Ecovyst Inc. · NYSE:ECVT
Ecovyst — Q4 2021 Earnings Presentation
28 slides from Ecovyst's earnings presentation, Feb 25, 2022
Slide 1: Fourth Quarter 2021
Fourth Quarter 2021 February 25, 2022—11 am ET YOUR CATALYST FOR POSITIVE CHANGE ™
Slide 2: Legal Discussion
Legal Discussion Continuing Operations Financial results for 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 presentat
Slide 3: Key Messages
Key Messages 1 Completed Successful Transformation 2 Launched Ambitious 2025 and 2030 Sustainability Targets 3 Achieved Industry‐Leading Operational and Safety performance 4 Delivered a Strong Finish to the Year; Exceeded 2021 Financial Guidance 5 Expect Strong Momentum to Continue in 2022 FOURTH QU
Slide 4: Delivered Strong Operating and Financial Performance
Delivered Strong Operating and Financial Performance 2021 Key Highlights1 19% 18% 31% Sales Growth Adj. EBITDA Growth Adj. EBITDA vs. 20202 vs. 20202 Margin2 73% #1 or #2 0.11 Cash Supply share position Recordable Conversion3 in >90% of sales Safety Rate 1. See Appendix for Reconciliations of non‐GA
Slide 5: Successful Transformation Complete: Pivoting to Growing + Greening
Successful Transformation Complete: Pivoting to Growing + Greening 2019 – 2021 2022+ Successful Transformation Growing + Greening Delayered organization Market Fundamentals and Drivers Support our Growth Ambition Improved commercial and High single‐digit top line growth plus additional inorgan
Slide 6: An Attractive Growth Platform
An Attractive Growth Platform Driving Customer Solutions in High‐growth, Higher Margin Industry Segments Increase Share in Attractive Growth Industries • Growth above underlying industry growth in polyethylene Example: Above‐Market Silica Catalysts Growth 2017 – 2021 CAGR • Advantaged virgin acid as
Slide 7: Enabling High-Growth, Sustainable Energy Solutions
Enabling High‐Growth, Sustainable Energy Solutions Business Case: Snapshot of Renewable Fuels Opportunity US Renewable Diesel Production Renewable Diesel is a Game Changer Billion gallons per year Proposed or Announced • A low‐carbon intensity transportation fuel produced from biomass, used cooking
Slide 8: Strong Margin and Cash Conversion Profile
Strong Margin and Cash Conversion Profile Pricing power and contractual cost pass through enable stable, high margin performance Serving High‐Growth, High Margin Segments High, Stable Adjusted EBITDA Margins1,2 • Catalyst Technologies is a high‐growth, high margin catalyst business with leading, dif
Slide 9: Driving Meaningful Sustainability Improvement
Driving Meaningful Sustainability Improvement Global Our products Sustainability Trend provide solutions that… …Remove sulfur in diesel Clean Air …Remove NOx from emissions …Create more durable and lighter Plastics weight plastics Circularity …Enable chemical recycle and reuse of plastics …Enable hi
Slide 10: On Pace to Achieve Ambitious 2025 Goals
On Pace to Achieve Ambitious 2025 Goals 90% 35‐ 80% 10‐ 40% 2025 $1b+ Goals 12% Sustainable Cash Innovation Adjusted Conversion3 EBITDA Adjusted Margin2 Total EBITDA Sales1 Growth2 1. Total sales represents Ecovyst, 50% share of Zeolyst Joint Venture, and 10% projected inorganic growth 2. Adjusted E
Slide 11: Robust Demand Recovery
Robust Demand Recovery END USE DEMAND RECOVERY 2021 Demand Trend End Key 2022 Demand Drivers % Total ’21 ’22 Use Products (2022 GDP: Global 4.2%, US 4.1%, EU 3.7%, China 4.3%, APAC 4.8%) Sales vs ’20 vs ‘21 CLEAN FUELS Regen Refinery Utilization >90% in 2022 – Vehicle Miles traveled to ~32% for Fuel
Slide 12: Fourth Quarter and Full-Year 2021 Financial Performance
Fourth Quarter and Full‐Year 2021 Financial Performance
Slide 13: Strong Financial Performance in 2021
Strong Financial Performance in 2021 Fourth Quarter Financial Results Fourth Fourth Quarter Quarter $ % $ % ($ in millions) 2021 2020 Change Change ($ in millions) Change Change Ecovyst Sales 170.2 124.1 46.1 37.1 Sales Change Factors3 Zeolyst JV Sales 36.3 28.9 7.4 25.6 Volume 13.4 10.8 Adjusted EB
Slide 14: High and Growing Profitability
High and Growing Profitability Adjusted EBITDA margins 60bps higher despite 280bps impact from sulfur pass through High margin performance from proven pricing power and contractual cost pass through Positive price‐cost 30.6%1,2 EBITDA Impact 30.0%1,2 ($MM) 1. See Appendix for Reconciliations of non‐
Slide 15: Ecoservices
Ecoservices Fourth Fourth Quarter Quarter $ % $ % ($ in millions) 2021 2020 Change Change ($ in millions) Change Change Sales Sales Change Factors Ecoservices 142.0 103.2 38.8 37.6 Volume 9.9 9.6 Adjusted EBITDA1 52.3 40.7 11.6 28.5 Price 11.4 11.1 Adjusted EBITDA Margin1 (%) 36.8 39.4 (270 bps) Sul
Slide 16: Catalyst Technologies
Catalyst Technologies Fourth Fourth Quarter Quarter $ % $ % ($ in millions) 2021 2020 Change Change ($ in millions) Change Change Silica Catalysts Sales 28.2 20.9 7.3 34.9 Sales Change Factors3 Zeolyst JV Sales 36.3 28.9 7.4 25.7 Volume 3.5 16.7 Adjusted EBITDA1 23.4 14.8 8.6 58.1 Price 3.8 17.9 Adj
Slide 17: 2022 Financial Outlook
2022 Financial Outlook Ecovyst ($ in millions, 2021 2022 except per share) Actual Guidance Sales1 $611 $730 – 750 Sales Growth of ~20% Zeolyst JV Sales $131 $150 – 160 Adjusted EBITDA Growth of ~16% Adjusted EBITDA2 $228 $260 – 270 Adjusted FCF Growth of ~30% Adjusted Free Cash Flow2,3 $93 $115 – 12
Slide 18: Summary
Summary 1 Strong Market Fundamentals Highlight Attractiveness of Portfolio 2 Solid Execution Despite Challenging Environment 3 Expect Momentum to Continue in 2022 4 Reaffirming Growing + Greening Strategy 5 FOURTH QUARTER EARNINGS 2021 / 18
Slide 19: Appendix
APPENDIX
Slide 20: Ecoservices: North American Leader in Sulfuric Acid Recycling and Related Services
Ecoservices: North American Leader in Sulfuric Acid Recycling and Related Services with Key Competitive Position in Gulf Coast and California NEAR‐TERM GROWTH FACTORS • New long‐term large customer contract, existing customer re‐contracting, and favorable alkylate fundamentals expected to drive mid‐
Slide 21: Catalyst Technologies: Global Leader in Tailored Catalyst Solutions
Catalyst Technologies: Global Leader in Tailored Catalyst Solutions NEAR‐TERM GROWTH FACTORS • Preferred technology and increasing product offerings projected to drive high single digit growth in Clean Fuels & Air, Engineered Polymers, and Custom Catalyst • New product launches planned in 2022 suppo
Slide 22: Quarterly Segment Sales, Adjusted EBITDA and Margins
Quarterly Segment Sales, Adjusted EBITDA and Margins Twelve Twelve Months Months Three Months Ended Ended Three Months Ended Ended March 31, June 30, September December December March 31, June 30, September December December ($ in millions, except %) 2021 2021 30, 2021 31, 2021 31, 2021 2020 2020 30
Slide 23: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended December 31, 2021 Twelve Months Ended December 31, 2021 Sales Silica Silica (in $ millions and %) Ecovyst Ecoservices Catalysts Ecovyst Ecoservices Catalysts Sales: $ % $ % $ % $ % $ % $ % Volume 13.4 10.8 9.9 9.6 3.5 16.7 43.2
Slide 24: Reconciliation of Net (Loss) Income to Segment Adjusted EBITDA
Reconciliation of Net (Loss) Income to Segment Adjusted EBITDA Twelve Twelve Months Months Three Months Ended Ended Three Months Ended Ended March 31, 2021 June 30, September December December March 31, June 30, September December December ($ in millions, except %) 2021 30, 2021 31, 2021 31, 2021 20
Slide 25: Historical Reconciliation of Net (Loss) Income to Segment Adjusted EBITDA
Historical Reconciliation of Net (Loss) Income to Segment Adjusted EBITDA Twelve Months Ended Twelve Months Ended December December December December December December ($ in millions, except %) 31, 2018 31, 2019 31, 2020 ($ in millions, except %) 31, 2018 31, 2019 31, 2020 Sales: Reconciliation of n
Slide 26: 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 the Catalyst Technologies segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate sh
Slide 27: Adjusted Free Cash Flow
Adjusted Free Cash Flow ($ in millions) 20211 Cash Flow from Operations before interest and tax 200.7 Less: Cash paid for taxes 11.8 Less: Cash paid for interest2 59.0 Cash Flow from Operations 129.9 Less: Purchases of property, plant and equipment3 91.0 Free Cash Flow 38.9 Plus: Proceeds from sale
Slide 28: Your Catalyst for Positive Change
YOUR CATALYST FOR POSITIVE CHANGE ™