Technology ahead of its time

105 Pages·2007·2.98 MB·English

Technology ahead of its time
Cytec Industries Inc
.
(NYSE : CYT)
Investor Day Presentation
Presented by:
David Lilley, Chairman, President and CEO
Jim Cronin, Executive Vice President and CFO
Shane Fleming, President Cytec Specialty Chemicals
Steve Speak, President Cytec Engineered Materials
May 9, 2007
Forward Looking Statement and Non-GAAP Measures
During the course of this meeting we may make forward-looking statements. All statements that address
expectations or projections about the future are forward-looking statements.
Some of these statements include words such as “expects”, “anticipates,” “plans,” “intends,” “projects,” and
“outlook.” Although they reflect our current expectations, these statements are not guarantees of future
performance because they involve a number of risks, uncertainties, and assumptions.
Included in this presentation are estimates for full year 2007 sales and earnings. These were included in our
April 19, 2007 press release, which was also furnished as an exhibit to a current report on Form 8-K. These
estimates set forth the Company’s assumptions and management’s best estimate of the full year 2007 sales
and earnings at that time based on various assumptions set forth in the press release. There can be no
assurance that sales or earnings will develop in the manner projected. Actual results may differ materially.
We recommend that you review Cytec’s SEC filings for a discussion of some of the factors which could
cause actual results to differ materially from its expectations and projections. This and other Cytec
information may be accessed at www.cytec.com.
In sections of this presentation certain ‘non-GAAP” measures are provided and identified as such. We
believe that the “non-GAAP” measures can more accurately reflect comparisons of year to year trends and is
consistent with how we review the information. A reconciliation of all “non-GAAP” measures to the applicable
GAAP measure is provided in the appendix at the end of this presentation.
2
The Cytec Profile
2006
Sales $3.1B*
SSaalleess bbyy SSeeggmmeenntt SSaalleess bbyy GGeeooggrraapphhiicc RReeggiioonn
North America
Cytec Surface Specialties
38%
49%
Cytec Asia
14%
Specialty
Chemicals
9%
22% Building Block 6%
Chemicals
Cytec Performance 42% Latin America
20%
Chemicals*
Europe
Cytec Engineered Materials
* Excludes sales of divested water treatment chemicals product lines
3
OUR VISION
Cytec’s vision is to become a premier
specialty chemicals and materials company
through:
Customer Focus
Superior Technology
Operational Excellence
Employee Commitment
so that we can take pride in our
achievements and
our shareholders will enjoy the highest
return on their investment.
4
OUR MISSION
Cytec’s mission is to enhance
shareholder value through double-
digit percentage annual growth in
earnings per share, while achieving
a superior return on equity.
5
Cytec’s Growth Strategy
Focus on Technology
Grow With New Product
GDP Growth Geographic Expansion
Introductions and Existing
Growth With Market Products For New Applications Grow In Areas Such As:
Asia, Latin America
TOP LINE
Targeting 5-7% Top-Line Growth
&
Double-Digit EPS Growth
BOTTOM LINE
Bolt-On Acquisitions Operational Excellence
Continue to Enhance productivity
Focus On Creating Sustainable Technology Franchises
Focus On Creating Sustainable Technology Franchises
6
Agenda
Shane Fleming – President, Cytec Specialty Chemicals
– Cytec Performance Chemicals
– Cytec Surface Specialties
Steve Speak – President, Cytec Engineered Materials
– Cytec Engineered Materials
Jim Cronin – Executive Vice President and Chief Financial Officer
– Building Block Chemicals
– Income Taxes
– Capital Spending
– Balance Sheet
– Cash Flow
– EPS Wrap-Up
David Lilley – Chairman, President and Chief Executive Officer
– Questions
7
Cytec Performance Chemicals
Product lines discussed today:
• Mining Chemicals
• Polymer Additives
• Pressure Sensitive Adhesives
SShhaannee FFlleemmiinngg,, PPrreessiiddeenntt CCyytteecc SSppeecciiaallttyy CChheemmiiccaallss
8
Cytec Performance Chemicals Profile
2006 sales M$678*
Product Portfolio (% of Sales) By Region (% of Sales)
Pressure Sensitive Adhesive
Asia
Latin America
14%
Phosphine 15%
15%
7% Chemicals
Mining
Chemicals 31%
20%
33%
37%
Polymer Additives
10%
18%
Urethanes North America Europe
Specialty Additives
2006 operating margin 7.9%
(cid:131) #1 in specialty mining chemicals for copper and alumina processing
(cid:131) #1 high purity phosphine and derivative chemicals
(cid:131) A leading global supplier of polymer additives light stabilizers
(cid:131) Niche supplier for adhesives, emulsion polymers, inks, and acrylic monomer stabilization
* Excludes sales of divested water treatment chemicals product line
Staying The Course: Focus On Technology And Manufacturing Improvements
Staying The Course: Focus On Technology And Manufacturing Improvements
9
Mining Chemicals
Proven History
• Almost 100-year history in mining industry
• World’s largest full-line, full-service supplier of mining reagents
Value Proposition
• Use of Cytec reagents results in improved
metallurgy and recoveries, lower
operating costs, and production of
higher value end products
Global Presence
• Worldwide manufacturing and
distribution
• Technical service available across
the globe
Eco-Friendly
• Work with customers to address
environmental concerns and the safety
of their employees
Performance
• Business focus on maximizing customers’ return on investment
• New product introductions that exceed existing performance standards and push the
limits of what was previously thought possible
10