LSB Industries : Corporate Investor Presentation - January 2019

Investor Presentation

January 2019

Safe Harbor Statement

This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identifiable by use of the words "may," "believe," "expect," "intend," "plan to," "estimate," "project" or similar expressions, and include but are not limited to: financial performance improvement; view on sales to mining customers; estimates of consolidated depreciation and amortization and future turnaround expenses; our expectation of production consistency and enhanced reliability at our Facilities; our projections of trends in the fertilizer market; improvement of our financial and operational performance; our planned capital additions; reduction of SG&A expenses; volume outlook and our ability to complete plant repairs as anticipated.

Investors are cautioned that such forward-looking statements are not guarantees of future performance and involve risk and uncertainties. Though we believe that expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectation will prove to be correct. Actual results may differ materially from the forward-looking statements as a result of various factors. These and other risk factors are discussed in the Company's filings with the Securities and Exchange Commission (SEC), including those set forth under "Risk Factors" and "Special Note Regarding Forward-Looking Statements" in our Form 10-K for the year ended December 31, 2017 and, if applicable, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. We expressly disclaim any obligation to update, amend or clarify and forward-looking statement to reflect events, new information or circumstances occurring after the date of this press release except as required by applicable law.

Please see the EBITDA Reconciliation slide included in this presentation for other important information.

Key Investment Highlights

1	Diversified Nitrogen Chemicals Business with differentiated end market positions

2	Business strength supported by stable Industrial and Mining Business with attractive EBITDA margins

3	Favorable long-term dynamics in Agricultural Business creates significant upside in EBITDA margins

4	Operational improvements benefiting from over $1 billion of recent investment and enhancement of maintenance management systems and other operating programs

1 Diversified Nitrogen Chemicals Business with

Differentiated End Market Positions

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EnEdndMaMrkaerktsets(1)Agricultural

• • Urea ammonium nitrate solutions (UAN)

• • Ammonium nitrate (AN) - High density prills

• • Ammonia

• • Fertilizer for corn and other crops

• • Primary nitrogen component in nitrogen, phosphorus and potassium (NPK) fertilizer blends

• • High nitrogen content fertilizer primarily used for corn

  • • Ammonia

  • • Nitric Acid

• • Power plant emissions abatement, water treatments, refrigerants, metals processing

• • Semi-conductor, nylon polyurethane intermediates, ammonium nitrate

  • • Sulfuric Acid

  • • Diesel exhaust fuel (DEF)

• • Pulp and paper, aluminum, water treatment, metals and vanadium processing

• • Exhaust steam additive to reduce NOx emissions from diesel vehicles

  • • CO2

• • Food refrigeration / freezing, enhanced oil recovery

Note: Sales exclude Zena and Summit. Beginning in 2018, LSB adopted Accounting Standards Update No. 2014-09 related to the new revenue recognition standards which will likely decrease reported industrial sales but is expected to have minimal impact on profitability.

Mining

• • Ammonium nitrate - low density prills and AN solutions

• • Specialty E2 ammonium nitrate

• • Specialty emulsions for mining applications

• • Surface mining, quarries, construction

1 Differentiated Business Profile Focuses on

Customers / End Markets Where LSB Is Advantaged

Key Logistical Advantages

El Dorado

• • Truck freight rate advantage on customers west of the Mississippi River

• • Direct routes to western U.S. via rail

• • ~$8-10/ton freight advantage

Cherokeevs. UAN shipments originating from the Gulf

Pryor

• • Located in close proximity to the Northern Plains with easy access to the Port of Catoosa

Centrally located assets with access to…

•  Northern Plains

•  Southeast Paper Country

•  Western Mining

•  Customers not Freight Logical to Competitors

•  Low Cost Feedstocks

•  Transportation Optionality at All Facilities

Baytown

• • Anhydrous ammonia feedstock is delivered via pipeline