Slide 1: Investor Update March 3, 2008
Investor Update March 3, 2008
Slide 2: Forward-looking statements
Certain matters discussed in this presentation are “forward-looking statements,” involving certain risks, uncertainties, and assumptions, intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. The Company’s statements regarding tr
Slide 3: About the Company
With 19 locations in 10 countries, ICO produces custom polymer powders and remains an industry leader in size reduction, compounding and other tolling services for plastic and non-plastic materials. ICO's Bayshore Industrial subsidiary produces specialty compounds, concentrates and additives primari
Slide 4: ICO's "Fit" in the Value Chain
Additive producer: CIBA, Teknor Oil & Gas Exploration and Production Ethane, Propane, Naphtha Polymer Producers: PE, PP, PS, PVC End Product Converters: tank producers, film manufacturers, toy makers, molders Ethylene, Propylene, Styrene, Vinyl Chloride Processors: ICO Polymers/ Bayshore Industrial
Slide 5: Products & Services
Compounds, including Concentrates Produced by Bayshore Industrial Products & Services Custom Powders for Rotational molding ■ Proprietary ICORENE ® and COTENE ® product lines sold across the globe ■ Business built on value-adds, such as: - Grades tailored to client, driven by application - R&D and t
Slide 6: Products & Services: Tolling Processing services
■ Ambient Grinding - high-volume, typically moderate value-add service ■ Cryogenic Grinding - greater value-add and requiring more technical expertise to serve the market ■ Jet Milling - greater value-add and requiring more technical expertise ■ Other related services: - Compounding - Blending - Pac
Slide 7: Global Platform: Europe
Verolanuova, IT Soreco, FR Montereau, FR Beaucaire, FR Gainsborough, UK ’s-Gravendeel, NL
Slide 8: Global Platform: North America
Global Platform ICO Polymers North America China, TX Fontana, CA Asbury, NJ Grand Junction, TN East Chicago, IN Bayshore MB Compounding LaPorte, TX
Slide 9: Global Platform: ICO Asia-Pacific
Global Platform ICO Asia-Pacific ICO Malaysia ICO New Zealand ICO Australia ICO U.A.E
Slide 10: Global Platform: ICO Polymers do Brazil
Global Platform ICO Polymers do Brazil Belo Horizonte, Brazil Started production operations in 2002
Slide 11: Historical Financial Performance
Historical Financial Performance
Slide 12: Historical Financial Performance
Q1 2008 Q1 2007 Q4 2007 FY 2007 FY 2006 Historical Financial Performance $ in millions, except per share data Revenues Gross Profit 19.1 $110.9 14.5 $86.3 21.4 $123.6 73.7 63.1 $324.3 Gross Margin 17.2% 16.8% 17.6% Operating Income 6.5 4.3 9.7 17.3% 29.8 21.3 19.5% Income from Continuing Operations
Slide 13: Historical Financial Performance - Cont'd: Debt, Equity Position
December 31, 2007 September 30, 2007 September 30, 2006 Historical Financial Performance- Cont’d Debt, Equity Position and Debt-to-Capitalization - 20.0 40.0 60.0 80.0 100.0 120.0 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% Net Debt Total Stockholders' Equity Net Debt to Capitali
Slide 14: Operating Margin Breakdown 2004-December 2007
Operating Margin Breakdown 2004-December 2007 17% 10% 6% 18% 9% 7% 20% 11% 7% 18% 12% 3% 19% 13% 2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% Q1 FY FY FY2005 FY2004 Gross Margin SG&A Operating Margin
Slide 15: Operating Income, Assets, ROIC% by Business Segment
Operating Income, Assets, ROIC% by Business Segment ROIC% computed as trailing twelve months operating income divided by average of last thirteen months invested capital base. Invested capital base equal to total tangible assets minus inter-company loans less current liabilities excluding debt. Dece
Slide 16: Value Creation Opportunities - FY 2008 and Beyond
Value Creation Opportunities - FY 2008 and Beyond ■ Capitalize on global platform • Cultivate global customer relationships • Further develop strategic raw material supply relationships ■ Profitably grow plant opened in 2007 in the Middle East (Dubai) ■ Profitably grow our business in Brazil and Sou