Arkema Sa · EURONEXT:AKE
Arkema Sa — Q3 2014 Earnings Presentation
12 slides from Arkema Sa's earnings presentation, Nov 14, 2014
Slide 1: 3rd quarter 2014 results
rd 3 quarter 2014 results November 14th, 2014
Slide 2: 3Q'14 highlights
3Q’14 highlights €1,478m sales Stable at constant scope of business and exchange rate +3.0% organic growth of volumes* €203m EBITDA Versus €233m in 3Q’13: ● Significant improvement in High Performance Materials versus 2Q’14 which was impacted by temporarily unfavourable factors ● Solid performance i
Slide 3: Highlights since July 1st, 2014
Highlights since July 1st, 2014 M&A • Proposed acquisition of Bostik1, #3 worldwide in the low cyclical and low capital intensive adhesive market, announced on September 19th • Announcement of the closing of the Jurong acquisition (China): 1st production line of 160,000 tonnes of acrylic acid Organi
Slide 4: 3Q'14 key figures
3Q’14 key figures In €m (except EPS) 3Q’13 3Q’14 variation Sales 1,495 1,478 (1.1)% EBITDA 233 203 (12.9)% EBITDA margin 15.6% 13.7% Recurring operating income 154 116 (24.7)% Adjusted net income 101 63 (37.6)% Net income (Group share) 65 20 (69.2)% Adjusted EPS 1.61 0.99 (38.5)% 4
Slide 5: Sales bridge
Sales bridge Sales (€m) Scope of Volumes Price FX rate – business translation effect 1,495 +1.6% (1.7)% (1.1)% 1,478 0% ● Supported by ● Lower prices in ● Changes in Industrial Acrylics consolidation Specialties and scope* High Performance Materials ● Benefits from strong position in North America (
Slide 6: High Performance Materials
High Performance Materials In €m 3Q’13 3Q’14 variation Sales 451 457 +1.3% Volumes +2.5% EBITDA 85 75 (11.8)% Prices (1.0)% EBITDA margin 18.8% 16.4% FX (translation) (0.2)% Recurring operating income 59 48 (18.6)% Scope - % of segment 3Q’14 sales Technical Polymers Filtration & Adsorption Organic P
Slide 7: Industrial Specialties
Industrial Specialties In €m 3Q’13 3Q’14 variation Sales 461 476 +3.3% Volumes +4.5% EBITDA 74 76 +2.7% Prices (0.5)% EBITDA margin 16.1% 16.0% FX (translation) +0.2% Recurring operating income 45 41 (8.9)% Scope (0.9)% % of segment 3Q’14 sales Thiochemicals Fluorogases PMMA H2O2 30% 29% 23% 34% 13%
Slide 8: Coating Solutions
Coating Solutions In €m 3Q’13 3Q’14 variation Sales 574 540 (5.9)% Volumes (0.7)% EBITDA 79 62 (21.5)% Prices (3.2)% EBITDA margin 13.8% 11.5% FX (translation) +0.2% Recurring operating income 55 37 (32.7)% Scope (2.2)% % of segment 3Q’14 sales Acrylics (acid + esters) Coating Resins Coatex Sartomer
Slide 9: 3Q'14 cash flow
3Q’14 cash flow In €m 3Q’14 EBITDA 203 Working capital variation* 44 Reflects usual seasonality of working capital Taxes (38) Cost of debt (13) Recurring capex (84) Others (9) RECURRING CASH FLOW 103 Non-recurring items in operating (19) and investing cash flow Non recurring capex (23) Thiochemicals
Slide 10: Maintain a strong balance sheet
Maintain a strong balance sheet Issuance of €700 million perpetual hybrid bonds on October 23rd, 2014 ● First step of the financing of the proposed acquisition* of Bostik ● Coupon: 4.75% / year ● First call date: October 29th, 2020 ● Recognized as equity under IFRS rules Renewal of the syndicated re
Slide 11: Outlook
Outlook 4Q’14 assumptions ● Macro-economic environment expected to remain challenging with: • Contrasting trends by product line and region • Continuing volatility in foreign exchange rates and oil prices ● Expect usual seasonality towards year-end ● Market conditions in fluorogases and polyamide 12
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