Lsb Industries, Inc. · NYSE:LXU

Lsb Industries — Q1 2023 Earnings Presentation

12 slides from Lsb Industries's earnings presentation, May 3, 2023

  1. Slide 1: Q1 2023 Earnings Presentation

    Q1 2023 EARNINGS PRESENTATION MAY 3, 2023

  2. Slide 2: Forward-looking statements

    Forward‐looking statements  Statements in this presentation that are not historical are forward‐looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward‐looking statements, which are subject to known and unknown risks, uncertainties and assum

  3. Slide 3: Q1'23 Overview – Healthy Volume Increase Offset by Lower Prices

    Q1’23 Overview – Healthy Volume Increase Offset by Lower Prices Q1’23 Q1’22  Strong safety performance with no recordable incidents in Q1’23 and TRIR of <1 for TTM 3/31/23 Net Sales $181 M $199 M  Sales volume increased by 6% as a result of strong Adjusted EBITDA1 $51 M $101 M plant operations and

  4. Slide 4: Market overview

    Market overview (1) 10‐Year Corn Price $8  Corn price remains well above 10‐year average level $6  Drought conditions in South America and some regions of $4 the U.S. impacted corn supply $2  US stock‐to‐usage of <10% below 10‐year average $0 Apr‐13 Apr‐14 Apr‐15 Apr‐16 Apr‐17 Apr‐18 Apr‐19 Apr‐2

  5. Slide 5: Solid balance sheet and cash flow

    Solid balance sheet and cash flow 3/31/23 3/31/22 Cash & ST Inv. $426 M $344 M  Year‐over‐year increase of $82 million in cash Net Debt1/ TTM and short‐term investments Adj. EBITDA 0.78X 1.36X  Net debt/TTM Adjusted EBITDA of <1X; well Op. Cash Flow $59 M $85 M below 2.5X target level CAPEX  Cont

  6. Slide 6: First quarter – 2023 vs. 2022

    First quarter – 2023 vs. 2022 $ in millions $101 Includes winter freeze impact on Cherokee $24 $51 ($11) ($63) (1) (2) (1) Selling prices includes approximately $12 million impact of higher natural gas costs and $1 million benefit from lower sulfur raw material costs (2) Primarily related to higher

  7. Slide 7: Global energy price spreads

    Global energy price spreads (1) International Natural Gas Benchmarks ‐ Front Month ($/MMBtu) $110 U.S. Henry Hub Dutch Transfer Title Facility (TTF) U.K. National Balancing Point (NBP) Japan/Korea Marker (JKM) $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 (1) Source: Gelber & Associates 7

  8. Slide 8: Key growth initiatives

    Key growth ini a ves Achieving a culture Advancing low CO2 & clean Pursue accretive Pursue organic growth of excellence energy strategy acquisi ons  Advancing our safety and  Capacity expansion through  Blue Ammonia project to  Geographic expansion environmental ini a ves debottlenecking of exis

  9. Slide 9: Low carbon ammonia projects update

    Low carbon ammonia projects update Blue Ammonia Project Green Ammonia Project  May 2022 agreements with Bloom Energy and thyssenkrupp Uhde to  April 2022 agreement with Lapis Energy to develop a CO2 capture and develop a project to produce zero‐carbon or “green” ammonia at Pryor sequestra on (CCS)

  10. Slide 10: Appendix

    Appendix

  11. Slide 11: Adjusted EBITDA reconciliation

    Adjusted EBITDA reconciliation Three Months Ended LSB Consolidated ($ In Thousands) March 31, 2023 2022 Net income $ 15,901 $ 58,766 Plus: Interest expense and interest income, net 8,731 9,955 Net loss on extinguishments of debt — 113 Depreciation and amortization 17,604 17,507 Provision for income

  12. Slide 12: Adjusted EPS reconciliation

    Adjusted EPS reconciliation Three Months Ended March 31, 2023 2022 Numerator: Net income $ 15,901 $ 58,766 Adjustments: Stock‐based compensation 719 803 Legal fees (Leidos) 273 342 Loss (gain) on disposal of assets 1,890 (46) Turnaround costs (6) 2,531 Net income, excluding adjustments $ 18,777 $ 62

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