Arkema Sa · EURONEXT:AKE
Arkema Sa — Q1 2019 Earnings Presentation
13 slides from Arkema Sa's earnings presentation, May 7, 2019
Slide 1: First Quarter 2019 Results
FIRST QUARTER 2019 RESULTS 7 MAY 2019
Slide 2: 1Q'19 Financial Highlights
1Q’19 FINANCIAL HIGHLIGHTS +2.0% up YoY €2,215m sales +4.7% prices in High Performance Materials Close to 1Q’18 record performance (€383m) in a more challenging economic environment €370m EBITDA EBITDA up in specialties (71% of Group sales) despite softer volumes Lower performance of intermediates (
Slide 3: Main Announcements Since 1 January 2019
MAIN ANNOUNCEMENTS SINCE 1 JANUARY 2019 PEKK Sartomer Coating resins COMPOSITES PEKK Hexcel New unit +30% production capacity New powder coatings resin unit Joint R&D laboratory United States China India Opening in 1H’19 in France Started in 1Q’19 Started in April 2019 Inaugurated in February 2019 T
Slide 4: Robust 1Q'19 Performance in a Contrasted Environment
ROBUST 1Q’19 PERFORMANCE IN A CONTRASTED ENVIRONMENT EBITDA REBIT ADJ. NET INCOME NET DEBT In €m In €m In €m In €m 16.7% 11.2% €2.16 22% MARGIN MARGIN ADJ. EPS GEARING Incl. €159m of IFRS 16 first-time 383 370 195 application 277 165 1,130 247 1,006 1Q'18 1Q'19 1Q'18 1Q'19 1Q'18 1Q'19 31/12/18 31/03
Slide 5: 1Q'19 Key Figures
1Q’19 KEY FIGURES In €m (except EPS) 1Q’18 1Q’19 CHANGE Sales 2,172 2,215 +2.0% EBITDA 383 370 -3.4% EBITDA margin 17.6% 16.7% Recurring operating income (REBIT) 277 247 -10.8% REBIT margin 12.8% 11.2% Adjusted net income 195 165 -15.4% Net income – Group share 188 147 -21.8% Adjusted EPS (in euros)
Slide 6: 1Q'19 Sales Bridge
1Q’19 SALES BRIDGE SALES In €m Scope Volumes Price of business Currency (2.5)% +1.3% +0.4% +2.8% Good growth in Continued Integration of Stronger US dollar Coating Solutions actions in High acquisitions in against the euro Performance adhesives Lower demand in Materials (+4.7%) automotive, oil & gas
Slide 7: High Performance Materials (46% of Group Sales)
HIGH PERFORMANCE MATERIALS (46% OF GROUP SALES) 1Q’19 KEY FIGURES 1Q’19 SALES DEVELOPMENT 1Q’19 SALES BY BUSINESS LINE In €m 1Q’18 1Q’19 Change Volumes (6.7)% Sales 998 1,008 +1.0% 27% 22% Bostik Prices +4.7% EBITDA 176 162 (8.0)% Performance Additives Currency +2.2% EBITDA margin 17.6% 16.1% 51% Te
Slide 8: Industrial Specialties (29% of Group Sales)
INDUSTRIAL SPECIALTIES (29% OF GROUP SALES) 1Q’19 KEY FIGURES 1Q’19 SALES DEVELOPMENT 1Q’19 SALES BY BUSINESS LINE In €m 1Q’18 1Q’19 Change Volumes (3.4)% 12% PMMA Sales 661 642 (2.9)% Prices (2.4)% 32% Thiochemicals EBITDA 162 157 (3.1)% 26% Currency +3.0% Fluorogases EBITDA margin 24.5% 24.5% 30%
Slide 9: Coating Solutions (25% of Group Sales)
COATING SOLUTIONS (25% OF GROUP SALES) 1Q’19 KEY FIGURES 1Q’19 SALES DEVELOPMENT 1Q’19 SALES BY BUSINESS LINE In €m 1Q’18 1Q’19 Change Volumes +6.9% Sales 507 558 +10.1% Prices (0.5)% Coating Resins 46% and Additives EBITDA 66 76 +15.2% 54% Currency +3.7% EBITDA margin 13.0% 13.6% Acrylics Rec. oper
Slide 10: Excellent Cash Generation
EXCELLENT CASH GENERATION RECONCILIATION OF EBITDA TO NET CASH FLOW 1Q’19 HIGHLIGHTS In €m 1Q’18 1Q’19 EBITDA 383 370 Tax rate: 21% of REBIT (excl. exceptional items) Current taxes (53) (46) ● Resulting from geographic mix of earnings ● 2019e tax rate: ~21% of REBIT Cost of debt (20) (24) Change in
Slide 11: 1Q'19 Net Debt Bridge
1Q’19 NET DEBT BRIDGE NET DEBT In €m Free cash flow M&A IFRS 16 FX and others 37 1,130 (73) 159 1,006 1 31/12/2018 31/03/2019 11 FIRST QUARTER 2019 RESULTS
Slide 12: 2019 Outlook
2019 OUTLOOK In the continuity of the beginning of the year, the macro-economic environment should remain volatile, marked by geopolitical uncertainties that are weighing on global demand Continued focus on internal momentum and implementation of our long term strategy Following a 2Q performance whi
Slide 13: 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