EX-99.2 3 ex99_2.htm EARNINGS PRESENTATION
EXHIBIT 99.2
SECOND QUARTER 2024EARNINGS CONFERENCE CALL July 26, 2024

Forward Looking Statements and Non-GAAP Measures This presentation may contain "forward‐looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations and forecasts of future events such as new products, revenues and financial performance, and are not limited to describing historical or current facts. They can be identified by the use of words such as “believes,” “expects,” “plans,” “intends,” “anticipates,” and other words and phrases of similar meaning. Forward-looking statements are necessarily based on assumptions, estimates and limited information available at the time they are made. A broad variety of risks and uncertainties, both known and unknown, as well as the inaccuracy of assumptions and estimates, can affect the realization of the expectations or forecasts in these statements. Actual future results may vary materially. Significant factors that could affect the expectations and forecasts include worldwide general economic, business, and industry conditions; the cyclicality of our customers’ businesses and their changing regional demands; our ability to compete in very competitive industries; consolidation in customer industries, principally paper, foundry and steel; our ability to renew or extend long term sales contracts for our satellite operations; our ability to generate cash to service our debt; our ability to comply with the covenants in the agreements governing our debt; our ability to effectively achieve and implement our growth initiatives or consummate the transactions described in the statements; our ability to successfully develop new products; our ability to defend our intellectual property; the increased risks of doing business abroad; the availability of raw materials and access to ore reserves at our mining operations, or increases in costs of raw materials, energy, or shipping; compliance with or changes to regulation in the areas of environmental, health and safety, and tax; risks and uncertainties related to the voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code filed by our subsidiaries BMI OldCo Inc. (f/k/a Barretts Minerals Inc.) and Barretts Ventures Texas LLC; claims for legal, environmental and tax matters or product stewardship issues; operating risks and capacity limitations affecting our production facilities; seasonality of some of our businesses; cybersecurity and other threats relating to our information technology systems; and other risk factors and cautionary statements in our 2023 Annual Report on Form 10‐K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward‐looking statement, whether as a result of new information, future events, or otherwise. Also, this presentation will include certain financial measures that were not prepared in accordance with generally accepted accounting principles. In particular operating income, operating margin, adjusted EBITDA, adjusted EBITDA margin, and EPS referenced in this presentation exclude special items, such as acquisition-related costs, restructuring, gains/(losses) on asset sales, litigation and impairment costs, and other significant non-recurring or unusual items and related tax effects for all periods presented. The company also provides figures for free cash flow, underlying sales and sales growth excluding sales from BMI OldCo Inc. for the three and six months ended June 30, 2024. These are non-GAAP measures that the Company believes provide meaningful supplemental information regarding its performance as inclusion of such special items are not indicative of the ongoing operating results and thereby affect the comparability of results between periods. The company believes inclusion of these non-GAAP measures also provides consistency in its financial reporting and facilitates investors' understanding of historic operating trends. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in our Current Report on Form 8-K dated July 25, 2024, and in our other reports filed with the Securities and Exchange Commission, available on our website at www.mineralstech.com in the "Investor Information -- SEC Filings" section. It is not possible, without unreasonable effort, for the company to identify and estimate the amount or significance of future non-recurring or unusual items. Accordingly, the company does not provide reconciliations of forward-looking non-GAAP financial measures to the most comparable GAAP financial measures on a forward-looking basis.

Douglas T. Dietrich Chairman and Chief Executive Officer

Second Quarter 2024 Highlights $541M Sales +1%* 15.7% Operating Margin +290bps Operating income, operating margin and earnings per share exclude special items All changes are versus prior year *Underlying sales growth $85M Operating Income +20% $1.65 Earnings Per Share +26% $50M Cash Flow From Operations Highlights Record quarterly operating income and EPS Continued momentum with margin expansion – ahead of interim targets Volume growth across majority of markets; continued softness in commercial construction Disciplined pricing and cost management Strong cash flow performance; YTD free cash flow up more than 2X +10%

Strong Portfolio Built for Higher Performance $1.1B Sales $162M Operating Income $3.15 Earnings Per Share $106M Cash from Operations Strong portfolio of leading businesses Transforming our businesses for higher performance Aligned organization to execute long-term strategy Tracking well against financial targets Operating income, operating margin and earnings per share exclude special items All changes are versus prior year H1’24 Environmental & Infrastructure Built a leading global vertically integrated pet litter business Investing in higher growth consumer-oriented businesses Leading new recycling technologies for paper and packaging industry Investing in solutions for growing packaging market Positioning in high-growth geographies Transforming with high-tech, high-value applications Investing in technologies to address global environmental challenges Household & Personal Care Specialty Additives High- Temperature Technologies Environmental & Infrastructure Consumer & Specialties Engineered Solutions

Current Market Dynamics Strong demand in cat litter and other consumer-oriented markets Stable overall paper and packaging and residential construction markets Stable markets; slow-down in agriculture equipment market Commercial construction remains weak Household & Personal Care Specialty Additives High- Temperature Technologies Environmental & Infrastructure Consumer & Specialties Engineered Solutions

Erik C. Aldag Senior Vice President, Finance and Treasury and Chief Financial Officer

12.8% +0.8% +0.4% +1.7% 15.7% Second Quarter Financial Summary Q2 ’24 Q2 ’23 YoY Sales ($M) 541 538* +1%* Gross Margin (%) 26.6 23.2 +340bps Operating Income ($M) 85 71 +20% Operating Margin (%) 15.7 12.8 +290bps Adj. EBITDA ($M) 108 93 +16% Adj. EBITDA Margin (%) 19.9 16.8 +310bps EPS ($) 1.65 1.31 +26% Cash from Operations ($M) 50 46 +10% Q2 ’23 Vol / Mix Price Cost Q2 ’24 71 85 +20% Sales vs Prior Year ($M) *Underlying sales and growth Operating income, operating margin, adjusted EBITDA, adjusted EBITDA margin, and earnings per share exclude special items All changes are versus prior year Operating Income vs Prior Year ($M) (14) BMI Oldco Q2 ’23 Underlying H & PC Spec Adds High-Temp Tech (6) Q2 ’24 Env & Infrastructure 552 538 541 Q2 ’23 +1% Operating Margin % Consumer & Specialties Engineered Solutions

CONSUMER & SPECIALTIES SEGMENTSecond Quarter 2024 Performance $284M Sales 15.4% Operating Margin $44M Operating Income Operating income, operating margin and earnings per share exclude special items All changes are versus prior year Q2 ’23* Q2 ’24 $277M $284M +3%* Q2 ’23 Q2 ’24 $34M $44M +29% Q2 ’23 Q2 ’24 11.7% 15.4% +370bps Second Quarter Highlights Household & Personal Care sales up 1% Growth in high-margin consumer products continues Pet care product change-over timing Specialty Additives sales up 4%, excluding BMI Solid growth in global Paper & Packaging volume Residential construction demand improved; stable pull from automotive Operating margin up 370 bps YoY Improved volume and mix Stabilizing costs Continued productivity improvement *Underlying sales and growth Third Quarter Outlook Similar market conditions across the segment YoY sales growth in the low-to-mid-single digits Operating margin ~15% of sales

ENGINEERED SOLUTIONS SEGMENTSecond Quarter 2024 Performance $257M Sales 17.4% Operating Margin $45M Operating Income Operating income, operating margin and earnings per share exclude special items All changes are versus prior year Q2 ’23 Q2 ’24 $261M $257M -2% Q2 ’23 Q2 ’24 $38M $45M +16% Q2 ’23 Q2 ’24 14.7% 17.4% +270bps Second Quarter Highlights High-Temperature Technologies sales up 1% Market demand in N. America remained steady; late quarter softness in agriculture equipment Volumes continued to grow in Asia foundry Environmental & Infrastructure sales down 8% Seasonally higher sales, up 20% sequentially Commercial construction remained soft Operating margin up 270 bps YoY Favorable volume & mix in High-Temperature Technologies Disciplined pricing and cost control Third Quarter Outlook Similar market conditions across the segment Sales comparable to prior year Operating margin ~16% of sales

Balance Sheet and Cash Flow Cash Flow and Capital Deployment YTD ’23 YTD ’24 $79M $33M $106M $69M Liquidity & Debt Q2 ’23 Net Debt Q2 ’24 Net Debt $787M $675M ($112M) Cash From Operations Free Cash Flow Q2 ’24 Cash, Cash Equivalents, and Short-Term Investments $316M Available Revolver $222M Total Liquidity $538M EBITDA excludes special items Q2’24 YTD’24 Capital Expenditures $20M $37M Debt Paydown $10M $24M Share Repurchases & Dividends $23M $41M 1.7X EBITDA Net Leverage Ratio

Sales on trend with the first half of 2024 Consumer-oriented markets continue to grow Softness in some industrial markets Margins remain strong Continued strong cash flow generation On track with long-term strategic objectives Third Quarter Outlook Summary $535M-$545M Sales $77M-$80M Operating Income $1.50-$1.55 EPS

Douglas T. Dietrich Chairman and Chief Executive Officer

16th Annual Sustainability Report Continue to Advance Sustainability Initiatives Comprehensive view into who we are and our culture Demonstrates our progress meeting environmental targets: Achieved 10 out of 12 targets ahead of 2025 target year Explains our focus on further enhancing disclosures:​ Initiated Science Based Targets initiative (SBTi) journey​ Reported our initial Scope 3 Value Chain Emissions estimates​ Highlights how sustainability is embedded in our daily performance as well as future growth Visit mineralstech.com to download a copy

Appendix

ReconciliationNet Income and Diluted EPS Excluding Special Items The information set forth in the Analyst Presentation presents financial measures of the Company that exclude certain special items, and are therefore not in accordance with GAAP. The following is a presentation of the Company’s non-GAAP net income, operating income and EBITDA, excluding special items, and free cash flow for the quarterly and six month periods ended June 30, 2024 and July 2, 2023 and a reconciliation to GAAP net income, operating income and EBITDA, and cash flow from operations, respectively, for such periods. The Company’s management believes these non-GAAP measures provide meaningful supplemental information regarding its performance as inclusion of such special items are not indicative of the ongoing operating results and thereby affect the comparability of results between periods. The Company feels inclusion of these non-GAAP measures also provides consistency in its financial reporting and facilitates investors’ understanding of historic operating trends. (millions of dollars, except per share data) Quarter Ended Six Months Ended Jun. 30, Jul. 2, Jun. 30, Jun. 30, Jul. 2, 2024 2023 2024 2024 2023 Net income attributable to MTI $ 19.7 $ 26.6 $ 66.4 66.4 $ 63.6 Special items: Provision for credit losses 30.0 0.0 30.0 30.0 0.0 Restructuring and other items, net 0.0 6.6 0.0 0.0 6.6 Acquisition related expenses 0.0 0.2 0.0 0.0 0.3 Litigation expenses 4.2 13.9 6.3 6.3 13.9 Related tax effects on special items (0.3) (4.6) (0.8) (0.8) (4.6) Net income attributable to MTI, excluding special items $ 53.6 $ 42.7 $ 101.9 101.9 $ 79.8 Diluted earnings per share, excluding special items $ 1.65 $ 1.31 $ 3.15 3.15 $ 2.46

ReconciliationSegment Operating Income Excluding Special Items (millions of dollars, except per share data) Quarter Ended Six Months Ended Jun. 30, Jul. 2, Jun. 30, Jul. 2, 2024 2023 2024 2023 Segment Operating Income Data Consumer & Specialties Segment $ 43.9 $ 19.4 $ 85.9 $ 51.6 Engineered Solutions Segment 44.7 35.2 83.2 70.5 Unallocated Corporate Expenses (38.0) (4.7) (43.3) (9.2) Consolidated $ 50.6 $ 49.9 $ 125.8 $ 112.9 Special Items Consumer & Specialties Segment $ 0.0 $ 14.5 $ 0.0 $ 14.5 Engineered Solutions Segment 0.0 3.2 0.0 3.2 Unallocated Corporate Expenses 34.2 3.0 36.3 3.1 Consolidated $ 34.2 $ 20.7 $ 36.3 $ 20.8 Segment Operating Income Data, Excluding Special Items Consumer & Specialties Segment $ 43.9 $ 33.9 $ 85.9 $ 66.1 Engineered Solutions Segment 44.7 38.4 83.2 73.7 Unallocated Corporate Expenses (3.8) (1.7) (7.0) (6.1) Consolidated $ 84.8 $ 70.6 $ 162.1 $ 133.7 % of Sales 15.7% 12.8% 15.1% 12.2%

ReconciliationAdjusted EBITDA Excluding Special Items (millions of dollars, except per share data) Quarter Ended Six Months Ended Jun. 30, Jul. 2, Jun. 30, Jul. 2, 2024 2023 2024 2023 Net income attributable to MTI $ 19.7 $ 26.6 $ 66.4 $ 63.6 Add back: Depreciation, depletion and amortization 24.0 23.5 47.5 47.2 Interest expense, net 14.9 14.5 29.8 28.7 Equity in earnings of affiliates, net of tax (1.9) (1.1) (3.3) (2.0) Net income attributable to non-controlling interests 1.2 1.0 2.1 2.1 Provision for taxes on income 15.6 7.5 29.5 18.0 EBITDA 73.5 72.0 172.0 157.6 Add special items: Provision for credit losses 30.0 0 30.0 0 Restructuring and other items, net 0 6.6 0.0 6.6 Acquisition-related expenses 0 0.2 0.0 0.3 Litigation expenses 4.2 13.9 6.3 13.9 Adjusted EBITDA $ 107.7 $ 92.7 $ 208.3 $ 178.4 % of sales 19.9% 16.8% 19.4% 16.3%

Reconciliation The Company Sales Growth Excluding BMI Oldco (f/k/a Barretts Minerals Inc.) To supplement the Company's consolidated financial statements presented in accordance with GAAP, the following is a presentation of the Company's year over year sales growth, excluding the sales of BMI Oldco for the three and six months ended July 2, 2023, constituting a reconciliation to GAAP sales growth set forth below. On October 2, 2023, BMI Oldco filed for relief under Chapter 11 of the U.S. Bankruptcy Code and as such the results of BMI Oldco are not included in the Company's consolidated results for the first half of 2024. BMI Oldco sales for the three and six month periods ending July 2, 2023 were $13.7 million and $26.8 million, respectively. The Company's management feels this non-GAAP measure provides meaningful supplemental information regarding its performance and facilitates investors' understanding of sales trends for the first half of 2024. Quarter Ended Jun. 30, 2024 Six Months Ended Jun. 30, 2024 Sales Impact of Impact of Sales Sales Impact of Year over Year Sales Growth Growth BMI Oldco BMI Oldco Underlying Growth Growth BMI Oldco Underlying Underlying As Reported Deconsolidation Deconsolidation Sales Growth As Reported As Reported Deconsolidation Sales Growth Sales Growth Specialty Additives (4)% 8% 8% 4% (5)% (5)% 8% 3% 3% Consumer & Specialties (2)% 5% 5% 3% (1)% (1)% 5% 4% 4% MTI Consolidated (2)% 3% 3% 1% (2)% (2)% 2% 0% 0%

Reconciliation Free Cash Flow (millions of dollars, except per share data) Quarter Ended Six Months Ended Jun. 30, Jul. 2, Jun. 30, Jul. 2, 2024 2023 2024 2023 Cash flow from operations $ 50.1 $ 45.5 $ 106.0 $ 79.2 Capital expenditures 20.2 21.4 36.7 45.9 Free cash flow $ 29.9 $ 24.1 $ 69.3 $ 33.3