Slide 1: 3Q 2024 Earnings Presentation
November 1, 2024 3Q 2024 Earnings Presentation
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 Diverse Product Portfolio Supports Strong 3Q24 Performance, Favorable Market Outlook 3Q24 Sales ✓ Delivered top and bottom-line growth as well as continued cash flow improvement – 3Q24 Net Income of $22M, Cash Flow from Operations of $57M $398M – 23% improvement in sales reflecting higher v
Slide 4: 3Q 2024 Financial Summary
3Q 2024 Financial Summary Year-Over-Year Improvement in Sales, Earnings, Margin and Cash Flow ($M, except per share amounts) Sales Adjusted EBITDA Adjusted Diluted EPS Free Cash Flow +23% +$46M +$1.24 +$31M $398 $53 $0.88 $27 $323 $7 ($0.36) ($4) 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 Planned Turna
Slide 5: 3Q 2024 Adjusted EBITDA Bridge
3Q 2024 Adjusted EBITDA Bridge Improved Pricing and Volume, Beyond Timing of Planned Plant Turnarounds ($M) $5 • Higher sales volume driven • (~$3M) in 3Q24 vs. (~$27M) in $17 by strong Ammonium Sulfate 3Q23 demand amid continued sulfur nutrition growth • Chemical Intermediates $53 $24 • Ammonium Su
Slide 6: Capital Expenditures
Capital Expenditures Smart and Disciplined Investments to Support Long-Term Potential Capex Framework Deployment by Year** ($M) Healthy Balance Sheet and Base Capex • Supporting safe, stable and sustainable operations P r u d e n t L e v e r a$135-$140M ge Ratios (Maintenance • Prioritization based
Slide 7: Plant Nutrients Update
Plant Nutrients Update Industry Pricing Outlook Considerations Typical Seasonal Decline; AS Price Higher Year-Over-Year • Ammonium sulfate order book sold out through 4Q24 amid continued sulfur nutrition demand • Strong demand for ammonium sulfate, including tons for fall 2024 AS Sales Volume Mix ap
Slide 8: SUSTAIN Program
SUSTAIN Program Continued Progress on Multi-Year Investment to Expand Granular Ammonium Sulfate Production • Ammonium sulfate (AS) continues to be the primary go-to for sulfur nutrition, with continued strong consumption growth. North American customers require the granular form of AS and our SUSTAI
Slide 9: Nylon Solutions Update
Nylon Solutions Update Industry Spreads Outlook Considerations Continued Recovery in Global Pricing • Expect North American nylon industry spreads to modestly improve amid stable end market demand and more favorable macroeconomic conditions – Lower interest rate environment into 2025 expected to fav
Slide 10: Chemical Intermediates Update
Chemical Intermediates Update Industry Pricing Outlook Considerations Balanced to Tight Global Acetone Supply and Demand • Expect balanced to tight global acetone supply and demand conditions to continue – Global phenol operating rates expected to remain low; lower interest rate environment into 202
Slide 11: 2024 Performance
2024 Performance Commercial Execution and Operational Excellence Critical to Underlying Earnings Growth ($M) A Year of Contrasts 180 160 • Continuing to drive commercial performance across diversified product portfolio 140 27 – YTD pricing up 1% and volume up 3% following 1Q24 event 120 – Continued
Slide 12: Appendix
AovanSix APPENDIX Good chemistry,
Slide 13: Planned Plant Turnarounds
Planned Plant Turnarounds Pre-Tax Income Impact by Quarter (1) Primary Unit 1Q 2Q 3Q 4Q FY Operation 2017 -- ~$10M ~$4M ~$20M ~$34M Sulfuric Acid • Timing driven by compliance, inspection and sustaining asset base 2018 ~$2M ~$10M ~$30M -- ~$42M Ammonia • Critical to supporting high utilization rates
Slide 14: Reconciliation of Non-GAAP Measures to GAAP Measures
Reconciliation of Non-GAAP Measures to GAAP Measures
Slide 15: 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 investo
Slide 16: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in $ thousands) (2) 2024 includes a pre-tax loss of approximately $1.2 million from the reduction of the Company’s anticipated receivable related to the gain on the termination fee recorded upon the exit from the Oben Holding Group S.A. alliance durin
Slide 17: 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