Quaker Houghton First Quarter 2021 Results Investor Conference Call Quaker Houghton.. Forward Together Risks and Uncertainties Statement Regulation G The attached charts include Company information that does not conform to generally accepted accounting principles ("GAAP"). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company and allows investors to better evaluate the financial results of the Company ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-12019 QUAKER CHEMICAL CORPORATION (Exact name of Registrant as specified in its charter) Pennsylvania 23-0993790 (State or other jurisdict ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact name of Registrant as specified in its charter) For the transition period from to A Pennsylvania Corporation No. 23-0993790 (State or other jurisdiction of incorporation or organization) (I.R.S. Emp ...

Quaker Houghton Fourth Quarter and Full Year 2020 Results Investor Conference Call Quaker Houghton.. Forward Together Risks and Uncertainties Statement On August 1, 2019, Quaker Chemical Corporation (the "Company", also known as Quaker Houghton) completed its combination with Houghton International, Inc. ("Houghton") (herein referred to as "the Combination"). In addition, the Company acquired the operating divisions of Norman Hay plc ("Norman Hay") on October 1, 2019. Throughout this presentation, all figur ...

Quaker Chemical Corporation (NYSE:KWR) Q4 2020 Earnings Conference Call February 26, 2021 8:30 AM ET Company Participants Michael Barry - Chairman, Chief Executive Officer & President Mary Hall - Chief Financial Officer, Vice President & Treasurer Robert Traub - General Counsel Shane Hostetter - Head of Finance & Chief Accounting Officer Conference Call Participants Mike Harrison - Seaport Global Securities Katherine Griffin - Deutsche Bank Jon Tanwanteng - CJS Securities Steve O'Hara - Sidoti Laurence Alex ...

Forward Together ™ Quaker Houghton Investor Presentation January 2021 Quaker Houghton.. Forward Together Risks and Uncertainties Statement On August 1, 2019, Quaker Chemical Corporation (the "Company", also known as Quaker Houghton) completed its combination with Houghton International, Inc. ("Houghton") (herein referred to as "the Combination"). In addition, the Company acquired the operating divisions of Norman Hay plc ("Norman Hay") on October 1, 2019. Regulation G The attached charts include Company inf ...

Forward Together ™ Quaker Houghton Investor Presentation November 2020 Quaker Houghton.. Forward Together Risks and Uncertainties Statement On August 1, 2019, Quaker Chemical Corporation (the "Company", also known as Quaker Houghton) completed its combination with Houghton International, Inc. ("Houghton") (herein referred to as "the Combination"). In addition, the Company acquired the operating divisions of Norman Hay plc ("Norman Hay") on October 1, 2019. Regulation G The attached charts include Company in ...

Financial Data and Key Metrics Changes - The company reported a sequential sales increase of 28% from Q2 2020, totaling $367 million, but a 5% decrease compared to pro forma Q3 2019 sales of $386 million [6][25] - Gross margin improved to 38.2%, up from 34% in Q2 and 32.3% in Q3 of the previous year [13][26] - Non-GAAP operating income rose to $43.2 million from $11.2 million in Q2 and increased by 25% from $34.5 million in Q3 2019 [28] - Adjusted EBITDA nearly doubled to approximately $64 million in Q3 from $32 million in Q2, reflecting a 5% increase compared to pro forma adjusted EBITDA of $61 million in Q3 2019 [30][31] - Net debt decreased by 7% or $58 million, improving the leverage ratio to 3.4 times from 3.7 times at the end of Q2 [17][34] Business Line Data and Key Metrics Changes - The Americas region saw the largest sales improvement, with a 48% sequential increase driven by stronger volumes [6] - Asia Pacific, EMEA, and Global Specialty Businesses experienced sales growth of 24%, 21%, and 16% respectively compared to Q2 [7] - The metalworking industry group grew 39% sequentially, primarily due to automotive OEMs recovering from shutdowns [8] - Overall sequential volumes were up 27%, but pro forma volumes were down approximately 10% year-over-year [10] Market Data and Key Metrics Changes - The company gained approximately 2% in organic sales growth due to net share gains compared to Q3 2019 [11] - Aerospace, which constitutes about 3% of sales, is expected to take longer to recover compared to other markets [12][82] Company Strategy and Development Direction - The company aims to continue market share gains and explore potential smaller bolt-on acquisitions [12] - Increased synergy estimates for 2020 from $53 million to $58 million, with projections for 2021 raised from $65 million to $75 million [16][35] - The company is focused on disciplined cost management and generating positive cash flow during downturns [36] Management's Comments on Operating Environment and Future Outlook - Management anticipates gradual sequential improvement in markets over the next year or two, but acknowledges uncertainty due to COVID-19 [18] - For Q4, adjusted EBITDA is expected to be similar to Q3, with full-year adjusted EBITDA projected to exceed $215 million [18][19] - The company expects a greater than 20% increase in adjusted EBITDA for 2021, driven by integration savings and market share gains [37] Other Important Information - The company has implemented cost-saving measures, including cutting capital expenditures by over 30% [14] - Strong cash flow management has allowed the company to reduce net debt and improve liquidity [34] Q&A Session Summary Question: What drives confidence in the 2021 EBITDA outlook? - Management indicated that the outlook is based on gradual market recovery and continued market share gains, but acknowledged uncertainty due to potential COVID-19 impacts [46][48] Question: What does steel business consolidation mean for the company? - Management does not anticipate any impact on business due to strong relationships with significant customers involved in the consolidation [49] Question: What drove margin strength in the Americas? - The Americas experienced disproportionate raw material savings and effective manufacturing consolidations contributing to margin strength [51][52] Question: Clarification on EBITDA guidance for Q4? - Management indicated that guidance reflects uncertainty in the market, particularly with ongoing lockdowns in Europe [55] Question: Have any Houghton revenue synergies been identified? - Management confirmed that net market share gains of 2% this quarter are partly due to sales synergies from the Combination [61] Question: How will temporary cost reductions impact future synergies? - Management expects some temporary cost reductions to return as business normalizes, but this is factored into the EBITDA guidance [64][65] Question: Real-time demand in October and November? - Management did not provide specific comments on October demand but indicated that guidance accounts for potential December weakness [72] Question: Cash flow dynamics as business recovers? - Management expects to manage working capital prudently, anticipating positive cash flow as earnings and sales pick up [76] Question: Where are the increasing synergies coming from? - Management noted that initial synergies were underestimated, and recent acceleration in synergy realization is contributing to the increase [78]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-12019 QUAKER CHEMICAL CORPORATION (Exact name of Registrant as specified in its charter) Pennsylvania 23-0993790 (State or other juris ...

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited financial statements reflect the Houghton acquisition, restructuring costs, and COVID-19 impacts [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a significant net loss in Q2 2020 due to acquisition costs and pandemic-related effects Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $286,040 | $205,869 | $664,601 | $417,079 | | **Gross profit** | $97,386 | $75,161 | $231,237 | $150,928 | | **Operating income (loss)** | $2,238 | $20,531 | $(10,206) | $40,360 | | **Net (loss) income attributable to Quaker** | $(7,735) | $15,591 | $(36,116) | $29,435 | | **Diluted (loss) earnings per share** | $(0.43) | $1.17 | $(2.03) | $2.20 | - For the six months ended June 30, 2020, the company recorded a **$38.0 million impairment charge** for an indefinite-lived intangible asset, which was not present in 2019[11](index=11&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased while equity decreased, driven by higher cash from debt and lower intangible asset values Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total current assets** | $849,238 | $715,972 | | **Goodwill** | $604,649 | $607,205 | | **Other intangible assets, net** | $1,044,516 | $1,121,765 | | **Total assets** | $2,871,526 | $2,850,316 | | **Total current liabilities** | $282,691 | $359,934 | | **Long-term debt** | $1,070,306 | $882,437 | | **Total liabilities** | $1,704,185 | $1,607,950 | | **Total equity** | $1,167,341 | $1,242,366 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow improved, and a significant increase in cash resulted from drawing on credit facilities Condensed Consolidated Cash Flow Highlights (in thousands) | Metric | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $44,662 | $22,409 | | **Net cash used in investing activities** | $(10,618) | $(5,843) | | **Net cash provided by (used in) financing activities** | $168,731 | $(35,282) | | **Net increase (decrease) in cash** | $198,200 | $(17,967) | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Houghton acquisition, restructuring, asset impairment, and significant COVID-19 pandemic impacts - **Business Combinations:** The company completed its combination with Houghton on August 1, 2019, for a total consideration of **$1.66 billion**, with integration expenses of $16.5 million in H1 2020[24](index=24&type=chunk)[26](index=26&type=chunk)[30](index=30&type=chunk) - **Restructuring:** The 'QH Program' initiated in Q3 2019 aims to achieve cost synergies, with **$2.2 million in restructuring charges** recorded in the first six months of 2020[73](index=73&type=chunk)[75](index=75&type=chunk) - **Goodwill and Intangible Asset Impairment:** Due to COVID-19's impact, the company recorded a **non-cash impairment charge of $38.0 million** in Q1 2020 on intangible assets[109](index=109&type=chunk) - **COVID-19 Impact:** The pandemic caused significant disruptions, including **volume declines and lower net sales**, with the full extent of future impact remaining uncertain[138](index=138&type=chunk)[140](index=140&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) MD&A explains that while acquisitions boosted sales, organic revenue declined significantly due to COVID-19 - Q2 2020 net sales increased 39% to $286.0 million due to acquisitions, but **organic sales declined approximately 30%** from a 27% drop in sales volumes[146](index=146&type=chunk) - In response to COVID-19, the company took actions to conserve cash, including **lowering targeted capital expenditures by approximately 30%**[159](index=159&type=chunk) - As a precautionary measure, the company **drew down most of its revolving credit facility** in March 2020, increasing cash reserves and total debt[114](index=114&type=chunk)[163](index=163&type=chunk) - The company expects to realize **$53 million in Combination cost synergies in 2020**, with approximately $22 million realized in the first six months[168](index=168&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk.) Market risk exposures remain consistent, though heightened in volatility due to the COVID-19 pandemic - The company acknowledges market risks, noting that the COVID-19 pandemic has led to **significant volatility and uncertainty** across them[247](index=247&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures.) Disclosure controls were deemed ineffective due to material weaknesses related to the recent business combination - Management concluded that **disclosure controls and procedures were not effective** as of June 30, 2020, due to existing material weaknesses[249](index=249&type=chunk) - The material weaknesses relate to **ineffective risk assessment**, revenue controls, and business combination accounting following the Combination[250](index=250&type=chunk) - A multi-step remediation plan is being executed, but **COVID-19 related challenges may impact the timing** of these activities[252](index=252&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings.) The company faces ongoing legal matters related to environmental remediation and asbestos litigation - Information regarding legal proceedings is **incorporated by reference from Note 19** of the financial statements[257](index=257&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors.) The primary updated risk factor is the significant and uncertain negative impact of the COVID-19 pandemic - The primary updated risk factor relates to the **COVID-19 pandemic**, which has negatively affected business through reduced demand and volume declines[259](index=259&type=chunk)[260](index=260&type=chunk) - The pandemic has already led to a **non-cash impairment charge** and could cause future disruptions to supply chains and debt covenant compliance[261](index=261&type=chunk)[265](index=265&type=chunk) - The **ultimate significance of COVID-19 on the business is uncertain** and depends on the duration of the pandemic and pace of economic recovery[263](index=263&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company issued unregistered shares for an acquisition and repurchased shares from employees for tax purposes - On May 20, 2020, the company issued **17,894 shares of common stock** (valued at approx $2.9 million) in a private placement to acquire Tel Nordic ApS[264](index=264&type=chunk) - During the quarter, **3,930 shares were acquired from employees** for tax obligations, with no shares repurchased under the public buyback program[266](index=266&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed with the report, including certifications and interactive data files