Advansix Inc. · NYSE:ASIX
Advansix — Stifel Virtual Cross Sector Insight Conference 2021
22 slides from Advansix's conference presentation, Jun 8, 2021
Slide 1: Stifel Virtual Cross Sector Insight Conference
Stifel Virtual Cross Sector Insight Conference June 8, 2021
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: AdvanSix At A Glance
AdvanSix At A Glance Leading Producer of Nylon Solutions, Chemical Intermediates, and Plant Nutrients Profile 2020 Revenue Breakdown • NYSE: ASIX By Product By Region By End Market • Spin-off from Honeywell: EMEA: $58M Other Ammonium Asia: $69M Coatings, October 1, 2016 Sulfate: Nylon: Adhesives $28
Slide 4: Portfolio Overview
Portfolio Overview Leading North American Position Across Industries Served Nylon Ammonium Sulfate Chemical Intermediates Vertically integrated producer with Key co-product portfolio delivering High quality products serving Description industry-leading cost position on sulfur nutrition value proposi
Slide 5: Investment Highlights
Investment Highlights Sustainable Low Cost Position • Vertical integration and scale • Advantaged location – raw materials, access to high value end markets • Co-product net back optimization Diverse Revenue Sources And Strong Customer Relationships With Global Reach • Over 50% of revenue from non-n
Slide 6: Vertically Integrated Manufacturing Sites
Vertically Integrated Manufacturing Sites Competitive Advantage Derived from Significant Scale, Integration and Diverse Revenue Streams Frankford Plant Hopewell Plant Chesterfield Plant Cumene is converted into Phenol, 75%-80% of Phenol produced at ~60% of the Caprolactam produced Acetone & Alpha-Me
Slide 7: Sustainable Lowest Cost Position
Sustainable Lowest Cost Position Vertical • Fully backward integrated into several key Integration feedstock materials Global Caprolactam Supply / Cost Landscape • One of world’s largest single-site producers of Global Demand Overcapacity Industry- Caprolactam Leading • Significant operating leverag
Slide 8: 1Q 2021 Overview
1Q 2021 Overview Strong Volume Growth, Margin Improvement and Cash Flow Generation • Delivered Strong 1Q21 Results to Start 2021 1Q21 YoY – Higher pricing and sales volume growth reflecting strength of our Variance business model, portfolio diversity and improved industry conditions – Expanded margi
Slide 9: Cash Flow / Leverage
Cash Flow / Leverage Robust Free Cash Flow Generation Supporting Further Reduction in Leverage 1Q21 Cash Flow ($M) Net Debt / Trailing 12-Month (TTM) Adjusted EBITDA Ratios Net Income $28 4 Net Debt / TTM Adjusted EBITDA Depreciation & Amortization $16 3 Inventories $39 Target Range 2 Accounts Recei
Slide 10: Industry Pricing And Spreads
Industry Pricing And Spreads Nylon Ammonium Sulfate Chemical Intermediates Further Improvement in Industry Spreads Improving Ag Fundamentals, Higher Input Costs Tight Supply and Demand Conditions 1Q21 YOY 1Q21 vs. 4Q20 1Q21 YOY 1Q21 vs. 4Q20 1Q21 YOY 1Q21 vs. 4Q20 Global Composite 17% 12% Acetone, S
Slide 11: 2021 Industry Update
2021 Industry Update Improved End Market Conditions Overall Nylon Ammonium Sulfate Chemical Intermediates • Improved North America carpet demand • Expect improved ammonium sulfate • Expect favorable acetone industry from residential applications; Expect fertilizer results through 2021 planting suppl
Slide 12: Sustainability
Sustainability Continued Commitment to Environmental, Social and Economic Sustainability Highlights • EcoVadis 2021 Platinum Rating – Awarded a Platinum Rating for corporate social responsibility (CSR) by EcoVadis, an independent CSR assessment agency – Ranked in top 1% of all companies assessed • T
Slide 13: 2021 Priorities
2021 Priorities Executing Roadmap to Deliver Long-Term Shareholder Value Enhance Day-to-Day Execution By Strengthening Our Culture and Core Foundations of Excellence • Targeting record year of production output to support higher earnings and robust cash flow generation • Safety a top priority – zero
Slide 14: Appendix
APPENDIX SL powsv
Slide 15: 1Q 2021 Financial Summary
1Q 2021 Financial Summary Strong Start to 2021 ($ Millions, Except Per Share Amounts) 1Q 2020 1Q 2021 Comments • Sales Up 24%: Volume +8%, Price +16% Sales $302.7 $376.4 – Market Pricing +5%, Raw Material Pass Through +11% • Higher Volume and Improved Market-Based Pricing EBITDA $28.6 $55.1 • Unfavo
Slide 16: 1Q 2021 EBITDA Bridge
1Q 2021 EBITDA Bridge Higher Volume and Market-Based Pricing ($M) $1 • (~$3M) in 1Q21 vs. $7 $16 (~$2M) in 1Q20 • Increased volume across all major product lines $18 $55 • Chemical Intermediates • CPL/Nylon $29 • Ammonium Sulfate 1Q20 Price - Raws Spread Volume / Other Planned Plant Turnaround LIFO
Slide 17: 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 2020 ~$2M ~$7M ~$20M ~$2M ~$31M 2021E ~$3M $9-$11M -- $13-$16M $25-$30M • Timing driven by compliance, inspection and sustaining a
Slide 18: Appendix: Reconciliation of Non-GAAP Measures to GAAP Measures
APPENDIX Reconciliation of Non-GAAP Measures to GAAP Measures 18
Slide 19: 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 20: 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
Slide 21: Reconciliation Of Net Income To Adjusted EBITDA
Reconciliation Of Net Income To Adjusted EBITDA (in $ thousands) (4) EBITDA is a non-GAAP measure defined as Net Income before Interest, Income Taxes, Depreciation and Amortization (5) Adjusted EBITDA is defined as EBITDA plus Non-cash stock based compensation, non-recurring, unusual or extraordinar
Slide 22: Reconciliation Of Net Debt And Net Debt To TTM Adjusted EBITDA Ratio
Reconciliation Of Net Debt And Calculation Of Net Debt To Trailing 12-Months (TTM) Adjusted EBITDA Ratio (in $ thousands) The leverage ratio of Net debt to TTM Adjusted EBITDA is a financial measure that the Company believes is useful to investors and financial analysts in evaluating the Company’s l
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