# Dear Fellow
Shareholders

_Source: `DeepSeekOCR_Ardian_pruned_1k/basic-materials-specialty-chemicals/NYSE_OEC_2022/NYSE_OEC_2022.mmd` · pages 2-8_

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Dear Fellow
Shareholders

Corning Painter – Chief Executive Officer

Orion reached an inflection point in 2022. We eclipsed $2 billion in revenue and $300 million in adjusted EBITDA for the first time, and we see new summits on the road ahead. We accomplished these record levels due to the dedicated efforts of our 1,600+ global employees.

Our team has focused on opportunities to grow Orion, become more agile and conquer challenges head on. I also want to thank our shareholders, who are now seeing the benefit of our focus on generating strong profitable growth and free cash flow, as well as executing on high-return investments and achieving consistent high returns on invested capital.

In 2022, we grew revenue to over \(2 billion, up 31 percent compared with 2021. Our adjusted EBITDA was \)312 million, up \(44 million versus 2021. Gross profit per ton was a record for both of our businesses.

Other key achievements in 2022 included the expansion of our Ravenna, Italy, plant, which quickly sold out. Our greenfield facility in Huaibai, China, was nearly completed and already shipping sample materials in early 2023. Faced with the potential of natural gas shortages in Europe, due to the tragic war in Ukraine, our team immediately focused on and successfully engineered the ability to replace up to 40 percent of our natural gas requirements in Europe. We announced our intent to build a state-of-the-art Kappa conductive additive plant in LaPorte, Texas, which will provide 12,000 tons of high-purity conductive carbon black to be used in lithium-ion batteries, electrical grid upgrades and other key end markets in 2025. The production site will replicate the success of our plant in Berre-I'Etang, France. Finally, with our Borger, Texas, plant upgrade now online, we were the first carbon black producer to complete three air emission control plant projects in the United States. We have one more plant to complete in Belpre, Ohio, which we expect to complete in the second half of 2023.

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Structural Changes
Drive Improved Price
and Terms

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31%+ YoY Net Sales Increase

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Gross Profit
Increased ~16% YoY

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Recent Authorization for a $50m Share Repurchase Program

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~16% Adjusted EBITDA YoY Growth

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Positioned to
Significantly Increase
Cash Flow

## LOOKING FORWARD

Our success in 2022 is the cumulation of many years of foundation building. As successful as 2022 has been for us, I am excited about what is next. At our first-ever Investor Day in June, we introduced a \(500 million adjusted EBITDA mid-cycle earnings capacity target for 2025. I remain committed to and confident of achieving this goal. Those who attended in person or virtually met some of the executive management team at that event and saw the leadership depth we have built. We discussed key areas of our innovation team's work and provided an in-depth view of our Specialty and Rubber businesses. Along with the \)500 million target, we also provided guideposts for strong discretionary and free cash flow generation over the next three years. We expect to generate $700 million to \(800 million of discretionary, and \)400 million to \(500 million of free cash flow over the next three years. We plan to use this cash to reinvest in the company, improve our balance sheet and return cash to shareholders. Our ongoing capital spending is focused on growth markets, improving returns on our existing plants and innovation for new products and key end markets. Our balance sheet is strong and will continue to be. Finally, in late 2022, we announced a \)50 million share buyback, which we expect to complete in 2023.

Our Americas and EMEA Rubber contract negotiations were completed with substantial pricing and commercial term improvements, which were necessary to achieve a return on the significant capital upgrades required for our plants. We and our shareholders deserve to achieve an acceptable return on these investments. The Rubber gross profit increased to a record $336 per metric ton in 2022 and we expect to achieve a larger increase in 2023. I believe the Rubber business has permanently moved to a new level of profitability, one that supports our ability to invest in our business and support our customers with differentiated solutions.

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## MOVING AWAY FROM

Constrained capital allocation
due to EPA-mandated capital
expenditures

Maintenance capital
expenditures focused on
short-term fixed cost vs. long-
term cost of ownership

Focus on managing
for liquidity

Our Specialty business made strong gains in 2022, a record at $897 gross profit per metric ton, at the same time global economies and key end markets for our products weakened, leading to reduced volumes. However, our high-end and highly differentiated products achieved our target of over $200 million in revenue at 40 percent EBITDA margins, generating more than $80 million of adjusted EBITDA.

We have also recently stepped up our investment in people and their capabilities. We expect all our employees to grow and expand their skills. In May 2022, we had our first global leadership development event, with over 100 leaders participating. In 2023, we will expand our learning program deeper into the organization. As a global business with leadership positioned around the world, we are focused on diversity within our workforce. I am proud of our workforce inclusion, especially our gender, national, ethnic, cultural and thought diversity. We want the best ideas from all our

MOVING TOWARD

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Value creation mindset

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Investing in growth

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Strengthening operating
productivity

employees. It is those ideas that will make us even stronger in the future. We continue to add to this strength, creating new roles and attracting talent — including Jeff Glajch, our chief financial officer who joined us in 2022.

I am committed to ensuring that we are an industry leader in "sustainable sustainability." By that, I mean things that will not go out of fashion with shifting public perceptions: environmentally sound products that people want to buy, good governance, transparency, effective community support and a positive workplace. In 2022, we successfully achieved International Sustainability and Carbon Certification (ISCC Plus) for multiple grades of carbon black across two continents. We improved our EcoVadis score, a very comprehensive measure, significantly over the past four years and achieved Gold status. We are in the top 1 percent of all companies graded. Additionally, we were upgraded to a score of B by CDP, a non-profit group that measures environmental impact. While I am

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proud of the successes to date, we have only begun this journey — and I remain committed to continued improvement in sustainability and profitability during the process.

Our current and future investments will continue to drive our growth well beyond our 2025 $500 million EBITDA goal. We see further opportunities to expand in the electronic vehicle battery-driven Kappa conductive additive market. In addition, the market possibilities in evolving areas, such as circular carbon black, are critical to our long-term success. In these and other key areas, our innovation team is staffed with top industry experts, and I am confident they will continue to generate scientific breakthroughs to meet our customers' requirements.

I see an exciting future for the company. I have spent the past four years positioning us to where we are today. We have laid the foundation for sustained profitable growth, strong free cash flow and exceptional returns for our shareholders. I especially want to thank our long-term shareholders for staying with us through this journey and I believe you will now see the rewards of your loyalty. The next phase of the journey is upon us. I expect to achieve strong growth in profitability and cash flow over each of the next three years as discussed at our Investor Day. This is only the start. We aspire to achieve long-term sustainable growth resulting in consistent shareholder returns.
Finally, I would personally like to thank our Board of Directors. We have a tremendous group of highly competent individuals on the Board. We were fortunate to add Tony Davis in 2022, a well-respected investor with a focus on ESG who brings a great perspective to the team. The counsel that our nine independent directors provide to me and our leadership team is invaluable.

Thank you and I hope you are all with us throughout 2023 and beyond.

Sincerely,

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Corning Painter
Chief Executive Officer