Use of Non-GAAP Financial Measures This presentation includes certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (GAAP). These non-GAAP…
OVERVIEW OF A. SCHULMAN 4
A. Schulman Overview 1928 2.9 Founded by Public company Billion Alex Schulman Global in revenue in Akron, Presence 1972 (pro forma) Ohio, US since (Symbol: SHLM) 1950s 11 Acquisitions since 2010 1,000,000 189 5,000 Tons current…
A. Schulman Business Overview Business Description A. Schulman, Inc. (SHLM, A. Schulman or the Company) is an international supplier of high-performance and engineered plastic compounds, color concentrates and size reduction…
A. Schulmans Six Product Families Citadels Engineered Plastics was integrated into A. Schulmans Engineered Plastics Product Family Custom Performance Engineered Masterbatch Engineered Plastics Specialty Powders Distribution Services…
Diverse End Markets & Applications Key End Markets End Market % of Revenue Key Products Key Applications Key Attributes % of Revenue 36% Masterbatches Food packaging Color matching and color trending services Custom Performance…
A. Schulmans Expanded Vision VALUE CHAIN POSITIONI NG Raw material Mixing / Formulation Parts Distribution aggregation End market manufacturing manufacturing /grinding SHLM Value-chain extension by TODAY Polymer value chain…
Established Track Record of Executing Acquisition Strategy Recent Acquisitions Strategic Rationale & Rev. Strategic Rationale & Rev. Acquirer Target Year Acquirer Target Year Focus (mm)1 Focus (mm)1 Color MBS / U.S. Engineered A…
CITADEL TRANSACTION OVERVIEW 11
Citadel Transaction On March 15, 2015, A. Schulman entered into an agreement to acquire 100% of the outstanding shares of HGGCs Citadel Plastics for 800 million The total transaction values Citadel at 10.6x FYE 2014 Adjusted EBITDA…
Strategic Rationale For Acquiring Citadel Significant Boost To Expands scale and global leadership in A. Schulman's core business of Engineered Plastics A. Schulman's Scale Adds scope with a new market leading growth platform in…
How Customers Will Benefit This merger provides customers from both companies access to: Enhanced and broader, deeper and higher value-added product offerings Balanced global platform, with state-of-the-art production facilities in…
Snapshot of A. Schulman and Citadel + = Pro Forma Leading international supplier of high- Leading material science expert, providing Leading supplier of high performance performance plastic compounds and resins custom engineered…
Financing Overview* Debt Tranches Pricing Debt as of 6/1/15 Debt as of 8/31/15 (preliminary) Revolver - 300 L+225 bps 38 -- 35 bps undrawn Term Loan A L+225 bps 200 198 USD Term Loan B L+325** 350 349 EUR Term Loan B L+325**…
Focus on Integration Priorities & Process ALL integration activities center on three key priorities: 1. Continuity of operations 2. Integration of financial reporting and controls 3. Intensive focus on synergy realization Citadel…
Overview of Expected Synergies Business Area Savings Description Volume consolidation Procurement 11M Pricing differentials Global aggregation Manufacturing Efficiencies 9M Consolidation of manufacturing activities Aggregated…
Use of Cash Reinvest in the business New operations in Turkey & China Capacity expansions in APAC and LATAM Restructuring to support specialty demand Dividend payments Support common dividend with current yield of 2.5% Debt…
APPENDIX 23
Citadel Business Overview Business Description Historical Revenue1 Citadel is a provider of custom material solutions, with material 429 science expertise in providing specialized applications Material agnostic solution provider,…
Citadels Business Segments Engineered Plastics Engineered Composites 2014 Revenue (mm)1 288 235 Used in compression and injection molding Polyolefins, engineered TPs Highly filled compound, using short glass or carbon fibers…
Unparalleled Ability To Match Customer Needs With Material Solutions Select Key End Markets End Market % of Revenue1 Products Key Applications Representative Customers % of Revenue 26% BMC Nylon Forward lighting systems SMC Alloys…
Leading Positions with Highly Defensible Businesses LTM (02/28/15) PF Net Sales Breakdown by End-Market 1 Drivers External Attractive growth rates for plastics Sports, Leisure High growth end markets including agriculture, Other…
Acquisition Boosts Critical Mass, Geographic Balance and Improves Economies of Scale EMEA Production U.S. and Canada Facilities Production Facilities A. Schulman: 17 A. Schulman: 16 Citadel: 1 Citadel: 15 Asia Pacific…
Strong Diversified End Markets Other 8% Sports, Leisure & Home 5% Other Transportation 17% Packaging 26% Personal Care & 36% Hygiene 4% Custom Electrical Services 7% 18% Agriculture 5% Electronics & Industrial &…
Global locations U.S./Canada Latin America EMEA APAC Canada Ohio Argentina Austria Italy Sweden Australia Guelph, Ontario Fairlawn (Headquarters) Buenos Aires Vienna Gorla Maggiore storp Braeside Akron (2x) United States Geneva…
Adj. EBITDA Reconciliation A. Schulman Fiscal Year Ended Six Months Ended Twelve Months Ended ( in millions) 31-Aug-12 31-Aug-13 31-Aug-14 28-Feb-14 28-Feb-15 28-Feb-15 28-Feb-15 (Pro Forma) EBITDA Reconciliation: Income from continuing…
Adj. EBITDA Reconciliation Citadel Plastics Fiscal Year Ended December 31, ( in millions) 2012 20135 2014 EBITDA Reconciliation: Net loss (22.6) (28.9) (4.8) Income tax expense (benefit) (2.8) (4.7) 5.2 Intertest income (expense),…
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