Arkema Sa · EURONEXT:AKE
Arkema Sa — Investor Day (2015)
14 slides from Arkema Sa's investor day presentation, 2015
Slide 1: Coating Solutions
COATING SOLUTIONS Marc SCHULLER Executive Vice-President Industrial Specialties and Coating Solutions
Slide 2: A full global and integrated acrylic value chain built over the past 10 years
A FULL GLOBAL AND INTEGRATED ACRYLIC VALUE CHAIN BUILT OVER THE PAST 10 YEARS 2004 2005 – 2014 From 2015 A global leading player downstream integrated in coating materials Competitive world-scale units in Europe, North America and Asia Our ambition: a global and more resilient leading integrated pla
Slide 3: Key achievements in Coating Solutions
KEY ACHIEVEMENTS IN COATING SOLUTIONS SALES* DOWNSTREAM INTEGRATION EBITDA* IN €BN IN % 1.9 38% x2.5 x3 0.7 10% 2006 2014 2006 2014** 2006 2014 (mid–peak (low–mid cycle cycle conditions) conditions) * Sales and EBITDA using new reporting ** Including Sunke for one 160 kt / year line of acrylic acid
Slide 4: Coating Solutions at a glance
COATING SOLUTIONS AT A GLANCE 2014 KEY FIGURES* 2014 SALES BY BUSINESS UNIT* IN €M Sales 1,930 Acrylics EBITDA 203 Coating Resins and Additives EBITDA margin 10.5% (Rheology additives 56% 44% + Coating resins EBIT 111 + impact modifiers) Capex 86 KEY SUCCESS FACTORS 2014 SALES BY REGION* Leading pos
Slide 5: Coating Solutions strategy
COATING SOLUTIONS STRATEGY INCREASE THE RESILIENCE OF OUR ACRYLICS VALUE CHAIN Reinforce Very competitive acrylic monomers monomer base downstream through through Technology leadership Partnerships Operational excellence Geographic expansions Successful integration Innovation of Sunke’s assets Bolt-
Slide 6: Attractive end-markets supported by structural long-term growth drivers
ATTRACTIVE END-MARKETS SUPPORTED BY STRUCTURAL LONG-TERM GROWTH DRIVERS COATINGS & ADHESIVES POLYMERS, PAPER, OTHERS Major growth drivers 35% 15% Increasing standards of living, notably in Asia Industrialization (water treatment, Decorative paints, Other industrial coatings, adhesives applications a
Slide 7: Acrylic monomers: a worldwide market with regional supply demand balance
ACRYLIC MONOMERS: A WORLDWIDE MARKET WITH REGIONAL SUPPLY DEMAND BALANCE Worldwide market: 5.2 MT NORTH AMERICA EUROPE ASIA +2 to 3% CAGR4 +1 to 2% CAGR4 +6 to 7% CAGR4 Nippon BASF FPC Shokubai BASF Dow BYC2 LG Chemi- BPC3 ~4.0 -cals 1.3 1.2 1.4 1.1 2.9 Sto Sto Haas1 Supply Demand Haas1 Supply Deman
Slide 8: A global competitive footprint now well in place
A GLOBAL COMPETITIVE FOOTPRINT NOW WELL IN PLACE NORTH AMERICA EUROPE ASIA Clear Lake New Bayport Carling Taixing (4Q’14) CLEAR LAKE: 160 KT/YR** +OPTION 160 KT/YR 270 KT/YR SUNKE: 275 KT/YR BAYPORT: THE MISSING 65 KT/YR* PIECE * American Acryl: 50%-50% JV between Nippon Shokubai and Arkema with a t
Slide 9: Maintain strong emphasis on operational excellence
MAINTAIN STRONG EMPHASIS ON OPERATIONAL EXCELLENCE TOP QUARTILE MANUFACTURING BASE IN MONOMERS Competitive upgrade of assets • Clear Lake (US): US$110 m investment plan finalized mid- 2014 with some capacity expansions (acrylic acid, methyl acrylate, 2EHA) and implementation of manufacturing best pr
Slide 10: Successfully integrate and ramp up Sunke's assets
SUCCESSFULLY INTEGRATE AND RAMP UP SUNKE’S ASSETS A COMPETITIVE COST BASE Good quality of assets: • In line with our expectations • Limited additional capex required over coming years Very good cost position • One of the largest site worldwide: 480 kt/year • Positive benchmark of the site in terms o
Slide 11: Reinforce downstream integration
REINFORCE DOWNSTREAM INTEGRATION Integration rate LT objective 32%* 45% Arkema’s downstream Geographic expansion in emerging countries Coating resins Coatex – Rheology additives Innovation Sartomer – UV curing resins in environmental friendly Adhesives solutions Acrylic monomers Long-term contracts
Slide 12: Developments in acrylics downstream
DEVELOPMENTS IN ACRYLICS DOWNSTREAM ENVIRONMENTAL FRIENDLY SOLUTIONS Solutions to increasing regulations for VOC reduction • SNAP™: Ultra low VOC coatings • Powder resins • Sartomer’s 100% dry content resins Solutions for a safer environment • Sartomer’s BPA-free oligomers for food packaging inks an
Slide 13: Well positioned to support group's long term ambitions
WELL POSITIONED TO SUPPORT GROUP’S LONG TERM AMBITIONS Technology Global Integration + leadership + footprint Coating Solutions EBITDA margin potential 12 – 18% Arkema’s long-term ambition 13 CAPITAL MARKETS DAY 2015
Slide 14: 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