Slide 1: 1Q 2020 Earnings Presentation
1Q 2020 Earnings Presentation May 1, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements 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 or
Slide 3: Prepared To Navigate Through Near-Term Dynamics
Prepared To Navigate Through Near-Term Dynamics Focus on Safe, Stable and Sustainable Operations • 1Q20 Results Reflect Strength of Vertical Integration and Low-Cost Position • COVID-19 – Business Designated as Essential Critical Infrastructure – Health and Safety of Our Employees is Top Priority –
Slide 4: 1Q 2020 Financial Summary
1Q 2020 Financial Summary Results Reflect Vertical Integration and Global Low-Cost Position ($ Millions, Except Per Share Amounts) 1Q 2019 1Q 2020 Comments • Sales Down (~4%): Volume +6.5%, Price (10.4%) Sales $314.9 $302.7 – Market Pricing (11.5%), Raw Material Pass Through +1.1% • Unfavorable Impa
Slide 5: 1Q 2020 EBITDA Bridge
1Q 2020 EBITDA Bridge Lower Market Pricing Partially Offset By Volume, Raws and Productivity Benefits ($M) $14 • Lower Natural Gas and Sulfur $37 costs $10 $42 $2 $1 $3 • CPL/Nylon • Higher Volume • Benefits from Nat $29 • AS: higher Gas Boilers standard export sales • Prior year impacts of insuranc
Slide 6: Industry Pricing And Spreads
Industry Pricing And Spreads Nylon Ammonium Sulfate Chemical Intermediates 1Q20 YOY 1Q20 vs. 4Q19 1Q20 YOY 1Q20 vs. 4Q19 1Q20 YOY 1Q20 vs. 4Q19 Global Composite (31%) (6%) Acetone, Sm/Med Buyer 0% 10% Asia BNZ-CPL (43%) (11%) Corn Belt Granular AS (8%) (1%) Acetone, Large Buyer (13%) (7%) Asia CPL-R
Slide 7: COVID-19 Response Summary
COVID-19 Response Summary Health and Safety Focus; Disciplined Cost and Cash Management • Health and safety of employees is top priority • Designated as essential critical infrastructure during COVID-19 response Health, • Business continuity plans supporting safe and stable operations, while continu
Slide 8: COVID-19 Industry Impact
COVID-19 Industry Impact Adjusting Output to Changes in Mix and Demand Potential Impact By Key End Market High Exposure Textile • Auto demand reduction globally impacts nylon Automotive (engineered plastics) and chemical intermediates Consumer Durables • Textile recovery slow, export demand out of C
Slide 9: COVID-19 – Implications Of U.S. Refinery Utilization
COVID-19 – Implications Of U.S. Refinery Utilization Ability to Perform in Any Energy Environment Key Considerations AdvanSix Pricing Mechanisms • Formula/Index-based pass through pricing mechanisms on ~50% of total ASIX revenue base Formula / Index Pricing Market Based Pricing (~50% of total Sa
Slide 10: 2020 Outlook
2020 Outlook Mitigating COVID-19 Risks; Focused Cost Management and Capital Discipline Considerations 2020 Outlook Impacting Outlook • Demand weakness expected to continue; COVID-19 further challenging industry • Residential / Non-Res construction Nylon conditions • Auto demand recovery • Reduced gl
Slide 11: APPENDIX
APPENDIX 11 1Q 2020 Earnings Presentation – May 1, 2020
Slide 12: Planned Plant Turnarounds
Planned Plant Turnarounds Pre-Tax Income Impact by Quarter (1) 1Q 2Q 3Q 4Q FY 2017 -- ~$10M ~$4M ~$20M ~$34M 2018 ~$2M ~$10M ~$30M -- ~$42M 2019 -- ~$5M ~$5M ~$25M ~$35M 2020E ~$2M $5-$10M ~$20M ~$3M $30-$35M • Timing driven by compliance, inspection and sustaining asset base • Critical to supportin
Slide 13: Reconciliation of Non-GAAP Measures to GAAP Measures
APPENDIX Reconciliation of Non-GAAP Measures to GAAP Measures 13 1Q 2020 Earnings Presentation – May 1, 2020
Slide 14: Reconciliation Of Net Cash Provided By Operating Activities To Free Cash Flow
Reconciliation Of Net Cash Provided By Operating Activities To Free Cash Flow (in $ thousands) (1) Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment The Company believes that this metric is useful to investor
Slide 15: Reconciliation Of Net Income To EBITDA
Reconciliation Of Net Income To EBITDA (in $ thousands) (2) EBITDA is a non-GAAP measure defined as Net Income before Interest, Income Taxes, Depreciation and Amortization (3) EBITDA margin is defined as EBITDA divided by Sales The Company believes the non-GAAP financial measures included in this pr