Ecovyst Inc. · NYSE:ECVT
Ecovyst — Fall 2021 Conference / Non-Deal Roadshows (NDRs)
21 slides from Ecovyst's conference presentation, Sep 13, 2021
Slide 1: Investor Presentation
Investor Presentation September 2021 YOUR CATALYST FOR POSITIVE CHANGE ™
Slide 2: Legal Discussion
Legal Discussion Continuing Operations Financial results for fiscal 2018A‐2020A are presented on a continuing operations basis, which excludes the Performance Materials business from all yearly results presented unless otherwise indicated. Financial information for 2017 has been presented to exclude
Slide 3: Ecovyst At-A-Glance: A Leading Pure-Play Catalyst and Services Company
Ecovyst At‐A‐Glance: A Leading Pure‐Play Catalyst and Services Company Sustainability Portfolio: OUR COMPANY ~75% of sales serves clean energy transition and circular plastics economy by the numbers • N.A. Sulfuric Acid Regeneration Services for Cleaner & Efficient Fuels • Zeolite Catalysts for SOx
Slide 4: Ecovyst Transformation Path and Value Creation
Ecovyst Transformation Path and Value Creation PORTFOLIO TRANSFORMATION ACTIONS • Sold/exchanged 10 non‐core assets and product line transactions, resulting in ~$90 million • Completed Performance Materials sale for $650 million • Completed Performance Chemicals sale for $1.1 billion • Acquired stra
Slide 5: Ecovyst is a High Growth Sustainability Focused Pure-Play Catalysts and Services Company
Ecovyst is a High Growth Sustainability Focused Pure‐Play Catalysts and Services Company Our technologies support ecological health. We are well positioned and confident in Vying for and propelling customers’ expansion and growth. We are a catalyst for positive change. STRATEGY INVESTMENT PROPOSITIO
Slide 6: Ecoservices: Energy Transition, Green Infrastructure, and Sustainability Trends Drive Increased Demand
Ecoservices: Energy Transition, Green Infrastructure, and Sustainability Trends Drive Increased Demand ECOSERVICES (% 2020 Sales1) YEAR ON YEAR DEMAND TRENDS ’20A ’21E ’22E Clean Fuels Ecoservices ~53% 65% CLEAN FUELS INDUSTRIAL Industrial ~37% WT/CR* Catalyst Technologies 35% WT/CR*: Waste Treatmen
Slide 7: Catalyst Technologies: Proprietary Technology and Product Customization Enables Growth Outpacing Market Trends
Catalyst Technologies: Proprietary Technology and Product Customization Enables Growth Outpacing Market Trends CATALYST TECHNOLOGIES (% 2020 Sales1) YEAR ON YEAR DEMAND TRENDS Catalyst Technologies ’20A ’21E ’22E Clean Fuels & Air 35% ~51% CLEAN FUELS & AIR POLYMERS Engineered Ecoservices Polymers 6
Slide 8: A Culture of Innovation and Customer Collaboration
A Culture of Innovation and Customer Collaboration 1 Depth in product development and science competency 2 Significant expertise in silica, zeolites, and catalyst technologies Chemistry Technical 3 Expertise to tailor and scale specialty grades to meet changing demands Customer Collaborations Scale
Slide 9: Innovation Portfolio Focused on Sustainable Solutions and Services
Innovation Portfolio Focused on Sustainable Solutions and Services 2015 2020 2025 E Sustainability driven Sustainability Focused innovation investment ratio 60% 80% 90% Global Sustainability Trend Our products provide solutions that… …Remove sulfur in diesel Clean Air …Remove NOx from emissions …Cre
Slide 10: Sustainability Customer Portfolio: ~75% of end use sales solve customer needs and consumer demand
Sustainability Customer Portfolio: ~75% of end use sales solve customer needs and consumer demand for more sustainable products and services CLEAN ENERGY TRANSITION: Evolving Fuels, Emission Reductions & Energy Storage CIRCULAR PLASTICS ECONOMY: Lightweighting, Strengthening & Recycling ECOSERVICES
Slide 11: Ecovyst Leading in Financial Performance yet Undervalued versus Peer Comps
Ecovyst Leading in Financial Performance yet Undervalued versus Peer Comps Sales CAGR CY 2020A‐2022E CY 2022E Adjusted EBITDA Margin 34.0% 11.9% 29.5% 10.9% All Peer 9.3% All Peer 21.3% Median: Median: 18.9% 8.9% 4.8% 21.6% Ecovyst Electronic Specialty Recycling & Ecovyst Electronic Specialty Recycl
Slide 12: Strong Adjusted Free Cash Flow and Balance Sheet Flexibility to Enable Opportunistic Capital Allocation
Strong Adjusted Free Cash Flow and Balance Sheet Flexibility to Enable Opportunistic Capital Allocation Strategy CAPITAL ALLOCATION Business Historical capital allocation from portfolio actions and Reinvestment cash flow1 20% Reduced debt by ~$1.8 billion Returned cash to shareholders of $5/ps
Slide 13: Ecovyst: Leading in Sustainable High-Growth, High-Margin Segments
Ecovyst: Leading in Sustainable High‐Growth, High‐Margin Segments TARGET : 2025 • > $ 1.0 B total Sales1 with inorganic contribution • High 30’s Adjusted EBITDA margins • Cash Conversion > 80% • Growing share of transition driven products sales SUSTAINABLE GROWTH / TRANSITION FOCUS • 80% of innovati
Slide 14: Appendix
APPENDIX
Slide 15: Ecovyst vs. Peer Comps Sales & Adjusted EBITDA Margin
Ecovyst vs. Peer Comps Sales & Adjusted EBITDA Margin Sales CAGR CY 2020A‐2022E CY 2022E Adjusted EBITDA Margin 14.1% 13.7% 38.3% 13.1% 11.9% 34.0% 10.9% All Comp. Median (8.9%) 30.7% All Comp. Median (21.6%) 29.5% 29.1% 9.4% 9.2% 25.4% 8.6% 23.5% 8.2% 19.6% 18.9% 6.2% 17.9% 17.3% 15.2% 14.8% 4.8% 4
Slide 16: Ecovyst vs. Peer Comps Cash Conversion & EV/EBITDA Multiple
Ecovyst vs. Peer Comps Cash Conversion & EV/EBITDA Multiple CY 2022E Cash Conversion1 Enterprise Value / CY 2022E Adjusted EBITDA 94% 89% 17.9x 85% 17.3x 81% All Comp. Median (77%) All Comp. Median (11.7x) 78% 78% 77% 77% 15.5x 72% 70% 67% 12.8x 12.4x 60% 11.7x 11.6x 11.3x 53% 10.2x 10.0x 9.9x 9.7x
Slide 17: Historical Financial Performance
Historical Financial Performance Year Ended December 31, ($ in millions except %) 2020 2019 2018 2017 PQ Group Holdings Inc. Sales1: Ecoservices (formerly Refining Services) 401.9 447.1 455.6 398.4 Silica Catalysts 94.0 85.7 72.1 75.3 Performance Materials — 363.0 378.3 324.2 Performance Chemicals 6
Slide 18: Reconciliation of Net income to Segment Adjusted EBITDA
Reconciliation of Net income to Segment Adjusted EBITDA Continuing Operations1 Legacy PQ2 Year Ended December Year Ended 31, December 31, ($ in millions) 20203 20194 20184 20174 Reconciliation of net income (loss) attributable to PQ Group Holdings Inc. to Segment Adjusted EBITDA Net (loss) income at
Slide 19: Pro Forma Reconciliation of Net income to Segment Adjusted EBITDA
Pro Forma Reconciliation of Net income to Segment Adjusted EBITDA Pro Forma Ecovyst1 Year Ended December 31, ($ in millions) 2020 2019 2018 Reconciliation of net income (loss) attributable to Ecovyst Inc. to Pro Forma Segment Adjusted EBITDA Pro Forma net (loss) income attributable to Ecovyst Inc. 5
Slide 20: Descriptions for historical reconciliation of Non-GAAP financial measures
Descriptions for historical reconciliation of Non‐GAAP financial measures a) We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because our Catalysts segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate sha
Slide 21: Your Catalyst for Positive Change
YOUR CATALYST FOR POSITIVE CHANGE ™
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