stifel virtual cross sector insight conference

Stifel Virtual Cross Sector Insight Conference

June 8, 2021

2

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 developments that our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements may be identified by words such as "expect," "anticipate," "estimate," “outlook,” "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should" and "believe" and other variations or similar terminology and expressions. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and difficult to predict, which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: general economic and financial conditions in the U.S. and globally, including the impact of the coronavirus (COVID-19) pandemic; the scope and duration of the pandemic and pace of recovery; the timing of the distribution and efficacy of vaccines or treatments for COVID-19 that are currently available or may be available in the future; the severity of newly identified strains of COVID-19; governmental, business and individuals’ actions in response to the pandemic, including our business continuity and cash optimization plans that have been, and may in the future be, implemented; the impact of social and economic restrictions and other containment measures taken to combat virus transmission; the effect on our customers’ demand for our products and our suppliers’ ability to manufacture and deliver our raw materials, including implications of reduced refinery utilization in the U.S.; our ability to sell and provide our goods and services, including as a result of travel and other COVID-19-related restrictions; the ability of our customers to pay for our products; and any closures of our and our customers’ offices and facilities; risks associated with increased phishing, compromised business emails and other cybersecurity attacks and disruptions to our technology infrastructure; risks associated with employees working remotely or operating with a reduced workforce; risks associated with our indebtedness including compliance with financial and restrictive covenants, and our ability to access capital on reasonable terms, at a reasonable cost or at all due to economic conditions resulting from COVID-19 or otherwise; the impact of scheduled turnarounds and significant unplanned downtime and interruptions of production or logistics operations as a result of mechanical issues or other unanticipated events such as fires, severe weather conditions, natural disasters and pandemics including the COVID-19 pandemic; price fluctuations, cost increases and supply of raw materials; our operations and growth projects requiring substantial capital; growth rates and cyclicality of the industries we serve including global changes in supply and demand; failure to develop and commercialize new products or technologies; loss of significant customer relationships; adverse trade and tax policies; extensive environmental, health and safety laws that apply to our operations; hazards associated with chemical manufacturing, storage and transportation; litigation associated with chemical manufacturing and our business operations generally; inability to acquire and integrate businesses, assets, products or technologies; protection of our intellectual property and proprietary information; prolonged work stoppages as a result of labor difficulties or otherwise; cybersecurity, data privacy incidents and disruptions to our technology infrastructure; failure to maintain effective internal controls; disruptions in transportation and logistics; our inability to achieve some or all of the anticipated benefits of our spin-off including uncertainty regarding qualification for expected tax treatment; fluctuations in our stock price; and changes in laws or regulations applicable to our business. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our filings with the Securities and Exchange Commission (SEC), including the risk factors in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020, as updated in subsequent reports filed with the SEC.

Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures intended to supplement, not to act as substitutes for, comparable GAAP measures. Reconciliations of non-GAAPfinancial measures to GAAP financial measures are provided in this presentation, except with respect to forward-looking non-GAAP measures, where such reconciliation is notavailable without unreasonable effort. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided. Non-GAAPmeasures in this presentation may be calculated in a way that is not comparable to similarly-titled measures reported by other companies.

*Certain slides reflect 1Q 2021 earnings presentation dated April 30, 2021

3

Chemical

Intermediates:

$369M

AdvanSix At A GlanceLeading Producer of Nylon Solutions, Chemical Intermediates, and Plant Nutrients

Customers

By Product By Region

Top 10

• Top 10 customers span all product categories

• Most sales contracts have 1-2 year terms with

standard renewal / notice provisions

• Customer relationships strong – long-standing

relationships spanning decades

• Primarily mitigate commodity price risk

through formula price agreements

All

Others

Direct Raw Material Spend

Cumene

2020 Revenue Breakdown

• Security of direct materials through

multiple supplier contracts

• Pricing tracks key commodity inputs

Sulfur

Natural

Gas

Other

Key Inputs

73%

13%

12%Nylon:

$285M

Ammonium

Sulfate:

$288M

Caprolactam:

$216M

United States: $891M

LatAm/Canada:

$140M

Asia: $69M

EMEA: $58M

43%57%

• NYSE: ASIX

• Spin-off from Honeywell:

October 1, 2016

• Market Cap: ~$900M (1)

• 2020 Revenue: ~$1.2B

• Employees: ~1,400

• Three U.S. Manufacturing Sites

Profile

(1) As of June 1, 2021

76%

10%

6%8%

By End Market

Building &

Construction

Ag /

Fertilizer

Solvents

Packaging

Coatings,

Adhesives

Other

4

Portfolio OverviewLeading North American Position Across Industries Served

Nylon Ammonium Sulfate Chemical Intermediates

% of Total

Sales

Description

Products

End-Use

Applications

43% 25% 32%

Vertically integrated producer with

industry-leading cost position

Key co-product portfolio delivering

on sulfur nutrition value proposition

High quality products serving

diverse end market needs

Caprolactam (Flake and Molten)

Nylon 6 Resin

Nylon 6/66 Copolymer Resin

Nylon Films

Ammonium Sulfate fertilizer

– Granular

– Mid-grade

– Standard

Packaged Ammonium Sulfate

Acetone

Phenol

Cyclohexanone

Cyclohexanol

Ammonia

Alpha-Methylstyrene

Oximes

Sulfuric Acid

Carbon Dioxide

Carpets

Plastics

Packaging

Textiles

Other

Paints /

Coatings

Adhesives

Electronics

Other

Construction

Materials

Engineered Resins

Pharmaceuticals

Crop and lawn/turf fertilizer

5

Investment Highlights

• Vertical integration and scale

• Advantaged location – raw materials, access to high value end markets

• Co-product net back optimization

Sustainable Low Cost Position

• Over 50% of revenue from non-nylon adjacent products with dedicated assets, supply chains and sales and marketing resources

• ~400 customers in 50+ countries; Long-standing relationships spanning decades

Diverse Revenue Sources And Strong Customer Relationships With Global Reach

• Operational excellence key to driving safe, stable operations and higher returns

• Focus on growth-oriented R&D while maintaining manufacturing technology excellence

Continuous Investment In Operations, R&D, And Technology

2021 Priorities1. Enhance day-to-day execution by strengthening our culture and core foundations of excellence

2. Improve through-cycle profitability by driving superior operational and commercial performance

3. Enable sustainable long-term growth by enhancing portfolio resiliency

4. Enhance value creation through disciplined capital stewardship

6

Vertically Integrated Manufacturing SitesCompetitive Advantage Derived from Significant Scale, Integration and Diverse Revenue Streams

Frankford Plant Hopewell Plant Chesterfield Plant

• One of world’s largest single-site producers of Caprolactam and Ammonium Sulfate fertilizer

• Capacity: 795M lbs Caprolactam

▪ 3.3B lbs Ammonium Sulfate

▪ 600 KMT Ammonia

CPL• Second largest U.S. site for Nylon

6 production

• Resins in wide range of viscosities and specifications

• Capacity: 440M lbs Nylon 6 Resin

NaturalGas

Phenol

Sulfur

• Second largest producer of Phenol and Acetone in North America

• Acquired in 2011 from Sunoco

• Capacity: 1.1B lbs Phenol

▪ 680M lbs Acetone

Cumene Nylon Resin

Sulf-N® Ammonium Sulfate Fertilizer

Nadone® CyclohexanoneNaxol® Cyclohexanol

Flake & MoltenCaprolactam

Aegis® Nylon 6 ResinsPhenol, Acetone, Alpha-Methylstyrene

Raw Materials ASIX Product

Cumene is converted into Phenol, Acetone & Alpha-Methylstyrene

75%-80% of Phenol produced at Frankford transported to Hopewell

~60% of the Caprolactam produced at Hopewell shipped to Chesterfield

7

Sustainable Lowest Cost Position

• U.S. footprint provides access to world’s

lowest cost natural gas

• Access to high value end markets

Advantaged

Location

• Fully backward integrated into several key

feedstock materials

• One of world’s largest single-site producers of

Caprolactam

• Significant operating leverage

• Scale purchasing leverage

• Ammonium Sulfate and Acetone optimize

cost position

• Go to market strategy / mix management

to optimize netback

• Long-term contracts provide significant base

load

• Demand for high quality intermediates further

maximizes utilization

Vertical

Integration

Industry-

Leading

Scale

Net Back

Optimization

High

Utilization

Lowest $ / MT cost within

the industry

Cost

AdvanSix ROWChina

Global Caprolactam Supply / Cost Landscape

Global Demand Overcapacity

Capacity

Source: Wood Mackenzie, AdvanSix Management

8

• Delivered Strong 1Q21 Results to Start 2021

– Higher pricing and sales volume growth reflecting strength of our business model, portfolio diversity and improved industry conditions

– Expanded margins and generated higher earnings and cash flow while further reducing leverage levels

– Closed acquisition of certain assets of Commonwealth Industrial Services (CIS) – integration and synergy realization progressing well ahead of plan

– Outlook remains favorable – targeting record production output supporting higher earnings and robust cash flow

• Executing Against a Focused Strategy to Deliver Strong and

Sustainable Shareholder Returns Over the Long Term

– Enhance day-to-day execution by strengthening our culture and core foundations of excellence

– Improve through-cycle profitability by driving superior operational and commercial performance

– Enable sustainable long-term growth by enhancing portfolio resiliency

– Enhance value creation through disciplined capital stewardship

1Q 2021 OverviewStrong Volume Growth, Margin Improvement and Cash Flow Generation

1Q21 YoY

Variance

+24%

+92%

+510 bps

+228%

+216%

+$57M

Sales

EBITDA

EBITDA Margin

Diluted EPS

Free Cash Flow

See Appendix in this presentation for a reconciliation of EBITDA, EBITDA Margin, and Free Cash Flow, which are non-

GAAP measures; Free cash flow = net cash provided by operating activities less capital expenditures

Net Income

*Slide as of 1Q 2021 earnings presentation dated April 30, 2021

9

Cash Flow / Leverage

Robust Free Cash Flow Generation Supporting Further Reduction in Leverage

1Q21 Cash Flow ($M)

Net Income $28

Depreciation & Amortization $16

Inventories $39

Accounts Receivable ($25)

Other Working Capital ($21)

Total Working Capital* ($7)

Cash Tax Refund $12

Capital Expenditures ($14)

Accrued Liabilities / Other $8

Free Cash Flow $43

* Working Capital includes Accounts and other receivables, Inventories, Accounts payable, and Deferred income and customer advances

1.2

2.1 2.42.9 3.1

2.0 1.4

0

1

2

3

4

4Q18 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

Net Debt / Trailing 12-Month (TTM) Adjusted EBITDA Ratios

Net

Debt

/ T

TM

Adju

ste

d E

BIT

DA

TTM

Adjusted

EBITDA

$159M $142M $127M $108M $97M

Net Debt $196M $296M $309M $317M $298M $266M

$134M

Target Range

Target Range

See Appendix in this presentation for a reconciliation of Free Cash Flow, Net Debt and TTM Adjusted EBITDA, which are non-GAAP measures. Net debt

and TTM Adjusted EBITDA are calculated in accordance with the terms of the Company’s revolving credit facility. 1Q21 Net debt / TTM Adjusted

EBITDA preliminary pending submission pursuant to revolving credit facility and includes TTM pro forma results for CIS acquisition.

$234M

$162M

Slide as of 1Q 2021 earnings presentation dated April 30, 2021

10

Industry Pricing And Spreads

Sources: Tecnon Orbichem, Wood Mackenzie, Green Markets, A Bloomberg Company, and IHS Markit

($/MT) (cents per pound)

1Q21 YOY 1Q21 vs. 4Q20

Global Composite 17% 12%

Asia CPL-BNZ 53% 32%

Asia Resin-BNZ 22% 16%

1Q21 YOY 1Q21 vs. 4Q20

Corn Belt Granular AS 5% 15%

Corn Belt Urea 40% 45%

Nylon

1Q21 YOY 1Q21 vs. 4Q20

Acetone, Sm/Med Buyer 166% 47%

Acetone, Large Buyer 115% 56%

RGP Costs 167% 81%

Ammonium Sulfate Chemical IntermediatesFurther Improvement in Industry Spreads Improving Ag Fundamentals, Higher Input Costs Tight Supply and Demand Conditions

400

500

600

700

800

900

1000

800

1000

1200

1400

1600

1800

2000

Jan

-20

Fe

b-2

0

Ma

r-20

Ap

r-20

Ma

y-2

0

Ju

n-2

0

Ju

l-20

Au

g-2

0

Se

p-2

0

Oct-

20

No

v-2

0

Dec-2

0

Jan

-21

Fe

b-2

1

Ma

r-21

Avg Corn Belt AS price (granular $/ston N content basis) - Left Axis

Avg Corn Belt Urea price ($/ston N content basis) - Right Axis

0

20

40

60

80

100

120

Jan

-20

Fe

b-2

0

Ma

r-20

Ap

r-20

Ma

y-2

0

Ju

n-2

0

Ju

l-20

Au

g-2

0

Se

p-2

0

Oct-

20

No

v-2

0

Dec-2

0

Jan

-21

Fe

b-2

1

Ma

r-21

Acetone, Small/Medium Buyer

Acetone, Large Buyer

Refinery Grade Propylene Costs

0

400

800

1200

1600

Jan

-20

Fe

b-2

0

Ma

r-20

Ap

r-20

Ma

y-2

0

Ju

n-2

0

Ju

l-20

Au

g-2

0

Se

p-2

0

Oct-

20

No

v-2

0

Dec-2

0

Jan

-21

Fe

b-2

1

Ma

r-21

Global Composite CPL-BNZ Spread

Asia CPL-BNZ Spread

Asia Resin-BNZ Spread


11

2021 Industry UpdateImproved End Market Conditions Overall

• Improved North America carpet demand

from residential applications; Expect

commercial demand to remain soft near-

term

• Engineered Plastics demand remains

resilient into auto, consumer & industrial,

and electric & electronics applications

• Food packaging demand for nylon steady

Nylon Ammonium Sulfate Chemical Intermediates

Granular

StandardGranular

Standard

Mid Grade

• Expect improved ammonium sulfate

fertilizer results through 2021 planting

season

• Improving ag fundamentals – robust

planted acres and crop prices at multi-

year highs supporting higher fertilizer

prices

• Monitoring ammonium sulfate industry

supply and higher sulfur input costs

• Expect favorable acetone industry

supply and demand to continue; Imports

into U.S. remain low

• Acetone demand for precursor into

acrylic screens remains healthy

• Continued strong demand into paints

and coatings – DIY home improvement

• Auto demand steady; Improved

residential trends, expect commercial

construction to remain soft near-term

AdvanSix Domestic

Sales Mix

AdvanSix Export

Sales Mix

Acetone Industry North

America Demand

AdvanSix Acetone

Global Sales Mix

BPA

SolventsMMA

IPA /

OtherIPA /

Other

SolventsMMA

Nylon Industry North

America Demand

AdvanSix Nylon

Global Sales Mix

Carpet

Engineered

Plastics

Packaging

Industrial

Carpet

Engineered

Plastics

Packaging

Industrial

Sources: Wood Mackenzie, IHS Markit, AdvanSix Management

Export CPL


12

SustainabilityContinued Commitment to Environmental, Social and Economic Sustainability

• 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

• Together for Sustainability (TfS)

– Joined TfS initiative and supplier assessment framework

• Operation Clean Sweep®

– Company pledge to achieve zero pellet, flake and powder loss into marine environment

• Annual Sustainability Report

– Developed in alignment with the Global Reporting Initiative (GRI) Standards Core, supplemented

with disclosures using guidance of the Sustainability Accounting Standards Board (SASB) as well as

the Task Force on Climate-related Financial Disclosure (TCFD)

– Signed CEO commitment to U.N. Global Compact

– Established Health, Safety, Environmental and Sustainability (HSE&S) Committee of the Board of

Directors and Sustainability Council

– As a proud member of the American Chemistry Council (ACC), we manage our operations in a safe,

secure and sustainable manner in accordance with the Responsible Care® Guiding Principles

Highlights

13

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 incident mindset

• Continuing to evolve sustainability program and initiatives – Awarded 2021 Platinum Rating from EcoVadis

Improve Through-Cycle Profitability By Driving Superior Operational and Commercial Performance

• Anticipate maintaining approximately half of the 2020 cost savings through structural and permanent actions

• Sustaining global low-cost caprolactam position

• Optimizing product mix across end uses, applications and geographies

Enable Sustainable Long-Term Growth By Enhancing Portfolio Resiliency

• Further growth momentum in Nadone® cyclohexanone and oximes into high-value applications

• Integrating CIS packaged ammonium sulfate business; Driving sulfur nutrition value proposition

• Continued optimization of nylon product line to mitigate carpet end market decline

Enhance Value Creation Through Disciplined Capital Stewardship

• Capex expected to be $70-$80M in 2021 reflecting efficiencies in execution

• Expect leverage near lower end of 1.0-2.5x target range by year-end

• ~$60M remaining on share repurchase authorization; Disciplined M&A framework


14

APPENDIX

15

1Q 2021 Financial SummaryStrong Start to 2021

$302.7 $376.4• Sales Up 24%: Volume +8%, Price +16%

– Market Pricing +5%, Raw Material Pass Through +11%

$28.6

9.5%

$55.1

14.6%

• Higher Volume and Improved Market-Based Pricing

• Unfavorable Impact of Higher Natural Gas and Sulfur Costs

• (~$6.6M) Unfavorable Non-Cash LIFO Inventory Reserve

Adjustment

$8.6 $28.1 • 1Q21 Effective Tax Rate 24.8% vs. 29.9% in 1Q20

$0.31 $0.98 • 1Q21 Share Count 28.7 Million vs. 28.1 Million in 1Q20

($14.4) $42.9• Cash Flow From Operations $57M, Up $37M vs. Prior Year

• Capex $14M, Down ($20M) vs. Prior Year

• Received ~$12M Cash Tax Refund in 1Q21

Comments1Q 2020 1Q 2021($ Millions, Except Per Share Amounts)

Sales

EBITDAMargin %

Net Income

Free Cash Flow

Diluted EPS

See Appendix in this presentation for a reconciliation of EBITDA, EBITDA Margin, and Free Cash Flow, which are non-GAAP measures;

Free cash flow = net cash provided by operating activities less capital expenditures


16

1Q 2021 EBITDA Bridge

Higher Volume and Market-Based Pricing

$29

$55

$18

$16

$1$7

1Q20 Price - Raws Spread Volume / Other Planned Plant Turnaround LIFO Inventory ReserveAdjustment

1Q21

($M)

See Appendix in this presentation for a reconciliation of EBITDA, which is a non-GAAP measure

• Chemical

Intermediates

• CPL/Nylon

• Ammonium

Sulfate

• Increased volume across

all major product lines

• (~$3M) in 1Q21 vs.

(~$2M) in 1Q20


17

Planned Plant Turnarounds

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

Pre-Tax Income Impact by Quarter (1)

• Timing driven by compliance, inspection and sustaining asset base

• Critical to supporting high utilization rates

• Dedicated teams to improve effectiveness

• Staggered across unit operations to maintain output

(1) Primarily reflects the impact of fixed cost absorption, maintenance expense, and the purchase of feedstocks which are normally manufactured by the Company


18

APPENDIXReconciliation of Non-GAAP Measures to GAAP Measures

19

Reconciliation Of Net Cash Provided By Operating Activities To Free Cash Flow

(in $ thousands)

The Company believes that this metric is useful to investors and management as a measure to evaluate our ability to generate cash flow from business operations and the impact that this cash

flow has on our liquidity.

The Company believes the non-GAAP financial measures included in this presentation provide meaningful supplemental information as they are used by the Company’s management to

evaluate the Company’s operating performance, enhance a reader’s understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and

performance relative to its competitors, as these non-GAAP measures exclude items that are not considered core to the Company’s operations.

(1) Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment

20

(in $ thousands)

The Company believes the non-GAAP financial measures included in this presentation provide meaningful supplemental information as they are used by the Company’s management to evaluate the

Company’s operating performance, enhance a reader’s understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to its

competitors, as these non-GAAP measures exclude items that are not considered core to the Company’s operations.

(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

Reconciliation Of Net Income To EBITDA

21

(in $ thousands)

The Company believes the non-GAAP financial measures included in this presentation provide meaningful supplemental information as they are used by the Company’s management to evaluate the

Company’s operating performance, enhance a reader’s understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to its

competitors, as these non-GAAP measures exclude items that are not considered core to the Company’s operations. Adjusted EBITDA is calculated in accordance with the terms of the Company’s revolving

credit facility. 1Q21 Net debt / TTM Adjusted EBITDA preliminary pending submission pursuant to revolving credit facility and includes TTM pro forma results for CIS acquisition.

(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 extraordinary expenses and other items

Reconciliation Of Net Income To Adjusted EBITDA

22

(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 leverage and ability to repay

outstanding debt. Net debt and TTM Adjusted EBITDA are calculated in accordance with the terms of the Company’s revolving credit facility. 1Q21 Net debt / TTM Adjusted EBITDA preliminary pending submission

pursuant to revolving credit facility and includes TTM pro forma results for CIS acquisition.

The Company believes the non-GAAP financial measures included in this presentation provide meaningful supplemental information as they are used by the Company’s management to evaluate the Company’s

operating performance, enhance a reader’s understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to its competitors, as these

non-GAAP measures exclude items that are not considered core to the Company’s operations.

Reconciliation Of Net Debt And Calculation Of Net Debt To Trailing 12-Months (TTM) Adjusted EBITDA Ratio

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