Ecovyst Inc. · NYSE:ECVT
Ecovyst — PQ Group Holdings — Investor Presentation (May 2020)
24 slides from Ecovyst's investor presentation, May 28, 2020
Slide 1: Investor Presentation May 2020
Exhibit 99.1 INVESTOR PRESENTATION May 2020Exhibit 99.1 INVESTOR PRESENTATION May 2020
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER Forward-Looking Statements Some of the information contained in this presentation constitutes “forward-looking statements”. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects” and si
Slide 3: PQ Corporation Overview
PQ CORPORATION OVERVIEW 2 2019 SALES AND ZEOLYST JV SALES Long History: Founded in 1831 3 SEGMENT SALES o Differentiated Specialty Businesses 25% Performance Chemicals o Innovation Culture 39% Performance Materials Catalysts Refining Services o Sustainable Products 15% 21% o Track Record of Financia
Slide 4: Our Diversified Specialty Businesses
OUR DIVERSIFIED SPECIALTY BUSINESSES REFINING PERFORMANCE PERFORMANCE 1 CATALYSTS SERVICES MATERIALS CHEMICALS COMPETITIVE STRENGTHS o Supplier to largest North o Key supplier for global refineries o Transportation safety lead bead o Strategic global infrastructure America refineries supplier o Lead
Slide 5: Financial Performance in Macroeconomic Cycles
FINANCIAL PERFORMANCE IN MACROECONOMIC CYCLES 1,2,3 Adjusted EBITDA and Adjusted EBITDA Margin (%) ($ in millions except %) (1) Adjusted EBITDA for the period from 2005 to 2014 represents Legacy Eco Adjusted EBITDA and Legacy PQ Adjusted EBITDA prior to the Business Combination. Adjusted EBITDA for
Slide 6: COVID-19 Near Term Business Trends
COVID-19 NEAR TERM BUSINESS TRENDS KEY BUSINESS DRIVERS BUSINESS SEGMENT 2020 TRENDS 1 Refining Services Sulfuric acid regeneration materially impacted due to lower refinery rates on high gasoline inventories driven by significant decline in gasoline demand due to government 43% “stay home” mandates
Slide 7: 2020 Outlook and Decisive Actions
2020 OUTLOOK AND DECISIVE ACTIONS Rapid COVID-19 response o Ensured health and safety of our employees o Maintained operations with minor disruptions o Adapted to customer demand o Refinanced debt at lower costs with extended maturities Q1 2020 Results 2020 Outlook Additional Actions Second Quarter:
Slide 8: Debt Maturities, Adjusted Free Cash Flow, Net Debt/Adjusted EBITDA
DEBT MATURITIES ADJUSTED FREE CASH FLOW NET DEBT / ADJUSTED EBITDA 166 ($ in millions) 4.9x 4.5x 134 3.9x 25 2017 2018 2019 2017 2018 2019 1 1 DEBT SCHEDULE FINANCIAL FLEXIBILITY ($ in millions) o Cash on hand of $108 million with 1,000.0 $236 million available liquidity at 800.0 quarter end 600.0 9
Slide 9: Ongoing Portfolio Optimization Strategy
ONGOING PORTFOLIO OPTIMIZATION STRATEGY 2018 – 2019 2020 Assessing opportunities to optimize overall portfolio Monetizing non-core assets within each business at value o Performance Materials asset swap o Sale of o Completed Performance o Refining Services non-core asset sale non-core Chemicals o Co
Slide 10: Why PQ's Specialty Chemical Portfolio?
WHY PQ’s SPECIALTY CHEMICAL PORTFOLIO? #1 and #2 positions in nearly all product lines Sustainable growth from diverse underlying secular macro trends Strategic and extensive global manufacturing network Input cost small as percentage of customer total product cost Track record of innovation and cus
Slide 11: Supplemental Information
SUPPLEMENTAL INFORMATION 11SUPPLEMENTAL INFORMATION 11
Slide 12: PQ's Products for a Sustainable Future
PQ’s PRODUCTS FOR A SUSTAINABLE FUTURE 1 Inorganic Materials Drive ~ 75% of our Sales REFINING SERVICES CATALYSTS Largest North America recycler of spent sulfuric Remove sulfur from diesel fuel for landand acid, avoiding 1.5 million tons of landfill or deep marine transportation well disposal annual
Slide 13: Performance Chemicals Transformation
PERFORMANCE CHEMICALS TRANSFORMATION MANUFACTURING NETWORK EXCELLENCE: OPTIMIZATION: EXPECTED Accelerate productivity Align footprint with DRIVERS: BENEFIT: and throughput growth opportunities Commercial $10 million to $15 effectiveness million Adjusted EBITDA on ENHANCE Productivity and annualized
Slide 14: Adjusted Free Cash Flow
ADJUSTED FREE CASH FLOW Full Year Full Year Full Year ($ in millions) 2019 2018 2017 Cash Flow from Operations before interest 401.9 377.5 364.5 and tax Less: Cash paid for taxes 17.4 23.8 29.2 1 Cash paid for interest 116.8 105.1 170.1 Cash Flow from Operations 267.7 248.6 165.2 Less: Purchases of
Slide 15: Quarterly Segment Sales, Adjusted EBITDA and Margins
QUARTERLY SEGMENT SALES, ADJUSTED EBITDA AND MARGINS Three Months For the Quarter Ended Ended Three Months Ended Year Ended Year Ended Year Ended December 31, March 31, March 31, June 30, September 30, December 31, December 31, December 31, ($ in millions except %, unaudited) 2020 2019 2019 2019 201
Slide 16: Reconciliation of Net Income to Segment Adjusted EBITDA
RECONCILATION OF NET INCOME TO SEGMENT ADJUSTED EBITDA Three Months Ended Three Months Ended Year Ended Year Ended Year Ended March 31, March 31, June 30, September 30, December 31, December 31, December 31, December 31, ($ in millions) 2020 2019 2019 2019 2019 2019 2018 2017 Reconciliation of net i
Slide 17: Reconciliation of Quarterly Net Income to Adjusted Net Income and EPS
RECONCILATION OF QUARTERLY NET INCOME TO ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE Three Months Ended Three Months Ended Year Ended Year Ended March 31, March 31, June 30, September 30, December 31, December 31, ($ in millions except share and per share data) 2020 2019 2019 2019 De
Slide 18: Reconciliation of Sales and Adjusted EBITDA
RECONCILIATION OF SALES AND ADJUSTED EBITDA Year Ended December 31, 2015 2016 Pro Pro 3 3 ($ in millions) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 forma forma 2017 2018 2019 Reconciliation of sales and adjusted EBITDA 1 Legacy PQ Sales 635.3 708.6 775.0 977.0 1,009.9 1,087.9 1,115.0 1,084.8
Slide 19: Reconciliations for Adjusted EBITDA Years 2005-2014 Legacy PQ
RECONCILIATIONS FOR ADJUSTED EBITDA 1 Years 2005 – 2014 Legacy PQ Net Income (Loss) to Adjusted EBITDA Year Ended December 31, ($ in millions) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Reconciliation of net income (loss) attributable to Legacy PQ to Adjusted EBITDA Net income (loss) attribut
Slide 20: Reconciliations for Adjusted EBITDA 2005-2014 Legacy Eco Services
RECONCILIATIONS FOR ADJUSTED EBITDA 1 2005 – 2014 Legacy Eco Services Net Income (Loss) to Adjusted EBITDA Reconciliation Year Ended December 31, 2014 2014 ($ in millions) 2005 2006 2007 2008 2009 2010 2011 2012 2013 Successor Predecessor Reconciliation of net income (loss) attributable to Legacy Ec
Slide 21: Reconciliations for Adjusted EBITDA Years 2015-2019
RECONCILIATIONS FOR ADJUSTED EBITDA Years 2015 – 2019 Post-Business Combination PQ Net Income (Loss) to Adjusted EBITDA Year Ended December 31, 2015 2016 1 1 ($ in millions) Pro forma Pro forma 2017 2018 2019 Reconciliation of net income (loss) attributable to PQ Group Holdings Inc. to Adjusted EBIT
Slide 22: Constant Currency Sales and Adjusted EBITDA
CONSTANT CURRENCY SALES AND ADJUSTED EBITDA Three Months Ended March 31, Three Months Ended 2019 March 31, 2020 Constant ($ in millions except %, Currency % Constant unaudited) As Reported FX Impact As Reported Change Currency Sales: $ $ $ $ % Refining Services 100.7 — 100.7 105.8 (4.8) Silica Catal
Slide 23: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Descriptions to PQ Non-GAAP Reconciliations a) We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because our Catalysts segment includes our 50% interest in the Zeolyst Joint venture, we include an adjustment for our 50% p
Slide 24: Shaping our path for a sustainable future
Shaping > our path fora sustainable future te) PQ Corporation