Slide 1: Spring Update
Spring Update A Valuable, Unique & Stable Bridge from Mixed C4 to Purity Products A Service-Based Intermediary with Strong Infrastructure & Logistics Network Exhibit 99.1
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
2 Forward-Looking Statements & Non-GAAP Financial Measures This presentation may contain “forward-looking statements” within the meaning of the securities laws. These statements include assumptions, expectations, predictions, intentions or beliefs about future events, particularly statements that ma
Slide 3: Business Overview
3 Business Overview • We manufacture products in high demand that support global mobilization – Rubber, fuel & lube additives = 75% of our end market applications – US car ownership 800/1000, Asia car ownership 40/1000 • …From feedstocks that are in tight supply – Light/heavy steam cracker feedstock
Slide 4: Products Overview
4 Performance Products Crude C4 Processing Butadiene Polyisobutylene “PIB” HR-PIB Conventional PIB Gasoline & Lube Additives Isobutylene Products Isobutylene Diisobutylene Phenolic Resins Surfactants Fuel & Lube Additives Propylene Derivatives Nonene Tetramer Plasticizers Lube Additives Surfactants
Slide 5: TPC Group: Substantial & Strategic Asset Value
5 TPC Group: Substantial & Strategic Asset Value
Slide 6: Our customers are experiencing and expecting growth
6 Our customers are experiencing and expecting growth Aligned With Industry Growth Goodyear Lanxess Invista Afton / Newmarket Macro, global market assumptions: • Cars in use: • 2000-2010: +150 million • 2010-2020: +240 million • +50 million tires/year, 2011-2015 • 2010-2013 CAGR: • 18% in consumer r
Slide 7: Business Segments – C4 Processing & Performance Products
7 Business Segments – C4 Processing & Performance Products C4 Processing Performance Products 21% Performance Products 34% Performance Products 14.6¢/lb 2.9 Billion lbs. (CY 2010) $268.1 Million (CY 2010) 79% C4 Processing 66% C4 Processing 7.6¢/lb
Slide 8: C4 Processing: What We Do
8 C4 Processing: What We Do • Relatively Stable Unit Margins Cash flow generation throughout the cycle • Service-based contracts and almost 2 inventory turns/month Mitigate Commodity Risk • No exposure to exchange rate movements Ethylene Plants Ethylene Propylene C ‘s B-1 BD Raffinates Isobutylene
Slide 9: Customers and Feedstock Suppliers: Critical Component in the Ethylene Value Chain
9 Customers Feedstock Suppliers Critical Component in the Ethylene Value Chain Unique, Long-standing Relationships with Customers and Suppliers » Customers and suppliers put their trust in TPC » Customers rely on TPC for securing raw materials, which they cannot make or significantly import » Suppli
Slide 10: Crude C4 Market Fundamentals
10 Crude C4 Market Fundamentals Source: CMAI; Light: Ethane, Propane Butane / Heavy: Naphtha, Fuel Oil; ytd through February Ethylene Cracker Rates B/E Ratio Source: CMAI Source: CMAI Feed to US Steam Crackers
Slide 11: Butadiene Market Fundamentals
11 Butadiene Market Drivers Near Term Long Term Butadiene Market Fundamentals Source: CMAI Source: CMAI Steam cracker rates B/E ratio End-market supply/demand Global commodity prices U.S. Butadiene Price Global Synthetic and Natural Rubber Prices
Slide 12: Performance Products: What We Do
12 Performance Products: What We Do Isobutylene (iBL) PIB HPIB Nonene/ Tetramer DIB Propylene
Slide 13: Performance Products – Description
13 Market Dynamics Growth Opportunities Products Description Performance Products – Description PIB (polyisobutylene) HR-PIB (highly reactive - polyisobutylene) • 1/3 of performance product volume • 75% of end-market lube and fuel additives • HR-PIB, patent protected • Historically highest margins a
Slide 14: Clear Path To 2012 EBITDA Target of $150 Million
14 Clear Path To 2012 EBITDA Target of $150 Million Notes: 2009 EBITDA excludes fees associated with opportunistic / non-recurring inventory handling • Fee structure enabling continued improvement in ROIC • Margin expansion mainly in performance products • Predominantly sold-out; limits near term vo
Slide 15: Dehydrogenation Project
15 Dehydrogenation Project • Asset – Unit was mothballed in 2007, and predominately manufactured MTBE • Opportunity – Feedstock: isobutane – Output: Isobutylene – But flexible • Rationale – Feedstock constrained – Construction costs below greenfield – NGL economics • Current Activity – $5 million fo
Slide 16: Dehydrogenation Project
16 2005-2010 2010 2011 ytd Dehydrogenation Project Isobutane (iC4) Dehydro Unit • $100-$150 million capital investment • 3 years • Expected return 18-24% Isobutylene (iBL) 600-650 mmppy to Performance Products •Polyisobutylene •Diisobutylene Isobutane MTBE % of Unleaded Regular Gasoline, spot price
Slide 17: Conclusion
17 Conclusion Differentiated Service-Based Business Model Following Mobility Megatrend • Asia move towards mobility and urbanization driving global demand for our products • Long-standing, service-based contracts limit exposure to commodity prices Feedstock supply secured through multi-year contract
Slide 18: TPC Group
3*° TPC Group
Slide 19: Three World-Scale Facilities
19 Three World-Scale Facilities TPC Manufacturing Overview Source: Company data
Slide 20: Selected Market Data
20 12/31/10 9/30/10 6/30/10 3/31/10 12/31/09 End of Qtr BD Contract Price ($/lb) (1) 0.86 0.93 0.92 0.76 0.65 Unleaded Gasoline Qtr Avg - USGC ($/gal) (2) 2.18 2.00 2.11 2.06 1.91 US Ethylene Industry Capacity Utilization (%) (3) 88.0 92.3 87.6 85.5 87.3 US BD Production (mm lbs) (3) (1) Source: CMA
Slide 21: Selected Financial Data by Segment
21 12/31/10 9/30/10 6/30/10 3/31/10 12/31/09 Revenue ($mm) 394.6 $ 397.9 $ 424.5 $ 299.7 $ 337.4 $ Gross Profit ($mm) 40.2 47.3 51.4 39.3 35.2 Adj. EBITDA ($mm)* 15.7 23.8 26.1 14.7 12.3 Volume (mm lbs) 597.2 587.1 644.7 531.0 680.6 Gross Profit/lb 0.07 $ 0.08 $ 0.08 $ 0.07 $ 0.05 $ Adj. EBITDA/lb 0
Slide 22: Selected Financial Data
22 12/31/10 9/30/10 6/30/10 3/31/10 12/31/09 Sales Volumes (mm lbs) (1) 738.2 748.7 802.7 684.7 821.4 Sales Revenue ($mm) 486.1 499.4 531.8 400.7 415.8 Adjusted EBITDA ($mm) C4 Processing 15.7 23.8 26.1 14.7 12.3 Performance Products 9.2 14.6 17.2 11.4 4.5 Corporate (5.9) (5.3) (7.8) (7.0) (6.7) Adj
Slide 23: SEC Disclosure Information
23 SEC Disclosure Information ADJUSTED EBITDA – REVISION OF PREVIOUSLY REPORTED AMOUNTS We calculate Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization (EBITDA), which is then adjusted to remove or add back certain items. Net Income (Loss) is the GAAP measure most dire
Slide 24: Adjusted EBITDA definition
24 (*) Adjusted EBITDA is presented and discussed herein because management believes it enhances understanding by investors and lenders of the Company’s financial performance. Adjusted EBITDA is not a measure computed in accordance with GAAP. Accordingly it does not represent cash flow from operatio
Slide 25: Reconciliation of Adjusted EBITDA to Net Income
25 Adjusted EBITDA would distort comparability between the periods presented. The following table provides a reconciliation of Adjusted EBITDA to Net Income (Loss) (in thousands) for the 2010 calendar year ended December 31, 2010 and the three most recent fiscal years ended June 30, 2010, 2009 and 2