Slide 1: 1st quarter 2014 results
1st quarter 2014 results Thierry LEMONNIER CFO
Slide 2: 1Q'14 highlights and key figures
1Q’14 highlights and key figures Sales (€m) EBITDA (€m) 1,563 1,523 234 213 +0.7 % at constant scope and FX High basis of comparison +3.3 % volumes in Fluorogases in 1Q’13 (+7% EBITDA -2.6 % price excluding Fluorogases) mainly in Fluorogases 14.0 % EBITDA margin 1Q’13 1Q’14 1Q’13 1Q’14 EBITDA (€m) a
Slide 3: Key drivers of 1Q'14 performance
Key drivers of 1Q’14 performance Benefits from organic growth and innovation ● Acrylic acid capacity expansion in Clear Lake (US) ● Increased SAP production capacity by Sumitomo Seika in Carling (France) ● Coating Resins: start-up in China, ramp-up in Brazil and improving market conditions overall ●
Slide 4: Projects announced in 1Q'14
Projects announced in 1Q’14 Acquisition of acrylic assets Expansion of Organic Peroxides from Jurong in China* in China Creation of a manufacturing JV in Taixing x2 production capacity in Changshu with Jurong Chemical, leader in acrylic monomers in China To support increasing use of polymers in Asia
Slide 5: Implementing 2014 top priorities
Implementing 2014 top priorities Start Thiochemicals platform in Malaysia ● Commercial start-up expected in 2H’14 Finalize acquisition of Jurong’s acrylic assets ● Closing expected in summer 2014 for the acquisition of the 1st line of 160kt / year * ● Construction of 3rd line by Jurong on track Cont
Slide 6: Sales bridge
Sales bridge Sales (€m) Scope of FX rate – Volume Price business translation effect 1,563 +3.3% (2.6)% (1.2)% (2.1)% 1,523 ● Strong ● Pricing ● Changes in ● Mainly volumes and mix in consolidation strengthening in High Fluorogases scope* of euro versus Performance US dollar Materials (slow start in
Slide 7: 1Q'14 key figures
1Q’14 key figures In €m (except EPS) 1Q’13 1Q’14 variation Sales 1,563 1,523 -2.6% EBITDA 234 213 -9.0% EBITDA margin 15.0% 14.0% Recurring operating income 158 135 -14.6% Adjusted net income 97 88 -9.3% Net income (Group share) (30) 77 - Adjusted EPS 1.55 1.40 -9.7% 7
Slide 8: High Performance Materials
High Performance Materials In €m 1Q’13 1Q’14 variation Sales 448 474 +5.8 % EBITDA 70 83 +18.6 % EBITDA margin 15.6% 17.5% Recurring operating income 44 57 +29.5 % Strong start of the year compared to soft 1Q’13 with 19% EBITDA growth and 17.5% EBITDA margin €474m sales, up 7.9% at constant scope of
Slide 9: Industrial Specialties
Industrial Specialties In €m 1Q’13 1Q’14 variation Sales 539 496 -8.0 % EBITDA 104 72 -30.8 % EBITDA margin 19.3% 14.5% Recurring operating income 76 43 -43.4 % Lower results reflecting more challenging market conditions and very high basis of comparison in Fluorogases Excluding Fluorogases, perform
Slide 10: Coating Solutions
Coating Solutions In €m 1Q’13 1Q’14 variation Sales 562 547 -2.7 % EBITDA 77 73 -5.2 % EBITDA margin 13.7% 13.3% Recurring operating income 55 50 -9.1% Good resilience in a mixed environment €547m sales, up 1.4% at constant scope of business and FX ● +4.6% volumes excluding impact of the shutdown of
Slide 11: Cash flow
Cash flow In €m 1Q’14 EBITDA 213 • Usual seasonality of working capital Working capital variation * (152) • Should be largely reversed at year end Taxes (31) Cost of debt (11) Recurring capex (45) Others (5) Recurring cash flow (31) Non-recurring items in operating and (7) Including €(6)m restructur
Slide 12: 2014 outlook
2014 outlook Assumptions ● Moderate worldwide growth with contrasted market conditions by regions ● Stable €/US$ exchange rate versus 2013 (unchanged assumption despite unfavorable rate in 1Q’14) ● 2nd quarter 2014: • 2 very large maintenance turnarounds in Thiochemicals (Beaumont, US) and Technical
Slide 13: 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