Arkema Sa · EURONEXT:AKE
Arkema Sa — Exane BNP Paribas MidCap Forum 2011
16 slides from Arkema Sa's conference presentation, Nov 15, 2011
Slide 1: Arkema Exane BNP Paribas MidCap Forum 2011
Arkema Exane BNP Paribas MidCap Forum 2011 London, November 15th, 2011
Slide 2: Another strong set of results
Another strong set of results +19% sales vs 3Q’10 Sales (€m) Strong pricing +19% Contribution of Total specialty resins 1,559 1,849 +7% EBITDA at €263m 3Q’10 3Q’11 Record EBITDA in a 3rd quarter EBITDA (€m) €130m adjusted net income, 7% of sales +7% +€193m free cash flow(*) in 3Q’11 263 246 €653m ne
Slide 3: Q3'11 EBITDA reflects Arkema transformation
Q3’11 EBITDA reflects Arkema transformation EBITDA (€m) 263 246 127 134 101 101 87 Q3 2005 Q3 2006 Q3 2007 Q3 2008 Q3 2009 Q3 2010 Q3 2011 3
Slide 4: Key factors of 3Q'11 performance
Key factors of 3Q’11 performance Strong pricing offsetting higher raw material and energy costs After unusually high 3Q’10, return as expected to more traditional seasonality High level of results in Performance Products supported by Asia and new solutions for sustainable development Solid performan
Slide 5: 3Q'11 highlights
3Q’11 highlights Closing of Total specialty resins acquisition on July 1st Arkema now positioned as a leader in coating materials Buoyant newsflow in Changshu (China) Successful start up of Coatex unit (Specialty Acrylic Polymers) in August Announced 30% increase in HFC-125 fluorogas production capa
Slide 6: 3Q'11 key figures
3Q’11 key figures in €m (except EPS) 3Q’10 3Q’11 Variation Sales 1,559 1,849 +18.6% EBITDA 246 263 +6.9% EBITDA margin 15.8% 14.2% Recurring operating income 172 184 +7.0% Recurring operating margin 11.0% 10.0% Net income (group share) 130 109 -16.2% Adjusted EPS (diluted) 2.09 2.09 - 6
Slide 7: +19% sales versus 3Q'10
+19% sales versus 3Q’10 Sales (€m) Scope of FX rate - business translation effect Price +13.2% -3.2% Volumes +12.3% -3.7% 1,849 Mainly specialty 1,559 1.0 resins from Total Strong comparison Pricing power and base of 3Q’10 and higher value challenging PVC in product mix Europe 3Q’10 3Q’11 7
Slide 8: Industrial Chemicals: delivering a solid performance
Industrial Chemicals: delivering a solid performance in €m 3Q’10 3Q’11 Variation Sales 800 1,047 +30.9% EBITDA 159 172 +8.2% EBITDA margin 19.9% 16.4% Recurring operating income 122 131 +7.4% Positive price effect on higher raw material costs After untypical 2010 summer, return to more traditional s
Slide 9: Smooth integration of Total specialty resins
Smooth integration of Total specialty resins Integration on July 1st, 2011 +€218m net contribution on Group sales in 3Q’11 €535m cash outflow (including €31m cash acquired) Preliminary Purchase Price Allocation Goodwill: €136 m In 3Q’11, ~€(35)m non recurring items booked Including €(29)m inventory
Slide 10: Performance Products: excellent growth momentum
Performance Products: excellent growth momentum in €m 3Q’10 3Q’11 Variation Sales 470 519 +10.4% EBITDA 92 102 +10.9% EBITDA margin 19.6% 19.7% Recurring operating income 70 79 +12.9% 3Q EBITDA at record high Strong performance of all Technical Polymers Steady demand in Asia (31% of segment sales in
Slide 11: Planned acquisition of a complete range of Specialty Chemicals from SEPPIC
Planned acquisition of a complete range of Specialty Chemicals from SEPPIC Acquisition of a world class industrial site in Antwerp (Belgium) Excellent fit with Arkema’s strategy Complement existing range of Specialty Chemicals • Specialty surfactants of Specialty Chemicals BU – Ceca • Extended offer
Slide 12: Vinyl Products: break-even in challenging environment
Vinyl Products: break-even in challenging environment in €m 3Q’10 3Q’11 Variation Sales 284 278 -2.1% EBITDA 4 0 na Recurring operating income (10) (14) na Lower volumes in a challenging construction market in Europe Price increases vs 3Q’10 offsetting higher energy and raw material costs Higher cau
Slide 13: Significant cash generation
Significant cash generation Net debt at €653m Gearing at 25% after acquisition of in €m 3Q’11 Total specialty resins EBITDA 263 Working capital excluding Total resins: Working capital variation 66 -7% vs end of June 2011 Despite inventory build up related to Recurring capex (89) planned maintenance
Slide 14: Successful diversification of financing sources
Successful diversification of financing sources Diversified financing sources Maturity of financial debt (m€) Revolving Revolvingcredit creditfacility: facility:€300m €300m 700 Securitization Securitizationprogram: program:€240m €240m 500 300 Revolving 240 Revolvingcredit creditfacility: facility:€7
Slide 15: 2011 outlook
2011 outlook 4th quarter will reflect the traditional seasonal weakness of year-end (exception in 2010) In the current uncertain macro-economic environment, we anticipate a growing caution of customers on their year-end inventory level, particularly in PVC, architectural coatings and refrigeration.
Slide 16: 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