5 MINERALS TECHNOLOGIES INC. CHAIRMAN’S LETTER Specialty Minerals and Refractories—contributed to this outstanding  performance through record-breaking financial results.  BOTH BUSINESS  SEGMENTS—  Contributing to these financial results was excellent execution of our 2013  operating plan initiatives, which included  growth, return on capital, productivity  improvements, expense control, and safety. Since 2007, the company has improved  productivity by 5 percent compounded  annually and we kept our 2013 expenses flat with 2012 while continuing to grow our Asia positions profitably.  the second in Europe. The plant in China  is a joint venture agreement with Nanning  Jindaxing Paper Industry Co. Ltd. for  the construction of a 45,000-metric ton  satellite PCC facility at Jindaxing Paper’s  papermaking facility in Guangxi Province,  China. The satellite plant, which will  produce PCC for paper filling, will become  operational in the fourth quarter of 2014. The satellite facility in Europe is for paper  filling and is with a papermaker that wished  to remain unnamed for competitive reasons. In total, we are now constructing four  new satellite PCC plants in China. These  include the plant at Jianghe Paper in Henan  Province and the 100,000-ton coating facility  for Sun Paper in Shandong Province, both  of which we signed in the fourth quarter of  2012. Our growth in China will continue. We have developed the operational capability  through added resources to further expand  in this growing market.  During the year, we also began ramping up  three satellite facilities, two in India and one  in Thailand. MTI now has seven satellite  plants in China and 16 in Asia, which is  now second only to the 25 satellites we  operate in North America. In addition, our  North American PCC plant expansions are  moving forward and we expect them to be  contributing volume in 2014.  More recently, in early January, we  announced an agreement with UPM- Kymmene Corporation to build a satellite  PCC plant on site at UPM’s paper mill  in Changshu, China, located in Jiangsu  province. The satellite plant, scheduled to  begin operation early in 2015, will provide  PCC for paper filling and will have an initial  capacity of 100,000 tons.  The company’s safety performance  continued on a strong track in 2013. We achieved our lowest lost workday rate of 0.386 injuries per 100 employees, which is approaching world class safety  levels, and our recordable injury rate  declined from the previous year to 1.594  injuries per 100 employees. We are  committed to making MTI a safe working  environment for our employees. Our goal is  for our employees to go home each day after  work in the same condition they arrived.  MTI’s Return on Capital continued to  improve. Our return is now 9.5 percent  compared to 9.2 percent in 2012. The  company generated $138 million in cash  from operations and we repurchased $52  million of our shares during the year.  Let’s take a look at what drove our  outstanding 2013 performance. Our two  major strategies—geographic expansion and new product innovation—continue to  gain traction. In 2013, we signed contracts  for two new satellites, one in China, and * Bloomberg Method Accomplishments Return on Capital* Quarterly Underlying Sales Growth 10 5 ROC % 2010 2011 2012 2013 8.4 8.8 9.5 9.2 8% 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% Q2 Q3 Q4 Q1 -1% -2% 2% 4% 2% 4% 7% 6% Underlying Sales Growth Reported Sales Growth