Jefferies Virtual Industrials Conference
August 4, 2021
NYSE: GLT
Dante Parrini, Chairman & CEO
Forward Looking Statements and Use of Non-GAAP Financial Measures
Any statements included in this presentation which pertain to future financial and business matters are "forward- looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. The Company uses words such as "anticipates", "believes", "expects", "future", "intends" and similar expressions to identify forward-looking statements. Any such statements are based on management's current expectations and are subject to numerous risks, uncertainties and other unpredictable or uncontrollable factors that could cause future results to differ materially from those expressed in the forward-looking statements including, but not limited to: the impacts of the COVID-19 pandemic, changes in industry, business, market, political and economic conditions globally, demand for or pricing of its products, changes in tax legislation, governmental laws, regulations and policies, initiatives of regulatory authorities, technological changes and innovations, market growth rates, and currency exchange rates. In light of these risks, uncertainties and other factors, the forward-looking matters discussed in this presentation may not occur and readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements speak only as of the date of this presentation and Glatfelter undertakes no obligation, and does not intend, to update these forward- looking statements to reflect events or circumstances occurring after the date of this presentation. More information about these factors is contained in Glatfelter's filings with the U.S. Securities and Exchange Commission, which are available at www.glatfelter.com.
During the course of this presentation, certain non-U.S. GAAP financial measures will be presented. A reconciliation of these measures to U.S. GAAP financial measures is included in the appendix of this presentation.
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Highlights - Q2 2021
- Adjusted EBITDA of $28 million in-line with expectations
- Adjusted EPS of $0.18, ahead of expectations driven primarily by a lower tax rate
- Airlaid segment finished the quarter strong with improving demand conditions
- Airlaid Materials outperformed expectations for the quarter driven by rebound in tabletop category and performance of Mount Holly
- Composite Fibers' profitability below expectations driven by unfavorable sales mix and higher energy prices
- All production locations remained operational
- Net Leverage 3.1x at June 2021 following Mount Holly acquisition
- Recent announcement to acquire Jacob Holm will add scale and provide a best-in-class suite of nonwovens technologies, applications, and products to serve customers' growing global demand
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Glatfelter's Ongoing Strategic Transformation
2022 & Beyond
2018 - 2021
Pre-2018
- Expanded internationally acquiring Schoeller & Hoesch GmbH creating Composite Fibers business
- Acquired Lydney, UK facility to expand tea and coffee business
- Acquisition of Concert Industries creates Airlaid Materials business
- Dresden acquisition adds Nonwoven Wallcover product line
- Completed capacity expansions in Composite Fibers to serve Tea, Coffee, and consumer growth markets
- Oberschmitten acquisition expands Electrical product line
• Sale of Specialty Papers | • |
business creates more | |
growth focused and stable | |
Engineered Materials platform | |
• Terminated and settled | • |
qualified pension plan and | |
reverted $33 million cash back | • |
to company | |
• Fox River liability settled | |
and paid $20.5 million as part | |
of final settlement | • |
- New airlaid facility in Fort Smith, AR expanded capacity by 20%
Acquired 2 Georgia-Pacific airlaid facilities to capture and
service long term demand for health and hygiene products
Issued first "Sustainability" report in 2020 formalizing our ESG
priorities
Relocated Corporate Headquarters to Charlotte, North Carolina to enhance access to resources and more diverse talent
Recently announced acquisition of Jacob Holm to add scale and
best-in-class suite of nonwovens technologies, applications, and products
- Execute on integration of recently announced acquisitions with a focus on synergy capture and deleveraging
- Accelerate innovation to further expand engineered materials product portfolio
- Continue to pursue attractive growth investment opportunities as balance sheet permits
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Investment Highlights
Leading Positions in Growing Segments
Strong Engineering & Innovation Capabilities
- Global engineered materials company serving attractive segments growing at GDP / GDP+ levels
- Categories include feminine hygiene, adult incontinence, tabletop, tea bags, single-serve coffee and wallcover
- Deep knowledge of materials, manufacturing technology and product performance
- Delivering customized solutions and innovative products to key strategic customers
- Building a more sustainable product portfolio focused on eco-friendly materials
Financial Summary*
(TTM 06/30/21)
Sales: ~$939 million
Airlaid
Materials
43%
Composite
Fibers
57%
Sustainability & Safety
Operational Excellence & Continuous Improvement
- Robust product safety and quality standards
- Top quartile employee safety track record
- Operational Excellence contributes meaningfully to margin enhancement and improved cash flows
- Continuous Improvement programs focused on minimizing waste, reducing inefficiencies and maximizing uptime
Adjusted EBITDA
~$118 million
- 13% Margin
- - Includes recent Mount Holly acquisition from date of acquisition of May 14th, 2021 but does not reflect recently announced Jacob Holm acquisition
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P.H. Glatfelter Company published this content on 03 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2021 15:52:13 UTC.