Mativ Holdings, Inc. · NYSE:MATV
Mativ — Schweitzer Mauduit International — Investor Presentation (February 2018)
27 slides from Mativ's investor presentation, Feb 22, 2018
Slide 1: SWM Investor Presentation February 2018
© 2018 Schweitzer-Mauduit International, Inc. Confidential SWM INVESTOR PRESENTATION February 2018
Slide 2: Forward Looking Statements, Non-GAAP Disclosure, & Definitions
© 2018 Schweitzer-Mauduit International, Inc. Confidential 2 Forward Looking Statements, Non- GAAP Disclosure, & Definitions This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws that ar
Slide 3: Overview
© 2018 Schweitzer-Mauduit International, Inc. Confidential 3 Overview Engineered Papers (EP) Advanced Materials & Structures (AMS) Financial Overview, Outlook
Slide 4: A Specialty Materials Company
© 2018 Schweitzer-Mauduit International, Inc. Confidential 4 A Specialty Materials Company Delivering high performance critical components for demanding applications GROWING ADVANCED MATERIALS & STRUCTURES SEGMENT • GDP+ organic sales growth in diversified end-markets • Margin expansion from synergi
Slide 5: Strategic Transformation Creating A Growth Platform
© 2018 Schweitzer-Mauduit International, Inc. Confidential 5 SWM legacy attributes and strengths are foundations of AMS platform, but now deployed in multiple growth markets Strategic Transformation Creating A Growth Platform Synergistic acquisitions created a diversified and scaled growth platform
Slide 6: Investment Highlights: Transforming Enterprise With An Attractive Dividend
© 2018 Schweitzer-Mauduit International, Inc. Confidential 6 Investment Highlights Transforming Enterprise With An Attractive Dividend An under-followed transformation to a diversified specialty materials growth business with strong free cash flow and attractive dividend Under-Followed Strategic Tra
Slide 7: Advanced Materials & Structures (AMS)
© 2018 Schweitzer-Mauduit International, Inc. Confidential 7 Overview Engineered Papers (EP) Advanced Materials & Structures (AMS) Financial Overview, Outlook
Slide 8: AMS: Scaled & Diverse Growth Platform
© 2018 Schweitzer-Mauduit International, Inc. Confidential 8 AMS: Scaled & Diverse Growth Platform Providing customers unique engineered materials with critical performance features that add value far exceeding their cost. Sustaining strong competitive positions in high growth specialty applications
Slide 9: Key Technologies Precision Engineered To Meet Customer Demands
© 2018 Schweitzer-Mauduit International, Inc. Confidential 9 Key Technologies Precision Engineered To Meet Customer Demands Designed to spec…thickness, clarity, durability, UV resistance, flow-through, water resistance, strength, breathability, puncture resistance, heat tolerance • Typical resins: p
Slide 10: Filtration: Increasing Demand For Cleaner, Purer…
© 2018 Schweitzer-Mauduit International, Inc. Confidential 10 Filtration Increasing Demand For Cleaner, Purer… Fuel, hydraulic liquids, solvents, and air require high performance filtration across various markets; long-term industrial filtration growth ≈ 6%* • Filters for heavy equipment in oil/gas/
Slide 11: Infrastructure & Construction: Increasing Needs For Erosion/Sediment Control
© 2018 Schweitzer-Mauduit International, Inc. Confidential 11 Infrastructure & Construction Increasing Needs For Erosion/Sediment Control Leader in erosion/sediment control applications for highway development and oil & gas industry • Erosion control “blankets” used in highway development; recent st
Slide 12: Transportation: Global Expansion Of Surface Protection Films
© 2018 Schweitzer-Mauduit International, Inc. Confidential 12 Transportation Global Expansion Of Surface Protection Films 5% – 7% expected long-term growth in niche applications; strength in Asia Increasing paint protection adoption in Asia driving strong recent growth • Aftermarket automotive custo
Slide 13: Industrial & Medical: Innovative Solutions Using Core AMS Technologies
© 2018 Schweitzer-Mauduit International, Inc. Confidential 13 • Finger bandages • Advanced woundcare • Facemasks/gowns • Pipeline protection • Wind turbine blades • Food packaging • Performance textiles • Wipes • Parts protection Industrial & Medical Innovative Solutions Using Core AMS Technologies
Slide 14: Engineered Papers (EP)
© 2018 Schweitzer-Mauduit International, Inc. Confidential 14 Overview Engineered Papers (EP) Advanced Materials & Structures (AMS) Financial Overview, Outlook
Slide 15: EP: Mature High Margin Cash Generator
© 2018 Schweitzer-Mauduit International, Inc. Confidential 15 - Patented LIP paper a key profit driver; fire safety product - Reconstituted tobacco (“Recon”) another key profit driver - Influenced by US/EU (15%* of global demand) smoking attrition, historically ≈ 3%* - Opportunity to further ramp up
Slide 16: Cigarette Papers Leadership In Overall Category, Key LIP Technology
© 2018 Schweitzer-Mauduit International, Inc. Confidential 16 SWM a global LIP leader • SWM has vast majority share in North America… • …40%+ share in EU with another 40%+ under license/royalty with competitors LIP a premium product in paper portfolio • LIP price compression through product life cyc
Slide 17: Reconstituted Tobacco Innovation Changing The Category
© 2018 Schweitzer-Mauduit International, Inc. Confidential 17 Reconstituted Tobacco Innovation Changing The Category Heat-not-Burn (HnB) Traditional RTL and W&B • Traditional reconstituted tobacco leaf (RTL) is a highly engineered recycled material used in cigarette blends - Key benefits: harm reduc
Slide 18: Financial Overview, Outlook
© 2018 Schweitzer-Mauduit International, Inc. Confidential 18 Overview Engineered Papers (EP) Advanced Materials & Structures (AMS) Financial Overview, Outlook
Slide 19: 2017 Segment Performance
© 2018 Schweitzer-Mauduit International, Inc. Confidential 19 2017 Segment Performance AMS delivered 4% organic growth with over 200 basis points of margin expansion; EP sales and margins declined as expected $ in Millions 2016 2017 Sales $281 $433 GAAP Operating Profit $9 $49 Adjusted Operating Pro
Slide 20: 2017 Consolidated Review, 2018 Outlook
© 2018 Schweitzer-Mauduit International, Inc. Confidential 20 2017 Consolidated Review, 2018 Outlook $ in Millions 2016 2017 Net Sales $840 $982 GAAP Operating Profit $106 $125 Adjusted Operating Profit $144 $157 Adjusted Operating Margin 17.1% 16.0% Adjusted EBITDA $183 $201 Adjusted EBITDA % 21.8%
Slide 21: Multiple organic catalysts to support profitable growth
© 2018 Schweitzer-Mauduit International, Inc. Confidential 21 Multiple organic catalysts across the company to support profitable growth Organic Growth Drivers • Continued AMS margin expansion, path toward 20% Adj. OP margin long-term • $10 million run-rate synergy target, ramping throughout 2018 •
Slide 22: Growing AMS With Synergistic Acquisitions
© 2018 Schweitzer-Mauduit International, Inc. Confidential 22 Acquisitions could strengthen positions within existing “sandbox” or potentially expand AMS’ technologies or end-markets M&A Opportunities Growing AMS With Synergistic Acquisitions End-markets / Technologies Filtration Infrastructure & Co
Slide 23: Appendix: Non-GAAP Reconciliations & Supplemental Data
© 2018 Schweitzer-Mauduit International, Inc. Confidential 23 APPENDIX Non-GAAP Reconciliations & Supplemental Data Historical Segment Financials
Slide 24: Non-GAAP Reconciliations: Adjusted Operating Profit
© 2018 Schweitzer-Mauduit International, Inc. Confidential 24 Non-GAAP Reconciliations & Supplemental Data Certain financial measures and comments contained in this presentation are “non-GAAP” financial measures, specifically measures which exclude one or more of the following: restructuring and imp
Slide 25: Non-GAAP Reconciliations: Adjusted Earnings Per Share
© 2018 Schweitzer-Mauduit International, Inc. Confidential 25 Non-GAAP Reconciliations & Supplemental Data Certain financial measures and comments contained in this presentation are “non-GAAP” financial measures, specifically measures which exclude one or more of the following: restructuring and imp
Slide 26: Segment Financials – Historical (2015-2016)
© 2018 Schweitzer-Mauduit International, Inc. Confidential 26 Segment Financials – Historical In October 2015, SWM consolidated its former Paper and Reconstituted Tobacco segments into one reportable segment, Engineered Papers, conforming to the current organizational structure and strategic managem
Slide 27: Segment Financials – Historical (2017)
© 2018 Schweitzer-Mauduit International, Inc. Confidential 27 Segment Financials – Historical In October 2015, SWM consolidated its former Paper and Reconstituted Tobacco segments into one reportable segment, Engineered Papers, conforming to the current organizational structure and strategic managem
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