Arkema Sa · EURONEXT:AKE
Arkema Sa — Q1 2022 Earnings Presentation
15 slides from Arkema Sa's earnings presentation, May 5, 2022
Slide 1: First-quarter 2022 results and outlook
First-quarter 2022 results and outlook 05/05/2022
Slide 2: Q1'22 financial highlights
Q1’22 financial highlights → Up by 30% vs Q1'21 at constant scope and currency • Volumes slightly down compared to last year’s high level, mainly impacted by logistics disruptions and raw materials shortages €2,887m sales • Improved product mix reflecting accelerating demand for high performance sol
Slide 3: Excellent Q1'22 results in a demanding operating context
Excellent Q1’22 results in a demanding operating context in €million EBITDA REBIT Adj. Net Income Net Debt (incl. hybrid bonds) 2,703 619 488 376 358 1,177 223 159 Q1'21 Q1'22 Q1'21 Q1'22 Q1'21 Q1'22 31/12/21 31/03/22 Margin 21.4% x2.2 vs Q1’21 Adj. EPS €4.96 1.4x LTM EBITDA First-quarter 2022 resul
Slide 4: First-quarter 2022 highlights
First-quarter 2022 highlights PMP (China) Kynar® PVDF → Acquisition finalized on 1 April 2022 → +50% capacity in Changshu, CN, end-2022 → Hot-melt adhesives for the consumer → Li-ion battery, water filtration, specialty electronics market coatings, electronics Ashland Performance Adhesives → Acquisi
Slide 5: First-quarter 2022 highlights (cont'd)
First-quarter 2022 highlights (cont’d) Morrow partnership → Development of new electrolyte formulations for next generation high-voltage batteries → Combination of Arkema’s ultra-pure lithium electrolyte salts and Morrow’s LNMO large format batteries 5th year of Pragati program First 100% recyclable
Slide 6: Key figures
Key figures in €million Q1’22 Q1’21 * Change Sales 2,887 2,226 +29.7% EBITDA 619 358 +72.9% Specialty Materials 556 306 +81.7% Intermediates 94 75 +25.3% Corporate -31 -23 EBITDA margin 21.4% 16.1% Specialty Materials 21.3% 16.3% Intermediates 34.7% 21.7% Recurring operating income (REBIT) 488 223 +
Slide 7: Ongoing pricing initiatives in a highly inflationary environment
Ongoing pricing initiatives in a highly inflationary environment Sales in €million +5.3% -4.9% +31.5% Integration of Ashland Performance Adhesives in March, and Poliplas, Edge -2.2% Adhesives Texas and Agiplast over the quarter Good demand in Price increase most end markets initiatives to pass on PM
Slide 8: Adhesive Solutions (23% of Group sales)
Adhesive Solutions (23% of Group sales) Key figures Highlights in €m Q1’22 Q1’21 Change Sales 670 555 +20.7% → +15.8% price effect, reflecting priority given to the pass-through of significant inflation EBITDA 90 86 +4.7% of raw materials, energy and transportation EBITDA margin 13.4% 15.5% REBIT 73
Slide 9: Advanced Materials (37% of Group sales)
Advanced Materials (37% of Group sales) Key figures Highlights in €m Q1’22 Q1’21 * Change Sales 1,075 752 +43.0% → Prices up 39.4% YoY, strongly positive in both Business Lines EBITDA 274 142 +93.0% • Price increase initiatives in a still marked inflationary context EBITDA margin 25.5% 18.9% • Produ
Slide 10: Coating Solutions (30% of Group sales)
Coating Solutions (30% of Group sales) Key figures Highlights in €m Q1’22 Q1’21 Change → +41.8% price effect, sustained in all the Sales 862 567 +52.0% segment’s activities • Price increase initiatives to offset high inflation EBITDA 192 78 +146.2% of raw materials, energy and transportation costs •
Slide 11: Intermediates (10% of Group sales)
Intermediates (10% of Group sales) Key figures Highlights in €m Q1’22 Q1’21 * Change → Scope effect of -40.2% related to PMMA Sales 271 346 -21.7% divestment EBITDA 94 75 +25.3% → Prices up 23.1% YoY EBITDA margin 34.7% 21.7% • Favorable market conditions in acrylics in Asia • Fluorogases positive d
Slide 12: Q1'22 Cash flow
Q1’22 Cash flow in €million Reconciliation of EBITDA to net cash flow Q1’22 Q1’21 → Q1’22 tax rate EBITDA 619 358 21% of REBIT (excl. exceptional items) Current taxes -101 -49 Cost of debt -13 -13 → Working capital Change in working capital and fixed assets payables (1) -411 -187 • Seasonal volume i
Slide 13: Net debt evolution (including hybrid bonds)
Net debt evolution (including hybrid bonds) in €million 1.4x LTM EBITDA 1,496 5 2 2,703 1,177 -26 49 Ashland Performance Adhesives acquisition 31/12/2021 Rec. cash Exceptional M&A Dividends & FX and 31/03/2022 flow items Hybrid bonds others First-quarter 2022 results and outlook 05/05/2022 13
Slide 14: Outlook
Outlook → Market conditions remain positively oriented at the start of the second quarter, with disparities between regions and end markets and an increased lack of visibility. The health situation in China, the war in Ukraine, high inflation and logistics disruptions could weigh on global demand go
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. In the current context, where the Covid-19 epidemic persists across the world, and where the consequences of t