Westlake (WLK) Earnings Call Presentation

Financial Performance & Strategy - Westlake Chemical Corporation reported Net Sales of $7766 million, EBITDA of $1631 million, and Net Income of $601 million (attributable to WLK) for the Last Twelve Months (LTM) ending in 3Q 2017[5] - The company's EBITDA is split between Olefins (47% or $796 million) and Vinyls (53% or $915 million)[5] - The acquisition of Axiall is expected to enhance margin stability and synergy savings of $120 million are expected in 2017, with a total of $200 million by 2018[8] - Strategic investments and capital projects totaling over $6 billion have been made recently to drive integration and specialty focus[61] Market Position & Advantages - Westlake is a leading integrated plastics materials company, holding the 2 position in North American PVC capacity and 3 globally, as well as the 3 position in North American Chlor-Alkali capacity and 3 globally[8] - The company remains 1 in North American LDPE capacity[8] - Westlake has a short position in ethylene, providing cost advantages, and has NGL feedstock flexibility and infrastructure[12, 15] - Westlake has one of the highest LDPE product mix percentages in North America, with LDPE accounting for 58% and LLDPE accounting for 42% of its capacity[25] Global Presence & Demand - The Axiall acquisition provides Westlake with a global PVC presence, including facilities in North America, Europe, and Asia[37] - Global PVC demand is growing, with a CAGR of 3.1% from 2000-2016 and an expected CAGR of 3.2% from 2017-2021[54] Financial Discipline & Growth - Westlake is committed to maintaining solid investment-grade credit metrics and has been deleveraging since the Axiall acquisition[66] - Westlake Partners (WLKP) provides a lower cost of capital to fund growth, with four levers of distributable cash flow (DCF) growth[70]