MZ Investor Presentation

1
Investor Presentation
December, 2008
Helping the Worlds Leading Companies Make the
Worlds Favorite Products
2
Forward-looking Statements
see recent 10-Q for risks and uncertainties

Any forward-looking statements made at this
meeting by their nature involve risks and
uncertainties that could significantly impact
operations, markets, products and expected
results. For further information, please refer
to the Cautionary Statement included in our most
recent Form 10-Q on file with the Securities and
Exchange Commission.
3
Milacron A World Leader in
PLASTICS PROCESSING
85 of revenues Broadest line
supplier of equipment, supplies and services
All 3 major processing methods injection,
blow molding, extrusion Machinery sales 1
in North America 4 in Europe Mold
technologies 1 in North America
INDUSTRIAL FLUIDS
15 of revenues Water-based and oil-based
coolants, lubricant and
process cleaners Used in metal cutting and
metal forming Water-based fluids 1 in
North America 2 in Europe
Plastics Machinery
IndustrialFluids
Plastics Parts Services
Mold Technologies
4
Diverse Customer Base
with growing global presence
2008 Orders YTD through Q3 587 Million
Other
Custom Molders
Packaging
Medical
44
United States
15
Electrical / Electronic
Asia ROW
8
33
Consumer Goods
Automotive
Europe
Canada Mexico
Building Materials
Appliances
Industrial
5
Strong Global Brands
125-year-old reputation for quality and
reliability
Worldwide Name Recognition
6
Who We Are What We Do
Milacron behind products you see and use
every day
Slogan Helping the Worlds Leading Companies
Make the Worlds Favorite Products
materials
consumer
electronics
industrial
medical
automotive
packaging
48
Value Proposition Technology and Service
7
Market Macro Overview
Helping the Worlds Leading Companies Make the
Worlds Favorite Products
8
Plastics The Material of Choice
the conversion of materials continues unabated
IndexedBy Weight
Plastics
CAGR 1970-2007Steel 2.2 Aluminum 3.8
Plastics 6.0
Aluminum
Steel
Source Society of the Plastics Industry and
Milacron Inc.
9
Plastics Declines Since Mid 2007
reflecting weakness in the auto and
construction sectors
Indexed2002 100
Source U.S. Federal Reserve Board
10
Plastics Projected World Consumption
Asia fastest growing, but Europe/Americas still
large markets
per capita demand in kg
4.2
3.6
6.2
1980 2005 2015
1980 2005 2015
Western Europe
North America
1990 2006 2015
Asia ex. Japan
Source BASF, VKE 2008
11
Growth in Plastics Automotive
Average Kg / Car
4 CAGR
Source APME, Bayer Research, Rhodia Polyamide
12
Growth in Plastics Packaging
13
Growth in Plastics Building Materials
In billions of lbs.
9.3 CAGR
Source Freedonia Group, Composite Plastic
Lumber Study, February 2006
14
Growth in Plastics Health Care
In billions
9.2 CAGR
Source Freedonia Group, Reed Life Sciences
15
Plastics Machinery Markets
plastics processing equipment and systems
Estimated Global Market - 16 Billion
40InjectionMolding
60Asia
20Other
20Europe
20Extrusion
20BlowMolding
15NorthAmerica
5ROW
Projected Annual Growth Rate 3.5 to 19
Billion in 2009
Sources Fredonia, Milacron
16
Mold Technologies Markets
products and supplies for injection mold makers
Estimated Global Market - 2.7 Billion
25Components
25Americas
35Mold Bases
25Europe
25Hot Runners
50 Asia
10Supplies
5Controls
Average Annual Growth Rate 2.5 to 3
Source Milacron Inc.
17
Metalworking Fluids Markets
most end-markets have GDP growth rates
Estimated Global Market - 2.4 Billion
20Semi-Synthetic
37Asia
20Soluble Oil
30Europe
15Synthetic
45Straight Oil
32Americas
5ROW
Average Annual Growth Rate 2.5 to 3
Sources Frost Sullivan Milacron Inc.
18
Cyclicality of the Machinery Market
extended boom cycle followed by extended bust
In millions
Tech bubble,Y2K build up.
Oil prices soar. US Big 3 auto woes. New
housing bust.
Worldwide resin shortage.
Steepest decline,longest trough.
9/11/2001. War in Middle East.
Credit crunch.
Source The Society of the Plastics Industry
Through September 2008
19
Current Impact of Used Equipment
glut of used machines can hurt new machine sales
12/12 Rate-of-Change in Units
UCC Used Machinery
v. SPI Reported Shipments
UCC Used Machinery (through 07/08)
SPI Reported Shipments (through 09/08)
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
2006 2007 2008
Source SPI EDA UCC Filings
20
Plastics Machinery Industry News
a flurry of activity in 2007 and into 2008
2007
2008
?
21
Plastics Machinery Industry News
activity continues strong in 2008
2008
October
Sumitomo announced that Demag Plastics Group is
now known as Sumitomo-Demag Plastics Machinery.
October
JSW announces plans to invest in Japanese rival
Meiki Co. Ltd. For technology exchange.
October
Husky takes no machines to Fakuma Injection
Machinery Tradeshow officially announced
discontinuation of large tonnage injection
machinery models.
October
Industrial Growth Partners of San Francisco
purchased Xaloy. Ron Auletta named to replace
Walter Cox.
22
Operating Results Strategy
Helping the Worlds Leading Companies Make the
Worlds Favorite Products
23
Sales Growth Has Stalled
held back by declines in North America and
Western Europe
In millions
24
Milacrons Growth Strategy
sustainable profitability through long-term
growth
PROFITABLE GROWTH
TACTICS Cost Reductions Lean Initiatives Global
Sourcing
REVENUE
RETURN ON INVESTMENT
25
Aftermarket Growth
better margins and solid, dependable growth
Milacron Machinery Aftermarket Sales
2007 Sales 808 Million
In millions
5 CAGR
25 Aftermarket
42Machinery
Mold Tech 18
15 Fluids
26
Growth in Emerging Markets
investment in expanded distribution paying off
Milacron Sales to Emerging Markets
187
14 CAGR
147
137
129
109
97
27
New Injection Molding Systems
Innovative Solutions
advanced technologies make our customers more
productive

• All-electric injection molding for major
  energy savings and clean-room
  production
• Multi-material injection molding
  capabilities
• In-mold labeling and assembly

28
New Blow Molding Systems
an industry first all-electric blow molding by
Milacron

• All-electric blow molding system for
  energy savings and greater
  precision/repeatability
• Clean blow technology to help extend
  shelf life
• Multi-layer blow molding for durability
  and lower cost
• Blow molding systems for case-less
  plastic milk jugs stackable and
  waste-eliminating

29
New Extrusion Systems
Innovative Solutions
wood-fiber composites made of sawdust and
recycled plastic

• Leading twin-screw extrusion technology
  to process PVC and wood- flour
  composites
• Advanced systems to extrude PVC pipe,
  window and door profiles, vinyl siding, etc.
  
• Single-screw extruders for many markets
  such as sheet, profile and pipe
• Replacement barrels and screws for all
  makes of extruders

30
New Mold Technologies Products
mold runner systems for new products and
applications

• First cold deck runner system in U.S. for
  liquid silicone rubber molding, a
  market with current double-digit growth
• Hot runner systems customized for crate
  and container molding
• Hot runners for molding PLA (polylactic
  acid), a starch-based, renewable,
  biodegradable polymer

31
New Industrial Fluids
Innovative Solutions
environmentally friendly bio-stable fluids and
high-performance fluids
In thousands
2006
2007
In thousands
2007
32
Financials
Helping the Worlds Leading Companies Make the
Worlds Favorite Products
33
Four Reporting Segments

• Machinery Technologies Europe
• Sales 132 M
• EBIT (1.9) M
• Injection molding, blow molding and extrusion

• Mold Technologies Global
• Sales 110 M
• EBIT 2.2 M
• Mold bases, hot-runner systems, mold parts,
  MRO supplies

2008 Sales YTD through Q3 614 Million
Machinery Technologies - North America
22
18

• Industrial Fluids Global
• Sales 100 M
• EBIT 10.9 M
• Metalworking fluids, solvents and process
  cleaners

16

• Machinery Technologies North America
• Sales 280 M
• EBIT 19.2 M
• Injection molding, blow molding and extrusion

44
Segment EBIT excludes restructuring and
other non-recurring costs.
34
Bridge YTD Q3 2007 to YTD Q3 2008
In millions
In millions
Excludes restructuring, refinancing and other
non-recurring costs.
35
Capitalization as of September 30, 2008
In millions
36
Free Cash Flow
managing cash is a top priority
In millions
(1) Excludes restructuring and other
non-recurring costs. (2) See quarterly
earnings releases for details.
37
Liquidity
maintaining good flexibility
In millions
38
Capital Spending
reducing our investment requirements
From Continuing Operations
In millions
39
Appendix
Helping the Worlds Leading Companies Make the
Worlds Favorite Products
40
2008 Q4 and Year Guidance
last updated November 5, 2008
See next slide for footnotes and explanations.
41
2008 Q4 and Year Guidance - Notes
last updated November 5, 2008
NoteThe preceding amounts are approximate
working estimates, around which an even wider
range of numbers could be used for financial
modeling purposes. These estimates, by their
nature, involve a great number of risks and
uncertainties. Actual results may differ as these
risks and uncertainties could significantly
impact the company's markets, products, and
operations. For further information please refer
to the Cautionary Statement included in Item 2 of
the company's most recent Form 10-Q on file with
the Securities and Exchange Commission.
Footnotes 1. Sales in quarter ended December 31,
2008 decreased approximately 5 million over the
same periods a year ago due to the strengthening
of the dollar. Sales in year ended December 31,
2008 increased approximately 22 million over the
same periods a year ago due to the strengthening
of the euro. 2. Loss after tax includes 0.6
million and 2.5 million of non-cash expense
related to the U.S defined benefit plan in
quarter ended and year ended December 31, 2008,
respectively. 3. Per share amounts include
accruals for preferred dividends and effect of
beneficial conversion feature. 4. Primary
working capital inventory receivables - trade
payables - advance billings.
42
Five-Year Financial Summary
Excludes restructuring and refinancing charges,
and the writedown of goodwill and deferred tax
assets.
43
Borrowing Capacity
credit facility provides operational flexibility
In millions
2007
2008
Net of letters of credit and block
44
Major Debt Terms

• 225 M Senior Secured 11½ Notes due May 2011
• First priority lien/pledge on
• Property, equipment, fixed assets and certain
  intangibles
• 100 capital stock of all domestic subsidiaries
• 65 capital stock of certain non-U.S.
  subsidiaries
• Second priority lien on ABL-secured assets
• Standard high yield covenants
• Guarantees substantially all wholly owned
  domestic and Canadian subsidiaries and Milacron
  Capital Holdings B.V. on a senior basis
• 105 M ABL due December 2011 General Electric
  Capital Corporation
• Borrowing base 85 eligible AR 35
  approximately eligible inventory
• Libor 150-250 bps or Index 50-150 bps
• First priority lien on AR, inventory and other
  current assets
• Second priority lien on bond-secured assets
• No performance covenants as long as minimum
  availability maintained
• Guarantees substantially all wholly owned
  domestic and Canadian subsidiaries

• 27 M ABL due March 2013 Lloyds TSB Group
• Asset-secured loans sale of receivables program
• Euribor 175-200 bps
• Covenants fixed charge ratio 11 in Europe
  minimum TNW for German borrower

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Reconciliation EBITDA to Net Loss
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Thank You!
Helping the Worlds Leading Companies Make the
Worlds Favorite Products