Ampco-pittsburgh Corporation · NYSE:AP
Ampco-pittsburgh — Three Part Advisors' Midwest IDEAS Conference 2023
29 slides from Ampco-pittsburgh's conference presentation, Aug 24, 2023
Slide 1: Three Part Advisors' Midwest IDEAS Conference
Producing Quality Products Since 1929 — Always Moving Forward! Three Part Advisors’ Midwest IDEAS Conference August 24, 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements - The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a safe harbor for forward-looking statements made by us or on behalf of the Corporation. This presentation may include, but is not limited to, statements about operating performance, tre
Slide 3: Disclaimer, cont'd
Disclaimer, cont’d Non-GAAP Financial Measures – The Corporation presents herein, non-GAAP operating income - Air & Liquid Processing Segment, as adjusted, and operating margin, Air & Liquid Processing Segment, as adjusted, defined as operating income – Air & Liquid Processing Segment, as adjusted,
Slide 4: Snapshot
Snapshot Ampco-Pittsburgh (NYSE:AP) 2022 Revenue Mix (NYSE: AP-WS) Year Founded 1929 77% Number of Employees [2022] 1,565 Forged and Cast Engineered 23% Products Air and Liquid 2022 Revenue $390M Processing Market Cap (as of 8/16/2023)* * Common shares outstanding 19,865,749; $64M Share price $3.21
Slide 5: Forged and Cast Engineered Products Segment
Forged and Cast Engineered Products Segment Ampco-Pittsburgh Investor Presentation August 2023 5
Slide 6: Market Share Leader in Forged & Cast Rolls
Market Share Leader in Forged & Cast Rolls $299M Forged and Cast 2022 Net segment sales Engineered Products #1 Market Share in both North America & Europe[1] 86% of [1] Corporation Estimates segment sales Forged engineered products (FEP) used in automotive tooling, plastic injection 77% molding, inf
Slide 7: What is a "Roll"?
What is a “Roll”? Consumable for rolled steel and aluminum production • A slab of metal will pass through a series of rolls, flattening it until the required thickness and profile is achieved • Rolls are consumables • Over 75% of steel and aluminum products require rolling[1] [1] Corporation Estimat
Slide 8: Steel Demand Outlook
Steel Demand Outlook ➢ World Steel Association (Worldsteel) Short Range Outlook, April 2023: ➢ 2023: • Worldsteel revised up its bi-annual demand outlook, saying global demand is expected to increase 2.3% this year (2023) ➢ 2024: • United States: steel demand is expected to grow by 2.5% • US light v
Slide 9: Capital Investment of $26M
Modernization of North American Production Assets Capital Investment of $26M Replace single-purpose machines with multi-purpose machines Expand forged and heat treatment capacity ✓ Efficiency Improvements ✓ Repair & Maintenance Savings ✓ Working Capital Reduction ✓ Labor Savings ✓ Improved Reliabili
Slide 10: Modernization of North American Production Assets
Modernization of North American Production Assets Preliminary Production Results ➢ 31 Total Rolls Completed ➢ ~20% Reduction in Production Time Ampco-Pittsburgh Investor Presentation August 2023 10
Slide 11: Expanding the Addressable Market
Expanding the Addressable Market Forged Engineered Products Forged Bar Distribution Frac Market ➢ Tool Steel, Carbon and Alloy supplier to steel ➢ Oil Production expected to remain at record service centers highs in 2023 and 2024 [U.S. EIA] ➢ Recovery beginning now as inventory ➢ Corporation antici
Slide 12: Air and Liquid Processing Segment
Air and Liquid Processing Segment Ampco-Pittsburgh Investor Presentation August 2023 12
Slide 13: Air and Liquid Processing Segment
Air and Liquid Processing Segment Leading Player in Niche Markets $91M 2022 Net segment sales Air and Liquid Heat exchangers and Processing Segment heat transfer products Used in nuclear power, industrial 35% of process and HVAC Segment Sales Large custom air handling systems Used in commercial, ins
Slide 14: Key Customers
Air and Liquid Processing Segment Key Customers Ampco-Pittsburgh Investor Presentation August 2023 14
Slide 15: Mission-Critical Functions Across Demanding End Markets
Mission-Critical Functions Across Demanding End Markets Ampco-Pittsburgh Investor Presentation August 2023 15
Slide 16: Resilient Financial Performance Throughout Economic Cycles
Air and Liquid Processing Segment Resilient Financial Performance Throughout Economic Cycles and COVID-19 Years of ~$10 million consistently Record $11.5 average adjusted Strong market Barriers to entry generating million adjusted operating income positions in mission-critical 10% to 13% operating f
Slide 17: Strategies for Growth
Air and Liquid Processing Segment Strategies for Growth • New leadership pivoting towards growth strategy model • Investment in additional sales and support resources already showing results • Business development team identifying new opportunities Sales Growth • Production capabilities increasing t
Slide 18: Strengthening Sales Capabilities
Air and Liquid Processing Segment Strengthening Sales Capabilities New teaming relationships in key markets for improved market access: Curtiss Wright has a significant presence in nuclear markets worldwide. The relationship with Curtiss Wright allows Aerofin to expand in markets in Europe, Asia, an
Slide 19: Strengthening Manufacturing Capabilities
Air and Liquid Processing Segment Strengthening Manufacturing Capabilities Increased manufacturing capabilities allows us to be positioned for the growth happening today and in the future years Manufacturing Space – In Q2 of 2023 additional manufacturing space was leased in Virginia that will give u
Slide 20: Backlog growth leading to Revenue growth
Air and Liquid Processing Segment Backlog growth leading to Revenue growth 2022 began Stronger sales teams Trailing twelve months implementation of new results in continual revenue now trending strategic growth plan by backlog growth. Seven upward due to backlog improving internal and consecutive qu
Slide 21: Strategic Game Plan for Ampco-Pittsburgh
Strategic Game Plan for Ampco-Pittsburgh Turn Around Stages 2018 - 2020 2021 - 2023 Future State Stabilize Invest Grow New Leadership Further Improve Increase Asset Efficiencies Utilization and Strengthened the Operational Efficiencies Balance Sheet Invest in State-of-the-art Equipment Capitalize on
Slide 22: Income (Loss) From Operations Trend
Income (Loss) From Operations Trend (In $ Millions, As-Reported) $4.0 $2.0 $0.0 ($2.0) ($4.0) ($6.0) ($8.0) 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 $0.5 $2.9 ($0.4) ($7.7) ($0.5) $2.1 $0.2 $0.9 $2.0 $3.3 Ampco-Pittsburgh Investor Presentation August 2023 22
Slide 23: Backlog Trend
Backlog Trend Post-pandemic recovery and growth ($ Millions) Backlog represents the accumulation of firm orders on hand which: (i) are supported by evidence of a contractual arrangement, (ii) include a fixed and determinable sales price, (iii) have reasonably assured collectability, and (iv) general
Slide 24: Near-Term Segment Expectations
Near-Term Segment Expectations Assuming End Market Demand Remains Robust: Sales growth 2023-2025 CAGR: • Forged & Cast Engineered Products segment: 8-11% • Air & Liquid Processing Segment: 11-14% Operating Margin Growth, 2023-2025: • Forged & Cast Engineered Products segment: +400-500bps • Air & Liq
Slide 25: Ampco-Pittsburgh Investment Highlights
Ampco-Pittsburgh Investment Highlights Leading supplier in • # 1 market share in Europe and North America for mill rolls defensible niche • Growing position in other niche industrial markets markets[1] • Introduce new products utilizing existing forging assets Organic growth • Expand addressable mar
Slide 26: Thank You
Thank You ampcopgh.com Ampco-Pittsburgh Investor Presentation August 2023 26
Slide 27: Appendix
Appendix Ampco-Pittsburgh Investor Presentation August 2023 27
Slide 28: Ampco-Pittsburgh Global Footprint
Ampco-Pittsburgh Global Footprint North Tonawanda, NY Gateshead, England Åkers Styckebruk, Sweden Ravne na Koroškem, Slovenia Valparaiso, IN Austintown, OH Taiyuan, China Erie, PA Xinjian Town Yixing, China Amherst, VA and Lynchburg, VA Maanshan, China Carnegie, PA Jointly Owned Manufacturing Facili
Slide 29: Non-GAAP Reconciliation Schedule
Non-GAAP Reconciliation Schedule ($000’s) ($000's) 2015 2016 2017 2018 2019 2020 2021 2022 Operating income (loss), Air & Liquid Processing Segment, as reported (US GAAP) [2] $ 23,166 $ 5,123 $ 10,682 $ (22,129) $ 10,002 $ 10,133 $ 2,601 $ 13,686 Add: Asbestos-related charges (credits) [1] (14,333)
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