Slide 1: 2013 Annual Financial Results
2013 Annual Financial Results February 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements contained in this presentation are forward-looking statements. Pursuant to federal securities regulations, we have set forth cautionary statements relating to those forward-looking statements in our Annual Report on Form 10-K for the year ended December
Slide 3: Diversified, Global Manufacturer: Film Products, Bonnell Aluminum
Diversified, Global Manufacturer: Film Products, Bonnell Aluminum Superior manufacturing capabilities and track record Well positioned for future growth in attractive markets Expanding profitable revenue streams while reducing customer and market concentration Strong financial position Act
Slide 4: Our Strategy
Our Strategy With deep manufacturing roots, Tredegar began executing a focused strategy in 2010: To accelerate profitable growth while reducing customer and market concentration Stabilize and grow core businesses Make acquisitions and investments in capacities and capabilities Since 2010, we h
Slide 5: Our Progress: 2010 – 2013 Highlights
Our Progress: 2010 – 2013 Highlights Acquisitions and Capacity Expansions Growth Opportunity Investment Growth of middle class in emerging • Terphane acquisition (2011) and markets; product innovation in an expansion (2013-14) adjacent technology Growth of industrial and specialty markets • AACOA ac
Slide 6: Our Progress: 2010 – 2013 Highlights
Our Progress: 2010 – 2013 Highlights New Products and Capabilities Growth Opportunity Product Area Global growth of diapers • High performance elastics Fuel efficiency standards increasing • Automotive extrusions aluminum content in autos New technologies and growth for mobile • Ultra high-quality s
Slide 7: Our Progress: 2010 – 2013 Highlights
Our Progress: 2010 – 2013 Highlights More than $85 million in dividends paid and share repurchases Financial Results1 Net Sales up over 29% EPS from Ongoing Operations up over 30% Reduced customer and market concentration Return on Invested Capital (ROIC) of 9.4% 1 See Supplemental Informa
Slide 8: Tredegar 2013 Overview
Tredegar 2013 Overview Year-over-year Net Sales and Operating Profit for Ongoing Operations increase Volume rebounds in personal care and surface protection Market challenges in building & construction and flexible packaging Successful integration of AACOA Significant progress on growth in
Slide 9: 2013 EPS from Ongoing Operations
Tredegar Corporation 2013 EPS from Ongoing Operations EPS from Ongoing Operations* Performance Drivers: • Segment Operating Profit from Ongoing Operations flat for the fourth quarter; up $1.20 13% for the full year $1.15 • Non-cash Pension Expense up $1.4MM for the fourth quarter; $5.6MM for the ful
Slide 10: Film Products
Film Products 2013 Fourth Quarter and Full Year Results Net Sales1 $ Millions $612 $621 Fourth Quarter • Lower net sales and operating profit driven primarily by flexible packaging $153 $151 Full Year 2012 2013 2012 2013 • Net Sales up; surface protection and 4Q FY personal care films volume up Oper
Slide 11: Bonnell Aluminum
Bonnell Aluminum 2013 Fourth Quarter and Full Year Results Net Sales1 Fourth Quarter $ Millions $309 • Net Sales flat $245 • Improved operating profit: • Favorable volume, mix and $73 $73 synergies from AACOA • Favorable pricing on value-add services 2012 2013 2012 2013 • Lower spending for supplies
Slide 12: Other 2013 Financial Highlights
Tredegar Corporation Other 2013 Financial Highlights $ Millions, except percentages Cash Flows from Operations $77 Dividends Paid $9 Quarterly Dividend Growth (Y/Y) 16% Net Debt1 $86 Total Debt to Adjusted EBITDA2 1.39x Net Debt to Total Capitalization1 18% ROIC1 9.4% 1 See notes in Supplemental Inf
Slide 13: Market Drivers and Growth Trends
Tredegar Corporation Market Drivers and Growth Trends Growth of middle class in emerging markets Global market growth for absorbent products of 4% year expected through 2017¹: Feminine hygiene +4%¹ Baby diapers + 5%¹ Aging baby-boomers consuming retail adult incontinence products Global
Slide 14: Market Drivers and Growth Trends
Tredegar Corporation Market Drivers and Growth Trends Growing aluminum content in vehicles driven by new fuel efficiency Automotive aluminum extrusion demand expected to grow 38% from 2012 to 2017¹ Packaging innovation and economic development driving increased flexible packaging demand in Lat
Slide 15: Tredegar 2014 Outlook
Tredegar 2014 Outlook Year-over-year volume growth in Film Products and Bonnell Momentum in Film Products volume in second half of year Market challenges continue in flexible packaging Key capital projects to start up this year: Automotive press (1Q14) Flexible packaging line in Brazil (
Slide 16: Outlook
Outlook Performance Targets1 2014 20162 Film Products • Volume Growth 2% 5% • Surface Protection: New technologies for high-end TVs, tablets and smartphones • Flexible Packaging: New capacity begins to ramp up in the first half of 2014 • Personal Care: Growth (primarily from emerging markets) mitiga
Slide 17: Diversified, Global Manufacturer: Film Products, Bonnell Aluminum
Diversified, Global Manufacturer: Film Products, Bonnell Aluminum Superior manufacturing capabilities and track record Well positioned for future growth in attractive markets Expanding profitable revenue streams while reducing customer and market concentration Strong financial position Act
Slide 18: Supplemental Information
Tredegar ns 3 Supplemental Information
Slide 19: Tredegar is Well Positioned for Future Success
Tredegar is Well Positioned for Future Success Leverage core manufacturing capabilities to accelerate profitable growth Increase market share while diversifying customer base and expanding product offerings Strategy Pursue adjacent acquisitions as part of growth and diversification strategy
Slide 20: Financial Summary
Financial Summary Annual Historical Financials Net Sales1 ($MM) Adjusted EBITDA2 ($MM) $1,200 $150 $931 $857 $104 $103 $900 $776 $90 $92 $720 $100 $84 $633 $600 $50 $300 $0 $0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Earnings Per Share from Ongoing Ops3 ($) Adjusted EBITDA less CapEx2 ($MM)
Slide 21: Select Financial Performance
Select Financial Performance 1 Segment Adjusted EBITDA , Ongoing Operations ($MM) Film Products Bonnell Aluminum 134 126 106 108 17 28 98 5 12 1 101 109 106 97 96 2009 2010 2011 2012 2013 Combined Segment 15.5% 14.7% 13.9% 14.7% 14.4% Adj. EBITDA1 Margin %: Films Adj. EBITDA1 Margin %: 21.3% 19.4% 1
Slide 22: Financial Summary – Film Products
Financial Summary – Film Products Annual Historical Financials Net Sales1 ($MM) Adjusted EBITDA2 ($MM) $800 $120 $109 $106 $97 $101 $96 $612 $621 $600 $521 $536 $455 $80 $400 $40 $200 $0 $0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Volume (lbs. MM) Adjusted EBITDA less CapEx2 ($MM) 300 270 2
Slide 23: Film Products
Film Products Net Sales and Operating Profit from Ongoing Operations ($MM) $612 $621 $523 $521 $536 $455 $67 $70 $71 $64 $60 $54 2008 2009 2010 2011 2012 2013 Operating Profit from Ongoing Operations 2 Net Sales 1 Reflects inclusion of Terphane subsequent to acquisition date of 10/24/11 and Bright V
Slide 24: Film Products: Sales by Region
Film Products Sales by Region Net Sales1 by Region – 2010 and 2013 ($521MM Net Sales in 2010) ($621MM Net Sales in 2013) 5% 18% 20% 44% 51% 19% 19% 19% North America Europe Asia Latin America Addition of flexible packaging in late 2011 has broadened our product portfolio and strengthened our presenc
Slide 25: Film Products: Sales by Major Product Category
Film Products Sales by Major Product Category Net Sales1 by Major Product Category - 2010 and 2013 ($521MM Net Sales in 2010) ($621MM Net Sales in 2013) 3% 2% 9% 12% 32% 30% 15% 16% 6% 20% 20% 31% 4% Personal Care-Feminine Hygiene Personal Care-Baby Diaper Personal Care-Adult Incontinence Flexible P
Slide 26: Financial Summary – Bonnell Aluminum
Financial Summary – Bonnell Aluminum Annual Historical Financials 1 2 Net Sales ($MM) Adjusted EBITDA ($MM) $400 $30 $28 $309 $300 $245 $240 $20 $17 $200 $200 $178 $12 $10 $100 $5 $1 $0 $0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2 Volume (lbs. MM) Adjusted EBITDA less CapEx ($MM) 150 144 $
Slide 27: Bonnell Aluminum
Bonnell Aluminum Net Sales and Operating Profit from Ongoing Operations ($MM) $340 $309 $240 $245 $200 $178 $18 $10 $9 $3 ($4) ($7) 2008 2009 2010 2011 2012 2013 2 Operating Profit from Ongoing Operations Net Sales1 Reflects inclusion of AACOA subsequent to acquisition date of 10/1/12. 1 Net sales r
Slide 28: Bonnell Aluminum: Volume by End Market
Bonnell Aluminum Volume by End Market Volume by End Market – 2010 and 2013 (95MM pounds in 2010) (144MM pounds in 2013) 1% 2% 4% 5% 7% 2% 4% 8% 12% 14% 6% 60% 68% 7% Building and Construction, Nonresidential Building and Construction, Residential Transportation (includes automotive) Consumer Durable
Slide 29: Debt Capital Structure and Liquidity Measures
Tredegar Corporation Debt Capital Structure and Liquidity Measures ($MM) December 31, 2013 Total Debt $139.0 Cash and Cash Equivalents $52.6 1 Net Debt $86.4 Shareholders’ Equity $402.7 2 Total Indebtedness-to-Adjusted EBITDA 1.39x Net Debt-to-Capitalization3 18% 1 See Note 4 in Supplemental Informa
Slide 30: Financial Highlights: Capital Expenditures
Tredegar Corporation Financial Highlights: Capital Expenditures ($MM) 2014 Capital Expenditures 2009 2010 2011 2012 2013 Projection2 Film Products 11.5 15.8 13.1 30.5 64.9 50.0 Bonnell Aluminum 22.5 4.3 2.7 2.3 14.7 10.0 Corporate 0.1 0.2 0.1 0.4 0.1 - Total 34.1 20.4 15.9 33.3 79.7 60.0 % Net Sales
Slide 31: GAAP Reconciliations
Tredegar ns 3 GAAP Reconciliations
Slide 32: Supplemental Information: Notes
Supplemental Information Notes Tredegar acquired Bright View Technologies Corporation on February 3, 2010, and its operations were incorporated into Film Products effective January 1, 2012. Prior year balances have been revised to conform with the current year presentation. Film Products results inc
Slide 33: Supplemental Information: Notes (continued)
Supplemental Information Notes Notes (continued): Film Aluminum 2013 Products Extrusions Total Operating profit (loss) from ongoing operations $ 71.0 $ 18.3 $ 89.3 Add back depreciation & amortization 35.3 9.2 44.5 Adjusted EBITDA before corporate overhead (a) 106.3 27.5 133. Corporate overhead - -
Slide 34: Supplemental Information: Notes (continued)
Supplemental Information Notes Notes (continued): 3. The after-tax effects of losses associated with plant shutdowns, asset impairments and restructurings and gains or losses from the sale of assets and other items (which includes unrealized gains and losses for an investment accounted for under the
Slide 35: Supplemental Information: Notes (continued)
Supplemental Information Notes Notes (continued): 4. Net debt is a non-GAAP financial measure that is not intended to represent debt as defined by GAAP, but is utilized by management in evaluating financial leverage and equity valuation. A calculation of net debt is shown below: (In millions) Decemb
Slide 36: Supplemental Information: Notes (continued)
Supplemental Information Notes Notes (continued): 6. Operating profit from ongoing operations is used by management to assess profitability. A reconciliation of operating profit from ongoing operations to net income is show below: Fourth Quarter Operating profit (loss): 2009 2010 2011 2012 2013 2012
Slide 37: Supplemental Information: Notes (continued)
Supplemental Information Notes Notes (continued): 7. The pre-tax and after-tax effects of losses associated with plant shutdowns, asset impairments and restructurings and gains or losses from the sale of assets and other items (which includes unrealized gains and losses for an investment accounted f
Slide 38: Supplemental Information: Notes (continued)
Supplemental Information Notes Notes (continued): 8. Return on invested capital (ROIC) is defined by Tredegar as Adjusted Net Income from Ongoing Operations divided by average Invested Capital where the individual components are defined as follows: Adjusted Net Income from Ongoing Operations equals:
Slide 39: 2013 Annual Financial Results
2013 Annual Financial Results February 2014