3Q 2017 Earnings Presentation November 7, 2017 Forward Looking - PowerPoint PPT Presentation

3Q 2017 Earnings Presentation November 7, 2017

Forward Looking Statements 2 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 like "expect," "anticipate," "estimate," “outlook”, "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should" and "believe" or other variations or similar terminology. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties and other factors, 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: our inability to achieve some or all of the anticipated benefits of the spin-off from Honeywell including uncertainty regarding qualification for expected tax treatment, indebtedness incurred in connection with the spin-off, and operating as an independent, publicly traded company; fluctuations in our stock price; general economic and financial conditions in the U.S. and globally; growth rates and cyclicality of the industries we serve; 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, and natural disasters; price fluctuations and supply of raw materials; adverse trade and tax policies; extensive environmental, health and safety laws that apply to our operations; litigation associated with chemical manufacturing and our business operations generally; loss of significant customer relationships; protection of our intellectual property and proprietary information; cybersecurity incidents; failure to maintain effective internal controls; and prolonged work stoppages as a result of labor difficulties. 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, including our Annual Report on Form 10-K for the year ended December 31, 2016. 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 ‐ GAAP financial measures to GAAP financial measures are provided in the appendix of the presentation. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided. Non-GAAP measures in this presentation may be calculated in a way that is not comparable to similarly-titled measures reported by other companies. 3Q 2017 Earnings Presentation – November 7, 2017

Overview 3 • Strong 3Q17 Results: Sales $367M, Net Income $21M, Cash Flow from Operations $38M • Favorable Conditions Across Nylon and Intermediates; Ammonium Sulfate Price Movement Modest Relative to Recent Nitrogen Pricing • Expect 4Q17 Planned Turnaround Impact to Pre-Tax Income of ~$20M, Consistent with Prior Outlook • Continued Benefits from Strong Operating Rates • Disciplined Reinvestment in the Business to Create Further Shareowner Value 3Q 2017 Earnings Presentation – November 7, 2017

3Q 2017 Financial Summary 4 Continued High Utilization Rates, Favorable Market Conditions Comments 3Q 2016 3Q 2017 ($ Millions, Except Per Share Amounts) • Volume +5%, Price +8% $324.0 $366.7 Sales – Market Pricing +4%, Raw Material Pass Through +4% • Favorable Market Pricing $38.1 $50.3 EBITDA • Unfavorable LIFO Reserve Adjustment (~$4M Impact) 11.8% 13.7% • Margin % EBITDA Margin Up 190 bps vs. Prior Year • $16.5 $21.3 Pre-Tax Interest Expense Up $2M Net Income • EPS $0.54 $0.68 EPS Up 26% vs. Prior Year • Cash Flow From Operations $38M, Up $13M vs. Prior Year Free Cash Flow $7.0 $18.3 • Capex $19M, Up $2M vs. Prior Year 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 3Q 2017 Earnings Presentation – November 7, 2017

Nylon Industry Outlook 5 Industry Conditions Remain Improved Year-Over-Year Nylon Key Industry Spreads (1) • Tightened supply environment – 3Q17 YoY 3Q17 vs. 2Q17 North America and Europe Global Composite BNZ-CPL 38% 17% • What We’re 23% 3% China announced capacity adds, Asia BNZ-CPL utilization impacted by stricter Asia CPL-Resin 64% 27% Seeing environmental controls 1500 • Industry spreads fluctuating near 1200 marginal producer cost Spread ($/MT) 900 • North America supply/demand remains in balance 600 What We’re • Global industry planned 300 turnarounds scheduled for 4Q17 Expecting 0 • Steady nylon end market demand growth Global Composite BNZ-CPL Spread (1) Sources: Tecnon OrbiChem and PCI Wood Mackenzie Asia BNZ-CPL Spread Asia = Caprolactam Asia Import Contract (Taiwan & S. Korea) Asia CPL-Resin Spread Global Composite = Weighted Avg Spreads From U.S., Europe, China, Other Asia 3Q 2017 Earnings Presentation – November 7, 2017

Ammonium Sulfate (AS) Industry Outlook 6 Nitrogen Prices Recently Firmed, Fundamentals Remain Challenging Ammonium Sulfate Key Industry Prices (1) • 3Q17 YoY 3Q17 vs. 2Q17 Nitrogen prices firmed due to supply availability / China costs Corn Belt Granular AS (-3%) (-9%) Corn Belt Urea 4% 4% What We’re • AS price movement modest relative to recent Nitrogen pricing Seeing 1400 700 (granular $/ston N content basis) Avg Corn Belt AS price • Cautious buying behavior Avg Corn Belt Urea price ($/ston N content basis) through the value chain 1200 600 • 2018 urea demand growth expected to lag capacity adds 1000 500 What We’re • Tough agriculture fundamentals to continue pressuring growers Expecting 800 400 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 • Sustain AS value proposition on sulfur nutrition Avg Corn Belt AS price (granular $/ston N content basis) Avg Corn Belt Urea price ($/ston N content basis) (1) As reported in Blue, Johnson 3Q 2017 Earnings Presentation – November 7, 2017

Chemical Intermediates Industry Outlook 7 Phenol and Acetone Tightened Supply Environment Chemical Intermediates Key Industry Prices (1) • Competitors’ force majeure 3Q17 YoY 3Q17 vs. 2Q17 announcements largely resolved Acetone, Large Buyer 22% 1% What We’re 18% 1% Refinery Grade Propylene • Tightened North America supply Seeing environment – refinery grade 60 propylene (RGP), phenol, acetone Cents per Pound 40 • End market conditions to remain favorable What We’re 20 Expecting • Industry utilization returns to 0 normal levels post hurricanes Acetone, Large Buyer Refinery Grade Propylene (1) As reported in IHS Markit 3Q 2017 Earnings Presentation – November 7, 2017

Operational Excellence 8 Driving Improved Reliability, Increased Output and Higher Returns Annualized Plant Production • Continuing to Benefit from Upgrades and Reliability Improvements – 3Q17 YTD Production Up 3% vs. Prior Year and 8% Above 2012-2015 Average – Focused Maintenance Capex Drives More Stable Production, Higher Returns • 4Q17 Planned Turnaround Pre-Tax Income Impact ~$20M, As Expected – Turnarounds Key to Safe, Sustainable and Improved Operations – 2018 Planned Turnarounds Expected to be Consistent with Historical Levels in Total • Sustaining Robust Operational Performance Into 2018 – Low Cost Position Supports High Utilization Rates – Growth Capex to Drive Improved Plant Buffers and Debottlenecking Over Long Term 2012-2015 Avg 3Q16 YTD 3Q17 YTD Frankford Annual Capacity: 1.1B lbs Phenol Hopewell Annual Capacity: 795M lbs Caprolactam Chesterfield Annual Capacity: 440M lbs Nylon 6 Resin 3Q 2017 Earnings Presentation – November 7, 2017

4Q 2017 Outlook 9 ~$20M Impact to Pre-Tax Income from Planned Turnaround Consistent With Prior Expectations • Anticipate similar supply/demand environment to 3Q17 across major product lines Commercial • Monitoring China environmental considerations into Winter months • Executing planned turnaround on time and on budget Operational • Continuing to enhance mechanical integrity program • Ammonium Sulfate pre-buy advances Cash / Other • Planned turnaround expenses • $2M cash pension contributions in October 2017 (total ~$17M for full year 2017) 3Q 2017 Earnings Presentation – November 7, 2017