Slide 1: Cabot Corporation Investor Presentation
Cabot Corporation Investor Presentation August 2015
Slide 2: Forward Looking Statements & Use of Non-GAAP Financial Measures
Forward Looking Statements & Use of Non— GAAP Financial Measures This presentation contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Compa
Slide 3: About Cabot
About Cabot NYSE: CBT Founded 1882 Global specialty chemicals and performance materials company 45 manufacturing sites in 21 countries Core technical competencies in fine particles and surface modification 9 month FY2015 sales: $2.2 billion INVESTOR PRESENTATION 3
Slide 4: Cabot Locations
Cabot Locations 45 manufacturing sites in 21 countries, all with local management teams INVESTOR PRESENTATION 4
Slide 5: Key Segment Highlights
Key Segment Highlights REINFORCEMENT MATERIALS Rubber blacks and elastomer composites product lines #1 Global position in carbon black Industry leading product and process technology EBITDA margins of 15% PERFORMANCE CHEMICALS Specialty carbons and formulations and metal oxides product lines Global
Slide 6: Vision and Strategic Levers
Vision and Strategic Levers “Deliver earnings growth through leadership in performance materials.” Capacity and Emerging Margin Improvement Market Expansion Portfolio Management New Product and New Business Development Strategic levers INVESTOR PRESENTATION 6
Slide 7: Improving EBITDA Margins
Improving EBITDA Margins EBITDA Margin KEY DRIVERS 18% 17% Commercial Excellence 16% Energy and Yield 15% Programs 14% Strategic Sourcing 13% Cost Management INVESTOR PRESENTATION 7
Slide 8: Improving Cash Flow
Improving Cash Flow KEY DRIVERS Focus on cash generation Capex tightly managed Working capital operating metrics improved 10% since 2013
Slide 9: Targeting ROIC > WACC
Targeting ROIC > WACC KEY DRIVERS Focus on margins Rigorous Project management Investments expected to meet return threshold
Slide 10: 2015/2016 Strategies and Tactics
2015/2016 Strategies and Tactics REINFORCEMENT MATERIALS PERFORMANCE CHEMICALS Improved contracts in FY 2016 Continue to drive margin expansion Price increases to offset feedstock costs Growth markets in silicones, batteries and Intense cost focus adhesives Technology as differentiator Expand portfo
Slide 11: Initiatives Driving Improved Performance in 2016
Initiatives Driving Improved Performance in 2016 Business Environment Strengthening demand in Reinforcement Materials Performance Chemicals margin expansion Improving Specialty Fluids project pipeline Non-MATS activated carbon growth Overall Company Initiatives Ongoing cost management (above $25M ac
Slide 12: Capital Allocation Strategy
Capital Allocation Strategy Capital Expenditures : Expect approximately $150 million in FY2015 Dividend: Paid consistently for 20+ years; increased 10% in 2012 & 2014 Debt: BBB / Baa2; investment grade rating Share Repurchases: Repurchased 1.8 million shares in YTD 2015 M&A: Focusing on bolt-ons to
Slide 13: Shareholder Focus and Financial Goals
Shareholder Focus and Financial Goals Target 10% to 15% through -cycle earnings growth from: Underlying industry demand Efficiency improvements and leveraged capacity Capital allocation actions Maintain return on invested capital above weighted average cost of capital Disciplined cash flow prioritiz
Slide 14: Thank You
Thank You NYSE: CBT Investor Relations Contact: Jim Kelly Interim Vice President, Investor Relations (617) 342-6020 jim.kelly@cabotcorp.com INVESTOR PRESENTATION 14
Slide 15: Appendix
Appendix
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EPS Adjusted EPS = Net Income per diluted common share from continuing operations – After-tax certain items per share Adjusted net income per share Certain items are items that management does not consider representative of the Company’s fundamental operating res
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA Margin Please visit the Investor Relations section of our website for 2014 and 2015 reconciliations of Adjusted EBITDA and Adjusted EBITDA Margins.
Slide 18: Cabot
Cabot