Advansix Inc. · NYSE:ASIX
Advansix — CL King Best Ideas Conference 2019
15 slides from Advansix's conference presentation, Sep 19, 2019
Slide 1: CL King Best Ideas Conference
September 19, 2019 CL King Best Ideas Conference Michael Preston, SVP and CFO
Slide 2: Forward Looking Statements
Forward Looking Statements 2 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 o
Slide 3: AdvanSix At A Glance
AdvanSix At A Glance 3 AdvanSix is a Leading Producer of Nylon 6 and Intermediate Chemicals Profile 2018 Revenue Breakdown • NYSE: ASIX By Product By Region By End Market Coatings, • Spin-off from Honeywell: Asia: $43M EMEA: $25M Adhesives Other October 1, 2016 Chemical Nylon: LatAm/Canada: Packagin
Slide 4: Portfolio Overview
Portfolio Overview 4 Leading North American Position Across Industries Served Nylon Ammonium Sulfate Chemical Intermediates Vertically integrated producer with Key co-product portfolio delivers on Chemical products derived from the Description industry-leading cost position sulfur nutrition value pr
Slide 5: Investment Highlights
Investment Highlights 5 Sustainable Low Cost Position • Vertical integration and scale • Advantaged location – raw materials, access to high value end markets • Co-product net back optimization Diverse Revenue Sources And Strong Customer Relationships With Global Reach • Three product lines serving
Slide 6: Vertically Integrated Manufacturing Sites
Vertically Integrated Manufacturing Sites 6 Competitive Advantage Derived from Significant Scale, Integration and Diverse Revenue Streams Frankford Plant Hopewell Plant Chesterfield Plant Cumene is converted into Phenol, 75%-80% of Phenol produced at ~60% of the Caprolactam produced Acetone & Alpha-
Slide 7: Sustainable Lowest Cost Position
Sustainable Lowest Cost Position 7 Vertical Integration • Fully backward integrated into several key feedstock materials Global Caprolactam Supply / Cost Landscape • One of world’s largest single-site producers of Global Demand Overcapacity Industry- Caprolactam Leading • Significant operating lever
Slide 8: Safe And Stable Operations Roadmap
1 Safe And Stable Operations Roadmap 8 Multi-year Focus to Drive Stability and Higher Returns Asset Risk Matrix (ARM) Reliability Control Plans (RCP) • Maturing mechanical integrity program Risk Assess Execute Leverage ID Perform • Increased focus on Rank Failure RCP Tracking Assets RCPs Actions Rel
Slide 9: Differentiated Product Growth
2 Differentiated Product Growth 9 Innovation Key to Future Growth and Profit Margin Lift Differentiated Product Sales Differentiated Products Characteristics Driving value and growth above base offerings High-Purity Applications 1.5x – 2x gross margin vs. company average Penetrating high-value
Slide 10: Cash Flow And Capital Deployment
3 Cash Flow And Capital Deployment 10 Maturing Deployment Strategies Trailing 12-Month Cash Flow Capital Deployment Framework ($ Millions) • Internal reinvestment remains top priority 190 • Base capex to support safe and stable operations Capex • Executing against multi-year $150-$200M pipeline of 1
Slide 11: High-Return Capex Projects Initiated In 2018
3 High-Return Capex Projects Initiated In 2018 11 Improving Output, Quality and Energy Efficiency at Hopewell Project Overviews and Benefits Project #1 Project #2 • Making Hopewell facility more energy • Adding additional equipment to efficient – replacing coal-fired steam Hopewell to support reliab
Slide 12: AdvanSix Strategy And Priorities
AdvanSix Strategy And Priorities 12 Well Positioned for Strong Operational and Financial Performance Over Long Term Focus Areas For Further Value Creation • Averaging 90%+ utilization rates through the cycle 1) Safe and Stable Operations • Less variability in utilization rates drives higher returns
Slide 13: Appendix
Appendix AdvanSix
Slide 14: Capital Expenditures
Capital Expenditures 14 Execution of High-Return Growth and Cost Savings Projects in 2019 Growth/Cost Savings ~$150M • Executing against multi-year $150-$200M pipeline of high- return projects; 20%+ IRR target $109M ~35% ~2018 Levels • Relocation of R&D lab to Chesterfield from Colonial Heights adds
Slide 15: Planned Plant Turnarounds
Planned Plant Turnarounds 15 Pre-Tax Income Impact by Quarter (1) 1Q 2Q 3Q 4Q FY 2017 -- ~$10M ~$4M ~$20M ~$34M 2018 ~$2M ~$10M ~$30M -- ~$42M 2019E -- ~$5M ~$5M $25-$30M $35-$40M In-line with 2020E -- -- historical averages • Timing driven by compliance, inspection and sustaining asset base • C