Slide 1: Paris, France, September 18, 2012
PARIS, FRANCE SEPTEMBER 18, 2012
Slide 2: Coating Solutions segment
Coating Solutions segment Marc SCHULLER Executive VP
Slide 3: Coating Solutions segment
Coating Solutions segment €2.2bn Acrylic 40% captive use monomers Acrylic monomers ~€850m 60% Coating resins Sartomer (UV-curing) Coatex (additives) third party Coating materials Coating €6.5bn resins ~€850m Super Water Oil & gas Decorative absorbents treatment recovery paints Industrial Coatings Sa
Slide 4: A segment developed through strategic acquisitions
A segment developed through strategic acquisitions 2007 2010 2011 Coatex Acrylic monomers (US) (additives) Emulsions (US) (ex Dow) Cray Valley (Coating resins) Sartomer (UV-curing) (ex Total) Competitive advantages ● Global positions (manufacturing, R&D, sales) ● Upstream integration in acrylic mono
Slide 5: Acrylic monomers
Acrylic monomers Demand by end markets #4 worldwide Market size: 4.2 MT Others (water treatment, Main competitors: Oil & gas, … 33% 26% Super -absorbents ● BASF ● Dow ● Nippon Shokubai Adhesives 15% 26% Coatings BASF Dow Nippon Arkema Shokubai Expected growth Major “building block” for a wide range
Slide 6: Acrylic monomers projects
Acrylic monomers projects US$110m capex program in Clear Lake and Bayport (US) ● Acrylic acid capacity increase in Clear Lake (+30 kT) Acrylic monomers ● New acrylic esters units in Clear Lake (MA – 2Q’13) in Clear Lake / Bayport and Bayport (2EHA – 2Q’12) ● Process optimization Acrylic esters units
Slide 7: Coating materials businesses
Coating materials businesses Coatings market Coating materials market 25% 45% 55% 55% Pigments & Decorative Industrial coatings Binders extenders paints •Protective / marine • Acrylics •TiO2 ~$100bn* •Can / coil / metal • Vinyls ~$50bn* •Automotive • Epoxy •Ink, graphic art • Urethane 13% •Electroni
Slide 8: A comprehensive offer of coating materials to cover all market segments
A comprehensive offer of coating materials to cover all market segments INDUSTRIAL COATINGS DECORATIVE PAINTS INK / PROTECTIVE / CAN / COIL / OPTO- ADHESIVES & AUTOMOTIVE GRAPHIC MARINE METAL ELECTRONICS SEALANTS ARTS ARKEMA’S TECHNOLOGIES Emulsions ● ● ● ● Alkyd resins ● ● ● ● Acrylic resins ● ● ●
Slide 9: Well positioned to serve key coating players
Well positioned to serve key coating players Arkema is now a top tier supplier to the global coating market Coating producers profile Coating market (industry source) ● Top 10 customers represent 60% market Akzo Nobel share today ● Big customers are getting bigger PPG ~$100bn Coating producers needs
Slide 10: Strategic lines of the Coating Solutions segment
Strategic lines of the Coating Solutions segment Further strengthen downstream integration of acrylic monomers ● Greater earning stability ● From 40% in 2012 to 45% by 2016 and 50% by 2020 Improve profitability ● Operational efficiencies: simplify and optimize organization ● Improve mix of products
Slide 11: Improve profitability
Improve profitability Operational efficiencies: simplify and optimize organization ● Complete organizational synergies identified during acquisition process (manufacturing, SG & A) ● Gain efficiency by streamlining product line ● Capture growth synergies – cross-selling of products and between regio
Slide 12: Geographic expansion in growing economies
Geographic expansion in growing economies Organic growth Sartomer Coatex Coating resins Coating resins China (2008) China (2011) Malaysia (1Q’12) China (end 2012) Bolt on acquisitions ● Acrylic specialties (Coatex, acrylic emulsions): – Acquisition of one production site in Brasil from Resicryl (emu
Slide 13: Bring innovative eco-friendly solutions to customers
Bring innovative eco-friendly solutions to customers Address megatrends in coating market Regulatory driven Solution Oriented Reduced Cost Enhanced Durability Harmful Smart Coatings VOC Substance reduction Removal New applications Innovation examples Ink jet printing Ultra low VOC Optimize TiO2 use
Slide 14: Take advantage of expected market recovery in decorative paints in North America
Take advantage of expected market recovery in decorative paints in North America Assumption for housing market development 2,25 2,0 2,00 220 1,75 1,5 1,50 200 1,25 1,0 1,00 180 0,75 0,5 0,50 160 2003 2003 2005 2005 2007 2007 2009 2009 2011 2011 2013 2013 2015 2015 Housing Starts (Left scale, million
Slide 15: Coating Solutions key take-aways
Coating Solutions key take-aways Strong base of acrylic monomers, major “building #3 block” for coating materials and other growth applications Comprehensive offer of solutions for decorative paints and industrial coatings Ability to manage complexity of the coating Decorative Industrial industry wi
Slide 16: 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