Arkema Sa · EURONEXT:AKE
Arkema Sa — Merger or Acquisition (May 2019)
14 slides from Arkema Sa's merger presentation, May 16, 2019
Slide 1: Proposed Acquisition of ArrMaz
PROPOSED ACQUISITION OF ARRMAZ 16TH MAY 2019
Slide 2: Executive Summary
EXECUTIVE SUMMARY Proposed acquisition of US-based ArrMaz, a global leader in specialty surfactants for crop nutrition, mining and infrastructure with US$290m sales and 18% EBITDA margin Acquisition reinforces our Performance Additives business, one of the 3 strong pillars within the High Performanc
Slide 3: Another Milestone in Growing Our Specialty Businesses
ANOTHER MILESTONE IN GROWING OUR SPECIALTY BUSINESSES Specialties 70% HIGH PERFORMANCE MATERIALS 31% Adhesives Arkema 45% 2018 sales Technical Polymers Advanced Materials 24% Performance Additives High Performance Materials ARRMAZ Industrial Specialties Coating Solutions ARRMAZ, A NEW STEP TOWARDS A
Slide 4: ArrMaz at a Glance
ARRMAZ AT A GLANCE KEY STRENGTHS KEY FIGURES (LTM) Leading positions in specialty surfactants for crop nutrition, Sales US$ 290m mining and infrastructure Strong expertise in designing tailor-made formulations with EBITDA margin 18% 6 laboratories dedicated to product development REBIT margin 15% So
Slide 5: Transaction Overview
TRANSACTION OVERVIEW US$570m enterprise value Transaction highlights 10.8x EV/ LTM EBITDA ~7x EV/ 2023e EBITDA including synergies EPS and cash accretive from first year Financial impact US$15m synergies, fully achieved within 4 years 100 % cash Financing Post acquisition, Arkema’s net debt to pro f
Slide 6: Specialty Surfactants, an Attractive Market
SPECIALTY SURFACTANTS, AN ATTRACTIVE MARKET MAIN CHARACTERISTICS OF SPECIALTY SURFACTANTS MARKET SPECIALTY SURFACTANTS Wide range of applications ● Home care Customized solutions for an overall ● Personal care resilient market ● Oil & Gas €9 bn ARKEMA’S ● Mining ARRMAZ’S Service intensive approach t
Slide 7: ArrMaz Solutions for Attractive Niche Markets: Crop Nutrition
ARRMAZ SOLUTIONS FOR ATTRACTIVE NICHE MARKETS CROP NUTRITION ARRMAZ SOLUTIONS Process aids and functional additives used in fertilizer production, storage and transportation • Specific solutions for each customer’s location and product #1 • Critical solutions to improve efficiency and quality of fer
Slide 8: ArrMaz Solutions for Attractive Niche Markets: Natural Resources and Mining
ARRMAZ SOLUTIONS FOR ATTRACTIVE NICHE MARKETS NATURAL RESOURCES AND MINING ARRMAZ SOLUTIONS Mining flotation reagents and process aids for #1 industrial minerals and specialty metals global in phosphate • Customized product formulations for each mining operation #1 • Optimize grade, recovery and pro
Slide 9: ArrMaz Solutions for Attractive Niche Markets: Infrastructure
ARRMAZ SOLUTIONS FOR ATTRACTIVE NICHE MARKETS INFRASTRUCTURE ARRMAZ SOLUTIONS Additives for the construction and performance of road infrastructure • A technology leader for asphalt paving solutions #2 • Critical solutions to improve road longevity, quality and in North recyclability America • Contr
Slide 10: Building a New Leader in Specialty Surfactants
BUILDING A NEW LEADER IN SPECIALTY SURFACTANTS ARRMAZ ARKEMA’S SPECIALTY SURFACTANTS US$290m sales US$205m sales Leadership positions in crop nutrition, mining and infrastructure + Strong chemistry expertise in specialty surfactants Extensive formulation know-how (adhesives, specialty Strong experti
Slide 11: Strong Geographical Combination
STRONG GEOGRAPHICAL COMBINATION SALES BY REGION PRODUCTION FOOTPRINT ArrMaz: 9 production sites ● Historical site in Mulberry, Florida (US) Europe China ● State-of-the-art facilities in Morocco, North Saudi Arabia, Brazil and China America Middle East Africa Arkema: 6 production sites in Latin Ameri
Slide 12: Superior Value Creation
SUPERIOR VALUE CREATION EBITDA KEY DRIVERS TO DELIVER SUPERIOR VALUE In US$m Above GDP growth driven by: +10% CAGR ● Sustainable trends and fast-growing countries ~80 ● New developments (for nutrients, lithium and oil & gas process aids) Well-identified synergies estimated at US$15m by 2023 53 ● Cos
Slide 13: Growth in Specialties: An Ongoing Momentum
GROWTH IN SPECIALTIES: AN ONGOING MOMENTUM SHARE OF SPECIALTIES As a % of total sales > 80% PORTFOLIO RESHUFFLING TARGETED EXPANSION M&A 70% Innovation ● Acquisition in adhesives: ● Composites, 3D, lightweighting, Bostik, Den Braven, XL Brands water treatment, batteries… ● Acquisition in other speci
Slide 14: 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