting Method During 2012, the Company acquired an incre
Slide 5: Chairman Comments
5 Chairman Comments ▪ Positives x Gross margin strength / raw material stabilization x Diversification with geographic footprint x Taking market share x Leveraging acquisitions ▪ Negatives x Typical seasonal trends x Weak market conditions in Europe and Brazil x Foreign exchange Fourth Quarter 2012
Slide 6: Product Volume by Quarter
6 Product Volume by Quarter 25,000 30,000 35,000 40,000 45,000 50,000 55,000 4Q08 YTD Avg. 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Metalworking Process Chemicals Segment Chart #4
Slide 7: Financial Snapshot
7 Financial Snapshot Q4 2011 Recast Q4 2012 Full Year 2011 Recast Full Year 2012 Net Sales ($Mils.) 173.3 172.9 683.2 708.2 Gross Margin (%) 32.7 34.2 32.6 33.7 Operating Margin (%) 6.6 7.9 8.5 8.9 Net Income attributable to Quaker Chemical Corporation ($Mils.) * 10.4 13.0 45.9 47.4 Adjusted EBITDA
Slide 8: Gross Margin Percentage
8 Gross Margin Percentage 32.7% 34.2% 32.6% 33.7% 30.0% 31.0% 32.0% 33.0% 34.0% 35.0% Q4 2011 Q4 2012 2011 2012 Gross Margin Percentage Chart #6
Slide 9: Baseline Historical Performance
9 Baseline Historical Performance $40.1 $44.2 $66.5 $73.0 $80.9 6.90% 9.80% 12.20% 10.70% 11.40% 2008 2009 2010 2011 2012 Adjusted EBITDA ($ Mils.) Adjusted EBITDA Margin (%) Chart #7
Slide 10: Balance Sheet Net Cash / (Debt)
10 Balance Sheet Net Cash / (Debt) -$100 -$80 -$60 -$40 -$20 $0 $20 $40 2008 2009 2010 2011 2012 $ Millions Cash ST/LT Debt Net Debt Chart #8
Slide 11: Net Cash Flow From Operations
11 Net Cash Flow From Operations 13.4 41.6 37.5 19.7 62.9 0 10 20 30 40 50 60 70 2008 2009 2010 2011 2012 $ Millions Chart #9
Slide 12: Appendix
@ Quaker APPENDIX
Slide 13: Adjusted EBITDA Reconciliation
13 Adjusted EBITDA Reconciliation 2008 2009 2010 2011 2012 Net income 9,833 16,058 32,120 45,892 47,405 Depreciation 10,879 9,525 9,867 11,455 12,252 Amortization 1,177 1,078 988 2,338 3,106 Interest expense 5,509 5,533 5,225 4,666 4,283 Taxes 4,977 7,065 12,616 14,256 15,575 Restructuring 2,916 2,2