Ecovyst Inc. · NYSE:ECVT
Ecovyst — Loop Capital Markets' 2023 Investor Conference
26 slides from Ecovyst's conference presentation, Mar 14, 2023
Slide 1: Loop Capital Markets' 2023 Investor Conference
Loop Capital Markets' 2023 Investor Conference March 14, 2023 YOUR CATALYST FOR POSITIVE CHANGE ™
Slide 2: Legal Discussion
Legal Discussion Continuing Operations Financial results are presented on a continuing operations basis, which excludes the Performance Materials business and Performance Chemicals business unless otherwise indicated. Forward-Looking Statements Some of the information contained in this presentation,
Slide 3: Legal Discussion Continued
Legal Discussion Continued 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 est
Slide 4: Ecovyst Business Profile & Value Proposition
Ecovyst Business Profile & Value Proposition An Industry-leading Provider of Specialty Catalysts and Services into Key End Uses • Favorable organic growth trends driven by end use demand and growing need for sustainable products and services • Significant revenue visibility arising from customer col
Slide 5: Q4 2022 Key Highlights
Key Highlights Q4 2022 Key Highlights 8% 9% 79% Sales Growth Adj. EBITDA Growth Cash vs. Q4 20211 vs. Q4 20211,2 Conversion2,3,4 2.8x #1 or #2 $171 Mln Net Debt Leverage Supply Share Position Liquidity6 Ratio2,5 1. Sales change percentage includes proportionate 50% share of sales from Zeolyst Joint
Slide 6: Ecovyst Reporting Segments
Ecovyst Reporting Segments Catalyst Ecoservices Technologies 2022 Sales $703 Million $250 Million2 2022 Adjusted $228 Million $78 Million EBITDA1 Regeneration Treatment Catalyst Silica Catalysts Zeolyst International Virgin Sulfuric Acid Services Services Activation (100% Ownership) (50% Ownership)3
Slide 7: Catalyst Technologies industry trends and 2023 demand drivers
Key Industry trends remain favorable for anticipated growth in 2023 despite volatile macro economics and recessionary concerns 2022 Industry End Key Total Growth 2023 Anticipated Demand Drivers Use Products Sales1 Rate Gasoline demand driven by commuters, exports to Regeneration TREATMENT LatAm; uti
Slide 8: Sustainability Focus
Sustainability Focus Ecoservices • Largest North American recycler of spent sulfuric acid, avoiding 1.5 million tons per year of landfill or deep well disposal. • One of the largest consumers of refinery spent sulfur, converting for other uses • Converts by-product steam into 17MW/h of electricity u
Slide 9: Ecovyst At a Glance
Ecovyst At a Glance Ecovyst Ecovyst is a leading, integrated provider of specialty catalysts and by the numbers services. Through our Ecoservices and Catalyst Technologies businesses, we deliver chemistry-based technologies and solutions that help our customers meet the increasing demand for high-pe
Slide 10: Financial Performance – Fourth Quarter and Full Year 2022
Financial Performance – Fourth Quarter and Full Year 2022 Fourth Quarter Financial Results Fourth Fourth $ % Quarter Quarter $ % ($ in millions) Change Change ($ in millions) 2022 2021 Change Change Sales Change Factors3 Ecovyst Sales 182.8 170.2 12.6 7.4 Volume (17.6) (10.3) Zeolyst JV Sales 39.9 3
Slide 11: Ecoservices – Q4 2022 Financial Performance
Ecoservices – Q4 2022 Financial Performance Fourth Fourth Quarter Quarter $ % ($ in millions) 2022 2021 Change Change Ecoservices Sales 159.8 142.0 17.8 12.5 Adjusted EBITDA1 54.4 52.3 2.0 3.9 Adjusted EBITDA Margin1 (%) 34.0 36.8 Ecoservices Highlights • Fourth quarter sales reflect higher pricing,
Slide 12: Catalyst Technologies – Q4 2022 Financial Performance
Catalyst Technologies – Q4 2022 Financial Performance Fourth Fourth Quarter Quarter $ % ($ in millions) 2022 2021 Change Change Silica Catalysts Sales 23.0 28.2 (5.2) (18.4) Zeolyst JV Sales 39.9 36.3 3.6 9.9 Adjusted EBITDA1 20.3 23.4 (3.1) (13.2) Adjusted EBITDA Margin1,2 (%) 32.3 36.3 Catalyst Te
Slide 13: Cash, Leverage & Liquidity
Cash, Leverage & Liquidity Strong Cash Conversion Provides for Capital Allocation Flexibility and Improving Leverage Profile ($ millions) Cash Conversion1 Net Debt Leverage Liquidity3 Ratio2 $236 79% 3.3x $137 mm of share 71% 72% 71% repurchases $203 $207 $199 3.1x $171 2.8x 2.8x 2.8x 2019 2020 2021
Slide 14: Balanced Capital Allocation Strategy
Balanced Capital Allocation Strategy to Support Growth Initiatives and Drive Shareholder Return Strong free cash flow generation provides financial flexibility and supports a balanced capital allocation strategy focused on: Cash Flow from Operations • Operational improvements & organic growth Less:
Slide 15: Appendix
APPENDIX
Slide 16: Annual Segment Sales, Adjusted EBITDA and Margins
Annual Segment Sales, Adjusted EBITDA and Margins Year Ended December 31, ($ in millions, except %) 2022 2021 2020 2019 Sales: Ecoservices 702.5 500.5 401.9 447.1 Silica Catalysts 117.7 110.7 94.0 85.7 Total sales 820.2 611.2 495.9 532.8 Zeolyst Joint Venture sales 132.6 131.3 128.6 170.3 Adjusted E
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 NEAR-TERM GROWTH FACTORS • Existing customer re-contracting, and favorable alkylate fundamentals expected to drive growth for regeneration services • Rising v
Slide 18: Catalyst Technologies: Global Leader in Tailored Catalyst Solutions
Catalyst Technologies: Global Leader in Tailored Catalyst Solutions NEAR-TERM GROWTH FACTORS • Preferred technology and increasing product offerings for strengthening & light weighting of materials projected to drive growth in polyethylene catalysts • Growing demand for renewable fuels • Increasing
Slide 19: Quarterly Segment Sales, Adjusted EBITDA and Margins
Quarterly Segment Sales, Adjusted EBITDA and Margins Twelve Twelve Months Months Three Months Ended Ended Three Months Ended Ended March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, December 31, December 31, ($ in millions, except %) 2022 2022 2022 2022 2022
Slide 20: Sales and Adjusted EBITDA Major Change Factors
Sales and Adjusted EBITDA Major Change Factors Sales Three Months Ended December 31, 2022 Twelve Months Ended December 31, 2022 Sales Silica Silica (in $ millions and %) Ecovyst Ecoservices Catalysts Ecovyst Ecoservices Catalysts Sales: $ % $ % $ % $ % $ % $ % Volume (17.6) (10.3) (14.1) (9.9) (3.5)
Slide 21: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA Year Ended December December December December ($ in millions) 31, 2022 31, 2021 31, 2020 31, 2019 Reconciliation of net income (loss) from continuing operations to Adjusted EBITDA Net income (loss) from continuing 1.8 54.3 31.1 operations 69.8
Slide 22: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA Twelve Twelve Months Months Three Months Ended Ended Three Months Ended Ended March 31, June 30, September December December March June 30, September December 31, December ($ in millions, except %) 2022 2022 30, 2022 31, 2022 31, 2022 31, 2021 2
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 the Catalyst Technologies segment includes our 50% interest in the Zeolyst Joint Venture, we include an adjustment for our 50% proportionate sh
Slide 24: Adjusted Free Cash Flow
Adjusted Free Cash Flow Full Year Full Year ($ in millions) 20211 2022 Cash Flow from Operations before interest and tax 200.7 247.5 Less: Cash paid for taxes 11.8 25.5 Less: Cash paid for interest2 59.0 35.4 Cash Flow from Operations 129.9 186.6 Less: Purchases of property, plant and equipment3 91.
Slide 25: Cash Conversion, Liquidity, Leverage
Cash Conversion, Liquidity, Leverage Cash Conversion ($ in millions, except %) 2019 2020 2021 2022 Adjusted EBITDA 240.2 192.6 227.6 276.8 Less: Capex1 70.3 54.5 66.4 58.4 Cash Conversion 169.9 138.1 161.2 218.4 Cash Conversion %2 71% 72% 71% 79% Liquidity Q4 Q1 Q2 Q3 Q4 ($ in millions) 2021 2022 20
Slide 26: Growing + Greening
Growing + Greening YOUR CATALYST FOR POSITIVE CHANGE ™
Ecovyst — Loop Capital Markets' 2023 Investor Conference on 6ix