Slide 1: Investor Update
July 20, 2007 Investor Update
Slide 2: Forward-looking statements
Certain matters discussed in this presentation are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company’s statements regarding trends in the marketplace and potential futur
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, low 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 - Packaging - Wareho
Slide 7: Historical Financial Performance
Q2 2007 Q2 2006 Q1 2007 FY 2006 FY 2005 Historical Financial Performance $ in millions, except per share data Revenues $94.7 $79.5 $86.3 $324.3 $296.6 Gross Profit 17.3 15.4 14.5 63.1 53.5 Gross Margin 18.3% 19.3% 16.8% 19.5% 18.0% Operating Income 6.9 4.9 4.3 21.3 8.2 Income from Continuing Operati
Slide 8: Historical Financial Performance - Cont'd
March 31, 2007 September 30, 2006 September 30, 2005 Historical Financial Performance- Cont’d $ in millions Cash $ 1.6 $ 17.4 $ 3.2 Total Debt 51.2 43.5 33.6 Working Capital, minus cash 43.8 40.1 38.1 Equity 76.4 91.7 77.1 Debt-to-capitalization 40.1% 32.2% 30.4%
Slide 9: Operating Margin Breakdown 2004-March 2007
Operating Margin Breakdown 2004-March 2007
Slide 10: Operating Income, Assets, ROA% by Business Segment
Operating Income, Assets, ROA% by Business Segment
Slide 11: Value Creation Opportunities - FY 2007 and Beyond
Value Creation Opportunities - FY 2007 and Beyond ■ Cultivate global customer relationships ■ FY 2007 expansion into the Middle East (Dubai) ■ Capitalize on current market strength in Australia ■ FY 2007 expansion of compounding capacity in Malaysia ■ Aggressively grow oilfield service product sales