Slide 1: Cheuvreux conference
Cheuvreux conference Thierry LEMONNIER CFO
Slide 2: The new Arkema: Well positioned for profitable growth
The new Arkema Well positioned for profitable growth
Slide 3: The new Arkema
The new Arkema Sales by segment Sales of €6.5 bn High 33% 34% Coating Performance Solutions Materials EBITDA close to €1bn 33% Industry-leading margin ~ 15% Industrial Specialties 14,000 employees in 40 countries Sales by region Strong balance sheet Europe 40% 34% North America 26% Asia and RoW 3
Slide 4: Rapid and deep transformation executed
Rapid and deep transformation executed ● Positioned for profitable growth ● Business portfolio overhauled ● Profitability restored ● Global coating segment created ● High value performance materials ● Over € 500 m segment built fixed cost savings ● Sales in high growth countries ● Margin sustainably
Slide 5: More focused, more profitable, more resilient
More focused, more profitable, more resilient EBITDA (€m) Sales by segment Close to €1 bn 24% 33% 34% 355 67% 42% 2005 2012e 2005 2012e Vinyls Performance Products Industrial Chemicals Portfolio changes Sales by region Bolt-on Non-core acquisitions divestments 25% 34% €1.6 bn Sales Sales 57% 40% €1.
Slide 6: Strong competitive advantages
Strong competitive advantages Leading positions in specialty niches Global and balanced geographical coverage Interacting with the leaders (customers, suppliers, partners) Strong technology base ● Broad base of proprietary technologies ● Rich pipeline of innovation across businesses Ability to manag
Slide 7: Three new reporting segments
Three new reporting segments High Performance Materials Industrial Specialties Coating Solutions Solutions for decorative paints, World of high value and Global and integrated industrial coatings and innovative solutions industrial niches high-growth acrylic applications ● Specialty polyamides ● Thi
Slide 8: Among top players on 90% of our sales
Among top players on 90% of our sales POSITION MARKET SIZE (mT) MAIN PLAYERS % GROUP SALES • Evonik #1 Specialty polyamides • Ems 0.2 14% #1 PVDF • Solvay • Akzo Nobel #2 Organic peroxides 0.2 • United Initiators 4% #1 Thiochemicals 0.7 • Chevron Phillips 9% • Dupont #1/2 Fluorogases 1.6 • Honeywell
Slide 9: Diversified end markets with long term growth
Diversified end markets with long term growth Others 8% 22% Consumer goods Health, hygiene and beauty, Wellness, Sports and leisure, Packaging, Textile, etc. 16% Chemicals, plastics Water 3% Electronics 3% 13% Nutrition 4% Industrial coatings 6% Construction 6% 12% Energy 7% Decorative paints Transp
Slide 10: Differentiated approach to manage our portfolio
Differentiated approach to manage our portfolio HIGH GROWTH VALUE “BUILDING BLOCK” High • Specialty polyamides ● • Fluoropolymers ● Performance • Filtration and Adsorption ● Materials ● • Organic peroxides • Acrylics ● Coating • Coating resins ● Solutions • Coatex ● Secure competitive supply • UV cu
Slide 11: FY'12 outlook confirmed
FY’12 outlook confirmed Global macro-economic conditions remain contrasted Raw materials still volatile and at high level July and August in line with expectations Arkema’s ongoing initiatives support strong internal momentum ● Integration of Hipro-Casda (specialty polyamides) on February 1st ● Clos
Slide 12: 2016 ambition: A world leader in specialty chemicals and advanced materials
2016 ambition A world leader in specialty chemicals and advanced materials
Slide 13: Our roadmap to 2016
Our roadmap to 2016 Deliver consistent profitable growth and solid cash flow Accelerate expansion in High Performance Materials through innovation in sustainability (oil and gas, automotive, new energies) and bolt-on acquisitions Broaden reach in higher growth countries beyond China Increase further
Slide 14: 2016 financial objectives
2016 financial objectives Profitable High Higher growth Acrylic Operational Market-driven growth Performance countries downstream excellence €8 bn 16% < 40% Sales EBITDA margin Gearing Organic High Performance growth + €0.9 bn Materials 18% M&A + €0.6 bn Industrial Specialties 17% Coating Solutions
Slide 15: Contribution from organic growth well underway
Contribution from organic growth well underway Profitable High Higher growth Acrylic Operational Market-driven growth Performance countries downstream excellence Sales (€bn) Future M&A Announced or and started organic Divestment organic projects 8 projects projects 6.5 ● Project to divest ● Thiochem
Slide 16: Accelerate expansion in High Performance Materials
Accelerate expansion in High Performance Materials Profitable High Higher growth Acrylic Operational Market-driven growth Performance countries downstream excellence Sales by segment €8bn €6.5bn 38% + €0.9bn High Performance Materials 33% 30% Industrial Specialties 33% Coating Solutions 34% 32% 2012
Slide 17: Sales growth of 40% in High Performance Materials
Sales growth of 40% in High Performance Materials Profitable High Higher growth Acrylic Operational Market-driven growth Performance countries downstream excellence Polymer pyramid Arkema focused on the high end of the range Balance between organic developments and bolt-on acquisitions Leverage mega
Slide 18: Expansion in higher growth countries
Expansion in higher growth countries Profitable High Higher growth Acrylic Operational Market-driven growth Performance countries downstream excellence Sales by region €8bn €6.5bn 30% + €0.7bn Asia and RoW 26% 35% North America 34% Europe 40% 35% 2012e 2016e 18
Slide 19: Differentiated development pace across regions
Differentiated development pace across regions Profitable High Higher growth Acrylic Operational Market-driven growth Performance countries downstream excellence North America Europe Higher growth countries 3.3 Asia, South America, Middle-East Sales (€bn) 2.8 2.8 2.6 2.4 2.2 1.7 1.5 0.9 2005 Current
Slide 20: Increase further acrylic downstream integration
Increase further acrylic downstream integration Profitable High Higher growth Acrylic Operational Market-driven growth Performance countries downstream excellence Acrylic monomers (“building block”) = Secure competitive supply Rheology Super Water Oil & gas UV curing Coatings additives Coating resin
Slide 21: Dividend increase reflects confidence in our long term prospects
Dividend increase reflects confidence in our long term prospects Dividend (€/share) 1.3 1.3 Reminder of Arkema general policy 1.0 “Arkema intends to pay a stable to reasonably rising dividend each year” 0.75 0.6 0.6 Arkema targets a 30% payout ratio on adjusted net income For 2012, dividend per shar
Slide 22: Looking ahead
INVESTOR 2012 Looking ahead INNOVATIVE “@& CHEMISTRY
Slide 23: Strong confidence in our long term potential
Strong confidence in our long term potential Several major current projects will start delivering only full speed after 2016 ● Thiochemicals in Malaysia ● PVDF expansion in Pierre-Bénite ● Ramp-up of Clear Lake expansion in acrylic Other long term thoughts could materialize over 2016-2020 ● Acrylic
Slide 24: Main objectives 2020
Main objectives 2020 EBITDA and EBITDA margin (%) Sales (€bn) Close to 16% 17% ~15% 10 8 6.5 6% 5.7 2005 2012e 2016e 2020e 2005 2012e 2016e 2020e Gearing < 40% 24
Slide 25: Arkema key take-aways
Arkema key take-aways Strong portfolio of profitable niche chemical businesses Powerful operating model with superior track record of value creation Innovation pipeline and technology leadership combined with enhanced market-driven approach driving our margins up Selective and profitable growth ● Ta
Slide 26: Q&A
INVESTOR 2012 Q&A INNOVATIVE “@& CHEMISTRY
Slide 27: 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