Slide 1: First Quarter 2023
First Quarter 2023 May 4, 2023 —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 Continued
Legal Discussion Continued 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 est
Slide 4: Key Messages
Key Messages Demand fundamentals remained positive across the majority of end uses we 1 serve As anticipated, first quarter 2023 financial results reflect the adverse impact 2 of Winter Storm Elliott, costs associated with planned turnaround activity, and timing of hydrocracking catalyst sales 3 Ben
Slide 5: Q1 2023 Key Highlights
Key Highlights Q1 2023 Key Highlights $183 Mln $43 Mln 75% Sales Adj. EBITDA Cash Q1 20231 Q1 20231,2 Conversion2,3,4 3.2x #1 or #2 $119 Mln Net Debt Leverage Supply Share Position Liquidity6 Ratio2,5 1. Sales change percentage includes proportionate 50% share of sales from Zeolyst Joint Venture, al
Slide 6: Demand Trends and Drivers
Demand Trends and Drivers 2022 Demand Trend Industry End Key Q1’23 Q2’23E Total Growth 2023 Anticipated Demand Drivers Use Products Vs Q4’23 vs Q1’23 Sales1 Rate YTD Gasoline demand surpasses 2022 levels, Q1 Regeneration TREATMENT growth at 3% YoY; Refiners importing Alkylate to meet SERVICES REGEN
Slide 7: Expanding our Focus on Sustainability
Expanding our Focus on Sustainability Sustainability Leadership Award Program – Launched program to drive sustainability improvements in product development, internal processes and social impact areas • Climate Change - Baton Rouge Furnace Optimization Project providing for significant reduction in
Slide 8: First Quarter 2023 Financial Performance
First Quarter 2023 Financial Performance
Slide 9: Financial Performance – Q1 2023
Financial Performance – Q1 2023 First Quarter Financial Results First First Quarter Quarter $ % ($ in millions) 2023 2022 Change Change Ecovyst Sales 160.9 179.7 (18.8) (10.5) Zeolyst JV Sales 22.1 29.0 (6.9) (23.8) Adjusted EBITDA1 42.9 59.2 (16.3) (27.5) Adjusted EBITDA Margin1,2 (%) 23.4 28.4 (50
Slide 10: Adjusted EBITDA Bridge – Q1 2023
Adjusted EBITDA Bridge – Q1 2023 Ecoservices volume impacted by Winter Storm Elliott and extended maintenance turnaround activity. Catalyst Technologies volume impacted by order timing Both businesses have continued strong pricing Positive price-cost Adjusted EBITDA Impact 28.4%1,2 ($MM) 23.4%1,2 1.
Slide 11: Ecoservices – Q1 2023 Financial Performance
Ecoservices – Q1 2023 Financial Performance First First Quarter Quarter $ % ($ in millions) 2023 2022 Change Change Ecoservices Sales 137.8 154.0 (16.2) (10.5) Adjusted EBITDA1 36.8 49.3 (12.5) (25.4) Adjusted EBITDA Margin1 (%) 26.7 32.0 Ecoservices Highlights • First quarter sales reflect lower sa
Slide 12: Catalyst Technologies – Q1 2023 Financial Performance
Catalyst Technologies – Q1 2023 Financial Performance First First Quarter Quarter $ % ($ in millions) 2023 2022 Change Change Silica Catalysts Sales 23.1 25.7 (2.6) (10.1) Zeolyst JV Sales 22.1 29.0 (6.9) (23.8) Adjusted EBITDA1 13.0 17.0 (4.0) (23.5) Adjusted EBITDA Margin1,2 (%) 28.8 31.1 Catalyst
Slide 13: Cash, Leverage & Liquidity
Cash, Leverage & Liquidity Strong Cash Conversion Provides for Capital Allocation Flexibility and Improving Leverage Profile ($ millions) Cash Conversion1 Net Leverage Ratio2 Liquidity3 $137 mm of share $30 mm of share repurchases repurchases 79% 3.1x 3.2x 71% 72% 71% 75% 2.8x 2.8x 2.8x $236 $207 $1
Slide 14: Balanced Capital Allocation Strategy to Support Growth Initiatives and Drive Shareholder Return
Balanced Capital Allocation Strategy to Support Growth Initiatives and Drive Shareholder Return Strong free cash flow generation provides financial flexibility and supports a balanced capital allocation strategy focused on: Cash Flow from Operations • Operational improvements & organic growth Less:
Slide 15: Ecovyst 2023 Outlook
Ecovyst 2023 Outlook Ecovyst Q4 2022 Q1 2023 ($ in millions, 2022 Prior Updated except per share) Actual Guidance Outlook Sales1 $820 $760 -$790 $730 -$760 Zeolyst JV Sales $133 $145 – $155 $145 – $155 Adjusted EBITDA Growth of 6% Adjusted EBITDA2 $277 $285 – $300 $285 – $300 In 2023 from 2022 Assum
Slide 16: Summary
Summary 1 Demand outlook remains positive Believe portfolio remains well-positioned to serve growing needs for 2 sustainable products and low carbon technologies 3 Maintaining 2023 guidance for Adjusted EBITDA and Adjusted Free Cash Flow 4 Expect strong cash generation to support capital allocation
Slide 17: Appendix
APPENDIX
Slide 18: Annual Segment Sales, Adjusted EBITDA and Margins
Annual Segment Sales, Adjusted EBITDA and Margins Trailing Twelve Months Ended Year Ended December 31, ($ in millions, except %) 3/31/2023 2022 2021 2020 2019 Sales: Ecoservices 686.3 702.5 500.5 401.9 447.1 Silica Catalysts 115.4 117.7 110.7 94.0 85.7 Total sales 801.7 820.2 611.2 495.9 532.8 Zeoly
Slide 19: Ecoservices: North American Leader in Sulfuric Acid Recycling and Related Services
Ecoservices: North American Leader in Sulfuric Acid Recycling and Related Services with Key Competitive Position in Gulf Coast and California ANTICIPATED NEAR-TERM GROWTH FACTORS • Existing customer re-contracting, and favorable alkylate fundamentals expected to drive growth for regeneration service
Slide 20: Catalyst Technologies: Global Leader in Tailored Catalyst Solutions
Catalyst Technologies: Global Leader in Tailored Catalyst Solutions ANTICIPATED NEAR-TERM 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 fuels •
Slide 21: Quarterly Segment Sales, Adjusted EBITDA and Margins
Quarterly Segment Sales, Adjusted EBITDA and Margins Three Months Ended Three Months Ended ($ in millions, except %) March 31, 2023 March 31, 2022 Sales: Ecoservices 137.8 154.0 Silica Catalysts 23.1 25.7 Total sales 160.9 179.7 Zeolyst Joint Venture sales 22.1 29.0 Adjusted EBITDA: Ecoservices 36.8
Slide 22: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended March 31, 2023 Sales Silica (in $ millions and %) Ecovyst Ecoservices Catalysts Sales: $ % $ % $ % Volume (30.0) (16.7) (26.4) (17.1) (3.6) (14.0) Price/Mix 12.1 6.7 10.2 6.6 1.9 7.4 Currency (0.9) (0.5) — — (0.9) (3.5) Sales Ch
Slide 23: Reconciliation of Net (Loss) Income to Adjusted EBITDA
Reconciliation of Net (Loss) Income to Adjusted EBITDA Three Months Ended LTM Year Ended March 31, March 31, December December December December 31, ($ in millions, except %) 2023 2023 31, 2022 31, 2021 31, 2020 2019 Reconciliation of net (loss) income to Adjusted EBITDA Net (loss) income (1.5) 60.4
Slide 24: Reconciliation of Net (Loss) Income to Adjusted EBITDA
Reconciliation of Net (Loss) Income to Adjusted EBITDA Three Months Twelve Months Ended LTM Three Months Ended Ended March 31, March 31, March 31, June 30, September December December 31, ($ in millions, except %) 2023 2023 2022 2022 30, 2022 31, 2022 2022 Reconciliation of net (loss) income to Adju
Slide 25: 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 Catalyst Techologies segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate sha
Slide 26: Adjusted Free Cash Flow
Adjusted Free Cash Flow Full Year Three months ended ($ in millions) 20221 March 31, 2023 Cash flow from Operations before interest and tax 247.5 19.4 Less: Cash paid for taxes 25.6 0.1 Less: Cash paid for interest2 35.4 15.2 Cash Flow from Operations 186.6 4.1 Less: Purchases of property, plant and
Slide 27: Cash Conversion, Liquidity, Leverage
Cash Conversion, Liquidity, Leverage Cash Conversion TTM ($ in millions, except %) 2019 2020 2021 2022 Q1 2023 Adjusted EBITDA 240.1 192.6 227.6 276.8 260.5 Less: Capex1 70.3 54.5 66.4 59.5 64.7 Cash Conversion 169.9 138.1 161.2 217.5 195.8 Cash Conversion %2 71% 72% 71% 79% 75% Liquidity Q1 Q2 Q3 Q
Slide 28: Accelerating the transition to a sustainability-driven future
Accelerating the transition to a sustainability-driven future YOUR CATALYST FOR POSITIVE CHANGE ™