BUSINESS UPDATE
APRIL 2024
FORWARD LOOKING STATEMENTS
The information contained in this presentation includes statements based on management's current expectations, estimates and
projections that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include statements regarding the company's anticipated financial and operating performance, relate to future events and expectations and involve known and unknown risks and uncertainties, including but not limited to (i) effectiveness of management's strategies and decisions, including strategic investments, countermeasures to address operational and supply chain challenges and the execution of those strategies, (ii) the successful integration of the acquired operations and technologies, and (iii) the impact of extraordinary external events, such as the COVID-19 pandemic, supply chain and customer
disruptions, and their collateral consequences. The company cautions that such forward-looking statements are not guarantees
of future performance or events and involve significant risks and uncertainties and actual events may vary materially from those expressed or implied in the forward-looking statements as a result of various factors. For a summary of specific risk factors that could cause results to differ materially from those expressed in the forward-looking statements, please refer to the company's reports filed with the Securities and Exchange Commission, including the company's most recent Forms 10-Q and 10-K. All information in this presentation is as of the date of the presentation. The company undertakes no duty to update any forward- looking statement to conform the statement to actual results or changes in the company's expectations except as may be required by law.
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NON-RUN-RATE ITEMS
Non-run-rate items to us are items that, while they may recur from period to period, (1) are particularly material to results, (2) impact costs as a result of external market factors and (3) may not recur in future periods if the same level of underlying performance were to occur. These are part of our business and operating environment but are worthy of being highlighted for the benefit of the users of our financial statements.
Further, presentations including such terms as net income, operating income, or earnings before interest, tax, depreciation and amortization ("EBITDA") "before non-run-rate", "after adjustments" or "adjusted", are not intended to be (and should not be relied on) in lieu of the comparable caption under generally accepted accounting principles ("GAAP") to which it is reconciled. Such presentations are solely intended to provide greater clarity of the impact of certain material items on the GAAP measure and are not intended to imply such items should be excluded.
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NON-GAAP FINANCIAL MEASURES
This information contains certain non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flow of the company. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation
of non-GAAP financial measures to the most directly comparable financial measure in the accompanying tables.
The non-GAAP financial measures used within this presentation are Conversion Revenue, EBITDA, Adjusted EBITDA, Operating Income excluding non-run-rate items, Adjusted Net Income (Loss) and Net Income per diluted share, excluding non-run-rate items and ratios related thereto. These measures are presented because management uses this information to monitor and evaluate financial results and trends and believes this information to also be useful for investors. Reconciliations of certain forward looking non-GAAP financial measures to comparable GAAP measures are not provided because certain items required for such
reconciliations are outside of our control and/or cannot be reasonably predicted or provided without unreasonable effort.
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COMMONLY USED OR DEFINED TERMS AND MEASURES
Term/Measure | Description |
Conversion Revenue | Net sales less the Hedged Cost of Alloyed Metal. |
Conversion Revenue ($/lb.) | Calculated as Conversion Revenue divided by total shipment pounds. |
EBITDA or Adjusted EBITDA | Consolidated Operating Income before non-run-rate plus Depreciation and Amortization. |
EBITDA Margin or Adjusted EBITDA | EBITDA or Adjusted EBITDA as a percentage of Conversion Revenue. |
Margin | |
Hedged Cost of Alloyed Metal | Calculated as the Midwest transaction price of aluminum plus the price of alloying elements plus any realized gains and/or losses on settled hedges related to |
metal sold in the referenced period. | |
LTM | Last twelve months ended March 31, 2024. |
Net Debt Leverage | Calculated as Long-term debt less Cash and cash equivalents, divided by the LTM Adjusted EBITDA. |
NRR | Represents non-run-rate items relating to on-going operations. NRR items are presented on a pre-tax basis. |
Other Applications | Includes custom industrial products and billet. |
Additional Notes
Totals in the attached presentation may not sum due to rounding.
Warrick operations were acquired on March 31, 2021. As a result, our financial information reflects 9 months of Packaging operational results for 2021.
Annual Conversion Revenue for 2020 inclusive of ~$15 million related to modifications to 2020 customer declarations.
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INVESTMENT HIGHLIGHTS
Strong Diversified Portfolio
Leading Market Position in
Strategic End Markets
Long-term Earnings Growth
Potential
Financial Strength and
Operational Flexibility
Sustainability Driven Products
and Solutions
- Secular demand growth for aerospace, packaging and automotive extrusions
- Solid market dynamics in general engineering applications
- Products that meet technically challenging applications
- Strategic customer relationships with multi-year contracts
- Attractive, growing market segments
- Significant strategic investments
- Platforms for additional organic/inorganic growth
- Conservative stewards of capital
- Strong liquidity
- Flexible / highly variable cost structure
- Customer and consumer driven
- Increasing use of recyclable aluminum for beverage & food packaging
- Light-weightingin aircraft and transportation improving fuel efficiency
POSITIONED FOR LONG-TERM
PROFITABLE GROWTH
Conversion Revenue:
~$2 billion
EBITDA Margin:
Mid-to-high 20%
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LEADING N.A. SPECIALTY ALUMINUM MILL PRODUCTS COMPANY
FOURTEEN NORTH AMERICAN MANUFACTURING LOCATIONS
FLAT ROLLED PRODUCTS
INDUSTRIAL / AEROSPACE
FLAT ROLLED PRODUCTS
PACKAGING
EXTRUSIONS
DRAWN PRODUCTS
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CONSISTENT, COMPETITIVE STRATEGY
FOCUS | DIFFERENTIATION | VALUE CREATION | ||||||||||
DEMANDING APPLICATIONS | PRODUCT QUALITY, SERVICE | OPERATING LEVERAGE AND | ||||||||||
AND KaiserSelect® ATTRIBUTES | ||||||||||||
WITH BARRIERS TO ENTRY | MANUFACTURING EFFICIENCY | |||||||||||
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END MARKETS
WE SERVE
DIVERSIFIED END MARKETS
37%(1) | 33%(1) | 22%(1) | 8%(1) |
Aero/HS | Packaging | General | Automotive | ||||||
Engineering | |||||||||
Secular | growth | in | global | Sustainability-driven | North American industrial | Vehicle | light weighting to | ||
commercial air | travel | and | conversion | from plastic | to | demand and continued trend to | achieve | increased energy | |
continued | momentum | in | aluminum | beverage and | food | re-shoring for domestic supply | efficiency in both ICE and EVs | ||
business | jet, defense | and | cans; demand for coated food | ||||||
space | and beverage cans |
- Strong foothold in key end markets through decades of industry expertise, service and brand recognition
- High quality products that meet technically challenging applications (i.e., KaiserSelect®)
- Investments in highly-engineered aluminum mill facilities and products
1 LTM Conversion Revenue as a percentage of the total | 10 |
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Kaiser Aluminum Corporation published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 22:46:21 UTC.