EARNINGS TELECONFERENCE

FIRST QUARTER ‐ FISCAL 2021

1

FORWARD LOOKING STATEMENTS

This presentation contains forward‐looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including with respect to our expectations for demand for our products, our expectations for earnings and volumes in the second quarter of fiscal 2021, our expectations for operating cash flow generation, are forward‐looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, potentially inaccurate assumptions, and other factors, some of which are beyond our control and difficult to predict. If known or unknown risks materialize, or should underlying assumptions prove inaccurate, our actual results could differ materially from past results and from those expressed or implied by forward‐looking statements. Importantly, as we cannot predict the duration or scope of the COVID‐19 pandemic, the negative impact to our results cannot be estimated. Factors that will influence the impact on our business and operations include the duration and extent of the pandemic, the extent of imposed or recommended containment and mitigation measures, and the general economic consequences of the pandemic. Other important factors that could cause our results to differ materially from those expressed or implied in the forward‐ looking statements include, but are not limited to, competition from other specialty chemical companies; volatility in the price of energy and raw materials; a significant adverse change in a customer relationship; safety, health and environmental requirements; unanticipated delays in site development projects; negative or uncertain worldwide or regional economic conditions and market opportunities, including from trade relations or global health matters; and fluctuations in foreign currency exchange and interest rates. These factors are discussed more fully in the reports we file with the Securities and Exchange Commission ("SEC"), particularly under the heading "Risk Factors" in our annual report on Form 10‐K for our fiscal year ended September 30, 2020 and subsequent SEC filings, filed with the SEC at www.sec.gov. We assume no obligation to provide revisions to any forward‐looking statements should circumstances change, except as otherwise required by securities and other applicable laws.

CABOT CORPORATION

2

Q1 2021 OVERVIEW

  • Adjusted EPS(1) up 71% to a record of $1.18; Diluted EPS up 51% to $1.06
  • Strong volumes in the tire and automotive markets, as the recovery momentum continued globally
  • Cabot well positioned to benefit from China growth
  • Reinforcement Materials EBIT increased 87% year over year to a record high of $88M from improved pricing and product mix in Asia and in our calendar year 2020 customer agreements
  • Performance Chemicals EBIT up 32% year over year due to higher volumes across the segment and strong product mix from automotive applications

1. Non‐GAAP measure - See Appendix

(in $ millions)

Q1 2021

Q1 2020

Total Segment EBIT1

$

140

$

86

Adjusted EBITDA1

$

166

$

114

Dividends

$

20

$

20

Operating Cash Flow

$

21

$

105

CABOT CORPORATION

3

ADVANCING STRATEGIC INITIATIVES

  • Converting plant in Xuzhou, China to manufacture specialty carbons
  • Provide growth capacity for high value specialty carbons grades and balanced geographical footprint
  • Completed integration of Shenzhen Sanshun Nano into our Energy Materials business
  • Customer adoptions and sales with the top 10 global battery producers continue to build momentum
  • The packaging sector is beginning a transition from analog to digital printing with inkjet technology
  • Cabot is well positioned with product adoptions at many of the leading printer OEMs
  • Platinum rating in recognition of our sustainability efforts from EcoVadis ‐ ranked among the top 1% of companies in our peer group
  • Named one of America's Most Responsible Companies 2021 by Newsweek

CABOT CORPORATION

4

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

Cabot Corporation published this content on 02 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 February 2021 12:35:05 UTC.