W. R. Grace & Co./media/Files/G/Gcp-Applied... · 2017-06-05 · 1 LTM ended 30 -Jun 2015. 2 GCP...

November 3, 2015

W. R. Grace & Co.

Analyst Teach-In on

GCP Applied Technologies

Cambridge, MA

Facility Tour

Disclaimer

Statement Regarding Safe Harbor For Forward-Looking Statements

This presentation contains forward-looking statements, that is, information related to future, not past, events. Such statements

generally include the words “believes,” “plans,” “intends,” “targets,” “will,” “expects,” “suggests,” “anticipates,” “outlook,” “continues”

or similar expressions. Forward-looking statements include, without limitation, expected financial positions; results of operations;

cash flows; financing plans; business strategy; operating plans; capital and other expenditures; competitive positions; growth

opportunities for existing products; benefits from new technology and cost reduction initiatives, plans and objectives; and markets

for securities. For these statements, Grace claims the protection of the safe harbor for forward-looking statements contained in

Section 27A of the Securities Act and Section 21E of the Exchange Act. Like other businesses, Grace is subject to risks and

uncertainties that could cause its actual results to differ materially from its projections or that could cause other forward-looking

statements to prove incorrect. Factors that could cause actual results to materially differ 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 and energy; the effectiveness of its research and development and growth investments; acquisitions

and divestitures of assets and gains and losses from dispositions; developments affecting Grace’s outstanding indebtedness;

developments affecting Grace's funded and unfunded pension obligations; its legal and environmental proceedings; uncertainties

that may delay or negatively impact the spin-off or cause the spin-off to not occur at all; uncertainties related to the company’s

ability to realize the anticipated benefits of the spin-off; the inability to establish or maintain certain business relationships and

relationships with customers and suppliers or the inability to retain key personnel following the spin-off; costs of compliance with

environmental regulation; and those additional factors set forth in Grace's most recent Annual Report on Form 10-K, quarterly

report on Form 10-Q and current reports on Form 8-K, which have been filed with the Securities and Exchange Commission and

are readily available on the Internet at www.sec.gov. Reported results should not be considered as an indication of future

performance. Readers are cautioned not to place undue reliance on Grace's projections and forward-looking statements, which

speak only as the date thereof. Grace undertakes no obligation to publicly release any revision to the projections and forward-

looking statements contained in this announcement, or to update them to reflect events or circumstances occurring after the date

of this announcement.

Non-GAAP Financial Terms

These slides contain certain “non-GAAP financial terms” which are defined in the Appendix.

Reconciliations of non-GAAP terms to the closest GAAP term (i.e., net income) are provided in the Appendix.

2 © 2015 W. R. Grace & Co. | Confidential

http://www.sec.gov/


9:15 a.m. Welcome and Overview

9:45 Construction and Packaging Overview

11:15 Break

11:30 Working Lunch (Q&A)

12:45 p.m. Specialty Construction Chemicals and

Specialty Building Materials Laboratory Tours

2:00 Adjourn

Agenda

Welcome and Overview


Strong Track Record of Shareholder Value Creation

Separation is the next step in shareholder value creation

Since 2003…

Increased market cap by more than $6.0 billion

Grew sales and gross margin:

Upgraded the quality of our business portfolio

Successfully completed 22 acquisitions and 6

divestitures

Tripled sales in emerging regions

Significantly improved profitability, cash flow

and ROIC:

2014 Adj. EBITDA margins of >23%

2014 Adj. Free Cash Flow of >$450 million

2014 Adjusted EBIT ROIC >30%

Returned ~$1 billion of capital since emergence:

Completed $500 million share repurchase program

Completed $490 million warrant settlement

Announced second $500 million share repurchase

program

1,848 2,590

3,243

29.7%

34.1% 38.5%

0%

10%

20%

30%

40%

$0

$1,000

$2,000

$3,000

$4,000

Segm

en

t G

ross M

argin

Ne

t Sa

les

($M

M)

252 379

763

13.6% 13.4%

23.5%

0%

5%

10%

15%

20%

25%

$0

$200

$400

$600

$800

Ad

j. EBITD

A M

argin

Ad

j. E

BIT

DA

($

MM

)

14.6%

23.3%

31.2%

0%

5%

10%

15%

20%

25%

30%

Ad

j. E

BIT

RO

IC

* Excludes sales from ART JV which was deconsolidated in December 2009.


2003 2009 2014

Construction Products and

Darex Packaging Technologies

Global leader in specialty construction chemicals,

specialty building materials, and packaging technologies

Leverage independent company platform and strong

cash flow to accelerate growth in global markets

Sales and marketing focus with strong technical sales

and service component

Less capital intensive, simpler manufacturing operations

Catalysts Technologies and

Materials Technologies

Global leader in process catalysts and specialty silicas

High margin, technologically advanced business

focused on growth, margin expansion and strong

cash flow

Manufacturing and technology focus with strong

technical sales and service component

More capital intensive, complex manufacturing

operations

Creating Two Industry-Leading Public Companies

“New Grace” “New GCP”


Sharpened strategic focus, simplified operating structures,

and more efficient capital allocation and capital structures

Compelling Rationale for Spin-Off

Enhanced

Strategic Focus

Two strong, focused

operating companies:

Industry-leading market and

technology positions

Strong free cash flow

High returns on invested

capital

Positioned to capture

distinct growth opportunities

More efficient capital

allocation:

Investment decisions optimized

at each company

Simplified

Operating Structure

Compelling growth and

margin profiles

Simplified operating

structures:

Improved management focus

Cost productivity and

optimized functional support

Strong leadership teams

focused on value creation

Strong

Financial Profiles

Optimized capital structures

Financial flexibility to

pursue growth and M&A

opportunities

Two unique and compelling

investment opportunities:

Simpler investor thesis

Distinct investment identity


Separation expected to increase shareholder value

Pro Forma Highlights for GCP Applied Technologies


SEC-compliant pro formas:

Adjustments reflect major elements of the separation (see below)

Pro formas are not projections of what GCP results would have been or will be

Pro forma earnings not the same as Adjusted EBIT

Significant adjustments:

GCP to borrow ~$810 million of new debt at assumed 6.5% interest rate

GCP pays ~$750 million to Grace to reduce Grace debt

Grace transfers pension assets and liabilities for active employees

~$43 million net liability to GCP

Tax adjustments:

Pro forma financials have been adjusted at the GAAP tax rate

The adjusted tax rate is still expected to be 25%-30%

Pro forma adjustments do not affect Adjusted EBIT

Source: GCP Form 10 (Amendment filed November 2, 2015)

9

A look at

GCP Applied Technologies

© 2015 W. R. Grace & Co. | Confidential

Residential $1.5 bn

Building Envelope $1.5 bn

Specialty $0.5 bn

$3.5

Billion1 Concrete Additives $6.8 bn

Cement Additives $1.0 bn

$7.8

Billion1

Coatings $2.6 bn

Sealants $0.6 bn

$3.2

Billion1

Strong Position in $14.5B1 Market

Specialty Construction Chemicals Specialty Building Materials Darex Packaging Technologies

#1 in Cement Additives

#2 in Concrete Admixtures

Diverse portfolio of attractively positioned businesses

Strategically located in key geographic areas

Highly cash generative business with a history of profitable growth

Extensive and specific customer service to drive productivity

and value to customers throughout value chain

GCP Q2 LTM2 Financial Snapshot

Revenue: $1.4bn

Adj. EBITDA: $231.5mm

Adj. EBITDA Margin: 16.5%

Capex as % of Sales: 2.3%

1 GCP Applied Technologies internal estimates. 2 LTM ended 30-Jun-2015.

A Global Leader in the Specialty Construction Products

and Packaging Technology

#1 in Can Sealants #1 in Bonded Pre-Applied

Waterproofing Membranes


Market

Leadership

Flexible

Global

Operations

End market

Diversity and

Customer

Loyalty

Strong Free

Cash Flow

Generation

Technology

Leadership

Proven commitment to technology leadership and innovation

Over 800 patents and widely recognized trademarks

Dedicated team of ~200 R&D professionals

Low capital intensity supported by diversified product portfolio

Experienced management team with a proven track record of

performance across business cycles

74 manufacturing and technical facilities across 40 countries

$100mm+ operating cash flows¹

Darex provides stability to the cash flow

profile

Low capex less than 4% of sales

~66% of our sales come from #1 or #2

products¹

1

2

3

4

5

Strong relationships that have spanned decades with

blue-chip customers

No single customer composes greater than 5% of sales

Global base with customers across 110 countries

1 GCP Form 10 (02-Nov-2015)


A Global Leader in the Specialty Construction Products

and Packaging Technology

1 LTM ended 30-Jun-2015. 2 GCP Applied Technologies internal estimates.

3 IHS Global Construction Outlook, Q2 2015. 4 Adj. EBITDA excludes corporate cost allocation to business segment.; total GCP corporate cost was ~$100mm for the Q2-2015 LTM period. 5 Segment Capex does not include allocation of corporate capex.

Cement Additives

Concrete Admixtures

Building Envelope

Residential Products

Specialty Construction Products

Sealants

Coatings

Segment Size $7.8bn2 $3.5bn2 $3.2bn2

Approx.

Growth Rate 3 - 4%3 3 - 4%3 2 - 3 %2

Applications

Cement

Concrete

Mortar

Masonry

Membrane systems and other

products that protect structures

Products for leak-sealing

applications

Sealants and Coatings for

consumer and industrial

applications such as:

Food, beverage, aerosol and

industrial metal packaging

Metal beverage crowns, aluminum

and plastic closures

Financial

Highlights

LTM1

$676mm net sales

$118mm Adj. EBITDA4

Adj. EBITDA 17.4% Margin4

Capex % of Sales5: 3.2%

Adj. EBITDA net of Capex5: 96mm

$391mm net sales

$120mm Adj. EBITDA4



Adj. EBITDA net of Capex5: $114mm

$339mm net sales

$95mm Adj. EBITDA4



Adj. EBITDA net of Capex5: $89mm

Specialty Construction

Chemicals

(48% of Sales1)

Specialty Building

Materials

(28% of Sales1)

Darex Packaging

Technologies

(24% of Sales1)

Diverse Portfolio of Attractively Positioned Global Businesses


Grace Ice & Water

Shield Roofing

underlayment,

Vycor® window

and door flashing

Specialty products to

improve durability and

life span

Pieri® products to

make decorative

concrete

PREPRUFE® and

BITUTHENE®

waterproofing

membranes,

MONOKOTE® fire

protection, PERM-A-

BARRIER® wall flashing

and spray applied wall

membrane and vapor

barrier

Specialty

Construction

Chemicals

Specialty chemical

additives (CBA®,

ADVA®, STRUX®) to

improve properties of

cement and concrete

materials

Darex Packaging

Technologies

BITUTHENE®

Bridge deck

waterproofing

Closure Sealants

Chemical Protection

Mechanical Protection

Other Functionalities

Prevent interaction

between metal and

contents

Easy removal of

contents (e.g. meat

release)

Oxygen scavenging

Heat Seal

Protection against physical

abuse (scratching)

Protection against

environment

Specialty

Building

Materials

Typical Product Applications in Growing Segments


Assets in Attractive Locations

Global Headquarters

Countries with Offices or Plants

Other Facilities

Key Manufacturing Facilities

Cambridge, MA

Epernon, France

Mount Pleasant, TN

Hamburg, Germany

Santiago, Mexico

Singapore Dubai, UAE

Chicago, IL

Sorocaba, Brazil

Bangpoo, Thailand

Brisbane,

Australia

Facilities in over 40

countries on six continents

74 manufacturing and

technical sites worldwide

~2,400 employees as of

Dec 31, 2014

Global Presence

Ezhou, China

Manufacturing Synergies

~2/3 of Darex’s

manufacturing facilities

overlap with SCC’s

Houston, TX

Passirana, Italy

Q2 2015 LTM1 Sales by Region

37%$0.5B

26%$0.4B

25%$0.4B

12%$0.2B

North America

Europe, Middle

East, Africa

Asia Pacific

Latin America

$1.4 billion

1 LTM ended 30-Jun-2015.

14

Maintain Strong

Customer Focus

Increase Cash Flows

Through Disciplined

Capital Deployment

Disciplined Acquisitions

Maintain and Enhance

Strong Market Position 1

2

3

4

5

Deliver Long Term

Value to Stakeholders

Utilize global footprint to increase geographic

and customer penetration

Targeted investments focused on customer

engagement and geographic expansion

supported by current trends

Bolt-on acquisitions and alliances to increase

global presence and capture production

synergies

Deploy Darex’s strong cash flow to capture

growth opportunities

Margin expansion through product

innovation, productivity and competitive

differentiation

Drive efficient asset utilization and working

capital management

Design and market solutions to improve

customer performance and productivity

Formulate tailored products designed to fully

integrate into our customer processes

Disciplined investment in R&D, operations,

sales and service, and strategic acquisitions

Drive cash flow and return on invested capital


Our Business Strategy

Key Summary Points

Creating two strong, independent companies with:

Improved strategic focus

Simplified operating structures

More efficient capital allocation and capital structures

Time is right to create two industry leading companies

Transaction targeted to be complete in 1Q16

CEO, CFO, VP Corp Strategy announced, rest of team to be named 4Q15

Form 10 filed August 5, 2015 with amendments filed September 28, 2015

and November 2, 2015

The Time is Right…


Construction Products

Overview


Specialty

Construction

Chemicals


Mercedes-Benz Stadium (Atlanta, Georgia)

Maracanã Stadium (Brazil)

Why does concrete crack?


Specialty Construction Chemicals (SCC)

Chemicals to Improve the Performance of Cement-Based Materials

Fundamental Business Drivers

Cement and Concrete are produced in greater

volumes than any other manufactured materials

- Cement Production: 4.3 billion tons/yr

globally

- Concrete production: 10 billion cubic

yards/yr globally

Concrete is the primary construction material

used for building infrastructure globally

Chemical additives make cement-based

materials easier and cheaper to install, more

durable, with less impact on the environment

Specialty Construction Chemicals (SCC)


2014 Business Profile

Two core product lines: Concrete Admixtures and

Cement Additives

Major technology platforms: concrete water

reducers (water soluble polymers) and cement

quality improvers (higher amines)

Global customers and markets

#1 globally in cement additives

#2 globally in concrete admixtures

SCC Global Strategy

Market-driven development of innovative technologies

Rapid deployment of new products globally

Market expansion as regions adopt modern cement

production facilities and ready mix concrete

Continuous optimization of supply chain costs

Concrete Construction Value Chain

We create value throughout the concrete construction ecosystem, but focus

primarily on value creation with cement manufacturers and concrete producers.


A strong sales, manufacturing, and technical presence in key global markets

Specialty Construction Chemicals: Global Footprint

Key SCC markets

shaded in blue


Cement Additives


A leader in the cement additives technology for 80 years

Projects: Some of the world’s

most prestigious

structures

Customers: Cement companies

(multinationals,

regional players)

Users: Cement plants

Typical output: 1 million tons/year

Plants: 100 in the U.S.

Products: Grinding Aids

Quality Improvers

Art Science Museum (Singapore)

Concrete Admixtures

Projects: Some of the world’s most

prestigious structures

Customers: Multinational building

materials companies,

regionals, local concrete

producers

Users: Ready-mix concrete plants

Typical output: 50,000 yd3/year

Cement

consumption:

15,000 tons/year

Products: Water reducers

Admixtures for self-

compacting concrete

Air entraining agents

Set accelerators and

retarders

Corrosion inhibitors

Shrinkage reducing agents

Structural fibers


Ponte Estaiada (Sao Paulo, Brazil)

Research & Development Laboratories

Chemistry and Material

Sciences

Market and Customer Insights

Translating Leading Science into High Value Solutions

Polymer Synthesis

Nanoscience

Formulation Science

Fiber Engineering

Rheology Control

Cement Chemistry

Civil Engineering

Petrography

Fracture Mechanics

Thermal Analysis

Testing

Market Knowledge

Needs Assessment

Design Specifications


New Products in Test Market Phase


In-transit concrete management system Superplasticizer for Ready Mix Concrete

Mid-range water reducer for Ready Mix Concrete Superplasticizer for Precast Concrete

Full shotcrete system offering with

strong differentiated products…

…being validated in test market

and existing markets

Offering launched into the test area

Added field technical resource

Leveraging existing commercial team

Extending Leadership to Underground Construction

TYTRO® RC

STRUX ® BT50 TYTRO ® SA


Key Advances in Cement Additives

CBA®

Quality improvers

developed and

patented

ESE®

Non-chloride early

strength enhancers

introduced

Glyzana®

Cost-efficient grinding aid

based on renewable

source


Why We Win – Technology and Capabilities

World-class R&D facilities in

Cambridge, MA

Disciplined stage-gate

process

Robust product pipeline

Joint development

relationships

Leading position in key

markets

Effective, customer focused

organization

Strong partnerships

Targeted offerings

Regional laboratories and

technical service centers

close to customer base

Best-in-class field support


World-class Technical Service Capabilities

Field Analytical

Co

nc

rete

C

em

en

t


Innovation

Technological

changes

Market

dynamics

Customer

trends

Economic

drivers

Regulatory

What is in Store?

Our cement and concrete customers will

continue to seek operational savings

and better quality assurance

Environmental pressures will create

change in materials selection, materials

availability, and process technologies


The drive for life-cycle costing and

performance specifications will place a

greater premium on high-quality durable

concrete

Breakthroughs in cement chemistry,

materials science, and nanotechnology

will create new opportunities to solve

problems

Specialty

Building

Materials


Guggenheim Museum Bilbao (Spain)

Space Mountain (Hong Kong Disneyland)

33

Balcony Protection

• Silcor® Liquid Waterproofing

• Bituthene® Sheet Membranes

Green Roofs & Hardscape


• Bituthene® Sheet Membranes

• Pieri® Architectural Concrete

Roof

• Grace Ultra® Roofing Underlayment

• Grace Ice & Water Shield Underlayment

External Walls

• Perm-A-Barrier ® Weather Barriers

• Pieri® Architectural Concrete

Steel Structure Fire Protection

• Monokote® Spray-Applied Thermal Protection

Water Features & Pools


• Betec® Cementitious Waterproofing

Substructure Waterproofing

• Preprufe® Pre-applied Waterproofing Membranes

• Bituthene® Post-applied Waterproofing Membranes

• Hydroduct® Drainage Composites

• Adcor ® Hydrophilic Waterstops

• De Neef ® Resin Injections

Technology Leadership: Specialty Building Materials Portfolio

Core Brands

Waterproofing

Global leader in the advancement of waterproofing technologies

Preprufe® – Leading below-grade solution with a full line of accessory products. Pioneer of the

fully bonded preapplied waterproofing technology

Silcor ® – Liquid applied deck waterproofing

Bituthene® – Original rubberized asphalt self adhesive membrane

Adcor ® and Bentorub® – Hydrophilic waterstops for joint protection

Air Barriers

Specified barriers to manage movement of air, water and vapor through the building

envelope to improve energy use and indoor air quality

Perm-A-Barrier® – full line of vapor permeable and impermeable sheet and liquid applied

products

Residential

North America focused business providing Weather Protection Systems in specific channels

to improve the durability of wood constructed homes

Grace Ice & Water Shield® – category leading self adhesive underlayment for sloped roofs

Vycor ® – flashing and sheet membranes to protect and manage moisture in the wall


22%

36%

42%

Below-grade Waterproofing

Improved leak prevention through unique

adhesive bond

Specified on major projects throughout the world

Drives full portfolio system selling

Preprufe Plus increases quality and contractor

productivity

Patented technology

The Premier Pre-Applied

Waterproofing System

Below-grade Waterproofing Market

Asia Pacific

EMEA

Americas

Museum of Islamic Arts

(Doha, Qatar)


The Morocco Mall

(Casablanca, Morocco)

Preprufe®

PLUS


https://grace.com/construction/en-us/Pages/preprufe-videos.aspx

https://grace.com/construction/en-us/Pages/preprufe-videos.aspx

Specialty Businesses

Pieri ®

Polyurethane resins for crack injections

Ground stabilization and curtain grouting with PU,

Acrylate, Organomineral and Silica/ Silicate based

products

De Neef ®

Betec®

Monokote® - the world's most widely specified spray

applied cementitious fireproofing

Growing in new specialty applications for petrochemical

and tunnels

Fire Protection

Specializing in flowable high-strength grouts for

industrial and infrastructure applications

Growth in new segments for wind turbine construction

and specialty niche grouting applications

High technology surface retarders, release agents,

pigments and form liners

Thin toppings for interior applications with Solacir ®

High-quality

engineered

cementitious

grouts and

mortars

Resin injections

for leak sealing

and ground

stabilization

Decorative

treatments

for concrete

Spray applied fire

protection for

structural steel


Project Selling Principles

Balcony

• Betec® Cementitious Waterproofing

• Procor® Liquid Waterproofing

Flat Deck

• Bituthene® Post-applied

Waterproofing

Membrane

• Betec Cementitious

Waterproofing

• Procor Liquid

Waterproofing

• Decorative Concrete

Substructure

• Preprufe 300R Waterproofing

Membrane

• MIRA® Mid-range Water Reducer

• STRUX® Synthetic Macro Fibre

Roof

• Grace Ice & Water Shield® Roofing

Underlayment

• Tri-Flex® Roofing Underlayment

External Wall

• ADVA® for Self-consolidating

Concrete

Interior Floor

• Decorative

Concrete

Steel Structure

• Monokote® Fireproofing

Wet Areas

• Betec Cementitious Waterproofing

Swimming Pool

• Betec

Cementitiou

s

Waterproofin

g

Lift Pit

• Betec Cementitious

Waterproofing

• Monokote Fireproofing Substructure

• Preprufe® 160R Pre-applied

Waterproofing Membrane

• Bituthene Post-applied

Waterproofing Membrane

• Procor Liquid Waterproofing

• Hydroduct® Drainage Composites

The Grace Building Envelope

Technology Platforms

Technology solutions

Systems approach

Command of local codes and

construction practice

Custom specifications and

drawings

Value Drivers

Fireproofing

Bidding

Contractors

Geotech

Structural

Engineer

Civil

Engineer

General

Contractor

Architect

Project Selling Competency

Market/project intelligence throughout

design and construction

Executive selling to

influencers and decision makers

Project Tracking – CRM

Consistent linkage throughout value

chain

International Dimension

Global designs with local

execution

Unique position to assure

designers of correct

implementation

Leverage brand awareness

Drive geographic expansion

Precast

Ground Works

Concrete

Client

Waterproofing


Innovation

Technological

changes

Market

dynamics

Customer

trends

Economic

drivers

Regulatory

What is in Store?

Increasing Urbanization requires cities

to maximize land use driving taller

buildings and underground structures

Maturing Emerging Markets improve

construction practices upgrading build

quality


Environmental focus creates increasing

opportunities for energy savings and low

impact products

Demand for Construction Speed opens

opportunities for new technologies and project

delivery methods

Darex

Packaging

Technologies


Darex History

Acquisition of

SBK Coatings

MT

2010

BPA-NI

Launched


Darex invented flowed-in sealant and has grown through acquisitions

Solvent-free

can sealant

Solvent-free

can sealant

A

Can Sealants

#1 global can sealant supplier

Serves food, beverage, aerosol and general line metal packaging industries

− Ensures quality in over 300 billion food and beverage cans annually

Only supplier with both solvent and water based sealants

Developed “flowed-in” gasket technology

Best-in-class products and technical support

Major competitors: Altana (Actega), UBIS, Wakol-Foreco

Closure Sealants

Leader in closure sealants for taste sensitive beverages

− Crown, aluminum, and plastics applications

− Provider of PVC and PVC-Free technologies

Strong technology and market position

− Oxygen scavenger sealants for sensitive beverages e.g. Beers / Juices / Nutritional drinks

− Scavenger additives and master batch solutions for synthetic corks and 1 piece closures

Major competitors: Altana (Actega), D-Plast, Self-Manufacturers

Can Coatings

Global sales, manufacturing, and technical support footprint

Leverages strength across segments for unparalleled regulatory and food law compliance knowledge

Strong technology position in BPA-NI can coatings

Strong technology position in aluminum monobloc coatings through Sistiaga® acquisition

Major competitors: Valspar, PPG, Akzo Nobel, Metlac

Darex Product Lines and Business Dynamics


Can Sealants

Coatings

Supply Chain in the Packaging Industry

Metal Producers Retailers


Consumers

Raw Materials

Rubber

Latex

Resin

Pigment

Solvent

Polymer

Sealants and Coatings are a small cost (<5%) of the package,

but vital to its performance

Can Makers Brand Owners

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCLqgq5CKw8gCFUWCPgodRBQMbQ&url=http://www.iccnc.org/event/food-drive-oakland-school-children-persian-new-year-celebration/&psig=AFQjCNEFUR97w281-7NTS0UUN0xRkxIolg&ust=1444950449192210

Can End Can Body

Flange

(Curl)

Primary

Sealing

Area

Bacteria,

Oxygen,

Moisture Container content–

Food, beverage,

oils, solvent, gases

Must have sufficient chemical resistance to the pack

Must have sufficient thermal and mechanical resistance to

withstand the retort or processing conditions

Must not affect the aroma or flavor of the pack contents

Sealant protects the package during the life of the can

Where applicable, must be food law compliant

Can Sealants Basics

Key Requirements

Provide hermetic seal by filling the void created in double-seam


Can Coatings Basics

Protect contents from the environment, and the pack from the contents

Chemical Protection

Mechanical Protection

Decoration

Other Functionalities

Prevent interaction between

metal and contents

Easy removal of contents

(e.g. meat release)

Oxygen scavenging

Heat Seal

Improved can

appearance

Primer for inks

Key Requirements

Flexible and spread evenly

Resist physical deformation

during fabrication of container

Must not impart any flavor

Perform for the whole shelf life

of the container

Comply with global food laws

Protection against physical

abuse (scratching)

Protection against environment


Most metal containers and lids must be coated, internally and externally

Closure Sealants Basics

Provides pressure seal

Prevents oxygen, bacteria from

coming in

Provide hermetic seal, filling natural voids between container and closure

Fills voids

Contents stay in the package

Closure Type Plastic Cap Metal Crown Lug Cap Roll-on Pilfer Proof

(ROPP)

One piece Plastic

Cap

Major End Use Carbonated Soft

Drink (CSD), Water

Carbonated Soft

Drink (CSD), Beer Glass Food Jars

Water (Germany),

Spirits, Wine PET Food Jars

Darex Sales Sealant Sealant and Coating Sealant and Coating Sealant and Coating OST Masterbatch

Key Requirements

Must not impart any flavor

Have low chemical migration

Be lineable at very high speeds

Adhere to the metal/plastic

Perform for the shelf life of container

Be food compliant


Brand Owner Pull-Through is Key to Closure Sealant Strategy

For additional information, please visit grace.com or contact:

Tania Almond

Investor Relations Officer

+1 410.541.4590

[email protected]

Appendix: Definitions and Reconciliations of Non-GAAP Measures


“New Grace” Overview Global Leader in Process Catalysts and Specialty Silicas


“New Grace” Overview – Business Segment Detail


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“New GCP” Overview – Business Segment Detail


Appendix: Reconciliations of Non-GAAP Financial Measures (continued)


W. R. Grace & Co./media/Files/G/Gcp-Applied... · 2017-06-05 · 1 LTM ended 30 -Jun 2015. 2 GCP...

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Transcript of W. R. Grace & Co./media/Files/G/Gcp-Applied... · 2017-06-05 · 1 LTM ended 30 -Jun 2015. 2 GCP...