Arkema Sa · EURONEXT:AKE
Arkema Sa — Investor Day (September 2012)
15 slides from Arkema Sa's investor day presentation, Sep 18, 2012
Slide 1: Paris, France, September 18, 2012
PARIS, FRANCE SEPTEMBER 18, 2012
Slide 2: Finance
FINANCE Thierry LEMONNIER CFO
Slide 3: 1H'12 contribution by new reporting segment
1H’12 contribution by new reporting segment High Performance Industrial Coating Solutions Materials Specialties Sales (€m) 1,106 1,098 1,126 EBITDA (€m) and 19% 20% EBITDA margin (%) 14% Traditional seasonality implying first half 211 222 results above second half results 156 2
Slide 4: FY'12 outlook confirmed
FY’12 outlook confirmed Global macro-economic conditions remain contrasted Raw materials still volatile and at high level July and August in line with expectations Arkema’s ongoing initiatives support strong internal momentum ● Integration of Hipro-Casda (specialty polyamides) on February 1st ● Clos
Slide 5: Disciplined cash allocation strategy
Disciplined cash allocation strategy Solid cash generation Strict return criteria for capex and acquisitions Reinvest in organic growth projects Value creating bolt-on acquisitions Increase cash return to shareholders Committed to BBB rating 4
Slide 6: Cash allocation over 2013 - 2016
Cash allocation over 2013 - 2016 €3.6 bn cash resources available Cumulative Capex Borrowing cash flow capacity €1.7 bn from operating activities M&A, dividends and others €1.9 bn M&A M&A Dividends Dividends Others 5
Slide 7: Capital expenditure
Capital expenditure Recurring capex: 5% to 5.5% of Group sales 2012e capex and D&A (€m) ● Maintenance and turnaround: ~50% ● Growth and productivity capex: ~50% 400 • US$110m in 2011-2013 for acrylic expansion in the US including 50 NR • € 70m for PVDF expansion in Pierre-Bénite (France) Non-recurri
Slide 8: Acquisition strategy
Acquisition strategy 2016 targets: ● + €1bn additional sales from acquired businesses ● €(0.4)bn sales from divested businesses Small to mid-size bolt-on acquisitions Proven track record in acquiring businesses and executing integration ● €1.2bn cash out on acquisitions since spin off ● + €220m full
Slide 9: Business portfolio transformed through M&A
Business portfolio transformed through M&A Divestments Acquisitions Downstream Higher growth Specialty €1.6 bn sales €1.6 bn sales integration countries niches Cerexagri 2007 Coatex ● ● Urea formaldehyde resins 2008 2009 GEO’s organic peroxide ● 2010 Ex-Dow acrylic assets ● Cray Valley ● ● 2011 Sart
Slide 10: Two examples of successful acquisitions
Two examples of successful acquisitions Coatex (€150m 2007 sales) Ex-Dow assets (US$450m 2009 sales) Acrylic downstream integration Become a US acrylic leader Expected synergies Expected synergies ● Growth in high-value acrylic polymers ● Expand and upgrade Arkema’s polymer portfolio ● Diversify Coa
Slide 11: A track record of strict financial discipline
A track record of strict financial discipline SIX PRINCIPLES OF FINANCIAL POLICY ACHIEVEMENTS PRESENTED AT INVESTOR DAY 2010 Diversify sources of funding • €500m bond issued in October 2010 • €700m credit line renewed in July 2011 Extend and spread out maturities • €230m bond issued in April 2012
Slide 12: Strong balance sheet
Strong balance sheet Balance sheet on June 30th 2012 (€bn) Long term assets* 3.0 2.2 Shareholders’ equity Net provisions** ● Pensions: €293m 0.7 ● Restructuring: €63m ● Environment: €125m Working capital 1.2 1.1 Net debt 0.2 Others * Excluding deferred income tax assets ** Provisions net of non-curr
Slide 13: €2 billion available in financing resources
€2 billion available in financing resources Financing resources (€m) Maturity of financial debt (€m) 700 500 730 Bonds 288 Credit lines 990 230 150 220 Securitization 2013 2014 2015 2016 2017 2018 2019 2020 and others Continue to smooth debt maturity profile Over €1.4bn available after 3 years Avera
Slide 14: Tax update
Tax update Cash tax outflow confirmed at ~25% of REBIT in coming years €347m deferred tax assets unrecognized end 2011 Impact of DTA on P&L ● Negative impact on tax rate when tax losses are generated in France as in 2011 ● Positive impact on tax rate when taxable income is generated in France as in
Slide 15: 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