Westlake : IR Presentation Q3 2024

WLK

Focused Approach to Delivering Value and Growth

Westlake Overview

A leading producer of performance oriented and essential materials as well as North American building products that benefits from a globally competitive low-cost position

Financial Performance

LTM Sep 30th, 2024

$12.1B

19%

Revenue

EBITDA Margin(1,2)

$2.3B

$1.7B

EBITDA(1)

Net Income (1)

Balance Sheet & Cash Flow

LTM Sep 30th, 2024

0.75x

$1.5B

Net Debt to EBITDA(1)

Operating Cash Flows

~16 Years

64%

Avg. Debt Maturity

Cash Flow Conversion(3)

80+

15,920

~16%

Manufacturing

Employees

Sales CAGR

Facilities

(1986-2023)

Sales Breakout

36%

PEM

22%

N. America

78%

64% Segment

Region

International

HIP

Strong Financials and Balance Sheet With Leadership Positions Across Several End Markets

Leveraging Market Leading Segments in Attractive Markets

Housing &

Performance &

Infrastructure

Essential Materials

$4.3B

Revenue

(LTM 3Q'24)

Key Stats

24%(2)

EBITDA

Margin (LTM

3Q'24)

50+

Manufacturing

Sites

$7.8B

Revenue

(LTM 3Q'24)

Key Stats

15%(1,2)

EBITDA

Margin (LTM

3Q'24)

30

Production

Sites

Leadership Positions

HIP Segments

N.A. Building Products

Housing (~$3.6B)

#1 Premium PVC & Poly-ash Trim

• Building Products

#1 Non-wood Shutters

• Residential Pipe, Fittings, and

#3 PVC and Premium Siding

Global Compounds

N.A. PVC Markets

• Recycled Consumer Products

#1 PVC Compounds

#2 PVC Pipe and Fittings

Infrastructure (~$0.7B)

N.A. Roofing

• Infrastructure Pipe and Fittings

#1 Clay and Concrete Tile

• Medical and Automotive Markets

#1 Composite Roofing

#2 Stone Coated Metal Roofing

N.A. Stone and Windows

#1 Architectural Stone Veneer

#2 Texas New Construction Windows

Leadership Positions

Chlorovinyls

#1 Global Combined Chlorovinyls

#2 Global Chlor-Alkali, PVC, and

Specialty PVC

Polyethylene

#1 Specialty Co-Polymer and

N.A. Autoclave Polyethylene

#2 N.A. Low Density Polyethylene

Epoxy

#1 Specialty for Wind Energy

#2 Specialty for European Aerospace #2 Specialty for N.A. Automotive #2 N.A & European Liquid

Epoxy Resin

PEM Segments

Performance (~$4.6B)

Essential (~$3.2B)

Source: Chemical Market Analytics.

3

(1)

Excludes "Identified Items" consisting of a $475 million non-cash impairment charge, a $150 million charge to fully resolve certain claims and $75 million of mothball costs See pages 30-35 for a reconciliation

(2)

EBITDA Margin is EBITDA excluding identified items divided by Net External Sales

High Degree of Product Integration

Combined With Globally Advantaged Low-Cost Position

North America has a long-term cost advantaged position through abundant supply of Ethane from shale, electricity from natural gas and ample salt compared to global markets

Integration from feedstock to final product captures margin across the production chain and throughout the

All ethane feedstock capability

Ethylene

4.8B lbs

North American

Merchant

Ethylene

Purchases

Polyethylene

2.6B lbs

Styrene

570M lbs

Vinyls

End Market Products that Improve Lives Every Day:

Flooring

Artificial leather

Roofing

Fencing

economic cycle enhancing margin stability

Westlake products serve key market trends in:

Chlorine

7.4B lbs

~1.1B lbs

PVCHIP

7.8B lbs

Products

Wallpaper

Decking

Films

Siding

Coating

Pipe

• Automotive

Caustic

Base Epoxy Resins

Soda

and Intermediates

8.1B lbs

1.3B lbs

Chlorinated Products

2.2B lbs

Epoxy Specialty Resins

580M lbs

Pulp & paper

Glass

Alumina

Wind power

Aviation

Automotive

Coatings

4

Benefits of Integrated HIP and PEM Portfolio

More Stability in Earnings and Cashflow

Enhances Product Innovation Across Both Segments

Westlake's Cashflow Profile Supports Strategic Growth

HIP Creates New Opportunities In Which to Apply Proven M&A Skills

Performance & Essential Materials

Combined Segments Offer Lower

Volatility and Greater Reliability to

Westlake Investors and Customers

Housing & Infrastructure Products

5

Westlake is a Compelling Investment Opportunity

1

2

3

4

5

Strong and experienced leadership with a proven track record of operating excellence, asset allocation, and successful acquisitions and integrations all driving long-term value creation

Market leading position in Housing & Infrastructure Products (HIP) driving strong customer selection from high-valued, strong brand name product offerings with attractive long term fundamentals in housing, repair & remodeling, and infrastructure markets

Capturing margins across the value chain in Performance and Essential Materials (PEM) by leveraging its leading market positions, globally advantaged feedstock and energy cost, and the benefits of vertical integration

Well positioned to execute on a portfolio of opportunities across both segments by leveraging a proven system of operational excellence and value creative capital allocation

Disciplined investment culture and a strong balance sheet provide the ability to weather economic cycles and generate strategic bottom line growth

6

HIP At-a-Glance: Diverse Portfolio with

Broad Market Exposure In Which Every Piece Matters

$4.3B HIP Total Revenue1

$3.6B

Housing

Siding, Trim, & Shutters

Premium housing siding

Roofing

Premium clay, composite, concrete, and

stone-coated metal roofing

Decorative Stone

• Exterior and interior premium

decorative stone

Windows

New construction windows

Pipe & Fittings

Fresh water

PVC Compounds

Electrical

$0.7B

Infrastructure

Pipe & Fittings

• Fresh water and sewer

Agriculture irrigation

PVC Compounds

Automotive and aerospace

Medical

Westlake Royal Building Products' revenue, which is all Housing-related, comprises approximately half of HIP's annual revenue

Westlake Pipe & Fittings' revenue, which is both Housing- and Infrastructure-related, is the next largest component of HIP's annual revenue

Westlake Global Compounds' revenue is both Housing- and Infrastructure-related

~21,800

45

70

34

~62,000

~8,100

Customers (2)

Distribution

Manufacturing

Market Segment /

SKUs

Employees

Centers

Sites

Product Categories

(1)

Revenue is for the twelve-month period ended September 30, 2024

7

(2)

Current data for Westlake Housing and Infrastructure Products ("HIP")

Westlake Royal Building Products At-A-Glance

~18,000

Customers2

41

Manufacturing

Sites

20

Market Segment / Product Categories

~30,400

SKUs

~5,300

Employees

Growth Drivers

o

Work from home

o

Outdoor living

CONSTRUCTION VS. REMODEL

New

Residential

50% Revenue1 50%

Construction

Repair &

Remodel

ONE-STEP VS. TWO-STEP DISTRIBUTION

• Replacing alternative products due to significant

competitive differentiators

o Curb appeal

29%

Revenue1

One-Step

Two-Step

71%

8

Westlake Pipe and Fittings At-a-Glance

~2,700

Customers3

15

Distribution

Centers

15

Manufacturing

Sites

6

Market

Segments

>30,000

SKUs

~1,700

Employees

North American Growth Drivers

Municipal and Government spending for infrastructure enhancement

Historical under build in new housing + favorable demographics: John Burns estimates 18.6M new houses needed in U.S. over next 10 years1

Growing demand for agricultural irrigation

Strategic Footprint

Approximate Areas

Pipe MFG

Fittings MFG

of High Single-Family

Permits Growth2

Distribution

9

Westlake Global Compounds At-a-Glance

1,605

Compounds2

12

R&D

Facilities

60

Countries

Served

14

Manufacturing

Sites

1,150

Customers

~1,100

Employees

Developer of specialty compounds providing highly customizable solutions to specific customer challenges

Attractive end markets, including building products, industrial products, consumer goods, automotive, and healthcare

Competitive advantages:

Revenue1

46% Geography1 54% US

International

11%

1%

Building Products

12%

End

Automotive

Markets1

Healthcare

Other

76%

10

Disclaimer

Westlake Chemical Corporation published this content on November 11, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 11, 2024 at 20:21:01.140.