Minerals Technologies Inc Investor Day 2026

Good morning everyone and welcome to Minerals Technologies 2026 Investor Day. We're broadcasting today from our Bethlehem, Pennsylvania, which is the for R&D for crystal engineering technology and also corporate offices. Please note that some of the statements may be forward-looking within the meaning of federal securities laws. There is a cautionary statement that you can find on this page in the presentation. Also, some of the numbers on the— in the presentation might be non-GAAP. There is a reconciliation to GAAP financials at the appendix of this presentation, at the end of this presentation that's also available online. Today's agenda, uh, we will start with company overview presented by Doug Dietrich, our chairman and chief executive officer, followed by a presentation about our financial targets and our performance and strategy going forward presented by Erik Aldag, our chief financial officer, and then 2 of our product line leaders will present, uh, our growth strategies as well as innovative pipeline for specialty additives and crystal engineering as well as high temperature technologies focusing on steelmaking and metallization. Followed their presentation, we'll have time for Q&A. For those who are online, you can type in your questions and I will read it.

We'll try to answer as many as possible. Once we conclude webcast presentation, we will have an in-person R&D and a tour of our labs where our leaders of our R&D for crystal engineering and steelmaking metallization will have a special presentation.

Now I'll take it all— I'll introduce Doug, please.

Thank you, Lydia. Thanks, Lydia. And thanks really for everyone joining today. And it's really good for those that have joined online as well. We're really excited actually to do this here today. I know we did a couple years ago at our Hoffman Estates laboratories. We showed you a couple of our product lines and our bentonite-based businesses. This will be a little bit different. This is the other side of the company. This is our high-temperature technologies refractories portion. We're going to take you through some of those technologies and pipelines today, and also our crystal engineering, which is associated with our specialty additives product line. Bethlehem, a little bit about Bethlehem, Pennsylvania. This is, we have 4 buildings on this campus. This one you're in is our research and development campus, or research and development building. It's about 120 people reside here. No manufacturing, but R&D. We have our back office. offices, some of our business unit leaders, as you see here, commercial, marketing and some of the shared services and accounting are here. So about 120 people. It's been a longstanding place, one of the largest centers of people for Minerals Technologies in the US. Let's get started. One thing I wanted to— I know many of you are familiar with the company and those online might not be, but I wanted to take you through just a quick overview of the company before I hand it over to the product line managers.

First couple things, key differentiators for MTI. We talk about this all the time, but it's our balanced portfolio of consumer and industrial businesses and leading market positions that we have, driven by the value we provide by some of the technologies you're going to see today that give us these leading positions in our markets, right? I'm going to take you more into why that balance of consumer and industrial matters to our long-term growth, but it's also founded on our vertical integration of our natural resources. We have mines throughout the world. These are world-class mines. And that provides that stability to be able to provide local content, local solutions to customers, which actually is becoming more important these days with supply chain disruptions. But we're able to operate around the world with these technologies. giving us these leading positions in the markets we serve. Minerals Technologies— technologies has always been in our name.

We are very focused on innovation and new product development. You're going to see some of that today. But being able to apply these core technologies that we call them to these mineral reserves to provide valuable solutions in a multiple markets, and I'll take you through that. But another key differentiator of us, so not just vertically integrated, balanced portfolio, leading positions in our markets, we're very financially stable. We throw— we generate a lot of cash flow. Significant cash flow, about 6%, 7% of our revenue goes to free cash flow every year. That enables us to fund the organic growth. Fund returns to shareholders, fund inorganic growth as well. So a lot of optionality to the company. And it's that growth that we're going to show you today, the profit margin improvement, that cash flow that provides the resources for the company to continue this and continue to drive value through that cash flow. Okay. Let me just take you— probably you don't really realize that every day from the time you get up to the time you go to bed, you're probably coming across one of our products. I mean, throughout your day, whether you're actually consuming it, we have some products over here.

You're consuming it in a calcium-fortified beverage or candy or food or some sort of pharmaceutical. You might be consuming it if you have a cat, there's a cat litter product, a cat on the shelf, but it might also be in something that you're consuming every day. And we take But it all starts with these unique global resources. We have, as I mentioned, resources around the world, but it's really only 2 main minerals that we supply. We have global bentonite reserves. We're the largest bentonite producer in the world. Sodium bentonite is a very unique form of that bentonite, and calcium carbonate. Now there's limestone everywhere, but to have a global kind of a world-class mine is very different. Because having these unique resources, you have to have the right type of mineral, you have to have the right size and particle shape, you have to have the right chemistry, and many types the right color. And so to be able to apply these minerals to these diverse end markets, they have to be world-class in nature, and they— and we have many, many years of supply of them. So it starts with really unique, unique global resources, but more than that, you have to apply technologies to make them applicable, applicable and valuable in what they go into for our customers.

And we have 4 core technologies. We're going to talk deeper about 2 of them today. Those core technologies are functional additives, crystal engineering, engineered blends, and particle surface modification. We can go deeper into all of them today, but when we apply those kind of core capabilities to our global mineral reserves, it enables us to be valuable in many different products. And so at home, when you wake up, your toothpaste, a lot of the articles in your house, your cat litter as I mentioned, your household products, maybe your fabric care products, building materials all throughout your house, personal care products, personal care, your boxes, the, the box that comes decorated, the Amazon box that you come— that top surface is something that we've probably participated in as well. We're outside, we're in your agriculture, we're in agriculture material or products that are helping with crop enhancement. livestock in terms of taking toxins out of livestock stomachs with feed additives, water purification, as you know, with our PFAS remediation treatment. remediation landfill lining systems. We're in printing and paper, commercial buildings, cars and trucks, foundry steel, you name it. But you're probably coming across something directly we've produced or or using something that we've helped our customer manufacture every day.

Just a quick framework of the company. Many of you know this, $2.1 billion in sales. There's the balance between consumer, about 50% consumer-oriented, 50% industrial. These are our main markets that we serve, largest being kind of consumer applications, as I mentioned, 18% into paper and more so into packaging. Steel production, construction, that's residential and commercial construction, automotive and transportation. This comes in the form of also steel but foundry products, so the cars you drive and the heavy trucks that are delivering your products are coming with cast parts made from our Greensand bonds. Largely United States-based or North America-based, 56% here, 24%, our second largest region, EMEA, and a growing 17% in Asia, Asia defined as China, Southeast Asia, India. Oh, I wanted to mention— I'll go back, but I wanted to mention 4,000 employees, again, global company, 34 countries, and as we mentioned, innovation is key to us. So 12 R&D centers, this being one of them. You visited one in Chicago last year, 2 years ago, and we have one about 10 miles down the road in Easton, Pennsylvania. Here's the balance. Here's how we report ourselves in terms of structure with the 2 segments, Consumer and Specialties and Engineered Solutions, both about $1 billion of the company.

In terms of revenue. 4 product lines, the household and personal care and specialty additives, that's in consumer and specialties. And why do we put them this way? Well, these are in the consumer and specialty side, these are functional components in a variety of consumer and industrial goods, meaning these are things that you're either consuming directly or they're in something that you're using, a product you're using. On the other side, the Engineered Solutions is not something you're necessarily consuming directly that we make. We're making something that helps our customers manufacture something. So think of steel, think of a lining system for environmental or wastewater treatment. Horizontal directional drilling, foundry products that you're using in your car. So engineered solutions for manufacturing, consumer products or additives, that you're consuming in your day. On the— we're going to go through 2 of these today. First, I'm going to take you to our growth strategy. I'm going to describe these product lines in a little more detail. So the way we grow the company, it's a pretty basic strategy, but it has some depth in how we go about that. And the first thing was we look to grow the company in a balanced way.

Through these engineered solutions and consumer products and into higher growth markets. And the consumer piece is one of those. So we purposely put ourselves into higher growth consumer markets about 5 years ago, acquisition of pet litter companies combining to be the largest private label pet litter company to move ourselves into higher growth markets. We've also innovated in natural ingredients for personal care. Again, higher growth consumer market, putting ourselves in higher growth geographies in Asia CapEx, innovating around renewable fuels. We'll talk a lot about— we've talked a lot about sustainable aviation fuel. And then also putting ourselves in Asia for metal casting, which is an underpenetrated market. penetrated region for our supply or our product. And so these are higher growth markets either themselves or in geographies that we've put ourselves into to drive growth higher in the company. The second piece of this though is deepening positions in our core markets. Okay, we are leading positions around the world in many of our markets, but we can do more to gain share in those markets. And we've done that in the past. By moving ourselves into packaging. We're gonna talk about that today, into steelmaking.

We talk— we're gonna show you how we've done that today with refractory formulations and automation and intelligent systems. We've deepened our positions in North America metal casting with new formulations for our customers here and also developing and deepening in environmental solutions as that market continues to grow for need for solutions that we provide. But underpinning all of this are new solutions and innovative products. And so we're seeing these markets and we're seeing these opportunities and we're seeing opportunities to create products that are higher margin and putting ourselves deeper into these 2 geographies or into growth markets. And we've done that with, you'll see today, with electric arc furnaces and steelmaking. in PFAS remediation, repurposing a waste stream for, in the paper market. We're gonna talk a lot about NewYield and how we're looking at extending that technology into other markets and other revenue streams. And then I mentioned with sustainable aviation fuel, which is a very quickly growing market, and our product operates very well in that, in that solution. So let's talk about innovation a bit. What is our strategy? We've really changed the nature of how we innovate at MTI over the past 5, 6 years.

I mentioned this a lot about 6 years, 7 years ago, about 10% of our products, our revenue was generated from new products. That's now almost 20%. So we've doubled the impact on our top line from new product development. How do you do that? And it used to take us about 4 years to develop a new product, and that's down to 14 months. And so what we've done is we're really speeding up the engine of innovation in the company. We're moving quickly through the process, making sure if it's gonna work, it's gonna— we're gonna focus on it. If it's not gonna work, isn't gonna work, let's stop working on it. So we've really cranked up the innovation engine. Our pipeline right now, and this is a representation of our 4 product lines, it's about $1.4 billion in potential value. And how do we get there? We work closely with our customers. Certainly we do not want to be working on something that our customers don't want to buy. And so we focus heavily on our voice of the customer activities to make sure that we're innovating something that they want or they need or they're willing to buy.

So it's close collaboration, but we're also looking for next generation. We're also looking for ways to apply our core technologies in new ways to solve solutions. And so we're looking for that next generation of core solutions. And we're gonna describe 2 of them today that are in this pipeline, and we're gonna show you how we've done that more recently and what's going to be continuing to drive growth for this company over the next coming years. But we're also focusing on, as I mentioned earlier, moving ourselves into high-growth markets and also into higher-margin products. And so Erik's gonna show you how that's driving our growth further. And also lifting the margins of the company to make more— make a more valuable company. Just like I mentioned, a couple of stats. 19% of our sales in 2025 were from new products created over the past 5 years. We've launched and commercialized over 300 products over that period, in 5 years. We've got the pipeline, and there it is. 80% of our projects are developed with input from customers, and what they're asking for in many cases is sustainable solutions. So 67% of what's in that pipeline is something that's helping us save energy, our customers energy, recycling, some sort of renewable sustainable benefit.