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Forward-Looking Statements
This presentation may contain “forward-looking statements,” which include information concerning the company’s plans, objectives, goals, strategies, future revenues or
performance, capital expenditures, financing needs and other information that is not historical information. When used in this presentation, the words “outlook,” “forecast,”
“estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” and variations of such words or similar expressions are intended to identify forward-looking statements.
All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the company will realize these
expectations or that these beliefs will prove correct.
There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements contained in
this presentation. These risks and uncertainties include, among other things: changes in general economic, business, political and regulatory conditions in the countries or regions in
which we operate; the length and depth of business cycles, particularly in the automotive, electrical, electronics and construction industries; changes in the price and availability of
raw materials; the ability to pass increases in raw material prices on to customers or otherwise improve margins through price increases; the ability to maintain plant utilization rates
and to implement planned capacity additions and expansions; the ability to improve productivity by implementing technological improvements to existing plants; increased price
competition and the introduction of competing products by other companies; market acceptance of our technology; the ability to obtain governmental approvals and to construct
facilities on terms and schedules acceptable to the company; changes in the degree of intellectual property and other legal protection afforded to our products; compliance costs and
potential disruption of production due to accidents or other unforeseen events or delays in construction or operation of facilities; potential liability for remedial actions and increased
costs under existing or future environmental regulations, including those relating to climate change; potential liability resulting from pending or future litigation, or from changes in the
laws, regulations or policies of governments or other governmental activities in the countries in which we operate; changes in currency exchange rates and interest rates; and various
other factors discussed from time to time in the company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which
it is made, and the company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the
occurrence of anticipated or unanticipated events or circumstances.
Results Unaudited
The results in this presentation, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data
furnished to management. Quarterly and LTM results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal
year.
Use of Non-U.S. GAAP Financial Information
This presentation includes the following non-U.S. GAAP financial measures: operating EBITDA, proportional EBITDA, and adjusted earnings per share. These measurements are
not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance. The most directly comparable financial
measure presented in accordance with U.S. GAAP in our consolidated financial statements for operating EBITDA is net income; for proportional share EBITDA is equity in net
earnings of affiliates; for net debt or proportional share net debt is total debt; and for adjusted earnings per share is earnings per common share-diluted. Reconciliations of these
non-U.S. GAAP financial measures are included in the Appendix.
Operating EBITDA, a measure used by management to measure performance, is defined by the company as net earnings plus loss from discontinued operations, interest
expense, taxes, and depreciation and amortization, and further adjusted for Other Charges and Adjustments as described in Slide 31. We may provide guidance on operating
EBITDA and are unable to reconcile forecasted operating EBITDA to a U.S. GAAP financial measure because a forecast of Other Charges and Adjustments is not practical.
Proportional EBITDA of Affiliates is defined by the company as proportional operating profit plus the proportional depreciation and amortization of its equity investments.
Adjusted earnings per share is defined by the company as net earnings (loss) available to common shareholders plus preferred dividends, adjusted for Other Charges and
Adjustments as described in Slide 31, and divided by the number of basic common shares, diluted preferred shares, and options valued using the treasury method. We may
provide guidance on an adjusted earnings per share basis and are unable to reconcile forecasted adjusted earnings per share to a U.S. GAAP financial measure without
unreasonable effort because a forecast of Other Items is not practical. Note: The tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted
tax rates for the year, excluding changes in uncertain tax positions, discrete items and other material items adjusted out of our U.S. GAAP earnings for adjusted earnings per share
purposes, and changes in management's assessments regarding the ability to realize deferred tax assets. We analyze this rate quarterly and adjust if there is a material change in
the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an
estimate and may differ significantly from the tax rate used for U.S. GAAP reporting in any given reporting period. It is not practical to reconcile our prospective adjusted tax rate to
the actual U.S. GAAP tax rate in any future period.
