Ecovyst Inc. · NYSE:ECVT
Ecovyst — PQ Group Virtual Investor Conference (2021)
11 slides from Ecovyst's conference presentation, 2021
Slide 1: Financial Performance & Goals Overview
Financial Performance & Goals Overview Mike Crews Executive Vice President and Chief Financial Officer YOUR CATALYST FOR POSITIVE CHANGE
Slide 2: Key Takeaways
Key Takeaways Strong and Proven topline sustainable growth margins Superior metrics Secure high free warrant expanded cash conversion multiple FINANCIAL PERFORMANCE & GOALS OVERVIEW / 2
Slide 3: Solid Financial Performance and Sustainable Adjusted EBITDA Margins Exceeding Peers
Solid Financial Performance and Sustainable Adjusted EBITDA Margins Exceeding Peers Historical Sales and Adjusted EBITDA Growth (in millions)1 2019 Adjusted EBITDA Margin2 vs. Peers3 41.5% 7% Sales CAGR $86 34.6% 32.0% 32.0% $75 29.3% $170 $144 22.9% 22.7% 35% 35% 21.2% All comp median (22.0%) 7% Ad
Slide 4: Robust Cash Conversion and Portfolio Actions Enabled Optimal Capital Allocation
Robust Cash Conversion and Portfolio Actions Enabled Optimal Capital Allocation Cash Conversion Use of Robust Adjusted Free Cash Flows and Net Sale Proceeds, Since IPO3 Cash Conversion = (Adjusted EBITDA1 – CapEx2) / Adjusted EBITDA1 71% 66% Dividends 25% Debt Reduction 50% Business Reinvestment 25%
Slide 5: Financial Performance & Goals Overview
Financial Performance & Goals Overview Mike Feehan Vice President of Finance and Treasurer YOUR CATALYST FOR POSITIVE CHANGE
Slide 6: Top-Line Organic Growth and Operational Improvements Drive Higher Adjusted EBITDA and Margins
Top-Line Organic Growth and Operational Improvements Drive Higher Adjusted EBITDA and Margins Total Sales (in millions)1 Adjusted EBITDA1 (in millions) and Margins2 8% CAGR 7% CAGR 11% CAGR 7% CAGR $242 $86 $213 $75 $94 $196 $170 $144 $129 35% 35% 31% 35-40% $398 $447 $402 2017 A 2019 A 2020 A 2025
Slide 7: Strong Cash Conversion to Fund Future Growth and Pay Down Debt
Strong Cash Conversion to Fund Future Growth and Pay Down Debt Cash Conversion Capital Allocation Strategy ~80% Cash Flow from Operations Free Cash Flow Less: Maintenance Capex 72% 71% 66% Operational Growth Capex Improvement Opportunistic / Debt Paydown 2017 A 2019 A 2020 A 2025 P Bolt-on 2017 Cash
Slide 8: ecovyst Delivers Best in Class Metrics but Remains Undervalued vs. Peers
ecovyst Delivers Best in Class Metrics but Remains Undervalued vs. Peers Public Comparables & The Rationale Specialty Chemicals & Materials Electronic Chemicals Recycling/Environmental Services • High growth, high margin • Growth rates aligned with ecovyst • Critical support for US specialty chemica
Slide 9: ecovyst Delivers Best in Class Metrics but Remains Undervalued vs. Peers
ecovyst Delivers Best in Class Metrics but Remains Undervalued vs. Peers Sales CAGR 2020-2022 E 2020 Adjusted EBITDA Margin 36.4% 10.5% 9.6% 9.3% 31.6% 31.3% 29.5% 7.3% 7.0% 24.3% 24.1% 6.5% 22.8% All comp median (22.8%) 6.1% 5.9% All comp median (6.0%) 18.5% 18.2% 4.7% 4.6% 4.5% 17.5% 4.4% 15.7% 14
Slide 10: ecovyst Delivers Best in Class Metrics but Remains Undervalued vs. Peers
ecovyst Delivers Best in Class Metrics but Remains Undervalued vs. Peers 2020 Cash Conversion & Current Net Debt/Adjusted EBITDA 2022 E EV/Adjusted EBITDA 93.2% 91.9% 16.2x 15.6x 15.4x 85.5% 14.9x 76.4% 75.9% 75.4% All comp median (72.7%) 72.7% 72.1% All comp median (12.1x) 70.0% 68.5% 12.4x 12.2x 6
Slide 11: 2025 Goals – Targeting Across the Board Improvements Moving Forward
2025 Goals – Targeting Across the Board Improvements Moving Forward 10-12% 35-40% 80% $1b+ 2025 Goals Adjusted Adjusted EBITDA Cash EBITDA Growth Conversion Margin Total Sales* *Total sales represents ecovyst, 50% share of Zeolyst Joint Venture, and 10% projected inorganic growth FINANCIAL PERFORMAN
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