Slide 1: Westlake Corporation Fourth Quarter 2021 Earnings Presentation
Westlake Corporation Fourth Quarter 2021 Earnings Presentation February 22, 2022
Slide 2: Westlake Corporation 2021 Highlights
Westlake Corporation 2021 Highlights Record fourth quarter and full-year 2021 results for sales, net income and EBITDA Re-segmentation of business to provide greater clarity and enhanced reporting of all businesses Housing and Infrastructure Products segment EBITDA of $534 million for 2021 P
Slide 3: Re-segmentation to Provide Greater Clarity
Re-segmentation to Provide Greater Clarity 3 New Segmentation Performance and Essential Materials Housing and Infrastructure Products Performance Materials Housing Products • Westlake North American Vinyls • Westlake Polyethylene • Westlake Epoxy • Westlake Royal Building Products • Westlake Pipe an
Slide 4: Advancing Sustainability: 2030 Carbon Dioxide Reduction Goal
Advancing Sustainability Westlake Sets 2030 Carbon Dioxide Reduction Goal Westlake has set a goal of reducing Scope 1 and Scope 2 CO2 emissions rate¹ by 20% by 2030. To achieve this goal, Westlake will act to reduce the carbon intensity of operations by focusing on the optimal feedstocks for energy
Slide 5: Westlake Corporation Performance Fourth Quarter and Full Year 2021
Westlake Corporation Performance Fourth Quarter and Full Year 2021 (1) Reconciliations of EBITDA, Housing and Infrastructure Products EBITDA, Performance and Essential Materials EBITDA and Corporate EBITDA to the applicable GAAP measures can be found on pages 14 and 15 5 ($ in millions) 4Q 2021 3Q 2
Slide 6: Housing and Infrastructure Products Segment Performance
Housing and Infrastructure Products (“HIP”) Segment Performance 6 (1) Reconciliations of EBITDA to the applicable GAAP measure can be found on page 15 + With demographics driving household formation, paired with underbuilding of homes since the 2007- 2009 recession, led to a significant deficit in a
Slide 7: Housing and Infrastructure Products Overview and Industry Outlook
0 500 1,000 1,500 2,000 2,500 2000 2003 2006 2009 2012 2015 2018 2021 An nu al H ou si ng S ta rt s¹ (t ho us an ds ) Housing and Infrastructure Products Overview 7 Leading market positions with well-established high value brands to serve the residential repair and remodeling and new construction
Slide 8: Westlake's Leading Portfolio of Housing Products
Westlake’s Leading Portfolio of Housing Products 8 Westlake’s leading portfolio of brands provide broad range of products to serve residential customers Westlake Royal Building Products provides residential siding, trim and molding, stone, roofing and window though a number of industry-leading b
Slide 9: Performance and Essential Materials Segment Performance
Performance and Essential Materials (“PEM”) Segment Performance 9 + Residential construction drove strong demand and pricing for PVC in downstream markets + The global economic expansion drove demand in consumer and industrial packaging as well as manufacturing activity throughout 2021 and Westlake
Slide 10: Performance and Essential Materials Outlook
Performance and Essential Materials Outlook 10 As a highly integrated, global leader in chlorovinyls, Westlake is well-positioned to benefit from higher margins over the cycle throughout the value chain PVC supply/demand fundamentals remain strong with the growth in demand higher than the limite
Slide 11: A Sustainable Future - Developing Green Products and Reducing CO2 Emission Intensity
A Sustainable Future - Developing Green Products and Reducing CO2 Emission Intensity 20% by 2030¹ 11 Developing Green Products Westlake offers certified climate-friendly products, GreenVin ® Caustic Soda, and GreenVin® PVC, which utilize renewable energy and have a lower CO2 footprint compared to co
Slide 12: Financial Reconciliations
EXHIBIT 99.2 Financial Reconciliations
Slide 13: Consolidated Statements of Operations
Consolidated Statements of Operations 13 Three months ended September 30, Three months ended December 31, Twelve months ended December 31, 2021 2021 2020 2021 2020 (In millions of dollars, except per share data) Housing and Infrastructure Products Sales $ 733 $ 1,047 $ 532 $ 3,108 $ 2,039 Performanc
Slide 14: Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash
Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities 14 Three months ended September 30, Three months ended December 31, Twelve months ended December 31, 2021 2021 2020 2021 2020 (In millions of dollars) Net cash provided by operating activitie
Slide 15: Reconciliation of HIP, PEM and Corporate EBITDA to Operating Income
Reconciliation of HIP, PEM and Corporate EBITDA to Applicable Operating Income (Loss) 15 Three months ended September 30, Three months ended December 31, Twelve months ended December 31, 2021 2021 2020 2021 2020 (In millions of dollars) Housing and Infrastructure Products EBITDA $ 137 $ 162 $ 99 $ 5
Slide 16: Quarterly Industry Pricing
EXHIBIT 99.2 Ie Quarterly Industry Pricing !
Slide 17: Industry pricing data notes
1) Industry pricing data was obtained through IHS Markit ("IHS"). We have not independently verified the data. 2) Average Burner Tip contract prices of natural gas over the period. 3) Average Mont Belvieu spot prices of purity ethane over the period. 4) Average Mont Belvieu spot prices of non-TET pr
Slide 18: Safe Harbor Language
Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding creating value for our shareholders, pricing and demand for our products, continued recovery in key end markets, industry outlook for both of our segments, our cost control and efficienc
Slide 19: Westlake
Westlake