Orion S A : OEC Q1 2024 Earnings Call Slides

2024

1Q Earnings Conference Call

May 3, 2024

Forward-Looking Statements

Forward-Looking Statements

This presentation contains and refers to certain forward-looking statements with respect to our financial condition, results of operations and business. These statements constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among others, statements concerning the potential exposure to market risks, statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions and statements that are not limited to statements of historical or present facts or conditions. Forward-looking statements are typically identified by words such as "anticipate," "assume," "assure," "believe," "confident," "could," "estimate," "expect," "intend," "may," "plan," "objectives," "outlook," "probably," "project," "will," "seek," "target" "to be," and other words of similar meaning.

These forward-looking statements include, without limitation, statements about the following matters: • our strategies for (i) maintaining or strengthening our position in Specialty Carbon Black or Rubber Carbon Black, (ii) maintaining or increasing our Specialty or Rubber Carbon Black margins and (iii) maintaining or strengthening the competitiveness of our operations; • our profit and cash flow projections; • the outcome of any in-progress, pending or possible litigation or regulatory proceedings; the expectations regarding environmental-related costs and liabilities; • the expectations regarding the performance of our industry and the global economy, including foreign currency rate fluctuations; • the sufficiency of our cash on hand, cash provided by operating activities and borrowings to pay our operating expenses, satisfy our debt obligations and fund Capital expenditures; • the ability to pay dividends; • our anticipated spending on, and the timely completion and anticipated impacts of, capital projects including growth projects and the construction of new plants; • our projections and expectations for pricing, financial results and performance in 2024 and beyond; • the status of contract negotiations with counterparties and the impact of new contracts on our business; and our expectation that the markets we serve will continue to demand our products.

All these forward-looking statements are based on estimates and assumptions that, although believed to be reasonable, are inherently uncertain. Therefore, undue reliance should not be placed upon any forward-looking statements. There are important factors that could cause actual results to differ materially from those contemplated by such forward-looking statements. These factors include, among others: • possible negative or uncertain worldwide economic conditions and developments; • the volatility and cyclicality of the industries in which we operate; • the operational risks inherent in chemicals manufacturing, including disruptions due to technical facilities, severe weather conditions or natural disasters; • our dependence on major customers and suppliers; • unanticipated fluctuations in demand for our products, including due to factors beyond our control; • our ability to compete in the industries and markets in which we operate; • changes in the nature of transportation in the future, which may impact our customers and our business; • our ability to successfully develop new products and technologies; • the availability of substitutes for our products; • our ability to implement our business strategies; • our ability to respond to changes in feedstock prices and quality; • our ability to realize benefits from investments, joint ventures, acquisitions or alliances; our ability to negotiate satisfactory terms with counterparties, the satisfactory performance by such counterparties of their obligations to us, as well as our ability to meet our performance obligations towards such counterparties; • our ability to realize benefits from planned plant capacity expansions and site development projects and the impacts of potential delays to such expansions and development projects; • any information technology systems failures, network disruptions and breaches of data security; • our relationships with our workforce, including negotiations with labor unions, strikes and work stoppages; • our ability to recruit or retain key management and personnel; • our exposure to political or country risks inherent in doing business globally; • any and all impacts from the Russia-Ukraine war and the Hamas-Israel conflict and/or any escalation thereof related energy costs, raw material availability or other economic disruptions; • geopolitical events in the United States ("U.S."), Middle-East, European Union ("EU") and China, relations amongst Western countries and their neighbors as well as future relations between the U.S., EU, China and other countries and organizations; • all environmental, health and safety laws and regulations, including nanomaterial and greenhouse gas emissions regulations, and the related costs of maintaining compliance and addressing liabilities; • any possible future investigations and enforcement actions by governmental, supranational agencies or other organizations; • our operations as a company in the chemical sector, including the related risks of leaks, fires and toxic releases as well as other accidents; • any market and regulatory changes that may affect our ability to sell or otherwise benefit from co-generated energy; • any litigation or legal proceedings, including product liability, environmental or asbestos related claims; • our ability to protect our intellectual property rights and know-how; • our ability to generate the funds required to service our debt and finance our operations; • any fluctuations in foreign currency exchange and interest rates; • the availability and efficiency of hedging; • any changes in international and local economic conditions, dislocations in credit and capital markets and inflation or deflation; • any potential impairments or write- offs of certain assets; • any required increases in our pension fund or retirement-related contributions; • the adequacy of our insurance coverage; • any changes in our jurisdictional earnings mix or in the tax laws or accepted interpretations of tax laws in those jurisdictions; • any challenges to our decisions and assumptions in assessing and complying with our tax obligations; • the potential difficulty in obtaining or enforcing judgments or bringing legal actions against Orion S.A. (a Luxembourg incorporated entity) in the U.S. or elsewhere outside Luxembourg; and • any current or future changes to disclosure requirements and obligations, including but not limited to new ESG-related disclosures, related audit requirements and our ability to comply with such obligations and requirements.

Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include those factors detailed under the captions "Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995" and "Risk Factors" in our Annual Report in Form 10-K for the year ended December 31, 2023 and in Note Q. Commitments and Contingencies to our audited Consolidated Financial Statements regarding contingent liabilities, including litigation. It is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement - as a result of new information, future events or other information, other than as required by applicable law.

2

1Q Highlights

Reaffirming 2024 guidance

First Quarter Results

• Adjusted EBITDA $85 million
• Adjusted diluted EPS $0.52
• Rubber margins up versus prior year average reflecting pricing gains despite challenging regional mix
• Strong sequential improvement in Specialty gross profit margins

Reaffirming 2024 Guidance

• Adjusted EBITDA $340M-$360 million
• Adjusted diluted EPS $2.05 per share - $2.20 per share
• Up 5% and 11% respectively

On track:

• La Porte project start-up in mid-2025
• 2025 mid-cycle capacity of ~$500M Adjusted EBITDA
• Industry restructuring continues

3

LaPorte Plant Groundbreaking

• Will be the only facility in the North America producing acetylene-based conductive additives to support the global shift to electrification
• Facility start-up expected in the second quarter of 2025
• Dramatically reduced CO2 footprint than traditional conductive grades (1/10th of normal production)

4

1Q Performance

Key Drivers

• Volume increased year-over-year in both segments, primarily in Europe and China
• Gross Profit per ton decreased due to prior and current year timing, weaker North American rubber volume and higher fixed costs
• Adjusted EBITDA decreased due to lower gross profit per ton

($ in millions)

Metric (1)	1Q24	1Q23	Y/Y	4Q23	Seq
Volume (kmt)	248.4	233.5	6.4%	226.2	9.8%
Revenue	$502.9	$500.7	0.4%	$468.2	7.4%
Gross Profit	$122.2	$136.4	(10.4)%	$87.3	40.0%
Gross Profit/ton (2)	$491.9	$584.2	(15.8)%	$385.9	27.5%
Adj. EBITDA	$85.3	$101.1	(15.6)%	$66.6	28.1%
Adj. EBITDA Margin (2)	17.0%	20.2%	-320bps	14.2%	280bps
Adjusted Net Income	$30.8	$45.1	31.7	$9.8	214.3%
Adjusted Diluted EPS	$0.52	$0.74	$(0.22)	$0.17	$0.35

1. See Appendix for reconcilliation of non-GAAP measures to the most directly comparable US-GAAP measure
2. See "Non-GAAP Financial Measures" for definitions of margin and per ton measures

5

Key Financial Metrics

1Q 2024 Key Performance Drivers

• Volume improvement reflects increased demand in most regions and applications
• Price/mix increase driven by contractual price improvements in rubber, offset by regional mix
• Cost comparison impacted by the lag in passing through cost changes, non- repeating items, higher labor and operating costs as well as lower cogeneration pricing

Adjusted EBITDA

($ in millions)

			22.3
101.1		3.8			Costs
2.0
			Co-gen
				0.7	85.3
Q1 23	Volume	Price/Mix	Costs	FX	Q1 24

6

Rubber

Business

Results

1Q Key Performance Drivers

• Volume increased in Europe and China, partially offset by lower demand in the Americas
• Gross profit decreased on lower North American volume and timing effects that were positive last year
• Gross profit per ton of $435 was above last year's average of $409, reflecting the successful pricing cycle

Metric	1Q 24	1Q 23	Y/Y	4Q 23	Seq
Volume (kmt)	185.1	180.5	2.5%	171.3	8.1%
Revenue	$332.0	$338.7	(2.0)%	$319.5	3.9%
Gross Profit	$80.5	$84.3	(4.5)%	$60.3	33.5%
Gross Profit/ton (1)	$434.9	$467.0	(6.9)%	$352.0	23.5%
Adj. EBITDA	$57.4	$63.8	(10.0)%	$49.2	16.7%
Adj. EBITDA/ton (1)	$310.1	$353.5	(12.3)%	$287.2	8.0%
Adj. EBITDA Margin (1)	17.3%	18.8%	-150bps	15.4%	190bps
($ in millions)

Quarterly (TTM) Gross Profit Per Ton

$450					$372	$403	$409	$409	$401
$400
			$336
$350
	$283	$306
$283
$300
$250
$200
$150
$100
$50
$-
Q1 22	Q2 22	Q3 22	Q4 22	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
(1) See "Non-GAAP Financial Measures" for definitions of margin and per ton measures			7

Rubber
Business			($ in millions)
Results			Adjusted EBITDA - Rubber
63.8			5.8		Costs
			6.0	4.9			Co-gen
1Q Key Performance Drivers
						0.5	57.4
•	Improved contract pricing was
	primarily offset by lower North
	American volume and higher costs
•	Costs were impacted by lower
	cogeneration pricing and higher
	fixed costs
		Q1 23	Volume	Price/Mix	Costs	FX	Q1 24	8

Specialty

Business

Results

1Q Key Performance Drivers

• Volume increased across all regions and market segments
• Gross profit per ton year over year decreased primarily due to prior year timing and non-repeating items, as well as higher fixed costs
• All metrics rebounded sequentially

Metric			1Q 24	1Q 23	Y/Y		4Q 23	Seq
Volume (kmt)			63.3	53.0	19.4%		54.9	15.3%
Revenue				$170.9	$162.0	5.5%		$148.7	14.9%
Gross Profit			$41.7	$52.1	(20.0)%	$27.0	54.4%
Gross Profit/ton(1)			658.8	$983.0	(33.0)%	$491.8	33.9%
Adj. EBITDA			$27.9	$37.3	(25.2)%	$17.4	60.3%
Adj. EBITDA/ton (1)			$440.8	$703.8	(37.4)%	$316.9	39.1%
Adj. EBITDA Margin (1)		16.3%	23.0%	-670bps	11.7%	460bps
($ in millions)
			Quarterly (TTM) Gross Profit Per Ton
$1,000			$841	$853	$895	$922	$862
$900		$784			$802
						$724
$800									$647
$700
$600
$500
$400
$300
$200
$100
$-
	Q1 22	Q2 22	Q3 22	Q4 22	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24

(1) See "Non-GAAP Financial Measures" for definitions of margin and per ton measures

9

Specialty

Business

Results

1Q Key Performance Drivers

• Volume increased across all regions, and markets
• Costs increased due to favorable timing and non-repeating items last year combined with adverse timing this year, as well as higher operating and labor costs

Adjusted EBITDA - Specialty

($ in millions)

		1.1	16.5
	8.0				Costs
37.3					Co-gen
				0.2	27.9
Q1 23	Volume	Price/Mix	Costs	FX	Q1 24
					10