Koppers : Business Update & Q4 2020 Preliminary Results

Q4 2020 Preliminary Results January 28, 2021

Forward Looking Statement

Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may include, but are not limited to, statements about sales levels, acquisitions, restructuring, profitability and anticipated synergies, expenses and cash outflows. All forward-looking statements involve risks and uncertainties. All statements contained herein that are not clearly historical in nature are forward-looking, and words such as "believe," "anticipate," "expect," "estimate," "may," "will," "should," "continue," "plan," "potential," "intend," "likely," "outlook," "guidance," "forecast," or other similar words or phrases are generally intended to identify forward-looking statements. Any forward-looking statement contained herein, in press releases, written statements or documents filed with the Securities and Exchange Commission, or in Koppers communications with and discussions with investors and analysts in the normal course of business through meetings, phone calls and conference calls, regarding expectations with respect to sales, earnings, cash flows, operating efficiencies, restructurings, the benefits of acquisitions and divestitures or other matters as well as financings and debt reduction, are subject to known and unknown risks, uncertainties and contingencies. Many of these risks, uncertainties and contingencies are beyond our control, and may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Factors that might affect such forward-looking statements, include, among other things, the impact of changes in commodity prices, such as oil and copper, on product margins; general economic and business conditions; existing and future adverse effects as a result of the coronavirus (COVID-19) pandemic; disruption in the U.S. and global financial markets; potential difficulties in protecting our intellectual property; the ratings on our debt and our ability to repay or refinance outstanding indebtedness; our ability to operate within the limitations of our debt covenants; potential impairment of our goodwill and/or long-lived assets; demand for Koppers goods and services; competitive conditions; interest rate and foreign currency rate fluctuations; availability of key raw materials and unfavorable resolution of claims against us, as well as those discussed more fully elsewhere in this presentation and in documents filed with the Securities and Exchange Commission by Koppers, particularly our latest annual report on Form 10-K and subsequent filings. Any forward-looking statements in this presentation speak only as of the date of this presentation, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after that date

or to reflect the occurrence of unanticipated events.	2

Our Place in the 'Essential'

Business Landscape

ESSENTIAL TO OUR WORLD

RAILROAD PRODUCTS & SERVICES

Rail Ties, Joints, Maintenance

Keep railroads safe and operational to deliver ESSENTIAL goods:

Retail products from	Chemicals required for	Chlorine-based
fruits to toilet paper	medical supplies	disinfectants for treating
		water

UTILITY & INDUSTRIAL PRODUCTS

Utility Poles

Provide families and businesses with ESSENTIAL electricity and telecommunications needs:

Keeping lights on	Connecting to	Air-conditioning and
	Internet/TV	heating

CARBON

MATERIALS &

CHEMICALS

Coal Tar Distillation; Creosote Supplier (to RPS)

Produce carbon materials and chemicals ESSENTIAL for:

Creosote for treating railroad	Aluminum and steel for	Aluminum, plastics and rubber for
ties and utility poles	infrastructure needs	medical uses and food packaging

Produce chemicals ESSENTIAL for treating:

PERFORMANCE

CHEMICALS

Wood Treatment Chemicals

Utility poles for electricity	Pressure treated wood for	Agriculture and farming
and telecommunications	essential home repairs	4

2020 Record Performance

Delivered Record-Setting 2020

Accomplishments

Zero Harm: All-time best safety performance in 2020

Consolidated Sales*: $1.669 billion

1. 4th consecutive year of growth o Record sales year

Operating Profit*: $161 million

1. 28% increase from prior year

Adjusted EBITDA*: $211 million - $212 million

Adjusted EBITDA Margin*: 12.6%-12.7%

1. Highest since 2017

1. 5th consecutive year in 12%-14% range

Earnings Per Share*: $4.10 - $4.20/share

o ~30% increase from prior year of $3.18/share o $9.5 million SG&A cost savings

* Excluding Koppers (Jiangsu) Carbon Chemical Company Limited (KJCC)	6

Delivered Record-Setting 2020

Accomplishments

Second-Highest Operating Cash Flow: 5 of 6 Prior Years' Cash Flow > $100 million

Record Amount in Debt Paydown: Reduced Net Debt by $131.5 million

Reduced Net Leverage Ratio to 3.5 at 12/31/20 vs. 4.3 at prior year-end

Invested in Capital Expenditures of $69.8 million

Record Book Value for KOP Equity

7

Employee Health & Wellbeing

Applying Zero Harm Principles:

Current Status

Employees Affected

by COVID-19

• ~1% currently in self-quarantine (20 employees)
• ~11% tested positive for COVID-19, to date (232 employees)
• 1,960 cumulative occurrences of employee testing and/or quarantine

Staying Vigilant &

Staying Healthy

• Requiring face coverings as PPE at allNorth American (N.A.) facilities
• • Distributed company-provided masks to employees
• Enhancing social distancing/screening practices; maintaining COVID-19 hygiene protocols
• Using self-administered saliva test kits for COVID-19 at N.A. locations
• Using pool-testing methods for periodic screening of U.S. plant employees; identifying individuals with COVID-19 infections; helping to prevent spread
• Strengthening Zero Harm measures by adding new Life-Saving Rule to address COVID-19: raising awareness of infection hazards; applying additional discipline to operational routines; requiring higher respiratory

protection for job tasks with higher risks

Ongoing Communications

through Virtual Chats &

Weekly Videos

• Conducting quarterly all-employee meetings in 3 time zones: United States, Europe, Australia/New Zealand
• CEO Virtual Chats with plant and remote-work employees
• CEO video updates to employees available on Koppers Facebook page (@koppersinc) and on www.koppers.com

9

Operations Continuity

Operations & Planning:

Current Status

Operations

• Worldwide, Koppers manufacturing facilities remain operational
• No employees currently furloughed or laid off
• Continue to limit employee business travel to essential-only travel
• Continue to evaluate opportunities for select plant visits by senior management to reinforce importance of health and hygiene protocols

Office Re-entry

• Strongly encouraging employees to continue working remotely
• Postponing return to office until April 1, 2021, at earliest
• Requiring use of face coverings and social distancing for employees that must come into office

Technology Capabilities

• Implemented Fleet Safety Dashboard to improve safety and efficiency of our trucking operations
• Deploying Visitor Management System at our facilities to ensure safety of employees and visitors
• Using multiple technology solutions to enable virtual facility visits; connecting employees globally via OneKoppers channels
• Using Microsoft HoloLens technology for virtual global ISO 9001 audit and virtual facility visits; testing for virtual training and engineering holograms

11

Valuing Our People

Engaging Our Employees

LINKwomen Hosts First Session of

Empowerment Series

• Open discussion with accomplished female leaders about a range of topics from career growth to work/life balance.

Global Employee Engagement Survey

• Provides a way for team members to give honest and confidential feedback to help improve the organization.

13

Sustaining Our Planet

Caring for Our Environment:

Newsoms, VA & Stickney, IL

Floating Wetlands at Newsoms, VA

Using Plants to Improve Water Quality

• October 2019: Employees installed wetlands

during SH&E Coordinator Conference

• October 2020: Wetlands are growing well to successfully do their job

Phytoremediation at Stickney, IL

Using Plants to Improve Soil Quality

• August 2019: Employees remove old

equipment and prepare soil to plant grasses

• November 2020: Employees add hardwood trees to thriving grasses to enhance project and provide a nicer community greenspace

Supporting Our Communities

Serving Our Neighbors

Madison Brings Light to the

Darkness of Cancer

• Sponsored and participated in
  Leukemia & Lymphoma Society's
  Virtual Light The Night Event.

UIP Team Activates 24/7 Storm

Response Program

• Worked around the clock helping to restore power to those affected by Hurricane Zeta in Georgia and a major ice storm in Oklahoma.

17

Making a Difference Locally

Ashcroft Assists Neighbors in Need

• Supported Ashcroft Community Food Bank with 600 pounds of food + donation.
• Collected 150 pounds of household items for the Equality Project.
• Donated to Jackson House assisted living.

Queen City Cleans Out Closets for Homeless

• Donated gently used clothing, winter apparel and essential and nonessential items to Randy
  Sam's Shelter.

Rock Hill Spreads Holiday Cheer

• Collected 300 pounds of non-perishables for food pantry.
• Contributed to York County Toys for Tots drive.

18

In The News

Koppers in the News

The Rock Hill Herald Spotlights

Plant Manager Ida Luchey

• Talks land purchase for facility expansion and career accomplishments

Koppers Named to Newsweek's 'America's Most Responsible Companies'

• Evaluates Environmental, Social and

Governance performance of more than 2,000 public companies in U.S.

✓ Ranked #179 of 400 companies selected

20

Q4 2020 Preliminary Results:

Sales by Segment (Unaudited)

$400

$350

$300

$250

$200

$150

$100

$50

$0

Q4 2020 vs Prior Year

$ in Millions

$393

$168 $169

$130

$105	$95	$108

$382

Q4 2020	Q4 2019	Q4 2020	Q4 2019	Q4 2020	Q4 2019		Q4 2020	Q4 2019
RUPS		PC		CMC		TOTAL

22

Adjusted EBITDA by Segment (Unaudited)

Q4 2020 vs Prior Year

$ in Millions

$25

$23

$20

$15

$16

$10

$5

$0

$14$14

$10 $10

Q4 2020	Q4 2019	Q4 2020	Q4 2019	Q4 2020	Q4 2019
			CMC
RUPS		PC

23

RUPS Sales (Unaudited)

RAILROAD AND UTILITY PRODUCTS AND SERVICES

$ in Millions

$200
$175
$168	$169
$150
$125
$100
$75
$50
$25
$0
Q4 2020	Q4 2019
RUPS

Q4 Highlights

• Sales decreased from prior year primarily due to the following:
• • Crosstie volumes lower overall
  • Mostly offset by higher demand for utility poles in the U.S. and Australia
  • Increased demand from maintenance- of-way businesses in U.S. such as bridge repair & engineering, crosstie disposal services
• Crosstie Procurement up 3% in 2020; decreased 14% year-over-year in Q4
• Crosstie Treatment higher 3% in 2020; flat from prior year in Q4

24

Adjusted RUPS EBITDA (Unaudited)

RAILROAD AND UTILITY PRODUCTS AND SERVICES

$20

$15

$10

$5

$0

$ in Millions

$10 $10

Q4 Highlights

• Year-over-yearEBITDA was relatively flat
• • In line with typical year-end slowdown in crosstie treating volumes
• Reflects ability to maintain profitability due to the following:
• • Increased demand in utility pole business in U.S. and Australia
  • Generally improved conditions in maintenance-of-way businesses

Q4 2020

Q4 2019

RUPS

25

PC Sales (Unaudited)

PERFORMANCE CHEMICALS

$ in Millions

$150
$125	$130
$100		$105
$75
$50
$25
$0	Q4 2020	Q4 2019
	PC

Q4 Highlights

• Sales increase reflects continued demand strength for copper-based preservatives in U.S.
• • Driven by strong housing market, increased interest in home remodeling
  • Discretionary funds shifting from leisure/entertainment to home repair and beautification projects
• International markets benefited from improved industrial/agricultural demand as most economies reopened

26

Adjusted PC EBITDA (Unaudited)

PERFORMANCE CHEMICALS

$ in Millions

$25
$23
$20
$15
	$14
$10
$5
$0
Q4 2020	Q4 2019
PC

Q4 Highlights

• Higher year-over-year profitability due to:
• • Higher sales volumes
  • Favorable product mix
  • Improved cost absorption on higher production volumes
• Serving underlying demand driven by strong home repair and remodeling pipeline
• • Driven by increase in work-from-home trends, more common as a result of pandemic

27

CMC Sales (Unaudited)

CARBON MATERIALS AND CHEMICALS

$ in Millions

$125
$100	$108
$95
$75
$50
$25
$0
Q4 2020	Q4 2019
CMC

Q4 Highlights

• Each region, except Europe, decreased from prior year, in line with expectations
• Lower average oil prices and market slowdown during pandemic resulted in:
• • Lower pricing and volumes for carbon pitch globally
  • Weaker demand in U.S. for phthalic anhydride
  • Partially offset by improved demand for carbon pitch in Europe and carbon black feedstock in Australia

28

Adjusted CMC EBITDA (Unaudited)

CARBON MATERIALS AND CHEMICALS

$ in Millions

$20
$15	$16
$14
$10
$5
$0
Q4 2020	Q4 2019
CMC

Q4 Highlights

• Year-over-yeardecline profitability consistent with expectations
• Q4 performance reflects continued margin recovery in second half of 2020
• • Compared with Q3, average pricing of major products decreased 8%, while average coal tar costs increased 2%
  • Compared with Q4/2019, average pricing of major products was 20% lower, while average coal tar costs declined 19%
• Generated double-digit margin for fourth quarter as well as 2020

29

Debt & Liquidity

No Near-Term Debt Maturities;

Cash Events Providing Liquidity Cushion

• 12/31/20 Status

✓In compliance with all debt covenants ✓$737.4M net debt

✓$346.3M available liquidity

• $131.5M Debt Reduction in 2020 (Net)
  ✓KJCC divestiture net proceeds (~$65M)

✓Cash income/other Working Capital ($50.5M)

✓Lower cash taxes and interest ($16M) ✓Higher capex (-$6M) vs. 2020 Program ✓Deferred payroll taxes ($6M)

No Significant Debt Maturities Pre-2024

	$ in Millions
2021	$10
2022	$2
2023	---
2024	$272
2025	$500
Total Debt	$784

31

Q&A Session

Appendix

Non-GAAP Measures and Guidance

This presentation includes unaudited "non-GAAP financial measures" as defined in Regulation G under the Securities Exchange Act of 1934, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, net debt and net leverage ratio. Koppers believes that the presentation of non-GAAP financial measures provides information useful to investors in understanding the underlying operational performance of the company, its business and performance trends and facilitates comparisons between periods and with other corporations in similar industries. The exclusion of certain items permits evaluation and a comparison of results for ongoing business operations, and it is on this basis that Koppers management internally assesses the company's performance. In addition, the Board of Directors and executive management team use adjusted EBITDA as a performance measure under the company's annual incentive plans.

Although Koppers believes that these non-GAAP financial measures enhance investors' understanding of its business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP basis financial measures and should be read in conjunction with the relevant GAAP financial measure. Other companies in a similar industry may define or calculate these measures differently than the company, limiting their usefulness as comparative measures. Because of these limitations, these non-GAAP financial measures should not be considered in isolation from, or as substitutes for performance measures calculated in accordance with GAAP.

Koppers does not provide reconciliations of guidance for adjusted EBITDA and adjusted EPS to comparable GAAP measures, in reliance on the unreasonable efforts exception. Koppers is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include restructuring, impairment, non-cash LIFO charges, acquisition-related costs, and non-cashmark-to-market commodity hedging that are difficult to predict in advance in order to include in a GAAP estimate and may be significant.

References to historical EBITDA herein means adjusted EBITDA, for which the company has provided calculations and reconciliations in the Appendix.

34

Unaudited Segment Information

			Three Months Ended December 31,			Year Ended December 31,
			2020				2019				2020				2019
(Dollars in millions)			(Preliminary)							(Preliminary)
Net sales:
Railroad and Utility Products and Services		$	168.2			$	169.5			$	759.1			$	733.5
Performance Chemicals			129.9				104.6				526.3				448.3
Carbon Materials and Chemicals			95.0				108.0				383.7				455.2
Total		$	393.1			$	382.1			$	1,669.1			$	1,637.0
Operating profit:
Railroad and Utility Products and Services		$	6.3			$	4.0			$	46.7			$	35.8
Performance Chemicals			21.5				13.6				88.6				52.1
Carbon Materials and Chemicals			7.5				8.9				23.4				39.2
Operating profit margin:
Railroad and Utility Products and Services			3.7	%			2.4	%			6.2	%			4.9	%
Performance Chemicals			16.6 %			13.0%			16.8%			11.6%
Carbon Materials and Chemicals			7.9	%			8.2	%			6.1	%			8.6	%
Adjusted EBITDA(1):
Railroad and Utility Products and Services		$	10.3			$	10.2			$	65.4			$	60.2
Performance Chemicals			23.0				14.4				100.7				68.6
Carbon Materials and Chemicals			14.4				15.6				45.0				73.5
Adjusted EBITDA margin(2):
Railroad and Utility Products and Services			6.1	%			6.0	%			8.6	%			8.2	%
Performance Chemicals			17.7 %			13.8%			19.1%			15.3%
Carbon Materials and Chemicals			15.2	%			14.4	%			11.7	%			16.1	%

1. The tables below describe the adjustments to EBITDA for the quarters and years ended December 31, 2020 and 2019, respectively.
2. Adjusted EBITDA as a percentage of GAAP sales.

35

Unaudited Reconciliation of Operating Profit to EBITDA and Adjusted EBITDA

(In millions)

				Three Months Ended December 31, 2020
		RUPS		PC		CMC
					(Preliminary)
Operating profit	$	6.3		$	21.5		$	7.5
Other income		0.9			1.6			1.0
Depreciation and amortization		5.3			4.9			4.2
EBITDA with noncontrolling interest	$	12.5		$	28.0		$	12.7
Unusual items impacting EBITDA:
CMC restructuring		0.0			0.0			3.3
Non-cash LIFO benefit		(3.3	)		0.0			(1.7	)
RUPS treating plant closures		1.1			0.0			0.0
Mark-to-market commodity hedging		0.0			(5.0	)		0.0
Pension settlement		0.0			0.0			0.1
Adjusted EBITDA	$	10.3		$	23.0		$	14.4

*Reconciliation excludes unallocated corporate profit (loss) and adjustments for the three months ended December 31, 2020 as a result of Koppers tax calculations not being finalized as of the date of this press release; and therefore, a consolidated reconciliation of adjusted EBITDA to net income is not available without unreasonable efforts.

36

Unaudited Reconciliation of Operating Profit to EBITDA and Adjusted EBITDA

(In millions)

													Three Months Ended December 31, 2019
																	Corporate
				RUPS			PC			CMC		Unallocated		Consolidated
Operating profit (loss)		$		4.0			$	13.6				$	8.9			$	(0.5	)		$	26.0
Other income (loss)				0.1				0.5					(0.6	)			0.1				0.1
Depreciation and amortization				5.0				4.3					2.6				0.0				11.9
Depreciation in impairment and restructuring charges			0.0				0.0					0.8				0.0				0.8
EBITDA with noncontrolling interest		$		9.1			$	18.4				$	11.7			$	(0.4	)		$	38.8
Unusual items impacting EBITDA:
CMC restructuring				0.0				0.0					5.4				0.0				5.4
Non-cash LIFO (benefit) expense			1.1				0.0					(1.5 )			0.0				(0.4 )
Mark-to-market commodity hedging				0.0				(4.0	)				0.0				0.0				(4.0	)
Adjusted EBITDA	$		10.2		$	14.4			$	15.6		$	(0.4 )	$	39.8
Adj. EBITDA % of Consolidated Adj. EBITDA (excluding
corporate unallocated)				25.4	%			35.8	%				38.8	%

37

Unaudited Reconciliation of Operating Profit to EBITDA and Adjusted EBITDA

(In millions)

				Year Ended December 31, 2020
		RUPS		PC		CMC
				(Preliminary)
Operating profit	$	46.7	$	88.6	$	23.4
Other income		0.0		3.2		0.3
Depreciation and amortization		20.1		18.1		15.9
Depreciation in impairment and restructuring charges		2.0		0.0		0.0
EBITDA with noncontrolling interest	$	68.8	$	109.9	$	39.6
Unusual items impacting EBITDA:
CMC restructuring		0.0		0.0		10.6
Non-cash LIFO benefit		(8.5 )		0.0		(5.3)
RUPS treating plant closures		5.1		0.0		0.0
Mark-to-market commodity hedging		0.0		(9.2)		0.0
Pension settlement		0.0		0.0		0.1
Adjusted EBITDA	$	65.4	$	100.7	$	45.0

*Reconciliation excludes unallocated corporate profit (loss) and adjustments for the year ended December 31, 2020 as a result of Koppers tax calculations not being finalized as of the date of this press release; and therefore, a consolidated reconciliation of adjusted EBITDA to net income is not available without unreasonable efforts.

38

Unaudited Reconciliation of Operating Profit to EBITDA and Adjusted EBITDA

(In millions)

Operating profit (loss)	$
Other income (loss)
Depreciation and amortization
Depreciation in impairment and restructuring charges
EBITDA with noncontrolling interest	$
Unusual items impacting EBITDA:
CMC restructuring
Non-cash LIFO expense (benefit)
RUPS treating plant closures
Mark-to-market commodity hedging
Adjusted EBITDA	$
Adj. EBITDA % of Consolidated Adj. EBITDA
(excluding corporate unallocated)

				Year Ended December 31, 2019
						Corporate
RUPS		PC		CMC	Unallocated	Consolidated
35.8	$	52.1	$	39.2	$	(2.1 )	$	125.0
(1.2)		2.2		(1.5 )		0.9		0.4
19.4		18.3		13.7		0.0		51.4
0.0		0.0		3.4		0.0		3.4
54.0	$	72.6	$	54.8	$	(1.2 )	$	180.2
0.0		0.0		19.9		0.0		19.9
5.7		0.0		(1.2 )		0.0		4.5
0.5		0.0		0.0		0.0		0.5
0.0		(4.0 )		0.0		0.0		(4.0 )
60.2	$	68.6	$	73.5	$	(1.2 )	$	201.1
29.8%		33.9 %		36.3 %

39

Unaudited Reconciliation of Net Income to EBITDA and Adjusted EBITDA

(In millions)

Twelve Months Ended

December 31, 2019

Three Months Ended

December 31, 2019

Net income	$	67.4		$	20.1
Interest expense		61.9			14.3
Depreciation and amortization		54.6			12.7
Discontinued operations, net of tax		(3.7)		1.4
EBITDA		180.2			38.8
Unusual items impacting EBITDA:
Impairment, restructuring and plant closure		20.4			5.4
Non-cash LIFO expense (benefit)		4.5			(0.4)
Mark-to-market commodity hedging		(4.0	)		(4.0	)
Adjusted EBITDA with noncontrolling interest	$	201.1		$	39.8

40

Unaudited Reconciliation of Total Debt to Net Debt and Net Leverage Ratio

(In millions)

Twelve Months Ended

December 31, 2020

(Preliminary Range)

Twelve Months Ended

December 31, 2019

Total Debt	$	775.9	$	775.9	$	901.2
Less: Cash		38.5		38.5		32.3
Net Debt	$	737.4	$	737.4	$	868.9
Adjusted EBITDA	$	211.0	$	212.0	$	201.1
Net Leverage Ratio		3.5		3.5		4.3

*The company's net leverage ratio will be approximately 3.5 at December 31, 2020 in the entire forecasted adjusted EBITDA range of $211.0 million to $212.0 million.

41

Koppers Holdings Inc.

436 Seventh Avenue

Pittsburgh, PA 15219-1800

Koppers is an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds for the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries. Headquartered in Pittsburgh, Pennsylvania, we serve our customers through a comprehensive global manufacturing and distribution network, with facilities located in North America, South America, Australasia, China and Europe.

Stock Exchange Listing

NYSE: KOP

Investor Relations and Media Information

Ms. Quynh McGuire

Vice President, Investor Relations 412 227 2049 [e-mail]

KOPPERS World Headquarters

Pittsburgh, Pennsylvania, USA

Koppers is a a member of the

American Chemistry Council.

42

43