Arkema Sa · EURONEXT:AKE
Arkema Sa — Q1 2008 Earnings Presentation
10 slides from Arkema Sa's earnings presentation, May 14, 2008
Slide 1: 1st quarter 2008 results
1st quarter 2008 results Thierry Lemonnier, Chief Financial Officer May 14th, 2008
Slide 2: Q1'08 highlights
Q1’08 highlights An excellent set of results which EBITDA (€m) & EBITDA margin demonstrates clearly our ability to resist in a more challenging environment 10.7% 9.0% EBITDA margin of Industrial Chemicals & Performance Products > 13.5% 159 +19% 134 Benefits from a quick and in-depth transformation Q
Slide 3: Excellent set of results in Q1'08
Excellent set of results in Q1’08 Q1’07 Q1’08 Variation Sales 1,488 1,492 +0.3% EBITDA 134 159 +19% EBITDA margin 9.0% 10.7% Operating income (recurring) 80 100 +25% Non recurring items (27) 5 Adjusted net income 52 67 Net income (group share) 44 72 +64% Net debt (end of year) 459 576 3
Slide 4: +6.2% organic growth
+6.2% organic growth Organic growth by segment +6.1% (1.9)% (4.0)% €1,488m +0.1% Scope €1,492m Performance +4.5% products Volume Price Conversion effect +6.2% organic growth Industrial +8.9% Chemicals Vinyl +3.4% Products Q1’07 Q1’08 Q1’07 sales sales sales Q1’08 sales 4
Slide 5: +19% EBITDA in a more challenging environment
+19% EBITDA in a more challenging environment Another quarter with very significant EBITDA improvement +19% EBITDA growth in Q1’08 vs Q1’07 10.7% EBITDA margin in Q1’08 (9.0% in Q1’07) 6.1% increase of average unit prices Thanks mainly to the benefits of self help initiatives Positive impact from re
Slide 6: Vinyl Products: Pressure on PVC margins
Vinyl Products: Pressure on PVC margins 1st quarter performance (€m) Q1’07 Q1’08 ∆ Sales 374 389 +4.0% EBITDA 28 17 (39.3%) EBITDA margin 7.5% 4.4% - Recurring operating income 22 8 (63.6%) Sales increase sustained by good volumes in caustic soda High comparison basis in Q1’07 for PVC in Europe Incr
Slide 7: Industrial Chemicals: 13.9% EBITDA margin
Industrial Chemicals: 13.9% EBITDA margin 1st quarter performance (€m) Q1’07 Q1’08 ∆ Sales 650 675 +3.8% EBITDA 66 94 +42.4% EBITDA margin 10.2% 13.9% - Recurring operating income 40 65 +62.5% +8.9% sales increase excluding scope and conversion effects Satisfactory global demand Increase in sales pr
Slide 8: Performance Products: Impact from self-help
Performance Products: Impact from self-help 1st quarter performance (€m) Q1’07 Q1’08 ∆ Sales 463 427 (7.8%) EBITDA 54 58 +7.4% EBITDA margin 11.7% 13.6% - Recurring operating income 33 37 +12.1% +4.5% sales excl. scope (sale of UF resins in Leuna) and conversion effects Increase in sales prices in e
Slide 9: Confirm 2008 target
Confirm 2008 target A more challenging environment in 2008 High raw material and energy costs Unfavorable euro/US dollar exchange rate Remaining pressure on Vinyl Products margins as C2 price continue to increase In-depth transformation continues Implementation of self-help initiatives in line with
Slide 10: 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