Ecovyst Inc. · NYSE:ECVT
Ecovyst — Q3 2021 Earnings Presentation
21 slides from Ecovyst's earnings presentation, Nov 9, 2021
Slide 1: Third Quarter 2021
Third Quarter 2021 November 9, 2021—11 am EST YOUR CATALYST FOR POSITIVE CHANGE ™
Slide 2: Legal Discussion
Legal Discussion Continuing Operations Financial results for quarterly and nine-month periods are presented on a continuing operations basis, which excludes the Performance Materials business and Performance Chemicals business unless otherwise indicated. Financial results for fiscal 2020A are presen
Slide 3: Third Quarter Highlights: Portfolio Demonstrates Resilience
Third Quarter Highlights: Portfolio Demonstrates Resilience Focus Area Highlights • Delivered top tier safety performance with >90% "Perfect Days" YTD • Ecoservices: Completed maintenance turnaround in Baton Rouge and returned operations to OPERATIONAL normal capacity despite interruption by Tropica
Slide 4: Economic Recovery Surpassed 2020 Levels and On Track to Outpace 2019
Economic Recovery Surpassed 2020 Levels and On Track to Outpace 2019 Vehicle Miles Traveled1 US Real GDP Growth (%) Billion Miles % 300 8 +12%2 6 280 4 260 2 240 0 220 2020 2021 2022 -2 200 -4 180 May May Sep Mar Nov Jan-21 Mar Aug Jan-20 Jul Jul -6 US Refinery Utilization (%) US Industrial Producti
Slide 5: Ecoservices: Gasoline Demand Robust with Industrials Demand Expected to Reach Full Recovery by Year-End
Ecoservices: Gasoline Demand Robust with Industrials Demand Expected to Reach Full Recovery by Year-End with Growth in 2022 Clean Fuels Virgin Acid Supporting Green Infrastructure ECOSERVICES1 Alkylate Demand Green Mining 3% 24 28 Clean Fuels +4% MMT Ecoservices ~53% 491 26% 65% 410 1,055 2020 2025E
Slide 6: Ecoservices: North American Leader in Sulfuric Acid Recycling and Related Services
Ecoservices: North American Leader in Sulfuric Acid Recycling and Related Services with Key Competitive Position in Gulf Coast and California NEAR-TERM GROWTH FACTORS • New long-term large customer contract, existing customer re-contracting, and favorable alkylate fundamentals expected to drive mid-
Slide 7: Catalyst Technologies: Recovery and Secular Trends Expected to Drive Growth Acceleration into 2022
Catalyst Technologies: Recovery and Secular Trends Expected to Drive Growth Acceleration into 2022 Clean Fuels & Air CATALYST TECHNOLOGIES1 Hydrocracking Capacity N.A./EU HDD Production Catalyst Technologies 35% Clean Fuels/Air +5% +7% ~51% 14.9 1,289 11.7 927 MB/d 000’s Ecoservices Polymers 65% 36%
Slide 8: Catalyst Technologies: Global Leader in Tailored Catalyst Solutions
Catalyst Technologies: Global Leader in Tailored Catalyst Solutions NEAR-TERM GROWTH FACTORS • Preferred technology and increasing product offerings projected to drive high single digit growth in Clean Fuels & Air, Engineered Polymers, and Custom Catalyst • New product launches planned in 2022 suppo
Slide 9: Third Quarter 2021 Financial Results
Third Quarter 2021 Financial Results SEQUENTIAL Sales ($MM) Adjusted EBITDA ($MM) & Margin2,3 34.7% 32.8 33.2 29.2% 147.0 167.4 69.4 +11%1 52.7 +32% Q2'21 Q3'21 Q2'21 Q3'21 Ecovyst - GAAP Zeolyst JV YEAR-ON-YEAR Sales ($MM) Adjusted EBITDA ($MM) & Margin2,3 34.7% 32.8 30.5% 26.6 +27%1 +44% 69.4 167.
Slide 10: Ecoservices
Ecoservices SEQUENTIAL Sales ($MM) Adjusted EBITDA ($MM) & Margin1 • Sales up, led by higher volume, improved pricing for 37.7% virgin sulfuric acid and pass-through of higher sulfur 33.5% costs of ~$5 million • Adjusted EBITDA and margin higher on improved 137.5 120.8 51.9 volume, favorable pricing
Slide 11: Catalyst Technologies
Catalyst Technologies SEQUENTIAL Sales ($MM) Adjusted EBITDA ($MM) & Margin2,3 • Silica Catalysts sales increased driven by continued 40.7% strength in polyethylene demand and the timing of 34.8% chemical catalyst sales 32.8 33.2 • Continued growth of Zeolyst JV sales into renewable +6%1 +23% 25.5 f
Slide 12: Strong Adjusted Free Cash Flow and Balance Sheet Flexibility to Enable Opportunistic Capital Allocation
Strong Adjusted Free Cash Flow and Balance Sheet Flexibility to Enable Opportunistic Capital Allocation Strategy CAPITAL ALLOCATION Business Historical capital allocation from portfolio actions and Reinvestment cash flow1 20% • Reduced debt by ~$1.8 billion Debt • Returned cash to shareholders of
Slide 13: Upgrading Ecovyst 2021 Financial Outlook
Upgrading Ecovyst 2021 Financial Outlook Ecovyst1,2 Q2 2021 Q3 2021 ($ in millions, 2020 Prior Updated except per share) Actual Guidance Outlook Sales3 $496 $565 – 575 $590 – 600 Growth of >15% Zeolyst JV Sales $129 $140 – 150 $130 – 140 in 2021 from 2020 Adjusted EBITDA4 $193 $215 – 225 $220 – 225
Slide 14: Ecovyst: Leading in Sustainable High-Growth, High-Margin Segments
Ecovyst: Leading in Sustainable High‐Growth, High‐Margin Segments TARGET : 2025 • > $ 1.0 B total Sales1 with inorganic contribution • High 30’s Adjusted EBITDA margins • Cash Conversion > 80% • Growing share of transition driven products sales SUSTAINABLE GROWTH / TRANSITION FOCUS • > 80% of innova
Slide 15: Appendix
APPENDIX
Slide 16: Quarterly Segment Sales, Adjusted EBITDA and Margins
Quarterly Segment Sales, Adjusted EBITDA and Margins Nine Nine Months Months Three Months Ended Ended Three Months Ended Ended March 31, June 30, September September March 31, June 30, September September ($ in millions, except %) 2021 2021 30, 2021 30, 2021 2020 2020 30, 2020 30, 2020 Sales: Ecoser
Slide 17: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Sales Silica Silica (in $ millions and %) Ecovyst Ecoservices Catalysts Ecovyst Ecoservices Catalysts Sales: $ % $ % $ % $ % $ % $ % Volume 16.2 12.4 4.6 4.3 11.6 50.2 29.8
Slide 18: Reconciliation of Net (Loss) Income to Segment Adjusted EBITDA
Reconciliation of Net (Loss) Income to Segment Adjusted EBITDA Nine Nine Months Months Year Three Months Ended Ended Three Months Ended Ended Ended3 March 31, June 30, September September March 31, June 30, September September December ($ in millions, except %) 2021 2021 30, 2021 30, 2021 2020 2020
Slide 19: Descriptions for Reconciliation of Non-GAAP Financial Measures
Descriptions for Reconciliation of Non-GAAP Financial Measures a) We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because the Catalyst Technologies segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate sh
Slide 20: Adjusted Free Cash Flow
Adjusted Free Cash Flow Full Year Nine Months Ended ($ in millions) 2020 September, 30 2021 Cash Flow from Operations before interest and tax 349.0 141.5 Less: Cash paid for taxes 35.0 13.5 Less: Cash paid for interest1 90.4 43.1 Cash Flow from Operations 223.6 84.9 Less: Purchases of property, plan
Slide 21: Your Catalyst for Positive Change
YOUR CATALYST FOR POSITIVE CHANGE ™