Slide 1: Elementis Enhances Personal Care Business with $360 Million Acquisition of SummitReheis
ELEMENTIS ENHANCES PERSONAL CARE BUSINESS WITH $360 MILLION ACQUISITION OF SUMMITREHEIS Paul Waterman CEO February 10 2017 | London 1
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation, the presentation materials and discussion may contain certain forecasts, projections and forward looking statements – that is statements related to future, not past, events – in relation to, or in respect of, the financial condition, operations or businesses o
Slide 3: Highlights
HIGHLIGHTS SUMMITREHEIS IS THE GLOBAL LEADER SUPPLYING ANTI-PERSPIRANT (AP) ACTIVE INGREDIENTS SummitReheis is an attractive business in a growing end market – AP actives market expected to grow at 5% per annum Products highly complementary to those of Elementis SUMMIT- Combined personal care busine
Slide 4: How Will We Reignite Growth?
HOW WILL WE REIGNITE GROWTH? PURSUE BEST GROWTH OPPORTUNITIES PURSUE INNOVATE FOR CREATE A SUPPLY CHAIN DISTINCTIVENESS CULTURE OF HIGH 1 Global KAM TRANSFORMATION & HIGH MARGINS PERFORMANCE 2 Coatings Asia 3 Personal Care global growth Elementis Capital Markets Day | November 2016 | London Highligh
Slide 5: Elementis Specialties Business Model
ELEMENTIS SPECIALTIES BUSINESS MODEL ELEMENTIS SPECIALTIES SUMMITREHEIS SUMMITREHEIS PROVIDES CRITICAL INGREDIENTS FOR AP PRODUCT PERFORMANCE CRITICAL ENABLING PRODUCTS ANTI-PERSPIRANTS - A GROWTH SEGMENT ATTRACTIVE END MARKETS WITHIN PERSONAL CARE MODEST SHARE OF CUSTOMER COSTS EBITDA MARGINS 20%+
Slide 6: Overview of SummitReheis
OVERVIEW OF SUMMITREHEIS INTRODUCTION TO SUMMITREHEIS SUMMITREHEIS PRODUCTS USES The global leader in anti-perspirant Product Applications actives market Aluminium Anti-perspirant aerosols and AP ACTIVES Long standing relationships with consumer products companies * Chlorohydrate (ACH) roll-ons Alum
Slide 7: The SummitReheis Business
THE SUMMITREHEIS BUSINESS KEY FACTS 2015 SALES BY END MARKET 2015 SALES BY GEOGRAPHY $134m revenue (2016 expected) South AP actives America Underlying EBITDA of approximately Specialty Europe dental $28m (2016 expected), underlying Asia and 12% 20% Middle EBITDA margins 20%+ East 5 production facili
Slide 8: Personal Care Market
PERSONAL CARE MARKET PERSONAL CARE MARKET ELEMENTIS PERSONAL CARE HAS ALREADY GROWING FASTER THAN GDP BEEN GROWING FASTER Estimated Global Personal Care Consumption Sales ($bn) ($m) CAGR = ~4.6% CAGR = ~11% 400 60 50 300 40 200 30 20 100 10 0 0 2015A 2016F 2017F 2018F 2019F 2020F 2012 2013 2014 2015
Slide 9: Large, Growing Market...
LARGE, GROWING MARKET... DEMOGRAPHIC TRENDS DRIVING OVERVIEW DEMAND Millions of consumers earning >$5k per annum ANTI-PERSPIRANTS - Growing at 5% annually to 2021 4,278 $13BN GLOBAL MARKET Growth driven by demographic trends 3,265 1,739 RoW DEVELOPED MARKETS Increasing penetration of APs in anti- 1,
Slide 10: …With Emerging Markets Reinforcing the Trends for the Long Term
…WITH EMERGING MARKETS REINFORCING THE TRENDS FOR THE LONG TERM SIGNIFICANT OPPORTUNITY IN EMERGING …COMPLEMENTED BY ELEMENTIS’ MARKETS… INTERNATIONAL FOOTPRINT Anti-perspirant penetration of APDO* segment (2015) 20% 30% 60% 60% 80% 70% 40% 40% North America Europe Latin America RoW Market Developme
Slide 11: SummitReheis a Natural Fit for Elementis
SUMMITREHEIS A NATURAL FIT FOR ELEMENTIS KEY ANTI-PERSPIRANT COMBINED ELEMENTIS PERSONAL MARKET DRIVERS CARE AND SUMMITREHEIS BUSINESS Elementis’ hectorite used by many customers in Growth in aerosols outpacing other formats conjunction with SummitReheis’ actives Elementis’ global footprint to drive
Slide 12: Combination Creates an Elementis Personal Care Business of Scale
COMBINATION CREATES AN ELEMENTIS PERSONAL CARE BUSINESS OF SCALE ELEMENTIS PRO FORMA ANNUAL NEW PERSONAL CARE BUSINESS REVENUE COMPOSITION (2016E) Acquisition creates a ~$200m revenue personal care business Personal care New personal care business accounts for: ~25% • Approximately one quarter of El
Slide 13: Strong Financial Rationale
STRONG FINANCIAL RATIONALE ATTRACTIVE EARNINGS AND VALUE CREATION OPPORTUNITY Immediate adjusted earnings per share accretion - double digit in 2018 FINANCIAL IMPACT Immediately accretive to Elementis’ margins Opportunity to accelerate growth of both Elementis and SummitReheis VALUE CREATION Up to $
Slide 14: Financing and Completion
FINANCING AND COMPLETION ELEMENTIS TO REMAIN PRUDENTLY FINANCED POST ACQUISITION Acquisition to be financed from existing cash resources and proceeds from new five year $475 million, fully underwritten debt facilities on similar terms to SOURCES OF FINANCING existing RCF New debt will also be used t
Slide 15: Elementis and SummitReheis - A Winning Combination
ELEMENTIS AND SUMMITREHEIS - A WINNING COMBINATION Attractive business Growing end markets Complementary Strong financial combination rationale CREATES A PERSONAL CARE BUSINESS OF SCALE AN IMPORTANT STEP IN DELIVERING ELEMENTIS’ STRATEGY TO REIGNITE GROWTH 15
Slide 16: Q&A
Q&A Highlights SummitReheis an Attractive Complementary Strong financial Prudently Q&A attractive business end markets combination rationale financed 16