Slide 1: Proven to perform anywhere. First Quarter 2023 Earnings
Proven to perform anywhere. First Quarter 2023 Earnings May 4, 2023 ATI Proprietary and Confidential ©2023 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 A&D growth driving continued results Deploying capital for shareholder Portfolio transformation driving returns, balance sheet product mix and cost benefits A&D Revenue up 57% vs. Q1’22 driven by: strengthening • Commercial Aero Growth • Tit
Slide 4: Strategic Markets & Diversified Applications
Strategic Markets & Diversified Applications Near-term Q1 ‘23 vs. vs. Market Market Comments Revenue Q1 ‘22 Q4 ‘22 Outlook • Strong demand growth in materials and forgings, driven by ramping engine production. Jet Engine $311M +58% +2% • Growth trend expected to continue, supporting narrowbody and w
Slide 5: Well-Positioned for Sustainable Growth
Well-Positioned for Sustainable Growth Driving Value Creation Expanding Markets Medical Product Narrowbody Widebody Defense Specialty Transformation Ramp Ramp Growth Energy (Build & (Build & Metallics MRO) MRO) Fly, Float beyond Ni+Ti & Roll ESG Key capabilities: Materials science expertise and inte
Slide 6: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results $M (excl. EPS) Q1 2023 Q1 2022 % Chg. Q4 2022 % Chg. HPMC Segment Aerospace ramp driving continued strength Revenue $1,038 $834 +25% $1,010 +3% • Revenue: YOY and sequential top-line growth was driven by continued strength in jet engine materials and forging, as
Slide 7: Cash & Liquidity
Cash & Liquidity Net Debt/Adj. EBITDA Ratio: 2.8x (1) (2) Balance Sheet and Cash Flow Q1 results • Liquidity of $750M, including $196M of cash on hand (2) $600 • Managed working capital increased to 38% of sales at quarter end due to seasonality, late quarter sales, and increased inventory $500 due
Slide 8: Second Quarter & Full Year 2023 Outlook
Second Quarter & Full Year 2023 Outlook Second Quarter 2023 Key Assumptions Earnings Drivers Adj. EPS1 ✓ “Double-digit” growth in A&D, as well as specialty energy ✓ 35% increase in capacity for titanium production from existing assets $0.53 – $0.59 ✓ Headwinds in industrial end markets will have mod
Slide 9: Additional Materials Appendix
Additional Materials Appendix
Slide 10: Non-GAAP Financial Measures
ATI Inc. and Subsidiaries Non-GAAP Financial Measures (Unaudited, dollars in millions, except per share amounts) The The Company Companyreports itsits reports financial results financial in accordance results with accounting in accordance principles with accounting generally principles accepted acce
Slide 11: Three Months Ended March 31, 2023 Reported
Three Months Ended March 31, 2023 March 31, 2022 Reported Adjusted Reported Adjusted Numerator for Basic net income per common share - Net income attributable to ATI $ 70.1 $ 71.2 $ 30.9 $ 56.7 Effect of dilutive securities 2.6 2.6 4.0 4.0 Numerator for Diluted net income per common share - Net inco
Slide 12: Adjusted EBITDA and Net Debt Reconciliation
Latest Twelve Months Three Months Ended Ended March 31, 2023 December 31, 2022 March 31, 2022 March 31, 2023 Net income attributable to ATI $ 70.1 $ 76.9 $ 30.9 $ 170.1 Net income attributable to noncontrolling interests 2.1 4.3 4.3 13.4 Net income 72.2 81.2 35.2 183.5 (+) Depreciation and Amortizat
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