Elementis Plc · LSE:ELM
Elementis — Investor Day (November 2016)
66 slides from Elementis's investor day presentation, Nov 14, 2016
Slide 1: Capital Markets Day 2016
CAPITAL MARKETS DAY 2016 November 14 2016 | London
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: Welcome
WELCOME Andrew Duff Chairman How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today Pursue Growth Supply Chain Innovate for High Performance for Investors? 3 Opportunities Transformation Distinctiveness Culture
Slide 4: Agenda
AGENDA WELCOME Andrew Duff INTRODUCTION Paul Waterman ELEMENTIS TODAY Ralph Hewins HOW WILL WE REIGNITE GROWTH? Paul Waterman & team WHAT DOES IT MEAN FOR INVESTORS? Ralph Hewins CLOSING Paul Waterman Q&A Panel How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today P
Slide 5: Elementis Presenters
ELEMENTIS PRESENTERS Andrew Duff Paul Waterman Ralph Hewins Chairman Chief Executive Officer Chief Financial Officer David Brown Luc van Ravenstein Rob Mangold Dr Kenneth Smith VP Coatings Americas VP Personal Care VP Global Supply Chain VP Global R&D and Manufacturing How will we Reignite Growth? I
Slide 6: Introduction
INTRODUCTION Paul Waterman Chief Executive Officer How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today Pursue Growth Supply Chain Innovate for High Performance for Investors? 6 Opportunities Transformation Distinctiveness Culture
Slide 7: Elementis Today
ELEMENTIS TODAY STRENGTHS OPPORTUNITIES Dedicated employees Strong China position Focus on fewer, Some cyclical exposure but more material growth opportunities Customer focussed Growing personal care culture business Structure & systematic Some disadvantaged processes to embed Distinctive technology
Slide 8: Elementis Today
ELEMENTIS TODAY Ralph Hewins Chief Financial Officer Elementis How will we Reignite Growth? Introduction What Does it Mean Closing Q&A Today Pursue Growth Supply Chain Innovate for High Performance for Investors? 8 Opportunities Transformation Distinctiveness Culture
Slide 9: Elementis Business Today
ELEMENTIS BUSINESS TODAY REVENUE 1,400 GLOBAL MANUFACTURING FOOTPRINT ON $0.7bn EMPLOYEES 4 CONTINENTS WITH18 SITES 3 SEGMENTS: SPECIALTY PRODUCTS CHROMIUM 3 SPECIALTY PRODUCTS COATINGS PERSONAL CARE BUSINESS SURFACTANTS AREAS: ENERGY Elementis How will we Reignite Growth? Introduction What Does it
Slide 10: Elementis Overview
ELEMENTIS OVERVIEW REVENUE CONTRIBUTION KEY MARKET POSITION DIFFERENTIATORS END MARKET GROWTH 2011 2015 / USPs Organoclay leader Rheology Modifier Coatings demand Distinctive deco leader SPECIALTY SPECIALTY Personal care 59% 67% technology Unique hectorite growth GDP ++ PRODUCTS PRODUCTS mine Close
Slide 11: Chromium
CHROMIUM WHAT WE DO GLOBAL CHROMIUM MARKET SHARE IN CHROMIUM CHEMICALS MARKET (KT) A full range of Chromium chemicals for diverse applications 100% North America Building Products Applications Other block 8% 80% • Coatings Chrome Oxide • Refractory China Europe • Chrome Metal 60% • Timber Treatment
Slide 12: Chromium NA – Opportunities to Strengthen Competitive Position
CHROMIUM NA – OPPORTUNITIES TO STRENGTHEN COMPETITIVE POSITION CHROMIUM IS A CYCLICAL CHROMIUM IS A STRONG BUT N. AMERICA IS STABLE… BUSINESS GLOBALLY… CASH GENERATOR Operating Income Trend Operating Profit Operating Cashflow Contribution Margin % Indexed ($m) 400 80 120 North America 350 70 100 300
Slide 13: In NA There Are Opportunities to Strengthen Competitive Position
IN NA THERE ARE OPPORTUNITIES TO STRENGTHEN COMPETITIVE POSITION STRENGTHEN NORTH EXTEND NORTH AMERICAN OPTIMISE GLOBAL AMERICAN BASE PRODUCT PORTFOLIO PRODUCT MIX STRENGTHEN CHROMIUM EXTEND PRODUCT PORTFOLIO OPTIMISE PRODUCT MIX DISTRIBUTION BUSINESS Dichromate to pigment, catalyst Optimise global
Slide 14: Specialty Products – A Global Leader in Rheological Modifiers
SPECIALTY PRODUCTS – A GLOBAL LEADER IN RHEOLOGICAL MODIFIERS ELEMENTIS LEADERSHIP POSITION Industrial applications – Deco coatings – Key partner to global COATINGS organoclay leader distinctive technology coatings customers Unique hectorite Extending coatings PERSONAL CARE position – #1 global tech
Slide 15: Specialty Products – We Serve the Largest, Faster Growing Industries
SPECIALTY PRODUCTS – WE SERVE THE LARGEST, FASTER GROWING INDUSTRIES Global Rheology Modifiers Market by Application = Elementis focus $0bn $2bn $4bn $6bn Cosmetics Adhesives Pharm- Oil 2015 HI&I Cons- Paints and coatings and and Inks aceu- and products truction personal care sealants ticals gas Cos
Slide 16: Breaking Out Specialty Products Sales
BREAKING OUT SPECIALTY PRODUCTS SALES COATINGS ENERGY PERSONAL CARE ($m) Reported currency Constant currency ($m) Reported currency Constant currency ($m) Reported currency Constant currency 400 80 60 350 70 50 300 60 40 250 50 200 40 30 150 30 20 100 20 10 50 10 0 0 0 2012 2013 2014 2015 2016 LTM 2
Slide 17: Coatings
COATINGS STRONG MARKET SHARE IN AN IMPORTANT DIFFERENTIATED HIGH VALUE AND SPECIALTY NICHE VALUE PROPOSITION Global Coatings Ingredient Overview $60bn BEST IN CLASS 100% Commodity additives and other TECHNOLOGY: High value additives Rheological modifiers Elementis For customer performance Solvent/Wa
Slide 18: Coatings – A Global, Diversified Business
COATINGS – A GLOBAL, DIVERSIFIED BUSINESS A GLOBAL PLAYER WITH A DIVERSIFIED BUSINESS Elementis Coatings Sales 100% Rest of world Deco 80% North America 60% Europe 40% Industrial Asia 20% A STRATEGIC SUPPLIER 0% TO THE WORLD’S LEADING By geography By end application COATINGS FORMULATORS Source: Elem
Slide 19: Coatings – Well Positioned for Future Growth
COATINGS – WELL POSITIONED FOR FUTURE GROWTH MACROTRENDS IN COATINGS OUR COMPETITIVE ADVANTAGE - product offerings make us World-class Industry consolidation of paint formulators a strategic partner to all the major formulators Strong demand growth from emerging markets Global footprint with strong
Slide 20: Personal Care
PERSONAL CARE PERSONAL CARE ELEMENTIS GROWING EVEN FASTER GROWING FASTER THAN GDP Estimated Global Personal Care Consumption Sales ($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 2016 LTM Constant currency | 2016 LTM =
Slide 21: Energy – Valuable Niche Business
ENERGY – VALUABLE NICHE BUSINESS GLOBAL PLAYER WITH CRITICAL TO DRILLING SUCCESS A WELL DIVERSIFIED BUSINESS % of Total $6.3bn Rheological modifiers ensure drilling mud 100% Synthetic based Salts performs as needed over a wide range of conditions Rheological 80% modifiers Lubricates drill bit, contr
Slide 22: Energy – Best Products for Toughest Drilling Conditions
ENERGY – BEST PRODUCTS FOR TOUGHEST DRILLING CONDITIONS VARIETY OF CHALLENGES – TRUSTED SUPPLIER TO TOP CUSTOMERS HIGH TEMPERATURE – COLD DEEP SHALE HIGH PRESSURE DRILLING CLIMATE WATER DRILLING Elementis How will we Reignite Growth? Introduction What Does it Mean Closing Q&A Today Pursue Growth Sup
Slide 23: Energy – Well Positioned for Oil Price Recovery
ENERGY – WELL POSITIONED FOR OIL PRICE RECOVERY MACROTRENDS IN ENERGY OUR COMPETITIVE ADVANTAGE Drilling in more challenging / technical conditions Hectorite based products are the gold standard Growth in shale markets expected to continue Technology leader in organoclays for stimulation fluids used
Slide 24: Surfactants – Small Niche Player
SURFACTANTS – SMALL NICHE PLAYER GLOBAL SURFACTANTS MARKET ELEMENTIS FOCUSSED IS LARGE AND CONSOLIDATED ON UNDERSERVED NICHES 2016 Global Surfactants Sales Our surfactants business is relatively small ($bn) 35 One asset (Delden, NL) 30 Others Elementis 2015 Allows us to pursue niche surfactants volu
Slide 25: How Will We Reignite Growth?
HOW WILL WE REIGNITE GROWTH? Paul Waterman Chief Executive Officer How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today for Investors? 25
Slide 26: A High Quality Business... But Growth Has Stalled
A HIGH QUALITY BUSINESS... BUT GROWTH HAS STALLED OPERATING PROFIT OPERATING MARGIN ($m) 160 20% 18% 140 16% 120 14% 100 12% 80 10% 8% 60 6% 40 4% 20 2% 0 0% 2010 2011 2012 2013 2014 2015 2016 LTM 2010 2011 2012 2013 2014 2015 2016 LTM Constant currency | 2016 LTM = 2H15 + 1H16 2016 LTM = 2H15 + 1H1
Slide 27: How Will We Reignite Growth? – Strategic Priorities
HOW WILL WE REIGNITE GROWTH? – STRATEGIC PRIORITIES PURSUE PURSUE INNOVATE FOR CREATE A BEST GROWTH SUPPLY CHAIN DISTINCTIVENESS CULTURE OF HIGH OPPORTUNITIES TRANSFORMATION & HIGH MARGINS PERFORMANCE How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today for Investo
Slide 28: Growth Opportunity #1 Global Key Account Management
GROWTH OPPORTUNITY #1 GLOBAL KEY ACCOUNT MANAGEMENT David Brown VP Coatings Americas How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today Pursue Growth for Investors? 28 Opportunities
Slide 29: Growth Opportunity #1 Implement Key Account Management
GROWTH OPPORTUNITY #1 IMPLEMENT KEY ACCOUNT MANAGEMENT OPPORTUNITIES TO GROW LARGEST, SYSTEMATIC APPROACH MOST IMPORTANT CUSTOMERS 100% Consistent global approach KAM BUSINESS MODEL that strengthens our business 80% Other Strategic plan – identifies Other 60% KAM TOOLKIT & PLAN opportunities; cross-
Slide 30: Growth Opportunity #1 Implement Key Account Management
GROWTH OPPORTUNITY #1 IMPLEMENT KEY ACCOUNT MANAGEMENT OUTCOMES SYSTEMATIC BETTER UNDERSTAND PROCESS CUSTOMER NEEDS MORE EFFICIENT DISPROPORTIONATELY ALLOCATION OF R&D GROW OUR BUSINESS RESOURCES AT LARGEST CUSTOMERS PPG's Corporate headquarters in Pittsburgh How will we Reignite Growth? Introductio
Slide 31: Growth Opportunity #2 Coatings Asia
GROWTH OPPORTUNITY #2 COATINGS ASIA How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today Pursue Growth for Investors? 31 Opportunities
Slide 32: Growth Opportunity #2 Grow in Asia
GROWTH OPPORTUNITY #2 GROW IN ASIA OPPORTUNITIES OPPORTUNITIES CHINA TO GROW BEYOND CHINA TO GROW DECO SHARE Asian Paint Market Asian Paint Market by Geography by End Market #1 in Rheology Modifiers in China Coatings 100% 100% Decorative Rest of Asia Decorative Large and effective 80% Rest of Asia 8
Slide 33: Asia Growth Agenda
ASIA GROWTH AGENDA CHINA INDIA & REST OF ASIA Industrial growth via new Seek to develop direct Bring distinctive technology products presence in India to market Grow in emerging premium decorative market 2015- 2020E Growth ~0% ~8-10% ~6-7% ~16-18% P.A. Key account management to grow top accounts 201
Slide 34: Growth Opportunity #3 Global Growth in Personal Care
GROWTH OPPORTUNITY #3 GLOBAL GROWTH IN PERSONAL CARE Luc van Ravenstein VP Personal Care How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today Pursue Growth for Investors? 34 Opportunities
Slide 35: Personal Care – High-Value Niche Participation
PERSONAL CARE – HIGH-VALUE NICHE PARTICIPATION Global Beauty and Personal Care Ingredients by Value Elementis focus HECTORITE GIVES US A DISTINCT ~$9bn ~$1bn 100% COMPETITIVE ADVANTAGE Natural gums Other Own the only commercial grade Clays and other 80% inorganics hectorite mine in the world Rheolog
Slide 36: Personal Care – Customer Relationships
PERSONAL CARE – CUSTOMER RELATIONSHIPS HIGH VALUE PREMIUM BRANDS STRONG STRATEGIC SUPPLIER TO THE WORLD’S LEADING PERSONAL CARE FORMULATORS How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today Pursue Growth 36 for Investors? Opportunities
Slide 37: Personal Care – New Synthetic Polymers Open Up Aqueous Applications
PERSONAL CARE – NEW SYNTHETIC POLYMERS OPEN UP AQUEOUS APPLICATIONS ESTIMATED SALES BY APPLICATION RHEOLUXE® OPENS UP MAJOR AND TECHNOLOGY NEW MARKETS FOR ELEMENTIS ~$0.3bn ~$0.2bn 100% Rheoluxe® significant functional benefit – replaces 10-20% of currently dominant carbomer or acrylate copolymers O
Slide 38: Personal Care – Significant Competitive Advantage
PERSONAL CARE – SIGNIFICANT COMPETITIVE ADVANTAGE MACROTRENDS IN PERSONAL CARE OUR COMPETITIVE ADVANTAGE Specific personal care markets are growing fast – Our products critical for performance e.g. antiperspirant and colour cosmetics Strong demand for high-end products Robust and growing demand for
Slide 39: Personal Care – How We Will Grow
PERSONAL CARE – HOW WE WILL GROW Penetrate high Drive Rheoluxe® Leverage Expand Asia potential hectorite penetration into key account and emerging product segments skincare management market distribution How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today Pursue G
Slide 40: 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 How will we Reignite Growth? Introduction Elementis What Does i
Slide 41: Pursue Supply Chain Transformation
PURSUE SUPPLY CHAIN TRANSFORMATION How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today Supply Chain for Investors? 41 Transformation
Slide 42: Supply Chain Transformation #1 Address Disadvantaged Assets
SUPPLY CHAIN TRANSFORMATION #1 ADDRESS DISADVANTAGED ASSETS AMERICAS EUROPE ASIA Castle Hayne CHROMIUM Corpus Christi Leather Tanning Plants (x3) Newberry Livingston Songjiang Milwaukee Hsinchu New Martinsville SPECIALTY Charleston PRODUCTS St Louis Jersey City Anji Palmital Changxing SURFACTANTS De
Slide 43: Supply Chain Transformation #2 Manufacturing Productivity
SUPPLY CHAIN TRANSFORMATION #2 MANUFACTURING PRODUCTIVITY LOAD & OPTIMISE WORK COST MOVE TO UNDERUTILISED SIMPLIFICATION STREAMS INTERVENTION LOWEST COST ASSETS Cycle time reduction Surfactants Americas Automation EXAMPLE Select Materials Operation Organoclay Supply Product portfolio rationalisation
Slide 44: Supply Chain Transformation #3 Pursue Procurement Savings
SUPPLY CHAIN TRANSFORMATION #3 PURSUE PROCUREMENT SAVINGS SPEND BY CATEGORY STRATEGIES FOR COST REDUCTION 100% Utilities Misc. Fees 90% Transportation Optimise warehouse and logistics network 80% Maintenance 70% Strategic consolidation of suppliers 60% 50% 40% Raws Develop raw material supply compet
Slide 45: How Will We Reignite Growth?
HOW WILL WE REIGNITE GROWTH? PURSUE SUPPLY CHAIN TRANSFORMATION PURSUE INNOVATE FOR CREATE A BEST GROWTH 1 Address disadvantaged DISTINCTIVENESS CULTURE OF HIGH assets OPPORTUNITIES & HIGH MARGINS PERFORMANCE 2 Manufacturing productivity 3 Pursue procurement savings How will we Reignite Growth? Intr
Slide 46: Innovate for Distinctiveness and High Margins
INNOVATE FOR DISTINCTIVENESS AND HIGH MARGINS Ken Smith VP Global R&D How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today Innovate for for Investors? 46 Distinctiveness
Slide 47: Innovation Leadership – Global R&D Footprint
INNOVATION LEADERSHIP – FOR DISTINCTIVENESS AND HIGH MARGINS OUR GLOBAL R&D FOOTPRINT DISTINCTIVE CAPABILITIES Rheology – science EAST WINDSOR, NJ, US of flow and suspensions Polymer Architecture Surface active chemistry COLOGNE, Germany Customer Application Centre Polymer architecture HSINCHU, Taiw
Slide 48: Sustain Innovation Leadership
SUSTAIN INNOVATION LEADERSHIP INNOVATION TRACK RECORD NEW PRODUCTS AS % OF SALES IMPLEMENTED INNOVATIVE SOLUTIONS 12% Enhanced cost efficient non-ionic rheology products 10% Unmatched application & appearance properties for new ionic rheology technology 8% Improved robustness in surface active produ
Slide 49: Organic Thixotropes – Pursuing a $20M Opportunity
ORGANIC THIXOTROPES – PURSUING A $20M OPPORTUNITY SAG CONTROL – THICK FILM APPLICATION MARINE AND PROTECTIVE THIXATROL® THIXATROL ® COMPETITOR A COMPETITOR B Improved rheology control MAX AS-8053 - Thicker films, fewer coats, lower VOC New Products Delivered - Greater sag resistance - Better efficie
Slide 50: Deliver New Product Pipeline
INNOVATE FOR DISTINCTIVENESS AND HIGH MARGINS – DELIVER NEW PRODUCT PIPELINE Eliminate use CUSTOMER Deliver hide with High speed coating New sustainability of UV lamp to reduced number with waterborne initiative at leading PROBLEM: deliver durable of coats systems cosmetic company nail polish finish
Slide 51: How Will We Reignite Growth?
HOW WILL WE REIGNITE GROWTH? INNOVATE FOR DISTINCTIVENESS PURSUE PURSUE & HIGH MARGINS CREATE A BEST GROWTH SUPPLY CHAIN CULTURE OF HIGH 1 Sustain innovation OPPORTUNITIES TRANSFORMATION leadership PERFORMANCE 2 Deliver new product pipeline How will we Reignite Growth? Introduction Elementis What Do
Slide 52: Create a Culture of High Performance
CREATE A CULTURE OF HIGH PERFORMANCE Paul Waterman Chief Executive Officer How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today High Performance for Investors? 52 Culture
Slide 53: Create a Culture of High Performance
CREATE A CULTURE OF HIGH PERFORMANCE SYSTEMATIC STRUCTURE PROCESS PERFORMANCE MANAGEMENT Flatter team / Capital allocation Standard management new appointments information Global Prioritise marketing, Cash focus functions R&D resources Clear HR - talent Individual ownership accountabilities & succes
Slide 54: How Will We Reignite Growth?
HOW WILL WE REIGNITE GROWTH? CREATE A CULTURE OF HIGH PURSUE PURSUE INNOVATE FOR PERFORMANCE BEST GROWTH SUPPLY CHAIN DISTINCTIVENESS 1 Structure OPPORTUNITIES TRANSFORMATION & HIGH MARGINS 2 Process 3 Systematic performance management How will we Reignite Growth? Introduction Elementis What Does it
Slide 55: What Does It Mean for Investors?
WHAT DOES IT MEAN FOR INVESTORS? Ralph Hewins Chief Financial Officer How will we Reignite Growth? What Does it Mean Introduction Elementis Closing Q&A Today Pursue Growth Supply Chain Innovate for High Performance for Investors? 55 Opportunities Transformation Distinctiveness Culture
Slide 56: Financial Focus – Grow Earnings
FINANCIAL FOCUS – GROW EARNINGS OPERATING PROFIT EPS FINANCIAL PRINCIPAL FOCUS MEASURES ($m) (cents) 160 30 Operating Profit 140 1 25 EPS 120 20 100 80 15 60 10 40 5 20 0 0 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 LTM LTM Constant currency | 2016 LTM = 2H15 + 1H16 Report
Slide 57: Financial Focus – Grow Earnings
FINANCIAL FOCUS – GROW EARNINGS FINANCIAL PRINCIPAL PURSUE BEST PURSUE SUPPLY CHAIN FOCUS MEASURES GROWTH OPPORTUNITIES TRANSFORMATION 1 Global KAM 1 Address Disadvantaged Assets Operating Profit 1 2 Coatings Asia 2 Manufacturing Productivity EPS 3 Personal Care global growth 3 Pursue Procurement Sa
Slide 58: Financial Focus – Potential to Improve Returns
FINANCIAL FOCUS – POTENTIAL TO IMPROVE RETURNS FINANCIAL PRINCIPAL 25% FOCUS MEASURES ROCE 20% Operating Profit 1 EPS OPERATING MARGIN 15% Operating Margin 2 ROCE 10% 5% 0% 2010 2011 2012 2013 2014 2015 2016 LTM ROCE – Pre tax | 2016 LTM = 2H15 + 1H16 Source: Elementis How will we Reignite Growth? W
Slide 59: Financial Focus – Improve Returns
FINANCIAL FOCUS – IMPROVE RETURNS FINANCIAL PRINCIPAL PURSUE BEST PURSUE SUPPLY CHAIN FOCUS MEASURES GROWTH OPPORTUNITIES TRANSFORMATION 1 Global KAM 1 Address Disadvantaged Assets Operating Profit 1 2 Coatings Asia 2 Manufacturing Productivity EPS 3 Personal Care global growth 3 Pursue Procurement
Slide 60: Financial Focus – Deliver Cash
FINANCIAL FOCUS – DELIVER CASH FINANCIAL PRINCIPAL FOCUS MEASURES 120% 40% 35% Operating Profit 100% 1 EPS 30% 80% 25% = Elementis Operating Margin 2 60% 20% ROCE 15% 40% Operating 10% 3 Cash Flow 20% 5% 0% 0% 2011 2012 2013 2014 2015 2016 LTM Net Cash from Operating and Investing Activities Net Wor
Slide 61: Financial Focus – Deliver Cash
FINANCIAL FOCUS – DELIVER CASH FINANCIAL PRINCIPAL PURSUE BEST PURSUE SUPPLY CHAIN FOCUS MEASURES GROWTH OPPORTUNITIES TRANSFORMATION 1 Global KAM 1 Address Disadvantaged Assets Operating Profit 1 2 Coatings Asia 2 Manufacturing Productivity EPS 3 Personal Care global growth 3 Pursue Procurement Sav
Slide 62: Financial Focus – Maintain Strong Financial Position
FINANCIAL FOCUS – MAINTAIN STRONG FINANCIAL POSITION DIVIDEND FINANCIAL PRINCIPAL Cents per ordinary share FOCUS MEASURES 18 16 Operating Profit 1 EPS 14 Special 12 Special Operating Margin Special 2 10 Special ROCE 8 Operating 6 3 Cash Flow Ordinary Ordinary 4 Ordinary Ordinary 2 Balance Sheet 4 0
Slide 63: Financial Focus – Maintain Strong Financial Position
FINANCIAL FOCUS – MAINTAIN STRONG FINANCIAL POSITION % use of operating cash flow after interest, tax and adjusting items FINANCIAL PRINCIPAL FOCUS MEASURES 100% Special dividend Operating Profit 80% 1 EPS Ordinary dividend Available for dividends / M&A 60% Operating Margin Acquisitions 2 ROCE 40% C
Slide 64: Closing
CLOSING Paul Waterman Chief Executive Officer How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today Pursue Growth Supply Chain Innovate for High Performance for Investors? 64 Opportunities Transformation Distinctiveness Culture
Slide 65: Reigniting Growth – Strategic Priorities
REIGNITING GROWTH – STRATEGIC PRIORITIES FOCUS ON FEWER, BIGGER, MATERIAL OPPORTUNITIES ELEMENTIS IN THE FUTURE ELEMENTIS TODAY How will we Reignite Growth? Introduction Elementis What Does it Mean Closing Q&A Today Pursue Growth Supply Chain Innovate for High Performance for Investors? 65 Opportuni
Slide 66: Contact Information
CONTACT INFORMATION Paul Waterman Ralph Hewins Chief Executive Officer Chief Financial Officer Paul.Waterman@elementis.com Ralph.Hewins@elementis.com 020 7067 2999 020 7067 2999 66