Slide 1: Cabot Earnings Teleconference Second Quarter Fiscal 2024
CABOT EARNINGS TELECONFERENCE Second 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 earnings
Slide 3: Q2 2024 Highlights
Q2 2024 Highlights 11 Q1 Q2GAAP GAAPEPS EPSof of$0.88; $1.49;Adjusted EPS11of AdjustedEPS of$1.56 $1.78 Reinforcement ReinforcementMaterials Materialssegment segmentEBIT EBITof of$129 $149million; million;up up37% 22%year yearover over 22 year year 3 Performance Chemicals segment EBIT of $31 million
Slide 4: Balanced Capital Allocation Framework
Balanced Capital Allocation Framework Continue to Return Robust Cash to Shareholders Cumulative Share Dividend Per Share Repurchases Strong cash generation to fund high growth investments ($ in millions) while returning cash to shareholders $1.66 $697 Announced an 8% dividend increase yesterday; rem
Slide 5: Product Innovation Enables Sustainability
Product Innovation Enables Sustainability E2C® DX9660 won the Tire Technology International 2024 Awards for Innovation and Excellence recognizing advances in tire technology and progress toward a more sustainable industry Launched PROPEL® E8 engineered reinforcing carbon black - promoting better eff
Slide 6: Q2 2024 Financial Highlights
Q2 2024 Financial Highlights Adjusted EPS1 Cash flow from Cash Operations $206 million $1.78 $176 million Liquidity Diluted EPS $1.49 Discretionary Free Cash Flow1 of $128M $1.3 billion Capex Debt Balance Operating Tax Rate1 $43 million $1.2 billion 28% YTD FY‘24 expected to be Net debt to EBITDA1 F
Slide 7: Reinforcement Materials Segment
Reinforcement Materials Segment Operating Performance Q2 2024 RESULTS SEGMENT EBIT & EBITDA Q3 2024 OUTLOOK ($ in millions) ◆ Favorable pricing and product ◆ Expect EBIT in line with Q2 2024 mix from calendar year 2024 $166 +22% ◆ Higher plant maintenance costs customer agreements $149 $140 and lowe
Slide 8: Performance Chemicals Segment
Performance Chemicals Segment Operating Performance Q2 2024 RESULTS SEGMENT EBIT & EBITDA Q3 2024 OUTLOOK ($ in millions) ◆ Volumes up 6% driven ◆ Modest volume improvement $51 by specialty carbons expected sequentially and specialty compounds $46 product lines +11% ◆ Margins expected to hold as $31
Slide 9: 2024 Outlook
2024 Outlook Adjusted EPS1 guidance increased 1 $6.65 to $6.85 adjusted EPS expected for fiscal 2024; up 25% year- over-year at the midpoint Reinforcement Materials outlook remains strong 2 Price and product mix benefit from 2024 customer contracts Modest sequential volume increase expected Performa
Slide 10: Q&A
Q&A
Slide 11: Appendix
Appendix
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 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 $ 1.49 $ — $ — $ 2.37 Less: Certain items after tax per share (0.68) (0.29) — — (0.96) Adjuste
Slide 14: 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 15: 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: Free Cash Flow & Discretionary Free Cash Flow
Non-GAAP Financial Measures Free cash flow (FCF) & Discretionary free cash flow (DFCF) Dollars in millions Fiscal 2024 Reconciliation of Free Cash Flow and Discretionary Free Cash Flow to Cash provided by (used in) operating activities Dec. Q Mar. Q June Q Sept. Q FY 2024 Cash provided by (used in)
Slide 17: Operating Tax Rate
Non-GAAP Financial Measures Operating Tax Rate TABLE 3: RECONCILIATION OF EFFECTIVE TAX RATE TO OPERATING TAX RATE Three months March 31 2024 2023 (Provision) / Benefit for (Provision) / Benefit Dollars in millions (unaudited) Income Taxes Rate for Income Taxes Rate Effective Tax Rate $ (47) 33% $ (