Exhibit 99.2 Cabot Investor Day December 2, 2021
Safe Harbor Statement This presentation contains forward‐looking statements based on management’s current expectations, estimates and projections. Allstatements that address expectations or projections about the future, including statements about the Company’s strategy for growth, the future growthrates of our businesses and for our TM Battery Materials, Inkjet and E2C solutions product offerings, how we expect to achieve our growth targets, the benefits we expect from macroeconomic trends, the expected Reinforcement Materials capacity available from operational excellence and debottlenecking projects and when we expect additional capacity to be available, the range of price increases we expect of our reinforcing carbons products to cover environmental costs and the impact on tire prices, our product and application development activities, market position, when we expect capacity expansions to be completed, when we expect to provide disclosures aligned with TCFD, when we expect to consummate the disposition of our Purification Solutions business and complete the acquisition of ournew plant in Tianjin, China, our strategy for achieving net zero carbon emissions by 2050, our expected financial performance and results and total shareholder return, our expected cash flows, including DFCF and uses of cash for, among other uses, our capital expenditures, key growth projects and their costs over ourfiscal years period of 2022‐2024, and our operating tax rate, are forward‐looking statements. Forward‐looking statements are based on our current expectations, assumptions, estimates and projections about Cabot's businesses and strategies, market trends and conditions, economic conditions and other factors. These statements are not guarantees of future performance and are subject to risks, uncertainties, potentially inaccurate assumptions, and other factors, some of which arebeyond 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 in the forward‐looking statement. Important factors that could cause our results to differ materially from those expressed in the forward‐ looking statements include, but are not limited to lower than expected demand for our products; the loss of one or more of our important customers; our inability to complete capacity expansions or other development projects; the timing of implementation and the enforcement of environmental regulations; our failure to develop new products or to keep pace with technological developments; patent rights of others; the timely commercialization of products under development (which may be disrupted or delayed by technical difficulties, market acceptance, competitors' new products, as well as difficulties in moving from the experimental stage to the production stage); changes in raw material costs; demand for our customers' products; competitors' reactions to market conditions; delays in the successful integration of structural changes, including acquisitions or joint ventures; the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries where we do business; and severe weather events that cause business interruptions, including plant and power outages or disruptions in supplier or customer operations. These factors are discussed more fully in the reports we file with the Securities and Exchange Commission, particularly our latest annual report on Form 10‐K. Non‐GAAP Financial Measures and Explanations of Terms Used This presentation includes references to the following non‐GAAP financial measures: adjusted EPS (earnings per share), adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted EBIT (earnings before interest, taxes), adjusted EBITDA, total segment EBIT and EBIT margins, adjusted ROIC (return on invested capital), adjusted RONA (return on net assets), DFCF (discretionary free cash flow) and operating tax rate. The definitions of these non‐GAAP financial measures, reconciliations to the most comparable GAAP financial measures, and explanations of other terms used are provided in the Appendix to this presentation. 2 Cabot Corporation | Investor Day 2021
Today’s Agenda 11:00AM Performance Chemicals ‐Performance 9:30AM Welcome and Opening Remarks Additives Steve Delahunt Jeff Zhu VP, Treasurer and IR SVP and President, Performance Additives; President, Asia Pacific Region Winning Today and Creating for Tomorrow Sean Keohane Performance Chemicals ‐Formulated President and Chief Executive Officer Solutions Aaron Johnson ESG Leadership: Creating a More SVP and President, Formulated Solutions; Sustainable Future President, Purification Solutions Martin O’Neill Financial Framework SVP, SH&E, Government Affairs Erica McLaughlin Reinforcement Materials SVP and CFO Bart Kalkstein Closing Remarks SVP and President, Reinforcement Sean Keohane Materials; President, Americas Region President and Chief Executive Officer 10:30AM Q&A Session 12:00PM Q&A Session 10:50AM Break 3 Cabot Corporation | Investor Day 2021
Winning Today and Creating for Tomorrow Sean Keohane President & CEO Cabot Corporation | Investor Day 2021 | 4
Key Messages 1 2 3 4 5 Strong Execution Leading Businesses A Portfolio of High A Record of ESG A Strategy for Track Record with Durable Growth Vectors Leadership Breakout Value Advantages Creation Exceeded financial #1 or #2 in all of our Capitalizing on Driving circularity in Investing for commitments for specialty chemicals compelling macro operations and advantagedgrowth Advancing the Core businesseswith trends with strong partnering with with a continued focus strategy unparalleled global “Right to Win” positions customers to develop on returning excess footprint sustainable solutions cash to shareholders 5 Cabot Corporation | Investor Day 2021
1 Cabot at a Glance 4 FY’21 Financial Highlights Business Segments EBIT ($M) $329 FFo ou unded nded 1882 1882 $211 $652M 2 2 Reinforcement Materials Mark Marke ett Cap Cap ~$3.1B ~$3.1B $3.4B Adjusted Performance Chemicals Revenue 3 EBITDA Headqu Headquar artte errss Bos Bostton, on, MA MA Employ Employees ees ~4,500 ~4,500 #1 or #2 ~75% Business Revenue 4 Plan Plantt Loc Locaations tions 45 45 End Market Sectors Positions Outside U.S. Revenue (%) Consis Consistte en ntt Dividend Dividend 50+ 50+ Consecutiv Consecutive e Ye Yea arrss 14% His Histtor oryy Automotive OE 26% Replacement Tire 19% 22% 18% Infrastructure/Industrial Adj. EBITDA 3 Adj. ROIC Consumer/Other 3 38% Margin 1. Data as of year ended September 30, 2021; 2. Market cap as of November29, 2021; 3. Non‐GAAP measure –See Appendix; 4. Excludes Purification Solutions 6 Cabot Corporation | Investor Day 2021
Experienced and Diverse Global Management Team Sean Keohane Erica McLaughlin Bart Kalkstein Jeff Zhu Aaron Johnson President & Chief SVP & Chief Financial SVP & President, Reinforcement SVP & President, Performance SVP & President, Formulated Solutions; Executive Officer Officer Materials & Americas Region Additives& Asia Pacific Region President, Purification Solutions Diverse Strategy, M&A & Execution Financial Strategy and Execution Global Segment Leadership Global Segment Leadership Global Segment Leadership Expertise Martin O’Neill Patricia Hubbard Karen Kalita Art Wood Aled Rees SVP, Safety, Health & Environment SVP & Chief Technology SVP & General Counsel SVP & Chief Human SVP & President, Global Business and Government Affairs Officer Resources Officer Services&EMEA Region Diverse Sustainability Leadership Technology Leadership Strong Governance and M&A Talent Development, D&I, Culture Digital Transformation Expertise Leadership Team Positioned to Execute Our Strategy 7 Cabot Corporation | Investor Day 2021
Successfully Executed “Advancing the Core” Strategy Track Record of Strong Execution (2016 –2021) Divested Non‐Core Enhanced Operating Established a New Level Businesses & Reshaped Platform of Profitability Portfolio to Drive Growth 1 ◆ Announced Purification Solutions ◆ Commercial Excellence –strong ◆ Adjusted EPS CAGR of 12% since 2015, divestiture in 2021 customer‐centric culture supported by above target range of 7‐10% tools and data analytics 1 ◆ Divested Specialty Fluids business in 2019◆ Adjusted ROIC well in excess of WACC ◆ Global Business Services –greater 1 ◆ Invested to grow and strengthen our core ◆ Record Discretionary Free Cash Flow in standardization, scale and efficiency businesses fiscal 2021 ◆ Operational Excellence –increased ◆ Invested to develop new, high growth ◆ Returned 64% of Discretionary Free Cash reliability, quality and productivity 1 markets where we havea “right to win” Flow to Shareholders, well in excess of ◆ Digital Platform –automation of 50% target processes and enhanced data analytics ◆ Strong balance sheet and Investment Grade credit rating Delivered on Portfolio Changes, Operating Platform Updates and Financial Targets 1. Non‐GAAP measure –See Appendix 8 Cabot Corporation | Investor Day 2021
Strong Earnings Growth with High ROIC 1 1 1 1 Adjusted EPS Adjusted EBIT Adjusted EBITDA Adjusted ROIC +12% +10% +6% ($) ($M) ($M) ($M) CAGR CAGR CAGR $652 18% $5.02 $492 $470 $2.49 $286 8% FY2015 FY2021 FY2015 FY2021 FY2015 FY2021 FY2015 FY2021 Driven by Successful Execution of Strategy 1.Non‐GAAP measure –See Appendix 9 Cabot Corporation | Investor Day 2021
Leading Upstream Product Positions with Strategic Downstream Integration Core Performance Additives Reinforcing Specialty Fumed Carbons Carbons Metal Oxides # 1# 2# 2 Engineered Inkjet Specialty Battery Elastomer Colorants & Compounds Materials Composites Inks Strategic Downstream Formulations Enabling Unique Value Creation Potential 10 Cabot Corporation | Investor Day 2021
Leveraging Sustainable Competitive Advantages How We Win Unparalleled Global Leadership in Innovative Product Ability to Capitalize on Footprint Sustainability Leadership High‐Growth Markets u Exceptional Talent: global u Collaborate with customers u Long history of innovation u Uniquely positioned with perspective with local to develop innovative, and strong brands aligned conductivecarbon additive expertise sustainable solutions with favorable end markets technology u Leading Assets: Broad u Commitment to circularity in u #1 or #2 in all of our u Well‐positioned to capture flexibility through global ouroperations businesses high‐growth opportunities manufacturing network ꟷ Lithium‐ion batteries u Newsweekmagazine u Deep application knowledge u A “Best Operator” in China “America’s Most Responsible to meet complex customer ꟷ Digital conversion of with strong footprint Companies 2022” requirements industrial printing applications u Investor’s Business Daily’su Complementary upstream ꟷ Evolving mobility 100 Best ESG Companies of and downstream positions landscape 2021 Cabot Corporation | Investor Day 2021 11
We Have Built an Unparalleled China Position in our Businesses Investments Have Driven Acquired A BestOperator in China CNT Long‐Term Profitability producer Sanshun FMO u Long history of leveraging our in‐ operations Asia country “make and sell” business in Wuhai Technology 2020 model Center in Carbon Shanghai black 2019 operations u Well‐established ecosystem of strong in Xingtai Masterbatch partner relationships 2017 18% operations CAGR in Tianjin Carbon black 2013 u Established connectionto our operationsin Tianjin customers –both local and multi‐ FMO 2011 operationsin nationals Jiangxi 2005 Initial investment u Sustainability leadership in Shanghai 2004 u Deep talent bench 1988 FY11 FY16 FY21 FY01 FY06 1 China EBIT 12 Cabot Corporation | Investor Day 2021 1. Excludes global cost and corporate allocations outside of China
Positioned to Capitalize on Key Macro Trends Portfolio of High Growth Emerging Businesses TTrrends ends Cabot Cabot Solutions Solutions u Shift to electric vehicles u Battery materials for EV li‐ion batteries u Growth in global miles driven Changing Mobility u Specialty compounds for EMI shielding Landscape u Light‐weighting to drive fuel economy & EV range u E2C™solutions for longer life tires u Sensors to enhance vehicle safety and capability u Specialty compounds for drip irrigation pipe u Customers are innovating to deliver more u Specialty carbons for environmentally Increasing Focus sustainable products friendly dope dyed fiber on Sustainability u Increasing circularity of supply chains u Fumed Silica for structural adhesives for wind turbine blades u Inkjet Colorants for digital printing in packaging u Digitalization of everything and commercial applications Becoming a More u Growth and upgrade of the power Connected Worldu Specialty carbons for high resolution displays distribution infrastructure and touchscreen applications u Specialty carbons for reliable power cables High growth vectors 13 Cabot Corporation | Investor Day 2021
Cabot is aRecognized Leader in Sustainability Expanded BOD Oversight Refreshed Emissions Sustainability with Dedicated & Expanded Our Goals & Human Reporting SHE&S Sustainability Rights Policy Committee Goals Strong SHE&S Renewal & UN Global Management & Compact Commitment to Looking Forward Responsibility Signatory Continuous Progress Sustainability is Integrated into AllWe Do 14 Cabot Corporation | Investor Day 2021
Independent Board Built to Support Strategy Diverse Set of Expertise International Governance üü Strategy Operations üü Sue Rataj Dr. Cynthia Arnold Douglas Del Grosso Juan Enriquez Sean Keohane Chairwoman Former CTO, Valspar President and CEO, Adient CEO, Biotechonomy President and CEO, Cabot Technology Automotive ü ü Former Chief Executive, Ventures; Managing Director, BP Petrochemicals Excel Venture Management Director Since: 2011 2018 2020 2005 2016 Specialty Finance / üü Chemicals Accounting Strong Governance ~6 Years Average tenure 40% Gender and ethnic diversity William Kirby Michael Morrow Frank Wilson Dr. Matthias Wolfgruber Christine Yan Sustainability – independent Professor, Harvard Business Former Partner, PwC Former CFO, PerkinElmer Former CEO, Altana Former President of Asia committee dedicated to safety, health, School and Harvard and VP of Integration, University Stanley Black & Decker environment and sustainability matters Director Since: 2012 2017 2018 2014 2019 90% Independent with Independent Chairwoman 15 Cabot Corporation | Investor Day 2021
OUR PURPOSE Creating materials that improve daily life and enable a more sustainable future 16 Cabot Corporation | Investor Day 2021 16
OUR STRATEGY Creating for Tomorrow We will leverage our strengths to lead in performance and sustainability —today and into the future. GROW INNOVATE OPTIMIZE Investing for Developing innovative Driving continuous advantaged growth. products and processes improvement in that enable a better future. everything we do. 17 Cabot Corporation | Investor Day 2021
Our Strategy | Creating for Tomorrow Leveraging our strengths to lead in performance and sustainability— today and into the future GROW INNOVATE OPTIMIZE Developing innovative products and Driving continuous improvement in Investing for advantaged growth processes that enable a better future everything we do u Leverage and expand global reach to u Develop new products and processes that u Support customers through world‐class support customers and capture growth address sustainability opportunities manufacturing with an improved environmental footprint u Enhance product portfolio to drive u Advance product portfolio to capture u Deploy capital efficiently improved margin profile sales in higher margin, higher growth applicationsu Lead in cost competitiveness u Execute strategic, tuck‐in acquisitions in u Leverage digital technologies toimprove key growth markets u Focus on key areas of value chain to efficiency and businessperformance create maximum value u Invest in differentiated capacity u Deliver effective global business services expansions u Advance our application and formulation through scale, end‐to‐end process capabilities to deliver customer value management and digital enablement u Investments guided by ROIC discipline 18 Cabot Corporation | Investor Day 2021
2022 –2024 Outlook Supportive market environment and positive macro trends High value Performance Chemicals segment expected to grow volume 9‐11% with capacity additions, whileReinforcement Materials expected to maintain steady volume growth of 2‐3% Expect EBIT CAGR of 50%+ in Battery Materials 1 Expect adj. EPS CAGR of 8‐12% over the period 1 Over $1B of DFCF to support growth investments and cash return to shareholders Positionedto Deliver Strong Financial Performance & Create Breakout Value 19 Cabot Corporation | Investor Day 2021 1. Non‐GAAP measure –See Appendix
Creating for Tomorrow Path Ahead for Value Creation Pivoting to Higher Valuation Creation Roadmap Creating for Tomorrow Strategy (2022+) High growth vectors Battery Materials, Inkjet and E2C™ High Growth solutions Vectors Core Reinforcement Materials, Specialty Successfully Executed Carbons, Specialty Compounds, Advancing the Core Strategy Core Fumed Metal Oxides (2015‐2021) Divested businesses Core 1 Specialty Fluids, Purification Solutions Divested High Growth *Note: Size of bubbles illustrative of potential Vectors Legacy market value Lower Higher Profit Creating Value by Investing in Higher Growth, Higher Margin Businesses 1. Expected to close in the second quarter of fiscal 2022 20 Cabot Corporation | Investor Day 2021 Growth Rate
ESG Leadership: Creating a More Sustainable Future Martin O’Neill Senior Vice President ‐Safety, Health,& Environmentand Government Affairs Cabot Corporation | Investor Day 2021 | 21
ESG | Key Messages 1 2 3 4 Innovations for a Delivering World Driving Leading in ESG lower Carbon Class Performance Environmental Future Responsibly and Operational Excellence Portfoliooffersproducts Making progress A “best operator” in Long‐standing culture that solve ourcustomers’ against our 2025 our industries with the of sustainability; sustainability Sustainability goals technology, expertise continue to challengesand enable a and resources to provide visibility lower carbon future innovate for the future and transparency 22 Cabot Corporation | Investor Day 2021
ESG Leadership Provides Foundation for the Future Expanded BOD Oversight Refreshed Emissions Sustainability with Dedicated & Expanded Our Goals & Human Reporting SHE&S Sustainability Rights Policy Committee Goals Strong SHE&S Renewal & UN Global Management & Compact Commitment to Looking Forward Responsibility Signatory Continuous Progress Sustainability is Integrated into Every Facet of Our Business and Yielding Results 23 Cabot Corporation | Investor Day 2021
Our Innovative Chemistry EnablesSustainable Solutions Sustainability Trends Cabot Cabot Solutions Solutions Mobility u Light weighting u Extend tire life to reduce waste u Low rolling resistance for fuel efficiency and EV range Specialty Carbonsand Silicas Reinforcing carbons & E2C™solutions Conductive carbon additives & formulations u Li‐ion batteries for EVs Enable significant light weighting Extend tire life and improve EV range Drive performance of next‐gen batteries Infrastructure u Alternative energy sources u Improved insulation Fumed silica Specialty carbon blacks Conductive carbons for power cables u Improved power distribution Provides critical functionality for Energy efficient EPS foam insulation with For more efficient and infrastructure for reliability structural adhesives in turbine blades lower thermal conductivity reliable energy distribution Consumer u Digital printing u Enabling recycling of plastics Inkjet colorants for digital printing Specialty carbons Innovative formulations & compounds u Fiber dying alternatives Consume less energy & enable more For dope dyed fiber, eliminating Enable circularity and u Aqueous pigment systems sustainable packaging environmental effluents enhance recycling Our Broad Portfolio Enables a Lower Carbon Future Cabot Corporation | Investor Day 2021 24
Circularity is Embedded in Our Operating Practices Raw Raw Pr Product oduct Materials/ Materials/ Feedstock of our carbon black Specific Specificaattion ion By By‐ ‐products products and fumed silica product lines are a by‐product of another production process Energy centers convert waste Re Recco ove verryy & & Ma Manuf nufaaccturing turing heat into useful energy at a R Re ecy cycling cling rate of 125% of energy purchased Innovating to increase use of recycled content Waste Waste Use Use Circularity Results in Broad Sustainability Benefits Cabot Corporation | Investor Day 2021 25
Making Progress with Broad Sustainability Focus Caringfor our people Buildinga better Acting responsibly and communities future together for the planet Cabot Corporation | Investor Day 2021 26
Caringfor Our People and Communities United Nations Sustainable Objectives 2025 Targets Progress Development Goals u Achieved 96% and 88% of our Personal Safety Goals – Occupational FY 2021 Global Total Recordable Incident Rate of 0.34 u Reduce injuries and significant process Health & safety events by 50% u Achieved 40% of our Process Safety Goal to reduce Safety significant process safety events u An inaugural sponsor of the Future of STEM Scholars Initiative (FOSSI) u Foster inclusion and Retention, support development Diversity & u Formed new employee resource groups, including the Black Employees and Allies United (BEAU) Developmentu Increase diverse representation u 99% of leaders completed unconscious bias training u Engaged 91% of our sites in volunteering, site‐level or Cabot Foundation donations u 100% of our locations engaged with our communities Community u Supported essential workers and COVID‐19 relief efforts Engagement u Invest $10M to help our communities thrive u Contributed over $3M in support our communities over the last two years Cabot Corporation | Investor Day 2021 27
Buildinga Better Future Together United Nations Sustainable Objectives 2025 Targets Progress Development Goals Economic u Achieved 36% of our goal Value u Invest $1B in capital and technology u Completed strategic investments in our operating Generated and facilities and portfolio Distributed u Completed comprehensive life cycle analysis (LCA) of carbon black u Assess sustainability impacts of our top product applicationsu Several priority LCAs underway Product u 100% of our new products and u 100% of products have been evaluated for Sustainability processes will have a sustainability sustainability benefits benefit u 62% ofprojects have sustainability benefit against 2025 goal of 100% u Suppliers acknowledge conformance with Cabot Supplier Code of Conduct Supplier u Engage our key suppliers on sustainability Sustainability u Driving reduction of GHG emissions in transportation network Cabot Corporation | Investor Day 2021 28
ActingResponsibly for the Planet United Nations Sustainable Objectives 2025 Targets Progress Development Goals Environmental u 100% of facilities certified with an u 76% of our locations have achieved external environmental management system certification Compliance u Reduce GHG intensity by 20% u Achieved 77% of our GHG intensity goal Emissionsu Reduce NO emissions intensity by 50% u Achieved 82% of our NO and 36% SO intensity X X 2 reduction goals u Reduce SO emissions intensity by 40% 2 u Exported 125% of amount of energy imported on path u Export 200% of energy imported to achieve 200% Energy u Reduce energy intensity by 10% u Achieved 81% of our energy intensity reduction goal u Reduced waste generation rate by 7% from 2019 levels u Reduce waste disposal from operations by 20% and ultimately eliminate Waste & Spills u Increasing beneficial reuse of manufacturing waste manufacturing waste streams u Identified our sites located in high‐risk water basins u Reduce water withdrawal Water intensity by 20% u Completed pilot water risk assessment Cabot Corporation | Investor Day 2021 29
A Leader in ESG Transparency A strong culture of leadership in sustainability enables us to differentiate ourselves Commit Committte ed d to to TTrranspar ansparency ency Aw Awar ards ds and and R Re ecognition cognition Disclosures on energy and emissions to Achie ved Platinum rating for sustainability CDP (formerly Carbon Disclosure Project) from EcoVadis in 2021; Cabot ranked among published annually since 2010 –latest rating of B top 1% of chemical companies Have issued sustainability reports in accordance Named one of America’s Most Responsible with GRI Standards since 2010 Companies 2022 by Newsweekmagazine; This is the third consecutive year of Included Sustainability Accounting Standards recognition for Cabot. Board (SASB) framework beginning in 2019 Recognized as one of Investor’s Business Completed assessment according to the Daily’s100 Best ESG Companies of 2021 Task Force for Climate‐related Financial Disclosures (TCFD) guidelines in 2020 E2C™solutions recognized by European Rubber Journal in their inaugural Top 10 Proud signatory to UN Global Compact since Elastomers for Sustainability (E4S) initiative 2015 in 2020 Cabot Corporation | Investor Day 2021 30
Our Net Zero Ambition We support the objectives established by the Paris Climate Agreement and will set ambitious goals to enable us to achieve net zero carbon emissions by 2050 TTrranspar ansparency ency Our Our Pa Patth hw wa ayy Our Our Appr Approach oach u Continued transparency of our u We will work with the Science Based Targets u Continue to drive process yield improvements accomplishments and climate strategy initiative (SBTi) to develop interim targets on and optimization to reduce Scope 1 emissions through public reporting our path to achieve net zero carbon u Invest in opportunities to further enhance emissions by 2050 u Disclosures aligned with waste heat recovery and increase the use of u Our pathway to 2050 will focus on: renewable energy in our operations to reduce ꟷ CDP (2010) Scope 2 emissions ꟷ Optimizing existing technologies ꟷ SASB (2019) u Increase circularity in our operations with use ꟷ Improving energy efficiency ꟷ TCFD (2022) of reclaimed carbon, recycled polymers and ꟷ Maximizing the use of renewable alternative feedstocks energy u We will accelerate our efforts to explore the ꟷ Advancing new technology innovations advancement of existing as well as new and innovative technologies to our unique network of plants We Expect to Achieve Net‐Zero in 2050 through Collaboration, Innovation and Public Policy Cabot Corporation | Investor Day 2021 31
ESG | Key Takeaways Enabling a lower carbon future by delivering products 1 that address sustainability challenges Progressing against our 2025 Sustainability goals 2 Driving circularity and resource conservation across our 3 operations A leader in our industry through transparency and a 4 vision for the future 32 Cabot Corporation | Investor Day 2021
Reinforcement Materials Bart Kalkstein SVP and President, Reinforcement Materials President Americas Region Cabot Corporation | Investor Day 2021 | 33
Reinforcement Materials | Key Messages 1 2 3 4 Global Leader with Durable Earnings Supportive Sustainable Robust Cash with Plans to Grow Industry Solutions for the Generation Structure Mobility Evolution Global footprint serving Strong operator with Limited capacity additions Engineered Elastomer TM leading tire and industrial opportunity to expand and cost passthrough Composite (E2C ) rubber products leading capacity share mindset support pricing solutions drive better customers generating that generates returns on performance and enable strong EBITDA returns sustainability investments incorporation of and cash flows sustainable materials for new EV fleet 34 Cabot Corporation | Investor Day 2021
Reinforcement Materials at a Glance 1 Key Products Competitive Landscape Key Applications Tires u Reinforcing carbons provide durability to rubber goods Cabot TM u E2C solutions deliver higher levels of rubber performance Comp A Cabot is Auto Weather‐Stripping the Industry Industry Environment Comp Leader Others B (Capacity MT) u Long‐term reinforcing carbon Comp C demand CAGR of 2‐3% globally, Comp with strongest growth rates in D Belts, Hoses, Seals Southeast Asia at 4‐5% annually u Limited supply‐side capacity expansions announced leading to Competitive Advantages: tightening industry utilization u Broad global footprint to best serve global customers and help regional customers expand u Stricter environmental Mining Equipment requirements increasing barriers u Technology leadership for efficient production and high‐ to entry performance products u Energy centers that produce power with no additional emissions u Business is largely make‐in‐region, TM sell‐in‐region, thus insulated from u Investment in E2C solutions as differentiated growth platform for global supply chain disruptions the future 1. Source: Notch Carbon Black World Data Book; Cabot estimates; 35 Cabot Corporation | Investor Day 2021 Competitors include: Birla, Black Cat, Orion, Tokai
Attractive Network of Global Assets 1 19% 1 1 39% EMEA 42% Americas Asia u 20 plantsglobally u Aligned with customers and world reinforcing carbons growth u Significant economies of scale;superior cost competitiveness The Right Assets in the Right Places 1. Percent of FY’21 revenue 36 Cabot Corporation | Investor Day 2021
Rubber Applications Using Reinforcing Carbons 1 Reinforcing Carbons for Rubber Applications Industrial Products 21% O.E. O.E. Light Vehicle 14% 23% (LV) Tires 35% Heavy 2021 Light Industrial Non‐ Commercial Auto Auto Vehicle Rubber Industry Vehicle 52% 48% Other Tires Products Volumes Tires Tires 17% Replacement Replacement 86% 77% Heavy Commercial Vehicle (HCV) Tires 27% Replacement Demand Primary Driver for Tire Applications; New Auto Builds Key Driver for Industrial Products 1.Source: LMC World Tyre Forecast Service; Cabot estimates 37 Cabot Corporation | Investor Day 2021
Parc Shows Smooth, Steady Replacement Growth; Global Recessions Temporary with Rapid Recovery 1 1 1 Vehicle Parc Tire Production Vehicle Production 2.3% 3.2% 4.5% (M) China (M) (M) Global CAGR Global CAGR Global CAGR (2021‐2026) (2021‐2026) (2021‐202~40% 6) 2,250 110 1,800 100 2,000 1,600 China 90 China 1,750 China 1,400 ~20% 80 ~30% ~40% 1,500 1,200 70 1,250 1,000 60 50 1,000 800 40 750 600 30 500 Rest of World 400 Rest of World Rest of World Rest of World 20 250 200 10 0 0 0 China Continues to be Major Player in Auto and Tire Production 38 Cabot Corporation | Investor Day 2021 1. Source: LMC World Tyre Forecast Service ; Periods 2022‐2026 forecasted amounts
Strong Profitability and Cash Generation 1 Segment EBIT Segment EBITDA Excess Cash +10% +9% +15% 2 ($M) ($M) CAGR CAGR CAGR Generation ($M) $399 $329 $298 $226 $182 $143 FY2015 FY2021 FY2015 FY2021 FY2015 FY2021 Funding Company Growth Projects and Return to Shareholders 1. Non‐GAAP measure –See Appendix 39 Cabot Corporation | Investor Day 2021 2. Excess Cash generation = EBITDA –Total Segment CAPEX
Strong Execution Driving Performance Commercial Excellence Operational Excellence Yield and Energy Management ◆ Leading supply position with key ◆ Added ~150,000 MT of capacity ◆ Continuous improvement program 2 global tire accounts through debottlenecking and OEE drives product yields up and CO 2 improvements in last five years intensity down ◆ Evolution of pricing formulas based 1 3 on market conditions (e.g., DCA )◆ Higher rates, lower OQ , greater ◆ Expanded energy center production 2 availability all drive OEE performance at several sites ◆ Product mix emphasis on higher value tread and industrial product grades◆ Additional capacity helps support ◆ Nearly doubled energy center Performance Chemicals growth revenues since 2015 Margin Contribution OEE Improvement Energy Center Revenue by Region of Sale Asia Pacific EMEA Americas 2015 2021 2017 2021 2015 2021 1. Delivered Cost Adjustment 2. Overall Equipment Effectiveness 3. Off Quality 40 Cabot Corporation | Investor Day 2021
Capital Efficiency Will Drive Future Growth Continued OEE Cilegon, Indonesia Inorganic Improvements Expansion Opportunities u Additional 100,000+ MT can u Fastest growing region, u Increase scale and market be unlocked through structurally short supply of share in strategic operational excellence and carbon black, brownfield geographies low capital debottlenecking expansion with competitive u Targeting assets with projects cost structure strong base technology u Globally distributed, low u Project slowed down due u Attractive investments with capital cost, improves to COVID‐19 opportunity to upgrade economies of scale u Anticipate capacity u Additional capacity supports available in 2024 growth in Batteries, Specialty Carbons and Compounds 41 Cabot Corporation | Investor Day 2021
Proven Ability to Pass through Environmental Costs Environmental Costs Drive Price . . . But Impact to Tire Manufacturer . . . And Cabot Has Demonstrated Increases in Carbon Black . . . Economics are Modest . . . Ability to Pass Costs through u Significant SO , NO reductions enabled u Completed air emissions projects at 2 X through investments in air emissions Pampa, TX and Canal, LA plants in the US Gross Margin Fixed Cost equipment 31% 35% u Currently working on air emissions Typical u Our leadership in China provides a strong project at Ville Platte, LA plant 17‐inch experience base in building and u Price increases have enabled us to grow SUV Tire operating air emissions equipment 1 North America RONA % since 2015 Price u CO costs driven by emission trading 2 Carbon Black Cost markets 3% Other Variable Cost 35% u Price increases to cover costs and an investment return can be in 25% range 1. Non‐GAAP measure –See Appendix 42 Cabot Corporation | Investor Day 2021
Electric & Hybrid Vehicle Growth Expected to Change Tire Markets ~17% LV Tire Light Vehicle Light Vehicle Percent of Tire Sales to ~33% ~10% 1 1 Hybrid & Electric Production 1 Production Percent Production PARC Percent of Parc in 2026 Hybrid & Electric (M) Hybrid & Electric (M) (M) in 2026 in 2026 120 2,000 BEV 1,600 EV 1,800 EV 100 Hybrid 1,400 1,600 EV Hybrid 1,200 1,400 Hybrid 80 1,000 1,200 60 1,000 800 800 600 40 600 400 ICE ICE ICE 400 20 200 200 Tires for EV and Hybrid Vehicles will Drive Growth for Reinforcement Materials 1. Bloomberg NEF and Cabot Analysis 43 Cabot Corporation | Investor Day 2021 EV: Battery Electric Vehicle, Plug‐in Hybrid
Well‐Positioned to Benefit from Macro Trends Auto Industry Tire Industry Cabot’s Reinforcing Impact on Trends & Challenges Trends & Challenges Materials Opportunity Cabot Solutions Higher torque Quicker replacement Growth in volume Changing Move Battery weight Higher wear Better mix Mobility to EVs Lower noise Performance rubber Material innovation Landscape Longer range Lower rolling resistance Growth in silica Growing Circular economy Sustainable materials targets Material innovation Increasing Environmental TM Desire to reduce footprint Desire to reduce footprint E2C solutions Focus on Awareness Sustainability Growth of Becoming a Growth in miles driven Higher replacement rates Growth in volumes Autonomous More High frequency tire use New tire needs Potential innovations Vehicles and Ride Connected Sharing World 44 Cabot Corporation | Investor Day 2021
Innovations Focused on Sustainable Product, Process and Downstream Solutions PERFORMANCE Material Process Innovations Innovations Developing process Designing for performance, sustainability and circularity: technologies: Cabot Engineered u Biobased additivesu Reducing GHG emissions Advantage u Novel morphology additivesu Increasing energy capture u Reclaimed carbon u Enabling use of sustainable feedstocks QUALITY E2C™Solutions Introducing next generation Engineered Elastomer Composites: u Better rubber performance u Enable use of sustainable elastomers and additives 45 Cabot Corporation | Investor Day 2021
Engineered Elastomer Composites (E2C™) Solutions Provides Long Term Growth Platform Next Growth Platform Following Batteries and Inkjet Ultra‐Large Mining Tires Long‐Haul Truck Tires Performance EV Tires Benefits Benefits Benefits u Improved fuel efficiencyu Durable, lightweight tires u Higher truck productivity u Longer tire life & reduced downtimeu Increased vehicle range u Increased mine output u Lower fleet operating costsu Lower vehicle total cost of ownership u Reduced End‐of‐Life tire waste Sales Growth Today 2025‐26 2030+ 46 Cabot Corporation | Investor Day 2021
Reinforcement Materials | Key Takeaways Global Leader With Robust Cash Generation Right assets in the right places and an experienced team 1 delivering strong execution Durable Earnings Base with Plans to Grow Limited industry capacity expansions provide 2 opportunity for advantaged M&A Supportive Industry Structure Pricing structures with pass‐through cost formulas 3 provide platform for managing environmental costs Sustainable Solutions for the Mobility Evolution Transition to EVs presents opportunity for growth, 4 TM including future E2C development 47 Cabot Corporation | Investor Day 2021
Q&A 48 Cabot Corporation | Investor Day 2021
Break 49 Cabot Corporation | Investor Day 2021
PERFORMANCE CHEMICALS Jeff Zhu Aaron Johnson SVP and President, SVP and President, Formulated Performance Additives; Solutions; President, President, Asia Pacific Region Purification Solutions Cabot Corporation | Investor Day 2021 | 50
Performance Chemicals | Key Messages 1 2 3 4 5 Breadth of Product Top Tier Macro‐Driven Portfolio of High Potential for Manufacturing, Technologies and Demand Positions Growth, High Significant Value R&D and Manufacturing Segment for Margin Businesses Creation Commercial Outsized Growth Footprint Capabilities Strong positions in Strong growth across Leading market Strong capabilities Global footprint and Battery Materials and provide for business geographies driven by positions, attractive value chain integration Inkjet for Packaging, continuityand enable positive demand growth rates and enable differentiated which are projected to inflection due to products with high premium value offerings provide significant propositions increasing barriers to entry growth opportunities electrification, digitalization and sustainability trends 51 Cabot Corporation | Investor Day 2021
Performance Chemicals Financial Performance Volume Segment EBIT +4% +3% GDP+ volume growth (KMTs) ($M) CAGR CAGR despite headwinds driven by external environment $211 $178 Continued to invest in areas with significant growth potential Delivered fiscal 2021 1 EBITDA of $284M as growth investments start to take hold FY2015 FY2021 FY2015 FY2021 Invested to be Positioned to Drive Significant Growth 1. Non‐GAAP measure –See Appendix 52 Cabot Corporation | Investor Day 2021
Performance Chemicals Exposure is Well‐Balanced 1 End Market Exposure Products enable wide range of functionalities; ubiquitous in everyday life Transportation Infrastructure / Asia 26% Industrial Resilient demand across many attractive applications 44% Diverse customer base: 3,000+ EMEA customers globally Consumer / 30% Other Globalend markets and applications: 1,000+ products Cabot Corporation | Investor Day 2021 1. Exposure based on FY’21 Revenue 53
Globally Distributed Sales and Production Facilities Recent Growth Investments 1 1 32% 26% 1 u Specialty Carbons: EMEA Americas 42% Xuzhou, China acquisition Asia and capacity conversion u Battery Materials: Tianjin, China conversion and Zhuhai, China CNT acquisition u Fumed Metal Oxides: Capacity expansions in Wuhai, China and Carrollton, KY, USA Specialty Carbons u Specialty Compounds: Specialty Compounds Cilegon, Indonesia capacity FumedSilica expansion 54 Cabot Corporation | Investor Day 2021 1. Percent of FY’21 revenue
Performance Chemicals Portfolio of attractive specialty businesses Performance Additives FormulatedSolutions Fumed Metal Oxides Inkjet Specialty Carbons Specialty Compounds w Versatile performance additives w A leading global supplier of w Products deliver color, w Growing, high‐RONA used in range of applications water‐based dispersions to the conductivity and UV protection formulation business focused (e.g., adhesives, food, coatings inkjet market with ~30% share on black masterbatches and w Leading position in conductive and pharmaceuticals) conductive compounds carbon additives critical to w Developing a market leading lithium‐ion battery market w High‐margin business with position in the commercial & w Serves a wide range of industries attractive industry structure emerging packaging segments w Capacity additions enable including auto, agriculture, growth and regional infrastructure, and packaging w Scarcity of feedstock, expertise w Opportunity for 25%+ annual optimization towards meeting and scale create significant EBIT growth through 2024 w Unique backward integration customer demand barriers to entry and global footprint w Diverse set of GDP+ growth w Well‐positioned to deliver end markets sustainable innovations and capture macro‐driven growth 29% $352M $52M 15% $796M $232M EBITDA EBITDA Revenue EBITDA Revenue EBITDA Margin Margin Fiscal 2021 Fiscal 2021 55 Cabot Corporation | Investor Day 2021
SPECIALTY CARBONS Jeff Zhu SVP and President, Performance Additives; President, Asia Pacific Region Cabot Corporation | Investor Day 2021 | 56
Performance Chemicals Portfolio of attractive specialty businesses Performance Additives FormulatedSolutions Fumed Metal Oxides Inkjet Specialty Carbons Specialty Compounds w Versatile performance additives w A leading global supplier of w Products deliver color, w Growing, high‐RONA used in range of applications water‐based dispersions to the conductivity and UV protection formulation business focused (e.g., adhesives, food, coatings inkjet market with ~30% share on black masterbatches and w Leading position in conductive and pharmaceuticals) conductive compounds carbon additives critical to w Developing a market leading lithium‐ion battery market w High‐margin business with position in the commercial & w Serves a wide range of industries attractive industry structure emerging packaging segments w Capacity additions enable including auto, agriculture, growth and regional infrastructure, and packaging w Scarcity of feedstock, expertise w Opportunity for 25%+ annual optimization towards meeting and scale create significant EBIT growth through 2024 w Unique backward integration customer demand barriers to entry and global footprint w Diverse set of GDP+ growth w Well‐positioned to deliver end markets sustainable innovations and capture macro‐driven growth 15% $796M $232M 29% $352M $52M EBITDA Revenue EBITDA EBITDA Revenue EBITDA Margin Margin Fiscal 2021 15% 24% 57 Cabot Corporation | Investor Day 2021
Specialty Carbons Specialty Carbons at a Glance Overview Competitive Landscape Key Industries Industrial/Infrastructure u Global elevated growth driven w MV/HV Cables by electrification, infrastructure, Cabot digitalization w Pressure Pipes Others u EV penetration accelerating as w Industrial Coatings 2021E automakers shift toEVs 1 Volume Comp Automotive u Continued pull for expanded A w Batteries additive performance and Comp w Plastics/Synthetic functionality in existing and B emerging applications Fiber w Coatings u Customers demanding products Competitive Advantages: from responsible suppliers with Consumer u A leading global producer of demonstrated track record on specialty carbons w Displays sustainability u Most comprehensive global w ESD/Electronics u High industry utilizations yield conductive carbon portfolio, w Synthetic Fiber favorable returns including carbon black, carbon nanotubesandnanostructures Advanced Product Functionality: u Downstream integration Conductivity,UV resistance, processibility,jetness, blue accelerates innovation and undertone, tint strength,rheology control, opticaldensity, CO 2 commercialization adsorption, reinforcement 1. Source: Cabot estimates; Competitors include: Birla, Orion 58 Cabot Corporation | Investor Day 2021
Specialty Carbons Creating for Tomorrow by Addressing Key Macro Trends Macro trends position business for outsized growth Specialty Carbons Solution u Broad conductive carbon additives portfolio positions business Changing as a leader in EV lithium‐ion batteries Key Investments in China Mobility u Specialized carbons for enhancing performance in automotive and Battery Materials Landscape and electronic applications Position Us to Capture Significant Future Growth u A leader in UV‐resistant and clean semiconductive carbons for Increasing clean water and power distribution applications +~50,000 metric tons Focus on Xuzhou, China acquisition and conversion u A leader in carbons for synthetic fiber, resulting in increased Sustainability Anticipated online in fiscal 2022 use of dope‐dye process to eliminate environmental effluents +~30,000 metric tons Tianjin and Zhuhai, China Battery capacity expansion Becoming a u CNT and CNS provide high conductivity at low loading, enabling smaller and lighter components, and providing EMI (CNT & Carbon Black) More shielding Anticipated online in fiscal 2022‐2024 Connected u A world‐leader in carbons for high resolution display and World touchscreen applications requiring higher performance 59 Cabot Corporation | Investor Day 2021
Specialty Carbons Strong Underlying Growth with Competitive Advantages Resilient Macro trends Well‐positioned Sales to 6 of top 8 demand battery makers driving growth for EV expansion Driven by broad product Mobility, Sustainability A leading manufacturer with With new product programs portfolio with diverse and Connectedness broad suite of conductive progressing at all of them benefits in everyday underpinning demand carbon additives for batteries products inflection Potential to Create Significant Shareholder Value 60 Cabot Corporation | Investor Day 2021
SPOTLIGHT ON BATTERY MATERIALS WITHIN SPECIALTY CARBONS Cabot Corporation | Investor Day 2021 | 61
Battery Materials Vehicle Electrification Drives Need for Li‐ion Batteries Global Passenger Vehicles annual sales u EVs with lithium‐ion batteries expected to have >50% (inmillions) share of global passenger vehicles sold in 2035 100 1 u Manycountries and companies supporting EV growth 90 80 ꟷ Biden administration’s EV goal shoots for half of new car sales 70 in the U.S. to be electric by 2030 60 50 ꟷ In China, goal of ~40% of vehicles sold to be electric by 2030 40 ꟷ GM aims to end sales of gas and diesel vehicles by 2035 30 20 ꟷ VW expects half of its sales from BEVs by 2030; ~100% of new 10 vehicles in major markets expected to be zero‐emission by 0 2040 2015 2020 2025 2030 2035 ICE BEV Source: Bloomberg NEF BEV: Battery Electric Vehicle & Plug‐in Hybrid ICE: Internal Combustion Engines& Hybrid Strong EV Market Growth Expect >30% CAGR 2021‐2030 1. Sources: Thomson Reuters; Volkswagen 62 Cabot Corporation | Investor Day 2021
Battery Materials Conductive Carbon Additives (CCAs) Market Expected to Grow ~30% CAGR Accelerating Battery Demand Increasing Global Conductive Carbon Additives 1627 (CCA) Demand (GWh) MT 950 80,000 26% CAGR 2020‐2027 345 60,000 280 Carbon Black (Powder) 45 60 40,000 2020 2030 20,000 North America Europe Asia Pacific 0 2020 2021 2022 2023 2024 2025 2026 2027 500,000 u Lithium‐ion battery growth expected totranslate 400,000 35% CAGR 2020‐2027 into significant CCA demand 300,000 Carbon Nanotubes (Dispersions) u Battery demand expected to grow across all regions, 200,000 as battery manufacturers install global capacity 100,000 0 2020 2021 2022 2023 2024 2025 2026 2027 Source: Cabot Internal Assessment Source: ABB Sponsored report, March 2021, by Automotive from Ultima Media 63 Cabot Corporation | Investor Day 2021
Battery Materials Conductive Carbon Additives are a Critical Component for Lithium‐ion Batteries Conductivecarbon additives connect active materials within the electrode for efficient and durable charge transfer u ~1% dosage in weight u Less than 2% of total cost Provide optimized conductivity (short‐and long‐range) Enable good lithium‐ion diffusion Specialty Carbons &Carbon Nanotubes (CNTs) From Legacy to Next Generation Technologies, EV Batteries Require Conductive Carbon Additives 64 Cabot Corporation | Investor Day 2021
Battery Materials We Have “Right to Win” in CCAs for Li‐ion Batteries LITX® ENERMAX™ Carbon Blacks CNTs Broadspectrum of CCA Global manufacturing StrongR&D commitment product portfolio footprint is a strong value in new material proposition development for next‐gen u Portfolio includesspecialty batteries carbons, CNTs and carbon u Customers more focused on nanostructures, including supply security u Low Cobalt Cathode blends that provide u U.S. and EU governments EV LIB Pack u Dry Process enhanced performance, and emphasizing local supply fumed alumina u Aqueous Process chains u Broad andcomprehensive u Silicone Carbon Anode u Strong customer engagement CNS SpectrAl® CCA portfolio u CCAs are critical in all the through local commercial Carbon Nanostructure Fumed Alumina above technologies and technical support CCA in Cathode & Anode, Alumina for Separator and Cathode 65 Cabot Corporation | Investor Day 2021
Battery Materials Expanding Our Global Footprint Billerica, MA, USA Botlek, Netherland Tianjin, China Shanghai, China Pampa, TX, USA Zhuhai, China Canal, LA, USA 5 ManufacturingSites 3 R&D/Technology Centers 6 Commercial & Technical Support Sites Strong Reputation with Global Network and Scale 66 Cabot Corporation | Investor Day 2021
Battery Materials Strategic Investments Have Enabled Strong Growth to Date and Expected in the Future Completed $100M CNT acquisition in April 2020 1 ◆ Purchased #2 CNT manufacturer in China with extensive experience in CNT dispersions ◆ Enhanced product offerings to battery customers ◆ Strengthened our position in formulating blends and making dispersions Plans for capacity expansions ◆ $105Mplanned for additional 30,000 MT capacity over the next three years 2 Announced acquisition in November 2021 of plant in Tianjin , China ◆ Plans to convert units for making battery materials ◆ Increases capacity to enable future growth Doubled Revenue Year over Year in Fiscal 2021 Source: 1. Cabot Internal Assessment, Cnano public company filings 67 Cabot Corporation | Investor Day 2021 2. Expected to close in the second quarter of fiscal 2022
Battery Materials Positioned to Win with 50%+ Forecasted EBIT CAGR Over Next 3 Years ~30% 10‐year Distinguished Global network to Performance anticipated market commercial position enable expansion track record demand CAGR Commercial sales to 6 of top 8 Manufacturing plants, R&D Delivered FY21 EBITDA in Strong demand for CCA battery makers with new facilities and commercial and $15‐$20M range as expected product programs progressing technical experts to support driven by lithium‐ion at all 8; broad product offerings customers batteries for EVs with specialty carbons, CNTs, CNS, fumed alumina Battery Materials Expected to be Significant Growth Driver for Cabot 68 Cabot Corporation | Investor Day 2021
FUMED METAL OXIDES Cabot Corporation | Investor Day 2021 | 69
FMO Fumed Metal Oxides at a Glance Overview Competitive Landscape Key Industries Industrial/Infrastructure u Global, GDP+ growth driven by w Bonding pastes building & construction, Cabot digitalization, and alternative w Adhesives & Composites Others energy w Elastomers 2021E u Scarcity of feedstock, expertise 1 Volume Automotive and scale create significant barriers to entry Comp Comp w Structural Adhesives A B u Customers demanding products w Silicone Elastomer from suppliers with sustainable w Sealant & Coatings supply chains Competitive Advantages: u Increasing industry utilizations Consumer u Leading global producer of fumed and growth in upstream w Silicone Elastomers silica industry yield favorable &DIY Sealants u #1 in China, the largest and fastest investment environment growing market for fumed silicaw Chemical mechanical planarization (CMP) u Strong fence‐line partnerships in silicone value chain, a GDP+ w Digital Printing industry and largest consumer of Advanced Product Functionality: fumed silica Rheology control, reinforcement, optical transparency, polishing, surface tension control, anti‐blocking, flow aid,catalystsupport, tribocharging control 1. Source: Cabot estimates; Competitors include: Evonik, Wacker 70 Cabot Corporation | Investor Day 2021
FMO Creating for Tomorrow by Addressing Key Macro Trends Macro trends position business for strong growth FMO Solution u Fumed silica and fumed alumina are enabling technologies in Changing certain battery applications Mobility Capacity Expansions u Leading products and investing in new capacity to supply Landscape additives into auto structural adhesives Position Us to Capture Future Growth u #1 supplier of fumed silica into wind blade bonding paste Increasing application +5,000‐8,000 metric tons Focus on u Fumed silica manufacturing sites are part of efficient and expansion Sustainability symbiotic integrated fence‐line partnerships China Anticipated online in fiscal 2024 u Fumed silica is a recognized standard in CMP slurries; state‐ Becoming a of‐the‐art process technology to produce unique particles More Connected u Fumed silicas and fumed silica dispersions are enabling digital printing, additive manufacturing, mass customization World 71 Cabot Corporation | Investor Day 2021
FMO Highly Profitable Business with Strong Forecasted Growth Macro trends support Attractive industry High‐margin and Leading position Sustainability‐focused GDP+ demand growth structure growing business in China products Direct linkage to silicone Few global players, high entry Clean power expected to Our deep application Silicone capacity increasing market, accelerating growth barriers with limited drive wind turbine growth; #1 knowledge and customer disproportionately, and we at ~1.5‐2x GDP feedstock, fence‐line supplier of fumed silica into partnerships drive demand are well positioned to capture partnerships and circularity in wind blade bonding paste durability with significant growth with planned operations growth opportunity expansions 72 Cabot Corporation | Investor Day 2021
SPECIALTY COMPOUNDS Aaron Johnson SVP and President, Formulated Solutions; President, Purification Solutions Cabot Corporation | Investor Day 2021 | 73
Performance Chemicals Portfolio of attractive specialty businesses Performance Additives FormulatedSolutions Fumed Metal Oxides Inkjet Specialty Carbons Specialty Compounds w Versatile performance additives w A leading global supplier of w Products deliver color, w Growing, high‐RONA used in range of applications water‐based dispersions to the conductivity and UV protection formulation business focused (e.g., adhesives, food, coatings inkjet market with ~30% share on black masterbatches and w Leading position in conductive and pharmaceuticals) conductive compounds carbon additives critical to w Developing a market leading lithium‐ion battery market w High‐margin business with position in the commercial & w Serves a wide range of industries attractive industry structure emerging packaging segments w Capacity additions enable including auto, agriculture, growth and regional infrastructure, and packaging w Scarcity of feedstock, expertise w Opportunity for 25%+ annual optimization towards meeting and scale create significant EBIT growth through 2024 w Unique backward integration customer demand barriers to entry and global footprint w Diverse set of GDP+ growth w Well‐positioned to deliver end markets sustainable innovations and capture macro‐driven growth 15% $232M 29% $352M $52M $796M EBITDA Revenue EBITDA EBITDA EBITDA Revenue Margin Margin Fiscal 2021 15% 24% 74 Cabot Corporation | Investor Day 2021
Specialty Compounds Plastics Industry Value Chain Ingredients Formulation Product ◆ Specialty carbons tailored for specific end‐◆ Close connectivity to OEM allows quick ◆ Finished products manufacturing applications response to changing needs ◆ Pulls next‐gen materials in response to ◆ Rapid new product development to drive market needs and trends growth and value capture Masterbatch/ Polymer/resin Conversion Compound concentrate OEM Specialty carbon Cabot Participation Cabot is Uniquely Positioned to Deliver Solutions to Serve Downstream Market Needs 75 Cabot Corporation | Investor Day 2021
Specialty Compounds Specialty Compounds at a Glance Overview Competitive Landscape Key Industries Agriculture Automotive w End‐users from diverse set of Cabot GDP+ markets Comp w Customer base consolidating and A looking for global partners Black Comp Others Masterbatch w Highly fragmented landscape B 1 Volume with consolidation opportunities w End‐user demand for Infrastructure Consumer / E&E sustainability is accelerating w Cabot has the scale and capability to differentiate Competitive Advantages: w Focused on black: largest global manufacturer of black masterbatch (MB) with low‐cost, high‐ throughput assets Packaging w Strong brand and customer loyalty built on black plastics expertise w Only backward‐integrated MB supplier capturing market asymmetries and integrated site economics 76 Cabot Corporation | Investor Day 2021 1. Source: AMI CY20; Competitors include: Ampacet, Avient, Hubron, MDI, RTP
Specialty Compounds 1 Winning by Combining High RONA with Growth 30%+ RONA driven by high asset turns RONAu An industry‐leading RONA driven by EBIT % Asset Turns X= (30%+) (low‐double‐digits) (low‐to‐mid 3s) high asset turns ꟷ Capital efficiency ꟷ Working capital management u Proven growth well in‐excess of GDP Variable margin growth well in‐excess of GDP ꟷ Strategic markets u Strategy: continue to balance strong Index RONA and growth to drive long‐term 2015=100 performance 2015 2016 2017 2018 2019 2020 2021 Cabot Variable Margin Global GDP *Source: CBT internal financial records and IMF WEO April 2021 77 Cabot Corporation | Investor Day 2021 1. Non‐GAAP measure –See Appendix
Specialty Compounds Creating for Tomorrow by Addressing Key Macro Trends Well‐positioned to benefit from macro trends Specialty Compounds Solution Formulations designed for engineering thermoplastics to enable Changing metal replacement in high‐performance vehicle applications to improve fuel efficiency and extend EV range Mobility Key Investments Position Landscape 1 ESD masterbatches and compounds for fuel systems and vehicle Us to Capture Significant components to deliver safety, design flexibility and reduce weight Growth Opportunity ◆ Formulations with recycled polymers, post‐industrial carbon black, and reclaimed carbon to promote circularity Increasing +~20,000 metric tons Focus on ◆ Custom masterbatches for drip irrigation, pressure pipe, Cilegon, Indonesia Sustainability agriculture film and geomembranes to enable improved water Anticipated online in fiscal 2023 conservation and support more sustainable farming Becoming a ◆ Carbon nanostructure masterbatches for EMI shielding to enable lighter and more flexible electronics and electrical components More Connected 1 ◆ ESD masterbatches and compounds for E&E components and World packaging to protect sensitive items and reduce customer costs 1 Note: Electro‐static‐dissipative 78 Cabot Corporation | Investor Day 2021
Specialty Compounds Partner of Choice for Customers Seeking to Innovate Successful engagement with a polymer producer paying off Customer Success Story Customer Background Large, global polymer producer looking to take engineering solutions for automotive applications to the next level Cabot Solution Powered by wide range of carbon particles and innovation capabilities –collaborated with customer teams in Europe and Asia to develop formulations in targeted applications while exploring next‐gen solutions for trends such as mobility and communication Customer Result ◆ Expanded geographically from two to four regions over 4 years –doubling product offering and diversifying portfolio ◆ Increased revenues from $1.0M to $5.8M in same time period Validation Supplier Innovation Award in 2021 out of ~350 strategic suppliers 79 Cabot Corporation | Investor Day 2021
Specialty Compounds Robust Business Potential with 10%+ Annual EBIT Growth Expected Over Next 3 Years Continue strong Leverage recent Increase sustainability Expand Explore further organic demand bolt‐on in new product capacity bolt‐on growth acquisitions development acquisitions Operational improvements Focused on growth in target To expand participation in To meet needs of an evolving To extend capabilities and fuel plus investment in Indonesia markets including auto, Americas and Southeast Asia sustainability‐focused future growth (expected completion in infrastructure, and consumer customer base 2023) to meet growing demand Delivering Strong Growth and RONA 80 Cabot Corporation | Investor Day 2021
INKJET Cabot Corporation | Investor Day 2021 | 81
Inkjet Inkjet Production Printing Industry Value Chain Dispersion is a critical control point in formulation design Ingredients Formulation Product ◆ Leverage expertise and intellectual ◆ Multiple dispersion platforms facilitates ◆ Pulls next‐gen products in line with property in carbon black and particle accelerated product development system and market requirements treatment ◆ Close partnership with OEM ink teams delivers business longevity and performance improvements Formulation Control Points Black and Color Pigment OEM Inkjet Colored Pigment Dispersions Printer Specialty Carbon OEM Ink Formulation Printer / Converter Cabot Participation Uniquely Positioned in Inkjet Industry Value Chain 82 Cabot Corporation | Investor Day 2021
Inkjet Inkjet at a Glance Overview Competitive Landscape Key Segments Packaging Commercial u Major trend away from analog to digital printing supports Other Cabot shorter runs allowing more Comp customization and less waste D 2021 u Commercial printing is now Comp 1 Revenue ~20% digital due to smaller run C printing for books and customization of other print Comp Comp Office Work‐from‐home A B u Packaging in early stages of shift to digital and represents significant growth opportunity; Corrugated packaging expected Competitive Advantages: to be first market to shift u Only player in proprietary “small molecule” technology u Inkjet has larger share (at expense of laser) in u Broadest technology platform office/consumer due to work‐ u Incumbency at leading OEMs in from‐home trend Corrugated Packaging 1. Source: Cabot estimates; Competitors include DIC, FFIC, Kao, Orient 83 Cabot Corporation | Investor Day 2021
Inkjet Shift from Analog to Digital Creates Significant Opportunity for Inkjet Technology Shift from analog to digital Case Study: Commercial Printing u Facilitates shorter print run lengths u Technology has reached an inflection point and is poised to grow aggressively with less waste over next 5 years as digital printing takes hold in segments like book printing, direct mail and brochures u Meets increased demand for customization u Inkjet volumes in commercial printing have more than doubled since 2017 and are expected to more than double again by 2025 u Enables more efficient supply chains with print‐on‐demand and lower Commercial print volumes with inkjet technology 1600 working capital 1400 Inkjet technology enables shift 1200 1000 u Quality, productivity and cost 800 600 u Compelling sustainability benefits due 400 to inherently less waste and reduced 200 use of organic inks 0 2017 2019 2021 2023 2025 Dispersion Performance Has Been a Key Enabler to Drive Digitization 84 Cabot Corporation | Investor Day 2021 Impressions (bn A4)
Inkjet In a Leading Position as Corrugated Packaging Starts Digital Adoption u Packaging market is >5x size of commercial, office, and work‐from‐home combined u Digitization journey for packaging has begun and corrugated sub segment is expected to be first to convert u Pigment dispersion: strong cost & performance Cabot view of OEM share in 2027 control point for post‐print corrugated u Five OEMs have launched or announced presses where Cabot is specified for ink ‐Cabot is tracking ~50% market share and in a position to maintain that level going forward Cabot u Expect digital penetration in corrugated to hit launched/specified ~10% in 2027 from ~1% today resulting in ~50% Cabot lead growth through 2027 (CAGR) candidate OEMs include: Bobst, Canon, EFI, Hanway, HP, Koenig & Bauer, Wonder, Xeikon *Images provided by Koenig & Bauer / Koenig & Bauer | Durst 85 Cabot Corporation | Investor Day 2021
Inkjet Winning in Packaging: Leveraging Capabilities and Breadth of Technology Solution Early Engagement Competitive Advantage IP‐protected surface Enabled advantaged Winning through strong Majorestablished modified technology position to get specified technical competitive analog OEM adopted due to unique into formulations advantage combined with launching water‐ interaction between customer engagement based inkjet presses dispersion chemistry and pre‐coat technology 1 IP‐protected “EPD” Critical in establishing Cabot Connecting ink formulation Established digital technology adopted due to as go‐to development with dispersion design OEM launching designed interaction with partner water‐based formulation and alignment packaging presses around pricing roadmaps Early incumbency at OEMscreates durable competitive advantage as systems are designed around dispersion choice 1. Encapsulated Polymer Dispersion 86 Cabot Corporation | Investor Day 2021
Inkjet Digitization in Commercial and Packaging Driving Potential for Transformative Growth Digitization drives Commercial and Investments for increased High‐growth, significant inkjet packaging segments capacity aligned with high‐RONA demand driving growth demand growth business Revenue expected to grow Leading position due to technical Expect to spend $55M in capex Anticipate 25%+ EBIT 20%+ CAGR from FY21‐FY24 capabilities and breadth; tracking over next 3 years to increase scale growth (CAGR) from 50%+ share in corrugated of existing U.S. facility and begin FY21‐FY24 with 30%+ RONA packaging work on next manufacturing location Inkjet Expected to Deliver Strong Growth and RONA 87 Cabot Corporation | Investor Day 2021
Performance Chemicals –Looking Ahead Differentiated opportunities enable 9‐11% expected volume CAGR Fumed Specialty Battery Specialty Metal Inkjet Carbons Materials Compounds Oxides u Xuzhou capacity u Rapid growth of EVsu GDP+ end market u Unique downstream u Capacity additions addition growth position to meet rapid u Complete CCA growth in u Broad conductive portfoliou Attractive industry u Capacity addition in commercial and carbon portfolio structure Asia packaging segments u Global footprint benefitting from u Strategic plant u An industry‐leading macro trendsu 25%+ expected EBIT u Capacity additions locations and RONA CAGR capacity additions u 50%+ expected EBIT u 10%+ expected EBIT CAGR CAGR Well‐Positioned to Deliver 12‐15% EBIT CAGR from 2021‐2024 88 Cabot Corporation | Investor Day 2021
Financial Framework Erica McLaughlin SVP & CFO Cabot Corporation | Investor Day 2021 | 89
Financial Update | Key Messages 1 2 3 4 1 Capital Allocation Strong Execution Disciplined Step up in DFCF is Priorities Focused Resulted in Robust Balance Sheet Expected toFund on Accelerating Financial Results Management Strategic Bolt‐on Growth and through Fiscal 2021 Enables Growth Acquisitions and Creating Strategy Shareholder Shareholder Value Returns 1. Discretionary Free Cash Flow 90 Cabot Corporation | Investor Day 2021
Robust Financial Performance 1 1 1 1 Adjusted EPS Adjusted EBIT Adjusted EBITDA Adjusted ROIC +12% +10% +6% ($) ($M) ($M) ($M) CAGR CAGR CAGR $652 18% $5.02 $492 $470 $2.49 $286 8% FY2015 FY2021 FY2015 FY2021 FY2015 FY2021 FY2015 FY2021 Driven by Successful Execution of Strategy 1.Non‐GAAP measure –See Appendix 91 Cabot Corporation | Investor Day 2021
Significant Improvement in Net Working Capital Net Working Capital Days Net Working Capital ($M) 600 120 $535 $501 $485 77 $466 $459 500 100 $434 66 64 63 61 400 80 52 $289 46 300 60 $72 $70 $57 200 40 $50 $45 $45 $40 100 20 0 0 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 : September 30th A/R + Inventory –AP/Accruals Defined as: 5Q Average NWC (A/R + Inventory –AP/Accruals) / Sales x 365 days : WTI $ per barrel as of September 30th u Significant reduction in inventory levels u Working Capital Rule of Thumb u Past Dues reduced from 6% to 2% ꟷ $1 change in oil prices = ~$5M of working capital u Successfully improved supplier payment terms Lower Days Largely OffsetHigher Oil Prices and Growth in the Business 92 Cabot Corporation | Investor Day 2021
Uninterrupted Dividend Payment Dividends Per Share $1.60 $1.40 Dividend Dividend Yield Payout Ratio $1.20 Cabot 2.8% 28% $1.00 Peers 1.3% 19% $0.80 $0.60 $0.40 $0.20 $0.00 Consistent Dividend Payment for Over 50 Years with Regular Increases for an Industry‐Leading Dividend Yield 93 Cabot Corporation | Investor Day 2021 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Returned over $1B to our Shareholders 2015‐2021 Cumulative Dividends and Share Repurchases Diluted Shares Outstanding ($M) $1,200 64.0 $1,000 62.0 $800 60.0 $600 58.0 $400 56.0 $200 $0 54.0 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 1 u Dividends and repurchases totaled 64% of DFCF from FY’15‐21 u Reduced share count by 10% since 2015 Dividends and Repurchases Remain a Core Part of Our Capital Allocation Framework 1. Non‐GAAP measure –See Appendix 94 Cabot Corporation | Investor Day 2021 Diluted Shares Outstanding (M)
Disciplined Balance Sheet Management 1 2 Net Debt/Adjusted EBITDA Key Financial Metrics 2.4x 1 Adjusted EBITDA $652M 1.9x 1.7x 1.5x 1.5x 1.3x 1.5x Cash Balance $168M Gross Debt $1,162M 1 DFCF $353M 2015 2016 2017 2018 2019 2020 2021 Liquidity/Credit Ratings Maturity Profile ($M) u Significant liquidity ($1.3B); $1B untapped credit revolver $400 $300 u 2022 bonds expected to be refinanced in fiscal Q3 FY22 $200 u Committed to maintaining Investment Grade credit rating (S&P: BBB Stable; Moody’s: Baa2 Stable) $100 $0 2021 2022 2023 2024 2025 2026 2027 2028 2029 1.Non‐GAAP measure –See Appendix 2. As of 9/30/2021 95 Cabot Corporation | Investor Day 2021
Capital Allocation Framework Supports Creating for Tomorrow Growth Strategy High Confidence, Bolt‐on M&A Grow Dividend Share Repurchases Maintain Financial High Return Flexibility u Disciplined approach u Continued support of u Access market Investments to M&A opportunities a growing dividend opportunistically u Committed to u Prioritize with incremental Investment Grade u Focused on bolt‐ons u Maintain an investments in high‐ purchases credit rating that enhance industry‐leading growth businesses, performance of dividend yieldu 5 million shares u Long‐term Net Debt Battery Materials, 1 existing businesses authorized to Adj. EBITDA Inkjet Packaging target of 2.0x ‐2.5x Disciplined Execution with a Flexible Balance Sheet 1. Non‐GAAP measure –See Appendix 96 Cabot Corporation | Investor Day 2021
3‐Year Outlook for Business Segments Reinforcement Materials Performance Chemicals Volume CAGR 2‐3% 9‐11% EBIT CAGR 5‐9% 12‐15% Average CapEx Per Year ~$130M ~$140M Focused on maintenance and Focused on growth capital in compliance capital and added differentiated spaces, such as capacity in Indonesia batteries and inkjet packaging Positioned to Grow at or above Market 97 Cabot Corporation | Investor Day 2021 1.Non‐GAAP measure –See Appendix
Driving Growth across the Portfolio 1 Total Segment EBIT ($M) $85 –$105 $685‐$755 Building on Record Results $50 –$100 $550 u Leveraging our advantaged positions across our businesses u Delivering growth in differentiated end markets, such as batteries and inkjet packaging u Driving sustainability across everything we do Well‐Positioned to Drive EBIT Growth across Our Businesses 1. Non‐GAAP measure –See Appendix 98 Cabot Corporation | Investor Day 2021
Capital Expenditures Investing in our high growth businesses, Creating for Tomorrow Key Growth Projects 2022‐2024 Capex Capex Targets and Focus Areas Performance Chemicals | Performance Additives Specialty Carbons & Battery Materials Growth ‐ ~$27M ($30M spent to date) Xuzhou acquisition u Anticipate ~$125M per year of 50,000 metric tons of additional capacity maintenance and compliance capital spending Expansion of Battery Capacity (CNTs and CB) ~$105M 30,000 metric tons of additional capacity u Ensure we maintain our world‐class assets for reliable supply to customers FMO Capacity Expansions in China ~$30M 5,000 to 8,000 metric tons of capacity u Focused on high‐return projects where we have an advantaged position Performance Chemicals | Formulated Solutions ~$55M Inkjet Capacity Expansion u Total capex spend expected to be $200M More than double capacity ‐$300M per year for the next 3years Reinforcement Materials ~$60M Carbon Black Capacity Expansion in Cilegon, Indonesia ~80,000 metric tons of capacity Investments to Support Growth Funded from Operating Cash Flow 99 Cabot Corporation | Investor Day 2021
3‐Year Consolidated Financial Targets Reflect new level of Earnings and Cash Flow KEY MACRO DRIVERS & CAGR ASSUMPTIONS 1 Global GDP 3‐4% 6 Adjusted EPS CAGR 8‐12% 2 Tire Production 3% 3 Auto Builds 8% Discretionary Free Cash Flow $1B+ over 3 years 6 4 (DFCF) Polymer Demand (Plastics) 5‐6% 5 Lithium‐ion Battery Demand 30%+ Average Capex Per Year $200M‐300M Inkjet Packaging 50%+ Oil Prices Forward curve Foreign Currency Exchange Rates Current rates 6 Operating Tax Rate 26‐29% Driven by Strong Base Businesses and High Margin Growth Opportunities 1. Source: IMF; 2.Source: LMC; 3. Source: IHS; 4. Source: AMI; 5. Source: Bloomberg; 6. Non‐GAAP measure –See Appendix 100 Cabot Corporation | Investor Day 2021
1 Discretionary Free Cash Flow (DFCF) Robust and Growing DFCF generation Annual DFCF ($M) $450M u Generated $223M of DFCF on average per year from $353 2015‐2020 1 $223 u Strong underlying Adj. EBITDA drove step‐up in DFCF starting in 2021 u Expect DFCF to grow to $450M in FY’24 as we execute our Creating for Tomorrowstrategy FY'15‐FY'20 2021 2022 2023 2024 – Growing operating cash flow from higher EBITDA – Moderating changes in net working capital as compared to 2021 as oil prices level out ($M) 2015‐2020 2021 Cash Flow from Operating Activities $380 $257 – Similar levels of maintenance and compliance capital expected Less: Changes in Net Working Capital $43 ($222) Less: Sustaining & Compliance Capital Expenditures $114 $126 Discretionary Free Cash Flow (DFCF) $223 $353 $1B+ of DFCF Expected to be Generated over Next Three Years 101 Cabot Corporation | Investor Day 2021 1.Non‐GAAP measure –See Appendix
Compensation Programs Aligned with Targets Short‐term Incentive Program Adjusted EBIT, Net Working Capital Days, Discretionary Free Cash Flow Long‐term Incentive Program Adjusted EPS, Adjusted RONA Continuous improvement expected in ESG performance aligned with our 2025 goals Align Compensation with Execution of Business Strategy and Reward Measurable Results 102 Cabot Corporation | Investor Day 2021
M&A Opportunities STRATEGIC FOCUS AREAS INVESTMENTCRITERIA Accretive bolt‐on acquisitions to support strategy could drive incremental growth above targets Growth and/or u Capability and capacity acquisitions in Accretive to Earnings Margin Enhancing high growth segments – Batteries – Inkjet Packaging – Conductive Carbons 1 ROIC > Cost of – Black Masterbatch Strengthens Business Capital within 3‐5 Competitive Position u Increase scale in attractive carbon black segments years and geographies u Access to technologies related to Sustainable Materials, Batteries, ConductiveMaterials 103 Cabot Corporation | Investor Day 2021 1.Non‐GAAP measure –See Appendix
Financial Framework | Key Takeaways Strong Execution Resulted in Robust Financial 1 Results through 2021 Disciplined Balance Sheet Management Enables 2 Growth Strategy Capital Allocation Priorities Focused on Accelerating 3 Growth and Creating Stakeholder Value 1 Step up in DFCF Expected to Fund Strategic 4 Acquisitions and Shareholder Returns 1.Non‐GAAP measure –See Appendix 104 Cabot Corporation | Investor Day 2021
CLOSING REMARKS Sean Keohane President & CEO Cabot Corporation | Investor Day 2021 | 105
Looking Ahead Core businesses Elevated growth Advantaged Creating for remain well levels driven by growth Tomorrow positioned for high potential investments strategy calls for growth product lines funded by strong further integrating cash flow and sustainability in balance sheet everything we do 106 Cabot Corporation | Investor Day 2021
Q&A 107 Cabot Corporation | Investor Day 2021
Appendix 108 Cabot Corporation | Investor Day 2021
Use of Non‐GAAP Financial Measures This presentation includes references to adjusted earnings per share (EPS), total segment EBIT, segment EBITDA, adjusted EBITDA,adjusted return on invested capital (ROIC), discretionary free cash flow (DFCF) and operating tax rate, which are non‐GAAP measures. Reconciliations of Adjusted EPS to net income (loss) per share attributable to Cabot Corporation, the most directly comparable GAAP financial measure, Total Segment EBIT, Total Segment EBITDA, and Adjusted EBITDA to income (loss) from continuing operations before income taxes and equity in earnings of affiliated companies, the most directly comparable GAAP financial measure of each such non‐GAAP measure, operating tax rate to effective tax rate, the most directly comparable GAAP financial measure and Free Cash Flow and Discretionary Free Cash Flow to Cash flow from operating activities, the most directly comparable GAAP financial measure, are included in the following slides. Cabot does not provide an expected GAAP EPS range or reconciliation of the Adjusted EPS range with an expected GAAP EPS rangebecause, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains andlosses, costs associated with future restructurings, acquisition‐related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on GAAP EPS in future periods. This presentation includes forecasted “total segment EBIT” but does not include a reconciliation to the most directly comparableGAAP financial measure income (loss) from continuing operations before income taxes and equity in earnings of affiliated companies because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costs associated with future restructurings, acquisition‐related expenses and litigation outcomes. This presentation also includes our forecast of the range of our “operating tax rate” which represents the tax rate on our recurring operating results. This rate excludes discrete tax items, which are included in the effective tax rate. Discrete tax items are comprised of (i) unusual or infrequent items, (ii) items related to uncertain tax positions, and (iii) other tax items, such as the impact from the timing of losses in certain jurisdictions and cumulative tax rate adjustments. The operating tax rate also excludes the impact of the items of expense and income we identify as certain items on both our operating income and the tax provision. Management believes that the operating tax rate is useful supplemental information because it helps our investors compare our tax rate year to year on a consistent basis andtounderstand what our tax rate on current operations would be without the impact of these items. Cabot does not provide a forward‐looking reconciliation of the operating tax rate range with an effective tax rate range because, without unreasonable effort, we are unable to predict with reasonable certainty the matters we would allocate to “certain items,” including unusual gains and losses, costsassociated with future restructurings, acquisition‐related expenses and litigation outcomes. These items are uncertain, depend on various factors, and could have a material impact on the effective tax rate in future periods. To calculate “Discretionary Free Cash Flow” we deduct sustaining and compliance capital expenditures and changes in Net Working Capital from cash flow from operating activities. To calculate “Free Cash Flow” we deduct capital expenditures as disclosed in the consolidated statement of cash flows (as Additions to property, plant and equipment) from cash flow from operating activities. 109 Cabot Corporation | Investor Day 2021
Use of Non‐GAAP Financial Measures Explanation of Terms Used EBITDA Margin by product line is calculated by dividing estimated net income (loss), including depreciation and amortization, by estimated revenues Adjusted return on net assets (“adjusted RONA”) by product line presented for the Performance Chemicals segment is calculated by dividing the twelve months’ estimated adjusted net income (loss) (a non‐GAAP numerator) by adjusted net assets (a non‐GAAP denominator). In the numerator, we estimate the product line’s portion of Segment EBIT, a GAAP measure, and reduce that by estimated allocations of interest income and expense, unallocated corporate costs and general unallocated income and expense. The denominator consists of estimates of our year‐end operating assets for the product line, which are: net property, plant and equipment; adjusted net working capital; and investments in equity affiliates. Net Working Capital ‐The term “net working capital” includes accounts receivable, inventory and accounts payable and accrued expenses. 110 Cabot Corporation | Investor Day 2021
Non‐GAAP Reconciliations Adjusted EPS 1 Per Share/Fiscal Year FY2021 FY 2015 Net income (loss) per share attributable to Cabot Corporation $ (5.49) $ 4.34 Less: Net income (loss) per share from discontinued operations 0.02 ‐ Net income (loss) per share from continuing operations (5.51) 4.34 Less: Certain items per share and dilutive impact of shares (8.00) (0.68) Adjusted earnings per share $ 2.49 $ 5.02 1. Amounts have been recast to reflect the retrospective application of the Company’s election to change its inventory valuation method of accounting for its U.S. carbon black inventories from the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) method. 111 Cabot Corporation | Investor Day 2021
Non‐GAAP Reconciliations Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin 1 Dollars in Millions/Fiscal Year FY 2021 FY 2015 $ (399) $ 406 Income (loss) from continuing operations before income taxes and equity in earnings of affiliated companies Interest expense 53 49 Certain items 617 34 General unallocated income (expense) 11 ‐ Equity in earnings of affiliated companies 4 3 Adjusted EBIT 286 492 Total Depreciation & Amortization 183 160 (2) 1 ‐ Adjustments to Depreciation Adjusted EBITDA $ 470 $ 652 Net sales and other operating revenues 2,871 3,409 Adjusted EBITDA Margin 16% 19% 1. Amounts have been recast to reflect the retrospective application of the Company’s election to change its inventory valuation method of accounting for its U.S. carbon black inventories from the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) method. 2. (Adjustments to depreciation includes the addition of the depreciation expense of a contractual joint venture in Purification Solutions and Corporate depreciation less accelerated depreciation expense not allocated to a business. 112 Cabot Corporation | Investor Day 2021
Non‐GAAP Reconciliations Segment EBITDA and Segment EBITDA Margin ($M)/Fiscal Year FY 2015 FY 2021 Reinforcement Materials EBIT $ 143 $ 329 Plus: Depreciation & Amortization 83 70 Reinforcement Materials EBITDA $ 226 $ 399 Reinforcement Materials Sales 1,507 1,781 Reinforcement Materials EBITDA Margin 15% 22% $ 178 $ 211 Performance Chemicals EBIT Plus: Depreciation & Amortization 54 73 Performance Chemicals EBITDA $ 232 $ 284 Performance Chemicals Sales 927 1,148 Performance Chemicals EBITDA Margin 25% 25% 113 Cabot Corporation | Investor Day 2021
Non‐GAAP Reconciliations Total Segment EBIT ($M)/Fiscal Year FY2021 Income (loss) before income taxes and equity in earnings of affiliated companies $ 406 Less: Certain items (34) Less: Other Unallocated items (110) Total Segment EBIT $ 550 114 Cabot Corporation | Investor Day 2021
Non‐GAAP Reconciliations Adjusted Return on Invested Capital (ROIC) 1 ($M)/Fiscal Year FY 2021 FY 2015 Numerator ‐ Adjusted net income (loss): Net income (loss) attributable to Cabot Corporation $ (334) $ 250 Less: Certain items, net of tax benefit (provision) (510) (38) Less: Net income attributable to noncontrolling interests (8) (36) (2) (36) (30) Less: Net Interest income and expense, net of tax Adjusted net income (loss) $ 220 $ 354 (3) Denominator ‐ Adjusted invested capital : Total Cabot Corporation stockholders' equity $ 1,604 $ 845 Plus: Noncontrolling interests 113 136 Plus: Total Debt 1,095 1,136 Plus: Purification Solutions impairment charges, net of tax (193) ‐ Less: Cash and cash equivalents 82 157 (4) (212) (13) Less: Certain items, net of tax Adjusted invested capital $ 2,749 $ 1,973 Adjusted return on invested capital 8% 18% 1. Amounts have not been recast to reflect the retrospective application of the Company’s election to change its inventory valuation method of accounting for its U.S. carbon black inventories from the last-in, first-out (“LIFO”) method to the first-in, first-out (“FIFO”) method. 2. Tax on interest expense and interest income is calculated using the Company's fiscal 2015 and 2021 actual operating tax rates of 26% and 27% respectively. 3. Each component of adjusted invested capital is calculated by averaging the previous five quarter ending balances. 4. Four quarter certain items rolling average 115 Cabot Corporation | Investor Day 2021
Non‐GAAP Reconciliations Operating Tax Rate & Net Debt to Adjusted EBITDA ($M)/Fiscal Year FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Current portion of long‐term debt & Short‐term borrowings $ 23 $ 8 $ 263 $ 284 $ 40 $ 21 $ 445 Long‐term debt 970 918 661 719 1,024 1,094 717 Total Debt 993 926 924 1,003 1,064 1,115 1,162 Less: Cash 77 200 280 175 169 151 168 Net Debt 916 726 644 828 895 964 994 Adjusted EBITDA 470 489 514 571 541 399 652 Net Debt to Adjusted EBITDA 1.9 1.5 1.3 1.5 1.7 2.4 1.5 FY 2021 (Provision) / Benefit for ($M)/Fiscal Year Income Taxes Rate Effective Tax Rate $ (123) 30% (1) Less: Non-GAAP tax adjustments (4) Operating tax rate $ (119) 27% 1. Non-GAAP tax adjustments are made to arrive at the operating tax provision. It includes the income tax (expense) benefit on certain items, discrete tax items, and, on a quarterly basis the timing of losses in certain jurisdictions. The income tax (expense) benefit on certain items is determined using the applicable rates in the taxing jurisdictions in which the certain items occurred and includes both current and deferred income tax (expense) benefit based on the nature of the certain items. Discrete tax items include, but are not limited to, changes in valuation allowance, uncertain tax positions, and other tax items, such as the tax impact of legislative changes. 116 Cabot Corporation | Investor Day 2021
Non‐GAAP Reconciliations Discretionary Free Cash Flow (DFCF) ($M)/Fiscal Year FY 2021 $ 257 Cash flow from operating activities (222) Less: Changes in net working capital Less: Sustaining and compliance capital expenditures 126 Discretionary Free Cash Flow $ 353 117 Cabot Corporation | Investor Day 2021
Leadership Bios 118 Cabot Corporation | Investor Day 2021
Leadership Bios Sean Keohane President and Chief Executive Officer Sean Keohane is president and chief executive officer of Cabot Corporation and a member of the Board of Directors. Since joining Cabot in 2002. Sean has held numerous key management positions including president of the Reinforcement Materials segment, president of the Performance Chemicals segment and president of the Asia Pacific region. Prior to joining Cabot, Sean worked for Pratt & Whitney, a division of United Technologies, in a variety of general management positions. Sean earned his MBA from Harvard University and a BS in Finance from Providence College. Sean also serves on the Board of Directors of The Chemours Company (NYSE: CC) the American Chemistry Council and is a Trustee of Dexter Southfield School and the Boston Latin School Association. Erica McLaughlin SVP and Chief Financial Officer Erica McLaughlin joined Cabot in 2002 and has held a variety of roles within the finance organization and Cabot’s global businesses, most recently as vice president of business operations for the Reinforcement Materials segment and general manager of the tire business. Since joining the company, she has held a number of senior leadership positions including vice president of investor relations and corporate communications, as well as global director of strategy, planning and finance for Cabot’s core segment. Prior to joining Cabot, Erica worked for KPMG, LLP in their audit services division. She is a Certified Public Accountant and earned an MBA and a BS in accounting from Boston College. Erica also serves on the Board of Directors for Brooks Automation, Inc. and the New York Advisory Board for FM Global. 119 Cabot Corporation | Investor Day 2021
Leadership Bios Martin O’Neill SVP, Safety, Health & Environment and Government Affairs Martin O'Neill joined Cabot in 2000. Since joining Cabot, Martin has held several key positions including director of SH&E for the former Cabot supermetals business, plant general manager for the company's tantalum manufacturing operations in Boyertown, Pennsylvania, USA and general manager of the TANCO mining operation in Manitoba, Canada. Prior to joining Cabot, Martin was director of SH&E for North and South America with AMP Incorporated/Tyco Electronics and worked in consulting for 15 years. Martin earned his MS in Environmental Science from Drexel University and a BA in Ecology from Rutgers College. He is a member of the American Industrial Hygiene Association and serves on the Board of Trustees for Boston Harbor Now. In addition, he is a member of the Advisory Board for HomeStart, Inc. and the Norwell Visiting Nurses Association (NVNA). Bart Kalkstein SVP & President, Reinforcement Materials & Americas Region Bart Kalkstein joined Cabot in 2005. Since joining the company, Bart has held several key management positions within the company, most recently as vice president of corporate strategy and development. He was also vice president of global business operations and general manager of global emission control solutions for the Purification Solutions segment, vice president of business operations and executive director of marketing and business strategy for the Performance Chemicals segment, and general manager of the aerogel business. Prior to joining Cabot, Bart worked for Boston Consulting Group. Bart earned his MBA from Harvard University and a BSE in Civil Engineering and Operations Research at Princeton University. 120 Cabot Corporation | Investor Day 2021
Leadership Bios Jeff Zhu SVP& President, Performance Additives & Asia Pacific Region Jeff Zhu joined Cabot in 2012. Prior to joining the company, he spent 18 years with Rhodia (and its predecessor Rhone‐ Poulenc) where he served in a variety of regional and global business leadership roles, including Asia Pacific regional commercial director, regional vice president and general manager of Novecare, and vice president and global director of electronics and catalysis. He serves as the chairman of the board of the Association of International Chemical Manufacturers (AICM) and he also serves on the Senior International Advisory Board to ShaanXi Province.Jeff's most recent experience before joining Cabot was with Asia Pacific Resources International Holding Limited (APRIL), a multi‐ billion USD privately owned global paper and pulp company, where he served as head of global sales. Jeff earned his M.Sc in Chemistry from National University of Singapore and a distinction MBA from the University of Hull, UK. Aaron Johnson SVP & President, Purification Solutions; President, Formulated Solutions Aaron Johnson joined Cabot in 2005 and has held a variety of leadership positions, most recently as vice president and general manager of Cabot’s specialty carbons business within the Performance Additives segment. He was also vice president and general manager for the EMEA specialty compounds business, vice president for business development in the Asia Pacific (AP) region, and vice president for the AP region for the Purification Solutions segment. Before joining Cabot, Aaron worked for The Boston Consulting Group. He earned his MBA from the Massachusetts Institute of Technology’s Sloan School of Management and a BS in Geology from Bates College. 121 Cabot Corporation | Investor Day 2021