Ecovyst Inc. · NYSE:ECVT
Ecovyst — BWS Financial Investor Conference 2024
26 slides from Ecovyst's conference presentation, Aug 20, 2024
Slide 1: BWS Financial Investor Conference
BWS Financial Investor Conference August 20, 2024 YOUR CATALYST FOR POSITIVE CHANGE
Slide 2: Legal Discussion: Forward-Looking Statements
Legal Discussion Forward-Looking Statements Some of the information contained in this presentation, the conference call during which this presentation is reviewed and any discussions that follow constitutes “forward-looking statements.” Forward-looking statements can be identified by words such as “
Slide 3: Legal Discussion: Supply Share and Industry Information
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: Ecovyst Business Profile & Value Proposition
Ecovyst Business Profile & Value Proposition An Industry-leading Provider of Specialty Catalysts and Services into Key End Uses • Favorable organic growth trends driven by end use demand and growing need for sustainable products and services • Revenue visibility arising from customer collaborations,
Slide 5: Ecovyst Reporting Segments
Ecovyst Reporting Segments Advanced Materials & Catalysts $106 Million 2023 Advanced Silicas Sales $585 Million 2023 Sales $156 Million 2023 Zeolyst Joint Venture Sales2 $200 Million 2023 Adjusted EBITDA1 $82 Million 2023 Adjusted EBITDA1 Regeneration Virgin Sulfuric Treatment Advanced Services Acid
Slide 6: Ecoservices
Ecoservices Financial Highlights 2023 Sales - $585 Million 2023 Adjusted EBITDA1 - $200 Million Business Overview Demand Drivers Leading North American provider of sulfuric acid regeneration services • Customer ~10% reduction Achieveexpansion of alkylation units Regeneration in natural gas usage • G
Slide 7: Advanced Materials & Catalysts
Advanced Materials & Catalysts Financial Highlights Advanced Silicas Sales - $106 Million Zeolyst Joint Venture Sales - $156 Million 2023 Adjusted EBITDA1,2 - $82 Million Business Overview Demand Drivers From concept to pilot to production 2X market growth from Industrial markets: Achieve ~10% reduc
Slide 8: Strategy for Creating Shareholder Value
Strategy for Creating Shareholder Value Strengthen Leading Positions in Core Segments Regeneration • Maximize production capabilities and reliability via digitization, Hydrocracking AI, and efficiency gains Treatment Services Emissions Controls • Deliver strong margins and cash generation through co
Slide 9: Second Quarter 2024 Financial Performance
Second Quarter 2024 Financial Performance
Slide 10: Q2 2024 Key Highlights
Key Highlights Q2 2024 Key Highlights $183 Mln $57 Mln 27% GAAP Sales Adj. EBITDA Adj. EBITDA Margin Q2 2024 Q2 20241 Q2 20241,2 3.3x 72% $156 Mln Net Debt Leverage Cash Liquidity5 Ratio1,4 Conversion1,3 1. See Appendix for Reconciliations of non-GAAP measures 2. Adjusted EBITDA margin calculation i
Slide 11: Ecoservices - Q2 2024 Financial Performance
Ecoservices - Q2 2024 Financial Performance Second Second Quarter Quarter $ % ($ in millions) 2024 2023 Change Change Sales 153.9 158.1 (4.2) (2.7) Adjusted EBITDA1 49.7 60.1 (10.4) (17.3) Adjusted EBITDA Margin1 (%) 32.3 38.0 (570) bps Highlights • Volume up with high refinery utilization and favor
Slide 12: Advanced Materials & Catalysts - Q2 2024 Financial Performance
Advanced Materials & Catalysts - Q2 2024 Financial Performance Second Second Quarter Quarter $ % ($ in millions) 2024 2023 Change Change Advanced Silicas Sales 28.9 26.0 2.9 11.2 Zeolyst Joint Venture Sales 29.0 44.7 (15.7) (35.1) Adjusted EBITDA1 14.7 25.4 (10.7) (42.1) Adjusted EBITDA Margin1,2 (%
Slide 13: Cash & Leverage
Cash & Leverage Strong Cash Conversion Provides for Capital Allocation Flexibility 1 2 Share repurchases Cash Generation Leverage Ratio and Debt Profile • Continued strong cash flow from operations • Strong cash generation capability has provided for • Available liquidity of $156 million3 as of June
Slide 14: Appendix
APPENDIX
Slide 15: Annual Segment Sales, Adjusted EBITDA and Margins
Annual Segment Sales, Adjusted EBITDA and Margins Trailing Twelve Months Ended (TTM) Year Ended December 31, ($ in millions, except %) June 30, 2024 2023 2022 2021 2020 Sales: Ecoservices 584.5 584.8 702.5 500.5 401.9 Advanced Silicas 104.9 106.3 117.7 110.7 94.0 Total sales 689.4 691.1 820.2 611.2
Slide 16: 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 17: Advanced Materials & Catalysts: Global Leader in Tailored Catalyst Solutions
Advanced Materials & Catalysts: 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 sustainable
Slide 18: 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, 2024 June 30, 2024 June 30, 2024 March 31, 2023 June 30, 2023 June 30, 2023 Sales: Ecoservices 141.6 153.9 295.6 137.8 158.1 295.8 Advanced
Slide 19: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Sales Advanced Advanced (in $ millions and %) Ecovyst Ecoservices Silicas Ecovyst Ecoservices Silicas Sales: $ % $ % $ % $ % $ % $ % Volume 15.5 8.4 12.8 8.1 2.7 10.4 31.4 9.8 33.1 11
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended TTM Year Ended December 31, December 31, December 31, December 31, ($ in millions, except %) June 30, 2024 June 30, 2024 2023 2022 2021 2020 Reconciliation of net income to Adjusted EBITDA Net income 8.3 56.1 71.2 69.8 1.8 54.3 Provi
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Twelve Months Three Months Ended TTM Three Months Ended Ended March 31, June 30, June 30, March 31, June 30, September 30, December 31, December 31, ($ in millions, except %) 2024 2024 2024 2023 2023 2023 2023 2023 Reconciliation of net income (loss) t
Slide 22: 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 Advanced Materials & Catalysts segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proport
Slide 23: Adjusted Free Cash Flow
Adjusted Free Cash Flow Full Year Six months ended ($ in millions) 2023 June 30, 2024 Net cash provided by operating activities 137.6 46.4 Less: Purchases of property, plant and equipment1 65.3 36.6 Free Cash Flow 72.3 9.8 Cash paid for debt financing costs included in cash from operating activities
Slide 24: Cash Conversion & Leverage
Cash Conversion & Leverage Cash Conversion TTM ($ in millions, except %) 2020 2021 2022 2023 Q2 2024 Adjusted EBITDA 192.6 227.6 276.8 259.9 240.1 Less: Capex1 54.5 66.4 59.5 65.3 66.2 Cash Conversion 138.1 161.2 217.5 194.6 173.9 Cash Conversion %2 72% 71% 79% 75% 72% Net Debt Leverage Ratio ($ in
Slide 25: Annual Segment Sales, Adjusted EBITDA and Margins
Annual Segment Sales, Adjusted EBITDA and Margins Trailing Twelve Months Ended (TTM) Year Ended December 31, ($ in millions, except %) March 31, 2024 2023 2022 2021 2020 Sales: Ecoservices 588.7 584.8 702.5 500.5 401.9 Advanced Silicas 102.0 106.3 117.7 110.7 94.0 Total sales 690.7 691.1 820.2 611.2
Slide 26: Accelerating the transition to a sustainability-driven future
Accelerating the transition to a sustainability-driven future