Westlake Corporation · NYSE:WLK
Westlake — Westlake Chemical — Q3 2021 Earnings Presentation
16 slides from Westlake's earnings presentation, Nov 2, 2021
Slide 1: Third Quarter 2021 Earnings Presentation
Third Quarter 2021 Earnings Presentation November 2, 2021
Slide 2: Westlake Chemical Third Quarter 2021 Highlights
Westlake Chemical Third Quarter 2021 Highlights 2 Business Highlights Westlake achieved record quarterly net income of $607 million and record EBITDA of $1.1 billion, anchored by strong margins across our product offerings and generated $755 million in operating cash flows Record quarterly Vinyl
Slide 3: Industry Outlook and Sustainability
Industry Outlook and Sustainability 3 Industry Outlook Globally strong demand for construction materials. Robust demand in U.S. housing and repairs and remodeling activities PVC supply/demand fundamentals remaining strong with the growth in demand higher than the limited supply increases Consu
Slide 4: Third Quarter 2021 Financial Highlights
Westlake Chemical Corporation Third Quarter 2021 Financial Highlights (1) Reconciliations of EBITDA, Vinyls EBITDA, Olefins EBITDA and Corporate EBITDA to the applicable GAAP measures can be found on pages 11 and 12 Third Quarter 2021 vs. Second Quarter 2021 + Higher sales prices for most of our maj
Slide 5: Vinyls Segment Performance
Vinyls Segment Performance 5 Third Quarter 2021 vs. Second Quarter 2021 + Higher sales prices for caustic, PVC and most of our other major products and higher integrated margins from continued tight supply/demand dynamics + Increased earnings in our building products business driven by higher prices
Slide 6: Olefins Segment Performance
Olefins Segment Performance 6 Third Quarter 2021 vs. Second Quarter 2021 + Higher polyethylene sales prices and margins from continuing consumer demand for essential everyday packaging and healthcare products – Impact of Hurricane Ida Third Quarter 2021 vs. Third Quarter 2020 + Significantly higher
Slide 7: Commitment to Corporate Social Responsibility
Westlake’s sustainability report can be found at https://www.westlake.com/sustainability Commitment to Corporate Social Responsibility is Formed by Five Longstanding Core Values 7
Slide 8: Advancing Sustainability
Advancing Sustainability Participating in Multi-Industry Associations for Environmental Protection Westlake is a proud partner with the following organizations to drive sustainable action to eliminate plastic waste, capture more flexible food packaging waste for recycling and support vinyls’ sustain
Slide 9: Financial Reconciliations
EXHIBIT 99.2 Financial Reconciliations
Slide 10: Consolidated Statements of Operations
Consolidated Statements of Operations 10 Three months ended June 30, Three months ended September 30, Nine months ended September 30, 2021 2021 2020 2021 2020 (In millions of dollars, except per share data) Net sales $ 2,859 $ 3,055 $ 1,898 $ 8,271 $ 5,539 Cost of sales 1,987 2,037 1,650 5,872 4,839
Slide 11: Reconciliation of EBITDA to Net Income, Income from Operations and Operating Cash Flow
Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities 11 Three months ended June 30, Three months ended September 30, Nine months ended September 30, 2021 2021 2020 2021 2020 (In millions of dollars) Net cash provided by operating activities $ 6
Slide 12: Reconciliation of Vinyls, Olefins and Corporate EBITDA
Reconciliation of Vinyls, Olefins and Corporate EBITDA to Applicable Operating Income (Loss) 12 Three months ended June 30, Three months ended September 30, Nine months ended September 30, 2021 2021 2020 2021 2020 (In millions of dollars) Vinyls EBITDA $ 605 $ 777 $ 209 $ 1,749 $ 623 Less: Depreciat
Slide 13: Quarterly Industry Pricing
EXHIBIT 99.2 Ie Quarterly Industry Pricing !
Slide 14: Quarterly Industry Pricing Data Notes
1) Industry pricing data was obtained through IHS Markit ("IHS"). We have not independently verified the data. 2) Average Burner Tip contract prices of natural gas over the period. 3) Average Mont Belvieu spot prices of purity ethane over the period. 4) Average Mont Belvieu spot prices of non-TET pr
Slide 15: Safe Harbor Language
Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding PVC, polyethylene, building products and caustic soda pricing and demand, continued recovery in key end markets, our cost control and efficiency efforts, our ability to deliver end-use b
Slide 16: Slide 16