Investor Presentation KeyBanc Basic Materials and Packaging Conference September 3, 2015 Core Components of Stepans Strategy Leverage Technical and Market Leadership Improve Mix Geographic expansion Operational excellence…
Stepan Company Profile 2014 Sales 1.9B in Sales 4% 3 Reportable Segments 17 manufacturing sites with 29% operations in 12 countries Surfactants Polymers 2000 employees Specialty 67% Traded on NYSE as SCL 2
Stepan Company Profile MM USD Net Income * Segment Operating 100 Income 2014 = 132MM 80 8% 60 Surfactants 47% Polymers Specialty 40 45% 20 Operating Income 2014 YTD June % of Sales 2015 - Surfactants 5% 9% 2007 2008 2009…
Reference to Current Events z Practically no exposure to Greece z China is small today Using tollers until plant is ready in early 2016 z Brazil consumer end-market continues to have potential while other industries are challenged z…
Core Components of Stepans strategy Leverage Technical and Market Leadership Baseload Operations Improve Mix Geographic expansion Operational excellence Economies of Scale Surfactants: Balance Consumer Products and Functional…
Polyols for insulation is a high volume and high value business Energy efficiency is a key growth driver (Government mandated and consumer preference) Europe leads the way, but the US is rapidly increasing energy standards Since…
North America Laundry Update z Commercial Agreement signed on 7/9/15 Long-term supply agreement with The Sun Products Corporation * Stepan to supply all of SUNs anionic surfactant requirements for laundry in North America Allows…
Core Components of Stepans strategy Leverage Technical and Market Leadership Improve Mix Geographic expansion Operational excellence Baseload Operations Economies of Scale Drive growth in Functional Surfactants Drive growth…
Recent History- Increasing sales in higher end products MM USD 2,000 1,600 +14% / Yr Polymers 1,200 Functional Distributors +7% / Yr Institutional & Industrial 800 Consumer Products 400 Flat - 2010 2014 Growth from…
Global Agriculture presents an attractive opportunity for growth Global Agriculture remains very attractive despite recent headwinds 2014 was a difficult year industry-wide but not expected to repeat Global population growth…
Oilfield is the broader category - Enhanced Oil Recovery is within Oil Field 2040 Projected Energy Mix Surfactant Applications 250 Oil Sands Bitumen Dilution Water Treatment 200 Rig/Equipment Cleaning Emulsion Breakers Quadrillion…
Core Components of Stepans strategy Leverage Technical and Market Leadership Improve Mix Geographic expansion Operational excellence Baseload Operations Economies of Scale Surfactants Brazil Polymers China 12
Winning in Brazil is a core component of our strategy We believe Brazil provides the right combination of Consumer surfactant drivers Opportunities to grow in Agriculture and Oil Field Brazil is the 5th most populous country with a…
Growing Polymers in China is also key to our strategy China is a large, growing market for insulation z Chinese Government is mandating greater energy efficiency throughout economy and more use of insulation z Significant MDI*…
Global MDI Capacity MDI is the component Thousand Metric Tons product to our Polyol to produce Rigid 4,000 Insulation Foam China 2x capacity from 2012 to 2014 China passes NA and W EU in 2014 3,500 3,000 2,500 NA 2,000 W EU…
Core Components of Stepans strategy Leverage Technical and Market Leadership Improve Mix Geographic expansion Operational excellence Baseload Operations Economies of Scale Q4 2013 restructuring which reduced North America…
Operational Excellence Q4 2013 Booked Restructuring Reserve Reduces capacity in North America Consumer Products On target to save 2.5MM / year Q4 2014 Booked Restructuring Reserve Offered early retirement incentive which reduced…
Strong Balance Sheet Key Covenant Metrics Most restrictive 6/30/15 Pro-Forma * Interest Coverage 1.75 6 Minimum Net Worth 325MM 551MM Total Debt / Total Capital Max is 60% 40% Entered 100MM Debt Private Placement at 3.95% on…
Leveraging the Balance Sheet to drive future earnings growth MM USD 140 Recent key investments 130 R&D facilities in Brazil, China, and France Surfactants 120 US - Specialty surfactants Brazil - Neutralization capacity 102 100 93…
Dividend legacy Source: www.dividend.com 25-Year Dividend Increasing Stocks The total group was sorted by the longest history of paying increased dividends and the companies with the longest histories are shown here. Stepan…
Thank you for your interest in Stepan Company (NYSE: SCL) Contact information: Scott Beamer CFO 847-446-7500 21
Appendix I Reg G reconciliation: Net Income Excluding Deferred Compensation expense/income to Reported Net Income Reference: Slide on Stepan Company Profile 22
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