Mativ Holdings, Inc. · NYSE:MATV
Mativ — CJS Securities New Ideas for the New Year Conference 2023
31 slides from Mativ's conference presentation, January 2023
Slide 1: CJS Securities New Ideas for the New Year Conference
Investor Presentation CJS Securities New Ideas for the New Year Conference January 2023
Slide 2: Investment Highlights—a new opportunity
Investment Highlights—a new opportunity Leadership Accelerated Global Operations Positions Growth Potential & Supply Chain in attractive global product with multiple product and with a diverse technology categories marketplace drivers portfolio to drive innovation Material Science Achievable Cost So
Slide 3: Global Leader in Specialty Materials
Global Leader in Specialty Materials ~$3 billion annual sales Advanced Fiber- Technical Based ~$450+ million Materials Solutions synergized EBITDA (ATM) (FBS) target GDP+ growth ~65% ~35% High margin and cash flow 15%+ synergized EBITDA of sales of sales Diversified margin target end-markets Sustain
Slide 4: Two Shared Journeys
Two Shared Journeys Common History Legacy of manufacturing excellence for over 150 years Strong financial profiles, cash flows, and dividends Clear Strategy Leading positions in high growth markets Diverse and complimentary technology capabilities Powered by innovation Shared Vision Solving customer
Slide 5: A Powerful Combination
A Powerful Combination Strategic Fit Synergies Scale Complementary $65 million+ initial cost Increased importance with customers, products, and synergies with potential customers, suppliers and technologies for more investors Strengthens positions in key Highly achievable, run-rate of Global c
Slide 6: Global Scale and Footprint
Global Scale and Footprint Sales in 100+ 32% Countries Europe Manufacturing on 9% 58% 4 Americas APAC Continents ~7,500 Employees Manufacturing locations 6 Investor Presentation
Slide 7: Driving Customer Value
Driving Customer Value That deliver We combine To create critical For demanding essential raw materials components applications performance Filtration Key Specialty Manufacturing End-Product Inputs Attributes Protective Solutions • Fibers Media Value-add Processing • Purification • Polymers • Durabi
Slide 8: Advanced Technical Materials
Advanced Technical Materials ~65% Enterprise sales; diverse, GDP+ growth end-markets Protective Filtration Release Liners Healthcare Industrials Solutions Key • Transportation • Paint protection • Hygiene • Adv. woundcare • Tapes Applications • Water • Interlayer lamination • Labels • Device fixatio
Slide 9: Fiber-Based Solutions
Fiber-Based Solutions ~35% enterprise sales; defensible, leading positions in legacy markets Key Applications % Segment Sales Illustrative Offerings Premium Consumer Packaging & packaging products ~50% Specialty Papers Commercial print Digital transfer Engineered Combustibles Lightweight
Slide 10: How We Win
How We Win Customer-Centric Global Scale & Reach Enduring track record as a trusted We have worldwide scale and collaborator and innovator with blue resources with local assets and chip customers around the world service Solution Driven Material Science We make it happen; customized Deep technical e
Slide 11: Financial Overview
Financial Overview 11 Investor Presentation
Slide 12: Strong Transition to a Powerful Future Together, 3Q:22 Results and Update
Strong Transition to a Powerful Future Together, 3Q:22 Results and Update Solid 3Q organic sales growth of 12% ex-currency Comparable adj. operating profit up 20% Positive price/cost trends Poised for continued growth despite uncertain macro Expect sequentially consistent EBITDA in 4Q:22 (strong y/y
Slide 13: Clear Drivers of Revenue Growth
Clear Drivers of Revenue Growth Fueled by key trends, category dynamics, innovation, and synergies Filtration Demand for cleaner air and water Aligned with key Protective Solutions Adoption of paint protection films megatrends and Release Liners Increased uses of adhesives robust category Heal
Slide 14: Multiple Catalysts to Expand Margins
Multiple Catalysts to Expand Margins Significant value creation potential Merger Synergy Details $65m+ Cost ‐ Highly achievable and well vetted Initial $65m+ cost target Synergies ‐ Additional upside from revenue, working capital Tangible upside from strategic fit Size ‐ Ability to recover input cos
Slide 15: Thoughtful Capital Allocation
Thoughtful Capital Allocation ~3.75x net leverage or below by YE 2022; expect to reach long-term target 2.5x- De-levering a priority 3.5x in 2023 Renewed debt structure Ample liquidity, staggered maturities; ~75% fixed interest rate Capital spending Historical 3-4% of sales; expansion capital aligne
Slide 16: Investment Highlights
Investment Highlights New beginning. Tremendous opportunity. Leadership Positions Material Sciences In attractive global market Extensive expertise with deep categories moats for defensibility Growth Potential Synergies Multiple drivers support positive Clear pathway to margin expansion, outlook hig
Slide 17: Contact Us
Contact Us Visit our website: www.mativ.com Email: investors@mativ.com Phone Number: 770-569-4229 17 Investor Presentation
Slide 18: Appendix
Appendix 18 Investor Presentation
Slide 19: Executive Leadership
Executive Leadership Diverse. Global. Experienced. Julie Schertell President & Chief Executive Officer Andy Wamser Mike Rickheim Natalie Poteran Chief Financial Chief Human Chief Transformation Officer Resources Officer & Officer Administrative Officer Omar Hoek ~ Ricardo Nunez Sarma Malladi Chief O
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Certain financial measures and comments contained in this presentation are “non-GAAP” financial measures. We believe that investors’ understanding is enhanced by disclosing these non-GAAP financial measures as a reasonable basis for comparison of our ongoing results of op
Slide 21: Non-GAAP Reconciliation: Segment Reporting
Non-GAAP Reconciliation: Segment Reporting NOTE RE: SEGMENT REPORTING & COMPARABILITY Effective July 6, 2022, in connection with the close of the Neenah merger, Mativ has two reportable segments for financial reporting purposes: Advanced Technical Materials ("ATM") and Fiber-Based Solutions ("FBS").
Slide 22: Non-GAAP Reconciliation: Segment Reporting (cont.)
Non-GAAP Reconciliation: Segment Reporting (cont.) Non-GAAP Adjustm ents to Operating Profit Three Months Ended Nine Months Ended Septem ber 30, Septem ber 30, 2022 2021 2022 2021 ATM - Restructuring, impairment and other expenses $2.2 $— $16.5 $— ATM - Purchase accounting adjustments 16.1 11.3 38.3
Slide 23: Non-GAAP Reconciliation: Segment Reporting (cont.)
Non-GAAP Reconciliation: Segment Reporting (cont.) Non-GAAP Adjustm ents to Adjusted Operating Profit Three Months Ended Nine Months Ended Septem ber 30, Septem ber 30, 2022 2021 2022 2021 ATM - Depreciation and Stock-based compensation $12.4 $7.2 $27.9 $18.5 FBS - Depreciation and Stock-based compe
Slide 24: Non-GAAP Reconciliation: Combined Legacy Results
Non-GAAP Reconciliation: Combined Legacy Results Three Months Ended Three Months Ended Septem ber 30, 2021 Septem ber 30, 2022 Legacy Neenah Mativ Com bined for Legacy Neenah Adjustm ents Legacy SWM Mativ Adjusted Com parison Advanced Technical Materials (ATM) (1) Net Sales $172.7 ($17.4) $155.3 $26
Slide 25: Non-GAAP Reconciliation: Combined Legacy Results (cont.)
Non-GAAP Reconciliation: Combined Legacy Results (cont.) Three Months Ended Three Months Ended Septem ber 30, 2021 Septem ber 30, 2022 Legacy Neenah Mativ Com bined for Legacy Neenah Adjustm ents Legacy SWM Mativ Adjusted Com parison Corporate Unallocated GAAP Operating Loss ($5.0) ($3.6) ($8.6) ($1
Slide 26: Non-GAAP Reconciliation: Sales Results
Non-GAAP Reconciliation: Sales Results Non-GAAP Reconciliation of Organic Net Sales Growth Advanced Fiber-Based Consolidated Technical Materials Solutions Mativ SWM 3Q:21 Reported Net Sales $260.1 $123.5 $383.6 Neenah 3Q:21 Reported Net Sales (1) 155.3 112.6 267.9 Mativ 3Q:21 Reported Net Sales 415.
Slide 27: Non-GAAP Reconciliation: Consolidated Results
Non-GAAP Reconciliation: Consolidated Results RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DATA (in millions, except per share amounts) Thre e M onths Ende d Se pte m be r Nine M onths Ende d Se pte m be r 30, 30, 2022 2021 2022 2021 Operating prof it/(loss) ($13.9) $23.0 $24.5 $72
Slide 28: Non-GAAP Reconciliation: Consolidated Results (cont.)
Non-GAAP Reconciliation: Consolidated Results (cont.) RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DATA (in millions, except per share amounts) Three Months Ended Septem ber Nine Months Ended Septem ber 30, 30, 2022 2021 2022 2021 Earnings/(loss) per share - diluted ($0.43) $0.38 (
Slide 29: Non-GAAP Reconciliation: Consolidated Results (cont.)
Non-GAAP Reconciliation: Consolidated Results (cont.) Three Months Ended Septem ber Nine Months Ended Septem ber 30, 30, 2022 2021 2022 2021 Net income/(loss) ($22.5) $12.2 ($9.1) $35.6 Plus: Interest expense on debt 23.8 15.3 59.4 35.8 Plus: Interest income on Brazil tax assessments/settlements — —
Slide 30: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor created by that Act and other legal protections. Forward-looking statements include, without limitation,
Slide 31: Forward Looking Statements (cont.)
Forward Looking Statements (cont.) international conflicts and disputes, such as the ongoing conflict between Russia and Ukraine, which restrict our ability to supply products into affected regions, due to the corresponding effects on demand, the application of international sanctions, or practical
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