Slide 1: Second Quarter 2023
Second Quarter 2023 August 3, 2023 —11 a.m. ET YOUR CATALYST FOR POSITIVE CHANGE™
Slide 2: Legal Discussion
Legal Discussion Continuing Operations Financial results are presented on a continuing operations basis, which excludes the Performance Materials business and Performance Chemicals business unless otherwise indicated. Forward-Looking Statements Some of the information contained in this presentation,
Slide 3: Legal Discussion
Legal Discussion Supply Share and Industry Information Certain statistical information used in this presentation is based on independent industry publications, reports by research firms or other published independent sources. Some statistical information is also based on our good faith estimates whi
Slide 4: Key Messages
Key Messages 1 High refinery utilization continued to support strong demand for regeneration services Q2 results reflect positive pricing in regeneration services and Catalyst 2 Technologies, and higher sales of catalysts into renewable fuel, emission control and hydrocracking end uses Revising 2023
Slide 5: Q2 2023 Key Highlights
Key Highlights Q2 2023 Key Highlights $229 Mln $79 Mln >80% Sales Adj. EBITDA Number of innovation Q2 20231 Q2 20232 projects linked to Sustainability 3.2x 73% $99 Mln Net Debt Leverage Cash Liquidity6 Ratio2,5 Conversion2,3,4 1. Sales includes proportionate 50% share of sales from the Zeolyst Joint
Slide 6: Demand Trends and Drivers
Demand Trends and Drivers Sources: EIA, S&P, LMC, Global Data, CMA, Bloomberg, Management Estimates 1. Includes sales attributable to 50% ownership in the Zeolyst Joint Venture SECOND QUARTER EARNINGS 2023 / 6
Slide 7: Expanding our Focus on Sustainability
Expanding our Focus on Sustainability Continued focus on sustainable products and processes • Over 80% of innovation projects linked to sustainability • Announced that Zeolyst International and Valoregen, a leading innovator of recycling technologies, are collaborating for the development of advance
Slide 8: Second Quarter 2023 Financial Performance
Second Quarter 2023 Financial Performance
Slide 9: Financial Performance - Q2 2023
Financial Performance - Q2 2023 Second Quarter Financial Results Second Second Quarter Quarter $ % ($ in millions) 2023 2022 Change Change Ecovyst Sales 184.1 225.2 (41.1) (18.3) Zeolyst JV Sales 44.7 35.9 8.8 24.5 Adjusted EBITDA1 79.3 72.9 6.4 8.8 Adjusted EBITDA Margin1,2 (%) 34.7 27.9 680 bps $
Slide 10: Adjusted EBITDA Bridge - Q2 2023
Adjusted EBITDA Bridge - Q2 2023 Continued strong pricing to cover higher variable costs with contractual cost pass-through provisions and announced price increases Positive price-cost Adjusted EBITDA Impact ($MM) 1,2 34.7%1,2 27.9% 1. See Appendix for Reconciliations of non-GAAP measures 2. Adjuste
Slide 11: Ecoservices - Q2 2023 Financial Performance
Ecoservices - Q2 2023 Financial Performance Second Second Quarter Quarter $ % ($ in millions) 2023 2022 Change Change Ecoservices Sales 158.1 193.0 (34.9) (18.1) Adjusted EBITDA1 60.1 60.0 0.1 0.2 Adjusted EBITDA Margin1 (%) 38.0 31.1 690 bps Ecoservices Highlights • Second quarter sales reflect low
Slide 12: Catalyst Technologies - Q2 2023 Financial Performance
Catalyst Technologies - Q2 2023 Financial Performance Second Second Quarter Quarter $ % ($ in millions) 2023 2022 Change Change Silica Catalysts Sales 26.0 32.2 (6.2) (19.3) Zeolyst JV Sales 44.7 35.9 8.8 24.5 Adjusted EBITDA1 25.4 21.4 4.0 18.7 Adjusted EBITDA Margin1,2 (%) 35.9 31.4 450 bps Cataly
Slide 13: Cash, Leverage & Liquidity
Cash, Leverage & Liquidity Strong Cash Conversion Provides for Capital Allocation Flexibility and Improving Leverage Profile 1 2 3 Cash Conversion Net Debt Leverage Liquidity Ratio $73 mm of share $236 $137 mm of share repurchases repurchases $199 79% 71% 72% 71% 73% $171 3.2x 3.2x 2.8x 2.8x 2.8x $1
Slide 14: Ecovyst 2023 Outlook
Ecovyst 2023 Outlook Ecovyst Q1 2023 Q2 2023 ($ in millions, 2022 Prior Updated except per share) Actual Guidance Outlook Sales1 $820 $730 -$760 $685 - $715 Zeolyst JV Sales $133 $145 – $155 $155 - $165 Adjusted EBITDA2 $277 $285 – $300 $260 - $275 Adjusted Free Cash Flow2 $146 $115 – $130 $100 - $1
Slide 15: Summary
Summary 1 Believe weaker demand for nylon and polyethylene represent temporary bottom of cycle conditions 2 Continue to expect positive demand for regeneration services, as well as year-over-year growth for hydrocracking and renewable fuel catalyst sales 3 Anticipate cash conversion above 75% for 20
Slide 16: Appendix
APPENDIX
Slide 17: Annual Segment Sales, Adjusted EBITDA and Margins
Annual Segment Sales, Adjusted EBITDA and Margins Trailing Twelve Months Ended Year Ended December 31, June 30, ($ in millions, except %) 2023 2022 2021 2020 2019 Sales: Ecoservices 651.4 702.5 500.5 401.9 447.1 Silica Catalysts 108.9 117.7 110.7 94.0 85.7 Total sales 760.3 820.2 611.2 495.9 532.8 Z
Slide 18: Ecoservices: North American Leader in Sulfuric Acid Recycling
Ecoservices: North American Leader in Sulfuric Acid Recycling and Related Services with Key Competitive Position in Gulf Coast and California ANTICIPATED FUTURE GROWTH FACTORS • Existing customer re-contracting, and favorable alkylate fundamentals expected to drive growth for regeneration services •
Slide 19: Catalyst Technologies: Global Leader in Tailored Catalyst Solutions
Catalyst Technologies: Global Leader in Tailored Catalyst Solutions ANTICIPATED FUTURE GROWTH FACTORS • Preferred technology and increasing product offerings for strengthening & light weighting of materials projected to drive growth in polyethylene catalysts • Growing demand for renewable fuels • In
Slide 20: Quarterly Segment Sales, Adjusted EBITDA and Margins
Quarterly Segment Sales, Adjusted EBITDA and Margins Six Months Six Months Three Months Ended Ended Three Months Ended Ended ($ in millions, except %) March 31, 2023 June 30, 2023 June 30, 2023 March 31, 2022 June 30, 2022 June 30, 2022 Sales: Ecoservices 137.8 158.1 295.8 154.0 193.0 347.0 Silica C
Slide 21: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Sales Silica Silica (in $ millions and %) Ecovyst Ecoservices Catalysts Ecovyst Ecoservices Catalysts Sales: $ % $ % $ % $ % $ % $ % Volume (33.8) (15.0) (24.5) (12.7) (9.3) (28.9) (6
Slide 22: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended LTM Year Ended June 30, June 30, December 31, December 31, December 31, December 31, ($ in millions, except %) 2023 2023 2022 2021 2020 2019 Reconciliation of net income to Adjusted EBITDA Net income 26.1 67.4 69.8 1.8 54.3 31.1 Prov
Slide 23: Reconciliation of Net (Loss) Income to Adjusted EBITDA
Reconciliation of Net (Loss) Income to Adjusted EBITDA Twelve Months Three Months Ended LTM Three Months Ended Ended March 31, June 30, June 30, March 31, June 30, September 30, December 31, December 31, ($ in millions, except %) 2023 2023 2023 2022 2022 2022 2022 2022 Reconciliation of net (loss) i
Slide 24: Descriptions for reconciliation of Non-GAAP financial measures
Descriptions for reconciliation of Non-GAAP financial measures (a) We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because our Catalyst Technologies segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate s
Slide 25: Adjusted Free Cash Flow
Adjusted Free Cash Flow Full Year Six months ended ($ in millions) 20221 June 30, 2023 Cash flow from Operations before interest and tax 247.5 70.5 Less: Cash paid for taxes 25.6 10.0 Less: Cash paid for interest2 35.4 19.4 Cash Flow from Operations 186.6 41.1 Less: Purchases of property, plant and
Slide 26: Cash Conversion, Liquidity, Leverage
Cash Conversion, Liquidity, Leverage Cash Conversion TTM ($ in millions, except %) 2019 2020 2021 2022 Q2 2023 Adjusted EBITDA 240.1 192.6 227.6 276.8 266.8 1 Less: Capex 70.3 54.5 66.4 59.5 72.3 Cash Conversion 169.9 138.1 161.2 217.5 194.5 Cash Conversion %2 71% 72% 71% 79% 73% Liquidity ($ in mil
Slide 27: Accelerating the transition to a sustainability-driven future
Accelerating the transition to a sustainability-driven future YOUR CATALYST FOR POSITIVE CHANGE™