Quaker Houghton · NYSE:KWR

Quaker Houghton — Quaker Chemical — Q2 2014 Earnings Presentation

15 slides from Quaker Houghton's earnings presentation, Jul 31, 2014

  1. Slide 1: Quaker Chemical Corporation Investor Conference Call Second Quarter 2014 Results

    1 Quaker Chemical Corporation Investor Conference Call August 1, 2014 Second Quarter 2014 Results

  2. Slide 2: Regulation G and Forward-Looking Statements

    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 and

  3. Slide 3: Speakers

    Speakers Chart #1 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

  4. Slide 4: Second Quarter 2014 Headlines

    Second Quarter 2014 Headlines ▪ 3.5% revenue growth on increased product volume levels ▪ Strong operating income leads 11% increase in non - GAAP earnings per share ▪ Acquisition of remaining 49% interest in Australian affiliate Chart #2

  5. Slide 5: Chairman Comments

    Chairman Comments Second Quarter 2014 ▪ Second Quarter 2014 x Solid volume growth x Growth in North America, China and Europe, partially offset by poor economic conditions in South America x Stable margins despite select market challenges x Strong operating results x Effective business model and com

  6. Slide 6: Chief Financial Officer -- Highlights

    Chief Financial Officer -- Highlights 1) Solid Volume Increases Net Sales 2) Stable Margins Continue to Drive Strong Operating Results 3) SG&A Down Compared to Second Quarter of 2013 4) Solid Growth in Operating Income and Adjusted EBITDA 5) Higher Operating Income Leads 11% Increase in Non - GAAP E

  7. Slide 7: Product Volume by Quarter

    Product Volume by Quarter Thousand Kilograms 25,000 30,000 35,000 40,000 45,000 50,000 55,000 4Q08 YTD Avg. 1Q092Q093Q094Q091Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q14 Chart #5

  8. Slide 8: Financial Snapshot

    Financial Snapshot Q2 2014 Q2 2013 YTD 2014 YTD 2013 Net Sales ($Mils.) 191.3 184.8 373.0 361.0 Gross Margin (%) 35.7 36.4 35.7 36.0 Operating Margin (%) 10.9 10.7 10.8 10.3 Net Income attributable to Quaker Chemical Corporation ($Mils.) 15.4 16.1 28.2 29.7 Adjusted EBITDA ($Mils.) – Trailing Twelve

  9. Slide 9: Gross Margin Percentage

    Gross Margin Percentage 28.0% 34.7% 35.4% 32.6% 33.7% 35.8% 20.0% 25.0% 30.0% 35.0% 40.0% 2008 2009 2010 2011 2012 2013 Gross Margin Percentage 36.4% 35.9% 35.4% 35.8% 35.7% 20.0% 25.0% 30.0% 35.0% 40.0% Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Gross Margin Percentage Chart #7

  10. Slide 10: Adjusted EBITDA Baseline Historical Performance

    Adjusted EBITDA Baseline Historical Performance $40.1 $44.2 $66.8 $73.0 $80.9 $89.6 $99.1 6.9% 9.8% 12.3% 10.7% 11.4% 12.3% 13.3% 2008 2009 2010 2011 2012 2013 Q2 2014 Annualized Adjusted EBITDA ($ Mils.) Adjusted EBITDA Margin (%) 2008 – 2014 Annualized CAGR: 16.3% +640 Margin bps Chart #8

  11. Slide 11: Balance Sheet Net Cash / (Debt)

    Balance Sheet Net Cash / (Debt) -$100 -$80 -$60 -$40 -$20 $0 $20 $40 $60 $80 2008 2009 2010 2011 2012 2013 Q2 2014 $ Millions Cash ST/LT Debt Net Debt Chart #9

  12. Slide 12: Appendix

    APPENDIX

  13. Slide 13: Non-GAAP Earnings Per Diluted Share Reconciliation

    Non - GAAP Earnings Per Diluted Share Reconciliation Chart #10 Q2 2014 Q2 2013 YTD 2014YTD 2013 GAAP Earnings Per Diluted Share 1.16$ 1.22$ 2.13$ 2.26$ UK pension plan amendment per diluted share -$ -$ 0.05$ -$ Mineral oil excise tax refund per diluted share -$ (0.14)$ -$ (0.14)$ Change in acquisiti

  14. Slide 14: Annualized Adjusted EBITDA Reconciliation

    Annualized Adjusted EBITDA Reconciliation Chart #11 2008 2009 2010 2011 2012 2013 YTD Q2 2014 Net income 9,833 16,058 32,120 45,892 47,405 56,339 28,157 Depreciation 10,879 9,525 9,867 11,455 12,252 12,339 6,084 Amortization 1,177 1,078 988 2,338 3,106 3,445 1,628 Interest expense 5,509 5,533 5,225

  15. Slide 15: Trailing Twelve Months Adjusted EBITDA Reconciliation

    Trailing Twelve Months Adjusted EBITDA Reconciliation Chart #12 I = G + H H G = F - D F E = C + D D C = B - A B A Trailing Twelve Months Q2 2014 YTD Q2 2014 Last Six Months 2013 YTD 2013 Trailing Twelve Months Q2 2013 YTD Q2 2013 Last Six Months 2012 YTD 2012 YTD Q2 2012 Net income 54,794 28,157 26,

Quaker Chemical — Q2 2014 Earnings Presentation on 6ix