Arkema Sa · EURONEXT:AKE
Arkema Sa — Goldman Sachs European Chemicals Vision 2020 Conference
23 slides from Arkema Sa's conference presentation, Jun 18, 2012
Slide 1: Arkema Presentation
Arkema Presentation Thierry Lemonnier CFO Goldman Sachs European Chemicals Vision 2020 Conference London, June 18th, 2012
Slide 2: Our ambition: a top world specialty chemical player
Our ambition a top world specialty chemical player Accelerating growth • Innovation in sustainability • Growth in emerging countries • Bolt-on acquisitions • Operational excellence Well established growth platform • Portfolio refocused on specialties • Well balanced geographical footprint • Strong i
Slide 3: Higher profitability and greater resilience
Higher profitability and greater resilience 17.5% 16.6% Continuing activities EBITDA* (€m) and EBITDA margin (%) 11.6% 1,034 10.1% 9.9% 809 8.7% Worldwide crisis 484 428 373 341 2006 2007 2008 2009 2010 2011 Net debt unchanged at ~ € 600 m * From 2006 to 2009, figures exclude results of the whole Vi
Slide 4: A year of major portfolio change
A year of major portfolio change FY’11 proforma sales (€m) Acquisitions Divestments ~€1bn ~€1bn Total Specialty Resins Project to divest Vinyls activities* 2010 • €848m sales • €1,090m sales sales • July 1st, 2011 • Closing expected mid-2012 Alcoxylates from Seppic • €53m sales • December 31st, 2011
Slide 5: Well balanced portfolio and geographical coverage
Well balanced portfolio and geographical coverage* 2011 sales by business line* 2011 sales by region* Coatings Performance 35% Asia and Row Europe Products 33% 26% 42% € 6.5 bn € 6.5 bn Industrial 32% Chemicals Industrial North America Specialties 32% * Proforma sales including full year contributio
Slide 6: High quality portfolio
High quality portfolio Six main product lines of specialty chemicals Market positions between no1 and no3 in the world Limited number of players on small to mid-size segments Proprietary technologies and know-how Attractive development opportunities in emerging countries Portfolio well positioned to
Slide 7: Global leadership positions
Global leadership positions Chevron Mitsubishi Arkema BASF Dow Evonik EMS Dupont Solvay Honeywell Philipps Chemicals Coatings #3 PMMA #2 Thio- chemicals #1 Fluoro- chemicals #2 PVDF #1/2 Specialty Polyamides #1 7 - ARKEMA / Results
Slide 8: Well positioned on mega-trends
Well positioned on mega-trends New energies / Water Lightweight Renewable Energy efficiency management materials Coatings PMMA Thiochemicals Fluorochemicals PVDF Specialty Polyamides 8 - ARKEMA / Results
Slide 9: A solution provider for key growth drivers
A solution provider for key growth drivers Growing trends Arkema solutions Emulsions and More environmentally friendly rheological additives for paints coatings Fluoropolymers for architectural coatings Kynar® PVDF Molecular Need for water purification membranes sieves for and access to drinking wat
Slide 10: A solution provider for key growth drivers
A solution provider for key growth drivers Growing trends Arkema solutions High Need for new energies: performance development of PV and materials for lithium-ion batteries solar panels and batteries High temperature Lightweight vehicles polyamides for under the hood engine parts Biosourced Bioplast
Slide 11: Strong underlying growth drivers
Strong underlying growth drivers End-markets Growth drivers Estimated growth • Paints and adhesives • Low VOC requirements Coatings • Super-absorbents • Growing and ageing population +3.5% /year • Water treatment • Access to drinkable water • Automotive • Lighter cars PMMA • Signs and displays • Inc
Slide 12: Strong underlying growth drivers
Strong underlying growth drivers End-markets Growth drivers Estimated growth • Refrigeration • New regulations in air-conditioning Fluorochemicals • Increasing standard of living +3.5% /year • Fluoropolymers • Unique polymers with outstanding growth • Industrial paints • Growth in Asia • Oil & gas •
Slide 13: Sustained innovation momentum
Sustained innovation momentum New sales from innovation New range of opaque polymers +€ 500 m (CelocorTM) for partial replacement of titanium dioxide Others in water-based coatings Water treatment High performance DMDS (Paladin®) soil fumigation agent: polymers development and distribution agreement
Slide 14: Acquisition of Hipro Polymers and Casda Biomaterials (China)
Acquisition of Hipro Polymers and Casda Biomaterials (China) Electronics Automotive Sebacic acid Polyamide 10 Oil & gas Castor oil Renewable resource Photovoltaic Anti corrosion Plasticizers additives Highlights Perfect fit with our strategy $ 230m sales (2011 proforma) Asia 750 employees, 2 plants
Slide 15: Arkema, a worldwide leader in specialty polyamides
Arkema, a worldwide leader in specialty polyamides Commodities Specialties Growing markets: +5% / year Price (€/kg) 15 100 kT 10 Flexible pipes Metal Electronic Photovoltaic PA10, PA11, PA12 for oil & gas panels replacement frames extraction in automotive 5 2,500 2,500 kT kT Unique range of PA 10, 1
Slide 16: Strong balance sheet maintained
Strong balance sheet maintained 31 Dec. 31 Dec. 27% gearing in €m 2010 2011 0.6x net debt / EBITDA Net debt 94 603 Provisions include: Shareholders’ equity 2,240 2,217 • € 261m pensions • € 72 m restructuring Net provisions* 702 686 • € 127m environment Non-current assets** 2,370 2,693 €347m unrecog
Slide 17: A well balanced maturity profile
A well balanced maturity profile Diversified financing sources Maturity of financial debt (€m) Revolving credit facility: €300m 700 Maturity: April 2020 Interest rate: 3.85% Securitization program: €240m 500 Revolving credit facility: €700m 300 240 230 Bond issue: €500m 2013 2014 2015 2016 2017 2018
Slide 18: Long-term targets (2016)
Long-term targets (2016) 5-year targets* (2016) at € 8 bn sales and € 1,250 m EBITDA Previous long-term target*: € 1,050 m EBITDA in 2015 Growth coming half from organic developments and half from bolt-on acquisitions Gearing maintained at around 40% 2016e sales by business line 2016e sales by regio
Slide 19: Conclusion
Conclusion Outstanding value creation over the past five years and profitability now at best-in-class levels High quality portfolio of specialty chemicals built over years 2Q’12 expected to be above 1Q’12 but below very high 2Q’11 Confident in achieving a very solid 2012 while remaining attentive to
Slide 20: Appendix
ARKeEMA The world is our inspiration
Slide 21: Sales breakdown
Sales breakdown Performance Products Specialty Functional Additives Chemicals Acrylics 6% 10% Coatings Technical polymers 16% (PA, PVDF) 17% 3% Coatex 2011 sales 5% €5.9bn 9% Coating H2 O 2 resins 3% 11% 11% Sartomer 9% Fluoro- chemicals PMMA Industrials Thiochemicals Industrial specialties Chemical
Slide 22: 2012 priorities
2012 priorities Benefits from acquisitions FY contribution of Specialty Resins Development of Seppic alcoxylates Integration of Hipro and Casda Biomaterials (China) Close project to divest Vinyls* Continue strong pace of development in Asia FY contribution of units started in 2011 (Kynar®, Coatex) S
Slide 23: 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
Arkema — Goldman Sachs European Chemicals Vision 2020 Conference on 6ix