Arkema Sa · EURONEXT:AKE
Arkema Sa — Investor Day (2015)
32 slides from Arkema Sa's investor day presentation, 2015
Slide 1: Industrial Specialties
INDUSTRIAL SPECIALTIES Marc SCHULLER Executive Vice-President Industrial Specialties and Coating Solutions
Slide 2: Industrial Specialties at a Glance
INDUSTRIAL SPECIALTIES AT A GLANCE 2014 KEY FIGURES* 2014 SALES BY BUSINESS UNIT* IN €M Sales 2,269 11% Thiochemicals 26% EBITDA 312 PMMA 24% EBITDA margin 13.8% Fluorochemicals PMMA sales include EBIT 169 Hydrogen Peroxide Sunclear** Capex 268 for 8% 31% KEY SUCCESS FACTORS 2014 SALES BY REGION* Le
Slide 3: Leading Positions in Four Main Platforms
LEADING POSITIONS IN FOUR MAIN PLATFORMS Worldwide BU / platform Main products Main end-markets position Animal nutrition THIOCHEMICALS Sulfur derivatives Petrochemicals #1 and refining Air-conditioning and refrigeration FLUOROCHEMICALS Fluorogases #3 Fluoropolymers MMA Automotive PMMA PMMA sheets S
Slide 4: Industrial Specialties Strategy
INDUSTRIAL SPECIALTIES STRATEGY DIFFERENTIATED STRATEGY BY BU Growth Strategy THIOCHEMICALS GDP ++ Accelerate growth Restore competitiveness in a changing environment FLUOROCHEMICALS GDP Next generation of gases PMMA GDP Take advantage of growth in specialty applications HYDROGEN PEROXIDE GDP Take a
Slide 5: Operational Excellence to Achieve Superior Performance
OPERATIONAL EXCELLENCE TO ACHIEVE SUPERIOR PERFORMANCE TECHNOLOGY LEADERSHIP MANUFACTURING EXCELLENCE Proprietary technologies in each platform Take safety and reliability to a best in class level with strong in-house expertise Reinforce competitiveness Continuous improvement of complex processes •
Slide 6: Asset Footprint Well Established in Asia
ASSET FOOTPRINT WELL ESTABLISHED IN ASIA THIOCHEMICALS Kerteh (Malaysia) +6 to 7% growth* per year driven by animal nutrition, refining and petrochemicals FLUOROCHEMICALS Changshu (China) +3 to 4% growth* per year driven by regulation (HCFCs to HFCs) PMMA Jinhae (South Korea) Growth driven by automo
Slide 7: Accelerate Development in Specialties
ACCELERATE DEVELOPMENT IN SPECIALTIES THIOCHEMICALS Customized solutions (service + product) Paladin® for soil fumigation FLUOROCHEMICALS Intermediates for agrochemicals Synthesis intermediates for pharmaceuticals Development in electronics PMMA High heat PMMA for automotive parts New generation of
Slide 8: Secure Access to Strategic Raw Materials
SECURE ACCESS TO STRATEGIC RAW MATERIALS Key raw BU material Location Drivers H2S supply secured for next 30 years Lacq, THIOCHEMICALS Sulfur (H2S) France Risk existing at the time of spin-off removed Canada Acquisition of stake in a mine FLUOROCHEMICALS Fluorspar Other project under review Conversi
Slide 9: Strong Partnerships
STRONG PARTNERSHIPS THIOCHEMICALS THIOCHEMICALS FLUOROCHEMICALS HYDROGEN PEROXIDE 9 CAPITAL MARKETS DAY 2015
Slide 10: Well Positioned to Support Group's Long-Term Ambition
WELL POSITIONED TO SUPPORT GROUP’S LONG-TERM AMBITION Partnerships, Technology leadership + Innovation + Global footprint + customer intimacy Industrial Specialties EBITDA margin potential 17 – 19% Arkema’s long-term ambition 10 CAPITAL MARKETS DAY 2015
Slide 11: Fluorogases
FLUOROGASES
Slide 12: A Strong Leader Built Over the Past 10 Years
A STRONG LEADER BUILT OVER THE PAST 10 YEARS 2005 2005 – 2012 2013 - 2014 From 2015 Several issues Business potential unlocked with Unexpected EBITDA margin > 20% in 2010-2012 magnitude of adverse market Lack of clear Competitive asset base built in Asia conditions strategy Market positions in North
Slide 13: Arkema's Fluorogases at a Glance
ARKEMA’S FLUOROGASES AT A GLANCE 2014 SALES #3 WORLDWIDE** 300 250 200 €7.5 bn 2014 150 Fluorochemicals: proforma €540 m sales 100 Group ~7% of Group sales 50 sales* 0 Dongyue Chemours Arkema Juhua Honeywell Europe USA Asia & RoW KEY SUCCESS FACTORS GLOBAL PRESENCE Integrated chain from gases to flu
Slide 14: A Market Split Between Emissive and Non Emissive Applications
A MARKET SPLIT BETWEEN EMISSIVE AND NON EMISSIVE APPLICATIONS EMISSIVE APPLICATIONS NON EMISSIVE APPLICATIONS SUBJECT TO REGULATIONS GROWTH: +5 TO +6% PER YEAR GROWTH: +2 TO 3% PER YEAR Specialties Agrochemicals, electronics,… F22 142b Air-conditioning Fluoropolymers Mobile / Stationary 32 Refrigera
Slide 15: A Global Framework with Different Regulatory Stages by Region
A GLOBAL FRAMEWORK WITH DIFFERENT REGULATORY STAGES BY REGION Emissive applications A GLOBAL REGULATORY FRAMEWORK… Montreal Protocol Ozone depleting substances Impact on HCFCs (142b, 22) Kyoto Protocol Global warming potential substances Impact on HFCs (134a, 32, 125, 143a, HFC blends) … LEADING TO
Slide 16: A Global Long-Term Transition at a Different Phase in Each Region
A GLOBAL LONG-TERM TRANSITION AT A DIFFERENT PHASE IN EACH MAIN REGION…. Emissive applications NORTH AMERICA EUROPE ASIA ~25% of global demand ~10% of global demand ~45% of global demand Phase-down to be completed Phase-down completed Start-up of phase-out HCFCs in 2020 through “cap and over next 25
Slide 17: Different Strategic Priorities by Region
… IMPLYING DIFFERENT STRATEGIC PRIORITIES BY REGION Emissive applications NORTH AMERICA EUROPE ASIA Successfully manage the end Prepare for transition to next Capture growth opportunities of phase-out process of F22 generation of products Get prepared for future Address competitiveness Monitor regul
Slide 18: Our Ambition for Fluorogases
OUR AMBITION FOR FLUOROGASES COMMITTED TO REMAIN A STRONG AND PROFITABLE GLOBAL LEADER IN FLUOROGASES WITH A COMPREHENSIVE RANGE OF PRODUCTS Mid-term priority Long-term priority (3 to 4 years) Restore profitability Be a leading and integrated player to historical levels in the next generations + €10
Slide 19: +€50M EBITDA from Internal Measures
+€50 M EBITDA FROM INTERNAL MEASURES DEVELOP UPSTREAM INTEGRATION IN FLUORSPAR TARGET Price of Fluorspar €50 M FOB Durban +120% Positive progresses in the definition of the project 2005 actual ADDRESS COMPETITIVENESS ISSUES IN EUROPE Shutdown of Zaramillo (Spain) effective 2Q’15: expected EBITDA gai
Slide 20: +€50M EBITDA from Better Pricing Environment
+€50 M EBITDA FROM BETTER PRICING ENVIRONMENT 3 MAIN DRIVERS F22 USA: new quotas implemented since 1 January 2015 HFC Europe: F-gas regulation quotas on HFC products implemented since 1 January 2015 134a USA: final resolution on antidumping rights rejected end of 2014 Appeal made by Mexichem and DuP
Slide 21: Develop Next Generation of Fluorogases
DEVELOP NEXT GENERATION OF FLUOROGASES HFO 1234yf for automotive air-conditioning HFO 1234yf defined as the new global standard by the automotive industry In Europe, mandatory use as from 1 January 2017 of products with GWP < 150 for every new car sold in Europe (MAC directive) In the US, 1234yf wil
Slide 22: Wrap Up
WRAP UP Innovation Global footprint Integration + (Product + process) + and regulations +€100 m EBITDA versus 2014 Arkema’s long-term ambition 22 CAPITAL MARKETS DAY 2015
Slide 23: Thiochemicals
THIOCHEMICALS
Slide 24: Reinforcing Leading Position Over the Past 10 Years
REINFORCING LEADING POSITION OVER THE PAST 10 YEARS 2005 2005 – 2014 From 2015 Unrealized LEADING POSITION IN H2S REINFORCED good potential Successful ramp-up of Beaumont unit started in 2005 Profitability not Operations in Europe and North America streamlined reflecting full potential Highly compet
Slide 25: Arkema's Thiochemicals at a Glance
ARKEMA’S THIOCHEMICALS AT A GLANCE 2014 SALES 2014 SALES BY REGION 32% 35% Europe €7.5 bn Thiochemicals: 2014 €600 m sales proforma North America ~8% of Group sales Group sales* Asia and RoW 33% KEY SUCCESS FACTORS GLOBAL PRESENCE #1 worldwide in H2S derivatives • Niche market: 0.8 mt Beaumont • Mai
Slide 26: Strong Combination of High-Growth and Resilient Niches
STRONG COMBINATION OF HIGH-GROWTH AND RESILIENT NICHES ANIMAL NUTRITION PETROCHEMICALS, REFINING Major growth drivers High growth in animal nutrition supported by increasing standards of living in emerging ~25% ~20% countries, notably Asia Precursor Crackers: anticoking agent Critical solutions for
Slide 27: Thiochemicals Strategy
THIOCHEMICALS STRATEGY ACCELERATE GROWTH Successfully Support the Expand Further enhance execute growing demand our specialty technology on the ramp-up for sulfur derivatives product portfolio leadership and of our new platform and sales through permanently focus in Asia in line innovation on operat
Slide 28: Leverage Our New Asian Platform
LEVERAGE OUR NEW ASIAN PLATFORM Proven ability to manage complex projects Greenfield project In a new country for Arkema With a new partner On a new process Excellent quality of products beyond our expectations A major technical success Now focused on the successful ramp-up Good market conditions su
Slide 29: Increasing Our Value Proposition to Our Customers
INCREASING OUR VALUE PROPOSAL TO OUR CUSTOMERS CARELFLEX® FOR GASOLINE AND DIESEL DE-SULFURATION A comprehensive product offering for our customers With a global efficient technical support to best use our products 3 world-scale units in each region of the world Offering customized services Developi
Slide 30: Permanent Focus on Technology Leadership and Operational Excellence
PERMANENT FOCUS ON TECHNOLOGY LEADERSHIP AND OPERATIONAL EXCELLENCE TECHNOLOGY LEADERSHIP OPERATIONAL EXCELLENCE New processes Manufacturing excellence • MeSH for bio-methionine in Malaysia • Energy efficiency and yield optimization New Thiochemicals products • Streamlined organizations • Long term
Slide 31: Wrap Up
WRAP UP Technology Global Customer leadership + footprint + focus Together with Fluorochemicals, the largest contributor to the long-term growth of the segment Arkema’s long-term ambition 31 CAPITAL MARKETS DAY 2015
Slide 32: 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