Arkema Sa · EURONEXT:AKE
Arkema Sa — Q2 2012 Earnings Presentation
13 slides from Arkema Sa's earnings presentation, July 2012
Slide 1: 2nd quarter 2012 results
24 quarter 2012 results ARKEeEMA The world is our inspiration
Slide 2: Principles applied for 2Q'12 and 1H'12 consolidated accounts
Principles applied for 2Q’12 and 1H’12 consolidated accounts Consolidated statements were prepared in accordance with IFRS 5 rules following the announcement on November 23rd, 2011 of Vinyls* divestment. Income statement Balance sheet Cash flow statement excludes Vinyls excludes Vinyls includes Viny
Slide 3: Strong performance despite challenging macro
Strong performance despite challenging macro Sales (€m) +15% +15% sales at €1,719m 1,719 € 306m EBITDA 1,489 • Close to the record level of 2Q’11 • EBITDA above €300m for the 2nd time in Arkema’s history 17.8% EBITDA margin 2Q’11 2Q’12 • 18.2% in Industrial Chemicals which continues to deliver a str
Slide 4: Key drivers of Arkema 2Q'12 performance
Key drivers of Arkema 2Q’12 performance Challenging market conditions • Strongest season of the year for coatings and fluorogases • High basis of comparison of 2Q’11 • Volatility of raw material costs at a high level • Positive impact of foreign exchange rate • Challenges in Europe and slower Asian
Slide 5: Highlights since April 1st, 2012
Highlights since April 1st, 2012 Share capital increase reserved to employees for a total € 29 m in April 2012 € 230 m bond issue in April 2012 maturing April 2020 at 3.85% per year Payment of a dividend of 1.30€ / share in June 2012 for a total amount of € 81 m Closing of the divestment of Vinyls o
Slide 6: 2Q'12 key figures
2Q’12 key figures in €m (except EPS) 2Q’11 2Q’12 Variation Sales 1,489 1,719 +15.4% EBITDA 321 306 -4.7% EBITDA margin 21.6% 17.8% Recurring operating income 260 229 -11.9% Adjusted net income - continuing operations 203 151 -25.6% Net income - continuing operations 198 129 -34.8% Net income - disco
Slide 7: +15% sales versus 2Q'11
+15% sales versus 2Q’11 FX rate Sales (€m) Scope of translation business effect Volumes +5% Price +17% -4% -3% 1,719 High basis of Specialty resins, 1,489 comparison • Positive pricing in Performance alkoxylates and last year Products Hipro/Casda notably in • Back to mid cycle Industrial conditions
Slide 8: Industrial Chemicals: strong set of results
Industrial Chemicals: strong set of results in €m 2Q’11 2Q’12 Variation 1Q’12 Sales 980 1,141 +16.4% 1,083 EBITDA 226 208 -8.0% 170 EBITDA margin 23.1% 18.2% 15.7% Recurring operating income 189 159 -15.9% 123 +16% sales at € 1,141 m • Benefits from specialty resins acquired on July 1st, 2011 • Lowe
Slide 9: Performance Products: very high EBITDA level
Performance Products: very high EBITDA level in €m 2Q’11 2Q’12 Variation 1Q’12 Sales 504 572 +13.5% 534 EBITDA 99 109 +10.1% 102 EBITDA margin 19.6% 19.1% 19.1% Recurring operating income 75 82 +9.3% 76 +14% sales at €572m • Positive pricing with favorable product mix • Benefits from acquisitions (b
Slide 10: Disposal of vinyl business closed
Disposal of vinyl business closed As expected, closing made on July 3rd, 2012 (project announced on November 23rd, 2011) The divested vinyl business generated around € 1 bn sales with 2,630 employees In 2nd quarter 2012, net income of discontinued operations amounted to € (141) m including: • €(47)m
Slide 11: Cash flow and net debt at end of June 2012
Cash flow and net debt at end of June 2012 +€201m operating cash flow from continuing operations in 1H’12 (+€95m in 1H’11) € 180m capex including € 148m recurring capex and € 32m non recurring capex (Jarrie, Lacq 2014, Thiochemicals in Malaysia) €222m cash outflow related to M&A (mainly Hipro – Casd
Slide 12: Outlook
Outlook Arkema will continue to carefully monitor the macro-economic environment which remains challenging and uncertain • Sovereign debt issue in Europe • Volatility of raw material costs and foreign exchange rates • Traditional summer and year-end seasonality Arkema will continue to focus on inter
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