Investor Presentation March 2020
Forward Looking Statements This Presentation has been prepared by Calumet Specialty Products Partners, L.P. (the “Company,” “Calumet,” "we," "our," or like terms) as of March 18, 2020. The information in this Presentation includes certain “forward -looking statements. ” These statements can be identified by the use of forward-looking terminology including “may,” “intend,” “believe,” “expect,” “anticipate,” “estimate,” “forecast,” “continue” or other similar words. The statements discussed in this Presentation that are not purely historical data are forward-looking statements. These forward-looking statements discuss future expectations or state other “forward - looking” information and involve risks and uncertainties. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in our most recent Annual Report on Form 10-K and Current Reports on Form 8-K. The risk factors and other factors noted in our most recent Annual Report on Form 10-K and Current Reports on Form 8-K could cause our actual results to differ materially from those contained in any forward-looking statement. Our forward-looking statements are not guarantees of future performance, and actual results and future performance may differ materially from those suggested in any forward-looking statement. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the foregoing. Existing and prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this Presentation. We undertake no obligation to publicly release the results of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this Presentation or to reflect the occurrence of unanticipated events. Non-GAAP Financial Measures: Adjusted EBITDA, Pro forma Adjusted EBITDA, Adjusted EBITDA (ex-LCM/LIFO), Adjusted EBITDA margin, Adjusted EBITDA (ex- LCM/LIFO) margin, Gross profit per barrel (ex-LCM/LIFO), Adjusted net income, Free Cash Flow and leverage ratio are non-GAAP financial measures provided in this Presentation. Reconciliations to the most comparable GAAP financial measures are included in the Appendix to this Presentation. These non-GAAP financial measures are not defined by GAAP and should not be considered in isolation or as an alternative to net income (loss) or other financial measures prepared in accordance with GAAP. We do not provide reconciliation of non-GAAP financial measures on a forward-looking basis as it is impractical to do so without unreasonable effort. 2
Investment Summary Strengthening our “Core” Business • High-value specialty lubricants and chemicals • Tailored products with “stickiness” and long -term defensibility 01 • Lower volatility and stable earnings • Niche applications in high-margin end markets Growing Cash from Operations • Earnings & cash flow weighted towards higher-multiple specialty products 02 • Expanding margin from mix improvement & product upgrading • Yielding significant cash flow through operational improvements • Self-Help program now part of culture Fortifying Balance Sheet to Support Future Growth 03 • Leverage down from 9x to 4x in less than three years • Upgraded by Moody’s; ‘Positive Outlook’ revision by S&P • Further deleveraging remains a top priority • Adequate liquidity & no maturities until 2022 3 3
Hardening Calumet for a Black Swan Event Net Benefit • Better business planning & ERP efficiencies Reduced Inventories ~ $100 MM • Changed asphalt strategy Added Supply & Offtake Agreements • Increased Working Capital ~ $200 MM Flexibility Increased revolver capacity $100 million • Divested Dakota Prairie, Superior, Anchor and San Antonio • Reduced Portfolio Volatility ~ $100 MM • Grew Specialty and strengthened Shreveport Fuels • Reduced capital spending from $425 million in 2015 to ~ $250 MM Reduced Capex $83 million (1) in 2019 Calumet is much better situated to handle market downturns (1) Proforma for the sale of San Antonio 4
Strengthening the Core Business Specialty Segment (1) (1) (1) Adj. EBITDA (%) Gross Profit / bbl ($) Adj. EBITDA ($MM) 15.4% $34.41 $207.9 $31.21 $180.4 13.9% +150 up up bps 10.2% 15.2% 2017 2019 2017 2019 2017 2019 Core Specialty business has become a stronger base and larger contributor to portfolio (1) Excludes non-cash LCM/LIFO adjustments. See Appendix to this presentation for GAAP to Non-GAAP reconciliations. 5
Specialty Products Value Chain Formulation Prioritizing Higher Driven Margin Products Calumet fully integrates and Brand • Waxes realizes the full uplift from Driven • Gels crude oil • Petrolatums Quality • TruFuel Engineered Fuel Driven • Royal Purple Lubricants • Penreco Cosmetic & Pharma • Orchex Agriculture Spray Oils Price ✓ • White Oils Driven • Naphthenic Base Oils • Specialty Solvents • Aliphatic Solvents • Paraffinic Base Oils Lower Margins Higher Margins 6
Specialty Business - Finished Lubricants & Chemicals What We Do Growth Plan ▪ Manufacture finished lubricants, chemicals and ▪ Expand production capacity in engineered fuels engineered fuel products (TruFuel) ▪ Provide high-quality products in various package ▪ Product and application focus towards highest value sizes and sales channels to consumer, commercial ▪ Focus efforts on SKUs in growth markets and industrial trade channels ▪ Private label packaging Applications & End Markets ▪ ▪ ▪ ▪ Specialty Lubricants Synthetic Oils Performance Additives Rust Preventatives ▪ ▪ ▪ ▪ Landscape Equipment Mining Lubricants Transmission Fluids Gear Oils 7
Specialty Business - Waxes What We Do Growth Plan ▪ Manufacture paraffin waxes ▪ Vertically integrate ▪ Offer formulation solutions ▪ Develop further innovative solutions ▪ Provide custom blending and packaging ▪ Focus further down the value chain Applications & End Markets ▪ ▪ ▪ ▪ Candles Packaging Paper Polishes ▪ ▪ ▪ ▪ Adhesives Crayons Release Agents Water Repellents 8
Specialty Business - Specialty Oils What We Do Growth Plan ▪ Manufacture white oils, petrolatums, gels and esters ▪ Focus on specialty gels and petrolatums ▪ Develop innovative products ▪ Target value-driven industries food, pharma and personal care ▪ Create custom blends and solutions ▪ Leverage backward integration Applications & End Markets ▪ ▪ ▪ ▪ Lotions Pharmaceuticals Food Cleaners ▪ ▪ ▪ ▪ Agriculture Ointments Lip Care Plastic 9
Specialty Business - Base Oils What We Do Growth Plan ▪ Higher sales volumes through de-bottlenecking ▪ Manufacture paraffinic and naphthenic base oils ▪ Highlight competency in high viscosity and solvency ▪ Produce a wide viscosity and high solvency base oil offering ▪ Expand contracted customers in specialty ▪ Offer customized solutions applications Applications & End Markets ▪ ▪ ▪ ▪ Specialty Lubricants Transformer Oils Agricultural Oils Refrigeration Oils ▪ ▪ ▪ ▪ Shock Absorbers Greases Cutting Fluids Railroad Engine Oils 10
Specialty Business - Solvents What We Do Growth Plan ▪ Manufacture wide range of hydrocarbon solvents ▪ Continue investing further in supply chain capabilities ▪ Focus on heavy-molecule applications ▪ Provide value-added blending and logistic services ▪ Technical insight and support ▪ Feedstock optimization Applications & End Markets ▪ ▪ ▪ ▪ Paint & Coatings Adhesives Consumer Mining ▪ ▪ ▪ ▪ Aluminum Water Treatment Oil & Gas Extraction 11
̶ Growing Cash Flows Multi-year Self-Help programs driving organic expansion ▪ Phase I (2016-18) delivered Adj. EBITDA of $182MM; Phase II (2019-21) targeted to deliver $100MM of Adj. EBITDA ▪ Rationalizing low margin SKUs across Specialty Products Margin improvement from shift to higher margin products and raw material optimization ▪ (2) ($MM) (1)(2) : 2017 – 2019 ($MM) Growing Adj. EBITDA Generating Meaningful Free Cash Flow $137.0 $305 $301 $264 $263 $223 $25.4 $201 ($96.5) FY'17 FY'18 FY'19 (3) (3) FY'17 FY'18 FY'19 (1)(2) (1)(2) Adj. EBITDA (ex-LCM/LIFO) Adj. EBITDA Today’s Calumet is growing cash flows from ops, expanding margins, and investing in platforms for future growth (1) Pro forma adjusts for divestitures of Superior Refinery and Anchor Drilling Fluids USA, LLC in 4Q17. (2) See Appendix to this presentation for GAAP to Non-GAAP reconciliations (3) Includes interest from $400 million of retired 11.50% Secured Notes. 12 12
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