Westlake Corporation · NYSE:WLK
Westlake — Westlake Chemical — Q3 2018 Earnings Presentation
10 slides from Westlake's earnings presentation, Nov 6, 2018
Slide 1: Third Quarter 2018 Earnings Presentation
EXHIBIT 99.2 Westlake Chemical Corporation Third Quarter 2018 Earnings Presentation
Slide 2: Financial Highlights
EXHIBIT 99.2 Westlake Chemical Corporation Third Quarter 2018 Financial Highlights 3Q18 vs. 3Q18 vs. YTD18 vs. ($ in millions) 3Q18 3Q17 3Q17 2Q18 2Q18 YTD 18 YTD 17 YTD17 Sales $2,255 $2,109 7% $2,235 1% $6,640 $6,031 10% Operating Income $396 $364 9% $404 (2%) $1,201 $862 39% Vinyls EBITDA $391 $3
Slide 3: Business Highlights
EXHIBIT 99.2 Westlake Chemical Corporation Third Quarter 2018 Business Highlights . Quarterly net income of $308 million, or $2.35 per diluted share . Record quarterly sales of $2.3 billion; record quarterly cash flows from operations of $606 million; and record quarterly EBITDA of $580 million . An
Slide 4: Vinyls Segment Performance
EXHIBIT 99.2 Vinyls Segment Performance 3Q18 vs. 3Q18 vs. YTD18 vs. ($ in millions) 3Q18 3Q17 3Q17 2Q18 2Q18 YTD 18 YTD 17 YTD17 Sales $1,714 $1,607 7% $1,753 (2%) $5,114 $4,497 14% Operating Income $251 $214 17% $271 (7%) $788 $425 85% EBITDA $391 $333 17% $395 (1%) $1,182 $764 55% Third Quarter 20
Slide 5: Olefins Segment Performance
EXHIBIT 99.2 Olefins Segment Performance 3Q18 vs. 3Q18 vs. YTD18 vs. ($ in millions) 3Q18 3Q17 3Q17 2Q18 2Q18 YTD 18 YTD 17 YTD17 Sales $541 $502 8% $482 12% $1,526 $1,534 (1%) Operating Income $162 $166 (2%) $158 3% $483 $489 (1%) EBITDA $198 $201 (1%) $192 3% $589 $602 (2%) Third Quarter 2018 vs.
Slide 6: Strong Growth in Net Income – Record Cash Flow from Operations
EXHIBIT 99.2 Strong Growth in Net Income – Record Cash Flow from Operations Free Cash Flow – Top Priority Year to Date Net Income and Cash Flows from Operations 1500 1250 $1,155 1000 $962 $903 750 $ in $ millions $523 500 250 0 Net Income (2017 YTD) Net Income (2018 YTD) Cash Flow from Operations Ca
Slide 7: W]
EXHIBIT 99.2 Westlake Chemical W]
Slide 8: Reconciliation of Westlake EBITDA to Net Income and to Cash Flow from Operating Activities
EXHIBIT 99.2 Reconciliation of Westlake EBITDA to Net Income and to Cash Flow from Operating Activities (in $ millions) 3Q 2018 2Q 2018 3Q 2017 YTD 3Q 2018 YTD 3Q 2017 EBITDA 580 568 522 1,727 1,324 Less: Depreciation and Amortization (161) (156) (154) (473) (449) Other Income (23) (8) (4) (53) (13)
Slide 9: Reconciliation of Vinyls, Olefins and Corporate EBITDA to Operating Income
EXHIBIT 99.2 Reconciliation of Vinyls, Olefins and Corporate EBITDA to Applicable Operating Income (Loss) (in $ millions) 3Q 2018 2Q 2018 3Q 2017 YTD 3Q 2018 YTD 3Q 2017 Vinyls EBITDA 391 395 333 1,182 764 Less: Depreciation and Amortization (124) (120) (118) (362) (332) Other Income (16) (4) (1) (3
Slide 10: Safe Harbor Language
EXHIBIT 99.2 Safe Harbor Language This presentation contains certain forward-looking statements, including statements with respect to the timing of the expected closing of the pending acquisition of NAKAN. Actual results may differ materially depending on factors such as general economic and busines