Arkema Sa · EURONEXT:AKE
Arkema Sa — Investor Day (July 2017)
43 slides from Arkema Sa's investor day presentation, Jul 10, 2017
Slide 1: Capital Markets Day 2017
Slide 2: Advanced Materials
Advanced Materials Christophe André, Executive Vice-President Advanced Materials
Slide 3: It's an extreme world: customers have extreme demands
It’s an extreme world Customers have extreme demands Automotive Water Oil & Gas Electronics Batteries Lighter Microfiltration High pressure resistance Miniaturization Durability Higher temperature Extreme chemical Ultrafiltration Rapidity Safety performance resistance Higher production rate Miniatur
Slide 4: We design extreme performance
It’s an extreme world We design extreme performance 4 CAPITAL MARKETS DAY 10-11 JULY, 2017
Slide 5: Advanced Materials at a glance (2016)
Advanced Materials at a glance (2016) Key strengths Sales split €1.8 bn sales Leading positions (#1 to #3 worldwide) 25% 34% Europe World famous brands Asia and RoW North America 19.8% EBITDA margin Strong partnerships 41% with leading players in their markets 13.6% REBIT margin Large innovation pip
Slide 6: Our achievements in Advanced Materials since last Capital Markets Day
Our achievements in Advanced Materials since last Capital Markets Day Main projects achieved EBITDA EBITDA margin In €m Construction +15% 360 and start-up of new +160 bp molecular sieves 314 19.8% capacities at Honfleur 18.2% Expansion in Asia in Technical Polymers and Organic peroxides Divestment o
Slide 7: An innovation footprint close to our customers
An innovation footprint close to our customers 490 37% 40% 3.5% researchers PhDs. Group patents R&D efforts (% of sales) Verneuil (France) King of Prussia Seoul Kyoto Serquigny (South Korea) (Japan) (US) (France) Changshu Lacq (China) (France) R&D Footprint R&D centre Application development centre
Slide 8: A large innovation pipeline of sustainable solutions
A large innovation pipeline of sustainable solutions Rilsan® HT Kynar®-based membranes Pebax® Rnew® Sartomer N3xtDimension Lightweight materials in automotive Hydrophilic membranes Bio-based solutions for consumer 3D printing for water filtration applications (sports and electronics) Kynar® PVDF Kyn
Slide 9: Our long-term ambition (2023) for Advanced Materials
Our long-term ambition (2023) for Advanced Materials The leading innovative partner for extreme sustainable solutions 14% to 15% Target 5% 4% of sales organic sales growth R&D expenses REBIT margin at end of investment plan up to 8% in certain applications 9 CAPITAL MARKETS DAY 10-11 JULY, 2017
Slide 10: Our strategic priorities to achieve our ambition
Our strategic priorities to achieve our ambition Expand our positions Accelerate in selected fast growing growth high value markets in Asia Aeronautics Automotive 3D printing Polyamides Sartomer PVDF Water treatment Energy Electronics Sports Leverage Broaden our product portfolio partnerships with d
Slide 11: Our strategic priorities to achieve our ambition
Our strategic priorities to achieve our ambition Expand our positions Accelerate in selected fast growing growth high value markets in Asia Aeronautics Automotive 3D printing Polyamides Sartomer PVDF Water treatment Energy Electronics Sports Leverage Broaden our product portfolio partnerships with d
Slide 12: Expand our positions in selected fast growing and high value markets
Expand our positions in selected fast growing and high value markets Automotive Energy Water treatment 3D printing Lighter and cleaner vehicles New energies Clean and safe water Freedom of design E-vehicles Deep offshore Lighter materials Stronger materials 12 CAPITAL MARKETS DAY 10-11 JULY, 2017
Slide 13: Sustainability, a key driver in automotive
Sustainability, a key driver in automotive By 2035, the number of cars By 2023, in the world will double the global share of hybrid to 2 billion and e-cars will double Increasing needs Growing needs for lighter, safer for electronics and and cleaner vehicles high density batteries A bright future fo
Slide 14: A wide range of high performing sustainable solutions for automotive
A wide range of high performing sustainable solutions for automotive Powertrain Fuel, fluid Connectors Alternative Emission management fuel systems control systems Electrics and electronics Binders and separator coatings Wires and cables for li-ion batteries Arkema’s solutions in a car represent tod
Slide 15: Extreme solutions to address today's challenges in automotive
Extreme solutions to address today’s challenges in automotive Rilsan® HT Rilsan® Kynar® for powertrain fluid management for li-ion batteries High Temperature PA 11 High performing mono and multilayer Separator coatings for metal and rubber replacement construction for greener cars and electrode bind
Slide 16: Committed to develop tomorrow's solutions in automotive
Committed to develop tomorrow’s solutions in automotive Next generation of binders Rilsan® Matrix Fast RTM process for Elium® Materials for lithium-sulfur For composites High speed process and lithium-air batteries for automotive 16 CAPITAL MARKETS DAY 10-11 JULY, 2017
Slide 17: Expand our positions in selected fast growing and high value markets
Expand our positions in selected fast growing and high value markets Automotive Energy Water treatment 3D printing Lighter and cleaner vehicles New energies Clean and safe water Freedom of design E-vehicles Deep offshore Lighter materials Stronger materials 17 CAPITAL MARKETS DAY 10-11 JULY, 2017
Slide 18: Energy
Energy 80% of future By 2050, oil & gas reserves lie up to 25% of the world’s ~23,000 feet below power consumption will be the water surface supplied by solar power For flexible pipes and photovoltaic panels Growing needs for Growing needs for strength, durability more efficient and and resistance l
Slide 19: Water treatment
Water treatment 1 billion people do not have access to clean drinking water Huge needs for innovative solutions in the water filtration market Our solutions Kynar® PVDF for micro- and ultrafiltration to remove bacteria and viruses High chemical resistance over 10 year lifetime Low energy consumption
Slide 20: 3D printing
3D printing Faster and more precise additive manufacturing processes Increasing needs from automotive, aerospace, healthcare industries to shorten the time from design to production and turn just-in-time into here-and-now Our solutions Wide range of solutions for various technologies Lower-cost solu
Slide 21: Reinforce resilience by optimizing mix of markets and lifecycles
Reinforce resilience by optimizing mix of markets and lifecycles Product development Electronics Product certification Product life Sports Automotive Ongoing upgrades Medical devices Ongoing upgrades Oil & gas 20 years Years 0 1 2 3 4 5 6 7 8 9 10+ 21 CAPITAL MARKETS DAY 10-11 JULY, 2017
Slide 22: Our strategic priorities to achieve our ambition
Our strategic priorities to achieve our ambition Expand our positions Accelerate in selected fast growing growth high value markets in Asia Aeronautics Automotive 3D printing Polyamides Sartomer PVDF Water treatment Energy Electronics Sports Leverage Broaden our product portfolio partnerships with d
Slide 23: Asia, a huge market with strong growth potential
Asia, a huge market with strong growth potential 60% worldwide population 53% global car production 77% global smartphone production 80% global photovoltaic panel production 3 of 15 most innovative countries Growing focus on innovation and technology 23 CAPITAL MARKETS DAY 10-11 JULY, 2017
Slide 24: A continuous expansion in Asia
A continuous expansion in Asia 2011 2012 2013 2016 China China China South Korea China New PVDF Kynar® Acquisition of New New x2 plant followed by Casda Biomaterials R&D centre R&D centre Organic peroxides several expansions and Hipro Polymers capacities A strong momentum 24 CAPITAL MARKETS DAY 10-1
Slide 25: A new wave of industrial investments planned in Asia
A new wave of industrial investments planned in Asia Specialty polyamides Sartomer Kynar® PVDF Asia China China 25 CAPITAL MARKETS DAY 10-11 JULY, 2017
Slide 26: Strengthen our leadership position in specialty polyamides
Strengthen our leadership position in specialty polyamides… Our strengths Diversified end-markets #1 Selected examples growing on average at worldwide +5% / year Unique technology in bio-based polyamides Automotive Consumer goods Oil & Gas Rilsan® PA 11 and Pebax® Rnew® sports, electronics Global R&
Slide 27: … through a change of scale
… through a change of scale ~€300m capex over next 5 years To support our customers’ strong growth To supply our global customers locally New state-of-the-art bio-based PA 11 site in Asia +7% / year expected growth in Asia supported by: A 2nd PA 11 monomer site +50% PA 11 after Marseille (France) +5
Slide 28: Expand in Kynar PVDF to support our customers' growth
Expand in Kynar® PVDF to support our customers’ growth Our strengths A successful stepwise expansion Our ambition #1 Calvert City Pierre-Bénite worldwide Changshu Continuously expand our PVDF capacities Premium brand in the 3 regions Kynar Wide range of markets supporting +7% average growth / year +
Slide 29: Sartomer, a global leader in UV curing resins
Sartomer, a global leader in UV curing resins Our strengths Diversified end-markets #1 Selected examples growing on average at +5% / year worldwide Unique know-how Global presence to meet local customer needs Graphic arts Electronics 3D printing Environmentally friendly solutions 100% dry-content (n
Slide 30: Accelerate the development of Sartomer in Asia
Accelerate the development of Sartomer in Asia +30% capacity in Asia To support the growth of our customers in Accelerate Sartomer’s growth fast growing high-tech, high value niches in specialty applications +12%/year +10%/year expected growth in Asia supported by: on average Capacity expansion at e
Slide 31: Our strategic priorities to achieve our ambition
Our strategic priorities to achieve our ambition Expand our positions Accelerate in selected fast growing growth high value markets in Asia Aeronautics Automotive 3D printing Polyamides Sartomer PVDF Water treatment Energy Electronics Sports Leverage Broaden our product portfolio partnerships with d
Slide 32: Strengthen our partnerships with leading players
Strengthen our partnerships with leading players 3D printing Sports Collaboration on the new In-depth work on Multi Jet Fusion™ technology Lightweighting, resistance, flexibility, energy return... Driving innovation through an Open platform for materials Leverage unique properties of Using Arkema’s
Slide 33: Going beyond the limits with Nike BREAKING2
Going beyond the limits with Nike Nike BREAKING2 Lightweighting Resistance Flexibility Energy return 33 CAPITAL MARKETS DAY 10-11 JULY, 2017
Slide 34: Our strategic priorities to achieve our ambition
Our strategic priorities to achieve our ambition Expand our positions Accelerate in selected fast growing growth high value markets in Asia Aeronautics Automotive 3D printing Polyamides Sartomer PVDF Water treatment Energy Electronics Sports Leverage Broaden our product portfolio partnerships with d
Slide 35: Broaden our product portfolio
Broaden our product portfolio Well-established Newcomers Future Unique range High-end Breakthrough of Technical Polymers of polymers pyramid innovations Pebax® New composites Elium® Rilsan® PA 11 Kepstan® PEKK Fast RTM Rilsamid® PA 12 Kynar® PVDF foams Piezoelectric polymers Kynar® PVDF Pebax® foams
Slide 36: Lightweighting in a circular economy
Lightweighting in a circular economy Christian Collette, Vice-President R&D
Slide 37: Composites, a solution of choice to replace metal and reduce weight...
Composites, a solution of choice to replace metal and reduce weight... Towards more and more composites Systems are multimaterial and complex Aluminium foils Continuous glass fibers Today Tomorrow Polymeric resin constituting the matrix More composites with more complexity creates a recycling challe
Slide 38: ... with its own challenges
... with its own challenges Composite Composite part Design and properties Raw materials Use and end of life life cycle production Know-how to design Productivity and assembly Challenges limiting and predict properties Optimization of matrix larger use of and fibers Dismantling and recycling composi
Slide 39: Arkema has a deep know-how of thermoplastic composites
Arkema has a deep know-how of thermoplastic composites Aerospace Oil & gas Wind energy and marine Automotive Sports & leisure Process cost reduced by 40% High resistance to pressure Lower manufacturing cost Corrosion free 30% increase in Production rate x2 versus and chemical aggression than epoxy 5
Slide 40: Developing the most extreme polymer: PEKK
Developing the most extreme polymer: PEKK Arkema #1 worldwide in PEKK PEKK at a glance New markets Expand capacities What is PEKK Aerospace Polymer offering exceptional resistance to extreme environments Replace metal and thermoset composites Development of the technology What are PEKK properties ov
Slide 41: The future is growing in our labs
The future is growing in our labs Piezoelectric polymers Directed self-assembly Fluorinated materials for the future For nanolithography Polymers with electroactive nature, undergoing deformation Photolithographic techniques are running into a physical limit: under an electric current and generating
Slide 42: Glossary
Glossary Recurring operating income (REBIT): is calculated as the difference between operating income and other income and expenses. It excludes the depreciation and amortization resulting from the revaluation of tangible and intangible assets as part of the allocation of purchase price of acquired
Slide 43: Disclaimer
Disclaimer The information disclosed in this document may contain forward-looking statements with respect to the financial condition, results of operations, business and strategy of Arkema. Such statements are based on management’s current views and assumptions that could ultimately prove inaccurate