Slide 1: Cabot Earnings Teleconference First Quarter – Fiscal 2023
CABOT EARNINGS TELECONFERENCE FIRST QUARTER – FISCAL 2023
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements. All statements that address expectations or projections about the future, including with respect to our expectations for our performance in fiscal year 2023, including our expectations for adjusted earnings per share a
Slide 3: Q1 2023 Highlights
Creating for Tomorrow Q1 2023 Highlights First quarter results in line with expectations; adjusted EPS1 of $0.98 and diluted EPS of $0.93 Reinforcement Materials segment EBIT of $94M; up 11% compared to the same quarter in the prior year Finalized calendar year 2023 Reinforcement Materials customer
Slide 4: Recent Recognition of our ESG Leadership
Recent Recognition of our ESG Leadership Named by Newsweek as one of America’s Most Responsible Companies for fourth consecutive year Recognized as one of Investor’s Business Daily’s 100 Best ESG Companies for the second consecutive year Recently named one of Newsweek’s America’s Greatest Workplaces
Slide 5: Next Phase of Battery Materials Investments
Next Phase of Battery Materials Investments U.S. expansion announced to meet growing demand Capacity Plans Enable Continued Growth U.S expansion plans recently announced to meet growing demand ◆ 5-Year Plan to invest approximately $200 million in the U.S. ◆ Includes 15,000 metric tons of conductive
Slide 6: Q1 2023 Financial Highlights
Q1 2023 Financial Highlights Adjusted EPS1 Discretionary Free Cash Cash Flow1 $0.98 $63 million $190 million Diluted EPS $0.93 Cash flow from operations of $52M Capex Liquidity Operating Tax Rate1 $35 million $1.1 billion 25% YTD Fiscal ‘23 expected to Net Debt to EBITDA FY’23 forecast range be appr
Slide 7: Reinforcement Materials Segment
Reinforcement Materials Segment Operating Performance Q1 2023 EBIT RESULTS Q2 2023 OUTLOOK 2H 2023 OUTLOOK ◆ Unit margins improved due to ◆ Expect EBIT to increase from ◆ Impact of price and product mix favorable pricing and product mix improved pricing and product mix improvement in calendar year i
Slide 8: Performance Chemicals Segment
Performance Chemicals Segment Operating Performance Q1 2023 EBIT RESULTS Q2 2023 OUTLOOK 2H 2023 OUTLOOK ◆ Volumes declined 8% driven by ◆ Volumes expected to improve ◆ Volumes in larger product lines elevated levels of destocking, key sequentially as destocking comes to expected to return to more e
Slide 9: 2023 Outlook Consistent with Prior Quarter
2023 Outlook Consistent with Prior Quarter Adjusted EPS1 expected to be $6.25-$6.75 in fiscal 2023 Key Assumptions 2023 Outlook ◆ Expect strong growth in Battery Materials ◆ Reaffirming $6.25 - $6.75 adjusted EPS1 ◆ Reinforcement Materials 1H FY23 volumes guidance for fiscal 2023 impacted by destock
Slide 10: Q&A
CABOT QLFISCAL 2023 10
Slide 11: Appendix
APPENDIX Q1 FISCAL 2023 11
Slide 12: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation includes references to adjusted earnings per share (EPS), total segment EBIT, segment EBITDA, adjusted EBITDA, adjusted ROIC, discretionary free cash flow, and operating tax rate, which are non-GAAP measures. Reconciliations of Adjusted EPS to net
Slide 13: Non-GAAP Financial Measures: Total Segment EBIT and Adjusted EBITDA
Non-GAAP Financial Measures Total Segment EBIT and Adjusted EBITDA Our Chief Operating Decision Maker uses segment income (loss) from continuing operations before interest and taxes (which we refer to as segment “EBIT”) to evaluate the operating results of each segment and to allocate resources to t
Slide 14: Non-GAAP Financial Measures: Segment EBITDA
Non-GAAP Financial Measures Segment EBITDA Segment EBITDA is comprised of Segment EBIT plus depreciation and amortization. Management believes that Segment EBITDA is useful supplemental information because it provides investors with a view of the cash generated by each of the Company’s segments, whi
Slide 15: Free cash flow & Discretionary free cash flow
Non-GAAP Financial Measures Free cash flow (FCF) & Discretionary free cash flow (DFCF) To calculate “Discretionary Free Cash Flow” we deduct sustaining and compliance capital expenditures and changes in Net Working Capital from cash flow from operating activities. Dollars in millions Q1 FY2023 Q1 FY
Slide 16: Non-GAAP Financial Measures: Adjusted EPS
Non-GAAP Financial Measures Adjusted EPS Fiscal 2023 (A) Dec. Q Mar. Q June Q Sept. Q FY 2023 Reconciliation of Adjusted EPS to GAAP EPS Net income (loss) per share attributable to Cabot Corporation $ 0.93 $ — $ — $ — $ 0.93 Less: Certain items after tax per share (0.05) — — — (0.05) Adjusted earnin