Arkema Sa · EURONEXT:AKE
Arkema Sa — Merger or Acquisition (June 2023)
15 slides from Arkema Sa's merger presentation, Jun 28, 2023
Slide 1: Proposed acquisition of PI Advanced Materials
Proposed acquisition of PI Advanced Materials 28 June 2023
Slide 2: PI Advanced Materials (PIAM) acquisition is a rare opportunity
PI Advanced Materials (PIAM) acquisition is a rare opportunity New significant milestone in Arkema’s transformation into a pure Specialty Materials player • PIAM is the global leader in polyimide films • ultra-high performance and cutting-edge technology • best-in-class manufacturing • PIAM delivers
Slide 3: Transaction summary
Transaction summary Proposed acquisition of Glenwood Private Equity’s 54% stake in the listed South Korean company PI Advanced Materials (PIAM) Transaction • PIAM 2022 sales of over €200m and EBITDA margin of around 30% Description • Full consolidation in Arkema’s financial statements • Remaining 46
Slide 4: Polyimide is at the top of the polymers' performance pyramid
Polyimide is at the top of the polymers’ performance pyramid Outstanding properties Ultra-high performance PI polymers PEKK PEEK PVDF PEI Withstanding extreme High performance polymers PPS PA11 temperatures (400°C) Pebax® PA12 PMMA Intermediate PA6 / PA6.6 polymers PC Exceptional flexibility and dim
Slide 5: The acceleration of PI demand is driven by megatrends
The acceleration of PI demand is driven by megatrends Global PI market is expected to grow +9% p.a. over 2022-2027 Mobile devices Displays Semiconductors Electric vehicles General industry More powerful batteries, Sharp increase in screen Increased demand Global car High-end markets such as processo
Slide 6: PIAM is a global leader in polyimide-based materials
PIAM is a global leader in polyimide-based materials > €200m Sales in 2022 c.30% World EBITDA margin 2% #1 PI-based materials polyimide films ~320 Films employees Varnishes and powders 98% 2 Products & applications R&D platforms 24% FPCB (flexible printed circuit board) 40% Graphite Sheet 2 36% Adva
Slide 7: PIAM is a highly innovative company with superior growth profile, industry leading margins
PIAM is a highly innovative company with superior growth profile, industry leading margins and best-in-class manufacturing 380 Sales (€m) 330 Top quality and high value-added polyimide products 280 226 230 196 180 204 Strong customer intimacy in very attractive and high growth 130 markets (electroni
Slide 8: PIAM is the global #1 in PI film since 2014
PIAM is the global #1 in PI film since 2014 Largest PI film production capacity #1 global PI film market share (tons) 6,000 Others 22.2% 750 Q4’23 U 31.4% 5.9% Completed 750 TT end-2022 9.5% 600 2021 TD 10.5% K D 13.0% 7.5% Graphite Flexible Chip On FPCB EV battery 5G 4,000 3,900 sheet display Film
Slide 9: Megatrends and innovation are driving PIAM's superior sales growth
Megatrends and innovation are driving PIAM’s superior sales growth CONSUMER ELECTRONICS CLEAN MOBILITY Mobile devices Displays 5G technology Semiconductors Electric vehicles • Flexible Printed Circuit • FPCB protection films • 5G antennas NBD • Electrical insulation • FPCB for Battery Management Boa
Slide 10: Strong complementarities with Arkema's portfolio (1/2)
Strong complementarities with Arkema’s portfolio of solutions and cutting-edge innovation in attractive markets (1/2) Est. PI market growth Smartphones and 5G technology c. +5% p.a. NBD PI 5G antenna PA Rigid midframes TFT substrate PI NBD PI Flexible printed circuit boards PVDF Batteries PI Graphit
Slide 11: Strong complementarities with Arkema's portfolio (2/2)
Strong complementarities with Arkema’s portfolio of solutions and cutting-edge innovation in attractive markets (2/2) Est. PI market growth Electric vehicles c. +25% p.a. Bostik® Electronic components Li-ion battery binders PVDF encapsulation and separator coating Ultrapure Foranext® electrolyte sal
Slide 12: Leveraging the perfect complementarities
Leveraging the perfect complementarities PIAM Arkema Expand PIAM’s sales outside Develop Arkema’s sales in its current geographies smartphones and batteries by thanks to Arkema’s presence taking advantage of PIAM’s in Europe and in the US strong relationship with its strategic OEM customers Accelera
Slide 13: High growth potential driven by PIAM's leading positioning and strong synergies
High growth potential driven by PIAM’s leading positioning and strong synergies with Arkema PIAM’s sales growth expected at 13% p.a. ● Highly attractive markets linked to megatrends (consumer electronics, electric vehicles) ● Strong innovation pipeline with successful customer qualifications in stra
Slide 14: Key takeaways
Key takeaways New significant milestone in Arkema’s transformation into a pure Specialty Materials player Rare opportunity to broaden high performance polymer ranges with an ultra-high performance and cutting-edge technology Strengthening of Advanced Materials segment’s portfolio and performance Ark
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