2015 - Cleveland Research Company Stock Pitch Competition

1. Cytec Industries
“Delivering theVision”
Michael Loffredo | Jed Sekaran |Tyler Smith |AlexVielmetti
Cleveland Research Company Stock Pitch | 2015

2. InvestmentThesis & Overview
Industry Dynamics
Growth Opportunities & Drivers
Valuation
FinalThoughts
3
6
11
16
20
Appendix 21

3. 3Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Cytec Industries is currently positioned to take advantage of legislative tailwinds and high
growth segments of the market
 Cytec has substantial contracts with aerospace giants Boeing andAirbus which are rapidly
growing production to meet the demand of airlines overhauling their fleets
 United States legislation mandates that automakers’ vehicles reach an average gas mileage of
54.5 mpg by the year 2025 increasing demand for lightweight composites
 Increased mining production as a result of decreasing ore grades and emerging market demand
drives production of In Process Separation chemicals
We recommend Cytec as a Buy with a 12 month price target of $70.50, which represents
an upside of 30.51% from the current share price of $54.02
InvestmentThesis

4. 4Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Company Description
 Cytec Industries, Inc. operates in the industrial
materials and specialty chemicals industry
 Operations on all continents
 Headquartered inWoodland Park, NJ
 NYSE: CYT
2014 Revenue Breakdown
Key Statistics Stock Performance
Company Overview
49.8%
20.4%
16.2%
13.5%
Aerospace Materials
In Process Separation
Industrial Materials
Additive Technologies
0
1
2
3
4
40
44
48
52
56
3/27/2014 7/27/2014 11/27/2014 3/27/2015
Millions
Market Data Value
Current Price 54.02 EV/EBITDA 14.0x
Market Cap. 3,853 M EV/Sales 2.2x
Quarterly Dividend $0.125 Price/Book 3.1x
Dividend Yield 0.81% Price/Earnings 23.7x
2014 EPS $2.25 PEG 1.1x
Operations Capital Structure
2014 Revenue 2,008 M Debt 743 M
Gross Margin 29.36% Cash & Equivalents 134 M
EBIT Margin 11.64% Quick Ratio 1.1x
Profit Margin 7.66% Current Ratio 2.3x
Sources: Bloomberg, Company 10-k

5. 5Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Aerospace Materials Industrial Materials
In Process Separation AdditiveTechnologies
Further Operations
70%
30%
Civil Aircraft Military & Space
• Fighter Jets
• Transports
• Rotocrafts
• Unmanned vehicles
• Launch vehicles/missiles
• Large commercial transport
• Business jets
• Regional jets
• Turboprops
25%
14%
11%7%
7%
5%
5%
26%
Aerospace
Motorsports
High performance auto
Tooling
Wind energy
Defense
Recreation
Others
45%
25%
15%
15% Copper
Alumina
Other Phosphines
(non-mining)
Other
Metals/Minerals
• Gold, molybdenum, nickel, cobalt
• Rare earths
• Industrial minerals
• Soil fumigation
• Electronics/LED
• Hydrofracking
50%
42%
8%
Polymer Additives
Specialty Additives
Other
Sources: Company 10-k, Investor Presentation

6. 6Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Production Strengths
 Aerospace backlogs have been increasing steadily
since 2009 and at an increasing rate in recent
months
 Growth in backlog orders fueled by favorable input cost
reductions and aging fleets
 Carriers are looking to expand capacity to meet rising
demand of air travel
 Strength in the aerospace segment is expected to
continue with rising consumer confidence
Backlog Expansion
Composite Drivers
 Carriers are looking to replace their aging fleets
with more fuel efficient aircraft
 The use of lightweight composite materials helps to
increase fuel efficiency and further reduces costs for
airlines
 Economic viability will continue to increase as
costs associated with production of lightweight
composites declines
FleetTurnover
Aerospace Materials
0
100
200
300
400
500
600
700
800
2000 2002 2004 2006 2008 2010 2012 2014
Billions
Shipments Orders Backlog
0
9,000
18,000
27,000
36,000
45,000
2014 2019E 2024E 2029E 2034E
Growth Replacement Retained Fleet
14,350 Replacement, 41%
20,930 Growth, 59%
Sources: Company Presentation, Aia-Aerospace, Company 10-k

7. 7Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Carbon Fiber Uses
 Alternate Energy –Wind turbines, nat. gas storage
 Efficient Automobiles – Currently in micro-
production super-cars, but moving toward large
production cars
 Construction and Infrastructure – Lightweight pre-cast
concrete, earth quake protection
 Oil Exploration – Deep sea drilling, oil pipes
Carbon Fiber Market Share
Value of Carbon Fiber
 Manufacturing costs can be cut by 80% with
carbon fiber vs. steel due to greatly reduced
tooling and simpler assembly and joining
 Carbon fibers are 10x stronger than steel and 8x
than aluminum, as well as much lighter than both
materials
 Fatigue properties are superior to all known metallic
structures
Industry Revenue Outlook
Industrial Materials
26%
17%
14%
44%
Hexcel Corporation
Cytec Industries
Toray Group
Other
(40.0%)
(20.0%)
- -
20.0%
40.0%
60.0%
0
500
1,000
1,500
2,000
2,500
Millions
YOY Growth Revenue
Sources: CarbonWorld, IBISWorld, Company 10-k

8. 8Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
“Perfect storm of growth in production [and] reduction in price”
LegalTailwinds
 Obama administration requires average fleet gas mileage
to reach 54.5 mpg by 2025 (35.5 in 2016) compared to
the current average of 24.2 mpg
 Reducing weight by 10% leads to ≈ 7% increase in fuel
efficiency
 Carbon fiber is not only the lightest alternative, but also
requires the least tooling which reduces manufacturing
costs
PotentialWeight Savings
Automotive Industry
0
500
1,000
1,500
2,000
2,500
0
20,000
40,000
60,000
2013 2014 2015 2016E 2017E 2018E 2019E
GlobalSerialAutoOpportunity
CarbonFiberCompositeSystemCosts
Carbon Fiber Structure Price Auto Market Opportunity
1,000 EAV
5,000 EAV
10,000 EAV
50,000 EAV25,000 EAV
Thousands Millions
Formula One
Super Car
High-end Luxury
Luxury Serial
Chassis
50%
Functional
Parts
10%
Semi-Structure
30%
Exterior Body
30%
Interior
50%
Average Car Weight Weight Using Composite Technologies
Sources: CarbonWorld, Wall Street Journal, Company 10-k, Investor Presentation

9. 9Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Diverse Field
 Wide variety of players in the mining chemical
industry
 Subsets of larger corporations
 Oil & Gas: Chevron
 Chemical Conglomerates: BASF
 Very few suppliers offer the entire range of
mining chemicals to maintain decent margins
Global Output
Increasing Importance
 $20 billion market size
 Depressed metal prices have caused extractors to
depend on companies like Cytec for excellent
products
 Sales are dependent on annual production as
opposed to price of commodities
Mining Chemical Functions
In Process Separation
49%
18%
17%
11%
4%
1%
Grinding Aids
Sulfide Collectors
Flocculants
Frothers
Other Collectors
Solvent Extractants
- -
4.0%
8.0%
12.0%
16.0%
2011 2012 2013 2014 2015E 2016E 2017E
Copper Production Growth YOY Aluminum Production Growth YOY
Sources: CAS, Company 10-k, Investor Presentation, USGS

10. 10Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Fragmented Industry
 Many players in the additives industry
 No one firm is a significant player in every segment of the
additives industry
 Firms choose to specialize in a few segments of
the additives industry
 Cytec operates in the polymer, specialty, and formulated
resins businesses
Plastic Additives Consumption
Segment Focus
 Polymer Additives
 Plastics & coatings for: automotive parts, construction,
packaging, outdoor furniture, sporting goods, and toys
 Specialty Additives
 Water-based paints, adhesives, and coatings for textiles
and paper, super absorbent polymers, and pharmaceuticals
 Formulated Resins
 Formulated resins for bonding and/or sealing of electrical
and electronic components, and filtration
Customer Industries
AdditivesTechnology
23%
20%
20%
10%
7%
20% Western Europe
United States
China
Africa/Middle East
Japan
Other
Rotomolding
Emulsions
Autos
Pharma
Sources: CAS, Company 10-k, Investor Presentation

11. 11Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
CuttingThrough Headwinds
 Cytec’s contract structure positions them well in
the current macroeconomic environment
 Aerospace contracts are denominated in USD
 Costs are accumulated in Euros
 Diversified customer base hedges Cytec against
adverse movements in particular industries
Q1 2015 Earnings Revision
Margin Expansion
 Management targets the largest growth in margins
in the industrial materials segments
 Top line growth, adjacent market penetration, and
further efficiencies will drive these expansions
Breakdown
Margins
(33.5%)
(20.7%)
(7.3%)
(20.7%)
(18.0%)
(3.3%)
(40.0%)
(30.0%)
(20.0%)
(10.0%)
- -
Oil/Energy Idustrial
Products
Technology Autos Basic
Material
Cytec
Since 12/18/14
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Aerospace IPS Industrial Materials Additives

12. 12Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Industry Positioning
 Large backlog growth of commercial and military aircraft
will lead to steady growth in the coming years
 Cytec is well positioned to take advantage of new
developmental programs as manufacturers put greater
emphasis on weight reduction and fuel efficiency
 Diverse portfolio of product offerings allows for
application throughout the manufacturing process
Revenue Growth Drivers
Aerospace Development
3.0%
9.0%
7.0%
(1.0%)
- -
3.0%
6.0%
9.0%
12.0%
Base Business/Build
Rate
New Programs Sunsetting Programs 2018E
Program OEM Backlog
>$1M
F-35 88
787 864
$500K-$1m
A-380 157
747-8 53
C-Series 177
C 919 310
$200k-$500k
A350 678
737 Max 1,431
A400 174
Hondajet 100
Learjet85 100
<$200k 737 2,014
A320/A320Neo 4,014
SSj 100 232
Cytec Contracted Revenue
Revenueperunit
Sources: Company Presentation, Company 10-k

13. 13Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Causes of Diminishing Carbon Fiber Costs
 Carbon fiber is still a burgeoning industry with very little automation relative to metal counterparts
 Increased automation leads to more consistency among end-product as well as quicker production cycles to increase output
 Launch of DForm, an innovative prepreg format that combines short fiber conformability with the handling
and laminate characteristics of a conventional long fiber composite
 DForm reduces lay-up time by approximately 75%, making the overall tool manufacturing much more cost efficient yet retaining the
high-quality surface finish
 Economies of scale from large investments to meet mass-commercial demand for carbon fiber components
Revenue Growth Drivers Management Relationships
Capitalizing on Auto Industry
3.0%
11.0%
4.0%
4.0%
0.0%
4.0%
8.0%
12.0%
Base Business Growth
(non-auto)
Structural Materials
(auto)
Process Materials 2018E
 Preexisting relationships from plastics additive
business can be leveraged into lightweight
composite contracts
 Precedents from current deals with
Lamborghini, Formula 1, and Jaguar/Land
Rover
Sources: Company 10-k, Investor Presentation

14. 14Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
New Markets
 Cytec has recently begun operations in the major
mining countries of Kazakhstan and Mongolia
 Two of the few areas where new mines are being opened
 Opportunities for future geographic expansion
with a low cost base
 Including Egypt,Turkey, & Indonesia
 Ability to increase margins
Revenue Drivers
Catalysts for Increased Production
 Diminishing mineral grades means a higher
volume must be mined to attain the same output
 Increased mining production leads to more
demand for IPS chemicals from Cytec
 Not dependent on commodity prices
 Increase in global demand being driven by
emerging markets
Mineral Grade Depreciation
IPS Penetration and Expansion
0.0
0.5
1.0
1.5
2.0
- -
0.4%
0.8%
1.2%
1.6%
AverageGoldGradeExtracted(g/t)
AverageCopperGradeExtracted(Cu%)
Copper Grade Gold Grade
2.0%
11.0%
3.0%
3.0%
3.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Base Business
Growth
Technology /
Share Gain
Geographic
Expansion /
New Mines
New Market
Adjacencies
2018E
Sources: Company 10-k, Investor Presentation, USGS

15. 15Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Plastics in the Automotive Industry
 Increased use of low-density plastic for weight
reduction drives growth
 7%-8% growth in automotive plastic application
 Smaller engines in fuel efficient vehicles produce
more heat, further adding to the importance of
thermoplastic composites
Growth Drivers
Operational Cash Flow
 Cytec’s additives business provides stability to
their core business
 Strong cash flow generation and limited capital
expenditures from this segment allows
management to allocate capital in high-growth
industries
Return on Invested Capital
Additives Market Opportunities
2.0%
6.0%
3.0%
1.0%
- -
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
Base Business
Growth
Polymer
Additives
Specialty
Additives
2018E
- -
4.0%
8.0%
12.0%
CYT ASH POL AKZA ALB
Sources: Company 10-k, Investor Presentation

16. 16Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Valuation Summary
$45.00 $50.00 $55.00 $60.00 $65.00 $70.00 $75.00 $80.00 $85.00 $90.00
Bear Case - Segmented DCF
Public Comparables - P/E
Public Comparables - EV/EBITDA
Base Case - Segmented DCF
Traditional DCF
Bull Case - Segmented DCF
2015E Earnings: $3.13 Forward P/E: 22.5x
2016E Earnings: $3.39 Forward P/E: 20.8x
Sources: Team Projections

17. 17Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
EPS Projections WACC Calculation
Comparables Comparables Analysis
 Cytec Industries is undervalued based on the
industries it operates in
 A sum of parts analysis was used
 Specialty chemical companies were given a
higher valuation on a P/E basis
Valuation
$1.00
$3.00
$5.00
$7.00
2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
Historical Bear Base Bull
WACC Calculation
Total Debt 743 16.2%
Total Equity 3,855 83.8%
4,597 100.0%
Beta 1.0
Expected Market Return 9.4%
Risk FreeRate 1.8%
Cost of Equity 9.1%
Pre-Cost of Debt 2.0%
Tax Rate 27.0%
Cost of Debt 1.4%
WACC 7.8%
Sources: Team Projections
Implied Valuation
EV/EBITDA
1st Quartile Median Mean 3rd Quartile
Implied SharePrice $42.96 $55.70 $56.21 $64.74
Upside (20.2%) 3.4% 4.4% 20.2%
P/E
1st Quartile Median Mean 3rd Quartile
Implied SharePrice $47.75 $55.41 $67.69 $63.49
Upside (11.3%) 2.9% 25.7% 17.9%

18. 18Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Segmented DCF Multiple Methodologies
Traditional DCF Sensitivity Analysis
Valuation
PPGMethodat 2.75% Exit Mutiple of10.0x
Terminal Value 6,390
PresentValue
PV Sum of FreeCash Flows 995
PV of Terminal Value 4,728
Implied EnterpriseValue 5,723
NetDebt 609
Equity Value 5,114
SharesOutstanding 72
ImpliedPrice perShare $70.88
Implied Differenceto CurrentPrice 32.68%
PPGMethodat 2.75% Exit Mutiple of10.0x
Terminal Value 6,433
PresentValue
PV Sum of FreeCash Flows 995
PV of Terminal Value 4,759
Implied EnterpriseValue 5,754
NetDebt 609
Equity Value 5,145
SharesOutstanding 72
ImpliedPrice perShare $71.31
Implied Differenceto CurrentPrice 33.49%
 Traditional DCF projected revenue and costs
using commonly accepted practices
 Segmented DCF was calculated from Earnings
Before Interest &Taxes margin from each of
Cytec’s four segments
Sources: Team Projections
WACC
$71.31 6.8% 7.3% 7.8% 8.3% 8.8%
2.3% $81.72 $72.76 $65.39 $59.23 $54.00
2.5% $86.12 $76.24 $68.21 $61.55 $55.94
2.8% $91.05 $80.10 $71.31 $64.08 $58.04
3.0% $96.63 $84.41 $74.73 $66.85 $60.32
3.3% $102.98 $89.26 $78.52 $69.89 $62.81
PerpetuityGrowth
WACC
$70.88 6.8% 7.3% 7.8% 8.3% 8.8%
2.3% $81.23 $72.32 $65.00 $58.88 $53.68
2.5% $85.59 $75.78 $67.80 $61.18 $55.61
2.8% $90.49 $79.62 $70.88 $63.70 $57.69
3.0% $96.03 $83.90 $74.27 $66.45 $59.96
3.3% $102.35 $88.71 $78.04 $69.47 $62.43
Perpetuity
Growth

19. 19Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Positioning Analysis
 Loss of contracts with
major customers like
Boeing orAirbus
 R&D could yield major
advancement in lightweight
technologies
 M&A opportunities to expand
distribution or augment current
product offerings
 Current lack of feasible recycling
methods for carbon fiber
W
TO
 Strong contracts with aerospace
producers denominated in USD
 Large backlog of revenue for
customers allows for accurate
projections
 Strong cash flow generation
 Experienced management
across all segments
S
 High cost differential between
carbon fiber and high strength
aluminum
 The emergence of a lightweight
compound other than carbon
fiber to steal market share
 Political/economic unrest in regions
served by IPS segment
Sources: Company 10-k, Bloomberg

20. 20Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
FinalThoughts
Cytec Industries is currently positioned to take advantage of legislative tailwinds and high
growth segments of the market
 Cytec has substantial contracts with aerospace giants Boeing andAirbus which are rapidly
growing production to meet the demand of airlines overhauling their fleets
 United States legislation mandates that automakers’ vehicles reach an average gas mileage of
54.5 mpg by the year 2025 increasing demand for lightweight composites
 Increased mining production as a result of decreasing ore grades and emerging market demand
drives production of In Process Separation chemicals
We recommend Cytec as a Buy with a 12 month price target of $70.50, which represents
an upside of 30.51% from the current share price of $54.02

21. 21Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Appendix

22. 22Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Appendix Contents
 Pro Forma Income Statement
 Pro Forma Balance Sheet
 Pro Forma Statement of Cash Flows
 Segmented Base Case DCF
 Comparables
 Mining Presence
 NorthAmerica Operations
 LatinAmerica Operations
 Europe Operations
 Asia Pacific Operations

23. 23Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Pro Forma Income Statement
Income Statement
(In millions, except per share amounts) Historical Projected
2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
Revenue
Additive Technologies 271.0 287.2 270.4 275.2 271.3 290.3 307.7 329.2 349.0 366.5
In Process Separation 292.2 339.5 384.2 382.7 410.5 433.1 463.4 514.4 570.9 633.8
Industrial Materials 0.0 0.0 176.4 316.3 325.8 335.6 362.4 398.7 442.5 495.6
Aerospace Materials 0.0 0.0 877.1 960.8 1,000.1 1,075.1 1,161.1 1,254.0 1,366.9 1,503.6
Engineered Materials 660.2 789.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total revenue 1,223.4 1,415.9 1,708.1 1,935.0 2,007.7 2,134.1 2,294.6 2,496.3 2,729.3 2,999.4
Operating income
Additive Technologies 40.3 39.4 40.8 39.6 33.9 37.7 43.1 47.7 52.4 55.0
In Process Separation 55.2 69.7 95.3 86.5 95.6 99.6 111.2 126.0 142.7 164.8
Industrial Materials 0.0 0.0 11.4 19.0 30.8 30.2 36.2 43.9 53.1 62.0
Aerospace Materials 0.0 0.0 168.5 177.6 178.2 204.3 223.5 244.5 273.4 308.2
Engineered Materials 107.1 124.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Operating income from business segements 202.6 234.0 316.0 322.7 338.5 371.8 414.1 462.1 521.6 589.9
Amortization of acquisition intangibles 15.6 13.9 12.3 11.0 9.8
Net (loss) gain on sale of assets 0.0 0.0 0.0 0.0 0.0
Asset impairment charge 0.0 0.0 0.0 0.0 0.0
EBIT 356.2 400.2 449.8 510.6 580.2
Other (expense)/income, net (8.5) (9.2) (10.0) (10.9) (12.0)
Net loss on earnly extinguishment of debt 0.0 0.0 0.0 0.0 0.0
Interest expense, net 27.8 24.8 16.3 15.1 20.5
EBT 319.9 366.2 423.5 484.6 547.7
Income tax provision 86.4 102.5 122.8 145.4 169.8
Net Income 233.6 263.6 300.7 339.2 377.9
Basic weighted shares outstanding 98.68 96.90 92.07 78.84 72.16 71.22 70.28 69.35 67.94 66.54
Diluted weighted shares outstanding 99.73 98.01 93.57 80.37 73.38 72.64 71.69 70.73 69.30 67.87
Basic earnings per common share
Continuing operations $3.28 $3.75 $4.34 $4.99 $5.68
Discontinued operations $0.00 $0.00 $0.00 $0.00 $0.00
$3.28 $3.75 $4.34 $4.99 $5.68
Diluted earnings per common share
Continuing operations $3.22 $3.68 $4.25 $4.89 $5.57
Discontinued operations $0.00 $0.00 $0.00 $0.00 $0.00
$3.22 $3.68 $4.25 $4.89 $5.57
Dividends per common share $0.025 $0.250 $0.250 $0.250 $0.375 $0.500 $0.625 $0.750 $0.863 $0.992
Back

24. 24Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Pro Forma Balance Sheet
Balance Sheet
(In millions, except per share amounts) Historical Projected
Assets 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
Current assets
Cash and cash equivalents $383.3 $415.8 $179.3 $151.8 $133.9 $265.7 $429.9 $832.9 $1,005.1 $1,494.9
Trade accounts receivable, less allowance 370.6 396.6 263.6 251.3 265.1 263.1 281.5 306.4 334.2 366.5
Other accounts receivable 51.4 42.5 39.1 74.4 74.6 95.8 95.6 103.3 111.6 120.5
Inventories 350.0 374.3 269.8 253.1 307.6 284.2 298.6 323.4 346.6 374.3
Deferred income taxes 40.6 39.4 38.4 32.1 27.4 26.7 28.7 31.2 34.1 37.5
Other current assets 22.4 19.2 18.9 25.1 26.2 27.7 29.8 32.5 35.5 39.0
Current assets held for sale 93.1 0.0 409.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total current assets 1,311.4 1,287.8 1,218.8 787.8 834.8 963.2 1,164.2 1,629.7 1,867.1 2,432.6
Investement in associated companies 19.7 19.2 1.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Plants, equipment, and facilities, net 1,126.2 1,114.5 835.3 1,047.0 1,121.4 1,246.7 1,345.0 1,439.1 1,556.7 1,679.9
Acquisition intangibles, net 347.0 303.4 183.7 161.1 141.6 126.0 112.2 99.8 88.8 79.1
Goodwill 685.7 675.7 525.3 521.3 508.8 498.6 488.7 478.9 469.3 459.9
Deferred income taxes 24.1 26.6 8.9 25.2 41.2 42.6 45.5 49.2 53.1 57.4
Other assets 88.5 109.5 88.7 138.1 119.4 128.0 137.7 149.8 163.8 180.0
Non-current assets held for sale 71.3 0.0 1,061.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total Assets $3,673.9 $3,536.7 $3,924.2 $2,680.5 $2,767.2 $3,005.2 $3,293.2 $3,846.4 $4,198.8 $4,888.8
Liabilities
Current liabilities
Accounts payable $263.6 $281.6 $176.4 $175.7 $172.4 $189.5 $199.1 $215.6 $231.0 $249.5
Short-term borrowings 6.1 3.5 3.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Current martiurites of long-term debt 0.0 0.0 136.1 0.1 1.2 0.0 82.3 0.0 0.0 0.0
Accrued expenses 223.2 214.2 177.4 178.4 184.6 193.8 206.9 223.8 242.9 265.0
Income taxes payable 19.7 20.8 51.4 14.2 8.4 10.4 6.2 3.7 2.2 0.0
Deferred income taxes 3.1 1.8 0.6 0.1 0.3 0.0 0.0 0.0 0.0 0.0
Current liabilities held for sale 63.9 0.0 265.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total current liabilities 579.6 521.9 810.8 368.5 366.9 393.7 494.4 443.0 476.1 514.6
Long-term debt 641.5 635.9 567.4 716.2 741.7 742.2 661.9 961.9 961.9 1,261.9
Pension and other postretirement benefit liabilities 364.2 337.4 275.5 195.2 245.9 291.6 334.9 374.8 414.0 452.0
Other noncurrent liabilities 272.8 271.1 198.3 187.1 170.3 192.1 206.5 224.7 245.6 269.9
Deferred income taxes 71.3 77.1 70.9 31.6 31.4 26.7 22.9 18.7 13.6 0.0
Non-current liabilities held for sale 7.6 0.0 198.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Stockholders' Equity
Preferred stock 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Common stock, $.01 par value per share 0.5 0.5 0.5 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Additional paid-in capital 451.5 461.2 465.6 467.4 474.2 474.2 474.2 474.2 474.2 474.2
Retained earnings 1,293.0 1,476.4 1,419.2 1,572.8 1,699.6 1,897.6 2,161.2 2,461.9 2,801.1 3,179.0
Accumulated other comprehensive (loss) income (14.4) (66.5) 155.7 95.7 13.1 13.1 13.1 13.1 13.1 13.1
Treasury stock 0.0 (185.0) (243.3) (955.0) (976.9) (1,026.9) (1,076.9) (1,126.9) (1,201.9) (1,276.9)
Total Cytec Industries Inc. stockholders' equity 1,730.6 1,686.6 1,797.7 1,181.9 1,211.0 1,359.0 1,572.6 1,823.3 2,087.5 2,390.4
Noncontrolling interests 6.3 6.7 5.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total equity 1,736.9 1,693.3 1,803.0 1,181.9 1,211.0 1,359.0 1,572.6 1,823.3 2,087.5 2,390.4
Total Liabilities and Stockholders' Equity $3,673.9 $3,536.7 $3,924.2 $2,680.5 $2,767.2 3,005.2 3,293.2 3,846.4 4,198.8 4,888.8
check 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Working Capital 325.4 353.6 224.0 267.6 335.2 303.8 322.2 353.7 385.9 423.2
Back

25. 25Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Pro Forma Statement of Cash Flows
Back
Statement ofCash Flows
(In millions, except per shareamounts) Historical Projected
2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
Cash Flows Provided by (Used in) Operating Activities
Net earnings $175.1 $189.0 $177.0 $173.9 $153.8 $232.6 $291.0 $317.3 $348.6 $367.6
Earningsfrom discontinued operations (108.1) (131.5) (101.3) (2.2) (9.7) 0.0 0.0 0.0 0.0 0.0
Earningsfrom continuing operations 67.0 57.5 75.7 171.7 144.1 232.6 291.0 317.3 348.6 367.6
Noncash itemsincluding in earningsfrom continuing operations:
Depreciation 37.4 45.0 58.6 56.0 63.7 56.1 62.3 80.6 100.4 116.0
Amortization 9.0 8.7 14.1 19.2 17.9 15.6 13.9 12.3 11.0 9.8
Share-based compensation 10.2 11.1 11.3 11.4 11.6 0.0 0.0 0.0 0.0 0.0
Pension and postretirement benefit (income)expense 0.0 66.0 43.1 (47.2) 100.8 60.8 61.9 63.2 64.6 65.9
Contributionsto pension and post retirement plans 0.0 (66.7) (51.3) (79.8) (13.6) (15.1) (18.6) (23.3) (25.4) (27.9)
Deferred incometaxes (8.7) (9.9) (39.6) 23.5 (8.7) (5.7) (8.7) (10.2) (11.6) (20.2)
Non-cash losson on saleof assets (2.3) (3.3) 16.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Non-cash losson disposal of assetsand asset impairment charge 0.0 0.0 2.0 9.5 2.5 0.0 0.0 0.0 0.0 0.0
Losson early extinguishment of debt 0.8 0.3 0.2 39.4 22.7 0.0 0.0 0.0 0.0 0.0
Unrealized loss(gain)on derivativeinstruments (0.8) 2.1 (4.5) 0.3 7.4 0.0 0.0 0.0 0.0 0.0
Other 0.3 0.0 0.1 0.4 0.0 1.9 1.0 (1.2) (2.2) (3.4)
Changesin operating assetsand liabilities
Tradeaccountsreceivable (26.0) (44.2) (9.0) 13.6 (37.6) 2.7 (17.0) (22.5) (23.4) (25.2)
Other receivables (4.9) 5.7 12.4 (0.3) 0.2 (5.2) 0.1 (6.4) (6.9) (7.4)
Inventories (17.0) (33.1) (8.4) 11.5 (66.9) 23.4 (14.4) (24.8) (23.1) (27.7)
Other assets (4.2) (3.4) 1.0 (9.2) (0.8) (1.5) (1.9) (2.4) (2.6) (2.8)
Accountspayable 29.1 26.9 (1.7) 4.2 29.2 17.1 9.6 16.5 15.4 18.5
Accrued expenses 25.6 (9.8) 24.4 9.2 (0.3) 8.5 7.3 16.0 15.9 18.6
Incometaxespayable 4.0 (4.2) 27.5 (58.9) 1.3 1.9 (3.5) (2.9) (1.6) (2.2)
Other liabilities (58.7) 12.9 (4.9) (16.5) (10.4) 21.2 13.4 16.4 17.7 19.1
Net cash provided by operating activitiesof continuing operations 60.8 61.6 167.7 158.0 263.1 414.4 396.4 428.7 476.8 498.6
Net cash provided by operating activitiesof discontinued operations 218.0 150.2 146.0 (127.4) 0.3 0.0 0.0 0.0 0.0 0.0
Net cash provided by operating activities 278.8 211.8 313.7 30.6 263.4 414.4 396.4 428.7 476.8 498.6
Cash Flows Provided by (Used in) Investing Activities
Additionsto plants, equipment, and facilities (81.5) (78.9) (145.3) (304.9) (220.8) (180.9) (159.4) (172.2) (212.5) (229.5)
Acquistiion of businesses, net of cash received 0.0 0.0 (449.3) 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net proceedsreceived on saleof assets 0.3 3.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net cash used in investing activitiesof continuing operations (81.2) (75.5) (594.6) (304.9) (220.8) (180.9) (159.4) (172.2) (212.5) (229.5)
Net cash provided (used)in investing activitiesof discontinued operations (44.3) 117.8 84.7 1,017.0 0.0 0.0 0.0 0.0 0.0 0.0
Net cash provided by (used in) investing activities ($125.5) $42.3 ($509.9) $712.1 ($220.8) (180.9) (159.4) (172.2) (212.5) (229.5)
Cash Flows Provided by (Used in) Financing Activities
Proceedsfrom long-term debt 0.0 0.0 318.1 634.1 251.4 0.5 2.0 300.0 0.0 300.0
Paymentson long-term debt (34.3) (5.9) (268.4) (658.2) (246.4) (1.2) 0.0 (82.3) 0.0 0.0
Changein short-term borrowings (4.9) (2.8) (0.5) 2.2 0.0 0.0 0.0 0.0 0.0 0.0
Cash dividends (3.8) (27.1) (25.9) (21.5) (26.9) (35.6) (43.9) (52.0) (58.6) (66.0)
Proceedsfrom theexerciseof stock options 20.5 8.1 28.0 23.5 15.4 0.0 0.0 0.0 0.0 0.0
Excesstax benefitsfrom share-based payment arangements 0.0 1.5 5.9 5.5 7.9 0.0 0.0 0.0 0.0 0.0
Purchaseof treasury stock 2.9 (196.1) (99.9) (750.1) (50.0) (50.0) (50.0) (50.0) (75.0) (75.0)
Net cash settlement of crosscurrency swaps (14.0) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other 0.0 10.8 (1.3) 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Cash Used in Financing Activities (33.6) (211.5) (44.0) (764.5) (48.6) (86.3) (91.9) 115.7 (133.6) 159.0
Effect of currency ratechangeson cash and cash equivalents 1.9 (10.1) 3.7 (5.7) (11.9) 0.0 0.0 0.0 0.0 0.0
Increase (Decrease) in Cash and Cash Equivalents $121.6 $32.5 ($236.5) ($27.5) ($17.9) 147.2 145.0 372.3 130.7 428.2
Cash and cash equivalents, beginning of period 261.7 383.3 415.8 179.3 151.8 133.9 281.1 426.1 798.4 929.1
Cash and Cash Equivalents, End ofPeriod $383.3 $415.8 $179.3 $151.8 $133.9 $281.1 $426.1 $798.4 $929.1 $1,357.3
DEBT/EBITDA 4.01 4.11 3.43 1.86 2.36 1.73 1.44 1.68 1.49 1.79
Plant, Property, &Equipment Schedule
Beginning Balance 1,121.4 1,246.2 1,343.3 1,434.9 1,546.9
Capital Expenditures 180.9 159.4 172.2 212.5 229.5
Depreciation (56.1) (62.3) (80.6) (100.4) (116.0)
Ending Balance $1,126.2 $1,114.5 $835.3 $1,047.0 $1,121.4 $1,246.2 $1,343.3 $1,434.9 $1,546.9 c

26. 26Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Segmented Base Case DCF
SEGMENTED DISCOUNTED CASHFLOWS
In millions, expect per sharedata
Historical Projected
2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
EBITDA 159.9 154.9 204.9 384.6 315.3 427.9 476.4 542.8 622.3 706.7
LessD&A 46.4 53.7 72.7 75.2 81.6 71.6 76.2 93.0 111.7 126.5
EBIT 113.5 101.2 132.2 309.4 233.7 356.2 400.2 449.8 510.6 580.2
Tax Effect 10.2 15.4 35.2 91.7 56.6 96.2 112.1 130.4 153.2 179.8
NOPAT 103.3 85.8 97.0 217.7 177.1 260.1 288.1 319.4 357.4 400.3
Add: D&A 46.4 53.7 72.7 75.2 81.6 71.6 76.2 93.0 111.7 126.5
Less: CapEx 81.5 78.9 145.3 304.9 220.8 181.4 160.6 174.7 218.3 239.9
Less: Changein NWC (28.2) 129.6 (43.6) (67.6) 31.4 (18.4) (31.5) (32.2) (37.3)
Free Cash Flow $88.8 ($105.2) $31.6 $105.5 $118.9 $222.1 $269.2 $283.0 $324.2
PV ofFCF 110.3 191.0 214.7 209.4 222.4
Assumptions
SharesOutstanding 72.16 Cost of Equity 9.1%
Current SharePrice $53.42 Cost of Debt 2.0%
Beta 0.95 Tax Provision 24.0%
Risk-freeRate 1.8% Market Valueof Equity 3,854.52
Expected Market Return 9.4% Market Valueof Debt 742.90
EV/EBITDA 13.0x WACC 7.8%
Perpetuity Growth Rate 2.75%
Back

27. 27Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Comparables
Aerospace &Industrial Comparables
LTM Price Enterprise Value
EBITDA Revenue Earnings Book EBITDA Revenue
B/E AerospaceIncorporated BEAV US $62.90 85.9% 6,665.1 8,561.7 757.3 3,840.9 23.0x -- 11.3x 2.2x $2.73 $3.62 19.5x 4.0%
Hexcel Corporation HXL US $51.28 97.8% 4,940.4 5,285.8 377.0 1,855.5 23.8x 4.3x 14.0x 2.8x $2.16 $2.70 20.9x 11.3%
Precision CaspartsCorporation PCP US $210.80 76.6% 29,884.6 33,626.6 3,147.0 10,039.0 16.2x 2.5x 10.7x 3.3x $13.05 $14.06 15.0x 18.5%
Spirit AerosystemsHoldingsIncorporated SPR US $52.46 99.3% 7,286.0 8,062.1 530.0 6,799.2 20.7x 4.4x 15.2x 1.2x $2.53 $4.03 13.8x 5.3%
Transdigm Group Incorporated TDG US $220.25 97.4% 11,609.2 18,070.7 1,052.2 2,430.5 65.4x -- 17.2x 7.4x $3.37 $9.67 24.4x 12.9%
1st Quartile 85.9% 6,665.1 8,062.1 530.0 2,430.5 20.7x 3.4x 11.3x 2.2x $2.53 $3.62 15.0x 5.3%
Median 97.4% 7,286.0 8,561.7 757.3 3,840.9 23.0x 4.3x 14.0x 2.8x $2.73 $4.03 19.5x 11.3%
Mean 91.4% 12,077.1 14,721.4 1,172.7 4,993.0 29.8x 3.7x 13.7x 3.4x $4.77 $6.81 18.7x 10.4%
3rd Quartile 97.8% 11,609.2 18,070.7 1,052.2 6,799.2 23.8x 4.3x 15.2x 3.3x $3.37 $9.67 20.9x 12.9%
Specialty Chemical Comparables
LTM Price Enterprise Value
EBITDA Revenue Earnings Book EBITDA Revenue
Ashland Incorporated ASHUS $127.25 97.4% 8,813.9 10,832.9 463.0 6,079.0 60.6x 2.7x 23.4x 1.8x $2.10 $8.43 16.3x 3.8%
PolyOneCorporation POL US $36.78 84.9% 3,280.0 4,066.1 279.0 3,835.5 43.3x 4.2x 14.6x 1.1x $0.85 $2.59 16.1x 2.1%
Valspar Corporation/The VAL US $82.86 91.1% 6,732.2 8,246.7 718.4 4,581.0 17.3x 7.0x 11.5x 1.8x $4.78 $5.23 17.0x 7.6%
Akzo Nobel AKZA NA $71.20 99.1% 19,219.3 21,739.7 2,132.2 18,992.1 23.9x 3.0x 10.2x 1.1x $2.98 $4.22 18.4x 3.8%
AlbemarleCorporation ALB US $52.89 69.3% 5,931.9 6,505.5 372.4 2,502.4 31.3x 3.0x 17.5x 2.6x $1.69 $4.07 14.6x 5.5%
1st Quartile 84.9% 5,931.9 6,505.5 372.4 3,835.5 23.9x 3.0x 11.5x 1.1x $1.69 $4.07 16.1x 3.8%
Median 91.1% 6,732.2 8,246.7 463.0 4,581.0 31.3x 3.0x 14.6x 1.8x $2.10 $4.22 16.3x 3.8%
Mean 88.4% 8,795.5 10,278.2 793.0 7,198.0 35.3x 4.0x 15.4x 1.7x $2.48 $4.91 16.5x 4.6%
3rd Quartile 97.4% 8,813.9 10,832.9 718.4 6,079.0 43.3x 4.2x 17.5x 1.8x $2.98 $5.23 17.0x 5.5%
Cytec IndustriesIncorporated CYT US $54.02 98.9% 3,852.9 4,419.1 324.8 2,007.7 24.1x 3.1x 13.6x 2.2x $2.13 $3.72 16.0x 7.7%
Sum ofParts Applied
1st Quartile 85.6% 6,430.5 7,564.0 479.6 2,880.1 21.8x 3.3x 11.4x 1.9x $2.26 $3.77 15.3x 4.8%
Median 95.4% 7,108.8 8,460.9 663.1 4,077.7 25.7x 3.9x 14.2x 2.5x $2.53 $4.09 18.5x 8.9%
Mean 90.4% 11,027.0 13,299.6 1,051.2 5,698.6 31.6x 3.8x 14.2x 2.9x $4.04 $6.20 18.0x 8.5%
3rd Quartile 97.7% 10,714.7 15,754.6 945.4 6,568.7 30.0x 4.3x 15.9x 2.9x $3.24 $8.25 19.7x 10.5%
EPS (TTM)
Estimated
EPS
Forward PE
Profit
Margin
Company Name
Ticker&
Exchange
Share Price
% of52-
Week High
Market Cap.
Enerprise
Value
EPS (TTM)
Estimated
EPS
Forward PE
Profit
Margin
Company Name
Ticker&
Exchange
Share Price
% of52-
Week High
Market Cap.
Enerprise
Value
Back

28. 28Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Mining Presence
Current Operations Recent Expansion New MarketAdjacencies
Back

29. 29Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
North America Operations
Corporate Headquarters
Aerospace Materials
Industrial Materials
In Process Separation
Additive Technologies
Back

30. 30Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Latin America Operations
Corporate Headquarters
Aerospace Materials
Industrial Materials
In Process Separation
Additive Technologies
Back

31. 31Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Europe Operations
Corporate Headquarters
Aerospace Materials
Industrial Materials
In Process Separation
Additive Technologies
Back

32. 32Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Asia Pacific Operations
Corporate Headquarters
Aerospace Materials
Industrial Materials
In Process Separation
Additive Technologies
Back