Slide 1: Third Quarter 2023
Third Quarter 2023 November 2, 2023 —11 a.m. ET YOUR CATALYST FOR POSITIVE CHANGE™
Slide 2: Legal Discussion
Legal Discussion Continuing Operations Financial results 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 presentation,
Slide 3: Legal Discussion: Supply Share and Industry Information
Legal Discussion Supply Share and Industry Information Certain statistical information used in this presentation is based on independent industry publications, reports by research firms or other published independent sources. Some statistical information is also based on our good faith estimates whi
Slide 4: Key Messages
Key Messages Third quarter results reflect stable demand across the majority of Ecovyst's 1 end use exposures, with lower sales into Nylon and Polyethylene end uses, as anticipated High refinery utilization continued to support regeneration services activity 2 for Ecoservices, while Catalyst Technol
Slide 5: Q3 2023 Key Highlights
Key Highlights Q3 2023 Key Highlights $210 Mln $68 Mln 32% Sales Adj. EBITDA Adj. EBITDA Margin Q3 20231 Q3 20232 Q3 2023 2,3 3.2x 72% $109 Mln Net Debt Leverage Cash Liquidity6 Ratio2,5 Conversion2,4 1. Sales includes proportionate 50% share of sales from the Zeolyst Joint Venture, although such sa
Slide 6: Demand Trends and Drivers
Demand Trends and Drivers Sources: EIA, S&P, LMC, Global Data, CMA, Bloomberg, Management Estimates 1. Includes sales attributable to 50% ownership in the Zeolyst Joint Venture THIRD QUARTER EARNINGS 2023 / 6
Slide 7: Third Quarter 2023 Financial Performance
Third Quarter 2023 Financial Performance
Slide 8: Financial Performance - Q3 2023
Financial Performance - Q3 2023 Third Quarter Financial Results Third Third Quarter Quarter $ % ($ in millions) 2023 2022 Change Change Ecovyst Sales 173.3 232.5 (59.2) (25.5) Zeolyst JV Sales 37.0 27.8 9.2 33.1 Adjusted EBITDA1 67.9 75.4 (7.5) (9.9) Adjusted EBITDA Margin1,2 (%) 32.3 29.0 330 bps $
Slide 9: Adjusted EBITDA Bridge - Q3 2023
Adjusted EBITDA Bridge - Q3 2023 Continued strong pricing offset by lower volumes and higher variable costs 29.0%1,2 32.3%1,2 1. See Appendix for Reconciliations of non-GAAP measures 2. Adjusted EBITDA margin calculation includes proportionate 50% share of sales from the Zeolyst THIRD QUARTER EARNIN
Slide 10: Ecoservices - Q3 2023 Financial Performance
Ecoservices - Q3 2023 Financial Performance Third Third Quarter Quarter $ % ($ in millions) 2023 2022 Change Change Ecoservices Sales 147.6 195.7 (48.1) (24.6) Adjusted EBITDA1 54.7 64.1 (9.4) (14.7) Adjusted EBITDA Margin1 (%) 37.1 32.8 430 bps Ecoservices Highlights • Third quarter sales reflect l
Slide 11: Catalyst Technologies - Q3 2023 Financial Performance
Catalyst Technologies - Q3 2023 Financial Performance Third Third Quarter Quarter $ % ($ in millions) 2023 2022 Change Change Silica Catalysts Sales 25.7 36.8 (11.1) (30.2) Zeolyst JV Sales 37.0 27.8 9.2 33.1 Adjusted EBITDA1 16.4 19.3 (2.9) (15.0) Adjusted EBITDA Margin1,2 (%) 26.2 29.9 (370) bps C
Slide 12: Cash & Leverage
Cash & Leverage Strong Cash Conversion Provides for Capital Allocation Flexibility 1 Cash Conversion Net Debt Leverage Ratio2 $79 mm of share $137 mm of share repurchases repurchases 79% 3.2x 3.2x 3.2x 71% 72% 71% 72% 2.8x 2.8x 2019 2020 2021 2022 TTM Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'23 Cash Generat
Slide 13: Ecovyst 2023 Outlook
Ecovyst 2023 Outlook Ecovyst Q2 2023 Q3 2023 ($ in millions, 2022 Prior Updated except per share) Actual Guidance Outlook Sales1 $820 $685 - $715 $675 - $705 Zeolyst JV Sales $133 $155 - $165 $150 - $160 Adjusted EBITDA2 $277 $260 - $275 Approx $260 Adjusted Free Cash Flow2 $146 $100 - $115 $70 - $8
Slide 14: Summary
Summary 1 Outlook for regeneration services remains positive, continue to expect strong sales of hydrocracking catalysts in Q4 With weaker demand anticipated in nylon and polyethylene end uses 2 through the balance of 2023, expect to be at the lower end of Adjusted EBITDA guidance range 3 Cash gener
Slide 15: Appendix
APPENDIX
Slide 16: Annual Segment Sales, Adjusted EBITDA and Margins
Annual Segment Sales, Adjusted EBITDA and Margins Trailing Twelve Months Ended Year Ended December 31, September 30, ($ in millions, except %) 2023 2022 2021 2020 2019 Sales: Ecoservices 603.3 702.5 500.5 401.9 447.1 Silica Catalysts 97.8 117.7 110.7 94.0 85.7 Total sales 701.1 820.2 611.2 495.9 532
Slide 17: Ecoservices: North American Leader in Sulfuric Acid Recycling
Ecoservices: North American Leader in Sulfuric Acid Recycling and Related Services with Key Competitive Position in Gulf Coast and California ANTICIPATED FUTURE GROWTH FACTORS • Existing customer re-contracting, and favorable alkylate fundamentals expected to drive growth for regeneration services •
Slide 18: Catalyst Technologies: Global Leader in Tailored Catalyst Solutions
Catalyst Technologies: Global Leader in Tailored Catalyst Solutions ANTICIPATED FUTURE GROWTH FACTORS • Preferred technology and increasing product offerings for strengthening & light weighting of materials projected to drive growth in polyethylene catalysts • Growing demand for renewable fuels • In
Slide 19: Quarterly Segment Sales, Adjusted EBITDA and Margins
Quarterly Segment Sales, Adjusted EBITDA and Margins Nine Months Nine Months Three Months Ended Ended Three Months Ended Ended March 31, June 30, September 30, September 30, March 31, June 30, September 30, September 30, ($ in millions, except %) 2023 2023 2023 2023 2022 2022 2022 2022 Sales: Ecoser
Slide 20: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Sales Silica Silica (in $ millions and %) Ecovyst Ecoservices Catalysts Ecovyst Ecoservices Catalysts Sales: $ % $ % $ % $ % $ % $ % Volume (22.6) (9.7) (9.3) (4.8) (13.3)
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended LTM Year Ended September 30, September 30, December 31, December 31, December 31, December 31, ($ in millions, except %) 2023 2023 2022 2021 2020 2019 Reconciliation of net income to Adjusted EBITDA Net income 16.6 62.7 69.8 1.8 54.3
Slide 22: Reconciliation of Net (Loss) Income to Adjusted EBITDA
Reconciliation of Net (Loss) Income to Adjusted EBITDA Twelve Months Three Months Ended LTM Three Months Ended Ended March 31, June 30, September September March 31, June 30, September 30, December 31, December 31, ($ in millions, except %) 2023 2023 30, 2023 30, 2023 2022 2022 2022 2022 2022 Reconc
Slide 23: 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 our Catalyst Technologies segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate s
Slide 24: Adjusted Free Cash Flow
Adjusted Free Cash Flow Full Year Nine months ended ($ in millions) 20221 September 30, 2023 Net cash provided by operating activities 186.6 73.4 2 Less: Purchases of property, plant and equipment 58.9 53.6 Free cash flow 127.7 19.8 Plus: Cash paid for costs related to segment disposals 18.1 — Adjus
Slide 25: Cash Conversion & Leverage
Cash Conversion & Leverage Cash Conversion TTM ($ in millions, except %) 2019 2020 2021 2022 Q3 2023 Adjusted EBITDA 240.1 192.6 227.6 276.8 259.3 1 Less: Capex 70.3 54.5 66.4 59.5 73.0 Cash Conversion 169.9 138.1 161.2 217.5 186.3 Cash Conversion %2 71% 72% 71% 79% 72% Leverage Ratio ($ in millions
Slide 26: Accelerating the transition to a sustainability-driven future
Accelerating the transition to a sustainability-driven future YOUR CATALYST FOR POSITIVE CHANGE™