Tpc Co., Ltd · KRX:130740
Tpc — Investor Presentation (November 2011)
17 slides from Tpc's investor presentation, Nov 15, 2011
Slide 1: C4 Hydrocarbons
C4 Hydrocarbons A leader in service-based processing, infrastructure and logistics for the C hydrocarbons industry. 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: Value Proposition: Market Leader in C4 Hydrocarbons
Cash Flow 3 Market Leader in C4 Hydrocarbons Growing end-user markets Unique logistics and infrastructure Disciplined, experienced management Stable, consistent cash flows High Return on Invested Capital Value Creation for Shareholders Growth in fees and margins Value Drivers Capital Investment Serv
Slide 4: Company Overview
Fuels & Blending 4 C4 Processing Performance Products TPC Group Products Segment Vol. Uses Products Segment Vol. Uses TPC 30% A 21% B 15% C 15% TPC 28% A 25% B 20% C 18% D 9% Company Overview Butadiene Sales Volumes North America Gross Profit ($MM) $250 Volumes (MMlbs) 2,538 Gross Profit (¢/lb) 9.8
Slide 5: What we do—C4 Processing and Logistics Infrastructure
BD BD BD BD BD BD BD BD BD BD Ethylene Steam Cracker Separation Purification BD BD BD BD BD BD BD BD BD BD Ot Ot 5 What we do—C4 Processing and Logistics Infrastructure B1 B1 B2 B2 iBL iBL Bn Bn Mixed C4 Coproduct Logistics and Infrastructure Pipeline - Barge - Railcar B1 B1 B2 B2 iBL iBL Bn Bn Puri
Slide 6: What we do - Performance Products
6 Performance Products Performance Products What we do - Performance Products Isobutylene High Purity Isobutylene (HPIB) Diisobutylene (DIB) Polyisobutylene – (PIB,HR-PIB) Propylene Nonene Tetramer iBL Stable, contractual business model focused on growth in profitable downstream derivatives Surfacta
Slide 7: Service Based Fee Business Model
7 Product % Segment Contractual Fee Structure % Contract Service Based Fee Business Model Butadiene (BD) 47% Butylenes: • Butene-1 (B-1) • Raffinates 10% High Purity Isobutylene 18% Nonene Tetramer 35% Customers-Contractual, fixed service fees* Suppliers-Processing fee with energy pass-through Buy a
Slide 8: Strong, Sustainable Cash Flow
8 Strong, Sustainable Cash Flow excludes Dehydro assets Strategic Location (US “Petrochemical Corridor”) Considerable Barriers to Entry Long Standing, Integrated Relationships Unique, Scalable Infrastructure ($120/share)¹ Replacement Value Sole Independent Merchant Processor
Slide 9: TPC is transforming to unlock opportunities
9 Future Present Past TPC is transforming to unlock opportunities Strategically-driven Market Leader Service-based infrastructure and logistics business model Driving a performance-based culture Operational excellence focus Expanded profit streams Diverse business models Natural gas liquids economic
Slide 10: Our strategy is based on compelling fundamentals
10 Excellent Long- Term Market Fundamentals Idled Assets and Scalable Infrastructure Able to Be Deployed Key Products in Structural Short Supply Cost-Advantaged Raw Materials (NGLs) in Plentiful Supply Our strategy is based on compelling fundamentals
Slide 11: Key Products in Structurally Short Supply
Low-cost Ethane from NGLs resulting from Shale Drilling Causing shift from heavier (e.g. Naptha) to lighter (e.g. Ethane) Ethylene Cracker Feedstocks NA Ethylene Industry now Globally Competitive Ethylene Production now generates less Co- Products, particularly Butadiene Key Products in Structurally
Slide 12: Strategy Going Forward
12 Excellent Long-Term Market Fundamentals Idled Assets and Scalable Infrastructure Able to Be Deployed Key Products in Structural Short Supply Cost- Advantaged Raw Materials (NGLs) in Plentiful Supply Strategy Going Forward Meet the Growing Demand for On-Purpose Butadiene and Isobutylene Our strate
Slide 13: Profit growth a result of service-based model
13 Profit growth a result of service-based model 96.3 58.6 89.5 159.6 2008 2009 2010 LTM Sept- Adjusted EBITDA ($MM) 0.7% 4.4% 8.4% 13.7% 2008 2009 2010 LTM Sept- ROIC
Slide 14: Value Proposition
14 Market Leader in C4 Hydrocarbons Unique logistics and infrastructure Growing end-user markets Disciplined, experienced management Stable, consistent cash flows Growth in fees and margins Value Drivers Cash Flow Capital Investment High Return on Invested Capital Value Creation for Shareholders Val
Slide 15: TPC Group
#* TPC Group 3° TPC Group
Slide 16: Reconciliation of Adjusted EBITDA to Net Income
16 SEC Disclosure Information Reconciliation of Adjusted EBITDA to Net Income 9/30/2011 6/30/2011 3/31/2011 12/31/2010 9/30/2010 Net income (loss) 9.4 $ 34.3 $ 11.4 $ (0.7) $ 12.8 $ Income tax expense 6.4 17.7 5.7 (1.6) 6.9 Interest expense, net 8.6 8.6 8.4 11.1 3.2 Depreciation and amortization 10.
Slide 17: Glossary
17 Glossary C4 hydrocarbons – a mixture of four carbon hydrocarbon molecules BD – 1,3 Butadiene, C H B-1 – Butene-1, C H B-2 – Butene-2, C H Isobutylene – Isobutene, C H Butane – Normal Butane or Isobutane, C H Hydrocarbon – compounds containing carbon and hydrogen bonded together Olefins – carbon m