Slide 1: Cabot Earnings Teleconference Fourth Quarter Fiscal 2024
CABOT EARNINGS TELECONFERENCE Fourth 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 2025, including our expectations for performance and growth in our busi
Slide 3: Successful Achievement of Corporate Investor Day Objectives
Successful Achievement of Corporate Investor Day Objectives Overcoming significant macro headwinds Investor Day 2021 Assumptions Adjusted EPS⁶ CAGR of 12% Over $1.2 billion of DFCF⁶ to support growth and return cash to shareholders Capital expenditures invested in sustaining world class assets and i
Slide 4: Fiscal 2024 Highlights
Fiscal 2024 Highlights 1 FY24 GAAP EPS of $6.72; Adjusted EPS1 of $7.06 Reinforcement Materials segment EBIT of $129 million; up 37% year over 2 Reinforcement Materials segment EBIT1 of $537 million; up 11% year over year year 3 Performance Chemicals segment EBIT1 of $164 million; up 31% year over y
Slide 5: Significant Cash Generation in Fiscal 2024
Significant Cash Generation in Fiscal 2024 $692 million of operating cash flow and $479 million of discretionary free cash flow1 Invested in sustaining world class assets and in high-confidence growth projects $241 million of Capital Expenditures Maintained industry-competitive dividend Increased di
Slide 6: Sustainability Highlights in FY2024
Sustainability Highlights in FY2024 Creating a more sustainable world, today and into the future E2C® DX9660 won the Tire Technology International 2024 Released 2024 Sustainability Report outlining significant Awards for Innovation and Excellence recognizing advances in progress towards 2025 Sustain
Slide 7: $50M U.S. Department of Energy Grant Selection
$50M U.S. Department of Energy Grant Selection Enabling the Mobility Transition Battery Materials ◆ Selected by the U.S. Department of Energy’s (DOE) Office of Manufacturing and Energy Supply Chains for an award negotiation for $50 million Michigan, USA ◆ Cabot to build the first U.S. commercial sca
Slide 8: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights Adjusted EPS1 Cash flow from Cash and Cash Operations Equivalents $1.80 $204 million $223 million Diluted EPS $2.43 Discretionary Free Cash Flow1 of $105M Capex Debt Balance Operating Tax Rate1 $92 million $1.1 billion 26% FY24 FY‘25 expected to be Liquidity FY’25 foreca
Slide 9: Reinforcement Materials Segment
Reinforcement Materials Segment Operating Performance FY 2024 RESULTS Q4 2024 RESULTS Q1 2025 OUTLOOK ($ in millions) ($ in millions) ◆ (8%) EBIT expected sequentially driven Higher ◆ Global volumes up 3% year-over-year ◆ Global volumes down 1% year-over-year by $10 million of lower costs ◆ Favorabl
Slide 10: Performance Chemicals Segment
Performance Chemicals Segment Operating Performance FY 2024 RESULTS Q4 2024 RESULTS Q1 2025 OUTLOOK ($ in millions) ($ in millions) ◆ EBIT improved year-over-year due to ◆ Global volumes up 2% year-over-year ◆ Sequential EBIT to remain relatively flat higher volumes and unit margins ◆ Higher unit ma
Slide 11: 2025 Outlook
2025 Outlook Adjusted EPS1 guidance 1 $7.40 to $7.80 adjusted EPS expected for fiscal 2025; up 5-10% year-over- year EBIT growth expected across both segments 2 Higher year-over-year volumes in both segments and improved margins in Reinforcement Materials expected Operating cash flow outlook remains
Slide 12: 2024 Investor Day Save the Date
Ser sen ae le 2024 INVESTOR DAY SAVE4THE.DATE December 4, 2024 | Boston, MA
Slide 13: Q&A
Q&A
Slide 14: Appendix
Appendix
Slide 15: 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 16: 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 $ 2.43 $ 6.72 Less: Certain items after tax per share (0.68) (0.29) 0.02 0.63 (0
Slide 17: 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 18: 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 19: 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 FY 2022 - Free Cash Flow to Cash provided by (used in) Dec. Q Mar. Q June Q Sept. Q FY 2024 FY 2022 FY 2023 FY 2024 FY 2024 Cash p
Slide 20: 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 September 30 2024 2023 (Provision) / Benefit (Provision) / Benefit Dollars in millions (unaudited) for Income Taxes Rate for Income Taxes Rate Effective Tax Rate $ 10 -7% $