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INVESTOR PRESENTATION
November 2017
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 the actual
results of the Company to differ materially from the results expressed or implied by these statements,
including health issues, litigation and regulation relating to our business, our ability to achieve and/or
maintain profitability, significant cyclical fluctuations in our customers’ businesses, competitive substitutes
for our products, risks associated with our international operations, including foreign currency rate
fluctuations, energy costs and the availability and prices of raw materials, and other 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.
The Company does not undertake and specifically declines any obligation to publicly release the results
of any revisions to these forward-looking statements that may be made to reflect any future events or
circumstances after the date of such statements or to reflect the occurrence of anticipated or
unanticipated events.
These slides include certain non-GAAP financial measures as defined by the rules and regulations of the
Securities and Exchange Commission. A reconciliation of those measures to the most directly
comparable GAAP equivalent is provided in the Appendix to this presentation.
Forward-looking Statements
2
Materion at a Glance
3
Adjusted EPS1 $1.32
Adjusted EBITDA1 $81M
Debt-to-capitalization1 1%
Operating cash flow $67M
Revenues $969M
Value-added sales1 $600M
2016
~1% Dividend yield
1 Non-GAAP, excludes special items. Refer to the Appendix for additional detail.
$1.49
$84M
1%
$76M
$1,065M
$642M
Q3 2017 TTM
~1%
Consumer Electronics
28%
Industrial Components
15%
Medical
11%
Defense
9%
Automotive Electronics
8%
Telecom Infrastructure
6%
Energy
5%
0
82%
Performance Alloys
and Composites
55%
Advanced Materials
29%
Precision
Coatings
16%
Materion: Making Advanced Materials That
Improve the World
% of Value-added Sales 2016
4
Segment Financial Performance
5
Materion Corporation Performance Alloys & Composites (PAC)
Advanced Materials (AM) Precision Coatings (PC)
$637 $617 $600
$642
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
$0
$100
$200
$300
$400
$500
$600
$700
2014 2015 2016 TTM 2017
$359
$335 $332
$346
0%
2%
4%
6%
8%
10%
12%
$0
$50
$100
$150
$200
$250
$300
$350
$400
2014 2015 2016 TTM 2017
$181 $183 $176
$211
0%
5%
10%
15%
20%
25%
$0
$50
$100
$150
$200
$250
2014 2015 2016 TTM 2017
$102 $102
$98
$90
0%
2%
4%
6%
8%
10%
12%
14%
16%
$0
$20
$40
$60
$80
$100
$120
2014 2015 2016 TTM 2017
Value-added Sales1 (millions) Adjusted Operating Profit Margin1
1 Non-GAAP, excludes special items. Refer to the Appendix for additional detail.
Materion: Investment Thesis
6
Deliver sustained
growth of double-digit
EPS CAGR
Leading position in very attractive markets 2
Future growth opportunities 3
Strong cash flow and balance sheet 5
4
PAC profitability improvement plan
underway
1
Renewed focus on consistently delivering
profitable growth
Consistently Deliver Profitable Growth
7
Accelerating implementation of
profitable growth model
PROFITABLE
GLOBAL GROWTH
COMMERCIAL
EXCELLENCE
OPERATIONAL
EXCELLENCE
INNOVATION ACQUISITIONS
PERFORMANCE-BASED CULTURE AND RESULTS
► Year-over-year and sequential value-added (VA) sales and
adjusted profit growth for Q1, Q2, and Q3
► Five consecutive quarters of year-over-year VA sales growth
► Completed Heraeus acquisition, expanding global footprint
► Long-term raw material beryllium hydroxide agreement
reached with longstanding customer; shipments started in
Q2
► Narrowed full-year 2017 adjusted earnings guidance to the
high end of the range of $1.55 - $1.60 per share
2017 YTD Highlights
8
Materion: Investment Thesis
9
G O A L :
Sustained growth
Double-digit EPS
CAGR
Leading position in very attractive markets 2
Future growth opportunities 3
Strong cash flow and balance sheet 5
4
PAC profitability improvement plan
underway
1
Renewed focus on consistently delivering
profitable growth
Deliver sustained
growth of double-digit
EPS CAGR
Well-positioned with Leading Global
Product Offering
10
Product External Segment
2016
% of
Value-added
Sales
Expected Annual
Growth
Next 3-5 Years
Leading supplier of beryllium-containing
products
Performance Alloys
& Composites ~43%
Leading supplier of high-purity precious metal
for physical vapor deposition (PVD) market
Advanced
Materials ~21%
Leading supplier of high-end optical coatings
Precision
Coatings ~9%
Leading supplier of specialty coating test
strips for medical diagnosis
Precision
Coatings ~7%
Only supplier of unique copper-nickel-tin
materials, ToughMet®
Performance Alloys
& Composites ~6%
Double digit growth Single digit growth
Market
2016 % of
Value-added Sales
Key
Drivers
Consumer
Electronics
28%
• Smart device growth
• Sensing devices
• Internet of Things (IoT)
Industrial
Components
15%
• Heavy equipment builds
• Plastic tooling
• Fire protection (R and C construction)
Medical 11%
• Blood analysis test coating for medical diagnosis
• Nuclear diagnostics equipment
Defense 9%
• Precision-guided munitions
• Structural and electronic components for satellites,
combat vehicles, and military aircraft
Automotive
Electronics
8%
• Electronic systems and engine control
• Increasing emissions standards
Telecom
Infrastructure
6%
• 4G completion/5G rollout
• Undersea repeater housings
Energy 5%
• Deep sea drilling and completion
• Directional drilling
• Solar, batteries, and smart grid devices
Well-diversified Market Penetration
11
Total 82%
Materion: Investment Thesis
12
G O A L :
Sustained growth
Double-digit EPS
CAGR
Leading position in very attractive markets 2
Future growth opportunities 3
Strong cash flow and balance sheet 5
4
PAC profitability improvement plan
underway
1
Renewed focus on consistently delivering
profitable growth
Deliver sustained
growth of double-digit
EPS CAGR
Global Megatrends Play to Our Strengths
13
Key Trends
• Miniaturization of electronics/IoT
• Additional electronic instruments for
autos, aircraft
• Expanding high performance
optical device opportunities
• Innovation in medical diagnostics and
sensors
• Extraction of oil and gas from
previously inaccessible locations
• Alternative energy
• New aircraft builds and retrofits
• Advancements in lighting (LED)
Characteristics of
our Materials
Conductivity
Corrosion resistance
Weight savings (lighter)
Purity
Wavelength management
Thermal management
Lubricity
Reliability
Durability
Miniaturization
Strength
9.7%
11.2%
11.6%
14.1%
15.7%
2013 2014 2015 2016 2017
YTD
Innovation Leading to Organic Growth
14
New Product Value-added Sales as % of Total Noteworthy New Products Offerings
Phosphor Wheel
• Provides high brightness, longer life
• Offers low noise characteristics,
individual precision balancing, and
stable colors
Dovetail Clad®
• Best solution for laser welding of Li-Ion
batteries
• Lowest cost assembly
eStainless®
• Thermally conductive replacement for
conventional stainless steels
• Manages higher heat of today’s
processing technology
ToughMet® Couplings
• Copper-nickel-tin alloy that resists
mechanical wear, thread damage,
corrosion, and erosion
• Maximizes oilfield production
1 CAGR calculated from 2013 – 2016
Materion: Investment Thesis
15
G O A L :
Sustained growth
Double-digit EPS
CAGR
Leading position in very attractive markets 2
Future growth opportunities 3
Strong cash flow and balance sheet 5
4
PAC profitability improvement plan
underway
1
Renewed focus on consistently delivering
profitable growth
Deliver sustained
growth of double-digit
EPS CAGR
Performance Alloys and Composites
(PAC) Profitability
16
$33.3
$23.6
$9.2
$0
$5
$10
$15
$20
$25
$30
$35
2014 2015 2016
m
ill
io
n
s
PAC Operating Profit Excluding Special Items
5-year Trend
$33.3
$9.2
$10.8
$9.2
$4.1
$0
$5
$10
$15
$20
$25
$30
$35
2014 Oil & Gas Fx Price/Mix/
Volume/
Mfg Efficiency
2016
PAC Operating Profit Excluding Special Items
2014 – 2016 Bridge
1 1
How did we get here?
1 Non-GAAP, excludes special items. Refer to the Appendix for additional detail.
$33.3
$23.6
$9.2
$17.0
$0.7
$6.2 $7.0
$0
$5
$10
$15
$20
$25
$30
$35
2014 2015 2016 Q3 2017 TTM Q1 Q2 Q3
2017
m
ill
io
n
s
PAC Operating Profit Excluding Special Items1
PAC Improvement Plan
17
1. Reduce cost footprint and move to a more variable cost structure
2. Improve product portfolio mix and profitability through pricing and manufacturing process changes
3. Leverage beryllium market supply opportunity
Expect to return to historical profitability levels by end of 2018
(high single digit operating margins)
Recovery plan
1 Non-GAAP, excludes special items. Refer to the Appendix for additional detail.
Annual Quarterly
Materion: Investment Thesis
18
Leading position in very attractive markets 2
Future growth opportunities 3
Strong cash flow and balance sheet 5
4
PAC profitability improvement plan
underway
1
Renewed focus on consistently delivering
profitable growth
Deliver sustained
growth of double-digit
EPS CAGR
2016 2018 (F)
25%
28%
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2013 2014 2015 2016
Cash Flow from Operations
($ in millions)
Free Cash Flow Capital Expenditures
Cash Flow and Working Capital
Efficiency Focus
19
Improve Working Capital3 Efficiency
Working capital % of net sales
1 Free Cash Flow calculated as cash flow from operations less capital expenditures
2 Capital Expenditures includes mine development costs
3 Working capital is calculated as accounts receivable plus inventory less accounts payable
$-
$0.10
$0.20
$0.30
$0.40
2012 2013 2014 2015 2016
Dividends per share
$75.9
$60.3
$90.2
$67.2
1 2
Disciplined Capital Deployment Going
Forward
20
Return Cash to Shareholders
• Share repurchase - $50M
authorization ($16M remaining)
• Dividends – increased 5% in 2017
Capex Below Depreciation
• Invest in facilities
• Invest in new products
Growth
• Organic
• Selective bolt-on acquisitions
35% Debt &
Shareholder
65%
Growth
Materion: Investment Thesis
21
Leading position in very attractive markets 2
Future growth opportunities 3
Strong cash flow and balance sheet 5
4
PAC profitability improvement plan
underway
1
Renewed focus on consistently delivering
profitable growth
Deliver sustained
growth of double-digit
EPS CAGR
Appendix
Performance Alloys and Composites
A-1
Clad Strip
12%
ToughMet
11%
CuBe
52%
Be - Alloys
9%
Be – High Purity
14%
Europe 20%
United States
55%
Rest of World 1%
Asia 24%
Telecom
Infrastructure
9%
Automotive
Electronics
14%
Defense
11% Industrial
Components
19%
Medical
2%
Other
18%
Consumer
Electronics
21%
Energy
6%
0%
2%
4%
6%
8%
10%
12%
14%
$100
$150
$200
$250
$300
$350
$400
2012 2013 2014 2015 2016
$337 $340
$359
$335 $332
Product Mix1 Geographic Mix1 Value-added Sales by Market1
New product development
• New proprietary non-Be alloys with improved durability &
weight-to-strength ratio
• New heat dissipating clad material
• Improving customer yields with “near net shape” products
New application development
• Clad material serving the renewable energy market
• Precision rolling to thinner strips opening new application
opportunities
• ToughMet couplings serving the oil and gas production market
resist mechanical wear, thread damage, corrosion, and erosion
Changing beryllium demand
• World’s only fully integrated producer
• Minimum of 75 years of proven mine reserves in Delta, Utah
• Primary Be competitor is consuming stockpiled ore
Growth Drivers Value-added Sales
O
P
%
o
f V
A
S
al
e
s
V
A
S
al
es ($
m
ill
io
n
s)
Hydroxide
2%
1 Reflects 2016 mix by market, geography, and product
Beryllium Market Supply Opportunity
Materion – leading position in beryllium market
• Only global integrated producer
– Minimum of 75 years of proven reserves in Utah mine
– Supplies over 70% of world’s mined beryllium
• 40% of company sales include beryllium in some form
• Global stockpiled sources depleting
• Only significant commercially active bertrandite ore mine
• Materion positioned to support world demand
• Significant incremental profit potential
A-2
World’s Only Vertically Integrated
Beryllium Producer
Ore
Chemical Plant
Hydroxide
Whiting Arc
Furnace
Pebble Plant
CuBe Master
VCB1 /
Be Powder
CuBe Alloy Products
High-Purity Be
Products
Strip/Bulk
Manufacturing
Be Manufacturing
Competitor
B
Competitor
A
1 Vacuum Cast Billet
A-3
0%
5%
10%
15%
20%
25%
30%
$100
$125
$150
$175
$200
2012 2013 2014 2015 2016
Advanced Materials
Services
15%
Packaging
10%
Targets
57%
Chemicals
18%
Europe 6%
United States
78%
Rest of World 1%
Asia 15%
Telecom
Infrastructure 4%
Defense
3%
Other
20%
Medical 7%
Consumer
Electronics
46%
Industrial
Components
13%
Energy 7%
$172
$169
$181 $183
$176
Product Mix1 Geographic Mix1 Value-added Sales by Market1
Growth Drivers Value-added Sales
O
P
%
o
f V
A
S
al
e
s
V
A
S
al
es ($
m
ill
io
n
s)
1 Reflects 2016 mix by market, geography, and product
New product development
• Highly technical advanced chemicals, pure metals, and alloys,
including evaporation materials and large PVD targets
• High-value products with capacity to scale
Semiconductor
• Long-term high growth market
• Heraeus acquisition further accelerates position in this market
• Full suite of best in class ultra-pure, clean room ready products
• Quality and reliability highly valued
Growth opportunities
• Continued product and market diversification
• Continued geographic diversification specifically in Asia and
Europe
• Asia is a high growth region where customers are exploiting
excess fab capacity and use our current material set
A-4
Heraeus – Augmentation through M&A
Acquisition
Description
► Acquisition of high-performance target materials business of Heraeus Group
► Provides broader market, technology, and geographic diversification
► Precious and non-precious metal targets for architectural and automotive
glass, electronic display, photovoltaic, and semiconductor markets
► Facilities in Germany, Taiwan, and United States
Transaction
Considerations
► $30 million purchase price (cash + assumed liabilities)
► Inclusive of assumed pension liability and estimated non-recurring deal,
carve-out, and integration costs – represents a ~6.5x EBITDA multiple1
Forecasted
Financial Impact
► Annualized value-added sales of $40 – $50 million
► EPS accretive in year one, excluding special one-time costs
► Operating margins - mid single digits prior to synergies
► Significant synergy opportunity both commercial and operational
► Forecasted > 15% IRR
1 Based on 2016 EBITDA
A-5
New product development
• New precious metal coating stacks
• Novel electrode alloys
• Gesture control sensing
• Phosphor wheel and thermal imaging
New market development
• Expanding into Asia with blood glucose test strips
• New applications for medical sensing films
• Growing demand for optical filters in consumer electronics and
automotive sensors
Expanded service offering
• Optical coating is the critical sensor assembly application
• Gettering capabilities for wafer level processing
• Laser patterning
• Precision film slitting & sheeting
0%
4%
8%
12%
16%
20%
24%
$60
$70
$80
$90
$100
$110
$120
2012 2013 2014 2015 2016
Precision Coatings
A-6
BGTS
42%
Projection Display
Components
19%
Optical Filters
& Arrays
39%
Europe 11%
United States
74%
Rest of World 1%
Asia 14%
Automotive
Electronics 3%
Defense
14%
Other
9%
Medical
50%
Consumer
Electronics
20%
Industrial Components
4%
$106
$104
$102 $102
$98
Product Mix1 Geographic Mix1 Value-added Sales by Market1
Growth Drivers Value-added Sales
O
P
%
o
f V
A
S
al
e
s
V
A
S
al
es ($
m
ill
io
n
s)
1 Reflects 2016 mix by market, geography, and product
Applications
► Advanced chemicals for OLED applications
► Multiple product offerings for smartphones, including connector
material and voice coil motor (auto focus lens stabilizer)
► Phosphor wheel and opto-ceramic coatings for laser projectors
► Wafer level optical coatings for electronic devices
► 3D/gesture control optical filter capability
► Semiconductor targets for Tier 1 suppliers
Consumer Electronics
A-8
► Precious metal blood glucose test strips for diabetes testing
► Be material for x-ray equipment applications
► Narrow-band optical filters for spectroscopy
► Continuous glucose monitoring (CGM) electrodes for type 2
diabetes
Medical
31 A-9
► Infrared sensors for fighter jet, unmanned aerial vehicle optical targeting
► Optical filters for precision-guided munitions
► Structural components for combat vehicles and aircraft
► Optical, structural, and electronic components for satellites
Defense
32 A-10
► Connector material for battery and high temperature applications
► High-performance alloys (i.e., CuBe, ToughMet®) for the powertrain
► Metal matrix composites (i.e., SupremEx®) for chassis, suspension, and
braking component applications
► Optical filters: night vision, speed control, sensors, camera applications
Automotive Electronics
33 A-11
► ToughMet couplings for oil production
► ToughMet components for oil drilling applications
► Connector materials (i.e., Dovetail®) for fuel cell batteries
► Precious metal targets for coatings on construction glass
Energy
34 A-12
Financial
Information
Reconciliation for Value-added Sales
A-14
$ in millions
Value-added sales is a non-GAAP measure that removes the impact of pass-through metal costs and allows for analysis without the distortion of the movement or
volatility in metal prices. Internally, we manage our business on this basis, and a reconciliation of net sales to value-added sales is included herein.
Q3 2017 TTM Q3 2017 Q2 2017 Q1 2017 2016 2015 2014 2013 2012
Net Sales
Performance Alloys and Composites 406.0$ 109.4$ 108.5$ 92.6$ 387.5$ 394.8$ 433.3$ 422.9$ 424.4$
Advanced Materials 537.9 157.8 157.1 114.7 437.2 482.3 547.3 592.0 694.8
Precision Coatings 121.2 27.1 30.2 33.4 144.5 148.4 147.7 152.3 153.0
Other - - - - - (0.2) (1.4) (0.3) 0.9
Total 1,065.1$ 294.3$ 295.8$ 240.7$ 969.2$ 1,025.3$ 1,126.9$ 1,166.9$ 1,273.1$
Less: pass-through metal costs
Performance Alloys and Composites 60.3$ 18.8$ 15.8$ 13.4$ 55.5$ 59.7$ 74.8$ 83.0$ 87.4$
Advanced Materials 327.0 97.4 95.1 67.4 260.9 299.5 366.3 423.4 522.7
Precision Coatings 31.2 5.2 7.6 10.1 46.8 46.6 45.3 48.0 46.7
Other 5.0 1.5 1.2 0.8 6.1 2.3 3.4 3.3 0.7
Total 423.5$ 122.9$ 119.7$ 91.7$ 369.3$ 408.1$ 489.8$ 557.8$ 657.5$
Valu -added sales
Performance Alloys and Composites 345.7$ 90.6$ 92.7$ 79.2$ 332.0$ 335.1$ 358.5$ 339.9$ 337.0$
Advanced Materials 210.9 60.4 62.0 47.3 176.3 182.8 181.0 168.6 172.1
Precision Coatings 90.0 21.9 22.6 23.3 97.7 101.8 102.4 104.2 106.4
Other (5.0) (1.5) (1.2) (0.8) (6.1) (2.5) (4.8) (3.6) 0.1
Total 641.6$ 171.4$ 176.1$ 149.0$ 599.9$ 617.2$ 637.1$ 609.1$ 615.6$
Reconciliation for Adjusted EPS
A-15
As detailed in the above reconciliation, we have adjusted the results for certain special items, such as cost reduction initiatives (i.e., asset impairment
charges and severance), legacy legal and environmental costs, CEO transition costs, merger and acquisition costs, and certain income tax items from the
applicable GAAP measure. Internally, management reviews the results of operations without the impact of these costs in order to assess the profitability
from ongoing operations. We are providing this information because we believe it will assist investors in analyzing our financial results and, when viewed in
conjunction with the GAAP results, provide a more comprehensive understanding of the factors and trends affecting our operations.
In millions, except per share amounts
Q3 2017 TTM Q3 2017 Q2 2017 Q1 2017 2016 2015 2014 2013 2012
GAAP As Reported
Operating Profit 28.3$ 11.6$ 9.7$ 3.4$ 27.1$ 45.3$ 57.6$ 27.6$ 36.2$
Net Income 26.5 9.3 7.3 3.1 25.7 32.2 42.1 20.2 24.3
Weighted average diluted shares outstanding 20.355 20.411 20.347 20.375 20.213 20.402 20.852 20.943 20.740
EPS - Diluted 1.30 0.46 0.36 0.15 1.27 1.58 2.02 0.97 1.17
Operating Profit Special Items
Cost reductions 4.6$ 0.6$ 0.7$ 0.7$ 2.6$ 1.9$ (1.6)$ 4.9$ -$
Legacy legal & environmental costs (benefits) 0.2 - - 0.2 1.4 (1.4) (6.9) - 7.4
CEO transition 3.4 0.8 0.9 1.7 - - - - -
Acquisition costs 3.1 - 0.4 1.7 3.9 - - - -
Total operating profit special items 11.3$ 1.4$ 2.0$ 4.3$ 7.9$ 0.5$ (8.5)$ 4.9$ 7.4$
Operating Profit Special Items - net of tax 7.3$ 0.9$ 1.3$ 2.8$ 5.1$ 0.3$ (5.6)$ 3.4$ 4.8$
Tax Special Item (3.3)$ -$ -$ -$ (4.2)$ 0.2$ (1.8)$ -$ -$
Non-GAAP Measures - Adjusted Profitability
Operating Profit 39.6$ 13.0$ 11.7$ 7.7$ 35.0$ 45.8$ 49.1$ 32.5$ 43.6$
Net Income 30.5 10.2 8.6 5.9 26.6 32.7 34.7 23.6 29.1
EPS - Diluted 1.49 0.50 0.42 0.29 1.32 1.60 1.67 1.13 1.40
Other Non-GAAP Items
A-16
Adjusted EBITDA is calculated by adding depreciation, depletion, and amortization and certain special items such as cost reduction initiatives (i.e., asset
impairment charges and severance), legacy legal and environmental costs, CEO transition costs, merger and acquisition costs, and certain income tax items to our
operating profit. Internally, management reviews the results of operations without the impact of these costs in order to assess the profitability from ongoing
operations.
Debt-to-capitalization is our total debt divided by net debt plus shareholders’ equity. Net debt (cash) is a non-GAAP measure calculated by subtracting cash &
cash equivalents from our total outstanding debt. We are providing this information because we believe it is more indicative of our overall financial position. It is
also a measure our management uses to assess financing and other decisions.
$ in millions
Q3 2017 TTM Q3 2017 Q2 2017 2014 2013
Operating Profit 28.3$ 11.6$ 9.7$ 3.4$ 27.1$ 45.3$ 57.6$ 27.6$
Special Items 11.3 1.4 2.0 4.3 7.9 0.5 (8.5) 4.9
Adjusted Operating Profit 39.6$ 13.0$ 11.7$ 7.7$ 35.0$ 45.8$ 49.1$ 32.5$
Depreciation, depletion, and amortization 44.7 12.8 10.6 10.1 45.6 37.8 42.7 41.6
Adjusted EBITDA 84.3$ 25.8$ 22.3$ 17.8$ 80.6$ 83.6$ 91.8$ 74.1$
Total Debt 4.0$ 4.0$ 26.6$ 32.6$ 4.6$ 13.6$ 24.3$ 64.8$
Less: Cash & Cash Equivalents 22.5 22.5 18.5 16.3 31.5 24.2 13.1 22.8
Net Debt (Cash) (18.5)$ (18.5)$ 8.1$ 16.3$ (26.8)$ (10.6)$ 11.2$ 42.0$
Total Shareholders' Equity 512.0$ 512.0$ 503.0$ 497.1$ 494.1$ 483.0$ 459.0$ 464.4$
Debt-to-Capitalization 1% 1% 5% 6% 1% 3% 5% 13%
2016 2015Q1 2017
($ in millions, except per share data)
Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q4 2015 Q1 Q2 Q3 Q4 2016 Q1 Q2 Q3
Sales
PAC 97.2$ 109.6$ 114.2$ 112.3$ 433.3$ 103.3$ 107.7$ 93.6$ 90.3$ 394.8$ 90.6$ 97.7$ 103.7$ 95.5$ 387.5$ 92.6$ 108.5$ 109.4$
AM 129.3 145.0 137.6 135.3 547.3 149.9 131.4 113.6 87.4 482.3 108.1 113.6 107.2 108.3 437.2 114.7 157.1 157.8
PC 33.9 34.1 39.9 39.7 147.7 36.6 38.3 37.2 36.4 148.4 36.8 38.5 38.7 30.5 144.5 33.4 30.2 27.1
Other (1.5) (0.7) (0.1) 1.1 (1.4) 0.2 (0.5) - - (0.2) - - - - - - - -
Consolidated MTRN 258.9 288.0 291.6 288.4 1,126.9 290.0 276.9 244.4 214.0 1,025.3 235.5 249.8 249.6 234.3 969.2 240.7 295.8 294.3
VA
PAC 80.0 89.9 94.7 93.9 358.5 85.6 91.5 79.6 78.4 335.1 78.2 83.4 87.2 83.2 332.0 79.2 92.7 90.6
AM 41.7 45.0 46.1 48.3 181.0 51.7 46.7 44.5 39.8 182.8 42.1 47.0 46.0 41.2 176.3 47.3 62.0 60.4
PC 23.9 24.9 27.0 26.5 102.4 24.6 25.2 25.7 26.4 101.8 24.6 25.1 25.8 22.2 97.7 23.3 22.6 21.9
Other (0.7) (0.2) (2.2) (1.7) (4.8) 0.7 (1.0) (1.0) (1.2) (2.5) (1.0) (1.6) (2.0) (1.5) (6.1) (0.8) (1.2) (1.5)
Consolidated MTRN 144.9 159.6 165.6 167.0 637.1 162.6 162.4 148.8 143.4 617.2 143.9 153.9 157.0 145.1 599.9 149.0 176.1 171.4
Gross Margin
PAC 22.7 24.6 26.8 26.8 100.9 23.1 25.5 18.0 17.9 84.6 17.7 16.3 20.6 19.0 73.6 16.3 22.8 23.6
AM 16.1 17.6 19.3 20.6 73.6 20.7 18.8 17.1 15.5 72.1 15.8 19.1 20.0 16.7 71.6 18.4 23.3 24.4
PC 7.1 7.7 9.0 9.6 33.3 8.3 7.5 9.2 9.1 34.1 10.0 9.5 10.7 7.6 37.8 8.3 8.9 7.4
Other (0.4) (0.1) (0.3) (1.1) (1.9) 0.3 (0.5) (0.3) 0.6 - (0.1) 0.4 (0.5) 0.8 0.5 - (0.4) (0.2)
Consolidated MTRN 45.5 49.8 54.8 55.8 205.9 52.4 51.3 44.0 43.1 190.8 43.4 45.3 50.8 44.1 183.5 43.0 54.6 55.2
Gross Margin as a % of VA
PAC 28% 27% 28% 29% 28% 27% 28% 23% 23% 25% 23% 20% 24% 23% 22% 21% 25% 26%
AM 39% 39% 42% 43% 41% 40% 40% 38% 39% 39% 38% 41% 43% 41% 41% 39% 38% 40%
PC 30% 31% 33% 36% 33% 34% 30% 36% 34% 33% 41% 38% 41% 34% 39% 36% 39% 34%
Other N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M
Consolidated MTRN 31% 31% 33% 33% 32% 32% 32% 30% 30% 31% 30% 29% 32% 30% 31% 29% 31% 32%
Operating Profit
PAC 6.2 6.3 10.8 9.9 33.3 6.8 9.3 4.5 2.9 23.6 1.5 0.2 4.4 0.5 6.6 0.2 5.5 6.8
AM 5.1 12.5 7.8 7.2 32.7 8.9 7.4 7.0 4.5 27.8 5.2 7.3 8.3 5.5 26.3 6.4 8.7 9.8
PC 4.1 0.5 2.1 2.5 9.3 1.7 0.6 2.3 3.0 7.5 4.1 2.3 3.4 1.8 11.6 2.2 2.3 1.6
Other (3.9) (5.4) (3.0) (5.2) (17.7) (4.2) (4.2) (2.9) (2.3) (13.6) (3.3) (4.0) (5.9) (4.2) (17.4) (5.4) (6.8) (6.6)
Consolidated MTRN 11.6 13.9 17.7 14.4 57.6 13.2 13.1 10.9 8.1 45.3 7.5 5.8 10.2 3.6 27.1 3.4 9.7 11.6
Special Items - OP
PAC - - - - - - - - - - - - - 2.6 2.6 0.5 0.7 0.2
AM 0.4 (5.4) - - (5.1) - - - - - - - - - - 1.0 0.3 -
PC (2.6) 0.1 - - (2.5) - - 1.3 0.1 1.4 - - - - - - - 0.4
Other 0.2 1.5 (2.7) (0.9) (2.1) - 0.5 0.7 (0.9) - 2.3 2.0 1.0 5.3 2.8 1.0 0.8
Consolidated MTRN (2.0) (3.8) (2.7) - (8.5) (2.1) - 1.8 0.8 0.5 - 2.3 2.0 3.6 7.9 4.3 2.0 1.4
Operating Profit ex Spec Items
PAC 6.2 6.3 10.8 9.9 33.3 6.8 9.3 4.5 2.9 23.6 1.5 0.2 4.4 3.1 9.2 0.7 6.2 7.0
AM 5.5 7.1 7.8 7.2 27.6 8.9 7.4 7.0 4.5 27.8 5.2 7.3 8.3 5.5 26.3 7.4 9.0 9.8
PC 1.6 0.6 2.1 2.5 6.8 1.7 0.6 3.6 3.1 8.9 4.1 2.3 3.4 1.8 11.6 2.2 2.3 2.0
Other (3.7) (3.9) (5.7) (5.2) (18.6) (6.3) (4.2) (2.4) (1.6) (14.5) (3.3) (1.7) (3.9) (3.2) (12.1) (2.6) (5.8) (5.8)
Consolidated MTRN 9.7 10.1 15.0 14.4 49.1 11.1 13.1 12.7 8.9 45.8 7.5 8.1 12.2 7.2 35.0 7.7 11.7 13.0
OP ex Spec Items as a % of VA
PAC 7.8% 7.1% 11.4% 10.5% 9.3% 7.9% 10.2% 5.7% 3.7% 7.0% 1.9% 0.2% 5.0% 3.7% 2.8% 0.9% 6.7% 7.7%
AM 13.2% 15.8% 16.9% 14.9% 15.2% 17.2% 15.8% 15.7% 11.3% 15.2% 12.4% 15.5% 18.0% 13.3% 14.9% 15.6% 14.5% 16.2%
PC 6.5% 2.4% 7.8% 9.4% 6.6% 6.9% 2.4% 14.0% 11.7% 8.7% 16.7% 9.2% 13.2% 8.1% 11.9% 9.4% 10.2% 9.1%
Other N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M N/M
Consolidated MTRN 6.7% 6.4% 9.1% 8.6% 7.7% 6.8% 8.1% 8.5% 6.2% 7.4% 5.2% 5.3% 7.8% 5.0% 5.8% 5.2% 6.6% 7.6%
2015 20162014 2017
1 Internally, management reviews the results of operations without the impact of special one-time costs in order to assess the profitability from ongoing operations. Refer to the note on page A-15 for a full reconciliation
of adjusted earnings.
Historical Financials
A-17
1
1
1
►Full-year Guidance
► Adjusted EPS of $1.55 - $1.60
► Operating cash $55M - $60M
► Capex ~ $25M
► Mine development capital expenditures <$2M
► Depreciation and amortization expense of ~$43M
► Effective tax rate excluding special items 18% - 22%
2017 Forecasted Financial Guidance
A-18
