Slide 1: Earnings Presentation 2Q 2024
1 Earnings Presentation 2Q 2024
Slide 2: Second Quarter 2024 Highlights
2 Second Quarter 2024 Highlights 2Q 2024 Financial Results Record HIP segment earnings with improving PEM segment profitability • Jean-Marc Gilson named President and CEO; Albert Chao appointed Executive Chairman • Housing and Infrastructure Products (HIP) reported records in income from operations
Slide 3: Westlake Corporation 2Q 2024
3 Westlake Corporation 2Q 2024 Sales volume grew a solid 12% YoY driven by Pipe & Fittings and Siding & Trim in HIP and chlorovinyls in PEM Average sales price reflected QoQ growth following several quarters of declines, driven by higher PVC resin and polyethylene prices in PEM The recovery in globa
Slide 4: Housing and Infrastructure Products (HIP) Segment Performance
4 Housing and Infrastructure Products (“HIP”) Segment Performance HIP Segment 2Q 2024 vs. 1Q 2024 Average Sales Price -0.3% Volume +14.7% HIP Segment 2Q 2024 vs. 2Q 2023 Average Sales Price -8.7% Volume +15.7% Record EBITDA and EBITDA margin driven by solid sales volume growth, lower materials costs
Slide 5: Housing and Infrastructure Products Update
5 Housing and Infrastructure Products Update 2 Repair & remodel activity provided steady growth driven by large number of homes in prime remodel age, healthy home equity levels, homeowners with low-rate mortgages remaining in place, and significant backlog of projects 3 While our order books remain
Slide 6: HIP Long-Term Growth Drivers and Disciplined Capital Allocation Framework
6 HIP Long-Term Growth Drivers Disciplined Capital Allocation Framework Backed by ROCE-Driven Culture Organic Growth Drivers • Investments in technical capabilities and innovation to solve customer needs • Extensive footprint to serve customers • Robust and integrated supply chain, including sustain
Slide 7: Performance and Essential Materials (PEM) Segment Performance
7 Performance and Essential Materials (“PEM”) Segment Performance PEM Segment 2Q 2024 vs. 1Q 2024 Average Sales Price +3.7% Volume +0.5% PEM Segment 2Q 2024 vs. 2Q 2023 Average Sales Price -16.4% Volume +10.6% Higher average sales price and margins QoQ, primarily driven by higher prices for PVC resi
Slide 8: Performance and Essential Materials Update
8 Performance and Essential Materials Update 2 Our North American cost advantage remained strong during the second quarter of 2024 due to both higher global oil prices and lower U.S. natural gas prices 3 ISM readings in the U.S. and Europe trended lower during the second quarter while similar metric
Slide 9: Financial Reconciliations
99 Financial Reconciliations
Slide 10: Consolidated Statements of Operations
10 Consolidated Statements of Operations Performance and Essential Materials Sales $ 2,013 $ 2,136 $ 1,931 $ 3,944 $ 4,485 Housing and Infrastructure Products Sales 1,194 1,115 1,044 2,238 2,122 Net sales 3,207 3,251 2,975 6,182 6,607 Cost of sales Gross profit Selling, general and administrative ex
Slide 11: Reconciliation of EBITDA to Net Income, Income from Operations and Operating Cash Flow
11 Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities Net cash provided by operating activities $ 237 $ 555 $ 169 $ 406 $ 1,067 Changes in operating assets and liabilities and other Deferred income taxes Net income Less: Other income, net Int
Slide 12: Reconciliation of PEM, HIP and Corporate EBITDA to Operating Income (Loss)
12 Reconciliation of PEM, HIP and Corporate EBITDA to Operating Income (Loss) Three months ended June 30, Three months ended March 31, Six months ended June 30, 2024 2023 2024 2024 2023 Performance and Essential Materials EBITDA $ 391 $ 435 $ 253 $ 644 $ 1,050 Less: Depreciation and Amortization 224
Slide 13: Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities
13 Reconciliation of Free Cash Flow to Net Cash Provided by Operating Activities Net cash provided by operating activities $ 237 $ 555 $ 169 $ 406 $ 1,067 Less: Additions to property, plant and equipment Free Cash Flow $ 6 $ 315 $ (103) $ (97) $ 560 (In millions of dollars) Three months ended June 3
Slide 14: Safe Harbor Language
14 Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding our cost savings objectives and our ability to maintain synergies, pricing and demand for our products and across the industrial and manufacturing sectors, global macroeconomic condit
Slide 15: Westlake
Westlake