Slide 1: Investor Update September 4, 2008
Investor Update September 4, 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: ICO: polymer compounding, size reduction and specialty services
Icom) ICO is a global provider of polymer compounding, size reduction and specialty services. ICO produces custom polymer powders for rotational molding and other polymer segments, inclu coatings and masterbatch. 1¢O remains an industry leader in size reduction, compounding and other tolling service
Slide 4: ICO at a Glance
ICO at a Glance § 900 Employees § 20 Plants/Warehouses § Organized into 5 regions: Bayshore, ICO Polymers North America, ICO Europe, ICO Asia Pacific, ICO Brazil § 69% of revenues derived internationally § Ranked 20 th by the Houston Chronicle on the May 2008 list of top 100 public companies based i
Slide 5: ICO's Fit in the Value Chain
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 ASSETS UTILIZED Drilling rigs, p
Slide 6: Products & Services: Custom Powders and Compounds
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 7: Custom Powders for Rotational Molding
We do not manufacture the above items. The above items are an example of applications that our customers manufacture which contain our product. Custom Powders for Rotational molding
Slide 8: Compounds, including Concentrates, Produced by Bayshore Industrial
Compounds, including Concentrates Produced by Bayshore Industrial We do not manufacture the above items. The above items are an example of applications that our customers manufacture which contain our product.
Slide 9: Size Reduction Services
■ Ambient Grinding - high-volume, typically moderate value-add service ■ Cryogenic Grinding - greater value-add and requiring more technical expertise to serve the market for heat sensitive materials ■ Jet Milling - greater value-add and requiring more technical expertise for ultrafine particle size
Slide 10: Size Reduction Services
Size Reduction Services We do not manufacture the above items. The above items are an example of applications that our customers manufacture which contain our product.
Slide 11: Global Platform: Europe
Verolanuova, IT Soreco, FR Montereau, FR Beaucaire, FR Gainsborough, UK ’s-Gravendeel, NL
Slide 12: Global Platform: ICO North America
Global Platform ICO North America China, TX Fontana, CA Grand Junction, TN East Chicago, IN Bayshore MB Compounding - - LaPorte, TX Allentown, PA
Slide 13: Global Platform: ICO Asia-Pacific
Global Platform ICO Asia-Pacific ICO Malaysia ICO New Zealand ICO Australia Brisbane ICO U.A.E ICO Australia Melbourne
Slide 14: Global Platform: ICO Polymers Brazil
Global Platform ICO Polymers Brazil Belo Horizonte, Brazil Americana, Brazil
Slide 15: Historical Financial Performance
*Nine months ended June 30, 2008 $5.2 $8.2 $21.3 $29.8 $21.6 Operating income ($ in millions) $257.5 $296.6 $324.3 $417.9 $338.7 Revenues ($ in millions) Historical Financial Performance
Slide 16: Historical Financial Performance: Third Quarter 2008 Highlights
9 Months Q3 2008 Q3 2007 Q2 2008 FY 2008 FY 2007 Historical Financial Performance Third Quarter 2008 Financial Highlights: • Revenues of $115.7 million, an increase of $2.3 million or 2% from the prior year • Operating income of $6.5 million • Net income per share of $.17 fully diluted • Total debt
Slide 17: Debt, Equity Position and Net Debt to Capitalization
June 30, 2008 September 30, 2007 September 30, 2006 Historical Financial Performance- Cont’d (a) During FY2007, the Company repurchased Preferred Stock for $28.5 million. (a) (a) Debt, Equity Position and Net Debt to Capitalization - 20.0 40.0 60.0 80.0 100.0 120.0 September September September Sept
Slide 18: Operating Margin Breakdown
Operating Margin Breakdown 17% 9% 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% Nine months ended June 30, FY FY FY2005 FY2004 Gross Margin SG&A Operating Margin
Slide 19: Return on Assets by Business Segment
FY2007 Return on Assets by Business Segment (a) ROA is calculated by dividing operating income by total assets. 9% 30% 10% 25% 5% - 20.0 40.0 60.0 80.0 100.0 120.0 ICO Europe Bayshore Industrial ICO Asia Pacific ICO Polymers North America ICO Brazil 0% 5% 10% 15% 20% 25% 30% 35% FY07 Operating Incom
Slide 20: 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 our business in the Middle East and India ■ Profitably grow our business in Brazil and South Ame