Orion S.A. (OEC) UBS Global Materials Conference summary

Business overview and strategic direction

• Focus on carbon black production for rubber and specialty markets, with a strong emphasis on cash flow and specialty applications.

• Major growth investment in La Porte, Texas, targeting lithium-ion battery and wire/cable markets, expected to free up significant cash flow by 2026 as capital spending declines.

• Industry restructuring and supply constraints, including bans on Russian and Belarusian imports, are tightening markets in Europe and North America.

Earnings capacity and growth outlook

• Targeting $500 million in EBITDA capacity by 2025, with available capacity in rubber and specialty segments and new facilities in China and Texas.

• Pathway includes selling out existing capacity, improving price/mix, and ramping up new plants, especially for high-margin specialty and battery applications.

• Confident in achieving earnings goals, with La Porte plant coming online in the second half of next year, though full qualification for advanced applications will take time.

Market dynamics and demand drivers

• Current capacity utilization is in the low to mid-70% range, with upside potential as tire imports slow and domestic manufacturing recovers.

• Truck and bus tire demand is closely tied to manufacturing activity and freight trends, with recovery expected as the economy improves.

• Specialty segment volumes are rebounding, but broader manufacturing recovery is needed for sustained growth.