Orion S.a. · NYSE:OEC
Orion — Q1 2025 Earnings Presentation
24 slides from Orion's earnings presentation, May 8, 2025
Slide 1: 1Q 2025 Earnings Conference Call
orion 2025 1Q Earnings Conference Call May 8, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statement This presentation contains and refers to certain forward-looking statements with respect to our financial condition, results of operationsand business, These statements constitute forward-looking statements within the meaning of Section 21£ of the
Slide 3: Greater earnings power obscured
Greater earnings power obscured Broad 1 0) 2025 - Unplanned equipment-related downtime Considerations | Pass-through effects Implied underlying adjusted EBITDA run-rate at least mid-$70M's USTMA U.S.Tire Production Rubber - volumes up, but below 16.000 expectations; Specialty markets - 15.000 — 2019
Slide 4: New Trade Paradigm and Tariff Discussion
New Trade Paradigm and Tariff Discussion New Trade Paradigm Assessment Import market Tariff advantaged US & EU tires oe carbon black End-Product Us carbon black End-Product Export market | Import market Tariff worst case Export market Current targeted automotive tariffs are positive for Orion Less i
Slide 5: Tariffs unveiled early April - larger, broader than contemplated
Tariffs unveiled early April - larger, broader than contemplated, creating uncertainty New Trade Paradigm and Tariff Discussion Rubber segment still assumed to benefit Manageable tariff cost impacts for Orion 25% tariff on auto parts from outside USMCA, including Carbon Black industry dynamics regio
Slide 6: Self Help
Self Help Rubber Contracts: Additional Mandates, Positioned For Upside Cost Reductions Complete >/mplementing additional measures Re po rt Ca rd ° Resolved Operational/Ramp Challenges in China F t l uN Maintenance > Reduce Unplanned Plant Downtime actors In Enhancing Specialty Our Control Mix Uplift
Slide 7: FY 2024 - 2026E Free Cash Flow Focus
FY 2024 - 2026E ($ in millions) Free Cash F | OW Re Ma Ns 20248 2025E 2026E j Nn Fo Cus Adjusted EBITDA $302 —» $270-$310 —> Higher Working Capital, Other (21) 0-10+ NA Cash Interest Exp. (49) (45 - 50) flat 2 0 2 5 F C F Cash Taxes (63) (35 - 40) flat or higher 1 Maintenance Capex (103) (90) (90) U
Slide 8: Key 1Q 2025 Financial Metrics
Key 1Q 2025 Financial Metrics Performance Drivers * Volume gains in lower mix regions, dampening GP/ton metrics * Higher costs from unplanned downtime and unfavorable timing of raw material cost passthroughs, partly offset by 1Q inventory revaluation * Stronger USD against other major currencies esp
Slide 9: Rubber Business Results
Rubber Business Results 1Q Key Performance Drivers + Volume gains from new contractual awards, as well as China operational improvement. + Lower local tire manufacturing remains a demand headwind; Elevated imports persisted +» Cost impacts: Unplanned downtime, pass through timing and fixed cost abso
Slide 10: Specialty Business Results
Specialty Business Results 1Q 2025 Key Performance Drivers * Volumes steady but below expectations in EU, Asia; Overall volumes affected by plant outages in NA * Some evidence of cautiousness from customers in auto value chain * Cost variance YoY benefited from inventory revaluation related to oil p
Slide 11: Modifying 2025 Guidance Ranges
Modifying 2025 Adj ‘d E B ITDA Adjusted EBITDA Revised: $270M - $310M a n d Adj ‘d E Pp S (Reflecting current FX rates) Prior: $290M - $330M Guidance Ranges Revised: $1.20 - $1.70 per share ieljusted Gs Prior: $1.45 per share - $1.90 per share Capital Expenditures ~$150M (prior: $160M) R e aff j r a
Slide 12: Capital Expenditures Declining Over Next Years
Capital Expenditures Declining Over Next 2 years Specialty Conductives Project On Track for Completion late in 2025 Maintenance Capex to Enhance Returns — Reliability, Asset Productivity Sharply Improving Free Cash Flow Revised Capital Spending Outlook ($ in millions) $215 cS $171 $145 $20 $95 $29 $
Slide 13: Summary Takeaways
Summary Takeaways Greater Earnings Power Obscured - Earnings Power Much Higher - Unplanned equipment-related downtime - Commitment to FCF Intact + Pass-through effects q . Higher implied adjusted EBITDA run-rate - New Trade Paradigm Promising FCF Guidance Reaffirmed (20244 2025E (2026E Adjusted EBIT
Slide 14: Appendix
Appendix
Slide 15: Change in Net Debt
Change in Net Debt Sources & Uses Adjusted EBITDA Change in NWC Change in Provision Cash Paid for Interest Cash Income Tax Other Operating Cash Flow Capital Expenditures Repurchase of Common stock/Dividends Other: Primarily FX on Debt (Increase)/Decrease in Net Debt * Net Debt to TTM Adjusted EBITDA
Slide 16: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation Three Months Ended Q1 2025 Q42024 Q1 2024 Net sales 478 434 503 Cost of Sales 380 345 381 Gross Profit 98 89 122 Sales volume (in kmt) 252 28 248 Gross Profit per Metric Ton 390 392 492 Net income (loss) 9 7 27 Income tax expense (benefit) 9 Q) 14 Equity i
Slide 17: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation Reconciliation of FCF and ‘Twelve Months Ended December 31, 2024 2023 2022 Adjusted EBITDA $302 $332 $312 Maintenance & EPA CAPEX (103) (108) (152) Interest payments (49) (39) (34) Cash paid for taxes") (63) (56) (24) Discretionary Cash Flow $66 $254 $145)
Slide 18: Historical Non-GAAP Metrics Reconciliation
$ per share Adjusted diluted EPS Three Months Ended Q1 2025 42024 Q1 2024 Diluted EPS $0.16 $0.30 $0.45 . ° ; | istorl Ca N O n- Long Term Incentive Plan 0.05 0.07 0.06 ° Misappropriation of assets, net = (0.06) = G A A Pp M et r | C S Professional fees related to misappropriation of assets = 0.04 =
Slide 19: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation Adjusted Net Income Three Months Ended Q1.2025 042024 12024 Net income 91 $ 172 § 26.7 ‘add back long-term incentive plan 27 40 35 ‘add back loss due to misappropriation of assets, net = (5) = ‘add back loss due to professional fees related to _ a _ misapp
Slide 20: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation n unless otherwise stated) Capital Employed 2025 2024 2023 2022 2021 2020 Q12025 YTD Q12024YTD Total Assets 1,968.2 18746 18573 1/8334 18887 1,631.0 13898 LESS: Current Liabilities 601.9 4688 5167 4403 5528 “448.7 “3247 Capital Employed 1,366.3 1,405.8 134
Slide 21: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation Net Debt and Debt ratio March 31, 2025 Current portion of long-term debt and other financial liabilities 3130 Long-term debt, net 659.5 Total debt as per Consolidated Balance Sheets 9725 Add: Deferred debt issuance costs- Term loans 28 Less: Cash and cash
Slide 22: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation 02 2022 03 2022 4 2022 Q1 2023 2 2023 03 2023 4 2023 Q1 2024 2.2024 03 2024 4 2024 Q1 2025 Rubbe Specialty Sales Quarterly Sales Quarterly iam’ _tinmiltons) (prote/font “kml” Gnenifons) (roft Ton 1917 59.2 59.7 60.6 191.0 69.6 523 M48 168.4 59.0 467. 37.7
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present certain financial measures that are not prepared in accordance with GAAP or the accounting standards of any other jurisdiction and may not be comparable to other similarly titled measures of other companies. For a reconciliation of these non-GAAP financial meas
Slide 24: Investor Relations Contact Details
Investor Relations Contact Details Chris Kapsch christopher.kapsch@orioncarbons.com
Orion S.A. Common Shares — Q1 2025 Earnings Presentation on 6ix