Cabot Corporation · NYSE:CBT
Cabot — Q1 2024 Earnings Presentation
16 slides from Cabot's earnings presentation, Feb 6, 2024
Slide 1: Cabot Earnings Teleconference First Quarter Fiscal 2024
CABOT EARNINGS TELECONFERENCE First Quarter - Fiscal 2024
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 2024, including for adjusted EPS, with respect to anticipated growth in
Slide 3: Q1 2024 Highlights
Q1 2024 Highlights 11 Q1GAAP Q1 GAAPEPS EPSof of$0.88; $0.88;Adjusted AdjustedEPS EPS11of of$1.56 $1.56 ReinforcementMaterials Reinforcement Materialssegment segmentEBIT EBITof of$129 $129million; million;up up37% 37%year yearover over 22 year year Finalized 2024 Reinforcement Materials customer agr
Slide 4: Executing Against our Creating for Tomorrow Strategy
Executing Against our Creating for Tomorrow Strategy Adjusted EPS1 Reinforcement Materials: Resilient and 1 growing business with structural improvements $6.30 - $6.80 Guidance Range Performance Chemicals: 2 Portfolio of growth businesses with $5.02 upside potential Building strategic positions in B
Slide 5: Key Cash Flow Metrics (TTM)
Key Cash Flow Metrics (TTM) Cash Flow Highlights Cash Generation Cash Return Strong execution resulting in robust cash flow Cash Returned to Operating Cash Flow Shareholders Continuous and growing dividend reflecting $648M $203M2 confidence in long-term cash flow outlook Expect to be opportuni
Slide 6: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights Adjusted EPS1 Cash flow from Cash Operations $244 million $1.56 $105 million Liquidity Diluted EPS $0.88 Discretionary Free Cash Flow1 of $118M $1.2 billion Capex Debt Balance Operating Tax Rate1 $54 million $1.3 billion 28% YTD FY‘24 expected to be Net debt to EBITDA1 F
Slide 7: Reinforcement Materials Segment
Reinforcement Materials Segment Operating Performance Q1 2024 RESULTS SEGMENT EBIT & EBITDA Q2 2024 OUTLOOK Favorable pricing and product Expect EBIT to increase mix from calendar year 2023 sequentially from improved customer agreements +37% pricing and product mix in calendar year 2024 customer
Slide 8: Performance Chemicals Segment
Performance Chemicals Segment Operating Performance Q1 2024 RESULTS SEGMENT EBIT & EBITDA Q2 2024 OUTLOOK Volumes up 10% driven by Sequential volume increase the specialty carbons, specialty expected driven by seasonality compounds and fumed metal oxides product lines as Higher costs sequentia
Slide 9: 2024 Outlook
2024 Outlook Adjusted EPS1 guidance re-affirmed 1 $6.30 to $6.80 adjusted EPS expected for fiscal 2024; up 22% year- over-year at the midpoint Reinforcement Materials outlook remains strong 2 Price and product mix benefit from 2024 customer contracts Modest volume increase aligned with demand growth
Slide 10: Q&A
Q&A
Slide 11: Appendix
APPENDIX Q1 FISCAL 2024 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, free cash flow, discretionary free cash flow, and operating tax rate, which are non-GAAP measures. Reconciliations of Adjusted EPS to ne
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 Adjusted EPS
Non-GAAP Financial Measures Adjusted EPS Fiscal 2024 (A) Dec. Q Mar. Q June Q Sept. Q FY 2024 Reconciliation of Adjusted EPS to GAAP EPS Net income (loss) per share attributable to Cabot Corporation $ 0.88 $ — $ — $ — $ 0.88 Less: Certain items after tax per share (0.68) — — — (0.68) Adjusted earnin
Slide 15: 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 16: Non-GAAP Financial Measures Operating Tax Rate
Non-GAAP Financial Measures Operating Tax Rate TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATE Three months ended December 31 2023 2022 (Provision) / Benefit for (Provision) / Benefit Dollars in millions (unaudited) Income Taxes Rate for Income Taxes Rate Effective Tax Rate $ (34