Slide 1: Earnings Presentation 1Q 2024
1 Earnings Presentation 1Q 2024
Slide 2: First Quarter 2024 Highlights
2 First Quarter 2024 Highlights (1) Excludes “Identified Items” consisting of a $475 million non-cash impairment charge and a $150 million ($115 million after tax) charge to fully resolve certain claims (2) Reconciliation of Net Income and Net Income Per Share excl. Identified Items to Net Income an
Slide 3: Westlake Corporation 1Q 2024
3 Westlake Corporation 1Q 2024 Record HIP first quarter EBITDA of $264 million and EBITDA margin of 25% Lower YoY average sales price driven by caustic soda, PVC resin and Epoxy resin due to price reductions that occurred in mid-2023 Slowly improving global macro- economic conditions driving volumes
Slide 4: Housing and Infrastructure Products (HIP) Segment Performance
4 Housing and Infrastructure Products (“HIP”) Segment Performance HIP Segment 1Q 2024 vs. 4Q 2023 Average Sales Price -2.0% Volume +12.3% HIP Segment 1Q 2024 vs. 1Q 2023 Average Sales Price -9.7% Volume +13.5% Record first quarter EBITDA and EBITDA margin driven by solid sales volume growth, lower m
Slide 5: Housing and Infrastructure Products Update
5 Housing and Infrastructure Products Update 2 Longer-term fundamentals for housing strength remain intact due to decade-plus of under- building, increasingly favorable demographics and increasing popularity of remote work 3 Pipe and fittings demand growth remains strong, particularly for large-diam
Slide 6: Leveraging HIP's Leading Positions in Attractive Markets
6 Leveraging HIP’s Leading Positions in Attractive Markets BRAND VALUE Royal Building Products branding drives higher and more stable margins ~80% OF SALES Go through 1 Step distributors who sell to the final customer enhancing margins over other channels to market FLAGSHIP BRANDS US TAM(1) MARKET P
Slide 7: Performance and Essential Materials (PEM) Segment Performance
7 Performance and Essential Materials (“PEM”) Segment Performance (1) Excludes “Identified Items” consisting of a $475 million non-cash impairment charge and a $150 million charge to fully resolve certain claims (2) Reconciliations of PEM EBITDA excl. Identified Items to the applicable GAAP measure
Slide 8: Performance and Essential Materials Update
8 Performance and Essential Materials Update 2 Our North American feedstock advantage expanded in the first quarter of 2024 due to both higher global oil prices and lower U.S. feedstock and power prices 3 Improving global demand across the industrial and manufacturing sector as prices for many of ou
Slide 9: Financial Reconciliations
99 Financial Reconciliations
Slide 10: Consolidated Statements of Operations
10 Consolidated Statements of Operations Performance and Essential Materials Sales $ 1,931 $ 2,349 $ 1,880 Housing and Infrastructure Products Sales 1,044 1,007 946 Net sales 2,975 3,356 2,826 Cost of sales Gross profit Selling, general and administrative expenses Impairment of goodwill and long-liv
Slide 11: Reconciliation of Net Income and Earnings Per Diluted Share excl. Identified Items
11 Reconciliation of Net Income Attributable to Westlake Corporation and Earnings Per Diluted Share to Net Income and Diluted Earnings Per Share excl. Identified Items Net income (loss) $ 185 $ 407 $ (487) Less: Net income attributable to noncontrolling interests Net income (loss) attributable to We
Slide 12: Reconciliation of EBITDA excl. Identified Items
12 Reconciliation of EBITDA excl. Identified Items to EBITDA, Net Income, Income from Operations and Net Cash Provided by Operating Activities Net cash provided by operating activities $ 169 $ 512 $ 573 Changes in operating assets and liabilities and other Deferred income taxes Net income (loss) Les
Slide 13: Reconciliation of PEM EBITDA, HIP EBITDA and Corporate EBITDA to Operating Income
13 Reconciliation of PEM EBITDA excl. Identified Items, HIP EBITDA and Corporate EBITDA to Operating Income (Loss) Three months ended March 31, Three months ended December 31, 2024 2023 2023 Performance and Essential Materials EBITDA excl. Identified Items $ 253 $ 615 $ 201 Less: Impairment Charge -
Slide 14: Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities
14 Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities Net cash provided by operating activities $ 169 $ 512 $ 573 Less: Additions to property, plant and equipment Free Cash Flow $ (103) $ 245 $ 291 272 267 282 (In millions of dollars) Three months ended March 31, Three mon
Slide 15: Safe Harbor Language
15 Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding our cost savings objectives and our ability to maintain synergies, pricing and demand for our products, global macroeconomic conditions, anticipated sales volumes, expectations regard
Slide 16: Westlake
Westlake