Arkema Sa · EURONEXT:AKE
Arkema Sa — Q1 2020 Earnings Presentation
15 slides from Arkema Sa's earnings presentation, May 6, 2020
Slide 1: First Quarter 2020 Results
FIRST QUARTER 2020 RESULTS 6 MAY 2020
Slide 2: A New Reporting Structure
A NEW REPORTING STRUCTURE ALIGNED WITH THE AMBITION OF BECOMING A PURE SPECIALTY MATERIALS PLAYER IN 2024 Specialty Materials Adhesive Solutions Advanced Materials Coating Solutions Intermediates High- PMMA Construction Industrial Performance Coating Coating performance Fluorogases & consumer assemb
Slide 3: 1Q'20 Financial Highlights
1Q’20 FINANCIAL HIGHLIGHTS - 5.7% YoY, marked by the impact of Covid-19 €2,088m sales Specialty Materials 1 accounting for 81% of total Group sales (vs 79% in 1Q’19) ~ €45m impact from the effects of Covid-19 EBITDA stable in Specialty Materials 1, excluding the impact of Covid-19 €300m EBITDA Adhes
Slide 4: Main Announcements Since 1 January 2020
MAIN ANNOUNCEMENTS SINCE 1 JANUARY 2020 LIP Climate & Environment KERTEH 2 Bolt-on acquisition New ambitious objectives * Attractive growth capex in in Adhesive Solutions by 2030 Advanced Materials Danish leader in tile adhesives, water CLIMATE AIR WATER ENERGY Doubling of the methyl mercaptan proof
Slide 5: Performance Marked by the Coronavirus Outbreak
1Q’20 PERFORMANCE MARKED BY THE CORONAVIRUS OUTBREAK EBITDA REBIT ADJ. NET INCOME NET DEBT (incl. hybrid bonds) In €m In €m In €m In €m 14.4% 7.7% €1.31 1.8x MARGIN MARGIN ADJ. EPS EBITDA 165 2,481 370 2,331 247 300 100 160 1Q'19 1Q'20 1Q'19 1Q'20 1Q'19 1Q'20 31/12/19 31/03/20 5 FIRST QUARTER 2020 R
Slide 6: 1Q'20 Key Figures
1Q’20 KEY FIGURES In €m (except EPS) 1Q’19 1Q’20 Change Sales 2,215 2,088 (5.7)% EBITDA 370 300 (18.9)% Specialty Materials 1 292 256 (12.3)% Intermediates 103 68 (34.0)% Corporate (25) (24) EBITDA margin 16.7% 14.4% Recurring operating income (REBIT) 247 160 (35.2)% REBIT margin 11.2% 7.7% Adjusted
Slide 7: 1Q'20 Sales Bridge
1Q’20 SALES BRIDGE In €m Volumes Price Scope Currency (4.8)% (5.1)% +3.4% +0.8% Economic downturn Lower propylene Integration of Stronger US dollar caused by the prices in Coating acquisitions, against the euro Covid-19 health crisis Solutions mainly ArrMaz in Asia and in Europe Lower prices in from
Slide 8: Adhesive Solutions (25% of Group Sales)
ADHESIVE SOLUTIONS (25% OF GROUP SALES) 1Q’20 KEY FIGURES 1Q’20 SALES DEVELOPMENT 1Q’20 SALES BY BUSINESS LINE In €m 1Q’19 1Q’20 Change Volumes (3.2)% Sales 513 515 +0.4% Construction & Prices +0.4% Consumer EBITDA 62 69 +11.3% 247 268 Currency +0.2% EBITDA margin 12.1% 13.4% Industrial assembly Rec
Slide 9: Advanced Materials (31% of Group Sales)
ADVANCED MATERIALS (31% OF GROUP SALES) 1Q’20 KEY FIGURES 1Q’20 SALES DEVELOPMENT 1Q’20 SALES BY BUSINESS LINE In €m 1Q’19 1Q’20 Change Volumes (9.9)% Sales 672 652 (3.0)% 200 High performance Prices (1.7)% polymers EBITDA 151 122 (19.2)% Currency +0.9% EBITDA margin 22.5% 18.7% 452 Performance addi
Slide 10: Coating Solutions (25% of Group Sales)
COATING SOLUTIONS (25% OF GROUP SALES) 1Q’20 KEY FIGURES 1Q’20 SALES DEVELOPMENT 1Q’20 SALES BY BUSINESS LINE In €m 1Q’19 1Q’20 Change Volumes (2.7)% Sales 564 517 (8.3)% 144 Coating resins Prices (8.3)% EBITDA 79 65 (17.7)% Currency +1.1% EBITDA margin 14.0% 12.6% 373 Coating additives Rec. operati
Slide 11: Intermediates (19% of Group Sales)
INTERMEDIATES (19% OF GROUP SALES) 1Q’20 KEY FIGURES 1Q’20 SALES DEVELOPMENT In €m 1Q’19 1Q’20 Change Volumes (2.2)% Sales 459 397 (13.5)% Prices (12.1)% EBITDA 103 68 (34.0)% Currency +0.8% EBITDA margin 22.4% 17.1% Rec. operating income 75 35 (53.3)% Scope - 1Q’20 HIGHLIGHTS €397m sales, down 13.5
Slide 12: 1Q'20 Cash Flow
1Q’20 CASH FLOW RECONCILIATION OF EBITDA TO NET CASH FLOW 1Q’20 HIGHLIGHTS In €m 1Q’19 1Q’20 EBITDA 370 300 Current taxes (47) (26) Tax rate: 21% of REBIT (excl. exceptional items) Cost of debt (24) (25) ● 2020e tax rate: ~21% of REBIT Change in working capital and fixed assets payables 1 (126) (181
Slide 13: Net Debt Bridge (Including Hybrid Bonds)
1Q’20 NET DEBT BRIDGE (INCLUDING HYBRID BONDS) In €m 1.8x EBITDA 95 17 2,481 2,331 38 Mainly LIP acquisition 700 in Adhesive Solutions 1,000 hybrid bonds hybrid bonds 1,631 1,481 31/12/2019 Free cash M&A FX and 31/03/2020 flow others 13 FIRST QUARTER 2020 RESULTS
Slide 14: 2020 Outlook
2020 OUTLOOK Global demand expected to slow significantly in the second quarter of the year due to the lockdown measures enforced across the different regions of the world. Construction in Europe and US is a market that will be more affected in the second quarter. The Group anticipates a gradual imp
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 continues to rapidly spread across the world, and the evol