Slide 1: 1Q 2022 Earnings Presentation
1Q 2022 Earnings Presentation May 6, 2022
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or
Slide 3: Overview: Strong Execution and Business Model Support Continued Outperformance
Overview Strong Execution and Business Model Support Continued Outperformance ✓ Record quarterly sales, earnings and margins in 1Q22 1Q22 Sales up YoY – Sales of $479M, net income of $63M and cash flow from operations of $49M ✓ Closed acquisition of U.S. Amines, a leading North American producer +27
Slide 4: 1Q 2022 Financial Summary
1Q 2022 Financial Summary Ammonium Sulfate Performance Supports Record Sales and Earnings ($M, except per share amounts) Sales Adjusted EBITDA Highlights +27% +79% • Sales: Price +29%, M&A +2%, Volume (4%) – Market-Based Pricing +26% – Raw Material Pass Through +3% $479 $103 $376 $58 • EBITDA increa
Slide 5: 1Q 2022 Adjusted EBITDA Bridge
1Q 2022 Adjusted EBITDA Bridge Strong Commercial Performance More Than Offset Inflation and Volume ($M) Driving value through strong commercial excellence $7 ($15) • Increased plant spend primarily driven by utilities due to higher natural gas prices $53 • Lower sales volume partially offset by • Pl
Slide 6: 1Q 2022 Cash Flow Generation and Use
1Q 2022 Cash Flow Generation and Use Adding Value Through ~$129M of Capital Deployment Cash Flow ($M) Capital Deployment 1Q22 • Capex of ~$21M in 1Q22 increased ~$7M vs. prior year reflecting Net Income $63 timing of maintenance spend, as expected Depreciation & Amortization $17 • Acquired U.S. Amin
Slide 7: Industry Pricing And Spreads
Industry Pricing And Spreads Nylon Ammonium Sulfate Chemical Intermediates Year-over-Year Improvement in Industry Spreads Strong Ag Fundamentals and Higher Energy Costs Continued Balancing of Acetone Supply and Demand 4000 2000 120 (cents per 1600 ($/MT) $/ston N pound) content basis 3600 1800 100 3
Slide 8: Ag / Fertilizer Environment
Ag / Fertilizer Environment Core Product Portfolio with Strong Underlying Fundamentals AdvanSix Agriculture Profile Farmer economics positive • Ammonium sulfate represents more than 30% of total company sales and more than 50% of total Key crop prices elevated at multi-year highs sales volume Stock-
Slide 9: 2022 Considerations
2022 Considerations Well Positioned to Deliver Sustainable Performance and Attractive Returns Over Long-Term • Targeting significant earnings growth in 2022 supported by advantages of integrated business model and expected robust ammonium sulfate fertilizer performance • Expect continued healthy Nor
Slide 10: Compelling Investment Thesis
Compelling Investment Thesis Strong & Sustainable Shareholder Return Advantaged Asset Base Leading Product Portfolio Aligned to Diverse Compelling ROI and Growing Applications Durable FCF Yield and Top Quartile Conversion Improved Through Cycle Profitability and Enhanced Portfolio Resiliency Increas
Slide 11: Appendix
APPENDIX 11 1Q 2022 Earnings Presentation – May 6, 2022
Slide 12: Planned Plant Turnarounds
Planned Plant Turnarounds Pre-Tax Income Impact by Quarter (1) 1Q 2Q 3Q 4Q FY • Timing driven by compliance, inspection and sustaining asset base 2017 -- ~$10M ~$4M ~$20M ~$34M • Critical to supporting high utilization rates 2018 ~$2M ~$10M ~$30M -- ~$42M • Dedicated teams to improve effectiveness 2
Slide 13: Appendix: Reconciliation of Non-GAAP Measures to GAAP Measures
APPENDIX Reconciliation of Non-GAAP Measures to GAAP Measures 13 1Q 2022 Earnings Presentation – May 6, 2022
Slide 14: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (in $ thousands) (1) Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment The Company believes that this metric is useful to investor
Slide 15: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in $ thousands) (2) EBITDA margin is defined as EBITDA divided by Sales The Company believes the non-GAAP financial measures included in this presentation provide meaningful supplemental information as they are used by the Company’s management to eval
Slide 16: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share to Adjusted Earnings Per Share (in $ thousands except share and per share amounts) The Company believes the non-GAAP financial measures included in this presentation provide meaningful supplemental information as they are used by the Company’s management to evalu