Ecovyst Inc. · NYSE:ECVT
Ecovyst — Q2 2021 Earnings Presentation
21 slides from Ecovyst's earnings presentation, Aug 5, 2021
Slide 1: Second Quarter 2021
Second Quarter 2021 August 5, 2021—11 am EST YOUR CATALYST FOR POSITIVE CHANGE ™
Slide 2: Legal Discussion
Legal Discussion Continuing Operations Financial results are presented to exclude the Performance Materials business and the Performance Chemicals business, from all quarterly and yearly results presented unless otherwise indicated. Forward-Looking Statements Some of the information contained in thi
Slide 3: PQ Transformation Complete: Highlights Track Record of Value Creation
PQ Transformation Complete: Highlights Track Record of Value Creation FINAL TRANSFORMATION STEP RECENT PORTFOLIO TRANSFORMATION ACTIONS • Completed Performance Materials sale for $650 million • Closed sale of Performance Chemicals for $1.1 billion • Net cash proceeds used for: • Sold/exchanged 10 no
Slide 4: Ecovyst Emerges as High Growth Sustainability Focused Pure-Play Catalysts and Services Company
Ecovyst Emerges as High Growth Sustainability Focused Pure- Play Catalysts and Services Company Our technologies support ecological health. We are well positioned and confident in Vying for and propelling customers’ expansion and growth. We are a catalyst for positive change. STRATEGY INVESTMENT PRO
Slide 5: Ecoservices: Energy Transition, Green Infrastructure, and Sustainability Trends Drive Increased Demand
Ecoservices: Energy Transition, Green Infrastructure, and Sustainability Trends Drive Increased Demand ECOSERVICES (% 2020 Sales1) YEAR ON YEAR DEMAND TRENDS ’20A ’21E ’22E Clean Fuels Ecoservices ~53% 65% CLEAN FUELS INDUSTRIAL Industrial ~37% WT/CR* Catalyst Technologies 35% WT/CR*: Waste Treatmen
Slide 6: Catalyst Technologies: Proprietary Technology and Product Customization Enables Growth
Catalyst Technologies: Proprietary Technology and Product Customization Enables Growth Outpacing Market Trends CATALYST TECHNOLOGIES (% 2020 Sales1) YEAR ON YEAR DEMAND TRENDS Catalyst Technologies ’20A ’21E ’22E Clean Fuels & Air 35% ~51% CLEAN FUELS & AIR POLYMERS Ecoservices Polymers 65% 36% NICH
Slide 7: Ecovyst Innovation Portfolio Driving Higher Sustainable Solutions and Services
Ecovyst Innovation Portfolio Driving Higher Sustainable Solutions and Services 2015 2020 2025 E Innovation Investment Ratio Sustainability Focused on New Sustainable Products 60% 80% 90% Global Sustainability Trend Our products provide solutions that… …Remove sulfur in diesel Clean Air …Remove NOx f
Slide 8: Second Quarter Highlights: Execution Ahead of Schedule
Second Quarter Highlights: Execution Ahead of Schedule Focus Area Highlights • Maintained solid safety performance with >90% "Perfect Days" YTD • Ecoservices: Completed 3 major facility turnarounds on budget and in time for anticipated OPERATIONAL robust Q3 regeneration services and virgin sulfuric
Slide 9: Second Quarter 2021 Financial Results
Second Quarter 2021 Financial Results Sequential Sales Adjusted EBITDA & Margin2,3 33.2 29.2% 29.0 27.2% 147.0 126.6 +16%1 +25% 52.7 42.3 Q1'21 Q2'21 Q1'21 Q2'21 Ecovyst - GAAP Zeolyst JV Year-on-Year Sales Adjusted EBITDA & Margin2,3 33.2 40.9 29.2% 32.0% +15%1 +5% 147.0 115.6 50.0 52.7 Q2'20 Q2'21
Slide 10: Ecoservices
Ecoservices Sequential Sales Adjusted EBITDA & Margin1 • Sales increased on improved volume in regeneration services and virgin sulfuric acid coupled with pass-through of higher sulfur costs 33.5% of $7 million 32.9% • Adjusted EBITDA increased on higher volume 120.8 despite $5 million higher turnar
Slide 11: Catalyst Technologies
Catalyst Technologies Sequential Sales Adjusted EBITDA & Margin2,3 • Silica Catalysts sales in line as increased demand for polyethylene is offset by timing of chemical 29.0 33.2 34.8% catalyst orders 33.3% • Zeolyst JV sales increased as hydrocracking +7%1 +12% 18.5 20.7 catalyst demand recovers wi
Slide 12: Ecovyst 2021 Financial Outlook
Ecovyst 2021 Financial Outlook Ecovyst1,2 2021 2021 ($ in millions, 2020 Prior Updated except per share) Actual Guidance Outlook Sales3 $496 $555 – 565 $565 – 575 Growth of 10 – 15% Zeolyst JV Sales $129 $140 – 150 $140 – 150 in 2021 from 2020 Adjusted EBITDA4 $193 $215 – 225 $215 – 225 assuming mid
Slide 13: 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 innovati
Slide 14: Appendix
APPENDIX
Slide 15: Quarterly Segment Sales, Adjusted EBITDA and Margins
Quarterly Segment Sales, Adjusted EBITDA and Margins Six Six Months Months Three Months Ended Ended Three Months Ended Ended March 31, June 30, June 30, March 31, June 30, June 30, ($ in millions, except %) 2021 2021 2021 2020 2020 2020 Sales: Ecoservices 100.2 120.8 221.0 100.7 90.4 191.1 Silica Ca
Slide 16: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Sales Silica Silica (in $ millions and %) Ecovyst Ecoservices Catalysts Ecovyst Ecoservices Catalysts Sales: $ % $ % $ % $ % $ % $ % Volume 19.5 16.9 21.0 23.2 (1.5) (5.9) 13.6 5.6 14
Slide 17: Reconciliation of Net income to Segment Adjusted EBITDA
Reconciliation of Net income to Segment Adjusted EBITDA Six Months Six Months Three Months Ended Ended Three Months Ended Ended March 31, June 30, June 30, March 31, June 30, June 30, ($ in millions, except %) 2021 2021 2021 2020 2020 2020 Reconciliation of net (loss) income from continuing operatio
Slide 18: Historical Financial Performance
Historical Financial Performance Year Ended December 31 December 31 December 31, ($ in millions except %) 2019 2018 2017 PQ Group Holdings Inc. Sales: Ecoservices (formerly Refining Services) 447.1 455.6 398.4 Silica Catalysts 85.7 72.1 75.3 Performance Materials 363.0 378.3 324.2 Performance Chemic
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 Six Months Ended ($ in millions) 2020 June, 30 2021 Cash Flow from Operations before 349.0 90.4 interest and tax Less: Cash paid for taxes 35.0 12.3 Less: Cash paid for interest1 90.4 28.7 Cash Flow from Operations 223.6 49.3 Less: Purchases of property, 109.6 50.0
Slide 21: Your Catalyst for Positive Change
YOUR CATALYST FOR POSITIVE CHANGE ™