Tpc Co., Ltd · KRX:130740
Tpc — BB&T Capital Markets Commercial & Industrial Conference 2010
20 slides from Tpc's conference presentation, Mar 24, 2010
Slide 1: Valuable, Unique & Stable Bridge from Mixed C4 to Purity Products
A Valuable, Unique & Stable Bridge from Mixed C4 to Purity Products Charles Shaver President and Chief Executive Officer Ruth Dreessen Executive Vice President and Chief Financial Officer BB&T Capital Markets Commercial & Industrial Conference Investor Presentation March 24, 2010 A Service-Based Int
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
2 BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 Forward-Looking Statements & Non-GAAP Financial Measures This presentation may contain forward-looking statements, including, in particular, statements about the plans, strategies and prospects of TPC Group Inc. (“the Company
Slide 3: Investment Highlights
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 3 Large Valuation Gap Attractive Market Position in Consolidated Industry Substantial and Strategic Asset Value Significant and Stable Free Cash Flow Differentiated Business Model Positioned for Margin Expansion and Growth Inve
Slide 4: Differentiated Business Model
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 4 Differentiated Business Model TPC Group: a C4 processor, logistics provider & marketer • C4: four carbon hydrocarbon by-products of ethylene production • Ethylene produced by cracking “heavy” (oil) or “light” (natural gas) –
Slide 5: Substantial & Strategic Asset Value
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 5 Substantial & Strategic Asset Value
Slide 6: Business Segments – C4 Processing & Performance Products
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 6 Business Segments – C4 Processing & Performance Products
Slide 7: C4 Processing – Logistics, Credibility, Competency
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 7 C4 Processing – Logistics, Credibility, Competency • Products: Butadiene, Butene-1, Raffinates • Suppliers: Dow, Formosa, Nova, CP Chem, Others (15 different ethylene plants) • Customers: Goodyear, Firestone, Lanxess, Invista
Slide 8: C4 Processing – Logistics, Credibility, Competency
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 8 C4 Processing – Logistics, Credibility, Competency • C4 markets remain tight, allowing margin increase opportunities • Raffinates margin is a percentage of gasoline price • Service fees for use of our logistical network • Any
Slide 9: Attractive Market Position in Consolidated Industry
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 9 Attractive Market Position in Consolidated Industry
Slide 10: Performance Products – Poised for Growth
BB&tal Markets Commercial & Industrial Conference – March 24, 2010 BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 10 Performance Products – Poised for Growth • Products: PIB, HPIB, DIB, Nonene, Tetramer • Suppliers: C4 Processing, LyondellBasell, BP, Others • Customers: Aft
Slide 11: Financials – Past Performance
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 11 Financials – Past Performance
Slide 12: Financials – Target
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 12 Financials – Target • Target EBITDA levels allow the company to earn in excess of WACC • C4 processing driven by margin expansion from favorable market conditions and reliable supply • Performance products driven by volume a
Slide 13: Significant & Stable Free Cash Flow
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 13 Significant & Stable Free Cash Flow A Valuable, Unique and Stable Bridge
Slide 14: Outlook – Positioned for Margin Expansion & Growth
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 14 Outlook – Positioned for Margin Expansion & Growth • C4 Processing – Expect long-term volumes to be stable, with opportunistic upside should heavier cracking return • Performance Products – Steady volume growth, particularly
Slide 15: Why TPC Group? Why Now?
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 15 Why TPC Group? Why Now? • Differentiated Business Model – Service-based intermediary with strong infrastructure & logistics network – Long-standing, service-based contracts limit exposure to commodity prices • Substantial an
Slide 16: Appendix
Investor Presentation – March 2010 Appendix
Slide 17: Reconciliation of Adjusted Bank EBITDA to Net Income
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 17 Reconciliation of Adjusted Bank EBITDA to Net Income
Slide 18: Reconciliation of Cash Flows
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 18 Reconciliation of Cash Flows Adjusted Cash Flow from Operations to Net Cash Provided by Operating Activities
Slide 19: Notes to EBITDA and Cash Flow Reconciliations
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 19 Notes to EBITDA and Cash Flow Reconciliations Adjusted Bank EBITDA is included in this presentation to provide investors with a view of the TPC Group’s financial performance as adjusted to exclude certain items that might af
Slide 20: Notes to EBITDA and Cash Flow Reconciliations (continued)
BB&T Capital Markets Commercial & Industrial Conference – March 24, 2010 20 Notes to EBITDA and Cash Flow Reconciliations (continued) 3. Based on total net business insurance claim of $47.0 million, comprised of (a) $19.5 million deductible, (b) $10.0 million cash recovery received in June 2009 and
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