Ecovyst Inc. · NYSE:ECVT
Ecovyst — Q4 2020 Earnings Presentation
19 slides from Ecovyst's earnings presentation, Mar 9, 2021
Slide 1: Fourth Quarter 2020 Investor Presentation
Fourth Quarter 2020 March 9, 2021 – 11:00 AM ET INVESTOR PRESENTATION
Slide 2: Legal Discussion
LEGAL DISCUSSION Continuing Operations Financial results are on a continuing operations basis, which excludes the Performance Materials business from all quarterly and yearly results presented, unless otherwise indicated. Forward-Looking Statements Some of the information contained in this presentat
Slide 3: Achievements Over the Past Year
ACHIEVEMENTS OVER THE PAST YEAR FOCUS AREA HIGHLIGHTS o > 45% safety improvement versus 2019; top quartile industry performance o ~ 27% Adjusted EBITDA margins demonstrate strength and stability of platform OPERATIONAL o Completed meaningful new long term supply agreement in Refining Services o Exec
Slide 4: End Use Demand Recovery Is Benefiting Both Target PQ Businesses
END USE DEMAND RECOVERY IS BENEFITING BOTH TARGET PQ BUSINESSES; FUEL PRODUCTION EXPECTED TO LAG 3 TO 6 MONTHS 2020 % EXPECTED 2021 END KEY TOTAL DEMAND TREND BUSINESS USE PRODUCTS SALES1 1H 2H… EXPECTED DEMAND TRENDS Regeneration • Gasoline demand ~10% below 2019 levels until vaccine widely distrib
Slide 5: Fourth Quarter and Full Year 2020 Financial Results
FOURTH QUARTER AND FULL YEAR 2020 FINANCIAL RESULTS Fourth Fourth Quarter Quarter $ % ($ in millions) 2020 2019 Change Change Sales 281.5 283.5 (2.0) (0.7) Adjusted EBITDA 81.8 91.1 (9.3) (10.2) Adjusted EBITDA 26.4 27.5 (110 bps) Margin1 (%) Full Full Year Year $ % ($ in millions) 2020 2019 Change
Slide 6: Refining Services
REFINING SERVICES Fourth Fourth Quarter Quarter $ % ($ in millions) 2020 2019 Change Change Sales 103.2 105.6 (2.4) (2.3) Adjusted EBITDA 40.7 41.9 (1.2) (2.9) Adjusted EBITDA 39.4 39.7 (30 bps) Margin (%) o Regeneration services sales declined on lower refinery Q4 Change Factors utilization; Virgin
Slide 7: Catalysts
CATALYSTS Fourth Fourth Quarter Quarter $ % ($ in millions) 2020 2019 Change Change Sales Silica Catalysts 20.9 23.3 (2.4) (10.3) Zeolyst JV 28.9 47.3 (18.4) (38.9) Adjusted EBITDA 14.8 28.4 (13.6) (47.9) Adjusted EBITDA 29.7 40.2 (1050 bps) Margin1 (%) o Silica Catalysts down on lower MMA catalyst
Slide 8: Performance Chemicals
PERFORMANCE CHEMICALS Fourth Fourth Quarter Quarter $ % ($ in millions) 2020 2019 Change Change Sales 158.2 155.4 2.8 1.8 Adjusted EBITDA 35.5 33.0 2.5 7.6 Adjusted EBITDA 22.4 21.2 120 bps Margin (%) o Sales increased with recovery of sodium silicate for Q4 Change Factors industrial applications an
Slide 9: Adjusted Free Cash Flow and Leverage
ADJUSTED FREE CASH FLOW AND LEVERAGE ADJUSTED FREE CASH FLOW ($mm) NET DEBT/ADJUSTED EBITDA RATIO 166 153 4.9x 134 4.5x 3.9x 3.8x 25 2017 2018 2019 2020 2017 2018 2019 2020 Achieved robust adjusted free cash flow and maintained stable leverage profile despite downturn impacts of COVID-19 pandemic 9
Slide 10: Target PQ Outlook – Continuing Operations
TARGET PQ OUTLOOK – CONTINUING OPERATIONS TARGET PQ – CONTINUING OPERATIONS1 ($ in millions, 2020 2021 except per share) Actual Outlook + 10 – 15% in 2021 Sales2 $496 $555 – 565 from 2020 Adjusted EBITDA $196 $215 – 225 assuming midpoint Adjusted Free Cash Flow3,4 $153 $75 – 85 of guidance Capital E
Slide 11: PQ Portfolio Transformation Accelerates
PQ PORTFOLIO TRANSFORMATION ACCELERATES 2019 2020 – 2021 FUTURE Evaluation & Positioning Transformation Building “Target PQ” o Delayered organization and o Sale of non-core assets Remaining core is an innovative catalyst and related services company separated into four distinct and product lines for
Slide 12: The Future Is Bright
THE FUTURE IS BRIGHT Innovative Pure-Play Catalyst And Services Company ORGANIC SALES High GROWTH Single Digit ADJUSTED EBITDA High GROWTH Single Digit ADJUSTED EBITDA Mid to MARGIN High 30’s% CASH Higher CONVERSION than 75% Note: Estimated average organic growth from 2020 to 2025; sales growth incl
Slide 13: Appendix
APPENDIX fe] PQ Corporation
Slide 14: Quarterly Segment Sales, Adjusted EBITDA and Margins
QUARTERLY SEGMENT SALES, ADJUSTED EBITDA AND MARGINS For the Quarter Ended Three months ended Year ended Three Months Ended Year ended ($ in millions except %, unaudited) December 31, 2020 December 31, 2020 December 31, 2019 December 31, 2019 Sales: Refining Services 103.2 401.9 105.6 447.1 Silica C
Slide 15: Sales and Adjusted EBITDA Major Change Factors
SALES AND ADJUSTED EBITDA MAJOR CHANGE FACTORS SALES Three months ended December 31, 2020 Year Ended December 31, 2020 Sales PQ Group Refining Performance PQ Group Refining Performance (in $ millions and %) Holdings Inc Services Catalysts Chemicals Holdings Inc Services Catalysts Chemicals Sales: $
Slide 16: Adjusted Free Cash Flow
ADJUSTED FREE CASH FLOW Full Year Full Year ($ in millions) 2020 2019 Cash Flow from Operations before interest and tax 349.0 401.9 Less: Cash paid for taxes 35.0 17.4 Less: Cash paid for interest1 90.4 116.8 Cash Flow from Operations 223.6 267.7 Less: Purchases of property, plant and equipment2 109
Slide 17: Reconciliation of Net Income to Segment Adjusted EBITDA
RECONCILIATION OF NET INCOME TO SEGMENT ADJUSTED EBITDA Three months ended Year ended Three Months Ended Year ended ($ in millions) December 31, 2020 December 31, 2020 December 31, 2019 December 31, 2019 Reconciliation of net income attributable to PQ Group Holdings Inc. to Segment Adjusted EBITDA N
Slide 18: 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 our Catalysts segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate share of depre
Slide 19: PQ Corporation
) PQ Corporation