Orion S.a. · NYSE:OEC
Orion — Baird Global Industrial Conference 2024
18 slides from Orion's conference presentation, Nov 14, 2024
Slide 1: Corning Painter, CEO and Jeff Glajch, CFO
Corning Painter Chief Executive Officer Jeff Glajch Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looki ment: This presentation contains and refers to certain forward-looking statements with respect to our financial condition, results of operations and business. These statements constitute forward-looking statements within the meaning of Section 21E of the Secu
Slide 3: Engineered Carbons are Ubiquitous, Essential Chemistry
Engineered Carbons are Ubiquitous, Essential Chemistry Optimize Physical, Electrical and Optical Properties Versatile and Customizable Wire & Cable/Conductivity Ve
Slide 4: About Orion
About Orion Year Founded 223) 1862 KE Countries Served gS 80+ 08 ee Oo o- ~ ae, 8 v9 Functional Capacity e@ Se a A 8° O— FR a ~1,200 kmt e Ye be #1 9 angles GLOBAL SPECIALTY ~1,600+ e~ =e CARBON BLACK MARKET -—e Production Facilities Q wreicen: 15 ©) rorinistaiona Cust Profile: Approachin st 00 Annu
Slide 5: Value Proposition: Investment Thesis
Value Proposition Investment Thesis a) ONGOING, SUSTAINED DEMAND FOR GLOBAL CARBON BLACK provides attractive opportunity to expand solid foundation Cod DISCIPLINED CAPITAL ALLOCATION STRATEGY balances funding growth and enhancing returns with returning capital to investors & STRONG LONG-TERM OUTLOOK
Slide 6: Total Sales and Adjusted EBITDA
Total Sales Adjusted EBITDA ($ in millions) ($ in millions) $2,031 61 04 g312 $332 Growin oe ; - i i L 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Three Years of Adj u sted EF B ITDA Return on Capital Employed growth 18% 16% 16% 15% Focus on Return on 7 Capital Employed | 2019 2020 2021 2022 2
Slide 7: Orion S.A. Overview: Rubber and Specialty Carbon Black
RUBBER CARBON BLACK Thought leader on the need for return on capital and in driving for increased investment pricing levels in a market traditionally focused on margins. Third largest global player. 65-70% Of Revenue SPECIALTY CARBON BLACK Global leader in specialty carbon black. Engineering materia
Slide 8: Rubber Carbon Black Business Profile
Rubber Carbon Black Business Profile FY2023 SALES FY2023 VOLUME BY CUSTOMER LOCATION BY MARKET EMEA Americas mAsia ™MRG =Replacement Tire = OEM Tire KEY END MARKETS (% of Net Sales) ) Distributor/Dealer ~5% Tire & Technical Tire ~72%
Slide 9: Rubber's Solid Foundation
Rubber's Solid Foundation Solid and Sustaining Contributor to Results SALES ($ in millions) $968 $948 | 2019 2020 2021 1,355, $ $1,282 2022 2023 VOLUME (in kmt) 739° 714 772 701 | | 2019 2020 2021 2022 2023 GROSS PROFIT PER TON ($ in millions) $409 $336 $284 $270 : $226 2019 2020 2021 2022 2023 ADJ.
Slide 10: Rubber Growth Drivers
Growth Drivers TRADITIONAL EMERGING g VEHICLE PRODUCTION (@®) TIRE DESIGN Traditional drivers will continue to support growth while emerging demands are gaining in importance and relevance 10
Slide 11: Specialty Carbon Black Business Profile
Specialty Carbon Black Business Profile FY2023 NET SALES BY FY2023 VOLUME CUSTOMER REGION BY APPLICATION 221 kmt 22% EMEA mAmericas mAsia ™ Automotive Polymer (non-auto) = Printing & Coatings (non-auto) Special Apps (non-auto) KEY END MARKETS (% of Net Sales)* Polymers Printing Systems Dealer/Distri
Slide 12: Specialty's Contribution
Specialty's Contribution Strong Platform For Growth SALES VOLUME ($ in millions) (in kmt) 251 263 | | | | 2019 2020 2021 2022 2023 $675 $598 $611 $509 : $445, 2019 2020 2021 2022 2023 GROSS PROFIT PER TON ($ in millions) $895 9751 $724 | | | | 2019 2020 2021 2022 2023 ADJ. EBITDA ($ in millions) $14
Slide 13: Specialty Growth Drivers
Specialty Growth Drivers Favorable Megatrends GROWING CONSUMER DEMAND Industrial and Deco Coatings Synthetic Fibers Pressure Pipes Packaging Ink MOBILITY Engineered Plastics Adhesives and Sealants Automotive Coatings SUSTAINABILITY Electric Vehicles Lithium-lon Batteries 3
Slide 14: Global Megatrends
Global Megatrends Megatrend Sustainability Growing Consumer Dem Impact Result Impact Result Impact Result EV's Conductive Additive Electrification Conductive Ethical Shopping EV Demand —_ Demand —_ Additive Demand _ «Mater. Power Storage — Circular Economy — Aspirational Purchases Prestige Materials
Slide 15: Capital Needs Diminishing Over Next Years
Capital Needs Diminishing Over Next 2 years La Porte Project On Track for Completion in 2025 Maintenance Capex to Enhance Returns - Reliability, Asset Productivity Improved FCF Should Enable Additional Return of Capital to Shareholders (1) EPAspend completed in 2023 (2) Greenfield project for acetyl
Slide 16: Mid-Cycle Capacity Assumptions
Mid-Cycle Capacity Assumptions Tz . iS) ° iS At mid-cycle, we would expect economic indicators in the markets we serve to be at pre-COVID levels. We would also expect pricing required to maintain our margins At mid-cycle capacity, expect our consolidated plant utilization to return to the upper 80 p
Slide 17: 2025 Early Look
2025 Early Look Industry Supply/Demand in Western Regions o European CB capacity — higher utilization o U.S. effective capacity diminished, due to EPA investments Rubber Contract Negotiations Nearing Completion o Volume growth, even ina flat market o Gross profit/ton comparable to 2024 o Upside if t
Slide 18: Investor Relations Contact
Vice President, Investor Relations E-mail: christopher.kapsch@orioncarbons.com