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INVESTOR PRESENTATION
May 2018
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 Company Profile
3
Company Overview Value-added (VA) Sales
• Materion is an integrated producer of high-
performance advanced engineered materials
- Maintains a leading market position for niche
products across multiple end markets
- Strong positions in growing markets with high
barriers to entry
- Only global vertically integrated producer of
beryllium (Be) and Be alloys
• New CEO hired in March 2017 with focus on
building performance excellence in five main
areas: operational, commercial, innovation,
digital, and inorganic growth
• Q1 2018 financial highlights
- Year-over-year (YOY) VA sales and adjusted
OP growth for five consecutive quarters
- Seven consecutive quarters of YOY VA sales
growth
- Posted adjusted earnings per share of $0.51,
exceeding guidance and 76% higher vs. 2017
$617 $600
$678
0%
2%
4%
6%
8%
10%
12%
$200
$300
$400
$500
$600
$700
$800
2015 2016 2017
Value-added Sales1 (millions)
1 Non-GAAP, excludes pass-through metal costs and special items. Refer to the Appendix for additional detail.
30%
15%
17%
8%
9%
5%
7%
9%
Telecom
Infrastructure
Automotive
Electronics
Defense
Industrial
Components
Medical
Other
Consumer
Electronics
Energy
54%
33%
13%
Performance Alloys
& Composites
Precision
Coatings
Advanced
Materials
VA Sales 1 by End Market VA Sales 1 by Segment
Adjusted Operating Profit Margin1
Key Facts
4
Share Statistics as of 03/29/2018 Q1 2018 TTM Financial Information
Research coverage: KeyBanc, Jefferies,
Sidoti, and Stonegate
Adjusted EPS1
Adjusted EBITDA1
Debt-to-capitalization1
Operating cash flow
Revenues
Value-added sales1
$1.94
$95M
<1%
$76M
$1,202M
$710M
~1%
Trading Symbol MTRN
Stock Price $51.05
Shares O/S 20.2M
52 wk Range $31.90 - $54.25
3 Mo Avg Vol 127,063
Market Cap $1,029M
Enterprise Value $1,012M
Dividend yield
20.00
30.00
40.00
50.00
60.00
Materion Share Performance
TTM 3.29.18
1 Non-GAAP, excludes pass-through metal costs and special items. Refer to the Appendix for additional detail.
Performance Alloys and Composites
(PAC)
5
48%
12%
11%
17%
8%
4%
Clad Strip
ToughMet
CuBe
Be - Alloys
Be – High Purity
53%
26%
20%
1%
Europe
United States
Rest of World
Asia
21%
21%
20%
14%
9%
7%
6% 2%
Telecom
Infrastructure
Automotive
Electronics
Defense
Industrial
Components
Medical
Other
Consumer
Electronics
Energy
339.9
358.5
335.1 332.0
363.5
0%
2%
4%
6%
8%
10%
12%
14%
$100
$150
$200
$250
$300
$350
$400
2013 2014 2015 2016 2017
Product Mix2 Geographic Mix2 Value-added Sales by Market2
New product development
• New proprietary non-Be alloys with improved durability &
weight-to-strength ratio
• New heat dissipating clad material
• Improving customer yields with “near net shape” products
New application development
• Clad material serving the renewable energy market
• Precision rolling to thinner strips opening new application
opportunities
• ToughMet® couplings serving the oil and gas production market
resist mechanical wear, thread damage, corrosion, and erosion
Beryllium market
• World’s only fully integrated producer
• Minimum of 75 years of proven mine reserves in Delta, Utah
• Primary Be competitor is consuming stockpiled ore
Growth Drivers Value-added Sales
O
P
1
%
o
f
V
A
Sa
le
s
V
A
S
al
e
s1
($
m
ill
io
n
s)
Hydroxide
2 Reflects 2017 mix by market, geography, and product
1 Non-GAAP, excludes pass-through metal costs and special items. Refer to the Appendix for additional detail.
59%
24%
17%
168.6
181.0 182.8
176.3
228.0
0%
5%
10%
15%
20%
25%
30%
35%
$100
$120
$140
$160
$180
$200
$220
$240
2013 2014 2015 2016 2017
Advanced Materials
54%
19%
17%
10%
Services
Packaging
Targets
Chemicals
Europe
United States
Asia
49%
17%
8%
13%
5%
3% 5%
Telecom
Infrastructure
Defense
Other
Medical
Consumer
Electronics
Industrial
Components
Energy
Product Mix2 Geographic Mix2 Value-added Sales by Market2
Growth Drivers Value-added Sales
O
P
1
%
o
f
V
A
Sa
le
s
V
A
S
al
e
s1
($
m
ill
io
n
s)
Semiconductor
• $400B market with strong growth outlook driven by macro
consumer electronics and IoT trends
• Continue to expand organically in core PVD and packaging
applications
• Expand into new technologies and chemistries
Application development and R&D
• Invest in application development laboratories
• Invest in additional innovation-based R&D capabilities to meet
market demand for quick turn prototypes
Develop functional areas that require attention to support growth
• Improve sales focus on high value customers by improving web-
based solutions for small customers
• Reduce R&D cycle time to match the industry
6
2 Reflects 2017 mix by market, geography, and product
1 Non-GAAP, excludes pass-through metal costs and special items. Refer to the Appendix for additional detail.
104.2 102.4 101.8
97.7
90.7
0%
4%
8%
12%
16%
20%
24%
$60
$70
$80
$90
$100
$110
$120
2013 2014 2015 2016 2017
Precision Coatings
7
36%
45%
19% Blood
Glucose
Test Strips
Projection Display
Components
Optical Filters
& Arrays
69%
15%
15%
1%
Europe
United States
Rest of World
Asia
45%
20%
17%
9%
7% 2%
Automotive
Electronics
Defense
Other
Medical
Consumer
Electronics
Industrial Components
Product Mix2 Geographic Mix2 Value-added Sales by Market2
Growth Drivers Value-added Sales
O
P
1
%
o
f
V
A
Sa
le
s
V
A
S
al
e
s1
($
m
ill
io
n
s)
New product development
• Novel electrode alloys
• Wafer level thermal imaging coatings
• Enhanced phosphor wheels
New market development
• New applications for medical sensing films
• Growing demand for optical filters in consumer electronics and
automotive sensors
Expanded product and service offerings
• Gettering capabilities for wafer level processing
• Laser patterning
• Precision film slitting & sheeting
• Expand array product line
2 Reflects 2017 mix by market, geography, and product
1 Non-GAAP, excludes pass-through metal costs and special items. Refer to the Appendix for additional detail.
PROFITABLE GLOBAL
GROWTH
PERFORMANCE-BASED CULTURE AND RESULTS
COMMERCIAL
EXCELLENCE
INNOVATION
OPERATIONAL
EXCELLENCE
ACQUISITIONS
DIGITAL
EXCELLENCE
Consistently Deliver Profitable Growth
8 Deliver sustained growth of double-digit EPS CAGR
153.9 157.0 145.1 143.9
176.1 171.4
181.2
149.0
181.3
Q2 Q3 Q4 Q1
2016 2017 2018
8.1
12.2
7.2 7.5
11.9
13.5
14.0
8.0
14.0
Q2 Q3 Q4 Q1
2016 2017 2018
VA Sales
Operating Profit 1
1
1 Non-GAAP, excludes pass-through metal costs and special items. Refer to the Appendix for additional detail.
Well-positioned with Leading Global
Product Offering
9
Product External Segment
2017
% of
Value-added
Sales1
Expected Annual
Growth
Next 3-5 Years
Leading supplier of beryllium-containing
products
Performance Alloys
& Composites ~39%
Leading supplier of high-purity precious metal
for physical vapor deposition (PVD) market
Advanced
Materials ~24%
Leading supplier of high-end optical coatings
Precision
Coatings ~9%
Only supplier of unique copper-nickel-tin
materials, ToughMet®
Performance Alloys
& Composites ~9%
Double digit growth Single digit growth
1 Non-GAAP, excludes pass-through metal costs. Refer to the Appendix for additional detail.
Global Megatrends Play to Our Strengths
10
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
Market
2017 % of
Value-added Sales1
Key
Drivers
Consumer
Electronics
30%
• Smart device growth
• Sensing devices
• Internet of Things (IoT)
Industrial
Components
15%
• Heavy equipment builds
• Plastic tooling
• Fire protection (R and C construction)
Medical 9%
• 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
Energy 7%
• Deep sea drilling and completion
• Directional drilling
• Solar, batteries, and smart grid devices
Telecom
Infrastructure
5%
• 4G completion/5G rollout
• Undersea repeater housings
Well-diversified Market Penetration
11
Total 83%
1 Non-GAAP, excludes pass-through metal costs. Refer to the Appendix for additional detail.
9.7%
11.2%
11.6%
14.1%
16.0%
17.3%
2013 2014 2015 2016 2017 Q1
2018
TTM
Innovation Leading to Organic Growth
12
New Product Value-added Sales1 as % of Total Noteworthy New Products Offerings
Phosphor Wheel
• Provides high brightness, longer life
• Offers low noise characteristics,
individual precision balancing, and
stable colors
eStainless®
• Thermally conductive replacement for
conventional stainless steels
• Manages higher heat of today’s
processing technology
ToughMet® Bushings
• Copper-nickel-tin alloy that resists
mechanical wear, thread damage,
corrosion, and erosion
• Minimizes weight & maintenance cost
2 CAGR calculated from 2013 – 2017
Aluminum/Scandium Targets
• New mobile applications in MEMs
devices, including speakers in phone
• Offers superior performance to
alternative materials
1 Non-GAAP, excludes pass-through metal costs. Refer to the Appendix for additional detail.
PAC Recovery Plan/Opportunity
13
$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
$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
m
ill
io
n
s
1
How did we get here?
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
2014 – 2016 Bridge
$33.3
$23.6
$9.2
$22.1
$31.3
$0
$5
$10
$15
$20
$25
$30
$35
2014 2015 2016 2017 Q1 2018 TTM
m
ill
io
n
s
PAC Operating Profit 1
1 Non-GAAP, excludes special items. Refer to the Appendix for additional detail.
2016 2018 (F)
<25%
28%
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2013 2014 2015 2016 2017
Cash Flow from Operations
($ in millions)
Free Cash Flow Capital Expenditures
Cash Flow and Working Capital
Efficiency Focus
14
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
$0.10
$0.20
$0.30
$0.40
$0.50
2012 2013 2014 2015 2016 2017
Dividends per share
$75.9
$60.3
$91.0
$68.2
1 2
$67.8
Disciplined Capital Deployment Going
Forward
15
Return Cash to Shareholders
• Share repurchase - $50M
authorization ($16M remaining)
• Dividends – increased 5% in 2017
Organic Growth
• Invest in facilities and productivity
projects
• Invest in new products
Inorganic Growth
• Complimentary
products/technologies
• Maintain financial discipline
35% Debt &
Shareholder
65%
Growth
► Consistently delivering profitable growth
► Five consecutive quarters of year-over-year VA sales and OP
growth
► PAC profitability improvement plan on track
► Sequential operating profit margin improvement last 4 quarters
► Q1 2018 adjusted operating profit margin highest level since Q2
2015
► Global megatrends drive future growth opportunities
► Smaller, faster, more powerful, increased performance
► Strong cash flow and balance sheet
► Ended 2017 in a net cash position of $38M with average
operating cash flows of ~$75M over the last 3 years
Materion Investment Thesis
16
►Full-year guidance
► Adjusted EPS of $1.95 - $2.10
► Capex ~ $30M - $35M
► Mine development capital expenditures $5M - $10M
► Depreciation and amortization expense of $35M - $40M
► Effective tax rate excluding special items 16% – 18%
2018 Forecasted Financial Guidance
17
Appendix
Consumer Electronics
30%
Industrial Components
15%
Medical
9%
Defense
9%
Automotive Electronics
8%
Energy
7%
Telecom Infrastructure
5%
0
82%
Performance Alloys
and Composites
54%
Advanced Materials
33%
Precision
Coatings
13%
Materion: Making Advanced Materials That
Improve the World
% of Value-added Sales 1 2017
A-2
1 Non-GAAP, excludes pass-through metal costs. Refer to the Appendix for additional detail.
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-3
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-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
Financial
Information
Reconciliation for Value-added Sales
A-7
$ in millions
Value-added sales is a non-GAAP financial 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.
Q1 2018 Q1 2018 TTM 2017 2016 2015 2014 2013
Net Sales
Performance Alloys and Composites 118.3$ 455.2$ 429.5$ 387.5$ 394.8$ 433.3$ 422.9$
Advanced Materials 153.5 629.6 590.8 437.2 482.3 547.3 592.0
Precision Coatings 31.7 117.5 119.2 144.5 148.4 147.7 152.3
Other - - - - (0.2) (1.4) (0.3)
Total 303.5$ 1,202.3$ 1,139.5$ 969.2$ 1,025.3$ 1,126.9$ 1,166.9$
Less: pass-through metal costs
Performance Alloys and Composites 18.0$ 70.6$ 66.0$ 55.5$ 59.7$ 74.8$ 83.0$
Advanced Materials 95.2 390.6 362.8 260.9 299.5 366.3 423.4
Precision Coatings 8.1 26.5 28.5 46.8 46.6 45.3 48.0
Other 0.9 4.6 4.5 6.1 2.3 3.4 3.3
Total 122.2$ 492.3$ 461.8$ 369.3$ 408.1$ 489.8$ 557.8$
Value-added sales
Performance Alloys and Composites 100.3$ 384.6$ 363.5$ 332.0$ 335.1$ 358.5$ 339.9$
Advanced Materials 58.3 239.0 228.0 176.3 182.8 181.0 168.6
Precision Coatings 23.6 91.0 90.7 97.7 101.8 102.4 104.2
Other (0.9) (4.6) (4.5) (6.1) (2.5) (4.8) (3.6)
Total 181.3$ 710.0$ 677.7$ 599.9$ 617.2$ 637.1$ 609.1$
Reconciliation for Adjusted EPS
A-8
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
Q1 2018 Q1 2018 TTM 2017 2016 2015 2014 2013
GAAP As Reported
Operating Profit 13.3$ 49.7$ 40.1$ 27.1$ 45.3$ 57.6$ 27.6$
Net Income 10.6 19.0 11.5 25.7 32.2 42.1 20.2
Weighted average diluted shares outstanding 20.574 20.574 20.415 20.213 20.402 20.852 20.943
EPS - Diluted 0.51 0.92 0.56 1.27 1.58 2.02 0.97
Operating Profit Special Items
Cost reductions -$ -$ 0.7$ 2.6$ 1.9$ (1.6)$ 4.9$
Legacy legal & environmental costs (benefits) 0.7 1.0 0.5 1.4 (1.4) (6.9) -
CEO transition - 2.4 4.1 - - - -
Acquisition costs - 0.4 2.1 3.9 - - -
Total operating profit special items 0.7$ 3.8$ 7.4$ 7.9$ 0.5$ (8.5)$ 4.9$
Operating Profit Special Items - net of tax 0.6$ 2.5$ 4.8$ 5.1$ 0.3$ (5.6)$ 3.4$
Tax Special Item (0.6)$ 18.3$ 18.9$ (4.2)$ 0.2$ (1.8)$ -$
Non-GAAP Measures - Adjusted Profitability
Operating Profit 14.0$ 53.5$ 47.5$ 35.0$ 45.8$ 49.1$ 32.5$
Net Income 10.6 39.8 35.2 26.6 32.7 34.7 23.6
EPS - Diluted 0.51 1.94 1.72 1.32 1.60 1.67 1.13
Other Non-GAAP Items
A-9
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 financial 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
Q1 2018 TTM 2014 2013
Operating Profit 49.7$ 40.1$ 27.1$ 45.3$ 57.6$ 27.6$
Special Items 3.8 7.4 7.9 0.5 (8.5) 4.9
Adjusted Operating Profit 53.5$ 47.5$ 35.0$ 45.8$ 49.1$ 32.5$
Depreciation, depletion, and amortization 41.9 42.8 45.6 37.8 42.7 41.6
Adjusted EBITDA 95.4$ 90.3$ 80.6$ 83.6$ 91.8$ 74.1$
Total Debt 3.4$ 3.8$ 4.6$ 13.6$ 24.3$ 64.8$
Less: Cash & Cash Equivalents 20.2 41.8 31.5 24.2 13.1 22.8
Net Debt (Cash) (16.8)$ (38.0)$ (26.9)$ (10.6)$ 11.2$ 42.0$
Total Shareholders' Equity 504.3$ 495.0$ 494.1$ 483.0$ 459.0$ 464.4$
Debt-to-Capitalization 1% 1% 1% 3% 5% 13%
2016 20152017
($ in millions, except per share data) 2018
Q1 Q2 Q3 Q4 2015 Q1 Q2 Q3 Q4 2016 Q1 Q2 Q3 Q4 2017 Q1
Sales
PAC 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$ 119.0$ 429.5$ 118.3$
AM 149.9 131.4 113.6 87.4 482.3 108.1 113.6 107.2 108.3 437.2 114.7 157.1 157.8 161.2 590.8 153.5
PC 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 28.5 119.2 31.7
Other 0.2 (0.5) - - (0.2) - - - - - - - - - - -
Consolidated MTRN 290.0 276.9 244.4 214.0 1,025.3 235.5 249.8 249.6 234.3 969.2 240.7 295.8 294.3 308.7 1,139.5 303.5
VA
PAC 85.6 91.5 79.6 78.4 335.1 78.2 83.4 87.2 83.2 332.0 79.2 92.7 90.6 101.0 363.5 100.3
AM 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 58.3 228.0 58.3
PC 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 22.9 90.7 23.6
Other 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) (1.0) (4.5) (0.9)
Consolidated MTRN 162.6 162.4 148.8 143.4 617.2 143.9 153.9 157.0 145.1 599.9 149.0 176.1 171.4 181.2 677.7 181.3
Gross Margin
PAC 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 27.0 89.7 27.8
AM 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 22.4 88.5 20.8
PC 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 9.1 33.7 10.0
Other 0.3 (0.5) (0.3) 0.6 - (0.1) 0.4 (0.5) 0.8 0.5 0.2 (0.2) 0.1 0.5 0.6 (0.3)
Consolidated MTRN 52.4 51.3 44.0 43.1 190.8 43.4 45.3 50.8 44.1 183.5 43.2 54.8 55.5 59.0 212.5 58.3
Gross Margin as a % of VA
PAC 27% 28% 23% 23% 25% 23% 20% 24% 23% 22% 21% 25% 26% 27% 25% 28%
AM 40% 40% 38% 39% 39% 38% 41% 43% 41% 41% 39% 38% 40% 38% 39% 36%
PC 34% 30% 36% 34% 33% 41% 38% 41% 34% 39% 36% 39% 34% 40% 37% 42%
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
Consolidated MTRN 32% 32% 30% 30% 31% 30% 29% 32% 30% 31% 29% 31% 32% 33% 31% 32%
Operating Profit
PAC 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 9.5 22.0 9.9
AM 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 7.9 32.8 5.9
PC 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 2.3 8.4 3.4
Other (4.2) (4.2) (2.9) (2.3) (13.6) (3.3) (4.0) (5.9) (4.2) (17.4) (5.1) (6.4) (6.2) (5.4) (23.1) (5.9)
Consolidated MTRN 13.2 13.1 10.9 8.1 45.3 7.5 5.8 10.2 3.6 27.1 3.7 10.1 12.0 14.3 40.1 13.3
Special Items - OP
PAC - - - - - - - - 2.6 2.6 0.5 0.6 0.2 (1.3) 0.1 -
AM - - - - - - - - - - 1.0 0.3 - - 1.3 -
PC - - 1.3 0.1 1.4 - - - - - - - 0.4 - 0.4 -
Other (2.1) - 0.5 0.7 (0.9) - 2.3 2.0 1.0 5.3 2.8 1.0 0.8 1.0 5.6 0.7
Consolidated MTRN (2.1) - 1.8 0.8 0.5 - 2.3 2.0 3.6 7.9 4.3 1.9 1.4 (0.3) 7.4 0.7
Operating Profit ex Spec Items
PAC 6.8 9.3 4.5 2.9 23.6 1.5 0.2 4.4 3.1 9.2 0.7 6.0 7.0 8.3 22.1 9.9
AM 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 7.9 34.1 5.9
PC 1.7 0.6 3.6 3.1 8.9 4.1 2.3 3.4 1.8 11.6 2.2 2.3 2.1 2.3 8.8 3.4
Other (6.3) (4.2) (2.4) (1.6) (14.5) (3.3) (1.7) (3.9) (3.2) (12.1) (2.3) (5.4) (5.4) (4.4) (17.5) (5.2)
Consolidated MTRN 11.1 13.1 12.7 8.9 45.8 7.5 8.1 12.2 7.2 35.0 8.0 11.9 13.5 14.0 47.5 14.0
OP ex Spec Items as a % of VA
PAC 7.9% 10.2% 5.7% 3.7% 7.0% 1.9% 0.2% 5.0% 3.7% 2.8% 0.9% 6.5% 7.7% 8.2% 6.1% 9.9%
AM 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% 13.5% 14.9% 10.1%
PC 6.9% 2.4% 14.0% 11.7% 8.7% 16.7% 9.2% 13.2% 8.1% 11.9% 9.4% 10.2% 9.5% 9.8% 9.7% 14.4%
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
Consolidated MTRN 6.8% 8.1% 8.5% 6.2% 7.4% 5.2% 5.3% 7.8% 5.0% 5.8% 5.4% 6.8% 7.9% 7.7% 7.0% 7.7%
2015 2016 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-8
for a full reconciliation of adjusted earnings.
2 Results retroactively adjusted to reflect impact of new pension guidance effective January 1, 2018.
Historical Financials
A-10
1
1
1
2
