Slide 1: Arkema Press Conference, October 11, 2011, Shanghai
Slide 2: Building a world of specialties through Asia and innovation
BUILDING A WORLD OF SPECIALTIES THROUGH ASIA AND INNOVATION THIERRY LE HENAFF Chainman,and Chief Executive Officer, Arkema The ARKeEMA our inspiration world is
Slide 3: Spotlight on the sector
Spotlight on the sector ARKEMA is our inspiration The world is our
Slide 4: The World Chemical Industry
The World Chemical Industry Approx €2,000 bn Large number of players, several hundreds at least, with very different sizes and profiles Worldwide chemicals sales by region* 1999: €1,166 billion 32.1% 28.0% 2009: €1,871 billion 24.0% 21.2% 22.2% 15.9% 13.1% 11.7% 6.4% 5.8% 5.2% 4.4% 3.1% 2.4% 2.5% 2.
Slide 5: In-depth transformation of Arkema
2006-2010 In-depth transformation of Arkema
Slide 6: Arkema's spin-off: a true success story
Arkema's spin-off: a true success story 2007 2008 2009 2010 2010 Portfolio Portfolio refocused refocused onon higher higher margin margin businesses businesses 33 Bolt-on Bolt-onacquisitions acquisitions (€1.5bn)* (€1.5bn)* Coatex, Coatex, Dow Dow assets assetsand and Total’s Total’sspecialty specia
Slide 7: Profitability gap filled with the industry
Profitability gap filled with the industry 2005 2010 EBITDA margin (%) 15 PEER AVERAGE 13.6% ARKEMA 13.4% PEER AVERAGE 10 12.6% ARKEMA 5 6.2% Peers: Akzo Nobel (Specialty Chemicals), BASF (excl. Oil & Gas), Celanese, Chemtura, Clariant, Dow, Dupont, Lanxess, Rhodia (excl. CER), Solvay, Tessenderlo 7
Slide 8: Outlook
2011 Outlook ARKEMA is our inspiration The world is our
Slide 9: H1 2011: full set of record figures
H1 2011: full set of record figures Sales (€m) +20% net sales +20% +61% EBITDA at €607m 3,506 2,913 17.3% EBITDA margin 1H’10 1H’11 Net result (group share) at €335m 3 X 2.1 EBITDA (€m) EBITDA margin (%) Strong financial situation 17.3% 3 Gearing maintained low (11%) +61% 13.0% 3 Refinancing of synd
Slide 10: 2011 guidance
2011 guidance EBITDA (€m) >1,000 Exceeding for the first time the symbolic €1bn milestone 790 In a volatile environment Taking into account the traditional seasonality in 2nd half of the year 355 2005 2010 2011(e) Confirm FY 2011 guidance of a very strong year 10 - Arkema - 2011 Press conference - 2
Slide 11: The new face of Arkema
The new face of Arkema Entrepreneurial and innovative culture Successful track record Global and leadership positions 84% of sales* among highest margins within the industry (Industrial Chemicals and Performance Products) Competitive asset base Strong platform for future growth in main chemical line
Slide 12: Turning Arkema into a specialty leader
2011-2015 Turning Arkema into a specialty leader
Slide 13: A strategy focused on growth
A strategy focused on growth Accelerate growth in emerging countries New plants at Changshu in China at full stream Reinforce presence in other high-growth countries (India, Brazil, Malaysia…) Innovation centered on megatrends Strong emphasis on innovative solutions for sustainable development New R
Slide 14: Combining three areas of excellence
Combining three areas of excellence Global Globalleadership leadership Leadership Leadershipandandintegrated integrated Innovative Innovativerange rangeof of in incoating coatingmaterials materials positions in industrial positions in industrial advanced technologies advanced technologies specialtie
Slide 15: Global leadership positions
Global leadership positions • High growth potential SPECIALTIES • Limited number of players • Proprietary technologies Ranking Specialty Polyamides # 1/2 84% Fluorinated Polymers # 1/2 of sales* Functional Additives # 2 ** Specialty Chemicals # 2 *** Acrylic Monomers # 3 Acrylic Polymers # 3 PMMA #
Slide 16: A solutions provider for key growth drivers
A solutions provider for key growth drivers Growing trends Arkema solutions Emulsions and rheological More environmentally friendly additives for paints coatings Fluoropolymers for architectural coatings Kynar® PVDF Need for water purification Molecular membranes sieves for water and access to drink
Slide 17: A solutions provider for key growth drivers
A solutions provider for key growth drivers Growing trends Arkema solutions Aging population in mature market Acrylic for superabsorbent & baby diapers in China and India polymers Emerging LED TV market PMMA for LED flat screens Next generation products and lower Fluorogas of 3rd VOC products in air
Slide 18: A solutions provider for key growth drivers
A solutions provider for key growth drivers Growing trends Arkema solutions Need for new energies: High performance materials for solar development of PV and lithium-ion panels and batteries batteries High temperature polyamide for Lightweight vehicles under the hood engine parts Biosourced Bioplast
Slide 19: Accelerating growth in Asia
Accelerating growth in Asia ARKEMA is our inspiration The world is our
Slide 20: Asia: a key vector of our strategy
Asia: a key vector of our strategy % of sales in Asia Beijing Additives Jinhae Akishima 25% PMMA Additives Changshu KTC R&D 18% Fluorinated gas & polymers, Technical polymers Organic peroxides, PVC compounds, Shanghai 13% Coatex and coating resins Hydrogen peroxide Mumbai Nansha Solventborne resins
Slide 21: Take advantage of fast-growing Asian markets
Take advantage of fast-growing Asian markets Thiochemicals project Malaysia Emulsions for coatings Polyamides x3 Kynar® fluorinated polymers extension +50% Changshu HFC 125 fluorogas extension +30% platform Rheological additives (Coatex) Kynar® fluorinated polymers HFC-125 fluorogas H2O2 in Shanghai
Slide 22: Changshu, Arkema's largest industrial platform
Changshu, Arkema’s largest industrial platform HFC 125 Changshu at a glance extension 3 Around 500 employees PVDF extension 3 €300m capex invested since the spin off New Coating 3 New production units starting in 2011: unit Kynar® PVDF and rheological additives (Coatex) Polyamides extension 2000 200
Slide 23: A world-class Thiochemicals platform in Malaysia
A world-class Thiochemicals platform in Malaysia First industrial thiochemicals platform in Asia for Arkema Methionine production for the fast growing animal nutrition market Partnership with CJ Cheil-Jedang on a unique bio-technology process Total capex: $400m (50/50 – Arkema/CJ) JV1 (majority stak
Slide 24: Developing a global manufacturing base
Developing a global manufacturing base Coating resins PMMA Thiochemicals Polyamides PVDF and fluorogas H2O2 Acrylics 24 - Arkema - 2011 Press conference - Accelerating growth in Asia
Slide 25: A well balanced geographical footprint
A well balanced geographical footprint Europe Emerging countries 48% North America 40% 30% 25% 30% Asia 29% 18% RoW 5% 5% 2010 2015(e) 2010 2015(e) 2010 2015(e) 2010 2015(e) % of sales per zone 25 - Arkema - 2011 Press conference - Accelerating growth in Asia
Slide 26: A strong pipeline of innovations
A strong pipeline of innovations
Slide 27: Megatrends create tremendous opportunities for Arkema
Megatrends create tremendous opportunities for Arkema New energies Access to drinking water % of population World Over one The solar radiation 80 energy billion people that reaches the earth demand in the world today 60 represents between will more do not have access 6,000 and 10,000 times as than d
Slide 28: Fully positioned to address these megatrends
Fully positioned to address these megatrends Our customers Sustainability issues Fossil Fossil raw raw materials materials • Water management • Water treatment • Automotive • Mobility and • Construction communication • Coating & adhesive • LED lighting • Energy • Biofuels • Health & cosmetics • New
Slide 29: 4 innovation platforms
4 innovation platforms Water New Photovoltaic Membranes management energies Li-ion batteries Thermoplastic composites Lightweight Biobased for glass & Renewable polymers materials metal substitution 29 - Arkema - 2011 Press conference - A strong pipeline of innovations
Slide 30: Membranes
Membranes Water management Microfiltration Ultrafiltration Nanofiltration Reverse Osmosis MF UF NF RO µm) Size (µ 10 1 0.1 0.01 0.001 0.0001 MF UF NF RO Suspended solids, Macromolecules, Multivalent Monovalent Water algae, bacteria viruses ions ions Example of Ultrafiltration membranes 30 - Arkema -
Slide 31: A global approach to the Photovoltaic market
A global approach to the Photovoltaic market New energies Efficiency (%) Thin layer PV panels Concentrated PV panels 30 Standard module in crystalline silicon Organic PV panels Cover material Connected silicon strips 20 Backsheet Encapsulation Thermoplastic resins TODAY TOMORROW 10 Industrial Pilot
Slide 32: Materials in Li-ion batteries
Materials in Li-ion batteries New energies Charge Current Conductive Conductive additive additive Active Active matter: matter: Anode for for cathodes: cathodes: Cathode Separator Activated Activated carbon carbon Carbon Carbon Nanotubes Nanotubes Graphistrength®® Graphistrength Separator: Separator
Slide 33: Glass & metal substitution
Glass & metal substitution Lightweight materials Nanostructured PMMA in car manufacture 300 nm 30 nm Rilsan® HT, a High Temperature polyamide to replace metal components in under-hood applications 33 - Arkema - 2011 Press conference - A strong pipeline of innovations
Slide 34: Biobased polymers
Biobased polymers Renewable Acrylics for High temperature coatings polyamide Plants Additives for Thermoplastic elastomer “greener roads” 34 - Arkema - 2011 Press conference - A strong pipeline of innovations
Slide 35: Innovation is the heart of Arkema's strategy
Innovation is the heart of Arkema’s strategy Serquigny Verneuil Carling Kyoto 9 research centers 2.5% of sales 1,200 researchers King of Prussia Genay (Coatex) Cary Lacq Pierre-Bénite 35 - Arkema - 2011 Press conference - A strong pipeline of innovations
Slide 36: R&D center in Changshu
R&D center in Changshu « CRDC » ENT NEW UNCEM Arkema’s 10th R&D Center O ANN Ground-breaking event on October 12, 2011 Geographic and technical complementary with the other R&D centers in France, Japan and the US Industrial proximity: housed on Changshu platform Commercial proximity: close to our Ch
Slide 37: New R&D center in Changshu
New R&D center in Changshu Areas of expertise: 3 Performance polymer processing 3 Technical Support for our customers in China and South-East Asia, in particular in sports, electronic packaging, renewable energies, automotive and cable manufacture 3 Polymerization 3 Development of clean, reliable an
Slide 38: €500m new sales from innovation
€500m new sales from innovation Additional sales from new products (€m) +€500m Others +€400m Water treatment High performance polymers +€100m New energies 2009 2010 2015(e) €500m of new sales with an EBITDA margin > 20% 38 - Arkema - 2011 Press conference - A strong pipeline of innovations
Slide 39: Conclusion
Conclusion Spin off: a true success story 2011, confident in achieving an excellent year with an EBITDA > €1bn Remain attentive to the macro-economic environment Acceleration of growth: 3 50% organic / 50% by acquisition 3 Emerging countries and innovation in megatrends 3 Strong focus on Asia, notab
Slide 40: 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