Arkema Sa · EURONEXT:AKE
Arkema Sa — Q1 2021 Earnings Presentation
14 slides from Arkema Sa's earnings presentation, May 6, 2021
Slide 1: First Quarter 2021 Results and Outlook
FIRST QUARTER 2021 RESULTS AND OUTLOOK 6 MAY 2021
Slide 2: Q1'21 Financial Highlights
Q1’21 FINANCIAL HIGHLIGHTS up 12.7% compared to Q1'20, at constant scope and currency €2,226m sales • significant increase in volumes (+7.7%), in the continuity of the rebound already observed in Q4'20 (+5.2%) • strong momentum in most of the Group's end markets, and contribution of new developmen
Slide 3: Q1'21 Highlights
Q1’21 HIGHLIGHTS KYNAR® PVDF Capacity expansion +35% in Changshu, China by 2022, for Li-ion batteries as well as water filtration, construction coatings PMMA and semiconductor industries Divestment to Trinseo finalized Enterprise Value: €1,137m POLIPLAS Acquisition finalized Brazilian leader in hybr
Slide 4: Q1'21 Performance
Q1’21 PERFORMANCE EBITDA REBIT ADJ. NET INCOME NET DEBT (incl. hybrid bonds) In €m In €m In €m In €m 16.1% +39% €2.08 1.6x MARGIN YoY ADJ. EPS EBI TDA 2,002 358 1,910 300 223 159 160 100 Q1'20 Q1'21 Q1'20 Q1'21 Q1'20 Q1'21 31/12/20 31/03/21 4 Q1 2021 RESULTS AND OUTLOOK / 6 MAY 2021
Slide 5: Q1'21 Key Figures
Q1’21 KEY FIGURES In €m Q1’20 Q1’21 Change Sales 2,088 2,226 +6.6% EBITDA 300 358 +19.3% Specialty Materials 256 306 +19.5% Intermediates 68 75 +10.3% Corporate (24) (23) EBITDA margin 14.4% 16.1% Specialty Materials 15.2% 16.8% Intermediates 17.1% 19.0% Recurring operating income (REBIT) 160 223 +3
Slide 6: Strong Organic Growth at 12.7% Driven by Volumes
STRONG ORGANIC GROWTH AT 12.7% DRIVEN BY VOLUMES Sales in €m +5.0% -4.4% -1.7% +7.7% Ov erall strong I ncreased prices in the Stronger euro I ntegration of Fixatti momentum, in acrylics chain offsetting against the and I deal Work in particular in higher propylene US dollar Adhesiv e Solutions const
Slide 7: Adhesive Solutions (25% of Group Sales)
ADHESIVE SOLUTIONS (25% OF GROUP SALES) Q1’21 KEY FIGURES In €m Q1’20 Q1’21 Change HIGHLIGHTS Sales 515 555 +7.8% ● €555m sales, up 7.8% YoY, driven by a EBITDA 69 86 +24.6% +8.6% volume increase strong momentum in construction and DIY, EBITDA margin 13.4% 15.5% notably in Europe and Asia in conti
Slide 8: Advanced Materials (31.5% of Group Sales)
ADVANCED MATERIALS (31.5% OF GROUP SALES) Q1’21 KEY FIGURES In €m Q1’20 Q1’21 Change HIGHLIGHTS Sales 652 703 +7.8% ● Volumes up 9.5% EBITDA 122 142 +16.4% strong growth in High Performance Polymers benefits of innovation and new developments EBITDA margin 18.7% 20.2% in batteries, automotive, s
Slide 9: Coating Solutions (25.5% of Group Sales)
COATING SOLUTIONS (25.5% OF GROUP SALES) Q1’21 KEY FIGURES In €m Q1’20 Q1’21 Change HIGHLIGHTS Sales 517 567 +9.7% ● +9.1% price effect, offsetting higher EBITDA 65 78 +20.0% propylene prices EBITDA margin 12.6% 13.8% ● Volumes up 5.8% REBIT 36 49 +36.1% strong dynamic in decorative paints, 3D pri
Slide 10: Intermediates (18% of Group Sales)
INTERMEDIATES (18% OF GROUP SALES) HIGHLIGHTS Q1’21 KEY FIGURES Q1’21 SALES DEVELOPMENT ● High organic growth at 17.1%, with +10.8% price effect and volumes effect of 6.3% In €m Q1’20 Q1’21 Change Volumes +6.3% more favorable market conditions in acrylics in Asia, Sales 397 395 (0.5)% still chal
Slide 11: Q1'21 Cash Flow
Q1’21 CASH FLOW RECONCILIATION OF EBITDA TO NET CASH FLOW In €m Q1’20 Q1’21 Tax rate EBITDA 300 358 ~ 22% of REBIT (excl. exceptional items) Current taxes (26) (49) Cost of debt (25) (13) Working capital Change in working capital and fixed assets payables 1 (181) (187) 12.7% of annualized sales at e
Slide 12: Net Debt Evolution (Including Hybrid Bonds)
NET DEBT EVOLUTION (INCLUDING HYBRID BONDS) In €m 1.6x EBITDA 27 2,002 16 28 1,910 16 5 31/12/2020 Free cash M&A Hybrid Share FX and 31/03/2021 flow bonds buyback others 12 Q1 2021 RESULTS AND OUTLOOK / 6 MAY 2021
Slide 13: Outlook
OUTLOOK The positive market dynamics observed in the first quarter is continuing, supported by strong demand in the construction and DIY markets, and several industrial markets that are important for the Group Thanks to its innovation for sustainable development and recent industrial capacity expans
Slide 14: Disclaimer
DISCLAIMER The information disclosed in this document may contain forward-looking statements with respect to the financial condition, results of operat ions, business and strategy of Arkema. In the current context, where the Covid-19 epidemic persists across the world, and the evolution of the situa