Slide 1: Cabot Earnings Teleconference Third Quarter Fiscal 2024
CABOT EARNINGS TELECONFERENCE Third 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 and the expected performance of our bu
Slide 3: Q3 2024 Highlights
Q3 2024 Highlights 1 Q3 GAAP EPS of $1.94; Adjusted EPS1 of $1.92 Reinforcement Materials segment EBIT of $129 million; up 37% year over 2 Reinforcement Materials segment EBIT of $136 million; up 3% year over year year 3 Performance Chemicals segment EBIT of $55 million; up 72% year over year Cash F
Slide 4: Continued Leadership in Sustainability
Continued Leadership in Sustainability Released 2024 Sustainability Report outlining significant progress towards 2025 Sustainability Goals Awarded Platinum Rating from EcoVadis for Sustainability leadership for fourth consecutive year Achieved Operation Clean Sweep Europe® Certification for recogni
Slide 5: New Level of Discretionary Free Cash Flow Generation
New Level of Discretionary Free Cash Flow Generation Enabling future growth investments while returning cash to shareholders Discretionary Free Cash Flow1 Capital Allocation Priorities ($ in millions) $500 2024 Forecast High confidence, high return investments FY21-FY23 Average: $368M per year $400
Slide 6: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights Adjusted EPS1 Cash flow from Cash and Cash Operations Equivalents $1.92 $207 million $197 million Diluted EPS $1.94 Discretionary Free Cash Flow1 of $128M Capex Debt Balance Operating Tax Rate1 $52 million $1.1 billion 28% YTD FY‘24 expected to be Liquidity FY’24 forecas
Slide 7: Reinforcement Materials Segment
Reinforcement Materials Segment Operating Performance Q3 2024 RESULTS SEGMENT EBIT & EBITDA Q4 2024 OUTLOOK ($ in millions) ◆ Global volumes up 4% year- ◆ Expect modest sequential EBIT $152 over-year from growth in Asia +3% $149 improvement Pacific and Europe $136 ◆ Volumes expected to improve $132
Slide 8: Performance Chemicals Segment
Performance Chemicals Segment Operating Performance Q3 2024 RESULTS SEGMENT EBIT & EBITDA Q4 2024 OUTLOOK ($ in millions) ◆ Volumes up 9% driven by $75 ◆ EBIT expected to be higher year specialty carbons and fumed over year from higher volumes metal oxides product lines and improved product mix +72%
Slide 9: 2024 Outlook
2024 Outlook Raising Adjusted EPS1 guidance 1 $7.00 to $7.10 adjusted EPS expected for fiscal 2024; up 31% year-over- year at the midpoint Strong Reinforcement Materials performance expected to 2 continue Higher year-over-year volumes and margins expected Year-over-Year growth expected in Performanc
Slide 10: 2024 Investor Day Save the Date
Ser sen ae le 2024 INVESTOR DAY SAVE4THE.DATE December 4, 2024 | Boston, MA
Slide 11: Q&A
Q&A
Slide 12: Appendix
Appendix
Slide 13: 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 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 $ 1.49 $ 1.94 $ — $ 4.30 Less: Certain items after tax per share (0.68) (0.29) 0.02 — (0.95) A
Slide 15: 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 16: 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 17: Free cash flow & Discretionary free cash flow
Non-GAAP Financial Measures Free cash flow (FCF) & Discretionary free cash flow (DFCF) Dollars in millions FY16-FY19 FY21-FY23 FY16 FY17 FY18 FY19 Average FY21 FY22 FY23 Average FY24 Q1 FY24 Q2 FY24 Q3 FY24 YTD Cash provided by (used in) operating activities (B) $ 386 $ 340 $ 299 $ 363 $ 257 $ 100 $
Slide 18: 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 June 30 2024 2023 (Provision) / Benefit for (Provision) / Benefit Dollars in millions (unaudited) Income Taxes Rate for Income Taxes Rate Effective Tax Rate $ (40) 25% $ (4