投资者日2003年3月2日纽约证券交易所


 
投资者日2018议程上午8:30Welcome and Opening Remarks Tom Blaser Senior Vice President, Chief Financial Officer Company Overview Fred Festa Chairman and Chief Executive Officer Strategy and Grace Value Model Hudson La Force President and Chief Operating Officer Specialty Catalysts Al Beninati President, Specialty Catalysts 9:55 a.m.上午10:15上午10:25休息。Materials Technologies Sandra Wisniewski President, Materials Technologies Refining Technologies Tom Petti President, Refining Technologies Financial Overview Tom Blaser Senior Vice President, Chief Financial Officer Closing Remarks Fred Festa Chairman and Chief Executive Officer 11:45 a.m.下午12:30。领导午餐会


 
投资者日2018安全港 3关于安全港的前瞻性声明 此演示文稿包含前瞻性陈述,即与未来而非过去事件有关的信息。这些表述一般包括“相信”、“‖-计划”、“‖ -意图”、“‖-目标”、“‖-威尔”、“‖-预期”、“‖-建议”、“‖-预期”、“展望”、“‖”--继续、‖或类似的表述。前瞻性报表包括(但不限于)预期的财务状况;业务结果;现金流量;筹资计划;业务战略;业务计划;资本和其他支出;竞争地位;增长机会;新技术和降低成本倡议的好处;证券市场。对于这些声明,GRACE声称对“证券法”第27A节和“交易法”第21E节所载的前瞻性声明提供了安全港的保护。与其他企业一样,GRACE也受到风险和不确定性的影响( ),这些风险和不确定性可能导致GRACE的实际结果与其预测大不相同,或者可能导致其他前瞻性陈述被证明是不正确的。Factors that could cause actual results to differ materially from those contained in the forward-looking statements include, without limitation: risks related to foreign operations, especially in emerging regions; the cost and availability of raw materials, energy and transportation; the effectiveness of its research and development and growth investments; acquisitions and divestitures of assets and businesses; developments affecting Grace’s outstanding indebtedness; developments affecting Grace's funded and unfunded pension obligations; its legal and environmental proceedings; environmental compliance costs; uncertainties related to Grace’s ability to realize the anticipated benefits of the separation transaction; the inability to establish or maintain certain business relationships and to retain key personnel; natural disasters such as storms and floods; changes in tax laws and regulations; and those additional factors set forth in Grace's most recent Annual Report on Form 10-K, quarterly report on Form 10-Q和目前关于表格8-K的报告已提交证券和交易委员会,可在因特网上查阅,网址为www.sec.gov。报告的结果不应被视为未来业绩的迹象。读者被告诫不要过分依赖格蕾丝的预测和前瞻性的陈述,这只说明了那些预测和声明作出的日期。Grace undertakes no obligation to release publicly any revision to the projections and forward-looking statements contained in this presentation, or to update them to reflect events or circumstances occurring after the date of this presentation. Non-GAAP Financial Terms In this presentation, Grace presents financial information in accordance with U.S. generally accepted accounting principles (U.S. GAAP), as well as the non-GAAP financial information described in the Appendix.GRACE认为,这种非GAAP财务信息提供了关于其业务绩效的有用的补充信息, 提高了期间间的可比性,并明确了用于评估其业务绩效的信息管理用途。在附录中,GRACE提供了这些非GAAP财务措施与按照美国GAAP计算和列报的最直接可比财务计量的对账。这些非公认会计原则的财务措施不应被视为替代按照美国公认会计原则计算的财务措施,而按照美国公认会计原则计算的财务结果和根据这些结果进行的调节应得到认真评估。


 
Investor Day 2018 | OUR GIFT TO YOU – DONATION TO BLUE WATER BALTIMORE 4 Blue Water Baltimore’s Mission: Blue Water Baltimore is a not- for-profit organization with a mission to restore the quality of Baltimore’s rivers, streams and Harbor to foster a healthy environment, a strong economy, and thriving communities. 5-Year Anniversary Stats:  Clocked over 43,000 volunteer hours  种植了10,000多棵树 收集了50万磅垃圾 资料来源:https://www.blewaterbaltimore.org/


 
公司概况:弗雷德·费斯塔董事长兼首席执行官


 
Investor Day 2018 | Robust technology platform driving leading-edge products and delivering strong customer value proposition 2 Operating excellence focused on process improvement discipline across the company; significant runway for opportunity 3 Top-tier profitability and ROIC with path for continued shareholder value creation 6 Solid long-term growth potential with 5% mid-point organic CAGR; additional M&A kicker 5 Proactively-managed portfolio aligned to positive global secular and macro drivers; well-positioned to deliver sustainable, profitable growth 4 KEY MESSAGES 6 Leading global specialty chemicals and materials supplier with transformed portfolio, well-established industry alliances, and licensing leverage 1


 
投资者日2018 显著改变了投资组合…  Rebalanced Advanced Refining Technologies® (ART®) Joint Venture to 50% economic interest  Streamlined supply and improved technical service after ART received exclusive right to sell CLG's hydrocracking and lubes hydroprocessing catalysts  Acquired Dow’s UNIPOL® Polypropylene Process Technology Licensing and Catalysts Business  Separated Construction Products segment and Darex Packaging Technologies business; spun-out as GCP Applied Technologies Inc.(NYSE:GCP)  Exited non-core product lines within Materials Technologies segment  Reduced facility footprint by 77% from spin-off and portfolio alignment  Acquired BASF’s Polyolefin Catalysts business  Opened Global Process Innovation Center near Columbia headquarters to optimize the development side of R&D  Positioned Materials Technologies to be roll-up leader in broad materials additives market  Acquiring Albemarle’s Polyolefin Catalysts business  Investing $100M in new hydroprocessing capacity / capabilities through ART JV  Realigning FCC to have the most extensive value product offerings at the most efficient cost position 7 Transformation Years 2010 – 2016 Leveraging Strong Core to Grow 2016 – 2018+


 
Investor Day 2018 | 2010 2017 2014 SHIFTING CATALYSTS TO PETROCHEMICALS, CLEANER FUELS 8 Petrochemicals and Clean Fuels Traditional Transportation Fuels How Grace catalysts are being used 1 VALUE CREATED Stronger and more consistent growth and FCF Higher portion of technology in value-added offerings Catalysts sold with a license affiliation increased from zero in 2010 to >15% in 2018 estimated sales 1 Charts based on percentage of total catalysts 销售;包括未合并的艺术合资企业 52%48%,61% 39% 66% 34% $1.273亿$1653亿$1724b


 
Investor Day 2018 | GRACE AT A GLANCE 9 The leading global supplier of process catalysts and specialty silicas ~$5B Market Cap1 ~$2B 2017 Sales2, 3 31% Adj. EBITDA Margin2 24% Adj. EBIT ROIC2 75% Business Outside the US 80% #1 or #2 Business Positions Operating Segments Refining Technologies | Specialty Catalysts | Materials Technologies 1 As of 2/20/18 2 Based on FY2017 3 Catalysts Technologies includes unconsolidated ART joint venture; FCC = Fluid Catalytic Cracking, SC = Specialty Catalysts, ART = Advanced Refining Technologies; FCC and ART together constitute the Refining Technologies operating segment 27% 7% 24% 22% 6% 6% 7% 2017 Grace Sales3 Distribution Catalysts Technologies $1.8B 80% Sales2,3 Materials Technologies $0.4B 20% Sales2 Consumer/ Pharma Chemical Process Coatings Traditional Fuels PetroChem Feedstocks Plastics Clean Fuels * Definitions of non-GAAP financial terms and reconciliations to the closest GAAP term are provided in the Appendix


 
Investor Day 2018 | SEASONED, PASSIONATE, INDUSTRY-LEADING TEAM Fred Festa Chairman, Chief Executive Officer Joined Grace: 2003 Hudson La Force President, Chief Operating Officer 2008 Mark Shelnitz Vice President, General Counsel, Secretary 1983 New to Grace within the last three years Liz Brown Vice President, Chief Human Resources Officer 2015 Tom Blaser Senior Vice President, Chief Financial Officer 2016 Keith Cole Vice President, Government Relations and Environment, Health, and Safety 2014 10 Tom Petti President, Refining Technologies 1992 Sandra Wisniewski President, Materials Technologies 2017 Al Beninati President, Specialty Catalysts 2014


 
Investor Day 2018 | Reporting Segments Catalysts Technologies Materials Technologies End Markets Petrochemical and Chemical Refining Coatings, Consumer/Pharma and Chemical Process Product Lines Specialty Catalysts FCC Catalysts Hydroprocessing Catalysts (ART) Silica-based and Silica-Alumina-based Materials End Products MARKET-LEADING PRODUCT PORTFOLIO 11 Connected by inorganic material science


 
Investor Day 2018 | PORTFOLIO TIED TO POSITIVE, SUSTAINABLE GLOBAL TRENDS 12 Global Demand Rising Living Standards FCC     Hydroprocessing (ART)    Specialty Catalysts    Consumer/Pharma   Chemical Processing    Coatings   Plastics Transportation Fuels Growth in Household Income Stricter Environmental 和健康 标准/策略 调整/策略更改


 
Investor Day 2018 | UNIQUE CUSTOMER VALUE PROPOSITION 13 Unique value proposition has led to deep customer relationships Deep Applications Expertise  Industry-leading expertise in customer applications  New product development driven by deep knowledge of customer requirements New Product Innovation  11 R&D and technical service facilities in 7 countries  Top quartile among peers for R&D spend  Vitality Index: ~30% of revenue from products launched in last 5 years Patent Protection  Over 800 active patents worldwide; 8-year average remaining life  800 new patent applications in progress  About one-third of revenue from active patent products Manufacturing Know-How  Unique, synergistic mix of material science expertise  Significant trade secrets support key manufacturing capabilities


 
Investor Day 2018 | Manufacturing and R&D centers Headquarters Columbia, MD North America 28% Latin America 6% Asia Pacific 27% EMEA 39% 14 Close to our customers…with technology, supply chain, and FX advantages 20 facilities in 9 countries 11 facilities in 7 countries Manufacturing R&D and Technical Service 2 pending acquisition 1 in development % 2017 sales FLEXIBLE, DIVERSE GLOBAL MANUFACTURING NETWORK


 
Investor Day 2018 | STRENGTHS AND SUSTAINABLE COMPETITIVE ADVANTAGES 15 Focused portfolio with highly complementary business mix Flexible global manufacturing network Disciplined acquirer with history of successful integrations Strong relationships with blue-chip customers Our culture: performance-driven and results-oriented CORE STRENGTHS SUSTAINABLE ADVANTAGES High barriers to entry in many product lines Applications expertise and technical service driving long-term customer relationships Unique, synergistic mix of materials science 深度技术平台和 创新的记录


 
Investor Day 2018 | KEY TAKEAWAYS 16 Energized management team fostering transformation and leveraging process and technological expertise to drive productivity and profitability Market-leading positions aligned for growth; innovative technologies, customer-centric culture, and favorable global trends Building on our high-performance culture, doing what we say we are going to do, and continuously improving Disciplined financial management and capital allocation; poised for significant value creation from robust opportunity set


 
战略和格雷斯价值模型 Hudson La Force 总裁兼首席运营官


 
Investor Day 2018 | High-performance culture focused on meeting commitments and continuous improvement 2 Tightly-aligned operating model creates value for customers, investors and employees 3 Reaffirming 2016-2021 financial framework: growth, earnings, cash 5 Early in operating excellence journey; significant runway of opportunity 4 密钥消息 18 定向投资,以加速处于良好地位的投资组合 1


 
Investor Day 2018 | Acquire to build our technology and manufacturing capabilities for our customers 4 Invest in great people to strengthen our high-performance culture 2 STRATEGIC FRAMEWORK FOR PROFITABLE GROWTH Invest to accelerate growth and extend our competitive advantages 1 19 Formalize the Grace Value Model to drive operating excellence 2 3


 
Investor Day 2018 |  Demand for plastics and petrochemical feedstocks  Growth in household disposable income  Demand for cleaner fuels and heavy oil upgrading  Stricter environmental and health standards 4%-6% Annual global plastics demand growth ~4% Annual global middle class consumption growth 5%-7% Annual global hydroprocessing catalysts demand growth PORTFOLIO POSITIONED FOR GROWTH 20 Well-positioned in high-value markets with sustainable growth drivers 2021 $3B+ 2016 $2B+ Organic Growth Drivers Operating Excellence M&A Sources: IMF, PWC, IHS, EIA.gov, AIPMA and Plastindia, TATA Strategic Analysis, Brookings Institution, Grace internal estimates


 
投资者日2018投资于我们的投资组合… High-return investments in growth capacity, technology, and operating excellence Specialty Catalysts: PP/PE catalysts capacity, matched with customer capacity investments and licensee start-up timing Materials Technologies: High-value silica capacity matched with customer investments and product development Refining Technologies: Catalysts for petchem feedstocks and cleaner fuels matched with customer capacity investments Technology: R&D for high-value resins, max propylene, resid upgrading, cleaner fuels, high-value silica, and pharma fine chemicals Operating Excellence: Investments in GRACE制造 系统,改进的过程控制,制造 性能和生产力 21 …To accelerate growth and extend our competitive advantages  Most organic growth  Reinvesting >40% of cash flow in growth and productivity  Medium organic growth  Reinvesting >30% of cash flow in growth and productivity  Less organic growth  Reinvesting


 
Investor Day 2018 | CONNECTED BUSINESSES THROUGH MATERIALS SCIENCE 22 Applications Basic Science Organic Chemicals MgCl2 Silica Silica Alumina Alumina Raney Metal BioPharma Chemical Catalysts Materials Technologies Polyolefin Catalysts Refining Catalysts Pharmaceutical Intermediates Molecular Sieve Adsorbents Coatings Additives Reinforcement / Binder Agents Chromatography Products Food/Beverage/Personal Care Processing Aids Surface Modifiers Methanol-to-Olefin Catalysts Hydrogenation Catalysts Zeolite Catalysts Ebullating Bed Distillate Hydroprocessing Catalysts Fixed Bed Hydrocracking Fluid Cracking Catalysts FCC Additives Light Olefins Environmental UNIPOL® Licensing Chromium Catalysts Ziegler-Natta Catalysts Single-site Catalysts Organometallic Components Polypropylene Catalysts Catalysts Technologies Materials Technologies Catalysts Carriers


 
Investor Day 2018 | ht tp :// co rp or at e. ex xo nm ob il. co m /e n/ en er gy /e ne rg y- ou tlo ok /c ha rt s- 20 17 /g lo ba l-t ra ns po rta tio n- en er gy -m ix -e vo lv es WHEN WILL TRANSPORTATION FUELS PEAK?  Car ownership increases in non-OECD countries  Motorcycles offer lower-cost entry point to personal mobility  OECD fleet grows but cars per 1,000 people increases by only 10%  Gasoline demand flattens with improvements in new-car fuel economy, electric vehicles  Diesel demand grows 30% to meet trucking, marine needs  Jet fuel, natural gas, and biofuels grow significantly in select sectors ―By 2035, 1.8 million barrels per day of global oil demand will be displaced by EVs, less than 2% of total oil demand‖ By 2040... 23 Global fleet to grow about 80% to ~1.8 billion vehicles Electric vehicles could reach 15% of the fleet Electric vehicles penetrate small, mid-size and hybrid segments Sources: Wood Mackenzie – ―Electric Vehicles: On the verge of an EV revolution?‖ and ―The rise of the electric car: how will it impact oil, power and metals?‖ Exxon – ―November 2017 Investor Deck‖ ht tp :// ph x. co rp or at e- ir. ne t/E xt er na l.F ile ?i te m =U G F yZ W 50 S U Q 9M jk 0O D g3 fE N oa W xk S U Q 9L T F 8V H lw Z T 0z & t= 1& cb =6 35 81 55 75 38 70 02 47 8 Refiners shifting FCC unit output to petrochemical feedstocks


 
Investor Day 2018 | FCC UNITS REMAIN CORE TO REFINERIES 24 FCC units will produce $ billions in value to and through the peak  Shift from fuels to propylene underway for many years – Requires higher-value FCC catalyst, especially when processing low quality crudes  FCC units are generally the most flexible and profitable units in the refinery  Refiners continue to invest in FCC units – Significant growth in FCC capacity in last 5 years – Announced investments continue to add capacity +++ very advantaged ++ more advantaged + advantaged - less advantaged - - least advantaged Gasoline Producing Unit (% of total pool) FCC (40%) Reformer (25%) Alkylation (10%) Isomerization (5%) Hydrocracker (10%) Straight Run (10%) Highest value gasoline source (rank order, #1 best) 1 2 2 4 4 6 Margin uplift + + + + + + - Flexibility to process low- cost / difficult feedstocks + + - - - - - + - - Octane value / Blending flexibility + + + + + + + - - - - Olefins for petrochemical feedstocks + + - - - - - - - - - -将剩余和重质产品升级为 +++---


 
投资者日2018 高绩效文化与gvm 25 [类别 名称][类别 名称][类别 名称][类别 名称][类别 名称][类别 名称][类别 名称][类别 名称] Grace Talent Management Model Grace Leadership Behaviors Great talent, focused on customers Grace leaders are game changers – at all levels of the organization. We put customers first, company second, and ourselves third Deliver Results Clear thinking and decision making required given strong strategic position and top quartile returns Think Critically Communicate Team-oriented, transparent approach with customers, employees, investors, and others Engage Committed, action-oriented approach to all 我们是这样做的。不断改进 的心态 协作,奖励环境 让伟人茁壮成长成为真正的


 
Investor Day 2018 | INTRODUCING THE GRACE VALUE MODEL (GVM) Our tightly aligned business model delivers value for customers, investors and employees 26 At the company level, we focus on portfolio, strategic position, and capital allocation  We invest to grow our businesses, improve our strategic position, and maintain our high ROIC At the business level, we focus on customers, innovation, growth, and profitability  Our customer-focused, solutions-oriented approach to innovation is a competitive advantage  Value selling is the core of our commercial approach  The Grace Manufacturing System is the foundation of our operating excellence strategy  Integrated Business Management aligns our core processes Great talent and our high-performance culture are competitive advantages  We invest in great people 加强我们的高性能文化


 
Investor Day 2018 | GVM MATURITY 27 Strong foundation with significant runway of opportunity Strong Strategic Position Focused Portfolio Disciplined Capital Allocation Customer-driven Innovation Commercial Excellence Operating Excellence Early Stage More Mature


 
Investor Day 2018 | GRACE ADJUSTED GROSS MARGIN PERFORMANCE 28 Gross margins key to investment returns: balancing profitability, growth reinvestment Improved gross margin reflects many levers we manage:  Technology improvements in core catalysts and materials products  Improved value selling and pricing  Business and product mix; shift to higher value, more differentiated technologies  Portfolio management (acquisitions and divestitures)  Investments in commercial and manufacturing excellence  Manufacturing and supply chain productivity; continuous improvement  Raw material and energy cost cycle 2016: Strong margins  Very strong business, product and customer mix  Deflationary environment added 2 points to margins 2017: Inflation accelerates  Business, product and customer mix not as strong  Manufacturing performance cost 1 point of margin  Inflation accelerates in second half 2018: Improvement resumes  Better business, product and customer mix  Improved value selling, pricing and productivity begin to mitigate inflation 0% 10% 20% 30% 40% 50% 2008 2013 2016 2017 2018E Ad ju s te d G ro s s M ar g in %


 
Investor Day 2018 |  Add new best practices in quality, process control, maintenance and performance to build on mature Lean Six Sigma capabilities  $10-$20M of high-return investments in GMS – Extends competitive advantages – Improves cost position  Investing in high-return growth capital over three years to add ~$250M in sales by 2021 MANUFACTURING EXCELLENCE 29 Success measured in safety, quality, delivery, growth, cost position Capital – Investing to accelerate growth and improve cost position Industry Best Practices Grace Manufacturing System (GMS) – The foundation for all 5 pillars Customer- focused Quality Strategy Top Quartile Mfg. Performance (OEE) Cost Position Plant Performance Quality People EHSS Strong Talent at All Levels No One Hurt Improved Cost Position


 
Investor Day 2018 | Solution Upgraded Process Controls and Standardized Operation Improved product quality and consistency Results Challenge Finished product quality and production efficiency strongly linked to intermediates quality Manual controls, outdated sensor technology, and inconsistent operation limited process capability Opportunity to invest in process capability to improve product quality and efficiencies Lowered raw material and energy costs Increased Throughput $3 million investment, 2 year payback CASE STUDY: MANUFACTURING EXCELLENCE 30 } { Before Investment Output variable Input variable before improvement After Investment Output variable Input variable after improvement Attractive, high-return investment opportunities


 
Investor Day 2018 | THOUGHTFUL DISCIPLINED M&A APPROACH 31 Active pipeline for strategic acquisitions will continue to create value Target Profile and Strategic Fit Expands technology, R&D and/or commercial capabilities Leading market positions to accelerate growth Attractive sales and earnings profiles Enhances and/or leverages manufacturing capabilities Synergy Highly synergistic Returns focused on cost and capital savings 利用现有的全球基础设施 销售/商业协同-所有向上的 返回 >风险调整的障碍率 强ROIC EPS增长


 
Investor Day 2018 | REAFFIRMING 2016-2021 FINANCIAL FRAMEWORK 32 Long-term outlook reinforces investment thesis Total Sales CAGR Adj. EBITDA CAGR Adj. EPS CAGR Adj. FCF 6%-8% 4%-6% 6%-8% >10% >$1B Over 5 Years  Framework reflects targeted investments to accelerate growth across our portfolio  Double-digit average Adj. EPS growth  Grow dividends faster than Adj. EPS growth  可用于收购和返还股东的强大自由现金流动---有机 销售---CAGR


 
Investor Day 2018 | KEY TAKEAWAYS Strong strategic position; well-positioned for growth Grace Value Model focused on creating value Investing in operating excellence; long runway of opportunity Attractive financial framework for growth, earnings, and cash 33


 
特种催化剂 Al Beninati 主席,特种催化剂


 
Investor Day 2018 | Highly-experienced and disciplined leadership team driving robust pipeline of organic and inorganic opportunity 2 Deepening customer-centric approach through best-in-class technical expertise and superior manufacturing know-how 3 Linked with the winners who are investing and growing faster than the market 5 Emerging market expansion opportunities and strong licensing revenue driving above-market growth 4 KEY MESSAGES 35 Investments of well over $1B have built a global leader in specialty catalysts with broad, highly-differentiated product portfolio 1


 
Investor Day 2018 | 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 OVER $1B IN STRATEGIC PP AND PE ACQUISITIONS 36 PP Catalysts  Delivered on revenue and synergies of all deal models  4x increase in revenue and margin since 2006 Acquired Borealis Ziegler-Natta tech for PE and PP catalysts Acquired manufacturing capacity for PP catalysts and specialty catalyst components Acquired Single-site and PP catalyst production capacity $500M Acquired UNIPOL® PP catalyst and licensing business from Dow $250M Acquired LYNX® and Polyolefins catalyst business from BASF $416M Planned acquisition of Albemarle Polyolefins catalyst business Ziegler-Natta Single-site PE PP PP Licensing PE Catalysts PP Licensing 2016 2018 2013 2011 2006 2002 Technology Leader Strong Position Developing Position Advancing Position A d d ress a b le M a rke t


 
Investor Day 2018 | SPECIALTY CATALYSTS SNAPSHOT 37 Sales 1 $518M Adj. Gross Margin 1, 2 41% Adj. EBITDA Margin 1, 2 38% Applications  High pressure pipe  Geomembranes  Food packaging  Automotive parts  Medical devices  Textiles Key Customers  Global and national petrochemical companies  Plastic resin producers 2017 Sales 1 FY 2017 2 Margins are as reported for total Catalysts Business Segment 45% 9% 5% 41% By Product PP Catalysts PE Catalysts Chemical Catalysts Process Licensing Polyolefin Catalysts Process Licensing Chemical Catalysts End Products 26% 20% 42% 12% By Region China & India EMEA Americas Rest of Asia * Definitions of non-GAAP financial terms and reconciliations to the closest GAAP术语在附录


 
Investor Day 2018 | Polyethylene Catalysts Polypropylene Catalysts Process Licensing Chemical Catalysts Overview Used in the production of polyethylene (PE) and polypropylene (PP) thermoplastic resins to enhance wide range of industrial and consumer end-use applications Provides licensees with a proven capability to manufacture PP products for a broad array of end-use applications Used in a variety of petrochemical chain conversions and fine chemical production Brands MAGNAPORE® SYLOPOL® LYNX® CONSISTA® SHAC® LYNX® POLYTRAK® HYAMPP® UNIPOL® PP Process Technology UNIPPAC® Process Control RANEY® DAVICAT® Market- Leading Positions PE Catalyst PE Catalyst Supports Custom Catalyst Production PP Catalyst PP Advanced Donors Custom Catalyst Production PP Process Technology Licensing Advanced Process Control Technology Chemical Catalysts Hydrogenation Catalyst Catalyst Supports Custom Catalysts BREADTH OF TECHNOLOGY 38 Technology Leader Developing Position


 
Investor Day 2018 | STRENGTHS AND SUSTAINABLE COMPETITIVE ADVANTAGES 39 Strong relationships with customers in high-growth end markets One of the broadest, highly- differentiated product portfolios Licensing and catalysts technologies Deep manufacturing expertise Comprehensive product analysis CORE STRENGTHS SUSTAINABLE ADVANTAGES Ability to develop and optimize catalyst properties for any application Flexible assets to scale-up and produce customers’ custom catalysts Modeling and testing capability to improve 吞吐量和 树脂属性 可信顾问用于 联合开发和自定义解决方案


 
Investor Day 2018 | CAPITALIZING ON FAVORABLE TRENDS 40 New product solutions enabling polyolefins to meet global trends and needs 1 Source IHS Markit Secular Theme Trends Grace Solutions Emerging Economies  Emerging middle class with demand for consumer products  Expanding local capabilities through global partners to meet growing per capita demand  Enable production of materials essential to the products of everyday life  Portfolio of solutions PE/PP/CC to enable regional leaders to grow and succeed  Licensing for new projects Global Demand for Plastics  Replacing traditional materials, such as metal, wood and glass, to improve strength, reduce weight, and extend life of end use applications  Prefer lighter, stronger, and cleaner materials that are sustainable  Catalysts for advanced PE and PP resins allowing down-gauging and new applications  Catalysts for PE and PP resins with increased stiffness, durability, and temperature tolerance -10 0 10 20 30 40 50 60 70 80 90 -10 0 10 20 30 40 50 60 India Indonesia Brazil China S. Korea EU U.S. Japan GDP Per Capita, Million Metric Tons Polyolefin Demand & GDP Polyolefin Per Capita (KG) 1 Low High L o w Hig h C O M P L E X IT Y MARGIN


 
Investor Day 2018 | TOTAL ADDRESSABLE MARKET 41 Investing to achieve highest growth potential in attractive end markets Catalyst Market Size 5-year Industry CAGR (2016-2021) PP1 $0.8B 5-6% PE1 $0.7B 4-5% PE and PP Licensing1 $0.3B 5-6% Chemical Catalysts2 $2.2B 3-5% Other Polymer and Chemical Catalysts3 $7B 2-4% Syngas $0.7B Oxidation $0.6B Hydrogenation $0.6B Dehydrogenation $0.3B PP Catalysts $0.8B PE Catalysts $0.7B Process Licensing $0.3B $1.8B Polyolefin Catalysts $2.2B Chemical Catalysts $4B Market 1 Market Size and CAGRs are based upon IHS and Grace internal estimates 2 The Catalyst Group 3 Grace does not directly address these markets today


 
Investor Day 2018 | Win with the PE winners 3 Penetrate chemical catalyst adjacencies 4 Extend PP catalyst technology coverage 2 SPECIALTY CATALYST STRATEGIC INITIATIVES Drive PP licensing and catalyst synergy 1 42


 
Investor Day 2018 | EACH LICENSEE IS A LONG-TERM CATALYST CUSTOMER 43 1 IHS and Grace internal estimates  Consistent 5-6% industry growth drives 6-8 new plant builds per year  Average new plant start-up adds an average of $5-7M of additional catalysts sales per year  Innovation and technical service secures long-term catalyst supply post start-up  High win rates are achieved through UNIPOL® competitive advantages  Product slate ranges from simple homo-polymers to complex impact co-polymers  Design improvements are continuously updated based upon customer drivers 7 8 6 6 7 8 -12.0 -7.0 -2.0 3.0 8.0 $0 $50 $100 $150 $200 $250 $300 2016 2017 2018 2019 2020 2021 Ca ta lys t W ea lth ($ M US D) PP 催化剂财富和工厂需求增加催化剂财富($)累积催化剂财富($)450 kton PP催化剂财富和工厂要求 1最简单。可靠。Easy to Operate. System Simplicity Low Investment (plant ISBL capital)* Cost of Production* Easy, Flexible & Robust Operation Overall Product Capacity Inherently Safe & Enviro mentally Sound * From : NexantThinking™ ―POPS PolyOlefins Global Technology Analysis Report,‖ Tables 50-59, published Oct. 2016, with the permission of Nexant Inc. Peer A Peer B Peer C GRACE


 
Investor Day 2018 | UNIQUELY POSITIONED IN PP CATALYSTS Winning with UNIPOL® PP catalyst solutions  Multi-generational product map for higher performance resin targets  R&D and PP resin expertise for value-added random and impact copolymers  Experienced technical service to advise and support catalyst use by licensees  Combined solution of catalyst and donor to capture benefits of UNIPOL® PP and UNIPPAC® platform Growing position with new high- performance catalysts UNIPOL® PP technology with superior process and catalyst technology Grace is attractive partner for custom catalysts for other licensors Partner with leading PP producers with their own proprietary catalysts Future P rod u ct F e atures / V alue $ CONSISTA® SHAC® HT Future SHAC® Today Drop-in high throughput catalyst Translated from broad portfolio High performance internal donor Translating to other catalyst recipes Ultra high purity resins UNIPOL® PP Catalyst Multi-Generation Product Plan Winning across all PP process platforms  Commercial platforms for organic growth and technology synergies from legacy Grace, plus Dow and BASF acquisitions  Demonstrated success scaling up technologies to work in each PP process platform  Custom catalyst production for industry-leading PP producers with global Grace manufacturing  Experienced R&D, PP resin pilot plant, and technical service for catalyst development and resin applications 44 Well-positioned with broad catalyst technology platform 3rd Party Licensor Captive Licensor Partner PP Producer- Custom


 
Investor Day 2018 | Solution R&D teams collaborated to develop resin grades in Grace pilot plant with industry-leading CONSISTA® catalyst Technical Service team demonstrated technology in client’s commercial unit using UNIPPAC® control system Positioned customer to enter fast-growing automotive market in Asia Pacific by expanding their product portfolio Results Challenge Asia Pacific licensee sought to upgrade value of their PP resin portfolio to improve profitability Customer strategy was to expand from pipe grades to higher-value grades for automotive applications Customer increased the revenue from their plant by over $10M upon converting 50% of their resins to automotive grades CASE STUDY: UNIPOL® PP SOLUTIONS DELIVERING VALUE 45 Delivering value with technology/catalyst expertise and strong service


 
Investor Day 2018 | Solution R&D team developed LYNX® catalyst and donor solution to replace discontinued catalyst with no operational issues With close technical support, customer successfully demonstrated the technology on their commercial reactor Customer was able to continue production of high-value resin Results Challenge Asia Pacific customer looking to replace PP catalyst due to alternative supplier discontinuation Required new catalyst to make same high-value PP copolymer but avoid reactor operation issues observed in prior trials Improved operability led to $2M annual cost savings Enabled potential for $2M in additional value-added resin sales CASE STUDY: PP CATALYST TECHNOLOGY DELIVERING VALUE 46 Broad portfolio of solutions that can be applied to all PP process technologies


 
Investor Day 2018 | ACCELERATE POLYETHYLENE GROWTH  Well-positioned to serve all PE process technologies – Portfolio of PE catalysts: chromium, Ziegler-Natta, and single-site options  Sales growth through strong corporate account relationships with the PE winners – Grow at or above industry growth rates of 4-5% – Serving the Gulf Coast expansion with several innovative custom catalysts  Accelerating additional growth through single-site catalysts – SSC PE resins offer high value, differentiated performance for our customers’ customers – Segment growth of 2-3x traditional PE market – Pending acquisition of polyolefins catalysts business will move Grace from a participant to an industry leader 47 PE catalyst technologies aligned with market drivers and leaders - 2 4 6 8 Linear Low Density PE High Density PE T on s - M illion s Global SSC PE Consumption1 2013 2015 2018 2021 11% CAGR 14% CAGR 1 Source: IHS Markit Global PE Capacity Growth Rate


 
Investor Day 2018 | ANNOUNCED SSC ACQUISITION AND INTEGRATION UPDATE 48 Quadruples Grace’s current position in single-site catalysts Accelerates Grace’s single-site catalyst strategy in polyethylene  Fastest growing PE segment—high single-digit 5-year CAGR driven by sophisticated resin applications  Advances Grace’s position in finished catalysts Strong portfolio of polyolefin catalysts and components  Finished catalysts, including custom catalysts, proprietary single-site catalysts, and Ziegler-Natta catalysts (ZN)  Activators (MAO and organoborons)  Metallocenes Sound financials  ~3x reduction to acquisition multiple from cost and capital synergies  Accretive to EPS (minimally in 2018, fully in 2019) Disciplined integration  Integration on track for seamless transition at close  Targeted to close at Q1的终点 Yeosu, 韩国 Baton Rouge, 路易斯安那州 USA 两个制造地点


 
Investor Day 2018 | Solution • Grace’s technical team collaborated with the customer’s operations team to conduct a root cause analysis • Grace produced a custom, proprietary, single-site catalyst that addressed performance issues • A cross-functional Grace team also improved catalyst production and the customer’s catalyst handling processes Customer generated $4M+ in annual operational savings due to improved catalyst performance Results Challenge The catalyst being used by one of the PE winners was creating operational issues and reactor shutdowns Deepened Grace’s relationship with the customer CASE STUDY: CUSTOM PE CATALYSTS DELIVERING VALUE 49 Enabling customers with high-quality commercial supply of complex catalysts


 
Investor Day 2018 | 0 0.5 1 1.5 2 2.5CHEMICAL CATALYST GROWTH STRATEGY 50 Background  Specialized and niche solutions  Portfolio currently RANEY® and DAVICAT® products  Highly-fragmented catalyst market with global and local competitors Growth Strategy  Expand capabilities organically in existing and adjacent markets  Targeted M&A to open additional adjacencies and add capabilities  Expand relationships with targeted customers  Additional opportunities – Custom catalyst solutions and licensing – Broader collaboration with market leaders PE Catalyst PP Catalyst ~$2.2B Market ChemCat Syngas $0.7B Oxidation $0.6B Hydrogenation $0.6B Dehydrogenation $0.3B Developing Position Advancing Position 2018 2002 PP Licensing 2013


 
Investor Day 2018 | KEY TAKEAWAYS 51 Strengthened business; now optimizing comprehensive product portfolio to exceed industry growth rates Deepening penetration with blue-chip customers and in emerging geographies Licensing business in growth cycle with significant pull-through catalyst demand Leveraging polyolefin catalyst/licensing expertise and business model to grow chemical catalysts Successful track record of consistently realizing acquisition-related commercial and cost synergies


 
问答


 
中断


 
材料技术 Sandra Wisniewski 总统,材料技术


 
Investor Day 2018 | Serving diverse customers in high-value niche markets; enhancing customers’ product differentiation and sustainability 2 Pivoting to accelerated growth through continued product innovation and M&A 4 70% of the portfolio is comprised of functional or unique additives; 30% supports critical processing efficiencies 3键消息 55 在广义产品 组合中识别的品牌,任何单一的 制造商 1


 
Investor Day 2018 | Consumer/ Pharma MATERIALS TECHNOLOGIES SNAPSHOT 56 38% 34% 23% 5% By Region 37% 34% 29% By End Market W. Europe N. America Developed Asia Chemical Process Sales 1 $440M Adj. Gross Margin 1 38% Adj. EBITDA Margin 1 27% Key Customers  Pharmaceutical companies  Consumer products manufacturers  Industrial chemical manufacturers  Petrochemical and natural gas producers  Plastic resin and film manufacturers  Tire and rubber manufacturers  Paint and coatings companies Applications  Pharmaceutical intermediates  Excipients and chromatography  Consumer products additives and processing aids  Environmental catalysts  Gas and petrochemical processing  Plastics and rubber additives  Coatings additives  Paint additives  Digital media 1 FY 2017 Note: color coding within ―key customers‖ and ―applications‖ correlates to ―By End Market‖ pie graph colors * Definitions of non-GAAP financial terms and reconciliations to the closest GAAP term are provided in the Appendix Coatings Chemical Process Consumer/Pharma Applications 2017 Sales Emerging Regions Coatings


 
Investor Day 2018 | BREADTH OF TECHNOLOGY 57 Consumer/Pharma Chemical Process Coatings Overview Specialized materials used as additives and intermediates for pharmaceuticals, nutraceuticals, beer, toothpaste, food, and cosmetic segments Functional materials for use in plastics, rubber, tire, metal casting, and adsorbent products for petrochemical and natural gas applications Functional additives for wood and architectural coatings that provide surface effects and corrosion protection for metal substrates Primary Brands SYLODENT® • SYLOID®FP SIDENT® • SYLOID® XDP PERKASIL® • SILSOL™ TRISYL® • VYDAC® DARACLAR® • DAVISIL® LUDOX® • SYLOSIV® SYLOBEAD® • SYLOBLOC® PHONOSORB® • PERKASIL® SYLOID® • SYLOWHITE™ SHIELDEX® • LUDOX® SYLOSIV® • SYLOJET® Application Grace brands are well established and highly trusted


 
Investor Day 2018 | HIGH VALUE, NICHE USES 58 Grace materials are in products all around us Over 3,000 customers Linked by silica material science expertise Kitchen Coatings, Paint Matting Agents Appliances Anticorrosives Windows Desiccants Plastics Antiblock, Adsorbents Foods Anticaking Vegetable Oil Purification Beer Stabilizers Natural Gas Adsorbents Toothpaste Whitening Agents Cosmetics Thickeners, Exfoliants Pharmaceuticals Washroom Nutraceuticals Excipients, Drug Delivery, Fine Chemicals Garage Tires / Rubber Reinforcing 制剂 排放控制 粘结剂 燃料 生物燃料 吸附剂,净化


 
Investor Day 2018 | GRACE IN PHARMA Chromatography Resins  VYDAC® for protein and peptide purification  DAVISIL® for small and large molecules  Experienced technical support Formulation Excipients and Drug Delivery  SYLOID® FP Silica – trusted in formulations for 50+ years  Industry-leading quality standards (IPEA-GMP)  Innovative carrier and drug delivery technologies A Range of Solutions for Pharma Customers Grace is committed to consistently delivering high-quality products to our customers and is well-equipped to meet the stringent regulatory demands in the pharmaceutical industry. 59 Pharmaceutical Intermediates and API  Custom manufacturing  Kilos to tons cGMP production  Strong collaborative working relationships Support key points in the pharma value chain


 
Investor Day 2018 | STRENGTHS AND SUSTAINABLE COMPETITIVE ADVANTAGES 60 CORE STRENGTHS Strong brand recognition Comprehensive product offering Established market position Deep applications knowledge SUSTAINABLE ADVANTAGES Proven innovation in material sciences Balanced portfolio spanning a broad range of specialty applications Global footprint to support regional customer requirements


 
Investor Day 2018 | Aging population drives rising healthcare spend Growing middle class increases household income and drives quality of life products Expanded middle class drives increased need for durable goods MARKET GROWTH DRIVERS 61 Demographics Grace Offering Clean air regulations drive implementation of emission control technologies Tightening VOC regulations require new coatings solutions Corporate paradigm shifts to reduce environmental footprint and improve sustainability Stricter Environmental and Regulatory Policies Changing Customer Requirements Improved visual appeal in food packaging More effective cleaning with reduced abrasive qualities for sensitive teeth High fuel efficiency in automobiles New product solutions enabling our customers to capitalize on global trends and needs


 
Investor Day 2018 | TOTAL ADDRESSABLE MARKET 62 Growing and attractive addressable markets Market Size 5-year Industry CAGR (2016-2021) Consumer/Pharma1 $5B 5-8% Chemical Process2 $4B 3-4% Coatings3 $1B 2-4% $10B Market 1 Freedonia, BCC Research and Grace estimates 2 IHS Chemical, Freedonia and Grace estimates 3 Freedonia and Grace estimates


 
Investor Day 2018 | Implementing operating excellence initiatives 3 Focusing on strategic M&A 4 Advancing commercial excellence 2 MATERIALS TECHNOLOGIES STRATEGIC INITIATIVES Increasing investment in innovation 1 63


 
投资者日2018 成功的关键 1。敏捷创新关键伙伴关系 3。重振和再投资于有机管道 4。利用材料 科学根源 5。Focus on M&A to accelerate portfolio development 2000 Today Acquired LUDOX® colloidal silica from DuPont 2000 Acquired precipitated silica business from Akzo 2001 Introduced SYLOID® RAD matting agent 2001 Acquired Synthetech for catalysts and fine chemicals 2010 Acquired VYDAC® assets Chromatographic silica technology 2001 Introduced new specialty precipitated silica products 2007-2010 Established JDA with Formac for drug delivery 2011 Launched novel beer stabilizer DARACLAR® 9000HP 2015 Acquired licensing rights on Formac drug delivery patents 2017 Launched SILSOL® drug delivery technology concept 2010 Introduced new SHIELDEX® anti-corrosive products 2011 Signed global license agreement with Bunge for TRISYL® 2016 Acquired specialty silica technologies from Evonik 2017 INCREASING INVESTMENT IN INNOVATION 64 Grace invented silica gel in 1921 and our innovation continues today…{Br}…投资促进未来增长


 
Investor Day 2018 | CASE STUDY: INNOVATION UNLOCKS VALUE 65 Customer Requirement Solution: DARACLAR® 9000HP Silica Delivered Value Reduced Waste Improved Efficiency Reduced Hazards Enhanced Value  Reduced need for filtration aid  Reduced solid waste  Reduced water required to manufacture beer  Debottlenecked filtration step  Added capacity without capital investment  Reduced need for hazardous filtration aid that poses health risks in manufacturing and the final product  Increased cost for DARACLAR® 9000HP  Reduced working capital  Decreased total cost to manufacture beer Environment Productivity Health and Safety Financial Challenge: Major beer manufacturer was facing pressure to increase productivity and reduce their environmental footprint without impacting product quality. Grace developed innovative 啤酒稳定剂DARACLAR 9000HP以解决未满足的需求。 影响:31%的客户储蓄 DARACLAR 9000HP提供生产力和可持续性价值给客户


 
Investor Day 2018 | ADVANCING COMMERCIAL EXCELLENCE 66 Commercial Excellence Marketing Channels Customer Sales Optimize Channels to Market  Direct and channel partners  Increased reach and coverage  Improved specialty segment access Implement Strategic Marketing Process  Disciplined approach to market development  Refined customer segmentation Focus on Customer Relationship Management  Leveraging SalesForce.com  Increased key account focus  Enforced pipeline rigor Invest in Sales Effectiveness  Building skills and capabilities  Refining design to align with strategy Deliver growth acceleration and value capture


 
Investor Day 2018 | CASE STUDY: STRATEGIC CUSTOMER PARTNERSHIP 67 Requirement Evolving Product High Cleaning Silica Thickening Silica Engineered Silica Exfoliating Silica Solution:  Met regional consumer demand for ―good cleaning with low abrasion‖  Designed to meet consumer requirement for whitening without increasing sensitivity  Solved manufacturing/ supply issue with previous supplier, enabling Grace to hold majority market share with company in EU  Specifically developed a uniquely modified silicate that reduced tooth sensitivity  Silicas are an environmentally friendly alternative to polyethylene microbeads Challenge: Develop novel solutions to meet evolving product requirements for the consumer product market. Exceeding customer needs led to deeper customer relationships and success. Consumer Needs Continuity and Performance Collaborative R&D Sustainable 2007 从材料供应商到战略合作伙伴的十年来销售额增长了2017 5倍


 
Investor Day 2018 | IMPLEMENTING MANUFACTURING EXCELLENCE INITIATIVES 68 Focus Areas Quality and Performance Capital Investments Goal  Best customer experience  Targeted investment to capture strong market demand Action Items  Customer-centric view of quality  Implement Grace Manufacturing System as a path to sustainable manufacturing excellence  Disciplined project execution  Invest in productivity for capacity increases and cost improvement Performance Metrics  Plants with GMS implemented  Improved cost position  Customer satisfaction  IRR > 20%  Deliver projects on time and on budget Sustained growth with improved cost position


 
Investor Day 2018 | FOCUSING ON STRATEGIC M&A 69 Strategy Growth Capacity  Platform-based view – Global silica capacity – Regional-specific capacity expansion Adjacencies  Business acceleration in known market segments or near adjacent technologies  Technology / end market-based view  Target multiple acquisitions to broaden portfolio Market Expansion  Support growth acceleration in target markets


 
Investor Day 2018 | KEY TAKEAWAYS Creating unique additives that enable customers to improve productivity and differentiate their offerings Leveraging material science prowess and technical services to deliver growth acceleration Unlocking further value through relentless focus on commercial and operating excellence Expanding the size of addressable market through robust set of organic and inorganic growth investments 70


 
精炼技术 Tom Petti 总裁,精炼技术


 
Investor Day 2018 | Investing in high-growth markets: petrochemical feeds, cleaner fuels, and converting low-value, heavy oil to high-value products 2 Driving operating excellence to improve efficiency through business planning processes, manufacturing cost and flexibility; still early innings 4 Maintain market leadership position with commercial excellence, including new product development, value selling, and technical service 3 KEY MESSAGES 72 Broad, highly-differentiated product portfolio built on research and technical service leadership directed at the most challenging customer problems 1


 
Investor Day 2018 | REFINING TECHNOLOGIES SNAPSHOT 73 36% 31% 19% 14% By Region 61% 39% By Product2 2017 Sales 1 FY 2017 2 Sales include deconsolidated ART joint venture 3 Margins are as reported for total Catalysts Business Segment FCC Catalysts Hydroprocessing Catalysts FCC Additives Products Hydroprocessing Catalysts (HPC) FCC North America Emerging Regions Western Europe Developed Asia Sales1, 2 $1.2B Adj. Gross Margin1, 3 41% Adj. EBITDA Margin1, 3 38% Applications Production of:  Transportation fuels (gasoline, diesel, jet fuel)  Petrochemical feeds (to make plastics)  Cleaner burning fuels Upgrading of low-value oil (resid) Key Customers Global refining industry *Definitions of non-GAAP financial terms and reconciliations to the closest GAAP term are provided in the Appendix


 
Investor Day 2018 | ART and CLG ADVANCED REFINING TECHNOLOGIES (ART) JOINT VENTURE 74  Grace holds 50% interest in joint venture formed in 2001  Leverages technology expertise, world-class R&D, global manufacturing footprint, and a complete portfolio of HPC to meet the clean fuels challenges of today’s refiners  ART established exclusive partnership with CLG to sell catalysts to CLG’s licensees – 2013: hydrocracking and lubes catalysts agreement – 2017: fixed bed resid and ebullating bed resid catalysts agreement  Enables Grace to streamline HPC supply and improve technical service for refining customers by establishing ART as single point of contact for HPC needs  CLG licensing growth outpaces the market, driven by combination of superior process and ART catalyst technology 每个新的许可证通过循环 art催化剂销售 art


 
Investor Day 2018 | BREADTH OF TECHNOLOGY 75 FCC Catalysts FCC Additives Hydroprocessing Catalysts (HPC) Overview Crack the hydrocarbon chains in distilled crude oil to produce transportation fuels, such as gasoline and diesel fuels, and feeds for production of petrochemicals Used to reduce sulfur in gasoline, maximize propylene production, and reduce emissions of sulfur oxides, nitrogen oxides, and carbon monoxide from refinery FCC units Marketed through ART JV with Chevron, used in process reactors to upgrade heavy oils into lighter, more useful products, enabling less expensive feedstock usage in the petroleum refining process and to produce products that meet more stringent environmental regulations Brands MIDAS® • IMPACT® NEKTOR™ • GENESIS® ACHIEVE® D-PRISM® • GSR® • SURCA® OLEFINSMAX® • OLEFINSULTRA® DESOX® • DENOX® • XNOX® • CP®P ICR® • GR® • SMART • APART Market- leading Positions FCC MTO FCC Hydrocracking Ebullating Bed Resid Fixed Bed Resid Distillate Technology Leader Developing Position


 
Investor Day 2018 | G lo b al F o o tprin t Breadth of Portfolio FCC & HPC FCC Only HPC Only Note: size of bubble indicates approximate sales THE LEADER IN THE INDUSTRY 76 Grace solves a broad range of global customer needs  Broad range of FCC catalysts  FCC olefin additives  FCC environmental additives  FCC gasoline sulfur reduction  Methanol-to-Olefins (MTO) catalysts  Hydrocracking HPC  Fixed bed resid HPC  Ebullating bed resid HPC  Distillate HPC **Developing Grace Portfolio Competitive Landscape* Grace Footprint *Industry reports and management estimates Manufacturing Commercial U.S. North America Canada Western Europe Germany Middle East China F.S.U. Japan India Kuwait S.E. Asia UAE** China


 
Investor Day 2018 | STRENGTHS AND SUSTAINABLE COMPETITIVE ADVANTAGES 77 Industry-leading applications expertise Research leadership and innovation Flexible, global manufacturing network Leading market positions with close customer relationships SUSTAINABLE ADVANTAGES Customized solutions through intense technical customer interactions Broad portfolio of FCC and HPC technologies to address wide range of customer needs Infrastructure plus commercial and technical resources close to customers Deep relationship with HPC process licensor provides catalyst sales pull-through CORE STRENGTHS


 
Investor Day 2018 | VALUE CREATION IN THE FCC UNIT 78 Customized catalyst design and high- level technical support are unique capabilities to fine- tune product yields and create value Often, margins can be increased by $0.50-$1.50/BBL FCC Unit 1 BBL Oil Feed $60/BBL Petrochemical Feed (Propylene, Butylene) Gasoline + Diesel + Jet Fuel Low Value Oil Total Product Value = $70/BBL $75/BBL $40/BBL $85/BBL 1 Assumes 100,000 BBL/day processed FCC image courtesy of TechnipFMC and used with permission Refiner’s Uplift Margin: $10 per barrel $365M annually1 FCC catalyst design can improve profitability by more than $10M/Yr.


 
投资者日2018 通过加氢处理创造价值 79加氢处理单位 高值油: 低硫(


 
Investor Day 2018 | TOTAL ADDRESSABLE MARKET 80 Very well-positioned for long-term shift in demand Market Size 5-year Industry CAGR (2016-2021) FCC Catalysts $2.5B 2-3% Fuels-driven 1-2% Petrochemicals-driven 3-5% Hydroprocessing Catalysts $2.5B 5-6% Light Feed 3-5% Heavy Feed 8-10% $5B Market Sources: Wood Mackenzie, Products Markets Tool, Jan 2018; The Catalyst Group Resources, Intelligence Report, May 2016, Grace internal estimates


 
Investor Day 2018 | INVESTING TO CAPTURE GROWTH 81 3-5% 1-2% 5-6% Market Growth Hydroprocessing FCC Petrochemical Feeds Gasoline + Diesel Low Sulfur Products  Demand driven by plastics and other petrochemical growth  New catalyst development targeting propylene yields  Demand outpaces growth of transportation fuels  Fuels demand driven by developing economies  Flat-to-declining in OECD  Demand predicted to peak between 2030-2050*  Tightening gasoline and diesel regulations in developing world driving growth  More stringent marine fuel sulfur requirements effective 2020  Resid feedstock processing growing fastest due to disappearing uses for high-sulfur heavy oil Strategy Invest in clean fuels growth through ART JV Maintain market leadership, focus on operating excellence Invest in products 为了最大限度地提高 石化原料的产量, 转移投资以获取更高的增长段 *根据行业报告的元分析


 
Investor Day 2018 | Focus on operating excellence to improve cost position and flexibility 4 Invest in clean fuels growth through ART JV 2 REFINING TECHNOLOGIES STRATEGIC INITIATIVES Invest in products to maximize yield of petrochemical feeds 1 82 Maintain market leadership position 2 3


 
Investor Day 2018 | MAXIMIZE YIELD OF PETROCHEMICAL FEEDS 83 Expanding portfolio to capture higher market growth  Continue to develop FCC catalyst technologies to further maximize yield of petrochemical feeds: propylene and butylene – Introduced OlefinsUltra® MZ as an additive solution; highest propylene yield per pound – Developed catalyst systems for new FCC units designed specifically for maximum propylene – Developed GBA™ butylene selective catalysts and additives  Continue to build out technical service capabilities to offer high levels of expertise, particularly in emerging regions, to optimize unit performance  Invest to further penetrate Methanol-to-Olefins (MTO) segment in China for ethylene and propylene production – Adding R&D, sales, and technical service resources – Using MTO pilot plant capabilities to continue new product development and maintain technology edge MTO is a new FCC-like process to convert coal-derived methanol to petrochemical feeds (olefins) What is MTO? The market has grown from 0 to 18 units in China since 2010, creating a $120M/Yr.MTO催化剂市场机会


 
Investor Day 2018 | Solution Employed extensive R&D resources to screen potential catalyst solutions and model predicted performance in the Hellenic FCC unit Zeroed in on latest resid upgrading FCC technology — MIDAS® — and highest activity additive for propylene production — OlefinsUltra® MZ Worked closely with Hellenic operating team to set clear targets and ensure smooth transition to new catalyst and additive system Catalyst system decreased low-value product yields and substantially increased propylene production Results Challenge Hellenic Petroleum modernized their refinery to process increased propylene downstream of FCC unit Hellenic sought to improve profitability by producing more propylene and less low- value products in the FCC unit Demonstrated value of $0.60/BBL plus credit for higher octane gasoline (~$22M/Yr.*) CASE STUDY1: MAXIMIZING YIELD OF PETROCHEMICAL FEEDS 84 Designing solutions to maximize customer profitability 1 S. Kyriakou, et al.石油技术季刊,Q3 2017 *100,000 bbl/日单位


 
Investor Day 2018 | Solution Invented and commercialized a high-performing MTO catalyst through focused R&D, leveraging FCC knowledge Adapted Grace China-based manufacturing assets to produce the catalyst at a competitive cost position Conducted a smooth catalyst trial to demonstrate catalyst benefit while also providing premium technical service Delivered increased ethylene yield, reduced low-value byproducts, and decreased catalyst consumption and fouling Results Challenge Customer’s MTO unit was using a competitor’s catalyst Customer sought higher operating rates, increased ethylene yields, lower byproducts, and less downstream fouling Increased MTO unit profits by $16M/Yr. vs. competitive catalyst CASE STUDY: ALTERNATE ROUTE TO PETROCHEMICAL FEEDS 85 Leveraging FCC know-how to penetrate new petrochemical feed segment


 
Investor Day 2018 | INVEST IN CLEAN FUELS GROWTH THROUGH ART JV 86  Leveraging Chevron refining and R&D expertise to accelerate product development to maintain leading catalyst technology and technical support  Constructing a world-scale HPC plant in Lake Charles, LA, to meet customer and licensor demand  Extending Grace Value Model initiatives to ART – Improving cost position and product quality via Grace Manufacturing System – Deploying commercial excellence: strategic account planning and value selling  Optimizing customer portfolio to continue to improve profitability  Redesigning technical service and increasing headcount in close proximity to customers ART is well-positioned to capture clean fuels market opportunity


 
Investor Day 2018 | Challenge Customer was using an ART catalyst to produce low-sulfur products Customer sought to process heavier, higher- sulfur, and cheaper feedstocks to improve refinery profitability CASE STUDY: IMPROVING CLEAN FUEL ECONOMICS 87 Aligned products and services with customer goals Solution Employed R&D pilot plant capabilities to develop a new hydroprocessing catalyst to meet customer objectives Supported catalyst trial with high level of technical service New catalyst increased conversion and higher activity enabled reduced usage rates Results Improved run lengths by limiting downstream fouling Improved customer economics by $27M+/Yr. 189 216 [价值] 9 21 改进的 产生 较低的 成本 粗 增量 催化剂 花费 值($M/yr.)


 
Investor Day 2018 | MAINTAIN MARKET LEADERSHIP POSITION 88  Technical service and R&D experts collaborate with refiners to develop customized solutions to address their biggest challenges – Using customer segmentation to direct R&D activities – Offered new line of catalysts to address increasing proportion of shale oil in North American crude – Developed ACHIEVE® 400 Gold to maximize profitability through higher octane yield  Focused on commercial excellence activities: strategic account planning and value selling – Invested in training for entire commercial organization and redesigned management systems – Improved FCC customer retention by 8%  Investing in a global team of FCC subject matter experts to provide intensive operational customer support Commercial excellence initiatives improve growth and profitability


 
Investor Day 2018 | FCC CATALYSTS PRICE TREND 89 Long history of FCC pricing and product reformulations to expand margins  FCC margins increased through a combination of: – Improved pricing in line with technology advancements – Product reformulations (changes to the product to deliver more customer value and capture more margin)  History of improving margin in changing environments – 2005-2008: Inflationary period before financial crisis – 2011: Chinese rare earth quotas resulted in hyper- inflation, which was passed through to customers  Customers continue to demand products that deliver high value – Heavy, low-value oil (resid) upgrading – Better ability to withstand contaminant metals in feeds – Higher and higher propylene yields – Environmental compliance  Backdrop of inflation in 2017-2018 – Support value selling and price negotiations with customers 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Pri c e I nde x (2005 Ba s e ) Inflationary Period Rare Earth Hyper-Inflation; Surcharges Deflationary Period Inflationary Period


 
Investor Day 2018 | MANUFACTURING EXCELLENCE 90 Improving cost position and flexibility  Investing in advanced process controls to modernize and drive productivity  Optimizing our global manufacturing footprint – Targeted investments to lower costs and increase proximity to high-growth regions – Increasing manufacturing flexibility to produce latest generation catalysts – Network production capacity to follow market growth  Redesigning our supply/demand planning using Integrated Business Management processes and practices  Driving improved plant performance via implementation of Grace Manufacturing System 2016 – 2021 Capacity Consistent with market growth Flexibility Proximity to Customers Product Cost Manufacturing Strategy


 
Investor Day 2018 | KEY TAKEAWAYS 91 Investing in technology to capture higher-growth segments: petrochemical feeds, clean fuels, and low-value oil processing Delivering strong growth in clean fuels from ART Joint Venture Strengthening business processes and lowering manufacturing costs to maintain market leadership position Optimizing product value through innovation and application expertise


 
财务概览:高级副总裁兼首席财务官汤姆·布拉泽


 
Investor Day 2018 | KEY MESSAGES 93 Maintain solid, flexible balance sheet through strong, consistent cash flow generation 2 Maximize long-term shareholder value 4 Deploy cash through disciplined capital allocation strategy, funding high-return capex and M&A, and returns to shareholders 3 Strong path to organic growth and profit improvement 1


 
投资者日2018 三年财务业绩 94$1.6$1.6$1.7$0.4$0.4 $0.5 2015 2016 2017 [Val UE] 31% 31% 2015 2016 2017 Revenue ($B) Adj. EBITDA Margin ART Joint Venture Grace * Definitions of non-GAAP financial terms and reconciliations to the closest GAAP term are provided in the Appendix 3% 2-Yr CAGR 9% 2016-2017 + 100bps 2015-2017 Reported amounts for 2015 for Adj. EBTDA Margin and Adj. EPS adjusted to exclude the effect of discontinued operations accounting which included $38M of costs that have either been 转到GCP或取消$2.0$2.0 $2.2 [Val UE] $3.10$3.40 $2015 2016 2017 adj.EPS +16%的2年CAGR 10%2016-2017


 
Investor Day 2018 | PEER PROFITABILITY COMPARISON 95 Top quartile specialty chemical and materials business Source: Capital IQ data for peers as of 2/20/18; Grace margins based on FY2017A 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% C G D H A B E K I W.R. Grace J F TTM Gross Margin 0% 5% 10% 15% 20% 25% 30% A B C D E F G H i J K W.R. GRACE TTM EBIT边距 Grace 对等点


 
Investor Day 2018 | STRONG CASH GENERATOR 96 5.5 5.2 5.6 2015 2016 2017 Adj. FCF ($M) 3% 2-Year CAGR Working Capital Turns 257 236 274 2015 2016 2017 * Definitions of non-GAAP financial terms and reconciliations to the closest GAAP term are provided in the Appendix 2015 2016 2017 2018E Cash Tax Rate Adj ETR Low Cash Tax Rate Strong Margins, well managed Working Capital and Capex low Cash 税收为2026%、36%、34%、32%、27%、27%。现金税率~15%


 
Investor Day 2018 | U.S. TAX REFORM 97 U.S. tax reform extends favorable low cash taxes to 2026  U.S. tax reform enables greater competitiveness through lower U.S. tax rate, incentives for investment and global mobility of cash  4Q17 provisional charge of $143 million − Includes repatriation tax, write-down of U.S. deferred assets and implementation of territorial tax system − Represents provisional estimate. Subject to adjustment in 2018  Enables use of our strong global balance sheet to fund growth and achieve capital allocation priorities more efficiently  Impacts incorporated into our 2018 outlook − Adjusted ETR 27%-28%, excluding incremental anti-base erosion tax due to NOLs − Our low cash tax rate of 12%-15% extended by 2 years to 2026 *Definitions of 附录 提供了非公认会计原则的财务条款和与最接近的公认会计原则条款的调节。


 
Investor Day 2018 | DISCIPLINED CAPITAL ALLOCATION 98 Dividends Share Repurchases  ~8-10% of sales  Our highest return opportunities  Typical returns 20-30% IRR on growth/productivity capex  Bolt-on acquisitions  Typical returns >20% IRR Capital Investments Acquisitions  Target 2.0–3.0x Net Leverage  Growth rate > earnings growth  Programmatic with flexibility to be opportunistic Reinvest in the Business Maintain Target Net Leverage Return Cash to Shareholders Strong Cash Flows


 
Investor Day 2018 | CAPITAL ALLOCATION HISTORY AND PRIORITIES 99 Actions aligned with capital allocation model while staying true to leverage intent Capital and R&D Investments  Capex ~$250M; ~8% of sales  ~40% growth projects…increasing capacity  R&D ~$100M, or ~3% of sales  BASF polyolefin catalysts business (SC)  Evonik silica product line (MT)  Huber de-foamer product line (MT)  Announced Single Site Catalyst acquisition (SC)  2-year average return of cash to shareholders 69% of AFCF  Dividend payout of $93M  Share repurchase of $260M Acquisitions 26% Capex and R&D Investments 37% Dividends 10% Share Buybacks 27% 2016 & 2017 ~$960M Acquisitions Dividends and Share Buybacks 2-Year Average Net Leverage 2.8x Adj. EBIT ROIC 24% 2-Year Performance


 
Investor Day 2018 | CAPITAL INVESTMENT 2017 – 20211 100  We invest where the growth is, leveraging our existing global manufacturing footprint  We time our investments with customer demand growth and investments  Refining Technologies: catalysts manufacturing in the Middle East provides first-mover advantage in developing markets with low-cost capacity  Specialty Catalysts: U.S. PP catalyst expansion; global manufacturing footprint optimization  Materials Technologies: manufacturing network capacity expansion  ART JV: significant U.S. expansion in hydroprocessing Capital Investment Highlights 1 Amounts exclude ART JV capacity expansion funded through the joint venture. $0 $50 $100 $150 $200 $250 2017 2018 2019 2020 2021 Growth and Productivity Maintenance and Infrastructure Growth investments generate ~$250M in revenue growth by 2021


 
Investor Day 2018 | THOUGHTFUL DISCIPLINED M&A APPROACH 101 Active pipeline for strategic acquisitions will continue to create value Target Profile and Strategic Fit Expands technology, R&D and/or commercial capabilities Leading market positions to accelerate growth Attractive sales and earnings profiles Enhances and/or leverages manufacturing capabilities Synergy Highly synergistic Returns focused on cost and capital savings 利用现有的全球基础设施 销售/商业协同-所有向上的 返回 >风险调整的障碍率 强ROIC EPS增长


 
Investor Day 2018 | M&A SCORECARD 102 M&A Filters UNIPOL PP® (Dow) LYNX® (BASF) Polyolefin Catalysts and Components (Albemarle) 2013 2016 2018E Growth/Profitability High growth; Good margins Growth opportunity; Low asset utilization High growth; Good margins Synergies 4x EBITDA 4x EBITDA 3x EBITDA Commercial Fit PP licensing/catalysts PE/PP catalysts Single-site PE catalysts Technology Fit Next-gen PP catalysts LYNX® Ziegler-Natta tech Single-site catalyst R&D and technical capabilities Manufacturing Fit Aligned with know-how Great assets; Room for growth Enhanced manufacturing capabilities and capital avoidance EPS Accretion In first full year In first full year In first full year Enhancing growth, technology and manufacturing capabilities with value accretive M&A


 
Investor Day 2018 | CAPITAL STRUCTURE 103 Summary of Leverage Profile Pro-forma Capital Structure Post-Acquisition  Raising $950 in new Term Loan B (TLB)  To refinance current TLB and fund acquisition  Priced and allocated on Feb. 23, expected to fund at acquisition closing  Benefits of new TLB:  Extends maturity to 2025  Reduces TLB borrowing rate from L+200 to L+175  Strong credit profile (Ba2/BB)  Clear path to target leverage range 1 Using Adj. EBITDA FY2017 actuals 2 Total liquidity is cash plus available amount under US revolving credit facility ($M) Maturity 12/31/2017 Leverage1 Cash and cash equivalents $ 153 Term Loan B 2021 498 5.125% Senior Notes 2021 694 5.625% Senior Notes 2024 297 Other borrowings 55 债务总额$1,544,2.9x 净债务$1,391,2.6x 总流动性2$416


 
Investor Day 2018 | SIGNIFICANT LIQUIDITY TO SUPPORT GROWTH 104 Capacity to fund $1B in additional investments through 2021 2.6x 1.8x YE 2017 ALB Acq Operating Cash Flow Capex Dividends & Share Buy Back YE 2021E Net Debt/ A d ju s ted E BITD A Target Leverage 2.0x – 3.0x $1 billion available capacity for additional investment


 
Investor Day 2018 | REAFFIRMING 2018 GUIDANCE / 2021 FINANCIAL FRAMEWORK1 2018 Outlook 2016-2021 Framework Total Sales CAGR 8%-10% 6%-8% Organic Sales CAGR 4%-6% 4%-6% Adj. EBIT CAGR 6%-9% 6%-8% Adj. EPS CAGR 9%-12% >10% Adj. FCF $210-250M >$1B over 5 years 2018 Guidance Assumptions  Anticipated polyolefin catalysts acquisition is completed by March 31, 2018 drives 4% growth  EBIT growth includes overcoming headwind of $25M BI insurance proceeds from 2017 customer outage 2016-2021 Financial Framework Assumptions  5-year business segment CAGRs: ̶ Refining Technologies: 3%-4% ̶ Specialty Catalysts: 6%-8% ̶ Materials Technologies: 3%-4%  Adj. effective tax rate2 between 27%-28%  Adj. cash tax rate 12%-15% 105 1 Includes single site catalyst business acquisition with close date of March 31 2 AETR is post tax reform 2018 - 2021


 
Investor Day 2018 | KEY TAKEAWAYS 106 Focused and clear path to organic revenue growth and margin expansion Executing on core operating processes to support profitable growth Cash flow generation supports organic and inorganic investment while maintaining strong balance sheet Disciplined capital allocation strategy; funding capital investments, M&A and returns to shareholders


 
主席兼首席执行官


 
Investor Day 2018 | INVESTMENT THESIS 108  Leading-edge innovation and process know-how  Strong, sustainable high margins  Customer intimacy, long-term partnerships Aligned to Strong Macro Trends and Business Drivers Strong FCF and proven track record of driving value through acquisitions 2016-2021 Financial Framework 6%-8% Total Sales Growth CAGR 4%-6% Organic Sales Growth CAGR 6%-8% Adj. EBITDA CAGR >10% Adj.EPS CAGR >$1B 在5年内 adj.fcf


 
问答


 
附录


 
Investor Day 2018 | GLOSSARY 111 ART Advanced Refining Technologies MgCl2 Magnesium Chloride BBL Barrel of oil MT Materials Technologies (Grace operating segment) cGMP Current Good Manufacturing Practice MTO Methanol-to-Olefins EHSS Environment, Health, Safety, and Security OECD Organisation for Economic Co-operation and Development EMEA Europe, Middle East, and Africa OEE Overall equipment effectiveness FCC Fluid Catalytic Cracking PE Polyethylene GMS Grace Manufacturing System PP Polypropylene GVM Grace Value Model PPR PP random co-polymeride HCPP High-crystallinity polypropylene PSM Process safety management HPC Hydroprocessing catalysts rTPO Reactor grade thermoplastic polyolefins IBM Integrated Business Management SC Specialty Catalysts (operating segment) ISBL Inside battery limits SSC Single-site catalysts MAO Methylaluminoxane TMO Transformation Management Office MBDOE Million barrels per day of oil equivalent VOC Volatile organic compounds MCN Metallocene ZN Ziegler-Natta


 
投资者日2018 技术部门被固化,并进入制药 应用程序。在2016分离之前,建筑产品部门通过新技术和螺栓式收购扩大了规模.GRACE扩展了它的地理平台,将新兴地区的销售额从占总销售额的21%提高到超过38%。弗雷德与董事会一起指导公司完成了历史上最复杂和最具争议的第11章重组之一,于2014年月3结束。根据重组,所有待决和未来的与石棉有关的索赔都转给独立信托,所有非石棉的债权人都得到全额偿付。弗雷德从莫根塔勒私人股本合伙人那里来到格雷斯,他是该公司的合伙人。Previously, he was President and CEO of ICG Commerce. At AlliedSignal, Inc. (now Honeywell) from 1993 to 2000, he held leadership roles in general management, business development, and finance in the company's specialty chemical, polymer, chemical intermediaries, and fibers businesses, including service as Vice President and General Manager of the performance fibers business. Fred began his career at General Electric (GE), where he spent 12 years in financial management positions at five business units.He completed GE's Financial Management Training Program and its benchmark General Management Course. Fred graduated magna cum laude with a BS degree in Finance from the State University of New York at Oswego. He has served since 2008 as an independent director of NVR, one of the largest home builders in the United States. Fred Festa is the eighth chief executive to lead the company since its founding in 1854.He joined Grace as President and Chief Operating Officer in November 2003, became Chief Executive Officer in June 2005, and was elected Chairman of the Board in January 2008. Through Fred's leadership, Grace has enhanced its standing as a premier global specialty chemicals and materials company with strong franchises in large global markets. Fred has led the transformation of Grace into a fully- integrated global operating company.During his tenure, revenue increased 65 percent and net sales increased from $1.8 billion in 2003 to $3.1 billion in 2015. Adjusted EBITDA expanded from $252 million to $750 million, while Adjusted Free Cash Flow rose from $53 million to $440 million. In 2015-16, Fred led the separation of Grace into two independent public companies that are expected to benefit from improved strategic focus, simplified operating structures, and more efficient capital allocation.这一分离是通过格蕾丝建筑公司(GRACE‘s Construction Products分部和Darex包装技术公司(Darex Package Technologies)的免税分拆而完成的,后者是GCP应用技术公司(GCP应用技术公司)。(纽约证券交易所代码:GCP)。GRACE继续经营催化技术和材料技术业务(不包括Darex),在弗雷德的领导下完成了23项收购和7项剥离。The company's portfolio was rebalanced, expanding the breadth of the catalysts business and increasing polypropylene catalysts revenue more than $200 million in less than five years. The silica-related Materials 112 BIOGRAPHIES Fred Festa CHAIRMAN AND CHIEF EXECUTIVE OFFICER


 
投资者日(2018),在那里他领导了部门管理实践的转变。He also served as a member of the President's Management Council. Before entering public service in 2005, Hudson worked at Dell Inc., where he held general management and financial leadership positions at the company's headquarters in Austin, Texas and in China. From 2002 to 2005, Hudson served as a general manager for Dell in China, leading a $500 million business unit through a period of double-digit sales growth, triple-digit earnings growth and significant operational change.Before joining Dell in 1997, he worked at AlliedSignal, Inc. (now Honeywell), Emerson Electric Co. and Arthur Andersen & Co. Hudson earned an MBA at the Kellogg School of Management at Northwestern University and a Bachelor's degree at Baylor University. He is a board member of Madison Industries, a Chicago-based industrial holding company, and a former board member of KIPP DC, a public charter school operator in Washington, D.C. As Hudson La Force公司总裁首席运营官负责格雷斯公司的催化技术和材料业务部门以及格雷斯公司的全球制造、 和供应链业务。作为首席运营官,哈德逊主要专注于安全、销售增长、制造业卓越和资本投资。他于2016年2月被任命为这一职务,并于2017年11月当选为格蕾丝董事会成员。哈德逊于2008加入格雷斯担任高级副总裁兼首席财务总监。In that role, he focused on improving the company's profitability, cash flow, and return on invested capital. During his tenure as CFO, gross margins increased eight percentage points, Adjusted EBITDA margins increased 11 percentage points, adjusted free cash flow increased nearly three times, and adjusted return on invested capital increased 11 percentage points.Hudson was deeply involved in Grace's internal transformation into a fully-integrated global operating company and its external transformation into two industry- leading public companies in February 2016. Prior to joining Grace, Hudson served as Chief Operating Officer and Senior Counselor to the Secretary at the U.S. Department of Education 113 BIOGRAPHIES Hudson La Force PRESIDENT AND CHIEF OPERATING OFFICER


 
投资者日2018(2016年初),托马斯·布拉泽被任命为高级副总裁兼首席财务官。He is a member of Grace's leadership team and responsible for Grace's global financial management and information technology functions. Tom is a seasoned finance professional and proven leader with strong specialty chemical industry experience with global companies. Before joining Grace, he was President of Arysta LifeScience North America, LLC, a global agricultural chemical and life science business, where he also served for 10 years as Chief Financial Officer. Previously he held business development and financial leadership responsibilities with Honeywell and audit leadership roles at Price Waterhouse. Tom earned an MBA at the Columbia University and a Bachelor's degree in Accounting at Montclair State University. 114 BIOGRAPHIES Tom Blaser SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER


 
投资者日2018 Al在化学工业的职业生涯长达27年,其中22个是在纳科化学公司(一家全球性的水、能源和空气改进解决方案和服务供应商)工作。After successful roles throughout Nalco’s commercial organization, he rose to senior leadership in several divisions in Nalco and also served as Senior Vice President and General Manager of Ecolab’s traditional core business, the Food & Beverage North America division, following the acquisition of Nalco. Currently, Al serves on the Board of Directors for the American Fuel and Petrochemical Manufacturers (AFPM) and represents Grace on the Board of the Maryland Chamber of Commerce.他还完成了霍华德县(马里兰州)领导方案,在美国陆军开始了他的职业生涯,在第25步兵师第65工兵营担任营训练干事、连执行干事和将军助理德罗巴营。He graduated near the top of his class at West Point with a Bachelor of Science degree in General Engineering/Chemistry, and was first in his class at the United States Army Engineer School. He is also a graduate of the Kellogg School of Management’s Advanced Executive Program. Since joining Grace in 2104, Al Beninati has led all three of the company’s business segments.He is now responsible for Specialty Catalysts, the global leader in polyolefin catalysts and licensing, with the world’s broadest portfolio of polypropylene (PP) and polyethylene (PE) catalyst technologies. Al also serves as President, Grace Asia Pacific and the executive sponsor of the Grace Integrated Business Management initiative, which is focused on optimizing the company’s Sales and Operations Planning. Under his leadership, the Specialty Catalysts segment 已经发展成为GRACE的一个重要的增长驱动力,许多植物的运行水平都达到了创纪录的水平,以满足强劲的需求。在2018,Al将再次领导一个 重大收购整合,因为格雷斯吸收阿尔贝马勒的领先单位催化剂业务。在2016,他成功地整合了LynxPP和PE催化剂业务,于同年从 BASF收购。Al continues to expand Specialty Catalyst’s UNIPOL® PP Process Technology and Licensing offering, a business Grace acquired from Dow in 2013. Prior to joining Grace, he was Vice President, Municipal Water Treatment at Univar, a leading distributor of chemistry and related products and services. 115 BIOGRAPHIES Al Beninati PRESIDENT, SPECIALTY CATALYSTS


 
Investor Day 2018 | 116 BIOGRAPHIES Tom Petti PRESIDENT, REFINING TECHNOLOGIES FCC Research & Development, Technical Service, Sales, and Marketing, before his promotion to General Manager of the Americas and Global Marketing Director for Specialty Catalysts. In 2006, Tom left Grace temporarily to found and lead Vandelay Management, LLC, a strategic development consultancy serving the specialty chemicals industry. Tom rejoined Grace in 2012 as Vice President, Strategic Planning.He led and advanced Grace’s strategic planning process, which identified opportunities for the company’s core and growth programs, as well as innovative applications for catalysts, materials, and construction businesses based on Grace’s materials science capabilities. Beginning in 2013, Tom served two years as President, Grace Construction Products.在他的领导下,建筑产品业务增长,盈利能力显著提高。This business was separated from Grace in 2016 to become part of a new public company called GCP Applied Technologies Inc., a global leader in specialty construction chemicals and building systems. Tom earned a Bachelor of Science in Chemical Engineering from the University of Maryland, an MBA from Duke University, and a Ph.D. in Chemical Engineering from the University of Delaware. Since October 2015, Tom Petti has LED GRACE公司的炼油技术(Br)业务,包括流体催化裂化(FCC)催化剂和添加剂、甲醇到烯烃(MTO)催化剂,以及通过高级精炼技术(ART)加氢处理 催化剂,这是格雷斯与雪佛龙(Chevron)的合资企业。汤姆是ART的董事会成员。格雷斯是催化裂化和炼油工业加氢催化剂的全球领先者,为世界上许多最大和公认的石油和炼油公司服务。The Refining Technologies business delivers significant value to its refinery customers through product performance, environmental benefits, and operational technical support provided by Grace’s technical experts. Under Tom’s leadership, the business has adapted to capture opportunities in the fastest-growing segments in FCC applications, specifically, global production of petrochemical feedstocks and heavy feed bottom-of-the-barrel processing.ART在生产清洁燃烧燃料的加氢处理方面取得了创纪录的业绩,公司成功地扩展到了新兴的MTO催化剂(br}段。 Tom与格雷斯的任期始于1992,当时他加入了格蕾丝的研究中心从事工艺开发。他后来担任


 
投资者日2018美国和全球营销、运营、研发、制造和全球 项目管理。 Sandra以实施经过验证的方法来转换 业务而闻名。她的求知欲、毅力和深刻的分析能力使她能够迅速评估、综合和简化复杂的市场和商业挑战,以便制定可行的计划。她的协作、基于优势的方法将她的团队的历史知识连接到了一个以前瞻性为中心的愿景上。她创造了清晰和可采取行动的战略解决方案,同时与 组织接触并激励其取得成果。从竞争性体育中学到的纪律、复原力和团队精神继续是桑德拉生活的一个组成部分,也是使她成为一名领导者的因素。She believes a culture of excellence is key to creating a high-performance organization. Sandra earned a Bachelor’s degree in Mechanical Engineering from the University of Wisconsin-Madison and an MBA in Marketing, Finance, and Business Strategy from Northwestern University. Since May 2017, Sandra Wisniewski has led Grace Materials Technologies, the business segment which produces and sells specialty materials, including silica-based and silica-alumina-based products used in a broad array of consumer, pharmaceutical, chemical process and coatings. Sandra brings to Grace a unique perspective on value creation and wealth of experience in the healthcare of pharmaceutical industries. Prior to joining Grace, she was President and Chief Executive Officer for SunTech Medical, an international blood pressure technology company.Previously, she served as a General Manager and Vice President at Sanofi, a global healthcare technology company. The first 25 years of her career were with Baxter International where she held several leadership positions in general management, sales, marketing, R&D, global project management, manufacturing, and operations.As Global Marketing Vice President for Intravenous Solutions, she led a successful revitalization of the company’s $1 billion heritage business by implementing centralized global portfolio management. Sandra’s record of generating sustainable growth is built on her diverse background including general management, sales leadership, 117 BIOGRAPHIES Sandra Wisniewski PRESIDENT, MATERIALS TECHNOLOGIES


 
Investor Day 2018 | DEFINITIONS AND RECONCILIATIONS OF NON-GAAP MEASURES 118 Non-GAAP Financial Terms Adjusted EBIT means income from continuing operations attributable to W. R. Grace & Co. shareholders adjusted for interest income and expense; income taxes; costs related to legacy product, environmental and other claims; restructuring and repositioning expenses and asset impairments; pension costs other than service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits; income and expense items related to divested businesses, product lines, and certain other investments; gains and losses on sales of businesses, product lines, and certain other investments; third-party acquisition-related costs and the amortization of acquired inventory fair value adjustment; and certain other items that are not representative of underlying trends. Adjusted EBITDA means Adjusted EBIT adjusted for depreciation and amortization. Adjusted EBIT Return On Invested Capital means Adjusted EBIT (on a trailing four quarters basis) divided by the sum of net working capital, properties and equipment and certain other assets and liabilities. Adjusted Gross Margin means gross margin adjusted for pension-related costs included in cost of goods sold and the amortization of acquired inventory fair value adjustment. Adjusted Earnings Per Share (Adjusted EPS) means diluted EPS from continuing operations adjusted for costs related to legacy product, environmental and other claims; restructuring and repositioning expenses and asset impairments; pension costs other than service and interest costs, expected returns on plan assets, and amortization of prior service costs/credits; income and expense items related to divested businesses, product lines, and certain other investments; gains and losses on sales of businesses, product lines, and certain other investments; third-party acquisition-related costs and the amortization of acquired inventory fair value adjustment; certain other items that are not representative of underlying trends; and certain discrete tax items. Adjusted ETR means the effective tax rate on Adjusted EBIT less net interest expense, plus or minus certain discrete items (such as changes in tax laws and APB 23 reserves) and the incremental temporary increase to anti-base erosion taxes that results from our U.S. net operating losses. Adjusted Free Cash Flow means net cash provided by or used for operating activities from continuing operations minus capital expenditures plus cash f lows related to legacy product, environmental and other claims; cash paid for restructuring and repositioning; capital expenditures related to repositioning; cash paid for third-party acquisition-related costs; and accelerated payments under defined benefit pension arrangements. Adjusted EBIT, Adjusted EBITDA, Adjusted EBIT Return On Invested Capital, Adjusted Gross Margin, Adjusted EPS and Adjusted Free Cash Flow do 不代表美国公认会计原则所定义的收入或流动性措施 ,也不应被视为作为GRACE业绩或流动性指标的替代措施。 格雷斯使用调整后的EBIT作为重大商业决策和确定某些奖励报酬的业绩衡量标准。Grace uses Adjusted EBIT as a performance measure because it provides improved period-to-period comparability for decision making and compensation purposes, and because it better measures the ongoing earnings results of its strategic and operating decisions by excluding the earnings effects of the legacy product, environmental and other claims; restructuring and repositioning activit ies; divested businesses; the effects of acquisitions; and certain other items that are not representative of underlying trends.GRACE使用调整后的EBITDA、调整后的EBIT投资资本回报率、调整后的毛利率和调整后的每股收益作为业绩衡量标准,并可使用这些 措施确定某些激励薪酬。GRACE利用调整后的EBIT投资资本回报率来做出经营和投资决策,并平衡 业务的增长和盈利能力。GRACE利用调整后的自由现金流量作为一项流动性措施,以评估其产生现金以支持其正在进行的业务活动、投资于其业务和向股东提供 资本的回报的能力。GRACE还使用调整后的自由现金流量作为确定某些激励薪酬的绩效指标。Grace is unable without unreasonable efforts to estimate the annual mark-to-market pension adjustment or 2017 net income, and without the availability of this significant information, Grace is unable to provide reconciliations for the forward-looking information set forth in the 2017 outlook, above. These measures are provided to investors and others to improve the period-to-period comparability and peer-to-peer comparability of Grace’s financial results, and to ensure that investors 其他的 理解GRACE用于评估其业务绩效的信息。它们将格蕾丝目前业务基础的经营结果与格蕾丝遗留产品、环境索赔和其他索赔、重组和重新定位活动、被剥离的企业和上文讨论的其他项目的成本区分开来。These measures may have material limitations due to the exclusion or inclusion of amounts that are included or excluded, respectively, in the most directly comparable measures calculated and presented in accordance with U.S. GAAP and thus investors and others should review carefully the financial results calculated in accordance with U.S. GAAP.


 
Investor Day 2018 | DEFINITIONS AND RECONCILIATIONS OF NON-GAAP MEASURES 119 Adjusted EBIT by Operating Segment: 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 Catalysts Technologies segment operating income $ 367.8 $ 78.3 $ 87.5 $ 94.3 $ 107.7 $ 81.2 $ 101.3 $ 103.6 $ 109.3 $ 395.4 Materials Technologies segment operating income 104.0 20.6 28.0 26.4 29.0 24.8 24.2 26.4 25.2 100.6 Corporate costs (59.4 ) (13.2 ) (16.3 ) (14.9 ) (15.0 ) (16.1 ) (18.3 ) (18.5 ) (16.1 ) (69.0 ) Gain on curtailment of postretirement plans related to current businesses 0.2 — — — 0.2 — — — — — Certain pension costs(B) (12.3 ) (3.1 ) (3.1 ) (3.1 ) (3.0 ) (3.1 ) (3.2 ) (3.4 ) (3.3 ) (13.0 ) Adjusted EBIT 400.3 82.6 96.1 102.7 118.9 86.8 104.0 108.1 115.1 414.0 (Costs) benefit related to legacy product, environmental and other claims (35.4 ) (4.4 ) (6.7 ) (13.1 ) (11.2 ) (2.1 ) (14.9 ) (8.5 ) (5.3 ) (30.8 ) Restructuring and repositioning expenses (38.6 ) (13.6 ) (9.4 ) (5.6 ) (10.0 ) (2.3 ) (5.4 ) (9.3 ) (9.7 ) (26.7 ) Accounts receivable reserve—Venezuela — — — — — — — (10.0 ) — (10.0 ) Third-party acquisition-related costs (2.5 ) — (2.5 ) — — — — (0.4 ) (2.5 ) (2.9 ) Amortization of acquired inventory fair value adjustment (8.0 ) — — (4.1 ) (3.9 ) — — — — — Pension MTM adjustment and other related costs, net (60.3 ) 0.2 0.7 0.2 (61.4 ) (1.9 ) — — (49.2 ) (51.1 ) Gain on sale of product line 1.7 — 0.7 — 1.0 — — (0.4 ) 0.4 — Income and expense items related to divested businesses 0.1 (0.3 ) 0.1 (0.1 ) 0.4 (0.3 ) (0.7 ) (0.3 ) (1.0 ) (2.3 ) Gain on curtailment of postretirement plans related to divested businesses 0.3 — — — 0.3 — — — — — Loss on early extinguishment of debt (11.1 ) (11.1 ) — — — — — — — — Interest expense, net (80.5 ) (21.8 ) (19.4 ) (19.4 ) (19.9 ) (19.3 ) (19.5 ) (20.2 ) (19.5 ) (78.5 ) (Provision for) benefit from income taxes (59.0 ) (21.2 ) (21.5 ) (19.4 ) 3.1 (18.0 ) (19.6 ) (11.6 ) (151.3 ) (200.5 ) Income (loss) from continuing operations attributable to W. R. Grace & Co. shareholders $ 107.0 $ 10.4 $ 38.1 $ 41.2 $ 17.3 $ 42.9 $ 43.9 $47.4$(123.0)$11.2


 
Investor Day 2018 | DEFINITIONS AND RECONCILIATIONS OF NON-GAAP MEASURES 120 Adjusted Free Cash Flow: Q4 2016 Q4 2017 Net cash provided by (used for) operating activities 267.5 319.2 Capital expenditures (116.9 ) (125.2 ) Free Cash Flow 150.6 194.0 Cash paid for legacy product, environmental and other claims 24.6 54.5 Cash paid for restructuring 16.0 13.8 Cash paid for repositioning 35.5 11.0 Cash paid for taxes related to repositioning 5.0 — Cash paid for third-party acquisition-related costs 2.3 0.7 Capital expenditures related to repositioning 2.0 — Adjusted Free Cash Flow 236.0 274.0 Calculation of Adjusted EBIT Return On Invested Capital (trailing four quarters): Q4 2016 Q4 2017 Adjusted EBIT 400.3 414.0 Invested Capital: Trade accounts receivable 273.9 285.2 Inventories 228.0 230.9 Accounts payable (195.4 ) (210.3 ) 306.5 305.8 Other current assets (excluding income taxes) 32.0 42.1 Properties and equipment, net 729.6 799.1 Goodwill 394.2 402.4 Technology and other intangible assets, net 269.1 255.4 Investment in unconsolidated affiliate 117.6 125.9 Other assets (excluding capitalized financing fees) 34.9 37.4 Other current liabilities (excluding income taxes, legacy environmental matters, accrued interest, and restructuring) (144.4 ) (158.6 ) Other liabilities (excluding income taxes and legacy environmental matters) (89.3 ) (113.7 ) Total invested capital 1,650.2 1,695.8 Adjusted EBIT Return 论投资资本24.3%24.4%


 
Investor Day 2018 | DEFINITIONS AND RECONCILIATIONS OF NON-GAAP MEASURES 121 Three Months Ended December 31, 2017 2016 (In millions, except per share amounts) Pre- Tax Tax at Actual Rate After- Tax Per Share Pre- Tax Tax at Actual Rate After- Tax Per Share Diluted Earnings Per Share (GAAP) $ (1.81 ) $ 0.25 Pension MTM adjustment and other related costs, net $ 49.2 $ 17.0 $ 32.2 0.47 $ 61.4 $ 20.9 $ 40.5 0.58 Costs (benefit) related to legacy product, environmental and other claims 5.3 2.0 3.3 0.05 11.2 4.2 7.0 0.10 Restructuring and repositioning expenses 9.7 2.9 6.8 0.10 10.0 2.1 7.9 0.11 Amortization of acquired inventory fair value adjustment — — — — 3.9 1.5 2.4 0.03 Income and expense related to divested businesses 1.0 0.3 0.7 0.01 (0.4 ) (0.1 ) (0.3 ) — Gain on termination and curtailment of postretirement plans related to divested businesses — — — — (0.3 ) (0.1 ) (0.2 ) — Third-party acquisition-related costs 2.5 1.0 1.5 0.02 — — — — Gain on sale of product line (0.4 ) (0.1 ) (0.3 ) — (1.0 ) (0.3 ) (0.7 ) (0.01 ) Discrete tax items: Provisional charge related to the U.S. Tax Cuts and Jobs Act of 2017 (143.0 ) 143.0 2.11 — — — Discrete tax items, including adjustments to uncertain tax positions (2.2 ) 2.2 0.03 7.9 (7.9 ) (0.11 ) Adjusted EPS (non-GAAP) $ 0.98 $ 0.95


 
Investor Day 2018 | DEFINITIONS AND RECONCILIATIONS OF NON-GAAP MEASURES 122 Twelve Months Ended December 31, 2017 2016 (In millions, except per share amounts) Pre- Tax Tax Effect After- Tax Per Share Pre- Tax Tax Effect After- Tax Per Share Diluted earnings per share from continuing operations $ 0.16 $ 1.52 Costs (benefit) related to legacy product, environmental and other claims $ 30.8 $ 11.4 $ 19.4 0.28 $ 35.4 $ 13.2 $ 22.2 0.31 Restructuring and repositioning expenses 26.7 8.9 17.8 0.26 38.6 11.6 27.0 0.38 Accounts receivable reserve—Venezuela 10.0 3.5 6.5 0.10 — — — — Pension MTM adjustment and other related costs, net 51.1 17.4 33.7 0.49 60.3 19.8 40.5 0.57 Income and expense items related to divested businesses 2.3 0.8 1.5 0.02 (0.1 ) — (0.1 ) — Loss on early extinguishment of debt — — — — 11.1 4.1 7.0 0.10 Third-party acquisition-related costs 2.9 1.1 1.8 0.03 2.5 0.7 1.8 0.03 Gain on sale of product line — — — — (1.7 ) (0.6 ) (1.1 ) (0.02 ) Amortization of acquired inventory fair value adjustment — — — — 8.0 3.0 5.0 0.07 Gain on curtailment of postretirement plans related to divested businesses — — — — (0.3 ) (0.1 ) (0.2 ) — Discrete tax items: Provisional charge related to the U.S. Tax Cuts and Jobs Act of 2017 (143.0 ) 143.0 2.10 — — — Discrete tax items, including adjustments to uncertain tax positions 2.7 (2.7 ) (0.04 ) (9.8 ) 9.8 0.14调整后每股收益3.40美元


 
投资者日2003年3月2日纽约证券交易所