Luxfer Holdings Plc · NYSE:LXFR
Luxfer — Q1 2023 Earnings Presentation
21 slides from Luxfer's earnings presentation, Apr 27, 2023
Slide 1: First Quarter 2023 Earnings Presentation
FIRST QUARTER 2023 EARNINGS PRESENTATION April 27, 2023 1 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Examples of such forward-looking statements include but are not limite
Slide 3: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS ($M except per share) ▪ Delivered quarterly EPS in line with guidance Q1 Q1 2023 2022 Change ▪ Sales rose 6.8% on constant currency basis ▪ Inflation offset by cost pass-through Sales $101.3 $97.0 +4.4% ▪ Volume/mix and increased legal expense weighed on EBITDA perform
Slide 4: Latest Segment Update
LATEST SEGMENT UPDATE Elektron Gas Cylinders • Ongoing recovery in aerospace and • Ongoing recovery in aerospace End Market automotive Expectations • SCBA and medical demand firm • Expanded chemical kit volumes • Destocking and project delays • Destocking a headwind impacting Alternative Fuels • Sof
Slide 5: Sales Performance by End Market
SALES PERFORMANCE BY END MARKET Year-over-Year Change FY FY FY Q1 2020 2021 2022 2023 Q1 2023 Commentary 42% • Robust areas of Defense demand: Defense, First military aerospace and chemical kits -6.4% +5.9% +5.6% +32.3% Response, & • SCBA, medical O2 and pharmaceutical Healthcare also contribute to
Slide 6: Q1 2023 Financial Bridge: Consolidated
Q1 2023 FINANCIAL BRIDGE: CONSOLIDATED Luxfer Consolidated Sales increased by 4.4% from prior year Sales ($M) +4.4% • Price increases of $10.0M offset rising inflation • Volume contracted in both Elektron and Gas Cylinders $2.3 $3.4 $10.0 • FX headwind of $2.3M due to USD $97.0 $101.3 strengthening
Slide 7: Q1 2023: Segment Results
Q1 2023: SEGMENT RESULTS Q1 Q1 2023 2022 Change Q1 2023 Commentary Elektron: ▪ Strong aerospace, healthcare, and chemical kit demand Sales $59.8 $54.6 +9.5% ▪ Lower demand for higher margin products, including oil & gas and photoengraving plate ▪ Difficult year-over-year comparisons due to price Adj
Slide 8: Reiterating 2023 EPS Guidance
REITERATING 2023 EPS GUIDANCE 2023 Guidance Expectations Sales Growth • Sales outlook tempered amid backdrop of 4% - 7% (incl. volume, price and FX) mixed cyclical indicators Adjusted Diluted EPS $1.15 - $1.35 • Focus on cost control to maintain profitability Assumptions Free Cash Flow Conversion •
Slide 9: Luxfer Business System: Strategy Deployment
LUXFER BUSINESS SYSTEM: STRATEGY DEPLOYMENT Luxfer Business System A critical tool to realize growth potential embedded in our business Drives commonality and best practice in six critical segments Emphasis on near-term execution to unlock sustainable growth Q1 Update: Strategy Deployment ▪ Refreshe
Slide 10: Luxfer MDP
LUXFER MDP Luxfer Management Development Program Organization-wide initiative to invest in Luxfer’s emerging talent Targeted at twenty professionals earlier in their careers Focused on developing managerial, communication and leadership skills Supports high performance, retention and ultimately prof
Slide 11: Well Positioned for Value Creation
WELL POSITIONED FOR VALUE CREATION We will help to create a safe, clean and energy-efficient world Global Industrial Attractive Leading Return Sustainable Company End Markets on Capital Growth ✓ Market leading ✓ Aligned with ✓ Strong balance ✓ Broad pipeline of products secular growth sheet new prod
Slide 12: Appendices
APPENDICES Segment Financial Detail and Reconciliation of Non-GAAP Measures 12 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
Slide 13: Q1 2023: Elektron Segment Results
Q1 2023: ELEKTRON SEGMENT RESULTS Sales ($M) Adj. EBITDA ($M) +9.5% -34.3% $0.9 $0.8 $6.9 $0.6 $6.9 $7.6 $59.8 $1.5 $54.6 $13.4 $3.0 $8.8 Q1 2022 FX Price Volume/Mix Q1 2023 Q1 2022 FX Price Inflation Volume/Mix Other Q1 2023 13 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEV
Slide 14: Q1 2023: Gas Cylinders Segment Results
Q1 2023: GAS CYLINDERS SEGMENT RESULTS Sales ($M) Adj. EBITDA ($M) -2.1% -7.4% $3.1 $2.5 $1.5 $0.2 $3.1 $3.1 $0.2 $0.2 $42.4 $41.5 $2.7 $2.5 Q1 2022 FX Price Volume/Mix Q1 2023 Q1 2022 FX Price Inflation Volume/Mix Other Q1 2023 14 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL
Slide 15: Condensed Consolidated Statements of Income (Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) 1The calculation of earnings per share is performed separately for continuing and discontinued operations. As a result, the sum of the two in any particular period may 15 not equal the earnings-per-share amount in total. 2The loss per share for
Slide 16: Condensed Consolidated Balance Sheets (Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) 16 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 16
Slide 17: Condensed Consolidated Statements of Cash Flows (Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) 17 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 17
Slide 18: Reconciliation of Non-GAAP: Net Debt, Working Capital, Free Cash Flow
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: NET DEBT, OPERATING WORKING CAPITAL, OPERATING WORKING CAPITAL AS A % OF NET ANNUALIZED NET SALES, AND FREE CASH FLOW (UNAUDITED) In millions Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Non-current debt $73.0 $49.6 $49.6 $59.
Slide 19: Reconciliation of Non-GAAP: Adjusted Net Income, EPS, EBITDA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: ADJUSTED NET INCOME FROM CONTINUING OPERATIONS, ADJUSTED EPS, ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN, NET DEBT TO TRAILING 12 MONTHS ADJUSTED EBITDA1 In millions Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net income from co
Slide 20: Reconciliation of Non-GAAP: Return on Invested Capital (ROIC)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: RETURN ON INVESTED CAPITAL (ROIC)1 In millions Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 EBITA $14.5 $13.5 $10.3 $10.4 $12.6 $13.7 $13.0 $10.7 $8.2 Notional tax (3.6) (2.8) (2.5) (3.5) (3.1) (2.7) (2.8) (2.4) (9.5) EBITA af
Slide 21: CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
21 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK