Slide 1: Q2 2022 Earnings Presentation
Q2 2022 Earnings Presentation
Slide 2: Westlake Delivers Record Quarter
2 Westlake Delivers Record Quarter Record quarterly results in 2Q 2022: Record quarterly net sales of $4.5 billion, an increase of 57% vs. second quarter 2021 net sales Record quarterly net income of $858 million, an increase of 64% vs. second quarter 2021 net income Record quarterly EBITDA
Slide 3: Westlake Corporation Performance Second Quarter 2022
3 Westlake Corporation Performance Second Quarter 2022 (1) Reconciliations of EBITDA, Housing and Infrastructure Products EBITDA, Performance and Essential Materials EBITDA and Corporate EBITDA to the applicable GAAP measures can be found on pages 13 and 14 + Favorable market pricing offset inflatio
Slide 4: Sustainability Update
4 Our disclosure to SASB industry standard and Global Reporting Initiative (GRI) framework fully conforms and is on our website Westlake is monitoring the SEC guidelines to be in conformance when phased in Sustainability Update We understand the importance of reducing the environmental impacts of ou
Slide 5: Operating Excellence Drives Bottom Line Results and Leads Peers in Returns on Capital
5 Operating Excellence Drives Bottom Line Results and Leads Peers in Returns on Capital Committed to Operating Excellence Allocate Capital Strong capital stewardship supported by a long history of applying a shareholder oriented economic value added (EVA) approach Created “One Westlake” brand includ
Slide 6: Segment Update
6 Segment Update
Slide 7: Performance and Essential Materials (PEM) Segment Performance
7 Performance and Essential Materials (“PEM”) Segment Performance + Strong market conditions across chlorovinyls supported by leading global market position and globally advantaged cost position + Polyethylene benefitted from the continuing strong demand in industrial and consumer packaging markets
Slide 8: Performance and Essential Materials Update
8 Increasing mix of specialty, differentiated, and downstream product offerings with leading market positions enhances margin and competitive positioning Over 75% of production capacity concentrated in North America provides significant and durable cost advantage relative to global competitors Epoxy
Slide 9: Housing and Infrastructure Products (HIP) Segment Performance
9 Housing and Infrastructure Products (“HIP”) Segment Performance (1) Reconciliations of HIP EBITDA to the applicable GAAP measure can be found on page 14 + Strong repair and remodeling and new residential construction activity in North America + Residential housing has driven demand for our higher-
Slide 10: Housing and Infrastructure Products Update
10 Affordability and rising mortgage rates are slowing new construction activity yet the undersupplied hosing market continues to support new construction activity at more normalized levels Strong 2nd quarter demand for building products driven by both new construction and repair and remodel (R&R) m
Slide 11: Financial Reconciliations
11 Financial Reconciliations
Slide 12: Consolidated Statements of Operations
12 Consolidated Statements of Operations Three months ended March 31, Three months ended June 30, Six months ended June 30, 2022 2022 2021 2022 2021 (In millions of dollars, except per share data) Performance and Essential Materials Sales $ 2,832 $ 3,104 $ 2,146 $ 5,936 $ 3,888 Housing and Infrastru
Slide 13: Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash
13 Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities Three months ended March 31, Three months ended June 30, Six months ended June 30, 2022 2022 2021 2022 2021 (In millions of dollars) Net cash provided by operating activities $ 700 $ 913 $
Slide 14: Reconciliation of HIP, PEM and Corporate EBITDA to Operating Income
14 Reconciliation of HIP, PEM and Corporate EBITDA to Applicable Operating Income (Loss) Three months ended March 31, Three months ended June 30, Six months ended June 30, 2022 2022 2021 2022 2021 (In millions of dollars) Performance and Essential Materials EBITDA $ 1,071 $ 1,162 $ 846 $ 2,233 $ 1,3
Slide 15: Quarterly Industry Data
15 We are no longer providing average quarterly industry prices and housing starts data Quarterly Industry Data
Slide 16: Safe Harbor Language
16 Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding creating value for our shareholders, pricing and demand for our products, continued recovery in key end markets, industry outlook for both of our segments, our cost control and effici
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