MATERION CORPORATION Materion Corporation (MTRN)
May 30, 2024
© 2024 Materion Corporation
Snapshot
Overview
TTM Value-Added (VA) Sales1
Headquarters
TTM Revenue
TTM Value-Added Sales1
TTM Adj. EBITDA Margin1
Countries of Operation
Manufacturing Facilities
Global Employees
Cleveland, OH
$1.6B
$1.1B
19.3%
13
27
~3,400
9%
29%BY
SEGMENT
62%
1%
32%
BY 46%
GEOGRAPHY
21%
- 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
© 2024 Materion Corporation 1 Non-GAAP. TTM period represents results from 4/3/2023 - 3/29/2024.
Accelerating Our Transformation
Where We Are Going
(2024+)
Where We Were
(Before 2017)
- Origins as a mining and metals- focused producer in 1931
- Strong heritage of beryllium expertise
- Strategic acquisitions broadened portfolio, creating the foundation for Electronic Materials and Precision Optics segments
Where We Have Been
(2017 - 2023)
- Becoming a global leader in advanced materials solutions through organic initiatives and strategic acquisitions
- Implementing operating model focused on driving profitable growth
- Increasing investment in R&D fueling innovation; significantly expanding growth pipeline through customer collaborations
- Transforming financial profile, doubling margins and returns
- Accelerating global leadership in advanced materials solutions for evolving growth megatrends
- Delivering step-change organic and inorganic growth initiatives, driving transformative profitable growth
- Investing to deliver next-gen solutions to support customer roadmaps
- Driving above-market top line growth and 20% EBITDA margins, with strong ROIC
3 | © 2024 Materion Corporation |
Integrated Operating Segments
Performance Materials | Electronic Materials |
Precision Optics
A leading global supplier of high- performance specialty metals, alloys and other advanced materials that enable next-gen technologies
- Global leader in Beryllium-based technologies leveraging fully integrated supply chain
- A market leader in high-performance precision bonded and cladded materials
- Major end markets served include Industrial, Aerospace & Defense, Automotive, Energy and Telecom & Data Center
- world-leadingsupplier of thin-film deposition materials, microelectronic components, and inorganic chemicals
- Leading supplier of tantalum, precious metal and metal alloy targets serving the semiconductor market
- Global leader of Physical Vapor and Atomic Layer Deposition solutions
- Major end markets served include Semiconductor, Industrial and Energy
Globally recognized leader in customized optical thin-film coatings and components for the photonics industry
- Leading manufacturer of precision thin-film coatings, optical filters and projection displays
- Optical coating solutions across the wavelength spectrum
- Major end markets served include Aerospace & Defense, Automotive and Consumer Electronics
4 | © 2024 Materion Corporation |
End Markets Served through Materion Operating Model
End Market
TTM
VA Sales1
Trends / How We Win
Semiconductor | 23% | • | Partnering with leading global semiconductor manufacturers | ||||||||||||
• A top producer of deposition materials for microelectronic applications | |||||||||||||||
Industrial | 16% | • | Broadening customer reach with unique and diverse solutions | ||||||||||||
Aerospace & | 16% | • Significant growth as next-gen technology gains traction and Space market expands | |||||||||||||
Defense | • Content per plane continues to grow as products are designed in to more applications | ||||||||||||||
Automotive | 6% | • | Positioned on several automotive systems for both EV and ICE | ||||||||||||
• Electronic content per car growing exponentially | |||||||||||||||
Energy | 6% | • | Balanced product portfolio serving customers aligned to both new and existing energy sources | ||||||||||||
Telecom & | 5% | • Strong connector demand driven by increasing 5G deployments paired with | |||||||||||||
Data Center | our worldwide footprint / market penetration | ||||||||||||||
Consumer | 5% | • Advanced capabilities drive complex manufacturing and need for specialized materials | |||||||||||||
Electronics | • Proliferation of electronic devices driving need for more materials | ||||||||||||||
1 Non-GAAP. TTM period represents results from 4/3/2023 - 3/29/2024.
Operating Segments Aligned with Global Growth Megatrends: Connectivity, Advanced Mobility, Clean Energy
Executing Our Strategy to Drive Growth and Value Creation
VA Sales1 ($M)
20.8% CAGR | $1,114.4 | $1,127.1 | |
$829.6 | |||
$640.1 | |||
2020 | 2021 | 2022 | 2023 |
Record value-added sales of $1.13 billion
- Significant contribution from outgrowth initiatives, including the precision clad strip opportunity, and the HCS acquisition
Adj. EBITDA1 ($M)
30.5% CAGR | $217.7 | ||
$196.0 | |||
$143.6 | 19.3% | ||
17.6% | |||
$97.8 | 17.3% | ||
15.3% | |||
2020 | 2021 | 2022 | 2023 |
Record adjusted EBITDA of $217.7 million, margin of 19.3%
- Approaching 20% EBITDA margin target
- 400 bp margin expansion from 2020
- Operational excellence, favorable price and improved mix from new business continues to drive meaningful margin expansion
Adj. EPS1
38.3% CAGR | $5.64 | ||
$5.27 | |||
$4.06 | |||
$2.13 | |||
2020 | 2021 | 2022 | 2023 |
Record adjusted EPS of $5.64
- Significant value creation for stakeholders, with ~109% Total Shareholder Return2
6 | © 2024 Materion Corporation | Non-GAAP |
1 | ||
2 | Reflects the change in closing price from 12/30/2020 - 12/31/2023 and assumes quarterly reinvestment of dividends. |
Full Year 2024 Guidance
Adj. EPS Guidance
2024 Guidance
- Updating full year adjusted EPS to $5.60-$6.20, an increase of 5% from 2023 at the midpoint
$5.64
$5.60 - $6.20
~5%
20232024E
2024 Modeling Assumptions
Capital Expenditures | $90M | Interest Expense | $32M |
Precision Clad Strip Plant - Phase Two | $20M | Effective Tax Rate | 16-17% |
HCS-Electronic Materials | $15M | Mine Development - New Pit Opening | $13M |
Extrusion Press | $5M | Depreciation and Amortization | $70M |
Normal Segment Capex | $50M | Acquisition Amortization | $12M |
7 | © 2024 Materion Corporation |
Creating Shareholder Value
Becoming a global leader in high-performing advanced materials serving diverse and attractive markets well aligned with megatrends, while building on our beryllium heritage
Experienced leadership team establishing operating model to drive execution and greater value for
all stakeholders
Creating robust organic pipeline with investments in R&D as we focus on developing innovative solutions for our customers
Leveraging strong cash flow and deploying a disciplined, strategic approach toward profitable organic and inorganic
growth opportunities
Proven Financial Results
VA SALES1 ($M) | ADJ. EPS1 |
$1,127
$5.64
+9.7% CAGR | +18.0% CAGR |
$711
$2.47
2018 | 2023 | 2018 | 2023 |
8 © 2024 Materion Corporation | 1 Non-GAAP. |
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Disclaimer
Materion Corporation published this content on 30 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 May 2024 13:55:06 UTC.
