Arkema Sa · EURONEXT:AKE
Arkema Sa — Q1 2010 Earnings Presentation
12 slides from Arkema Sa's earnings presentation, May 11, 2010
Slide 1: 1st quarter 2010 results
1st quarter 2010 results Paris, May 11, 2010
Slide 2: Strong recovery of volumes and profitability
Strong recovery of volumes and profitability 1Q’10 achievements +20% volumes* versus 1Q’09 • Excellent growth in Asia EBITDA (€m) • Signs of recovery in North America +137 €137m EBITDA x2.4 versus 1Q’09 and above 4Q’09 57 10.5% EBITDA margin versus 5.2% in 1Q’09 • Strong performance of Industrial Ch
Slide 3: 1Q'10 highlights
1Q’10 highlights Successful integration at the end of January of the acrylic assets acquired from The Dow Chemical Company • Emulsion Systems Business Unit created • Comprehensive product offering for the Coating market (Emulsion Systems – Coatex - Kynar®) • Positive net income already in 1Q’10* Gra
Slide 4: 1Q'10 key figures
1Q’10 key figures in €m (except EPS) 1Q’09 1Q’10 Variation Sales 1,092 1,308 +19.8% EBITDA 57 137 x2.4 EBITDA margin 5.2% 10.5% EBITDA (€m) Recurring operating income (12) 67 - 159 134 137 Net income (group share) (35) 40 - 112 57 Adjusted EPS (diluted) (0.50) 0.68 - 1Q’06 1Q’07 1Q’08 1Q’09 1Q’10 4
Slide 5: +20% sales versus 1Q'09
+20% sales versus 1Q’09 Sales in €m FX rate - Scope of translation business Volume Price effect +19.6% (4.0)% (1.7)% +5.9% Mainly impact Mainly acrylic of caustic assets • Demand recovery in soda prices purchased divided by 2 from The Dow several end-markets 1,308 Chemical • Strong demand 1,092 Comp
Slide 6: Significant EBITDA growth
Significant EBITDA growth x2.4 versus 1Q’09 Strong recovery in volumes • Good demand in several end-markets notably automotive and electronics • Sharp increase in demand for high performance polymers especially in Asia • Volumes still lower than before the crisis (construction in Europe still weak)
Slide 7: Cash Flow and net debt
Cash Flow and net debt Working capital / sales * (%) +€22m cash flow from operating activities 23.0% • On higher EBITDA • And despite -€68m working capital outflow on stronger 16.2% 15.6% activity and usual seasonality Continued focus on working capital optimization in line with FY target of working
Slide 8: Vinyl Products: some improvements in overall adverse market conditions
Vinyl Products : some improvements in overall adverse market conditions Sales (€m) EBITDA (€m) and EBITDA margin (%) 7.5% 4.3% 374 389 257 271 28 17 2 1Q’10 1Q’07 1Q’08 1Q’09 1Q’10 1Q’07 1Q’08 1Q’09 (8) Traditional seasonality of the first quarter Adverse weather conditions at the beginning of the y
Slide 9: Industrial Chemicals: continue to grow stronger
Industrial Chemicals: continue to grow stronger Sales (€m) EBITDA (€m) and EBITDA margin (%) 13.9% 14.3% 14.5% 10.2% 650 675 661 94 96 509 66 73 1Q’09 1Q’10 1Q’07 1Q’08 1Q’09 1Q’10 1Q’07 1Q’08 14.5% EBITDA margin and +32% EBITDA versus 1Q’09 +17.5% volumes vs 1Q’09 Good momentum in Asia and benefits
Slide 10: Performance Products: back to pre-crisis EBITDA level
Performance Products : back to pre-crisis EBITDA level Sales (€m) EBITDA (€m) and EBITDA margin (%) 13.6% 14.5% 11.7% 5.3% 463 427 372 323 58 54 54 17 1Q’07 1Q’08 1Q’09 1Q’10 1Q’07 1Q’08 1Q’09 1Q’10 Record EBITDA margin since spin off at 14.5% despite volumes still below pre-crisis level, and EBITDA
Slide 11: 2010 outlook
2010 outlook 2Q’10 outlook • 1Q’10 market conditions expected to continue in 2Q’10 • Stronger seasonality in Coatings, Fluorochemicals and Specialty Chemicals • Tightness in acrylic monomers expected to continue in 2Q’10 • 2Q’10 EBITDA will be above 1Q’10 level 2010 outlook • Confidence in Arkema’s
Slide 12: 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