Ascent Industries Co. · NASDAQ:ACNT
Ascent Industries — Investor Presentation (August 2022)
36 slides from Ascent Industries's investor presentation, Aug 10, 2022
Slide 1: Investor Presentation August 2022
Slide 2: Forward Looking Statement Safe Harbor and Non-GAAP Information
Forward Looking Statement Safe Harbor and Non-GAAP Inf Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 995 and other applicable federal securities laws. All statements that are not historical fac
Slide 3: Ascent Industries Co. Overview
Ascent Industries Co. Overview Ascent Snapshot vy Nasdaq: ACNT v Founded in 1945 ¥_ Based in Oak Brook, IL vy _~640 employees ¥ — gmanufacturing and distribution facilities vy _ Proprietary capabilities providing wide range of industrial and mission critical infrastructure solutions v LTMEl consolid
Slide 4: Ascent locations and business segments
[Re eS eee ee "oe Headquarters Ascent Asce nt Oak Brack, IL Ascent Tubular Products Chemicals lass * * Munhall, PA Danville, VA Bristol, TN * x Fountain Inn, SC Troutman, NC Cleveland, TN Statesville, NC Mineral Ridge, OH Houston, TX Ascent ,
Slide 5: Transformation Well Underway
Transformation Well Underway. Foundational changes implemented since new leadership team took control in November 2020 What We Inherited \ Portfolio of diverse and leading businesses that had not been integrated following acquisition \ Limited hands-on leadership \ Bloated corporate cost structure \
Slide 6: With Results Dramatically Improved Under New Leadership
.. With Results Dramatically Improved Under New Leadership Sinmillions ) _ mmLTM Net Sales LTM Adj. EBITDA $414.3 $3347 $294.9 $268.0 $193 Q4'20 Qra Q2'21 Q3'21 Qa'21 Qr'22 Qz2'22 fi] See appendix for non-GAAP reconciliation Ascent ,
Slide 7: Ascent Tubular Products
Slide 8: Ascent Tubular Products Portfolio Brands
Ascent Tubular Products Portfolio Brands Largest domestic manufacturer of The standard in the production of Leading master distributor for large welded stainless steel, duplex, and premium ornamental stainless steel diameter, hot finish seamless carbon nickel alloy pipe and tube, as well tubing stee
Slide 9: Ascent Tubular Products Opportunity
Ascent Tubular Products Opportunity 0005 of tons 4,800 20288) Others Mechanical (2020 sa 17% EX 4,600 4 2.0% CAS #08 Ornamental Food 4,200 35.5% 8.7% 4,000 Structural 3,800 4 9.9% 3,600 3,400 3,200 4 Sane ; Exhaust Process % 19.0% 2019A 2020A 2021E 2022E 2023E 2024E 2025E 2026E 15:8 Sources: SMR Ste
Slide 10: Bristol Tubular (BRISMET)
Bristol Tubular (““BRISMET”) Founded in 1g41 and acquired by Ascent in 1964 Located in Bristol, TN and Munhall, PA One of the largest producers of welded stainless steel, duplex, nickel alloy, and galvanized pipe and tube in North America Extensive ranges of sizes, materials, and in-house capabiliti
Slide 11: American Stainless Tubing (ASTI)
American Stainless Tubing (“ASTI”) Founded in 1994 and acquired by Ascent in 2019 Located in Troutman and Statesville, NC Leading manufacturer of premium ornamental stainless steel tubing Differentiated capabilities: Slitting and welding Proprietary finishing processes Superior metal quality and hig
Slide 12: Specialty Pipe and Tube (Specialty)
Specialty Pipe and Tube (“Specialty”) Founded in 1964 and acquired by Ascent in 2014 Located in Houston, TX and Mineral Ridge, OH Nation’s leading distributor of large diameter, heavy wall, hot finish, and seamless carbon steel pipe & tube Immediate availability of long-lead time items Full line of
Slide 13: Ascent Tubular Products Financial Overview
Ascent Tubular Products Financial Overview [ae asd earl tained So Sinmillc i MmNet Sales Adj. EBITDA" -m-Adj. EBITDA Margin $go.0 30.0% $80.0 7 = ei 25.0% $60.7 $60.0 ‘ 20.0% 52-0 $50.0 9474 $447 15.0% 0% $40.0 14.8% $30.0 6.6% 10.0% F 8.8% Ss $20.0 5.4% b.9% P $14.2 $13.8 idea $147 5.0% 10.1 f 5-07
Slide 14: Why Ascent Tubular Products is Positioned to Win
Why Ascent Tubular Products is Positioned to Win CUSTOMER | Dramatically improved on-time delivery by driving market share gains through FOCUS improved inventory assortment and expanded product offerings Cardinal operational rules developed and implemented focusing on “right the first Ascent OPERATI
Slide 15: Ascent Chemicals
Slide 16: Ascent Chemicals Investment Highlights
Ascent Chemicals Investment Highligh Ascent Che ls operates three manufacturing in the Southeastern US @ Flexible and nimble production capacity across 60+ Year Track ep eg es three sites with one of the largest fleets of Record of Providing Superior horizontal reactors in the industry Manufacturing
Slide 17: Ascent Chemicals Opportunity
Ascent Chemicals Opportunity U.S. chemical production volume to grow 4.3% in 2022 driven by strong end-user demand and shoring up of supply chains - Mid-to-long term growth to stabilize near 2% Increased outsourcing as larger chemical companies increasingly look to focus their capital allocation on
Slide 18: Wide-Ranging Capabilities Providing Solutions for Blue-Chip Customers
Wide-Ranging Capabilities Providing Solutions for Blue-Chip Customers Unique capabilities and process ingenuity involving industry-leading fleet of horizontal and vertical reactors Multitude of equipment that can support single- step to complex, multi-step processes Highly specialized products are t
Slide 19: Ascent Chemicals Financial Overview
Ascent Chemicals Financial Overview Sinmillions mmNet Sales CAdj.EBITDA” -mAdj. EBITDA Margin $29.0 9 $30.0 dns ‘9 20.0% 17.4% ase 16.0% 12.6% $20.0 12.3% $16.4 12.0% $15.0 i 12.2% $15.0 {914-0 $144 a 8.3% $4.6, z iA 10.9% i: 12.2 $un.2 10.198 8.0% $10.0 6.6% 5.2% ; 67 4 0% 95.0 bog $26 93-4 93 $1.8
Slide 20: DanChem Acquisition Case Study
DanChem Acquisition Case Study Ascent purchased DanChem for $33.0 million 4 Acceleration of Product Development Acquired for approximately 6x adjusted EBITDA pal S DanChem possesses unique capabilities and ingenuity of process engineering, decades of experience, and the VY Larger Presence in Target
Slide 21: Why Ascent Chemicals is Positioned to Win
Why Ascent Chemicals is Positioned to Win PROCESS Highly diversified capabilities for complex chemical synthesis. Diverse set of equipment INGENUITY | and processes provides customers unmatched flexibility, capabilities, and responsiveness Ascent OPERATIONAI Expertise with a wide variety of manufact
Slide 22: Driving Long-Term Shareholder Value
Slide 23: Consolidated Financial Performance
Consolidated Financial Performance Sinmilions i mmNet Sales (Adj. EBITDA" Adj. EBITDA Margin $140.0 20.0% $120.0 17.2% $16.2 $6.2 18.0% 15.5% C] 16.0% 14.6% $100.0 $957 sae $83.4 986.2 13.3 9 $80.0 4 $747 sug wy 11.8% 12.0% eae $59.3 - 10.0% ‘59: S55. m0 aE 8.0% $40.0 7.0% 6.0% . y 4% BS 2.9% 2.8% “
Slide 24: Financial Performance - LTM as of 06/30/22
Financial Performance - LTM as of 06/30/22 Tubular Products Chemicals @Tubular Products += Chemicals [h] See appendix fornon-GAAP reconciliation Ascent ,
Slide 25: Commitment to diversity, inclusion and respect
Ascent is committed to diversity, inclusion and respect. We seek to nurture and an environment that attracts the highest caliber team members and betters our communities
Slide 26: Strong Liquidity Position to Support Capital Allocation Priorities
Strong Liquidity Position to Support Capital Allocation Priorities $0.2 million in cash as of 06/30/22 Investments aligned with core strengths $41.2 million available borrowing capacity driving high returns $40 million in additional borrowing capacity through Geel Expand capabilities for growth in v
Slide 27: Strategic and Disciplined Approach to M&A
Strategic and Disciplined Approach to M&. Thoughtful Acquisition Strategy Target Strategic & Financial Criteria = Leverage our go-to-market strategy and customer wp Market Leadership and Key Product Category relationships, including our extensive distribution network, to source strategic and proprie
Slide 28: Experienced Leadership Team
erienced Leadership Team Company leadershi Ben Rosenzweig Executive Chairman Partner at Privet Fund Management Has served on the board of directors of eight publicly traded companies Graduated magna cum laude from Emory University with Bachelor's degree in finance and economics Doug Tackett Chief Le
Slide 29: Ascent Highlights
Ascent Highlights Currently in the middle innings of a transformation and growth strategy, with proven results since new management was put in place Two business segments well-positioned to capture market share and better serve their respective customers through both organic and inorganic growth 2 M
Slide 30: Contact Us
Contact Us » Ascent Aaron Tam Chief Financial Officer 1-804-822-3260 & GATEWAY Cody Slach or Cody Cree Gateway Group 1-949-574-3860 ACNT@gatewayir.com
Slide 31: Appendix
Slide 32: Non-GAAP Reconciliations - Consolidated LTM Adjusted EBITDA
Non-GAAP Reconciliations - Consolidated LTM Adjusted EBITDA 12Months Ended © 12MonthsEnded © 12MonthsEnded © 12MonthsEnded © 12MonthsEnded © 12MonthsEnded 12 Months Ended (in 0005) December 31,2020 March 31, 2021 June 30,2021 September 30, 2021 December 31,2021 _ March 31, 2022 June 30, 2022 Interes
Slide 33: Non-GAAP Reconciliations - Consolidated Quarterly Adjusted EBITDA
Non-GAAP Reconciliations - Consolidated Quarterly Adjusted EBITDA (Sin 0005) Interest Expense Income Tax Expense / (Benefit) Depreciation ‘Amortization ‘Acquisition Costs and Other Proxy Contest Costs and Recoveries Earn-out Adjustments (Gain) Loss in equity securities and other investments ‘Asset I
Slide 34: Non-GAAP Reconciliations - Tubular Products Quarterly Adjusted EBITDA
Non-GAAP Reconciliations - Tubular Products Quarterly Adjusted EBITDA 3Months Ended 3Months Ended 3Months Ended Months Ended 3MonthsEnded © 3Months Ended 3 Months Ended 3 Months Ended 3Months Ended 3 Months Ended (Sin 000s) March 31,2020 June 30,2020 September 30, 2020 December 31,2020. March 31,202
Slide 35: Non-GAAP Reconciliations - Chemicals Quarterly Adjusted EBITDA
Non-GAAP Reconciliations - Chemicals Quarterly Adjusted EBITDA ($in 0005) Interest Expense Income Tax Expense / (Benefit) Depreciation Amortization ‘Acquisition Costs and Other Proxy Contest Costs and Recoveries Eam-out Adjustments (Gain) Loss in equity securities and other investments ‘Asset Impair
Slide 36: Non-GAAP Reconciliations - Net Leverage Ratio
Non-GAAP Reconciliations - Net Leverage Ratio {in 0003) September 30,2020 December 31,2020 __March 34,2021 June 30,2021 September 30,2021 _December31,2021_ _March 3x, 2022 June 30, 2022 Total Debt 7343 61370 63,767 59.500 48.983 7eag2 71074 68313 Less: Cash & Cash Equivalents 163 236 398 76 1374 207
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