Slide 1: Second Quarter 2024
Second Quarter 2024 August 1, 2024 —11 a.m. ET YOUR CATALYST FOR POSITIVE CHANGE™
Slide 2: Legal Discussion - Forward-Looking Statements
Legal Discussion Forward-Looking Statements Some of the information contained in this presentation, the conference call during which this presentation is reviewed and any discussions that follow constitutes “forward-looking statements.” Forward-looking statements can be identified by words such as “
Slide 3: Legal Discussion - Supply Share and Industry Information
Legal Discussion Supply Share and Industry Information Certain statistical information used in this presentation is based on independent industry publications, reports by research firms or other published independent sources. Some statistical information is also based on our good faith estimates whi
Slide 4: Key Messages - Second Quarter 2024
Key Messages - Second Quarter 2024 1 Sales volume up across Ecoservices businesses with high refinery utilization supporting strong demand for regeneration services. 2 Advanced Silicas sales increased on higher sales of niche custom catalysts. 3 Sales for the Zeolyst Joint Venture decreased on lower
Slide 5: Q2 2024 Key Highlights
Key Highlights Q2 2024 Key Highlights $183 Mln $57 Mln 27% GAAP Sales Adj. EBITDA Adj. EBITDA Margin Q2 2024 Q2 20241 Q2 20241,2 3.3x 72% $156 Mln Net Debt Leverage Cash Liquidity5 Ratio1,4 Conversion1,3 1. See Appendix for Reconciliations of non-GAAP measures 2. Adjusted EBITDA margin calculation i
Slide 6: Demand Trends and Drivers
Demand Trends and Drivers Sources: EIA, S&P, LMC, CMA, Bloomberg, Management Estimates SECOND QUARTER EARNINGS 2024 / 6
Slide 7: Second Quarter 2024 Financial Performance
Second Quarter 2024 Financial Performance
Slide 8: Financial Performance - Q2 2024
Financial Performance - Q2 2024 Second Quarter Financial Results Second Second Quarter Quarter $ % ($ in millions) 2024 2023 Change Change Ecovyst Sales 182.8 184.1 (1.3) (0.7) Zeolyst Joint Venture Sales 29.0 44.7 (15.7) (35.1) Net Income 8.3 26.1 (17.8) (68.2) Net Income Margin (%) 4.5 14.2 NM Adj
Slide 9: Adjusted EBITDA Bridge - Q2 2024
Adjusted EBITDA Bridge - Q2 2024 Decrease in Q2 '24 Adjusted EBITDA primarily driven by: • Lower net pricing associated with the timing and contractual pass- through effect of lower variable costs, and • An increase in planned turnaround and maintenance costs Lower net pricing largely driven by timi
Slide 10: Ecoservices - Q2 2024 Financial Performance
Ecoservices - Q2 2024 Financial Performance Second Second Quarter Quarter $ % ($ in millions) 2024 2023 Change Change Sales 153.9 158.1 (4.2) (2.7) Adjusted EBITDA1 49.7 60.1 (10.4) (17.3) Adjusted EBITDA Margin1 (%) 32.3 38.0 (570) bps Highlights • Volume up with high refinery utilization and favor
Slide 11: Advanced Materials & Catalysts - Q2 2024 Financial Performance
Advanced Materials & Catalysts - Q2 2024 Financial Performance Second Second Quarter Quarter $ % ($ in millions) 2024 2023 Change Change Advanced Silicas Sales 28.9 26.0 2.9 11.2 Zeolyst Joint Venture Sales 29.0 44.7 (15.7) (35.1) Adjusted EBITDA1 14.7 25.4 (10.7) (42.1) Adjusted EBITDA Margin1,2 (%
Slide 12: Cash & Leverage
Cash & Leverage Strong Cash Conversion Provides for Capital Allocation Flexibility Cash Conversion1 Net Debt Leverage Ratio2 Share repurchases 79% 3.2x 3.2x 3.3x 72% 71% 75% 72% 3.0x 2.9x 2020 2021 2022 2023 TTM Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'24 Cash Generation Leverage Ratio and Debt Profile • Co
Slide 13: Ecovyst 2024 Outlook
Ecovyst 2024 Outlook ($ in millions, 2023 Prior 2024 Revised 2024 except per share) Actual Outlook Outlook Sales1 $691 $715 - $755 $700 - $740 Zeolyst Joint Venture Sales $157 $145 - $165 $115 - $135 Q3 2024 Outlook Adjusted EBITDA2 $260 $255 - $275 $230 - $245 Adjusted EBITDA2 $58 to $65 Free Cash
Slide 14: Summary
Summary Expect demand fundamentals for regeneration, treatment services and catalyst activation to remain positive for balance of the year, expect sales 1 of virgin sulfuric acid to be up in 2024, but cautious about macro-economic headwinds in the second half of 2024. Focused on manufacturing effici
Slide 15: Appendix
APPENDIX
Slide 16: Annual Segment Sales, Adjusted EBITDA and Margins
Annual Segment Sales, Adjusted EBITDA and Margins Trailing Twelve Months Ended (TTM) Year Ended December 31, ($ in millions, except %) June 30, 2024 2023 2022 2021 2020 Sales: Ecoservices 584.5 584.8 702.5 500.5 401.9 Advanced Silicas 104.9 106.3 117.7 110.7 94.0 Total sales 689.4 691.1 820.2 611.2
Slide 17: Ecoservices: North American Leader in Sulfuric Acid Recycling
Ecoservices: North American Leader in Sulfuric Acid Recycling and Related Services with Key Competitive Position in Gulf Coast and California ANTICIPATED FUTURE GROWTH FACTORS • Existing customer re-contracting, and favorable alkylate fundamentals expected to drive growth for regeneration services •
Slide 18: Advanced Materials & Catalysts: Global Leader in Tailored Catalyst Solutions
Advanced Materials & Catalysts: Global Leader in Tailored Catalyst Solutions ANTICIPATED FUTURE GROWTH FACTORS • Preferred technology and increasing product offerings for strengthening & light weighting of materials projected to drive growth in polyethylene catalysts • Growing demand for sustainable
Slide 19: Quarterly Segment Sales, Adjusted EBITDA and Margins
Quarterly Segment Sales, Adjusted EBITDA and Margins Six Months Six Months Three Months Ended Ended Three Months Ended Ended ($ in millions, except %) March 31, 2024 June 30, 2024 June 30, 2024 March 31, 2023 June 30, 2023 June 30, 2023 Sales: Ecoservices 141.6 153.9 295.6 137.8 158.1 295.8 Advanced
Slide 20: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Sales Advanced Advanced (in $ millions and %) Ecovyst Ecoservices Silicas Ecovyst Ecoservices Silicas Sales: $ % $ % $ % $ % $ % $ % Volume 15.5 8.4 12.8 8.1 2.7 10.4 31.4 9.8 33.1 11
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Months Ended TTM Year Ended December 31, December 31, December 31, December 31, ($ in millions, except %) June 30, 2024 June 30, 2024 2023 2022 2021 2020 Reconciliation of net income to Adjusted EBITDA Net income 8.3 56.1 71.2 69.8 1.8 54.3 Provi
Slide 22: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Twelve Months Three Months Ended TTM Three Months Ended Ended March 31, June 30, June 30, March 31, June 30, September 30, December 31, December 31, ($ in millions, except %) 2024 2024 2024 2023 2023 2023 2023 2023 Reconciliation of net income (loss) t
Slide 23: Descriptions for reconciliation of Non-GAAP financial measures
Descriptions for reconciliation of Non-GAAP financial measures (a) We use Adjusted EBITDA as a performance measure to evaluate our financial results. Because our Advanced Materials & Catalysts segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% propor
Slide 24: Adjusted Free Cash Flow
Adjusted Free Cash Flow Full Year Six months ended ($ in millions) 2023 June 30, 2024 Net cash provided by operating activities 137.6 46.4 Less: Purchases of property, plant and equipment1 65.3 36.6 Free Cash Flow 72.3 9.8 Cash paid for debt financing costs included in cash from operating activities
Slide 25: Cash Conversion & Leverage
Cash Conversion & Leverage Cash Conversion TTM ($ in millions, except %) 2020 2021 2022 2023 Q2 2024 Adjusted EBITDA 192.6 227.6 276.8 259.9 240.1 1 Less: Capex 54.5 66.4 59.5 65.3 66.2 Cash Conversion 138.1 161.2 217.5 194.6 173.9 Cash Conversion %2 72% 71% 79% 75% 72% Net Debt Leverage Ratio ($ in
Slide 26: Accelerating the transition to a sustainability-driven future
Accelerating the transition to a sustainability-driven future