Materion Corporation · NYSE:MTRN
Materion — Investor Presentation (June 2024)
23 slides from Materion's investor presentation, June 2024
Slide 1: A Global Leader in Advanced Materials Solutions
Materion A Global Leader in Advanced Materials Solutions June 2024 © 2023 Materion Corporation
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information These slides contain (and the accompanying oral discussion will contain, where applicable) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown
Slide 3: Outline
Outline i. Materion Overview ii. Segment Overview iii. Growth Drivers iv. Financial Overview 3 © 2023 Materion Corporation
Slide 4: Materion Overview
i. Materion Overview 4 © 2023 Materion Corporation
Slide 5: Snapshot
Snapshot Overview FY 23 Value-Added (VA) Sales1 Headquarters Cleveland, OH 1% 9% FY 23 Revenue $1.7B 31% FY 23 Value-Added Sales1 $1.1B BY BY 44% 30% FY 23 Adj. EBITDA Margin1 19.3% SEGMENT GEOGRAPHY 61% Countries of Operation 13 Manufacturing Facilities 27 24% Global Employees ~3,400 • Global leade
Slide 6: Accelerating Our Transformation
Accelerating Our Transformation Where We Are Going Where We’ve Been (2024+) (2017 – 2023) Where We Were • Accelerating leadership in solutions (Before 2017) • Becoming a global leader in for growth megatrends advanced materials solutions • Origins as a mining and metals through: • Delivering step-ch
Slide 7: Creating Shareholder Value
Creating Shareholder Value Becoming a global leader in high-performing advanced materials serving diverse and attractive markets well Proven Financial Results aligned with megatrends, while building on our beryllium heritage VA SALES1 ($M) ADJ. EPS1 Experienced leadership team establishing operating
Slide 8: Materion Operating Model Enables Value Creation
Materion Operating Model Enables Value Creation Commercial Operational Programmatic Innovation Digital Excellence Excellence M&A Value Levers: Strengthen, Build And Grow Developing a High Performance-based Culture to Drive Shareholder Value 8 © 2023 Materion Corporation
Slide 9: Unifying Culture Drives Our Performance
Unifying Culture Drives Our Performance OUR PURPOSE We push the boundaries of innovation to enable breakthrough solutions that move the world forward. Be the partner of choice for our customers’ OUR VISION advanced materials needs that fuel imagination, performance and sustainable competitive advant
Slide 10: Segment Overview
ii. Segment Overview 10 © 2023 Materion Corporation
Slide 11: Integrated Operating Segments
Integrated Operating Segments 2023 Value-Added (VA) Sales1 BY END BY END BY END MARKET MARKET MARKET $689M $335M $104M Performance Materials Electronic Materials Precision Optics A leading global supplier of high- A world-leading supplier of thin-film Globally recognized leader in customized perform
Slide 12: Performance Materials Segment Overview
Performance Materials Segment Overview Product Overview Strategic Initiatives • Beryllium & beryllium-containing materials • Continue to drive profitable growth and increased capability through • Clad metals customer partnerships • High-performance alloys • Provide our customers with high-value, hig
Slide 13: Electronic Materials Segment Overview
Electronic Materials Segment Overview Product Overview Strategic Initiatives • Electronic deposition materials • Capture maximum growth as semiconductor market recovers • Electric vehicle battery materials • Enhance semiconductor presence through deposition material portfolio • Electronic components
Slide 14: Precision Optics Segment Overview
Precision Optics Segment Overview Product Overview Strategic Initiatives • Precision filters and optical coatings • Align the portfolio to key global megatrends and focus on a market-driven • Hyperspectral filter arrays growth strategy • Utilize technical engineering expertise to develop next-genera
Slide 15: Growth Drivers
iii. Growth Drivers 15 © 2023 Materion Corporation
Slide 16: Our Future Aligns with Global Megatrends
Our Future Aligns with Global Megatrends MEGATRENDS are changes in our world that permanently affect most areas of life, creating completely new patterns and rendering others obsolete. They are not short-term, reversible swings but long-term, structural, transformational shifts. Connectivity Advance
Slide 17: End Markets Served through Materion Operating Model
End Markets Served through Materion Operating Model FY 23 Operating End Market Trends / How We Win VA Sales1 Segment • Partnering with leading global semiconductor manufacturers Semiconductor 24% EM, PM, PO • A top producer of deposition materials for microelectronic applications Industrial 17% • Br
Slide 18: Recently Announced Organic Growth Advancements
Recently Announced Organic Growth Advancements Secured four orders Secured record in 2023 totaling $70M $60M of new defense orders to supply critical in 2023, expanding the materials for space pipeline through propulsion systems customer relationships Awarded two investments in 2023 $125M totaling i
Slide 19: Financial Overview
iv. Financial Overview 19 © 2023 Materion Corporation
Slide 20: Executing Our Strategy to Drive Growth and Value Creation
Executing Our Strategy to Drive Growth and Value Creation VA Sales1 ($M) Adj. EBITDA1 ($M) Adj. EPS1 $217.7 +20.8% CAGR +30.5% CAGR +38.3% CAGR $5.64 $1,114.4 $1,127.1 $196.0 $5.27 19.3% $4.06 $143.6 $829.6 17.6% $97.8 17.3% $640.1 $2.13 15.3% 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2
Slide 21: Disciplined Capital Deployment
Disciplined Capital Deployment CASH FLOW ($M) $144 $116 $120 $99 $101 $103 $90 $76 $78 $67 Invest in new $34 Disciplined $27 products, facilities capital budgeting and productivity process projects 2018 2019 2020 2021 2022 2023 CapEx OCF Opportunistic Capital Complementary share products / DIVIDENDS
Slide 22: Strong Balance Sheet Fuels Value-Creating Capital Allocation
Strong Balance Sheet Fuels Value-Creating Capital Allocation Leverage slightly below the midpoint of our target range of 1.5x – 3x ($M) 2022 2023 Total Debt $432.0 $426.2 Meaningful available liquidity to support growth initiatives; approximately $179 million Cash & Cash Equivalents $13.1 $13.3 avai
Slide 23: Materion enables what's next
Materion enables what’s next ™ Materion Corporation +1 216.486.4200 http://www.materion.com Connect With Us © 2023 Materion Corporation