Materion
A Global Leader in
Advanced Materials Solutions
June 2024
© 2023 Materion Corporation
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 risks, uncertainties and other factors that could cause our actual results to differ materially from the results expressed or implied by these statements, including, but not limited to, our ability to successfully consummate the acquisition of HCS-Electronic Materials; our ability to achieve the strategic and other objectives related to the proposed acquisition of HCS-Electronic Materials, including any expected synergies; our ability to successfully integrate the HCS-Electronic Materials business and other such acquisitions and achieve the expected results of the acquisition, the ultimate impact of the COVID-19 pandemic on our business, results of operations, financial condition, and liquidity; the global economy, including the impact of tariffs and trade agreements; the condition of the markets which we serve, whether defined geographically or by segment; changes in product mix and the financial condition of customers; our success in developing and introducing new products and new product ramp-up rates; our success in passing through the costs of raw materials to customers or otherwise mitigating fluctuating prices for those materials, including the impact of fluctuating prices on inventory values; our success in implementing our strategic plans and the timely and successful completion and start-up of any capital projects; other financial and economic factors, including the cost and availability of raw materials (both base and precious metals), physical inventory valuations, metal financing fees, tax rates, exchange rates, interest rates, pension costs and required cash contributions and other employee benefit costs, energy costs, regulatory compliance costs, the cost and availability of insurance, credit availability, and the impact of the Company's stock price on the cost of incentive compensation plans; the uncertainties related to the impact of war, terrorist activities, and acts of God; changes in government regulatory requirements and the enactment of new legislation that impacts our obligations and operations; the conclusion of pending litigation matters in accordance with our expectation that there will be no material adverse effects; the disruptions on operations from, and other effects of, catastrophic and other extraordinary events including the COVID-19 pandemic; and other risk factors disclosed in periodic reports filed with the Securities and Exchange Commission. Consequently, these forward-looking statements should be regarded as the Company's current plans, estimates, and beliefs. It is not possible for the Company to identify the amount or significance of future adjustments associated with potential insurance and litigation claims, legacy environmental costs, acquisition and integration costs, certain income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time.
To supplement our consolidated financial statements presented in accordance with GAAP, the company considers certain financial measures that are not prepared in accordance with GAAP, including value-added sales (VA sales), adjusted earnings before interest and taxes (EBIT), adjusted earnings before interest and taxes depreciation and amortization (EBITDA), adjusted net income, adjusted earnings per diluted share and net debt (cash). The company uses these non-GAAP financial measures, in addition to GAAP financial measures, to evaluate our operating and financial performance and to compare such performance to that of prior periods and to the performance of our competitors. Also, the company uses these non- GAAP financial measures in making operational and financial decisions and in establishing operational goals. The company also believes providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, helps investors evaluate our operating and financial performance and trends in our business, consistent with how management evaluates such performance and trends. The company also believes these non-GAAP financial measures may be useful to investors in comparing its performance to the performance of other companies, although its non-GAAP financial measures are specific to the company and the non-GAAP financial measures of other companies may not be calculated in the same manner.
2 © 2023 Materion Corporation
Outline
- Materion Overview
- Segment Overview
- Growth Drivers
- Financial Overview
3 © 2023 Materion Corporation
i. Materion Overview
4 © 2023 Materion Corporation
Snapshot
Overview
FY 23 Value-Added (VA) Sales1
Headquarters
FY 23 Revenue
FY 23 Value-Added Sales1
FY 23 Adj. EBITDA Margin1
Countries of Operation
Manufacturing Facilities
Global Employees
Cleveland, OH
$1.7B
$1.1B
19.3%
13
27
~3,400
9%
BY
30% SEGMENT
61%
1%
31%
BY 44%
GEOGRAPHY
24%
- Global leader in high-performing advanced materials
- Strong positions in growing markets delivering innovative solutions to solve customers' most complex technical challenges
Performance Materials
Electronic Materials
Precision Optics
United States
Asia
Europe
All Other
5 © 2023 Materion Corporation | 1Non-GAAP. |
Accelerating Our Transformation
Where We Were (Before 2017)
- Origins as a mining and metals company
- Heritage of beryllium expertise
- Several acquisitions broadened portfolio:
- advanced materials
- precision optics segments
Where We've Been (2017 - 2023)
- Becoming a global leader in advanced materials solutions through:
- organic initiatives
- strategic acquisitions
- Increased investment in R&D
- expanded growth pipeline through customer collaborations
- Strengthened financial profile, doubling margins and returns
Where We Are Going (2024+)
- Accelerating leadership in solutions for growth megatrends
- Delivering step-changeorganic and inorganic growth initiatives
- Investing in next generation solutions to support customer roadmaps
- Building on our leading positions in all major geographies
- Driving above-market top line growth and 20%+ margins
6 © 2023 Materion Corporation
Creating Shareholder Value
Becoming a global leader in high-performing advanced materials serving diverse and attractive markets well aligned with megatrends, while building on our beryllium heritage
Proven Financial Results
Experienced leadership team establishing operating model to drive execution and greater value for
all stakeholders
Creating robust organic pipeline with investments in R&D as we focus on developing innovative solutions for our customers
Leveraging strong cash flow and deploying a disciplined, strategic approach toward profitable organic and inorganic
growth opportunities
VA SALES1 ($M) | ADJ. EPS1 |
$1,127
$5.64
+20.8% CAGR | +38.3% CAGR |
$640
$2.13
2020 | 2023 | 2020 | 2023 |
7 © 2023 Materion Corporation | 1Non-GAAP. |
Materion Operating Model Enables Value Creation
Innovation | Commercial | Operational | Digital | Programmatic |
Excellence | Excellence | M&A | ||
Value Levers: Strengthen, Build And Grow
Developing a High Performance-based Culture to Drive Shareholder Value
8 © 2023 Materion Corporation
Unifying Culture Drives Our Performance
OUR PURPOSE
OUR VISION
OUR VALUES
We push the boundaries of innovation to enable breakthrough solutions that move the world forward.
Be the partner of choice for our customers' advanced materials needs that fuel imagination, performance and sustainable competitive advantage.
Safety
Ethics
Social Responsibility
Collaboration
Diversity & Inclusion
9 © 2023 Materion Corporation
ii. Segment Overview
10 © 2023 Materion Corporation
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Disclaimer
Materion Corporation published this content on 07 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 June 2024 17:39:07 UTC.