Slide 1: 2Q 2022 Earnings Presentation
2Q 2022 Earnings Presentation August 5, 2022
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or
Slide 3: Overview
Overview Business Model and Diverse Portfolio Support Robust Performance ✓ Robust quarterly sales, earnings and cash flow in 2Q22 2Q22 Sales up YoY – Sales of $584M, net income of $65M and cash flow from operations of $96M +33% ✓ Targeting significant earnings growth in 2022 supported by strength of
Slide 4: 2Q 2022 Financial Summary
2Q 2022 Financial Summary Commercial Execution Supports Strong Sales, Earnings and Cash Flow ($M, except per share amounts) Sales Adjusted EBITDA Highlights +33% +32% • Sales: Price +32%, M&A +5%, Volume (4%) – Market-Based Pricing +26% – Raw Material Pass Through +6% $584 $105 $438 $80 • EBITDA inc
Slide 5: 2Q 2022 Adjusted EBITDA Bridge
2Q 2022 Adjusted EBITDA Bridge Strong Commercial Performance More Than Offset Inflation and Volume ($M) Driving value through strong commercial excellence $3 ($23) $57 • Increased plant spend ($12) primarily driven by utilities due to higher • Lower sales volume natural gas prices partially offset b
Slide 6: 2Q 2022 Cash Flow Generation and Use
2Q 2022 Cash Flow Generation and Use Healthy Cash Flow Performance Reflects Quality of Earnings Strong Cash Flow Generation ($M) Enhanced Capital Allocation Strategy ($M) 2Q22 $180 $150 Net Income $65 $120 97 Depreciation & Amortization $18 $90 $60 10 Accounts Receivable ($24) 4 7 83 10 $30 57 Accou
Slide 7: Industry Pricing And Spreads
Industry Pricing And Spreads Nylon Ammonium Sulfate Chemical Intermediates Tight North America Supply and Demand Strong Ag Fundamentals Driving Nutrient Values Continued Balancing of Acetone Supply and Demand 1600 4000 2000 120 (cents per ($/MT) $/ston N pound) content basis 3600 1800 100 1200 3200
Slide 8: 2022 Considerations
2022 Considerations Continued Momentum in 2022 • Targeting significant earnings growth in 2022 supported by strength of our integrated business model and diverse end market exposure • Expect continued healthy North America demand for nylon and chemical intermediates • Expect favorable underlying agr
Slide 9: Well Positioned To Deliver Attractive Returns Over Long-Term
Well Positioned To Deliver Attractive Returns Over Long-Term • Integrated, efficient and low-cost business model supported by unique combination of assets Advantaged Asset Base • Security of raw material supply strengthened through contracts with long-term qualified suppliers • Industry marginal pro
Slide 10: Appendix
APPENDIX 10 2Q 2022 Earnings Presentation – August 5, 2022
Slide 11: Planned Plant Turnarounds
Planned Plant Turnarounds Pre-Tax Income Impact by Quarter (1) 1Q 2Q 3Q 4Q FY • Timing driven by compliance, inspection and sustaining asset base 2017 -- ~$10M ~$4M ~$20M ~$34M • Critical to supporting high utilization rates 2018 ~$2M ~$10M ~$30M -- ~$42M • Dedicated teams to improve effectiveness 2
Slide 12: Reconciliation of Non-GAAP Measures to GAAP Measures
APPENDIX Reconciliation of Non-GAAP Measures to GAAP Measures 12 2Q 2022 Earnings Presentation – August 5, 2022
Slide 13: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (in $ thousands) (1) Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment The Company believes that this metric is useful to investor
Slide 14: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in $ thousands) (2) EBITDA margin is defined as EBITDA divided by Sales The Company believes the non-GAAP financial measures included in this presentation provide meaningful supplemental information as they are used by the Company’s management to eval
Slide 15: Reconciliation of Earnings Per Share to Adjusted Earnings Per Share
Reconciliation of Earnings Per Share to Adjusted Earnings Per Share (in $ thousands except share and per share amounts) The Company believes the non-GAAP financial measures included in this presentation provide meaningful supplemental information as they are used by the Company’s management to evalu