Slide 1: Focused Approach to Delivering Value and Growth
Focused Approach to Delivering Value and Growth 4th Quarter 2023
Slide 2: Westlake is a Compelling Investment Opportunity
Westlake is a Compelling Investment Opportunity Strong and experienced leadership with a proven track record of operating 1 excellence, asset allocation, and successful acquisitions and integrations all driving long-term value creation Capturing margins across the value chain in Performance and Esse
Slide 3: Westlake Overview
Westlake Overview Financial Balance Sheet A leading producer of performance oriented and essential materials as well as North American building products that Performance & Cash Flow benefits from a globally competitive low-cost position $13.0B 0.65x 80+ 15,920 ~17% Sales Net Debt to EBITDA (1) Manuf
Slide 4: Leveraging Market Leading Segments in Attractive Markets
Leveraging Market Leading Segments in Attractive Markets Performance & Housing & Essential Materials Infrastructure Key Stats Key Stats $8.8B 21% 30 $4.2B 23% 50+ EBITDA Production EBITDA Manufacturing Revenue Margin Revenue Margin (LTM 3Q’23) Sites (LTM 3Q’23) Sites (LTM 3Q’23) (LTM 3Q’23) Leadersh
Slide 5: Benefits of a Combined PEM & HIP Portfolio
Benefits of a Combined PEM & HIP Portfolio More Stability in Earnings & Cashflow Vertically • PEM and HIP have different cycles and margin drivers Integrated • HIP provides captive off-take for PEM improving operating rates and domestic sales mix • Vertical integration lowers unit cost production an
Slide 6: High Degree of Product Integration
High Degree of Product Integration Combined With Globally Advantage Low-Cost Position End Market Products that Improve Lives Every Day: North America has a Polyethylene • Flexible packaging long-term cost advantaged • Shrink wrap All ethane Ethylene position through abundant feedstock 2.6B lbs • Tra
Slide 7: Performance & Essential Materials for Everyday Life
Performance & Essential Materials for Everyday Life Product Long-Term Demand Opportunities • PVC is an integral product for a significant number of housing and construction materials PVC • PVC is a superior product over lead, iron and concrete pipe driving material substitution • Growth in consumer
Slide 8: Chlor-Alkali and PVC Benefitting from Compelling Supply & Demand Dynamics
Chlor-Alkali and PVC Benefitting from Compelling Supply & Demand Dynamics 2023 Global Caustic & PVC Capacity Relative Industry Changes in Capacity Compared to World GDP: Both PVC and Chlor-Alkali demand Over/ Under Investment in World Westlake growth is expected to materially exceed supply additions
Slide 9: Westlake's Unique LDPE Focus Provides Advantages
Westlake’s Unique LDPE Focus Provides Advantages Westlake’s PE Capacity Breakout Greater Mix of LDPE Bolsters Margin Advantage Commodity Specialty • Westlake further adds to its advantage from LDPE by producing 80% of it through the even more specialized Autoclave method vs. Tubular LDPE HDPE LLDPE
Slide 10: Penetrating New End-Markets Through Epoxy
Penetrating New End-Markets Through Epoxy Epoxy at a Glance: Epoxy Market Overview Epoxies expand Westlake’s integrated materials business Global Industry Sales into attractive high-growth innovative and sustainability Sales By: oriented end-use products Other Applications & Products Leadership Posi
Slide 11: Closer to Customers with Higher Margin Specialty Focus
Closer to Customers with Higher Margin Specialty Focus Product End-use and Applications Market Position Price Advantage (1) (per pound) Specialty PE • Solar cell encapsulant film Avg. Specialty • Personal care products Leading Producer 16.4¢ Premium PE Over Commodity PE • Sterile medical packaging •
Slide 12: HIP Benefits from Significant Scale and a Long History of Customer Satisfaction
HIP Benefits from Significant Scale and a Long History of Customer Satisfaction Fiscal Year 2022 Revenue ($ in millions) Significant growth since 2016 driven by both organic market growth and $1,100 strategic M&A Prior to 2016 Leader in PVC Pipe $1,300 Acquired Royal Building Products to $1,500 2016
Slide 13: Leveraging Market Leading HIP Portfolio in Attractive Markets
Leveraging Market Leading HIP Portfolio in Attractive Markets Long-term Demand Opportunities • Residential housing growth • Residential housing growth and • U.S. Infrastructure bill spend on power grid • Over a decade of underbuilding in U.S. • PVC replacing iron and concrete pipe for outdoor living
Slide 14: Roofing: Products Play Well to Displacement Opportunities
Products Play Well to Displacement Opportunities Wind Fire Impact Freeze/Thaw Maintenance Color U.S. Total Residential Roofing Market Resistant Resistant Resistant Resistant Free Options 16% 7% Roofing Asphalt 67% ~$15B 10% Natural Slate Natural Shake Asphalt Metal Clay & Concrete Tile Other Accepts
Slide 15: Demographics Support Favorable Long-Term Trends
Demographics Support Favorable Long-Term Trends U.S. Repair and Remodel Expenditures ($B) Annual U.S. Housing Starts (Thousands) U.S. Population Age 35-44 (Thousands) 2,500 50,000 $500 Decade Plus of Underbuilding Supports Favorable Long-Term Fundamentals 2,000 48,000 Peak Household $400 Formation Y
Slide 16: Sustainable Commitments Embedded Across Westlake
Sustainable Commitments Embedded Across Westlake Through Investments, Goals and Products Reducing Scope 1 Expanding Efforts and 2 Emissions Portfolio of Recognized per Tons of Environmentally Through Awards Production by Safe Products and Industry 20% by 20301 Memberships To further reduce our carbo
Slide 17: Westlake's History of Delivering Strong Financial Results
Westlake’s History of Delivering Strong Financial Results Ten Year CAGR Performance (2) Sales EBITDA (1) Free Cash Flow Per Share Higher Sales, Margins and Returns Attributable to: ~15% ~14% ~32% CAGR CAGR $4.2B CAGR $17.75 $15.8B • Focused Bottom Line Growth • Asset Quality • Operating Rate Advanta
Slide 18: Westlake History of Maintaining A Strong Balance Sheet
Westlake History of Maintaining A Strong Balance Sheet Strong Balance Sheet Cash $3,057M Debt maturity life of ~16 years With Significant 0.65x vs. 3.0x Fully Undrawn Revolver $1,500M Availability to Support +99% of debt is fixed rate Future Growth and Total Available Liquidity ~$4,557M Net Debt Pee
Slide 19: Key Takeaways of Westlake's Compelling Story
Key Takeaways of Westlake’s Compelling Story Performance & Essential Materials (PEM) is well positioned to benefit from secular demand driven by 1 increasing product requirements for formulated, differentiated and specialty products in housing, packaging, wind energy, aerospace and automotive Housin
Slide 20: Appendix
Appendix Westlake
Slide 21: Performance & Essential Materials Overview
Performance & Essential Materials Overview Performance vs. Essential Performance $8.8B Chlorovinyls Sales Sales LTM 3Q Materials & Consumer Applications #1 Global Combined Chlorovinyls ~ 40% Revenue (LTM 3Q 2023) 2023 #2 Global Chlor-Alkali #2 Global PVC • Housing, Construction & ~68% PVC #2 Global
Slide 22: PEM has a Long History of Strategic & Profitable Growth
PEM has a Long History of Strategic & Profitable Growth Key Expansion Events 50,000 Performance Essential • Expanded Ethylene Capacity (2013, 2014, 2016, 2017) 40,000 Total Capacity (millions of lbs.) • Expanded PVC Capacity (2013, 2014, 2019, 2020) ~15% 30,000 CAGR • Expanded Chlor-Alkali Capacity
Slide 23: Leading Scale, Vertical Integration with Globally Advantaged Low-Cost Position Drives Chlorovinyl Margin Support
Leading Scale, Vertical Integration with Globally Advantaged Low-Cost Position Drives Chlorovinyl Margin Support Westlake benefits from its globally Overview of the Chlorovinyls Chain competitive cost position and integrated production footprint as the world’s largest chlorovinyls manufacturer Chlor
Slide 24: Housing & Infrastructure Products Overview
Housing & Infrastructure Products Overview Housing N.A. Building Products Sales Breakout $4.2B Sales LTM 3Q Description #1 Premium PVC & Poly-ash Trim #1 Non-wood Shutters 1-step distribution vs. Construction vs. 2-step distribution Remodel Revenue (LTM 3Q 2023) 2023 #3 PVC Siding #3 Premium Siding
Slide 25: Material Factors to Westlake
Material Factors to Westlake We engaged a third-party leading research firm to 1 Process Safety + Emergency Response perform a materiality Materiality Matrix 2 Value Generation + Distribution 5 assessment for Westlake 3 Health + Safety in 2021. The materiality 4 Competitiveness + Reliability assessm
Slide 26: Reducing Our Environmental Impact
Reducing Our Environmental Impact CO2e Emission Rate (ton CO2e per ton production) CO2 reduction 0.6 Scope 2 emissions are progress to date indirect GHG emissions associated with the We are making progress to decrease purchase of electricity, our environmental footprint across steam, heat or cooling
Slide 27: Reconciliation of Westlake EBITDA to Net Income and to Cash Flow from Operating Activities
Reconciliation of Westlake EBITDA to Net Income and to Cash Flow from Operating Activities (in $ millions) LTM 3Q 2023 FY 2022 FY 2021 FY 2020 2023 Q3 2023 Q2 2023 Q1 2022 Q4 2022 Q3 2022 Q2 2022 Q1 2021 Q4 2021 Q3 EBITDA $ 2,816 $ 4,179 $ 3,693 $ 1,247 $ 682 $ 690 $ 825 $ 619 $ 804 $ 1,456 $ 1,301
Slide 28: Safe Harbor Language
Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding future profitable growth in both of our segments, market outlook, margin improvement for all of our products, increased export opportunities, expectations regarding epoxy operating rates