Slide 1: Fourth Quarter 2023
Fourth Quarter 2023 February 28, 2024 —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 Stable demand fundamentals across the majority of end uses for both Ecoservices and Advanced Materials & Catalysts Q4 2023 sales volume for regeneration services and virgin sulfuric acid up, 2 with lower pricing associated with cost pass-through and softer macroeconomic conditions 3 F
Slide 5: Q4 2023 Key Highlights
Key Highlights Q4 2023 Key Highlights $173 Mln $69.8 Mln 31% GAAP Sales Adj. EBITDA Adjusted EBITDA Margin Q4 2023 Q4 20231 Q4 20232,3 3.0x 75% $152 Mln Net Debt Leverage Cash Liquidity6 Ratio1,4 Conversion1,3 1. See Appendix for Reconciliations of non-GAAP measures 2. Adjusted EBITDA margin calcula
Slide 6: Demand Trends and Drivers
Demand Trends and Drivers Sources: EIA, S&P, CMA, Bloomberg, Management Estimates FOURTH QUARTER EARNINGS 2023 / 6
Slide 7: Fourth Quarter 2023 Financial Performance
Fourth Quarter 2023 Financial Performance
Slide 8: Financial Performance - Fourth Quarter and Full Year 2023
Financial Performance - Fourth Quarter and Full Year 2023 Fourth Quarter Financial Results Fourth Fourth Quarter Quarter $ % $ % ($ in millions) 2023 2022 Change Change ($ in millions) Change Change Ecovyst Sales 172.8 182.8 (10.0) (5.5) Sales Change Factors3 (10.0) (5.5) Zeolyst JV Sales 52.8 39.9
Slide 9: Adjusted EBITDA Bridge - Q4 2023
Adjusted EBITDA Bridge - Q4 2023 Continued positive price-to-cost benefit across the portfolio ◦ Favorable base pricing from implemented price increases ◦ Lower variable costs passed through in price Positive price-cost 31.1%1,2 30.9%1,2 1. See Appendix for Reconciliations of non-GAAP measures 2. Ad
Slide 10: Ecoservices - Q4 2023 Financial Performance
Ecoservices - Q4 2023 Financial Performance Fourth Fourth Quarter Quarter $ % ($ in millions) 2023 2022 Change Change Ecoservices Sales 141.4 159.8 (18.4) (11.5) Adjusted EBITDA1 48.4 54.4 (6.0) (11.0) Adjusted EBITDA Margin1 (%) 34.2 34.0 20 bps Ecoservices Highlights • Fourth quarter sales reflect
Slide 11: Advanced Materials & Catalysts - Q4 2023 Financial Performance
Advanced Materials & Catalysts - Q4 2023 Financial Performance Fourth Fourth Quarter Quarter $ % ($ in millions) 2023 2022 Change Change Advanced Silicas Sales 31.4 23.0 8.4 36.5 Zeolyst JV Sales 52.8 39.9 12.9 32.3 Adjusted EBITDA1 27.2 20.3 6.9 34.0 Adjusted EBITDA Margin1,2 (%) 32.3 32.3 0 bps Ad
Slide 12: Cash & Leverage
Cash & Leverage Cash Conversion Provides for Capital Allocation Flexibility and Improving Leverage Profile 1 Cash Conversion 2 Net Debt Leverage Ratio $79 mm of share repurchases 79% 71% 72% 71% 75% 3.2x 3.2x 3.2x 3.0x 2.8x 2019 2020 2021 2022 2023 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Cash Generation • Con
Slide 13: Ecovyst 2024 Outlook
Ecovyst 2024 Outlook 1. GAAP sales only; Excludes proportionate 50% share of the Zeolyst Joint Venture sales 2. See Appendix for Reconciliations of non-GAAP measures FOURTH QUARTER EARNINGS 2023 / 13
Slide 14: Summary
Summary Maintaining conservative outlook given uncertain macroeconomic 1 environment and limited visibility into customer demand in second half of year 2 Expect modest demand recovery for virgin sulfuric acid sales into production of nylon intermediates and for sales of polyethylene catalysts 3 Anti
Slide 15: Appendix
APPENDIX
Slide 16: Annual Segment Sales, Adjusted EBITDA and Margins
Annual Segment Sales, Adjusted EBITDA and Margins Year Ended December 31, ($ in millions, except %) 2023 2022 2021 2020 2019 Sales: Ecoservices 584.8 702.5 500.5 401.9 447.1 Advanced Silicas 106.3 117.7 110.7 94.0 85.7 Total sales 691.1 820.2 611.2 495.9 532.8 Zeolyst Joint Venture sales 156.5 132.6
Slide 17: 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 18: 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 renewable f
Slide 19: Quarterly Segment Sales, Adjusted EBITDA and Margins
Quarterly Segment Sales, Adjusted EBITDA and Margins Three Months Ended Year Ended Three Months Ended Year Ended March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, December 31, December 31, ($ in millions, except %) 2023 2023 2023 2023 2023 2022 2022 2022 202
Slide 20: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended December 31, 2023 Year Ended December 31, 2023 Sales Advanced Advanced (in $ millions and %) Ecovyst Ecoservices Silicas Ecovyst Ecoservices Silicas Sales: $ % $ % $ % $ % $ % $ % Volume 10.0 5.5 8.2 5.1 1.8 7.8 (76.2) (9.3) (52
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Years Ended December 31, December 31, December 31, December 31, December 31, ($ in millions) 2023 2022 2021 2020 2019 Reconciliation of net income to Adjusted EBITDA Net income 71.2 69.8 1.8 54.3 31.1 Provision (benefit) for income taxes 10.8 24.9 12.1
Slide 22: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended Year Ended Three Months Ended Year Ended March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, December 31, December 31, ($ in millions) 2023 2023 2023 2023 2023 2022 2022 2022 2022 2022 Reconcil
Slide 23: 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% propor
Slide 24: Adjusted Free Cash Flow
Adjusted Free Cash Flow Full Year Full Year ($ in millions) 20221 2023 Net cash provided by operating activities 186.6 137.6 Less: Purchases of property, plant and equipment2 58.9 65.3 Free Cash Flow 127.7 72.3 Plus: Cash paid for costs related to segment disposals 18.1 — Adjusted Free Cash Flow 145
Slide 25: Cash Conversion & Leverage
Cash Conversion & Leverage Cash Conversion ($ in millions, except %) 2019 2020 2021 2022 2023 Adjusted EBITDA 240.1 192.6 227.6 276.8 259.9 Less: Capex1 70.3 54.5 66.4 59.5 65.3 Cash Conversion 169.9 138.1 161.2 217.5 194.6 Cash Conversion %2 71% 72% 71% 79% 75% Net Debt Leverage Ratio ($ in million
Slide 26: Accelerating the transition to a sustainability-driven future
Accelerating the transition to a sustainability-driven future YOUR CATALYST FOR POSITIVE CHANGE™