Arkema Sa · EURONEXT:AKE
Arkema Sa — Q3 2012 Earnings Presentation
13 slides from Arkema Sa's earnings presentation, 2012
Slide 1: 3rd quarter 2012 results
3rd quarter 2012 results Thierry LEMONNIER CFO
Slide 2: A strong performance reflecting Arkema's robustness
A strong performance reflecting Arkema’s robustness Sales (€m) € 1,606m sales, +1% vs 3Q’11 1,587 1,606 € 266m EBITDA and 16.6% EBITDA margin ● Same level as 3Q’11 in a less favorable economic environment ● 19.5% in Performance Products with record EBITDA in a third quarter (€107m) 3Q’11 3Q’12 ● 16.
Slide 3: Key drivers of Arkema 3Q'12 performance
Key drivers of Arkema 3Q’12 performance Challenging market conditions vs 3Q’11 ● Contrasted market conditions by region with challenging conditions in Europe and relatively slow growth in Asia (positive exception in South East Asia) ● Slowdown in demand in certain end markets in September (automotiv
Slide 4: Highlights since July 1st, 2012
Highlights since July 1st, 2012 Major achievements in portfolio transformation ● Divestment of Vinyl business finalized early July (€1bn sales) ● Divestment of tin stabilizers business finalized early October (€180m sales) ● Acquisition by Coatex of an acrylic additives and emulsion production site
Slide 5: Sales bridge
Sales bridge Sales (€bn) FX rate – Volume Scope of translation effect Price business 1,587 (2.4)% +5.3% 1,606 (4.5)% +2.8% ● Slowdown in ● Decrease, as ● Hipro/Casda certain end expected, in markets in ● Seppic Acrylic Acid alkoxylates September and HFC-125 in China 3Q’11 3Q’12 5
Slide 6: 3Q'12 key figures
3Q’12 key figures In €m (except EPS) 3Q’11 3Q’12 variation Sales 1,587 1,606 +1.2 % EBITDA 266 266 = EBITDA margin 16.8% 16.6% Recurring operating income 198 189 -4.5 % Net income (group share) 109 116 +6.4% Adjusted EPS (diluted) 2.09 1.88 -10.0% 6
Slide 7: Performance Products
Performance Products In €m 3Q’11 3Q’12 variation Sales 519 548 +5.6 % EBITDA 102 107 +4.9 % EBITDA margin 19.7% 19.5% Recurring operating income 78 80 +2.6 % +6% sales at €548m ● Benefits from acquisitions (bio-based polyamide 10 in China and alkoxylates) ● Slowdown in demand in September in automot
Slide 8: Industrial Chemicals
Industrial Chemicals In €m 3Q’11 3Q’12 variation Sales 1,063 1,053 -0.9 % EBITDA 175 176 +0.6 % EBITDA margin 16.5% 16.7% Recurring operating income 132 127 -3.8 % Stable volumes despite weak automotive in Europe and low demand in deco paints Decrease, as expected, of acrylic acid and fluorogases pr
Slide 9: Three new reporting segments
Three new reporting segments High Performance Materials Industrial Specialties Coating Solutions Solutions for decorative paints, World of high value and Global and integrated industrial coatings and innovative solutions industrial niches high-growth acrylic applications ● Specialty polyamides ● Thi
Slide 10: Contribution by new reporting segment
Contribution by new reporting segment High Performance Industrial Coating Solutions Materials Specialties 548 557 Sales (€m) 496 EBITDA (€m) and 19.5% 19.8% EBITDA margin (%) 14.0% 107 98 78 10
Slide 11: 3Q'12 cash flow and net debt end of September
3Q’12 cash flow and net debt end of September +€ 144m free cash flow* in 3Q’12 includes: ● € 76m recurring capex ● € 81m cash inflow from working capital € 59m cash outflow from M&A ● Payment to Hipro-Casda minority shareholders ● €35m cash out of part of the expenses related to Vinyls divestment bo
Slide 12: FY'2012 outlook confirmed
FY’2012 outlook confirmed Contrasted macro-economic conditions ● Soft demand observed in certain end markets should continue until year end ● Challenges remain in several European countries ● Volatility of raw material costs ● Customers should cautiously manage their inventories at year-end Traditio
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